Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Centamin PLC (LON: CEY) shares rose on Tuesday after the company released the results of its pre-feasibility study (PFS) of its Doropo Gold Project located in northeastern Côte d’Ivoire.
The PFS revealed a Maiden Mineral Reserve Estimate of 1.87 million ounces of gold.
The PFS estimates that capital expenditure of $349 million will be needed to build the mine, which is expected to produce about 210,000 oz/y of gold over the first five years of operation and an average gold production of 173,000 oz/y over a ten-year mine life.
“We have identified opportunities to further optimize the project which will be assessed as part of the DFS which is scheduled for completion in mid-2024,” Centamin CEO Martin Horgan said in a news release.
“A substantial part of the DFS fieldwork has already been completed in 2023 which derisks the timeline to completion and further confirms our faith in the potential of Doropo to support a commercially viable project which will bring significant investment and job creation to northeastern Côte d’Ivoire,” Horgan said.
Shares of Centamin surged 4.3% Tuesday morning. The company has a market capitalization of $1.35 billion.
Doropo will be Centamin’s second operating asset. It currently operates its flagship Sukari gold mine in Egypt.
