Centamin PLC Announces Full Year 2023 Results

Rhea-AI Summary

Centamin reports positive financial and operational results for FY 2023, with increased gold production, reduced costs, and improved EBITDA. The company achieved zero lost time injuries at Sukari Gold Mine, reduced GHG emissions, and enhanced safety metrics. Despite inflationary pressures, AISC decreased by 14%. The company's balance sheet remains strong, with increased free cash flow and a final dividend declared. Centamin outlines future growth plans, including exploration projects and cost-saving initiatives.

Positive

• Increased gold production of 450,058 ounces in 2023, a 2% rise from 2022.
• AISC decreased by 14% to US$1,205/oz sold, beating guidance.
• Adjusted EBITDA increased by 25% to US$398 million with a 45% margin.
• Annual capex of US$204 million was below guidance due to cost savings.
• Group free cash flow improved to US$49 million from -US$18 million in 2022.
• Final dividend declared at 2.0 US cents per share, totaling US$23 million.
• Guidance for 2024 includes gold production range of 470,000 to 500,000 oz per annum.
• Cost guidance for 2024 includes cash cost range of US$700-850/oz produced.
• Key milestones for 2024 include completion of Doropo Project DFS and Sukari grid connection project.
• Webcast presentation scheduled on March 21, 2024, to discuss results and future plans.

Negative

• None.

FULL YEAR 2023 RESULTS

PERTH, AUSTRALIA / ACCESSWIRE / 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)	% Δ	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:

Centamin plc 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

View the original press release on accesswire.com

FAQ

What was Centamin's gold production in 2023?

Centamin's gold production in 2023 was 450,058 ounces.

By how much did AISC decrease in 2023?

AISC decreased by 14% to US$1,205/oz sold in 2023.

What was the adjusted EBITDA for Centamin in 2023?

Centamin's adjusted EBITDA increased by 25% to US$398 million in 2023.

What was the final dividend declared by Centamin for full year 2023?

Centamin declared a final dividend of 2.0 US cents per share for full year 2023.

What is Centamin's gold production guidance range for 2024?

Centamin's gold production guidance range for 2024 is 470,000 to 500,000 oz per annum.