Centamin Plc (LON:CEY, TSX:CEE) have today published audited results for the twelve months ended 31 December 2022.
MARTIN HORGAN, CENTAMIN CEO, COMMENTED: “Centamin made great progress in 2022, a year in which we celebrated the Sukari Gold Mine producing its 5 millionth ounce underpinning the quality of the orebody which has 6 million ounces in Mineral Reserves remaining and identified further upside potential. We spent the past year successfully progressing our reinvestment plan and remain on track to consistently return Sukari to production levels towards 500,000 ounces per annum from 2024.
“In 2022, the Company delivered guidance for both production and costs, despite global inflationary headwinds, and invested US$224 million in capital projects at Sukari such as our flagship 36MW Solar farm which is reducing both emissions and costs. We look forward to updating our stakeholders on our decarbonisation roadmap to 2030, later this quarter.
“In terms of growth, Sukari achieved its second successive year of reserve growth and across the wider portfolio, we commenced exploration work across our EDX portfolio in Egypt and progressed our Doporo PFS which is expected to be completed in the first half of 2023. The Company secured its inaugural sustainability linked debt facility with a group of leading international resource banks, adding financial flexibility to an already robust balance sheet and enable us to deliver our identified growth opportunities.”
· Revenue of US$788 million generated from sales of 438,638 oz at an average realised gold price of US$1,794/oz
· Adjusted EBITDA of US$319 million, at a 40% margin
· Profit before tax of US$171 million
· Basic earnings per share (“EPS”) of 6.29 US cents per share
· US$43 million of gross cost-savings in 2022, for a cumulative US$116 million delivered of the US$150 million cost-saving target by 2023
· Capital structure review completed, establishing a capital allocation framework that balances growth and stakeholder returns
· Strong balance sheet with cash and liquid assets of US$157 million, as at 31 December 2022, excluding the US$150 million sustainability-linked revolving credit facility which was announced on 22 December 2022, and
· The Board has proposed a final dividend of 2.5 US cents per share, equating to US$29 million to be distributed to shareholders, subject to shareholder approval at the annual general meeting on 23 May 2023, bringing total distribution to shareholders for full year 2022 to US$58 million.
· Sukari gold production of 440,974 oz, a 6% increase on 2021 and in line with guidance
· Second consecutive year of meaningful growth of both resources and reserves
· Successfully navigated the transition from contractor to owner-operated at Sukari underground
· Commissioned 36MWDC solar plant, the largest global hybrid solar farm to power a gold mine
· Completed Egypt’s first airborne geophysical survey across the full Sukari concession area, and
· Progressed Doropo PFS to imminent completion.
· Record safety performance of eight million hours worked without a Lost Time Injury at Sukari; previous record of 5 million for LTI free hours worked, driving an 83% improvement in LTIFR from 2021 and a 13% improvement in TRIFR
· Increased our Egyptian female representation to 34 employees (from zero) at Sukari; the introduction of female professionals at our sites has been supported and accompanied by diverse and inclusive workforce training
· Expanded workforce training programme with a 62% increase in training hours following roll-out of professional development framework for employees; ongoing focus to promote national employment in leadership position through the Group, and
· Commitment to 30% reduction in scope 1 and 2 emissions by 2030 remains on track; largest global hybrid solar farm to power a gold mine was commissioned at Sukari in 2022, reducing annual consumption of diesel fuel for power generation by 22%. Decarbonisation roadmap to be launched in Q1 2023.
· Gold production guidance range of 450,000 to 480,000 oz per annum weighted towards H2 (45:55)
· Cash cost guidance range of US$840-990/oz produced and AISC guidance range of US$1,250-1,400/oz sold, similar to the 2022 levels despite global inflationary pressures including higher fuel prices
· Capex guidance is US$225 million, weighted towards H1 (55:45), as the Company continues to identify growth and optimisation projects at Sukari, including development of a gravity circuit; expansion of the dump leach capacity; and commencement of the underground expansion. This also reflects inflationary pressures on the contracted waste-stripping programme specifically from higher fuel prices
· Exploration spend is budgeted at US$30 million, including US$23 million for the pre-development study work on the Doropo Project.
2023 KEY MILESTONES
· June 2023: Doropo Project (Côte d’Ivoire) complete pre-feasibility study
· H2 2023: Sukari Gold Mine (Egypt) update Life of Mine Plan (NI 43-101), including underground expansion, and
· Announcements on the ongoing exploration programmes.
GROUP FINANCIAL SUMMARY
|Units||FY22||FY21*||%||H2 22||H1 22|
|Unit cash cost||US$/oz produced||913||866||5%||897||931|
|Unit AISC||US$/oz sold||1,399||1,234||13%||1,360||1,445|
|Avg realised gold price||US$/oz||1,794||1,797||0%||1,730||1,872|
|Profit before tax||US$’000||171,001||153,647||11%||86,254||84,747|
|Profit after tax attrib to the parent||US$’000||72,490||101,527||(29%)||10,129||62,361|
|Basic EPS||US cents||6.29||8.81||(29%)||0.88||5.41|
|Adjusted capital expenditure||US$’000||224,270||233,034||(4%)||113,571||110,699|
|Operating cash flow*||US$’000||291,936||309,074||(6%)||164,079||127,857|
|Adjusted free cash flow*||US$’000||(18,139)||(6,802)||167%||7,630||(25,769)|
*In the 2021 Consolidated Statement of Comprehensive Income, Finance costs were included and disclosed in the line ‘Other operating costs’, in these financial statements they are now separately disclosed in their own line and as such ‘Other operating costs’ for 2021 have changed.
Centamin is an established gold producer, with premium listings on the London Stock Exchange and Toronto Stock Exchange. Following a period of ‘reset’ including a significant refresh of the Board and management team, the Company is now entering a growth phase, balanced with stakeholder returns. The Company’s flagship asset is the Sukari Gold Mine (“Sukari”), Egypt’s largest and first modern gold mine, as well as one of the world’s largest producing mines. Since production began in 2009 Sukari has produced over 5 million ounces of gold, and today has 6.0Moz in gold Mineral Reserves. Through its large portfolio of exploration assets in Egypt and Côte d’Ivoire, Centamin is advancing an active pipeline of future growth prospects, including the Doropo project in Côte d’Ivoire, and has over 3,000km2 of highly prospective exploration ground in Egypt’s Nubian Shield.