Centamin PLC Announces Full Year 2023 Results
FULL YEAR 2023 RESULTS
PERTH, March 21, 2024 - ("Centamin" or "the Company") (LSE:CEY)(TSX:CEE) Audited results for the twelve months ended 31 December 2023
MARTIN HORGAN, CEO, COMMENTED: "2023 is the third consecutive year that we have safely delivered on our production guidance, reflecting the operational improvements and flexibility from our three-year reinvestment plan. Despite ongoing local inflationary pressures, we reduced our AISC by $194/oz versus 2022, beating the lower end of our guidance range. With the reinvestment programme ending in 2024, Sukari has been repositioned towards consistently delivering 500,000 ounces per annum over the long-term, with further growth and cost saving opportunities identified.
Looking ahead to 2024, the grid connection project will continue our recent success in taking costs out of the business whilst delivering into our near-term decarbonisation targets of reducing our scope 1 and 2 emissions by 30% by 2030. We will continue to advance the organic growth opportunities within our portfolio of assets by aggressively following up on the recent exploration success with our Eastern Desert Exploration drilling programme ("EDX") and proceed towards an investment decision at Doropo in Cote d'Ivoire following the publication of the DFS later this year."
HIGHLIGHTS
| ? | 9.5 million hours worked at the Sukari Gold Mine ("Sukari") with zero lost time injuries ("LTI"). The Group lost time injury frequency rate ("LTIFR") of 0.08 was an 83% improvement on the 3-year trailing average. Total recordable injury frequency rate ("TRIFR") of 2.83, a 24% improvement on the 3-year trailing average. |
| ? | Scope 1 and 2 Greenhouse Gas Emissions "GHG" reduced by 7% since 2021 base year, driven primarily by the 21.5 million litre reduction in diesel consumption during the first full year of solar power generation. |
| ? | Gold production of 450,058 ounces ("oz"), a 2% increase on 2022, delivered in line with 2023 guidance. |
| ? | All-in sustaining costs ("AISC") of US$1,205/oz sold, a 14% improvement on 2022, beating 2023 guidance. |
| ? | Increased adjusted EBITDA by 25% to US$398 million, at a 45% margin, up from 40% in 2022. |
| ? | Annual capital expenditure ("capex") of US$204 million below guidance of US$272 million: due to cost savings, lower capitalisation of costs and changes to equipment rebuild schedules. |
| ? | Sukari cash contribution of US$121m, including US$45 million in cost recovery and US$112 million of profit share, net of US$36 million capex funded from corporate. Government profit share and royalties totalled US$139 million. |
| ? | Group free cash flow of US$49 million, up from -US$18 million in 2022. |
| ? | Robust balance sheet with cash and liquid assets of US$153 million, as at 31 December 2023, and total liquidity of US$303 million including the undrawn US$150 million sustainability-linked revolving credit facility. |
| ? | Final dividend of 2.0 US cents per share, equating to US$23 million, subject to approval at the annual general meeting on 21 May 2024. Total dividend for full year 2023 of 4.0 US cents per share or US$46 million. |
GROUP FINANCIAL SUMMARY
| FY 2023 | FY 2022(2) | % ? | H2-2023 | H1-2023 | |
| Gold sold (oz) | 456,625 | 438,638 | 4% | 237,271 | 219,354 |
| Cash costs (US$/oz produced) | 875 | 913 | -4% | 901 | 849 |
| AISC (US$/oz sold) | 1,205 | 1,399 | -14% | 1,184 | 1,228 |
| Realised gold price (US$/oz) | 1,948 | 1,794 | 9% | 1,963 | 1,936 |
| Revenue (US$000) | 891,262 | 788,424 | 13% | 465,650 | 425,612 |
| Adjusted EBITDA (US$000) | 398,175 | 319,015 | 25% | 205,250 | 192,925 |
| Profit before tax (US$000) | 195,140 | 171,001 | 14% | 80,336 | 114,804 |
| Profit after tax attrib. to the parent (US$000) (1) | 92,284 | 72,490 | 27% | 34,916 | 57,368 |
| Basic EPS (US cents) (1) | 7.97 | 6.29 | 27% | 3.02 | 4.96 |
| Gross capex (US$'000) | 204,111 | 283,543 | -28% | 95,850 | 108,261 |
| Operating cash flow(US$'000)(2) | 353,600 | 292,524 | 21% | 181,834 | 171,767 |
| Adjusted free cash flow(US$'000) (2) | 48,995 | -17,551 | 379% | 29,633 | 19,362 |
1. The profit after tax attributable to the parent and the Basic EPS for H1 2023 was updated after the reconciliation of the profit attributable to the Non-Controlling Interest (due to EMRA) for both H1 2023 and H2 2023 was completed at year end.
2. The comparatives in the Consolidated Statement of Cash Flows for the year ended 31 December 2022 have been restated to reflect an increase of cash generated from operating activities of $2.5m, interest paid of $1.9m and a reduction of the effect of foreign exchange rate changes of $0.6m, resulting in the net restatement of the Operating cash flow and the adjusted free cash flow figures by an increase of US$0.6m
2024 OUTLOOK
Guidance unchanged
| ? | Gold production guidance range of 470,000 to 500,000 oz per annum with a minor weighting towards H2 | ||
| ? | Cost guidance: | ||
| ? | Cash cost guidance range of US$700-850/oz produced | ||
| ? | AISC guidance range of US$1,200-1,350/oz sold | ||
| ? | Guidance reflects a range of diesel prices from 75-90 US cents per litre | ||
| ? | Adjusted capex guidance is $215m, including: | ||
| ? | US$112m of sustaining capex | ||
| ? | US$103m of non-sustaining capex, of which US$58m is allocated to growth projects that are funded from Centamin treasury under the Sukari Concession Agreement and cost recovered over three years | ||
| ? | Adjusted capex excludes US$91m of sustaining deferred stripping reclassified from operating costs | ||
2024 KEY MILESTONES
| ? | Doropo Project, Cote d'Ivoire, completed DFS (mid-2024) |
| ? | Accelerated waste-stripping programme completion (mid-2024) |
| ? | EDX exploration update (H2 2024) |
| ? | Sukari 50MW grid connection project construction (H2 2024) |
| ? | Completion of Solar Expansion Study (H2 2024) |
WEBCAST PRESENTATION
The Company will host a webcast presentation today, Thursday 21 March, at 08.30 GMT, to discuss the results with investors and analysts, followed by an opportunity to ask questions. Please find below the required participation details. A recording will be made available on the Company website.
To join the webcast: https://www.lsegissuerservices.com/spark/Centamin/events/0995e3c5-b8c1-46ed-ac98-de2fa708e250
Please allow a few minutes to register.
PRINT-FRIENDLY VERSION of the results: www.centamin.com/investors/results-reports/
ABOUT CENTAMIN
Centamin is an established gold producer, with premium listings on the London Stock Exchange and Toronto Stock Exchange. 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 5.7 million ounces of gold, and today has a projected mine life to 2034.
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 over 3,000km2 of highly prospective exploration ground in Egypt's Arabian Nubian Shield.
Centamin practices responsible mining activities, recognising its responsibility to deliver operational and financial performance and create lasting mutual benefit for all stakeholders through good corporate citizenship.
FOR MORE INFORMATION please visit the website www.centamin.com or contact:
| Michael Stoner, Head of Corporate investor@centaminplc.com | FTI Consulting Ben Brewerton / Sara Powell / Nick Hennis +442037271000 centamin@fticonsulting.com |
For the full report and accounts please refer to the website:
www.centamin.com/investors/results-reports/
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SOURCE: Centamin Plc
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