TIDMCEY
RNS Number : 9831M
Centamin PLC
13 May 2015
For immediate release 13 May 2015
Centamin plc ("Centamin" or "the Company")
(LSE:CEY, TSX:CEE)
Centamin plc Results for the Quarter ended 31 March 2015
Centamin plc ("Centamin" or "the Company") (LSE: CEY, TSX: CEE)
is pleased to announce its unaudited results for the three months
ended 31 March 2015.
Operational Highlights(1),(2)
-- Gold production of 108,233 ounces, 16% lower quarter on quarter and 46% higher than Q1 2014
-- Cash cost of production of US$717 per ounce and all in
sustaining costs (AISC) of US$858 per ounce
-- 2015 guidance of 420,000 ounces at US$700 per ounce cash cost
of production and US$950/oz AISC
-- Process plant throughput at 10Mtpa nameplate. Minor design
modifications implemented with scope over the coming quarters for
further throughput increases as optimisation continues
-- Open pit mining total material movement a quarterly record
and towards the end of the quarter had reached the full annualised
rate of 66 million tonnes as scheduled for the expanded
operation
-- Underground drilling at Sukari supports further resource and reserve expansion potential
-- Encouraging results from exploration programmes in Ethiopia,
Burkina Faso and Côte d'Ivoire
Financial Highlights(1),(2)
-- EBITDA US$53.0 million, down 13% on Q4 2014 and up 55% on Q1 2014
-- Basic earnings per share 2.50 cents, down 16% on Q4 2014 and up 34% on Q1 2014
-- Centamin remains debt-free and un-hedged with cash, bullion
on hand, gold sales receivable and available-for-sale financial
assets of US$195.8 million at 31 March 2015
Legal Developments in Egypt
-- The Supreme Administrative Court appeal and Diesel Fuel Court
Case are both on-going. Centamin is aware of the potential for the
legal process in Egypt to be lengthy and it anticipates a number of
hearings and adjournments in both cases before decisions are
reached. Operations continue as normal and any enforcement of the
Administrative Court decision has been suspended pending the appeal
ruling
Q1 2015 Q4 2014 Q1 2014
-------------------------------- ----------- -------- -------- --------
Gold produced ounces 108,233 128,115 74,241
Gold sold ounces 111,249 125,416 78,957
Cash cost of production US$/ounce 717 655 744
AISC US$/ounce 858 NR NR
Average realised gold
price US$/ounce 1,216 1,203 1,298
-------------------------------- ----------- -------- -------- --------
Revenue US$'000 135,231 151,117 102,725
EBITDA US$'000 52,988 60,749 34,265
Profit before tax US$'000 28,566 33,819 20,593
EPS US cents 2.50 2.96 1.87
Cash generated from operations US$'000 56,643 32,791 27,833
-------------------------------- ----------- -------- -------- --------
(1) Cash cost of production, AISC, EBITDA and cash, bullion on
hand, gold sales receivables and available-for-sale financial
assets are non-GAAP measures and are defined at the end of the
Financial Statements. AISC is defined by the World Gold Council,
the details of which can be found at www.gold.org.
(2) Basic EPS, EBITDA, AISC, cash cost of production includes an
exceptional provision against prepayments, recorded since Q4 2012,
to reflect the removal of fuel subsidies which occurred in January
2012 (see Note 6 of the Financial Statements)
NR - Not Reported.
Andrew Pardey, CEO of Centamin, commented: "A reduction in open
pit grades and hence quarterly production rates was expected during
the first half of 2015 as mining progresses through the upper
portions of the next stage of open pit development. Despite this
transition towards reserve-average grades at the expanded
production rate from H2 onwards, Sukari continues to demonstrate
its value as a low cost operation, with cash cost of production of
US$717 per ounce and AISC of US$858 per ounce. The operation is
well placed to meet our full year guidance of 420,000 ounces at
US$700 per ounce cash cost of production, as open pit grades are
scheduled to increase to the reserve average in the second half of
the year, when production is expected to return to annualised rates
exceeding 450,000 ounces. Sustaining capital expenditure is
expected to increase in subsequent quarters and we maintain our
AISC guidance for the year of US$950 per ounce."
Centamin will host a conference call on Wednesday, 13th May at
9.00am (London, UK time) to update investors and analysts on its
results. Participants may join the call by dialling one of the
following three numbers, approximately 10 minutes before the start
of the call.
UK Toll Free: 0808 237 0040
International Toll number: +44 203 428 1542
Canada Toll free: 1866 404 5783
Participant code: 39177059#
A recording of the call will be available four hours after the
completion of the call on:
UK Toll Free: 0808 237 0026
International Toll number: +44 20 3426 2807
Playback Code: 657996#
Via audio link at http://www.centamin.com/centamin/investors
________________________________
CHIEF EXECUTIVE OFFICER'S REPORT
Strong quarterly cash flows are reflected by an EBITDA of
US$53.0 million, up 55% on the prior year period as a 6% reduction
in the realised gold price was offset by a 41% increase in gold
sales and a 4% decrease in cash cost of production to US$717 per
ounce. The financial performance reflected efficiency improvements
of the expanded Sukari operation and a reduction in the fuel price,
despite the expected drop in production rates and consequent 13%
reduction in EBITDA when compared with the fourth quarter.
AISC of US$858 per ounce was below our full year guidance,
mainly due to the planned scheduling of certain sustaining capital
cost items to later in the year. Our full year production forecast
remains 420,000 ounces at a cash cost of production of US$700 per
ounce and AISC of US$950 per ounce.
Open pit mining rates at Sukari continued to track upwards and
set another quarterly record for total material movement of
15,996kt, up 16% on Q4 and close to the full annualised rate of 66
million tonnes as scheduled for the expanded operation. As
discussed in previous announcements, open pit grades were down on
the previous quarter and are scheduled to move towards the reserve
average during the second half of the year as mining progresses
through the upper portions of the next stage of pit
development.
Underground mining rates were down 7% on the fourth quarter but
remain in line with our target annualised production rate of 1
million tonnes per annum. The focus in the underground operation is
to maintain the average mined grade and progress was made in this
respect, with development ore grades improving from the fourth
quarter and resulting in an average mined grade of 6g/t.
In line with the grade improvements from the open pit and
underground, we continue to expect to achieve production rates of
450-500,000 ounces per annum during the second half of the
year.
Plant productivity for the quarter remained at around the 10Mtpa
nameplate capacity rate, albeit with a 5% decrease on Q4 2014. SAG
mill relines were bought forward during the quarter and the
opportunity was taken to install improved design lifters and
grates. This minor design modification is part of the on-going
process to optimise the expanded process plant and there remains
scope over the coming quarters for further increases in throughput
rates. Metallurgical recoveries were 88.3%, a material improvement
on the 87% in Q4 2014 and in line with expectation. Work continues
to address the potential for further improvements at the expanded
throughput rate.
Centamin remains committed to its policy of being 100% exposed
to the gold price through its un-hedged position and our balance
sheet remains strong, with US$195.8 million of cash, bullion on
hand, gold sales receivable and available-for-sale financial assets
of US$195.8 million as at 31 March 2015.
During the first quarter Centamin proposed a final dividend of
1.99 US cents per share (totalling approximately US$23 million),
which will be paid on 29 May 2015, subject to shareholder approval
at the AGM to be held in London on 18 May 2015. Details of the AGM
were announced on 13 April 2015.
Further support for resource expansion and the long-term
sustainability of high grade production from the underground mine
has been provided by additional positive results from the on-going
exploration drilling, as highlighted in the following pages of this
report. Exploration at our projects in Burkina Faso, Côte D'Ivoire
and Ethiopia also continue to provide encouraging results.
The two litigation actions, Diesel Fuel Oil and Concession
Agreement, progressed in line with our expectations during the year
and are described in further detail in Note 20 to the financial
statements. In respect of the latter, the Company continues to
believe that it has a strong legal position and, in addition, that
it will ultimately benefit from the new law no. 32 of 2014, which
came into force in April 2014 and which restricts the capacity for
third parties to challenge any contractual agreement between the
Egyptian government and an investor. This new law is currently
under review by the Supreme Constitutional Court of Egypt. We are
aware of the potential for the legal process in Egypt to be slow
and for cases to be subject to delays and adjournments but we
remain confident of the merits of the two cases
OPERATIONAL REVIEW
Sukari Gold Mine:
Q1 2015 Q4 2014 Q1 2014
---------------------------------- ------------ ------------ ----------
OPEN PIT MINING
Ore mined (1) ('000t) 2,562 4,123 2,325
Ore grade mined (Au g/t) 0.78 1.00 0.61
Ore grade milled (Au g/t) 0.95 1.31 0.85
Total material mined ('000t) 15,996 13,804 9,749
Strip ratio (waste/ore) 5.24 2.4 3.2
---------------------------------- ------------ ------------ ----------
UNDERGROUND MINING
Ore mined from development
('000t) 129 115 102
Ore mined from stopes ('000t) 135 169 104
Ore grade mined (Au g/t) 6.01 5.43 6.95
---------------------------------- ------------ ------------ ----------
Ore processed ('000t) 2,478 2,597 1,486
Head grade (g/t) 1.48 1.71 1.69
Gold recovery (%) 88.3 87.0 88.6
Gold produced - dump leach
(oz) 4,814 2,564 4,113
Gold produced - total (2)
(oz) 108,233 128,115 74,241
Cash cost of production(3)
(4) (US$/oz) 717 655 744
Open pit mining 247 228 245
Underground mining 47 48 69
Processing 369 334 364
G&A 54 45 66
AISC(3) (4) (US$/oz) 858 NR N NR
---------------------------------- ------------ ------------ ----------
Gold sold (oz) 111,249 125,416 78,957
Average realised sales
price (US$/oz) 1,216 1,203 1,298
---------------------------------- ------------ ------------ ----------
(1) Ore mined includes 217kt @0.52g/t delivered to the dump
leach in Q1 2015 (483kt @ 0.45 g/t in Q1 2014).
(2) Gold produced is gold poured and does not include gold-in-circuit at period end.
(3) Cash cost exclude royalties, exploration and corporate
administration expenditure. Cash cost and AISC are non-GAAP
financial performance measures with no standard meaning under GAAP.
For further information and a detailed reconciliation, please see
"Non-GAAP Financial Measures" section below.
(4) Cash cost of production and AISC reflect an exceptional
provision against prepayments to reflect the removal of fuel
subsidies which occurred in January 2012 (refer to Notes 3 and 6
respectively to the financial statements for further details).
Health and safety - Sukari
The LTIFR for Q1 2015 was 0.33 per 200,000 man-hours (Q1 2014:
0.36 per 200,000 man-hours), with a total of 1,228,658 man hours
worked during Q1 2015 (Q1 2014: 1,660,227). Developing the health
and safety culture onsite has resulted in improved reporting of
incidents compared to previous periods and, although there remains
further room for improvement, Centamin views its LTI frequency rate
as a solid achievement considering Sukari is the first modern gold
mine in Egypt.
Open pit
The open pit delivered total material movement of 15,996kt for
the quarter, an increase of 16% on Q4 2014 and a 64% increase on
the prior year period. Increased mining fleet utilisation, was due
to improved efficiencies and government approval in the fourth
quarter for the required increase in Ammonium Nitrate ("AN") usage.
This allowed waste stripping to increase and mining to focus on the
Stage 3A and 3B areas and the northern and eastern walls of the
open pit, in line with the mine plan.
Ore production from the open pit was 2.56Mt at 0.78g/t with an
average head grade fed to the plant of 0.95g/t. The ROM ore
stockpile balance increased by 33kt to 2,205kt by the end of the
quarter.
Underground mine
Ore production from the underground mine was 264kt, a 7%
decrease on Q4 2014 and a 28% increase on the prior year period.
The ratio of stoping-to-development ore mined increased, with 49%
of stoping ore (129kt) and 51% of development ore (135kt). Ore
tonnages from stopes decreased marginally by 1% on the prior year
period.
An average head grade of 6.0 g/t was mined in Q1 2015, with
stope production grade of 4.9 g/t and development grade of 7.17 g/t
during Q1 2015. Development on the Amun 740 and 725 levels
encountered higher than expected grades lifting the overall
development grade for the quarter.
Development in mineralised areas took place between the 830 and
725 levels, including the Amun Decline which was developed through
areas of low grade ore. In Q1 1,379 metres of mineralised
development were completed in the Amun and 155 metres in the Ptah
Decline for a total of 1,534 metres. Total development for the mine
was 2,118 metres including Amun and Ptah decline development.
Work on the exhaust ventilation circuits for both Amun and Ptah
declines continued, ensuring sufficient ventilation as the decline
extends deeper into the orebody.
A total of 3,334 metres of grade control diamond drilling were
completed during the quarter, aimed at short-term stope definition,
drive direction optimisation and underground resource development.
Positive results continue and are discussed in the following
section. A further 9,005 metres of drilling continued to test the
depth extensions below the current Amun and Ptah zones.
Processing
Quarterly throughput at the Sukari process plant was 2,478Mt, a
67% increase on the prior year period and a 5% decrease on Q4 2014.
SAG mill relines where bought forward during the quarter with
improved design lifters and grates being installed in the new plant
to lift productivity through this circuit.
Productivity of the processing plant was 1,286 tonnes per day, a
73% increase on the prior year period and a 3% decrease on Q4 2014.
Improved throughput rates have been achieved since relining the new
SAG mill and focus is continuing to improve both the crushing and
grinding circuits to increase throughput.
Metallurgical recoveries were 88.3%, a 1.3% increase on Q4 2014
and a 0.3% decrease on the prior year period. Work is continuing to
optimise the operational controls and improve circuit stability to
ensure recoveries remain at levels above 88% at the increased rate
of throughput. Modifications to the regrind cyclones were completed
during the quarter and this has assisted in improving recoveries.
The focus for Q2 is to continue to improve the plant recoveries as
throughput levels increase.
The dump leach operation produced 4,814oz in Q1 2015, an 88%
increase on Q4 2014 and a 17% increase on the prior year
period.
Fuel Costs
International fuel prices have been falling steadily and the
cost per litre has reduced by 26% or US$19 per ounce produced
compared to the prior year period.
In light of the on-going dispute with the Egyptian Government
regarding the price at which Diesel Fuel Oil ("DFO") is supplied to
the mine at Sukari, it has been necessary since January 2012 to
advance funds to our fuel supplier, Chevron, based on the
international price for diesel. The Company has fully provided
against the prepayment of US$178.2 million as an exceptional item,
of which US$12.4 million was provided for during Q1 2015. Refer to
Note 4 of the accompanying interim condensed consolidated financial
statements for further details on the impact of this exceptional
provision on the Group's results for Q1 2015.
In addition, during 2012 the Group received a demand from
Chevron for the repayment of fuel subsidies received in the period
from late 2009 through to January 2012, amounting to some US$60
million (EGP403 million). No provision has been made in respect of
the historic subsidies prior to January 2012 as, based on legal
advice that it has received to date, the Company believes that the
prospects of a court finding in its favour in relation to this
matter remains strong.
As disclosed previously, the Company has commenced proceedings
in the Administrative Court in Egypt in relation to these matters.
The Company remains of the view that an instant move to
international fuel prices is not a reasonable outcome and will look
to recover any funds advanced thus far at the higher rate should
the court proceedings be successfully concluded. Please refer to
Note 7 to the accompanying interim condensed consolidated financial
statements and the most recently filed Annual Information Form
('AIF') for further information.
Q1 2015 Capital Expenditure
A breakdown of capital expenditure for the Group during Q1 2015
is as follows:
US$ million
Open pit development -
Underground mine development
(1) 8.0
Other sustaining capital -
expenditure
------------
TOTAL SUSTAINING CAPEX
- SUKARI 8.0
EXPLORATION CAPITALISED 8.6
(1) Includes underground exploration drilling
Exploration
Sukari
Drilling from underground remains a focus of the Sukari
exploration programme as new development provided improved access
from below surface to test potential high-grade extensions of the
deposit. The ore body has not yet been closed off to the north,
south or at depth and further underground drilling of the Sukari
deposit will take place during 2015, predominantly from both the
Amun and Ptah declines.
Selected results received during the first quarter from the
underground drilling programme which have not yet been included in
the resource base, and which are in addition to results previously,
include the following:
Amun
Hole Number Depth (m) Interval Au (g/t)
(m)
--------------
From To
UGRSD0219 200.2 206.0 5.9 9.8
------------- ------ ------ --------- ---------
UGRSD0223 119.0 128.0 5.9 9.1
------------- ------ ------ --------- ---------
UGRSD0225 140.0 152.0 12.0 14.6
------------- ------ ------ --------- ---------
UGRSD0225 156.0 157.6 1.6 41.4
------------- ------ ------ --------- ---------
UGRSD0225 183.2 184.5 1.4 82.7
------------- ------ ------ --------- ---------
Ptah
Hole Number Depth (m) Interval Au (g/t)
(m)
------------- -------------- --------- ---------
From To
------------- ------ ------ --------- ---------
UGRSD0140 39.3 41.2 1.9 304.7
------------- ------ ------ --------- ---------
UGRSD0548 3.0 10.0 7.0 11.6
------------- ------ ------ --------- ---------
UGRSD0548 79.0 90.0 11.0 15.6
------------- ------ ------ --------- ---------
UGRSD0551 116.6 117.0 2.7 807.0
------------- ------ ------ --------- ---------
UGRSD0556 58.6 65.4 7.6 10.4
------------- ------ ------ --------- ---------
UGRSD0556 73.0 79.0 6.0 23.0
------------- ------ ------ --------- ---------
UGRSD0561 53.0 56.0 3.0 22.7
------------- ------ ------ --------- ---------
UGRSD0561 120.3 126.2 5.9 33.4
------------- ------ ------ --------- ---------
UGRSD0157 137.0 143.0 6.0 10.3
------------- ------ ------ --------- ---------
UGRSD0157 172.0 173.2 1.2 39.9
------------- ------ ------ --------- ---------
During the first quarter exploration was focused at Sukari Hill.
There are seven other prospects besides Sukari Hill that have been
identified on the 160km(2) Sukari tenement area which are close
enough, such that ore from these prospects could be trucked to the
existing processing plant.
A resource and reserve update is expected to be issued during
the third quarter of 2015.
Burkina Faso
Centamin's tenements in Burkina Faso, collectively known as the
Batie West permits, are Danhal, Donko, Dounkou, Gbingbina, Mabera,
Tiopolo, Niorka, Bottara, Kaldera, Kpere Batie, Timboura and
Kpere.
As reported in the annual results, an unfortunate incident
happened earlier in the year in Burkina Faso. The incident, which
occurred on a public road near the Konkera village, resulted in one
of our local employees being fatally wounded and another sustained
injuries. The wellbeing of our employees is a priority for Centamin
and a thorough investigation into this bandit attack, on two of our
vehicles, has been carried out. Further additional security
measures have been proposed following the incident and these are
being implemented. There was no impact on operational activity as a
result of the incident.
Subsequent to the Ampella acquisition, Centamin has re-commenced
field activities at Batie West, with a systematic programme
including RC, diamond and auger drilling, geophysical surveys,
geochemical sampling and geological mapping. Drilling has been
completed at the Pampouna (2,685m), Konkera South (1,290m), Tonsu
(2,047m), Tonior (5,551m), Golden Eye (732m), Wadaradoo (3,907m)
and Amimbiri (3,556m) prospects for a total of 19,768m, including
584m of diamond drilling.
An Induced Polarisation (IP) geophysical survey at the Wadaradoo
prospect has been completed and has identified continuous
chargeability and resistivity anomalies, which are proving to be
useful for defining drill targets. Further geochemical sampling
work is being undertaken at the Napelepera East prospect in
relation to identifying repeat mineralised structures related the
Napelapera project.
Ampella's mining licence application in relation to the Tiopolo
Permit was passed to the Ministers Council during 2014. The signed
ministerial decree was issued on the 5th March 2015 and an
application has been made to postpone development and continue
exploration, as provisioned in the Burkina Faso Mining Code.
Essential components of our health and safety management systems
are being integrated into our exploration programme at Batie West.
This process includes an orientation and induction for employees
and contractors to ensure adherence to our strict policies and
procedures. The Batie West camp site has a well-equipped clinic
which includes a full-time paramedic.
The strategy for 2015 is to continue to systematically explore
the entire 160 km strike length of the belt and drill-test the
prospectivity of the prospects. It is expected this will lead into
further resource development work in late 2015 progressing into
2016.
Côte d'Ivoire
Centamin has three licences in Côte d'Ivoire covering a c.1,200
km(2) area across the border from Batie West in Burkina Faso. A
further four licences are currently under application.
Field work commenced with the technical team completing mapping,
rock chip sampling and auger drilling geochemistry. Airborne
magnetic and radiometric survey commenced over the permits.
The objective for 2015 is to geologically assess the three
current permits, identify prospects and undertake first pass RC
drilling on priority targets, aimed at a path towards resource
development in 2016.
The four permits that are under application are expected to be
granted in first half of 2015, and are planned to be covered by
regional surface geochemistry aimed at identifying anomalies for
first-pass drilling in 2016.
Ethiopia
Centamin continued exploration on its tenement in Una Deriem in
northern Ethiopia, and in total, 1,703 meters were drilled.
Trench intercepts including 20m at 1.08g/t and 22m at 1.48g/t
indicate the presence of significant surface mineralisation.
Drilling continued to test continuity of mineralization and
positive drill results along strike. Results received during the
period indicated patchy mineralisaton, the best of which were from
hole UDM050 which returned 2m @ 2.68g/t from 22m and 2m @ 7.77g/t
from 155m.
A new permit known as the 'Ondonok Dabus' License, located in
the west of Ethiopia close to the regional capital of Asosa, has
been awarded. Early-stage regional works are underway, including
access tracks, introductions to the local authorities and stream
sediment sampling.
In September 2013 Centamin entered into joint venture with
AIM-listed Alecto Minerals plc to pursue existing and new
opportunities identified by Alecto in Ethiopia. The initial joint
venture projects related to two exploration licences Wayu Boda and
Aysid Meketel. The Company gave formal notice to Alecto in February
2015 terminating the joint venture. Centamin's rights in the Wayu
Boda and Aysid Metekel licences have reverted back to Alecto, such
that Alecto will hold 100% of the Licences and will assume
responsibility for the ongoing commitments in respect of the
Licences.
FINANCIAL REVIEW
Centamin has a strong and flexible financial position with no
debt, no hedging and cash, bullion on hand, gold sales receivables
and available-for-sale financial assets of US$195.8 million at 31
March 2015, up from US$162.8 million at 31 December 2014. For
further information, please see the "Non-GAAP Financial Measures"
section.
At 31 March 2015 At 31 March 2014
------------------------------ ----------------- -----------------
US$163.3 million US$112.0 million
Cash at Bank
------------------------------ ----------------- -----------------
US$22.9 million US$19.7 million
Gold Sales Receivable
------------------------------ ----------------- -----------------
US$0.5 million US$0.6 million
Available for sale financial
assets
------------------------------ ----------------- -----------------
US$9.1 million US$5.5 million
Bullion on hand
------------------------------ ----------------- -----------------
US$195.8 million US$137.8 million
Total
------------------------------ ----------------- -----------------
Centamin's unit cash cost of production was US$717 per ounce, an
increase of US$62 versus Q4 2014 as a result of a decrease in
quarterly production. On the basis of excluding the exceptional
provision for fuel prepayments this equated to US$594 per ounce, an
increase of US$29 versus Q4 2014. International fuel prices have
been falling steadily and the cost per litre has reduced by 26%, or
US$19 per ounce produced, compared to the prior year period. During
the remainder of the year we expect average unit costs to reduce,
due to improving efficiencies and higher quarterly production rates
driven by increasing plant throughput and improving open pit
grades.
AISC was below our full year guidance, mainly due to the planned
scheduling of certain sustaining capital cost items to later in the
year. Guidance remains at 420,000 ounces of gold at US$700 per
ounce cash cost of production and US$950 AISC.
EBITDA for the period was US$53.0 million, down 13% on the
previous quarter. The key contributing factors were:
(a) a 11% or a US$15.9 million decrease in revenue; offset by
(b) a 7% or a US$6.2 million decrease in operating costs, and
(c) a US$0.1 million decrease in inventory movement.
As announced on 23 March 2015, the Directors proposed a final
dividend of 1.99 US cents per share (US$0.0199) on Centamin plc
ordinary shares (totalling approximately US$23 million) for a full
year total of 2.86 US cents per share. The final dividend for 2014
will be paid on 29 May 2015, subject to shareholder approval at the
AGM to be held in London on 18 May 2015. The dividend will be paid
to shareholders on the register on the Record Date of 24 April
2015.
CORPORATE UPDATE
Board changes
Centamin announced on 15 January 2015 the appointment of Mr
Andrew Pardey as Chief Executive Officer (CEO) who joined the Board
as an Executive Director on 1 February 2015. Josef El-Raghy,
interim CEO, continues in his role as Chairman. On 27 January 2015,
Centamin announced the retirement of Non-Executive Director,
Professor G Robert Bowker.
Annual General Meeting
In April 2015, Centamin published its Notice of Annual General
Meeting together with its 2014 Annual Report and Accounts.
Centamin's Annual General Meeting will be held at 10:00 a.m. (UK
time) on Monday 18 May 2015 at 107 Cheapside, London, EC2V 6DN.
LEGAL ACTIONS
As detailed in Note 7 of the accompanying interim condensed
consolidated financial statements, the Group's appeal against the
30 October 2012 ruling by the Egyptian Administrative Court remains
ongoing. Centamin does not currently see the need to take the
matter to proceedings outside of Egypt as Centamin remains of the
belief that the Egyptian Court will rule in Centamin's favour,
based on the legal merit of the case.
The Group continues to benefit from the full support of the
Ministry of Petroleum and EMRA, both in the appeal and at the
operational level. As part of its long term strategy, Centamin
looks forward to continuing to share the benefits of this
substantial investment as the operation emerges from its initial
period of construction and thus sets the stage for a new era of
gold mining in Egypt.
It should be noted that a new investment law (32 of 2014) was
passed in April 2014, restricting the capacity for third parties to
challenge any contractual agreements between the Egyptian
government and an investor. The Company's legal advisers have
confirmed that Centamin is likely to benefit from this law in the
Concession Agreement case. The validity of the new law is currently
being challenged in the Egyptian Constitutional Court but Centamin
believes the challenge is unlikely to succeed and that the original
claim in relation to the Sukari Concession Agreement, which was
brought by a third party and is subject to an ongoing court appeal,
should, in due course, be dismissed under the provisions of this
new law.
With the exception of the relationships with EMRA and the
Egyptian government referred to above, we do not believe there are
any third party relationships which are critical to the Group's
success or which would have a material impact upon the Group's
position if the relationship broke down.
COST RECOVERY AND PROFIT SHARE
Based on the Company's calculation there was no 'Net Profit
Share' due to EMRA as at 31 March 2015, nor is any likely to be due
as at 30 June 2015. It is expected that there will be profit share
due to EMRA for the Sukari Gold Mine ("SGM") financial year ending
30 June 2017, based on budgeted production, operating expense
forecasts and gold price. Centamin elected to make advance payments
against future profit share during 2013 and 2014 to the value of
US$23.75 million, in order to demonstrate goodwill towards the
Egyptian government.
OUTLOOK
The focus for 2015 is to continue production growth at Sukari
whilst maintaining a strong control on costs, with the objective of
generating substantial free cash flow even under challenging gold
price assumptions. We intend to return 15-30% of this free cash
flow to our shareholders, in line with our dividend policy, and to
allocate the remainder towards our medium and long-term objective
of organic growth aimed at realising incremental shareholder value
and returns.
Safety remains a priority and we target a loss time injury rate
of zero during 2015.
Guidance for 2015 is for 420,000 ounces at US$700/oz cash cost
of production and US$950/oz AISC. Production is expected to achieve
the 450-500,000 ounce per annum target rate from H2 onwards.
In the open pit the focus will continue on the northern and
eastern cutback to expose higher-grade ore from the second half of
the year. This will allow the operation to be on a secure footing
to sustain, on an annual basis, the required tonnage at average
reserve grades.
As we achieve these targets, and during the next 2-3 year
period, we intend to continue optimising the various areas of the
expanded Sukari operation with the ultimate aim of delivering
further production increases. The productivity levels achieved
during 2013 in the pre-expansion process plant, together with the
various design improvements implemented during the Stage 4 project
build, provide us with confidence that the expanded plant will
achieve, in time, production levels materially above nameplate
capacity. At the underground mine, as stable grade delivery is
achieved at the current mined volumes, we see potential for further
incremental productivity increases.
The additional shareholder value that can be gained from the
continued drive for efficiency has the potential to be significant
and requires no significant capital expenditure.
No capital expenditure for expansion or project development is
planned for 2015.
Exploration at Sukari continues to prioritise extensions of the
high-grade underground resource and reserve and we expect to
continue to deliver positive news in line with the strong results
to date. A resource and reserve update is expected to be issued
during the third quarter of 2015.
Outside of Sukari, we expect a total exploration expenditure of
circa-US$20 million in 2015, with the largest proportion on the
advanced exploration programme in Burkina Faso. Our exploration
tenements in Côte d'Ivoire and Ethiopia are green field exploration
sites and therefore require lower exploration spend. In line with
our overall exploration strategy, the actual expenditure on these
projects is results-driven and the current estimated expenditures
are therefore subject to on-going revisions.
We will continue to evaluate potential opportunities to grow the
business through the acquisition of projects offering the potential
for the Company to deliver on its strategic objectives.
Andrew Pardey
Chief Executive Officer
Set out below are the unaudited consolidated Financial
Statements for the Group, including notes thereto, for the quarter
ended 31 March 2015.
UNAUDITED INTERIM CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE QUARTER ENDED
31 MARCH 2015
CONTENTS
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 13
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL
POSITION 14
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY 15
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
16
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS 17
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED 31 MARCH 2015
Note 31 March 2015 31 March 2014
-------------------------------------- --------------------------------------
Before Before
exceptional Exceptional exceptional Exceptional
items items (1) Total items items (1) Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
------------ ------------- --------- ------------ ------------- ---------
Revenue 3 135,479 - 135,479 102,725 - 102,725
Cost of sales 4 (86,415) (13,947) (100,362) (61,903) (14,423) (76,326)
------------ ------------- --------- ------------ ------------- ---------
Gross profit 49,064 (13,947) 35,117 40,822 (14,423) 26,399
Other operating costs 4 (6,940) - (6,940) (5,621) - (5,621)
Reversal of Impairment
/ (Impairment) of
available-for-sale
financial assets 13 327 - 327 (322) - (322)
Finance income 4 62 - 62 137 - 137
Profit before tax 42,513 (13,947) 28,566 35,016 (14,423) 20,593
Tax - - - - - -
Profit for the period 42,513 (13,947) 28,566 35,016 (14,423) 20,593
------------ ------------- --------- ------------ ------------- ---------
Other comprehensive
income
Items that may be
reclassified subsequently
to profit or loss:
Gains/(losses) on
available for sale
financial assets
(net of tax) 136 - 136 - - -
Other comprehensive
income for the period 13 136 - 136 - - -
------------ ------------- --------- ------------ ------------- ---------
Total comprehensive
income for the period
net of tax 42,649 (13,947) 28,702 35,016 (14,423) 20,593
------------ ------------- --------- ------------ ------------- ---------
Total comprehensive
income attributable
to:
Owners of the Company 42,649 - 28,702 35,029 - 20,606
Non-controlling interests
(2) - - - (13) - (13)
42,649 - 28,702 35,016 (14,423) 20,593
------------ ------------- --------- ------------ ------------- ---------
Earnings per share:
Basic (cents per
share) 10 3.722 (1.221) 2.501 3.180 (1.310) 1.870
Diluted (cents per
share) 10 3.690 (1.210) 2.480 3.155 (1.300) 1.855
(1() Refer to Note 4 for further details.
(2) Non-Controlling Interest represented the remaining 6%
shareholding in Ampella Mining Limited held by minority
shareholders who were subject to compulsory acquisition as at 31
March 2014.
The above Unaudited Interim Condensed Consolidated Statement of
Comprehensive Income should be read in conjunction with the
accompanying notes.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
AS AT 31 MARCH 2015
Note 31 March 2015 31 December
2014
(Unaudited) (Audited)
US$'000 US$'000
NON-CURRENT ASSETS
Property, plant and equipment 11 912,517 928,964
Exploration and evaluation
asset 12 132,590 123,999
Prepayments 5 23,750 23,750
Other 653 645
------------- -----------
Total non-current assets 1,069,510 1,077,358
------------- -----------
CURRENT ASSETS
Inventories 140,267 140,628
Available-for-sale financial
assets 13 497 409
Trade and other receivables 24,860 24,973
Prepayments 5 1,376 1,710
Cash and cash equivalents 16a 163,351 125,659
------------- -----------
Total current assets 330,351 293,379
------------- -----------
Total assets 1,399,861 1,370,737
------------- -----------
NON-CURRENT LIABILITIES
Provisions 3,105 3,015
------------- -----------
Total non-current liabilities 3,105 3,015
------------- -----------
CURRENT LIABILITIES
Trade and other payables 32,716 34,042
Tax liabilities - -
Provisions 1,250 307
------------- -----------
Total current liabilities 33,966 34,349
------------- -----------
Total liabilities 37,071 37,364
------------- -----------
Net assets 1,362,790 1,333,373
------------- -----------
EQUITY
Issued capital 8 661,573 661,573
Share option reserve 4,813 4,098
Other reserves - -
Accumulated profits 696,404 667,702
------------- -----------
Total Equity 1,362,790 1,333,373
------------- -----------
The above Unaudited Interim Condensed Consolidated Statement of
Financial Position should be read in conjunction with the
accompanying notes.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY FOR THE THREE MONTHS ENDED 31 MARCH 2015
Share options Accumulated
Issued Capital reserve profits Total Equity
US$'000 US$'000 US$'000 US$'000
---------------- ----------------- ------------- ----------------
Balance as at 1 January 2015 661,573 4,098 667,702 1,333,373
Profit for the period - - 28,566 28,566
Other comprehensive income for
the period - - 136 136
---------------- ----------------- ------------- ----------------
Total comprehensive income for
the period - - 28,702 28,702
Recognition of share based
payments - 715 - 715
Balance as at 31 March 2015 661,573 4,813 696,404 1,362,790
---------------- ----------------- ------------- ----------------
Mandatory Non-controlling
Share issuable interest Total
Issued options Accumulated capital (2) Equity
Capital reserve profits (1) Total US$'000 US$'000
US$'000 US$'000 US$'000 US$'000 US$'000
-------- -------- ----------- --------- ---------- --------------- ----------
Balance as at 1 January
2014 612,463 5,761 594,624 - 1,212,848 - 1,212,848
Acquisition of Ampella
Mining Limited (3) - - - - - 642 642
Deferred consideration
- mandatory issuable
capital - - - 8,127 8,127 - 8,127
Profit for the period - - 20,606 - 20,606 (13) 20,593
Other comprehensive
income for the period - - - - - - -
-------- -------- ----------- --------- ---------- --------------- ----------
Total comprehensive
income for the period - - 20,606 - 20,606 (13) 20,593
Issue of shares 36,812 - - - 36,812 - 36,812
Recognition of share
based payments - 598 - - 598 - 598
Balance as at 31 March
2014 649,275 6,359 615,230 8,127 1,278,991 629 1,279,620
-------- -------- ----------- --------- ---------- --------------- ----------
(1) Mandatory issuable capital relates to the 9,578,546 ordinary
shares that were admitted to trading on 1 April 2014 in relation to
the number of Ampella Mining Limited shareholders that had accepted
Centamin's off-market takeover offer during the period from 1 March
2014 to 31 March 2014 as consideration for the acquisition of
Ampella Mining Limited. As at 31 March 2015 Centamin held a 100%
interest in the exploration rights in Ampella Mining Limited.
(2) Non-Controlling Interest represented the remaining 6%
shareholding in Ampella Mining Limited held by minority
shareholders who were subject to compulsory acquisition.
(3) Centamin gained control on 24 February 2014, when over 50%
of the Ampella Mining Limited shareholders had accepted the
off-market takeover offer. Subsequent to 24 February 2014, a
further 44% of the Ampella Mining Limited shareholders accepted the
offer which resulted in Centamin holding a 94% interest in the
exploration rights in Ampella Mining Limited.
The above Unaudited Interim Condensed Consolidated Statement of
Changes in Equity should be read in conjunction with the
accompanying notes.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED 31 MARCH 2015
Three Months Ended
31 March
Note 2015 2014
US$'000 US$'000
Cash flows from operating activities
Cash generated in operating activities 16(b) 56,705 27,970
Finance income (62) (137)
Net cash generated by operating activities 56,643 27,833
--------- ---------
Cash flows from investing activities
Acquisition of property, plant and
equipment (8,724) (28,488)
Exploration and evaluation expenditure (8,592) (2,499)
Proceeds from sale of financial assets - 91
Cash acquired through Ampella Mining
Limited asset acquisition - 9,254
Finance income 62 137
Net cash used in investing activities (17,254) (21,505)
--------- ---------
Net increase in cash and cash equivalents 39,389 6,328
Cash and cash equivalents at the beginning
of the period 125,659 105,979
Effect of foreign exchange rate changes (1,697) (350)
--------- ---------
Cash and cash equivalents at the end
of the period 16 163,351 111,957
--------- ---------
The above Condensed Consolidated Statement of Cash Flows should
be read in conjunction with the accompanying notes.
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS FOR THE THREE MONTHS ENDED 31 MARCH 2015
NOTE 1: ACCOUNTING POLICIES
Basis of preparation
These unaudited interim condensed consolidated financial
statements have been prepared in accordance with IAS 34 "Interim
Financial Reporting" ("IAS 34") and the requirements of the
Disclosure and Transparency Rules (DTR) of the Financial Conduct
Authority (FCA) in the United Kingdom as applicable to interim
financial reporting.
The unaudited interim condensed consolidated financial
statements represent a 'condensed set of financial statements' as
referred to in the DTR issued by the FSA. Accordingly, they do not
include all of the information required for a full annual financial
report and are to be read in conjunction with the Group's financial
statements for the year ended 31 December 2014, which were prepared
in accordance with International Financial Reporting Standards
("IFRS") as issued by the International Accounting Standards Board
("IASB") and adopted for use by the European Union and IFRS as
issued by the IASB. The financial information contained in this
report does not constitute statutory accounts under the Companies
(Jersey) Law 1991, as amended. The financial information for the
year ended 31 December 2013 is based on the statutory accounts for
the year ended 31 December 2014. Readers are referred to the
auditor's report to the Group financial statements as at 31
December 2014 (available at www.centamin.com).
The accounting policies applied in these interim financial
statements are consistent with those used in the annual
consolidated financial statements for the year ended 31 December
2014. There have been no changes from the accounting policies
applied in the 31 December 2014 financial statements.
The preparation of these interim condensed consolidated
financial statements requires the use of certain significant
accounting estimates and judgment by management in applying the
Group's accounting policies. There have been no changes to the
areas involving significant judgment and estimates that have been
set out in Note 4 of the Group's annual audited consolidated
financial statements for the year ended 31 December 2014.
Going concern
These financial statements for the period ended 31 March 2015
have been prepared on a going concern basis, which contemplate the
realisation of assets and liquidation of liabilities during the
normal course of operations.
As discussed in Note 7, during the prior year the operation of
the mine was affected by two legal actions. The first of these
followed from a decision taken by EGPC to charge international, not
local (subsidised) prices for the supply of Diesel Fuel Oil, and
the second arose as a result of judgment of an Administrative Court
of first instance in relation to, amongst other matters, the
Company's 160km(2) exploitation lease. In relation to the first
decision, the Company remains confident that in the event that it
is required to continue to pay international prices, the mine at
Sukari will remain commercially viable. Similarly, the Company
remains confident that the appeal it has lodged in relation to the
decision of the Administrative Court will ultimately be successful,
although final resolution of it may take some time. On 20 March
2013 the Supreme Administrative Court upheld the Company's
application to suspend the decision until the merits of the
Company's appeal are considered and ruled on, thus providing
assurance that normal operations would be able to continue during
this process.
In the unlikely event that the Group is unsuccessful in either
or both of its legal actions, and that the operating activities are
restricted to a reduced area, it is the director's belief that the
Group will be able to continue as going concern.
The directors have a reasonable expectation that the Group will
have adequate resources to continue in operational existence for
the foreseeable future. Thus they continue to adopt the going
concern basis of accounting in preparing these interim condensed
consolidated financial statements.
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS FOR THE THREE MONTHS ENDED 31 MARCH 2015 (CONTINUED)
NOTE 2: SEGMENT REPORTING
The Group is engaged in the business of exploration and mining
metals only, which represents a single operating segment. The Board
is the Group's chief operating decision maker within the meaning of
IFRS 8.
NOTE 3: REVENUE
An analysis of the Group's revenue for the period, from
continuing operations, is as follows:
Three Months Ended
31 March
2015 2014
US$'000 US$'000
Gold sales 135,231 102,496
Silver sales 248 229
----------- -----------
135,479 102,725
Finance income 62 137
----------- -----------
135,541 102,862
----------- -----------
NOTE 4: PROFIT BEFORE TAX
Profit for the period has been arrived at after
crediting/(charging) the following gains/(losses) and expenses:
Three months ended 31 March Three months ended 31 March
2015 2014
Before exceptional Before
items Exceptional Total exceptional Exceptional Total
items items items
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Finance income
Interest received 62 - 62 137 - 137
------------------ ------------- ------- ------------ ------------- -------
Three months ended 31 March Three months ended 31 March
2015 2014
Before exceptional Before
items Exceptional Total exceptional Exceptional Total
items items items
Expenses US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Cost of sales
Mine production costs (64,585) (13,290) (77,875) (42,762) (12,882) (55,644)
Movement in inventory 2,639 (657) 1,982 (5,359) (1,541) (6,900)
Depreciation and
Amortisation (24,469) - (24,469) (13,782) - (13,782)
------------------ ------------- --------- ------------ ------------- --------
(86,415) (13,947) (100,362) (61,903) (14,423) (76,326)
------------------ ------------- --------- ------------ ------------- --------
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS FOR THE THREE MONTHS ENDED 31 MARCH 2015 (CONTINUED)
NOTE 4: PROFIT BEFORE TAX (CONTINUED)
Three months ended 31 March Three months ended 31 March
2015 2014
Before exceptional Before
items Exceptional Total exceptional Exceptional Total
items items items
Other operating costs US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Fixed royalty -
Attributable
to the Egyptian
government (4,055) - (4,055) (3,074) - (3,074)
Corporate costs (2,967) - (2,967) (3,660) - (3,660)
Other expenses (31) - (31) (33) - (33)
Foreign exchange gain,
net 218 - 218 1,307 - 1,307
Provision for
restoration
and rehabilitation
- unwinding of
discount (90) - (90) (134) - (134)
Share of loss in - - - - - -
associate
Depreciation (15) - (15) (27) - (27)
(6,940) - (6,940) (5,621) - (5,621)
------------------ ------------- --------- ------------ ------------- ---------
Reversal of Impairment
/ (Impairment) of
available
for sale financial
assets 327 - 327 (322) - (322)
------------------ ------------- --------- ------------ ------------- ---------
Exceptional items
The directors consider that items of income or expense which are
material by virtue of their unusual, irregular or non-recurring
nature should be disclosed separately if the consolidated financial
statements are to fairly present the financial position and
underlying business performance. In order to allow a better
understanding of the financial information presented within the
consolidated financial statements, and specifically the Group's
underlying business performance, the effect of exceptional items
are shown below.
Three Months Ended
31 March
(Unaudited)
2015 2014
US$'000 US$'000
Included in Cost of sales
Mine production costs (13,290) (12,882)
Movement in inventory (657) (1,541)
(13,947) (14,423)
-------- --------
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS FOR THE THREE MONTHS ENDED 31 MARCH 2015 (CONTINUED)
NOTE 4: PROFIT BEFORE TAX (CONTINUED)
Exceptional items (continued)
In January 2012 the Company received a letter from Chevron to
the effect that Chevron would not be able to continue supplying
Diesel Fuel Oil (DFO) to the mine at Sukari at local subsidised
prices. It is understood that the reason that this letter was
issued was that Chevron had received a letter instructing it to do
so from the Egyptian General Petroleum Corporation ("EGPC"). It is
further understood that EGPC itself took the decision to issue this
instruction because it had received legal advice from the Legal
Advice Department of the Council of State (an internal government
advisory department) that the companies operating in the gold
mining sector in Egypt were not entitled to such subsidies. In
addition, the Company during the year received a demand from
Chevron for the repayment of fuel subsidies received in the period
from late 2009 through to January 2012, amounting to some US$60
million (EGP403 million).
The Group has taken detailed legal advice on this matter (and,
in particular, on the opinion given by Legal Advice Department of
the Council of State) and in consequence in June 2012 lodged an
appeal against EGPC's decision in the Administrative Courts. Again,
the Group believes that its grounds for appeal are strong and that
there is every prospect of success. However, as a practical matter,
and in order to ensure the continuation of supply, the Group has
since January 2012 advanced funds to its fuel supplier, Chevron,
based on the international price for diesel. As at the date of the
financial statements, no final decision had been taken by the
courts regarding this matter. Furthermore, the Group remains of the
view that an instant move to international fuel prices is not a
reasonable outcome and will look to recover funds advanced thus far
should the court proceeding be concluded in its favour. However,
management recognises the practical difficulties associated with
re-claiming funds from the government and for this reason has,
fully provided against the prepayment of US$12.4 million made
during Q1 2015 as an exceptional item, as follows:
(a) a US$13.9 million increase in cost of sales,
(b) a US$0.8 million decrease in stores inventories, and
(c) a US$0.7 million decrease in mining stockpiles and ore in circuit.
This has resulted in a net decrease of US$16.4 million in the
profit and loss in Q1 2015.
NOTE 5: PREPAYMENTS
Three Months Year Ended
Ended 31 December
31 March 2014
2015
(Unaudited) (Audited)
US$'000 US$'000
Non-current Prepayments
Advance payment to EMRA 23,750 23,750
------ ------
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS FOR THE THREE MONTHS ENDED 31 MARCH 2015 (CONTINUED)
NOTE 5: PREPAYMENTS (CONTINUED)
Three Months Year Ended
Ended 31 December
31 March 2014
2015
(Unaudited) (Audited)
US$'000 US$'000
Current Prepayments
Prepayments 1,376 1,269
Fuel prepayments - -
----- -----
Prepayments 1,376 1,269
----- -----
Movement in fuel prepayments (1)
Balance at the beginning of the period - -
Fuel prepayment recognised 12,427 68,737
Less: Provision charged to (2) :
Mine production costs (see Note 4) (13,290) (61,564)
Property, plant and equipment - (6,953)
Inventories 863 (220)
Balance at the end of the period - -
-------- --------
(1) The cumulative fuel prepayment recognised and provision
charged as at 31 March 2015 is as follows:
Fuel prepayment recognised (US$'000) 178,159
Provision charged to:
Mine production costs (US$'000) 164,638
Property, plant and equipment (US$'000) 11,852
Inventories (US$'000) 1,669
(2) Refer to Note 4, Exceptional Items, for further details.
NOTE 6: COMMITMENTS
The following is a summary of the Company's outstanding
commitments as at 31 March 2015:
Payments due Total < 1 year 1 to 5 years >5 years
US$'000 US$'000 US$'000 US$'000
Operating Lease Commitments 213 62 151 -
--------- --------- ------------- ---------
Total commitments 213 62 151 -
--------- --------- ------------- ---------
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS FOR THE THREE MONTHS ENDED 31 MARCH 2015 (CONTINUED)
NOTE 7: CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Contingent Liabilities
Fuel Supply
In January 2012, the Group received a letter from Chevron to the
effect that Chevron would only be able to supply Diesel Fuel Oil
("DFO") to the mine at Sukari at international prices rather than
at local subsidised prices, which had the effect of adding
approximately US$150 per ounce to the cost of production. It is
understood that the reason that this letter was issued was that
Chevron had received a letter instructing it to do so from the
Egyptian General Petroleum Corporation ("EGPC"). It is further
understood that EGPC itself issued this instruction because it had
received legal advice from the Legal Advice Department of the
Council of State (an internal government advisory department) that
the companies operating in the gold mining sector in Egypt were not
entitled to such subsidies. In November, the Group received a
further demand from Chevron for the repayment of fuel subsidies
received during the period from late 2009 through to January 2012,
amounting to EGGBP403 million (approximately US$53.0 million at
current exchange rates).
The Group has taken detailed legal advice on this matter (and,
in particular, on the opinion given by the Legal Advice
Department of the Council of State) and in June 2012 lodged an
appeal against EGPC's decision in the Administrative Courts. Again,
the Group believes that its grounds for appeal are strong and that
there is a good prospect of success. However, as a practical
matter, and in order to ensure the continuation of supply whilst
the matter is resolved, the Group has since January 2012 advanced
funds to its fuel supplier, Chevron, based on the international
price for fuel.
As at the date of this document, no decision had been taken by
the courts regarding this matter. The Group remains of the view
that an instant move to international fuel prices is not a
reasonable outcome and will look to recover funds advanced thus far
should the court action be successfully concluded. However,
management recognises the practical difficulties associated with
reclaiming funds from the government and for this reason has fully
provided against the prepayment of US$178.2 million, as an
exceptional item. Refer to Note 6 of the accompanying financial
statements for further details on the impact of this exceptional
provision on the Group's results for Q1 2015.
No provision has been made in respect of the historic subsidies
prior to January 2012 as, based on legal advice, the Company
believes that the prospects of a court finding in its favour in
relation to this matter remain very strong.
Concession Agreement Court Case
On 30 October 2012, the Administrative Court in Egypt handed
down a judgment in relation to a claim brought by, amongst others,
an independent member of a previous parliament, in which he argued
for the nullification of the agreement that confers on the Group
rights to operate in Egypt. This agreement, the Concession
Agreement, was entered into between the Arab Republic of Egypt, the
Egyptian Mineral Resources Authority ("EMRA") and Centamin's
wholly--owned subsidiary Pharaoh Gold Mines ("PGM"), and was
approved by the People's Assembly as Law 222 of 1994.
In summary that judgment states that, although the Concession
Agreement itself remains valid and in force, insufficient evidence
had been submitted to Court in order to demonstrate that the
160km(2) "exploitation lease" between PGM and EMRA had received
approval from the relevant Minister as required by the terms of the
Concession Agreement. Accordingly, the Court found that the
exploitation lease in respect of the area of 160km(2) was not valid
although it stated that there was in existence such a lease in
respect of an area of 3km(2) . Centamin, however, is in possession
of the executed original lease documentation which clearly shows
that the 160km(2) exploitation lease was approved by the Minister
of Petroleum and Mineral Resources. It appears that an executed
original document was not supplied to the Court.
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS FOR THE THREE MONTHS ENDED 31 MARCH 2015 (CONTINUED)
NOTE 7: CONTINGENT LIABILITIES AND CONTINGENT ASSETS
(CONTINUED)
Upon notification of the judgment the Group took various steps
to protect its ability to continue to operate the mine at Sukari.
These included lodging a formal appeal before the Supreme
Administrative Court on 26 November 2012. In addition, in
conjunction with the formal appeal the Group applied to the Supreme
Administrative Court to suspend the initial decision until such
time as the court was able to consider and rule on the merits of
the appeal. On 20 March 2013 the Court upheld this application thus
suspending the initial decision and providing assurance that normal
operations would be able to continue whilst the appeal process was
under way.
EMRA lodged its own appeal in relation to this matter on 27
November 2012, the day after the Company's appeal was lodged,
supporting the Group's view in this matter. Furthermore, in late
December 2012, the Minister of Petroleum lodged a supporting appeal
and shortly thereafter publicly indicated that, in his view, the
terms of the Concession Agreement were fair and that the
"exploitation" lease was valid. The Minister of Petroleum also
expressed support for the investment and expertise that Centamin
brings to the country. The Company believes this demonstrates the
government's commitment to our investment at Sukari and the desire
to stimulate further investment in the Egyptian mining
industry.
The Company does not yet know when the appeal will conclude,
although it is aware of the potential for the process in Egypt to
be lengthy. The Company has taken extensive legal advice on the
merits of its appeal from a number of leading Egyptian law firms
who have confirmed that the proper steps were followed with regard
to the grant of the 160km(2) lease. It therefore remains of the
view that the appeal is based on strong legal grounds and will
ultimately be successful. In the event that the appellate court
fails to be persuaded of the merits of the case put forward by the
Group, the operations at Sukari may be adversely effected to the
extent that the Group's operation exceeds the exploitation lease
area of 3km(2) referred to in the original court decision.
The Company remains confident that normal operations at Sukari
will be maintained whilst the appeal case is heard
Contingent Assets
There were no contingent assets at period-end (31 March 2015:
nil; 31 December 2014: nil).
NOTE 8: ISSUED CAPITAL
Fully Paid Ordinary Shares Three Months Ended Year Ended
31 March 2015 31 December 2014
(Unaudited) (Audited)
Number US$'000 Number US$'000
Balance at beginning of the
period 1,152,107,984 661,573 1,101,397,381 612,463
Issue of shares (1) - - 50,710,603 48,218
Own shares acquired during
the period - - - (1,743)
Transfer from share options
reserve - - - 2,635
Balance at end of the period 1,152,107,984 661,573 1,152,107,984 661,573
------------- ------- -------------- --------
(1) Relates to the ordinary shares that were admitted to trading
as consideration for the acquisition of Ampella Mining Limited.
Fully paid ordinary shares carry one vote per share and carry
the right to dividends.
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS FOR THE THREE MONTHS ENDED 31 MARCH 2015 (CONTINUED)
NOTE 9: RELATED PARTY TRANSACTIONS
The related party transactions for the three months ended 30
September 2014 are summarised below:
- Salaries, superannuation contributions, bonuses, consulting
and Directors' fees paid to Directors during the three months ended
31 March 2015 amounted to US$618,661 (31 March 2014:
US$662,155).
- Mr J El-Raghy is a Director and shareholder of El-Raghy
Kriewaldt Pty Ltd ("ELK"), which provides office premises to the
Company in Australia. All dealings with ELK are in the ordinary
course of business and on normal terms and conditions. Rent paid to
ELK during the three months ended 31 March 2015 amounted to
US$11,653 (31 March 2014: US$13,483).
NOTE 10: EARNINGS PER SHARE
Basic earnings per share are calculated using the weighted
average number of shares outstanding. Diluted earnings per share
are calculated using the treasury stock method. In order to
determine diluted earnings per share, the treasury stock method
assumes that any proceeds from the exercise of dilutive stock
options and warrants would be used to repurchase common shares at
the average market price during the period, with the incremental
number of shares being included in the denominator of the diluted
earnings per share calculation. The diluted earnings per share
calculation excludes any potential conversion of options and
warrants that would increase earnings per share.
Three Months Ended
31 March
(Unaudited)
2015 2014
Cents Per Cents Per
Share Share
Basic earnings per share 2.50 1.87
------------ -------------
Diluted earnings per share 2.48 1.86
------------ -------------
Basic earnings per share
The earnings and weighted average number of ordinary shares used
in the calculation of basic earnings per share are as follows:
Three Months Ended
31 March
(Unaudited)
2015 2014
US$'000 US$'000
Earnings used in the calculation of basic
EPS 28,566 20,606
------------- ----------
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS FOR THE THREE MONTHS ENDED 31 MARCH 2015 (CONTINUED)
NOTE 10: EARNINGS PER SHARE (CONTINUED)
Three Months Ended
31 March
(Unaudited)
2015 2014
No. No.
Weighted average number of ordinary shares
for the purpose of basic EPS 1,142,286,601 1,100,981,149
------------------ ---------------
Diluted earnings per share
The earnings and weighted average number of ordinary shares used
in the calculation of diluted earnings per share are as
follows:
Three Months Ended
31 March
(Unaudited)
2015 2014
US$'000 US$'000
Earnings used in the calculation of diluted
EPS 20,593 20,606
------------------- --------------
Three Months Ended
31 March
(Unaudited)
2015 2014
No. No.
Weighted average number of ordinary shares
for the purpose of basic EPS 1,142,286,601 1,100,981,149
Shares deemed to be issued for no consideration
in respect of employee options 9,668,331 8,954,166
------------------- -----------------
Weighted average number of ordinary shares
used in the calculation of diluted EPS 1,151,954,932 1,109,935,315
------------------- -----------------
NOTE 11: PROPERTY, PLANT AND EQUIPMENT
Three Months
Ended 31
March Land Mine
2015 Office and Plant Mining Development Stripping Capital
(Unaudited) equipment buildings and equipment equipment properties Asset WIP Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Cost
Balance at 31
December
2014 5,383 1,142 565,811 220,654 228,192 - 121,252 1,142,434
Additions 2 - 2 - - - 8,033 8,037
Transfers 3 - 678 9,446 221 - (10,348) -
----------- ----------- -------------- ----------- ------------- ---------- --------- ---------
Balance at 31
March 2015 5,388 1,142 566,491 230,100 228,413 - 118,937 1,150,471
----------- ----------- -------------- ----------- ------------- ---------- --------- ---------
Accumulated
depreciation
Balance at 31
December
2014 (4,254) (177) (67,744) (71,798) (69,497) - - (213,470)
Depreciation
and
amortisation (140) (2) (7,070) (7,593) (9,679) - - (24,484)
----------- ----------- -------------- ----------- ------------- ---------- --------- ---------
Balance at 31
March 2015 (4,394) (179) (74,814) (79,391) (79,176) - - (237,954)
----------- ----------- -------------- ----------- ------------- ---------- --------- ---------
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS FOR THE THREE MONTHS ENDED 31 MARCH 2015 (CONTINUED)
NOTE 11: PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Year Ended 31
December 2014
(Audited)
Cost
Balance at 31
December 2013 4,625 171 284,902 178,374 182,974 - 426,461 1,077,507
Additions 17 - 8 - 6,979 - 61,252 68,256
Decrease in
rehabilitation
asset - - - - (5,161) - - (5,161)
Acquisition
of subsidiary 1,080 1,131 814 1,224 - - 3 4,252
Disposals (571) (160) (724) (391) - - (574) (2,420)
Transfers 232 - 280,811 41,447 43,400 - (365,890) -
-------- ------ ---------- ---------- ---------- ---- ---------- ----------
Balance at 31
December 2014 5,383 1,142 565,811 220,654 228,192 - 121,252 1,142,434
-------- ------ ---------- ---------- ---------- ---- ---------- ----------
Accumulated
depreciation
Balance at 31
December 2013 (3,051) (23) (42,747) (46,326) (34,774) - - (126,921)
Acquisition
of subsidiary (765) (146) (649) (1,224) - - - (2,784)
Depreciation
and amortisation (730) (8) (24,456) (24,373) (34,723) - - (84,290)
Disposals 292 - 108 125 - - - 525
-------- ------ ---------- ---------- ---------- ---- ---------- ----------
Balance at 31
December 2014 (4,254) (177) (67,744) (71,798) (69,497) - - (213,470)
-------- ------ ---------- ---------- ---------- ---- ---------- ----------
Net book value
As at 31 December
2014 1,129 965 498,067 148,856 158,695 - 121,252 928,964
-------- ------ ---------- ---------- ---------- ---- ---------- ----------
As at 31 March
2015 994 963 491,677 150,709 149,237 - 118,937 912,517
-------- ------ ---------- ---------- ---------- ---- ---------- ----------
NOTE 12: EXPLORATION AND EVALUATION ASSETS
Three Months Year Ended
Ended 31 December
31 March 2014
2015
(Unaudited) (Audited)
US$'000 US$'000
Balance at the beginning of the period 123,999 59,849
Expenditure for the period 8,591 28,841
Acquisition of Ampella Mining Limited - 37,637
Impairment of exploration and evaluation asset - (2,328)
------------ ------------
Balance at the end of the period 132,590 123,999
------------ ------------
The exploration and evaluation asset relates to the drilling,
geological exploration and sampling of potential ore reserves.
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS FOR THE THREE MONTHS ENDED 31 MARCH 2015 (CONTINUED)
NOTE 13: AVAILABLE-FOR-SALE FINANCIAL ASSETS
The unrealised losses on available-for-sale investments
recognised in other comprehensive income were as follows:
Three Months Ended
31 March
(Unaudited)
2014 2014
US$'000 US$'000
Profit /(Loss) on fair value of investment -
other comprehensive income 136 -
------------ ----------
The available for sale financial asset at period-end relates to
a 11.34% (2014 : 11.34%) equity interest in NYO, a listed public
company as well as a 1.6% interest in KEFI, a listed public
company.
As a result of the prolonged decline in the fair value in the
prior year of the investment in Nyota, the prior period devaluation
had been recognised as an impairment loss in the Statement of
Comprehensive Income as follows. A reversal has been recognised in
the current period in the Statement of Comprehensive Income:
Three Months Ended
31 March
(Unaudited)
2015 2014
US$'000 US$'000
Reversal of Impairment loss / (Impairment loss) 327 (322)
----------- -----------
NOTE 14: SHARE BASED PAYMENTS
No share based payments were awarded or granted to Employees
during the third quarter.
NOTE 15: FINANCIAL INSTRUMENTS' FAIR VALUE DISCLOSURES
The Group has no financial instruments with fair values that are
determined by reference to significant unobservable inputs, i.e.
those that would be classified as level 3 in the fair value
hierarchy, nor have there been any transfers of assets or
liabilities between levels of the fair value hierarchy.
The Group's interest in Nyota Minerals Limited is classified as
an available for sale financial asset (see note 13). The Group
carries its interest in Nyota Minerals Limited at fair value, and
measures its interest using Level 1 unadjusted quoted prices.
The director's consider that the carrying amounts of financial
assets and financial liabilities carried at amortised cost
approximate their amortised cost.
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS FOR THE THREE MONTHS ENDED 31 MARCH 2015 (CONTINUED)
NOTE 16: NOTES TO THE STATEMENTS OF CASH FLOWS
(a) Reconciliation of cash and cash equivalents
For the purpose of the statements of cash flows, cash and cash
equivalents includes cash on hand and at bank and deposits.
Three Months Ended
31 March
(Unaudited)
2015 2014
US$'000 US$'000
Cash and cash equivalents 163,351 111,957
------------ ----------
(b) Reconciliation of profit for the period to cash flows from
operating activities
Three Months Ended
31 March
(Unaudited)
2015 2014
US$'000 US$'000
Profit for the period 28,566 20,593
Add/(less) non-cash items:
Depreciation / amortisation of property, plant
and equipment 24,484 13,809
(Decrease) / increase in provisions 1,034 1,112
Stock write off 1 -
Foreign exchange rate gain, net (281) (401)
Share of loss in associate - -
Reversal of Impairment / (Impairment) of available-for-sale
financial assets (327) 322
Share based payments 715 598
Changes in working capital during the period
:
Decrease in trade and other receivables 114 4,058
Decrease in inventories 361 6,666
Decrease 334 409
Increase in trade and other payables 1,704 (19,196)
------------ ------------
Cash flows generated from operating activities 56,705 27,970
------------ ------------
(c) Non-cash financing and investing activities
There have been no non-cash financing and investing activities
during the current period quarter.
During the prior period quarter, 38,151,563 ordinary shares
valued at US$36.8 million were issued to the shareholders of
Ampella Mining Limited as consideration for 76% interest in the
Batie West permits.
NOTE 18: SUBSEQUENT EVENTS
Other than the above, there has not arisen in the interval
between the end of the financial period and the date of this report
any item, transaction or event of a material and unusual nature
likely in the opinion of the Directors of the Company to affect
significantly the operations of the company, the results of those
operations, or the state of affairs of the Company in subsequent
financial periods.
The accompanying Form 52 109FS Certification of interim filings
are published, inter alia, for the purposes, of discharging the
Company's obligations arising in connection with the listing of its
shares on the Toronto Stock Exchange.
NON-GAAP FINANCIAL MEASURES
Three non-GAAP financial measures are used in this report:
1) EBITDA: "EBITDA" is a non-GAAP financial measure, which
excludes the following from profit before tax:
-- Finance costs;
-- Finance income; and
-- Depreciation and amortisation.
Management believes that EBITDA is a valuable indicator of the
Group's ability to generate liquidity by producing operating cash
flow to fund working capital needs and fund capital expenditures.
EBITDA is also frequently used by investors and analysts for
valuation purposes whereby EBITDA is multiplied by a factor or
"EBITDA multiple" that is based on an observed or inferred
relationship between EBITDA and market values to determine the
approximate total enterprise value of a company. EBITDA is intended
to provide additional information to investors and analysts and
does not have any standardized definition under IFRS and should not
be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. EBITDA excludes the
impact of cash costs and income of financing activities and taxes,
and therefore is not necessarily indicative of operating profit or
cash flow from operations as determined under IFRS. Other companies
may calculate EBITDA differently. The following table provides a
reconciliation of EBITDA to profit for the year attributable to the
Company.
Reconciliation of profit before tax to EBITDA:
Quarter ended Quarter ended Quarter ended Quarter ended
31 March 31 March 31 March 31 March
2015 2015 2014 2014
Before Exceptional Including Before Exceptional Including
items Exceptional items Exceptional
items(1) items(1)
------------------- -------------------- -------------- -------------------- --------------
US$'000 US$'000 US$'000 US$'000
------------------- -------------------- -------------- -------------------- --------------
Profit before
tax 42,513 28,566 35,016 20,593
------------------- -------------------- -------------- -------------------- --------------
Finance income (62) (62) (137) (137)
------------------- -------------------- -------------- -------------------- --------------
Depreciation
and amortisation 24,469 24,469 13,809 13,809
------------------- -------------------- -------------- -------------------- --------------
EBITDA 66,920 52,973 48,687 34,265
------------------- -------------------- -------------- -------------------- --------------
(1) Profit before tax, Depreciation and amortisation and EBITDA
includes an exceptional provision to reflect the removal of fuel
subsidies (refer to Note 4 of the Financial Statements for further
details).
2) Cash cost and all in sustaining costs per ounce calculation:
"Cash cost and AISC are non-GAAP financial measures. Cash cost of
production per ounce is a measure of the average cost of producing
an ounce of gold, calculated by dividing the operating costs in a
period by the total gold production over the same period. Operating
costs represent total operating costs less administrative expenses,
royalties, depreciation and amortisation. Management uses this
measure internally to better assess performance trends for the
Company as a whole. The Company believes that, in addition to
conventional measures prepared in accordance with GAAP, certain
investors use such non-GAAP information to evaluate the Company's
performance and ability to generate cash flow. The Company believes
that these measures provide an alternative reflection of the
Group's performance for the current period and are an alternative
indication of its expected performance in future periods. Cash cost
is intended to provide additional information, does not have any
standardised meaning prescribed by GAAP and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. This measure is not
necessarily indicative of operating profit or cash flow from
operations as determined under GAAP. Other companies may calculate
these measures differently.
During June 2013 the World Gold Council (WGC), an industry body,
published a Guidance Note on 'all in sustaining costs' metric,
which gold mining companies can use to supplement their overall
non-GAAP disclosure. AISC is an extension of the existing 'cash
cost' metric and incorporates all costs related to sustaining
production and in particular recognising the sustaining capital
expenditure associated with developing and maintaining gold mines.
In addition, this metric includes the cost associated with
developing and maintaining gold mines. In addition, this metric
includes the cost associated with corporate office structures that
support these operations, the community and rehabilitation costs
attendant with responsible mining and any exploration and
evaluation costs associated with sustaining current operations.
AISC US$/oz is arrived at by dividing the dollar value of the sum
of these cost metrics, by the ounces of gold sold.
Reconciliation of Cash Cost per Ounce:
Quarter Quarter Quarter Quarter
ended ended ended ended
31 March 31 March 31 March 31 March
2015 2015 2014 2014
Before Including Before Including
Exceptional Exceptional Exceptional Exceptional
items items(1) items items(1)
------------------------- ----------- ------------- ------------- ------------- -------------
Mine production
costs (Note 4) (US$'000) 64,585 77,874 42,762 55,644
------------------------- ----------- ------------- ------------- ------------- -------------
Less: Refinery and
transport (US$'000) (324) (324) (375) (375)
------------------------- ----------- ------------- ------------- ------------- -------------
Cash cost of production (US$'000) 64,261 77,550 42,387 55,269
------------------------- ----------- ------------- ------------- ------------- -------------
Gold Produced -
Total (oz) 108,233 108,233 74,241 74,241
------------------------- ----------- ------------- ------------- ------------- -------------
Cash cost per ounce (US$/oz) 594 717 571 744
------------------------- ----------- ------------- ------------- ------------- -------------
Reconciliation of All in Sustaining Costs per Ounce:
Quarter Quarter Quarter Quarter
ended ended ended ended
31 March 31 March 31 March 31 March
2015 2015 2014 2014
Before Including Before Including
Exceptional Exceptional Exceptional Exceptional
items items(1) items items
------------------------------ ------------- ------------------- ------------- ------------- -------------
Mine production costs(2)
(Note 4) (US$'000) 64,585 77,874
------------------------------ ------------- ------------------- ------------- ------------- -------------
Royalties (US$'000) 4,055 4,055
------------------------------ ------------- ------------------- -------------
Corporate and administration
costs (US$'000) 3,099 3,099
------------------------------ ------------- ------------------- -------------
Rehabilitation costs (US$'000) 90 90
------------------------------ ------------- ------------------- -------------
Underground development (US$'000) 8,028 8,028
------------------------------ ------------- ------------------- -------------
Other sustaining
capital expenditure (US$'000) 9 9
------------------------------ ------------- ------------------- -------------
By-product credit (US$'000) (247) (247)
------------------------------ ------------- ------------------- -------------
All in Sustaining
costs (US$'000) 79,619 92,908
------------------------------ ------------- ------------------- -------------
Gold Produced - Total (oz) 108,233 108,233
------------------------------ ------------- ------------------- -------------
All in Sustaining
costs per ounce (US$/oz) 736 858 NR NR
------------------------------ ------------- ------------------- ------------- ------------- -------------
(1) Mine production costs, Cash costs, All in Sustaining costs,
Cash cost per ounce, and All in Sustaining costs per ounce includes
an exceptional provision against prepayments recorded since Q4 2012
to reflect the removal of fuel subsidies (refer to Note 4 of the
Financial Statements for further details).
(2) Includes Refinery and transport.
3) Cash and cash equivalents, Bullion on hand, Gold Sales
Receivables and Available-for-sale Financial Assets: This is a
non-GAAP financial measure any other companies may calculate these
measures differently.
Reconciliation to cash and cash equivalents, bullion on hand,
gold sales receivables and available-for-sale financial assets:
Quarter ended Quarter ended
31 March 31 March 2014
2015
----------------------------------------- -------------- ---------------
US$'000 US$'000
----------------------------------------- -------------- ---------------
Cash and cash equivalents (Note 16) 163,351 111,957
----------------------------------------- -------------- ---------------
Bullion on hand (valued at the year-end
spot price) 9,090 5,500
----------------------------------------- -------------- ---------------
Gold Sales Receivable 22,896 19,727
----------------------------------------- -------------- ---------------
Available-for-sale financial assets
(Note 13) 497 627
----------------------------------------- -------------- ---------------
Cash, Bullion, Gold Sales Receivables
and Available-for-sale Financial
Assets 195,834 137,811
----------------------------------------- -------------- ---------------
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This document contains "forward-looking information" which may
include, but is not limited to, statements with respect to the
future financial or operating performance of Centamin plc
('Centamin' or 'the Company'), its subsidiaries (together 'the
Group'), affiliated companies, its projects, the future price of
gold, the estimation of mineral reserves and mineral resources, the
realization of mineral reserve and resource estimates, the timing
and amount of estimated future production, revenues, margins, costs
of production, estimates of initial capital, sustaining capital,
operating and exploration expenditures, costs and timing of the
development of new deposits, costs and timing of future
exploration, requirements for additional capital, foreign exchange
risks, governmental regulation of mining operations and exploration
operations, timing and receipt of approvals, consents and permits
under applicable mineral legislation, environmental risks, title
disputes or claims, limitations of insurance coverage and
regulatory matters. Often, but not always, forward-looking
statements can be identified by the use of words such as "plans",
"expects", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "targets", "aims", "anticipates" or
"believes" or variations (including negative variations) of such
words and phrases, or may be identified by statements to the effect
that certain actions, events or results "may", "could", "would",
"should", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and a variety of material factors, many of which are
beyond the Company's control which may cause the actual results,
performance or achievements of Centamin, its subsidiaries and
affiliated companies to be materially different from any future
results, performance or achievements expressed or implied by the
forward-looking statements. Readers are cautioned that
forward-looking statements may not be appropriate for other
purposes than outlined in this document. Such factors include,
among others, future price of gold; general business, economic,
competitive, political and social uncertainties; the actual results
of current exploration and development activities; conclusions of
economic evaluations and studies; fluctuations in the value of the
U.S. dollar relative to the local currencies in the jurisdictions
of the Company's key projects; changes in project parameters as
plans continue to be refined; possible variations of ore grade or
projected recovery rates; accidents, labour disputes or slow-downs
and other risks of the mining industry; climatic conditions;
political instability, insurrection or war, civil unrest or armed
assault; labour force availability and turnover; delays in
obtaining financing or governmental approvals or in the completion
of exploration and development activities; as well as those factors
referred to in the section entitled "Risks and Uncertainties"
section of the Management discussion & analysis filed on SEDAR.
The reader is also cautioned that the foregoing list of factors is
not exhausted of the factors that may affect the Company's
forward-looking statements.
Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results to
differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are made as of the date
of this document and, except as required by applicable law, the
Company disclaims any obligation to update any forward-looking
statements, whether as a result of new information, future events
or results or otherwise. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements.
QUALIFIED PERSON AND QUALITY CONTROL
Information in this report which relates to exploration,
geology, sampling and drilling is based on information compiled by
geologist Mr Richard Osman who is a full time employee of the
Company, and is a member of the Australasian Institute of Mining
and Metallurgy with more than five years' experience in the fields
of activity being reported on, and is a 'Competent Person' for this
purpose and is a "Qualified Person" as defined in "National
Instrument 43-101 of the Canadian Securities Administrators".
Refer to the technical report entitled "Mineral Resource and
Reserve Estimate for the Sukari Gold Project, Egypt" dated 30
January 2014 and filed on SEDAR at www.sedar.com, for further
discussion of the extent to which the estimate of mineral
resources/reserves may be materially affected by any known
environmental, permitting, legal, title, taxation, socio-political,
or other relevant issues.
-------------------------------------------End of
Announcement------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
QRFDLLFFEEFLBBV
Centamin (LSE:CEY)
Historical Stock Chart
From Mar 2024 to Apr 2024
Centamin (LSE:CEY)
Historical Stock Chart
From Apr 2023 to Apr 2024