Centamin PLC Announces Interim 2019 Results

PERTH, AUSTRALIA / ACCESSWIRE / July 31, 2019 / Financial highlights

Gross revenue1 for the six months ended 30 June 2019 (“H1”) was US$292.4 million from gold sales of 224,129 ounces at an average realised gold price of US$1,305 per ounce;
Cash cost of production was US$692 per ounce produced, within annual guidance of US$675-725 per ounce; All-in sustaining cost (“AISC”) was US$940 per ounce sold, within annual guidance of US$890-950 per ounce;
EBITDA2,3 of US$117.1 million, a 41% EBITDA margin, and profit before tax of US$59.6 million, offers competitive profit margins;
Adjusted Group free cash flow3,4 generated US$35.7 million, after profit share with our partner, the Egyptian state; Total direct financial payments in Egypt, by way of profit share and royalties, US$ 48.1 million;
Total Group sustaining, development and growth capital and exploration expenditure of US$58.4 million, in line with annual guidance;
Strong and flexible balance sheet with no debt, no hedging and cash and liquid assets3 of US$326.6 million, as at 30 June 2019, after payment in May of US$34.7 million for the 2018 final dividend; and
The Board declares an interim dividend of US$46.2 million (4.0 US cents per share), bringing cumulative dividends paid to shareholders to approximately US$500 million.

Outlook

Centamin maintains annual guidance for 2019: gold production of 490,000-520,000 ounces, at cash cost2,3 of US$675-725 per ounce produced and AISC2,3 of US$890-950 per ounce sold; Production and free cash flow3,4 expected to be stronger in the second half (“H2”) predominantly driven by improved grades from the open pit; Costs to trend downwards in line with the expected increased production in H2; and
Centamin baseline outlook for production in 2020 and 2021 of 510,000-540,000 ounces per annum, at cash cost of US$630-680 per ounce produced and AISC of US$870-920 per ounce sold; Baseline outlook excludes any upside from plant and open pit optimisation, underground grade improvement, Cleopatra stoping, and regional exploration; Full details of these baseline estimates and upside drivers can be found in the Operation Review.

Andrew Pardey, CEO commented: “Six months into our tenth year of commercial production, Centamin continues to make good progress delivering on its corporate strategy. The Company is a high margin gold producer, delivering reliable stakeholder returns through strong free cash flow generation.

In-line with the Company’s well-established strategy of returning surplus cash to shareholders, the Centamin Board of Directors are pleased to declare an interim dividend of US$46.2 million, bringing total returns to shareholders in dividends since 2014 to c.US$500 million. The Board’s decision to increase the interim dividend was based on the Company’s strong financial position, assessment of near and medium-term capital allocation and confidence in future cash flow generation.

Looking forward, as the outlook for the business continues to improve, in the second half of 2019 we expect to deliver stronger production and increasing free cash flow. Today, Centamin has provided baseline estimates for Sukari’s production and cost guidance through to 2021 on a mining plan that is designed to maximise returns to all of our stakeholders through the delivery of profitable ounces.

We are confident in the delivery of this baseline outlook and are focused on driving further future growth and value enhancing opportunities.”

Table 1. Group Financial Summary

Quarter on Quarter (“QoQ”) comparative

Year on Year (“YoY”) comparative

units

Q2 2019

Q2 2018

%

H1 2019

H1 2018

%

Gold produced

oz

117,913

92,803

27%

234,096

217,099

8%

Gold sold

oz

112,764

97,628

16%

224,129

228,672

(2%)

Cash cost of production 2,3

US$’000

87,553

64,630

35%

159,445

135,942

17%

Unit cash cost of production

US$/oz produced

752

714

5%

692

637

9%

AISC 2,3

US$’000

109,319

102,211

7%

207,361

209,150

(1%)

Unit AISC

US$/oz sold

982

1,073

(8%)

940

930

1%

Average realised gold price

US$/oz

1,307

1,298

1%

1,305

1,316

(1%)

Gross revenue1

US$’000

147,329

127,023

16%

292,406

301,099

(3%)

Revenue

US$’000

145,671

123,929

18%

288,136

296,391

(3%)

EBITDA 2,3

US$’000

52,651

45,774

15%

117,109

129,728

(10%)

Profit before tax

US$’000

25,725

21,977

17%

59,627

80,376

(26%)

Basic EPS 2

US cents

0.54

0.97

(44%)

1.71

3.57

(52%)

Capital expenditure

US$’000

22,759

28,798

(21%)

47,987

53,877

(11%)

Operating cash flow

US$’000

57,459

37,247

54%

116,376

122,662

(5%)

Adjusted free cash flow 3,4

US$’000

19,117

1,594

1,099%

35,708

36,075

(1%)

To view full announcement please follow link:

http://www.rns-pdf.londonstockexchange.com/rns/3269H_1-2019-7-31.pdf

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SOURCE: Centamin PLC

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