Centennial Mining Ltd’s (ASX:CTL) March quarter gold deliveries were 4,732 ounces, towards the upper end of management's guidance of 4,500 to 4,800 ounces.
This was up 60% on the December quarter and is consistent with the guidance that gold production would be skewed 40/60 to the second half of the financial year.
Emerging producer with second mine in the pipeline
Centennial is an emerging junior gold producer that is developing and producing from the A1 Gold Mine near Woods Point, Victoria.
Ore mined from the A1 gold mine is trucked to the company’s fully permitted processing facility near Maldon.
The company also owns the Union Hill underground mine at Maldon, which is under development.
Centennial has entered into an agreement to acquire the Eureka and Tubal Cain deposits near Walhalla.
Benefiting from strong Australian dollar gold price
The average price of gold sold during the quarter was $1,696 per ounce, a small increase compared to the price received in the December quarter.
As a result of the increased production, quarter-on-quarter revenue was up 63% at just over $8 million.
Improvements in mill throughput and recoveries have continued.
Management expects production from the higher-grade Victory North area will commence during the June quarter.
Centennial’s shares have traded strongly over the last two months, nearly doubling to 1.5 cents, a level it hadn’t traded at since November 2017.