Centamin estimates Doporo Capex at $349M Following Prefeasibility Finding

CENTAMIN said today its Côte d’Ivoire gold project Doporo would cost about $349m to build and produce an average of 173,000 ounces a year over its 10-year life at an average all-in sustaining cost (AISC) of $1,017 per ounce.

These were the findings of a prefeasibility study which assumed a base case average gold price of $1,600/oz. Centamin would now move to a definitive feasibility study which ought to be completed during the first half of next year ahead of a mining licence application.

Martin Horgan, CEO of Centamin described the study findings as “an excellent outcome” and added that his company had identified “opportunities to further optimise the project which will be assessed as part of the DFS”.

The capital cost is much higher than the $275m assumption in a preliminary economic assessment published by the company in March 2022. In that assessment, a 13-year life of mine was envisaged producing 150,959 oz a year.

Once built, however, Doporo would be an important addition to Centamin which currently produces gold from one asset, the Sukari gold mine in Egypt. Horgan has been tasked with restoring Sukari’s average gold production to 500,000 oz/year.

Gold production for this year is forecast to be between 450,000 to 480,000, about 9% higher than in Centamin’s 2022 financial year.

Where Doporo is especially important, however, is in lowering Centamin’s AISC. Sukari is forecast to produce its gold at between $1,250 and $1,400/oz this year.

Shares in the company ticked up 1.5% in London by midday. The stock is 13% higher on a 12 month basis and is currently valued at just over £1bn.

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