Centamin Plc – Final Results

Centamin plc

(“Centamin” or “the Company”)

(LSE:CEY, TSX:CEE)

HIGHER GOLD PRICE AND COST SAVINGS DRIVE 54% INCREASE IN EBITDA

full year results for the twelve months ended 31 December 2020

MARTIN HORGAN, CEO, COMMENTED “Centamin delivered another solid financial performance in 2020, driven primarily by improved commodity pricing, our comprehensive response to COVID-19 and an improvement in operating efficiencies and productivity. I would like to thank our workforce for how they responded to the operating environment in 2020, continuing to deliver results. Centamin generated record revenue of US$829 million, a 54% increase in EBITDA to US$439 million with an EBITDA margin of 53%. Ultimately, the Group generated significant free cash flow, of US$142 million, a 91% increase, making it possible to propose and pay dividends attributable to 2020 of US$104 million further demonstrating Centamin's commitment to delivering returns to our shareholders. We continue to maintain a strong and flexible balance sheet, finishing the year with US$310 million in cash and liquid assets at 31 December 2020.”

FINANCIAL HIGHLIGHTS

  • Record revenue generated of US$829 million from gold sales of 468,681 ounces at an average realised gold price of US$1,766 per ounce sold
  • EBITDA of US$439 million, at a 53% EBITDA margin
  • Profit before tax of US$315 million
  • Basic earnings per share (“EPS”) of 13.5 US cents per share
  • Group free cash flow of US$142 million, after a record of US$199 million was distributed in profit share and royalties to our partner, the Egyptian state
  • US$44 million of gross costs removed, as part of the ongoing US$100 million cost-saving target by 2024
  • Strong balance sheet with no debt or hedging, and cash and liquid assets of US$310 million, as at 31 December 2020
  • The Board has proposed a final dividend of 3 US cents per share, equating to US$34.7 million to be distributed to shareholders, subject to shareholder approval at the annual general meeting on 11 May 2021

OUTLOOK UNCHANGED

  • 2021 gold production of 400,000 to 430,000 oz, at cash costs of US$800-900/oz produced and AISC of US$1,150- 1,250/oz sold
  • The Board reiterates its intention to recommend a minimum 2021 dividend of US$105 million (interim and final)

GROUP FINANCIAL SUMMARY

 

Units

FY20

FY19

%

H2 20

H1 20

Gold produced

Oz

452,320

480,528

-6%

196,236

256,084

Gold sold

Oz

468,681

470,020

0%

198,152

270,529

Cash cost

US$'000

325,188

333,037

-2%

160,902

164,286

Unit cash cost

US$/oz produced

719

699

3%

820

642

AISC

US$'000

485,478

439,317

11%

242,255

243,225

Unit AISC

US$/oz sold

1,036

943

10%

1,223

899

Avg realised gold price

US$/oz

1,766

1,399

26%

1,918

1,657

Revenue

US$'000

828,737

652,344

27%

379,983

448,754

EBITDA

US$'000

438,515

283,968

54%

182,784

255,731

Profit before tax

US$'000

314,999

173,029

82%

123,851

191,148

Profit after tax attrib to the parent

US$'000

155,979

87,463

78%

81,163

74,816

Basic EPS

US cents

13.53

7.59

78%

7.04

6.49

Capital expenditure

US$'000

138,396

97,580

42%

86,665

51,731

Operating cash flow

US$'000

453,305

249,004

82%

198,630

254,675

Adjusted free cash flow

US$'000

141,768

74,341

91%

39,813

101,955

               

 

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