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 |
|