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Centamin provide interim report

Published by
Global Mining Review,


Centamin has provided its interim report for the 6 months ended 30 June 2021.

Martin Horgan, CEO, commented: “Centamin has delivered a strong performance against plans in 1H21, driven by our continued focus on cost control, operating efficiencies and productivity gains. We remain on track to meet full year cost and production guidance and our key capital projects continue to progress on schedule. The company is financially robust with US$312 million in cash and liquid assets, providing the flexibility to invest in the long-term future of our flagship asset, Sukari, and continue to develop our active growth pipeline in Egypt and Côte d’Ivoire.”

Financial highlights

  • Revenue for the 6 months ended 30 June 2021 (1H21) was US$367.4 million from gold sales of 203 802 oz at an average realised gold price of US$1799/oz.
  • Operations, supply chain and gold shipments have not been materially impacted by the COVID-19 pandemic. Related COVID-19 costs were US$6.5 million and within budget.
  • Cash cost of production was US$807/oz produced and all-in sustaining costs (AISC) were US$1186/oz sold.
  • EBITDA was US$190.4 million with a 52% EBITDA margin.
  • Profit before tax was US$116.8 million and net profit after tax attributable to shareholders was US$59.5 million, for a basic EPS of 5.16 US cents.
  • Capital expenditure was US$78.3 million as good progress was made on key capital projects such as the solar plant, second tailings storage facility, paste-fill plant, workforce accommodation and facility upgrades.
  • The Board has declared an interim dividend of US$00.40 per share (US$46.3 million), to be paid to shareholders on 30 September 2021.
  • Better than budgeted group free cash flow of US$16.2 million, after US$56.7 million was distributed in profit share and royalties to the company’s partner, the Arab Republic of Egypt.
  • Strong and flexible balance sheet with available cash and liquid assets of US$312.1 million, as at 30 June 2021 and after payment of the 2020 final dividend of US$34.5 million on 15 June 2021.

Outlook

On track to meet full year guidance.

  • 2021 gold production and cost guidance maintained: 400 000 – 430 000 oz at cash costs of US$800 – US$900/oz produced and AISC of US$1150 – US$1250/oz sold.
  • Unchanged 2021 CAPEX guidance of US$225 million and exploration expenditure of US$17 million.
  • Doropo (Côte d’Ivoire) pre-feasibility study (PFS) for is underway and scheduled for completion by 2H22.
  • Recently agreed exploration licence terms for a total 3164 km2 land package in Egypt's Arabian Nubian Shield subject to final legal formalities expected to be completed in 3Q21.
  • Process continues in assessing the strategic opportunities for non-core asset Batie West (Burkina Faso), including possible disposal.

Milestones

  • 23 September 2021: Geology Capital Markets Event: Centamin’s approach to unlocking value from the portfolio.
  • 30 September 2021: Payment of 2021 Interim Dividend (Ex-div date 2 September).
  • 19 October 2021: 3Q21 Report.
  • 4Q21: Sukari Life of Asset (Phase 2) optimisation results.

Read the article online at: https://www.globalminingreview.com/finance-business/05082021/centamin-provide-interim-report/

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