Sukari new life of mine plan delivers improved margins

Following the release of the plan, Martin Horgan, CEO of Sukari, commented: “Today’s new life of mine plan firmly re-establishes Sukari as a global tier one gold asset, with long-term production above 500 000 oz/y at all-in sustaining costs below US$1000/oz, underscoring our dedication to maximising free cash flow generation. This plan is not only a substantial improvement on what was previously published but, importantly, it incorporates significantly lower operational risk and delivers improved carbon abatement. This revised plan underpins our strategy to maximise the value of Sukari as the foundation for growth and diversification balanced with stakeholder returns.”

Highlights of the new plan:

Sukari Gold Mine - Tier 1 Asset

• The new life of mine plan (LOM plan) delivers long-term increased gold production, lower operational costs, reduced operational risk and significantlyreduced carbon emissions through a combination of:
  • An improved opencast schedule, including a 40% improvement to LOM strip ratio (6.5x) compared to full year 2022 (FY22) (10.8x).
  • An increased underground schedule, including a 75% increase in average LOM ore mining rates (1.4 million tpy) compared to FY22 (0.8 million t).
  • Connection to the Egyptian national grid, delivering an estimated US$41 million of annual cost savings based on current diesel prices.
  • Integration of a gold gravity circuit to the processing plant, driving a 2 % increase in LOM gold recoveries (89.8 %) compared to FY22 (88.2 %).
• Average gold production of 506 000 oz/y for next nine years (2024 – 2032); and 475 000 oz/y for LOM (2024 – 2034), reflecting a 5% increase in LOM gold production compared to FY22 (441 000 oz).
• Average LOM AISC of US$922/oz of gold sold, placing Sukari in the bottom half of the global cost curve and reflecting a 34 % reduction in AISC compared to FY22 (US$1399/oz).
• Average annual LOM greenhouse gas (GHG) intensity of 0.69 t CO2-e/oz, reflecting a 39% reduction compared to FY22 (1.14 t CO2-e/oz).
• Multiple opportunities identified to extend the current 11-year LOM (2024 – 2034) within the Sukari underground, surface satellite deposits and EDX Nugrus exploration licences adjacent to the mine to further increase resource and reserves.
• Additional upside opportunities not included in the new LOM plan have been identified to further reduce costs and carbon emissions, and to improve operational productivities and efficiencies.

2023 outlook

• In September, as part of the routine mill relines, a potential issue was identified on SAG mill 1 (SAG1) and the decision was taken to undertake pre-emptive repairs. The work was successfully completed and SAG1 has been fully operational since 1 October 2023.
• As a result, production for 3Q23 was 101 370 oz. Despite being lower than the internal forecast, the build-up of high-grade material on the ROM pad and increased operational flexibility in the mine plan means that 2023 annual production guidance remains on track.
• 2023 gold production guidance is maintained with a range of 450 000 – 480 000 oz, targeting the lower end of the range.
• 2023 cash cost guidance is maintained with a range of US$840 –US$990/oz produced and AISC guidance range of US$1250 – US$1400/oz sold, targeting the midpoint of the ranges.
• 2023 adjusted CAPEX guidance is maintained at US$225 million, which excludes US$48 million of sustaining deferred stripping costs.

Read the article online at: https://www.globalminingreview.com/finance-business/13102023/sukari-new-life-of-mine-plan-delivers-improved-margins/