Centamin PLC Announces Interim Results

Rhea-AI Summary

Centamin PLC has released its interim results for H1 2024, highlighting improved financial performance and operational progress. Key highlights include:

- Gold production of 224,738 oz, a 2% YoY increase
- Cash costs of US$977/oz produced and AISC of US$1,382/oz sold
- Group free cash flow of US$42.7 million, a 121% YoY improvement
- Positive DFS for the Doropo Gold Project with NPV8% of US$426 million
- Robust balance sheet with US$200 million in cash and liquid assets
- Interim dividend of 2.25 US cents per share

The company maintains its full-year 2024 guidance for gold production (470,000-500,000 oz) and adjusted capex (US$215m). Centamin is advancing organic growth opportunities, including the Doropo project and Eastern Desert Exploration.

Positive

• Gold production increased 2% YoY to 224,738 oz
• Group free cash flow improved 121% YoY to US$42.7 million
• Positive DFS for Doropo Gold Project with NPV8% of US$426 million and 34% IRR
• Robust balance sheet with US$200 million in cash and liquid assets
• Interim dividend of 2.25 US cents per share, exceeding minimum policy with 53% payout ratio

Negative

• H1 2024 cash costs increased 15% YoY to US$977/oz produced
• H1 2024 AISC increased 13% YoY to US$1,382/oz sold
• Gold sales decreased 5% YoY to 209,269 oz
• Basic EPS decreased 9% YoY to 7.19 US cents
• LTIFR increased 113% YoY to 0.32 per one million hours worked

PERTH, AUSTRALIA / ACCESSWIRE / July 25, 2024 / INTERIM REPORT

for the six months ended 30 June 2024 ("H1 2024")

MARTIN HORGAN, CEO, COMMENTED: "Our focus on operating performance has enabled us to take advantage of stronger gold prices to deliver improved EBITDA and a significant increase in free cash flow. Looking ahead to H2 2024, the commencement of the grid connection project will build on our recent success in taking costs out of the business, with commissioning due in H1 2025.

At the same time, we are advancing the organic growth opportunities within our portfolio. The completion of the DFS at Doropo shows a very robust project; we are now well positioned to apply for a mining licence which we expect should be granted by the end of 2024, ahead of a final investment decision. Meanwhile, we are aggressively following up on the recent success at our Eastern Desert Exploration ("EDX") project with the continued drill out of the Little Sukari discovery."

H1 2024 HIGHLIGHTS

●	The Group lost time injury frequency rate ("LTIFR") was 0.32 per one million hours worked and the total recordable injury frequency rate ("TRIFR") was 1.45 per one million hours worked
●	Gold production of 224,738 ounces ("oz") a 2% year on year ("YoY") increase, and gold sales of 209,269 oz from the Sukari Gold Mine ("Sukari")
●	Q2 2024 cash costs and All-in sustaining costs ("AISC") improved significantly on Q1 2024 performance. H1 2024 Cash costs of US$977/oz produced, and AISC of US$1,382/oz sold
●	Capital expenditure ("capex") of US$89.5 million, including raising tailings storage facility ("TSF") 2, open pit and underground fleet purchases, equipment rebuilds, underground ventilation upgrades and waste mining
●	Group free cash flow1 of US$42.7 million, a 121% YoY improvement from US$19.4 million in H1 2023
●	Positive definitive feasibility study ("DFS") at the Doropo Gold Project, with a post-tax net present value of US$426 million using an 8% discount rate ("NPV8%") and US$1,900/oz gold price2, an internal rate of return ("IRR") of 34% IRR and a 2.1 year payback. Link to 18 July 2024 announcement (here)
●	Robust balance sheet: cash and liquid assets of US$200 million, as at 30 June 2024 and total liquidity of US$350 million including the undrawn US$150 million sustainability-linked revolving credit facility
●	Interim dividend of 2.25 US cents per share, equating to US$26 million, exceeding the minimum policy of distributing 30% of cash flow available for dividends3 with a 53% payout ratio

GROUP FINANCIAL SUMMARY⁴

	Quarter on quarter ("QoQ") comparative			Year on Year ("YoY") comparative
US$'000 unless stated	Q2 2024	Q1 2024	% Δ	H1 2024	H1 2023	% Δ
Gold produced (oz)	119,917	104,821	14%	224,738	220,562	2%
Gold sold (oz)	116,776	92,494	26%	209,269	219,354	-5%
Cash costs (US$/oz produced)	879	1,088	-19%	977	849	15%
AISC (US$/oz sold)1	1,273	1,519	-16%	1,382	1,228	13%
Average realised gold price (US$/oz)	2,341	2,062	14%	2,218	1,936	15%
Revenue	274,111	190,984	44%	465,095	425,612	9%
Adjusted EBITDA1	n/a	n/a	-	210,777	192,925	9%
Profit before tax	n/a	n/a	-	117,149	114,804	2%
Basic EPS (US cents)	n/a	n/a	-	7.19	7.86	-9%
Capital expenditure	43,413	46,040	-6%	89,453	108,261	-17%
Operating cash flow	n/a	n/a	-	203,560	171,767	19%
Adjusted free cash flow1	32,400	10,345	213%	42,743	21,900	95%

1 Refer to Non-GAAP measures end note

2 100% project basis, NPV calculated as of the commencement of construction and excludes all pre-construction costs

3 See page 8 for interim dividend calculation

4.The Group publishes profitability performance metrics on a bi-annual basis

GROUP OPERATIONAL SUMMARY

			Quarter on quarter ("QoQ") comparative		Year on Year ("YoY") comparative
	Q2 2024	Q1 2024		% Δ	H1 2024	H1 2023	% Δ
SAFETY
LTIFR (1m hours)	0.33	0.32		3%	0.32	0.15	113%
TRIFR (1m hours)	1.31	1.28		2%	1.45	2.94	-51%
OPERATIONAL
Open pit material mined (kt)	32,312	31,772		2%	64,084	65,301	-2%
Open pit ore mined (kt)	7,465	6,231		20%	13,696	6,882	99%
Open pit ore mined grade (g/t Au)	0.67	0.63		6%	0.65	0.88	-26%
Underground ore mined (kt)	278	230		21%	508	458	11%
Underground ore mined grade (g/t Au)	3.33	3.2		4%	3.27	4.21	-22%
Ore processed (kt)	3,339	3,066		9%	6,405	6,082	5%
Feed grade (g/t Au)	1.19	1.12		6%	1.15	1.23	-7%
Gold recovery (%)	87.8	87.66		0%	87.7	88.5	-1%
Gold produced (oz)	119,917	104,821		14%	224,738	220,562	2%

FULL YEAR 2024 OUTLOOK -Guidance Unchanged

Production
●	Gold production guidance range of 470,000 to 500,000 oz per annum weighted towards H2, as previously guided
Costs
●	Cash cost guidance range of US$700-850/oz produced:
	o H1 2024 cash cost performance is tracking slightly above the guidance range as a result of the cost of moving some 2.4 million tonnes that was planned to be mined as waste during the period being reclassified as ore for later treatment through the dump leach facility. The waste to ore conversion resulted in a lower strip ratio in Stage 7. As a result of the lower strip ratio the waste stripping costs that were expected to be allocated to sustaining capex have been reported in cash costs during the period.
●	AISC guidance range of US$1,200-1,350/oz sold:
	o The H1 2024 AISC of US$1,382/oz is calculated on a per ounce sold basis and was therefore impacted by the 15,469 oz difference between production and sales resulting from the timing of gold sales.
●	The cost guidance reflects a range of diesel prices from 75-90 US cents per litre. The average realised price in H1 2024 was 80 US cents per litre
Capex
●	Adjusted capex guidance of US$215m is maintained, including: o US$112m of sustaining capex o US$103m of non-sustaining capex, of which US$58m is allocated to growth projects that are funded from Centamin treasury and cost recovered over three years o Adjusted capex guidance for the full year excluded US$91m of sustaining deferred stripping reclassified from operating costs as per IFRIC 20. As a result of the aforementioned reduction in the strip ratio, these costs were reported in cash costs and were not capitalised as originally planned during H1 2024. We now budget US$45m of sustaining deferred stripping in H2 2024.

KEY DELIVERABLES

●	Doropo Project DFS, Cote d'Ivoire (Completed) - Link to 18 July 2024 announcement (here)
●	Accelerated waste-stripping programme (Completed) - Link to 18 July 2024 announcement (here)
●	Eastern Desert Exploration ("EDX") drilling update (H2 2024)
●	Completion of Solar Expansion Study (H2 2024)
●	Sukari 50MW grid connection project completion (H1 2025)
●	Doropo final investment decision (H1 2025)

WEBCAST PRESENTATION

The Company will host a webcast presentation today, Thursday, 25 July 2024, at 08.30 BST to discuss the results, followed by an opportunity to ask questions.

Webcast link: https://www.lsegissuerservices.com/spark/Centamin/events/80411d15-3a8c-475a-8162-3bbcf0a2ac0e

PRINT-FRIENDLY VERSION of the announcement: www.centamin.com/media/companynews.

ABOUT CENTAMIN

Centamin is an established gold producer, with premium listings on the London Stock Exchange and the 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

ENDNOTES

Guidance

The Company actively monitors the global geopolitical uncertainties and macroeconomics, such as global inflation, and guidance may be impacted if the supply chain, workforce or operations are disrupted.

Non-GAAP measures

This statement includes certain financial performance measures which are not GAAP measures as defined under International Financial Reporting Standards (IFRS). These include EBITDA and adjusted EBITDA, Cash costs of production, AISC, Cash and liquid assets, Free cash flow and adjusted Free cash flow. Management believes these measures provide valuable additional information for users of the financial statements to understand the underlying trading performance. An explanation of the measures used along with reconciliation to the nearest IFRS measures is provided in the Financial Review.

Profit after-tax attributable to the owners of the parent ("shareholders")

Centamin's profit after the profit share split with the Egyptian Mineral Resource Authority ("EMRA"), the Company's Egyptian government partner.

Royalties

Royalties are accrued and paid six months in arrears.

Liquidity

Liquidity is defined as the sum of cash and cash equivalents and available credit under the Company's revolving credit facility.

Movements in inventory

Movement in inventory on ounces produced is the movement in mining stockpiles and ore in circuit while the movement in inventory on ounces sold is the net movement in mining stockpiles, ore in circuit and gold in safe inventory.

Gold produced

Gold produced is gold poured and does not include gold-in-circuit at period end.

FORWARD-LOOKING STATEMENTS

This announcement (including information incorporated by reference) contains "forward-looking statements" and "forward-looking information" under applicable securities laws (collectively, "forward-looking statements"), including statements with respect to future financial or operating performance. Such statements include "future-oriented financial information" or "financial outlook" with respect to prospective financial performance, financial position, EBITDA, cash flows and other financial metrics that are based on assumptions about future economic conditions and courses of action. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "believes", "expects", "expected", "budgeted", "forecasts" and "anticipates" and include production outlook, operating schedules, production profiles, expansion and expansion plans, efficiency gains, production and cost guidance, capital expenditure outlook, exploration spend and other mine plans. Although Centamin believes that the expectations reflected in such forward-looking statements are reasonable, Centamin can give no assurance that such expectations will prove to be correct. Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of Centamin about future events and are therefore subject to known and unknown risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. In addition, there are a number of factors that could cause actual results, performance, achievements or developments to differ materially from those expressed or implied by such forward-looking statements; the risks and uncertainties associated with direct or indirect impacts of COVID-19 or other pandemic, general business, economic, competitive, political and social uncertainties; the results of exploration activities and feasibility studies; assumptions in economic evaluations which prove to be inaccurate; currency fluctuations; changes in project parameters; future prices of gold and other metals; possible variations of ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; climatic conditions; political instability; decisions and regulatory changes enacted by governmental authorities; delays in obtaining approvals or financing or completing development or construction activities; and discovery of archaeological ruins. Financial outlook and future-ordinated financial information contained in this news release is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available. Readers are cautioned that any such financial outlook or future-ordinated financial information contained or referenced herein may not be appropriate and should not be used for purposes other than those for which it is disclosed herein. The Company and its management believe that the prospective financial information has been prepared on a reasonable basis, reflecting management's best estimates and judgments at the date hereof, and represent, to the best of management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. 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 information or statements, particularly in light of the current economic climate and the significant volatility, the risks and uncertainties associated with the direct and indirect impacts of COVID-19. Forward-looking statements contained herein are made as of the date of this announcement and the Company disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Accordingly, readers should not place undue reliance on forward-looking statements.

LEI: 213800PDI9G7OUKLPV84

Company No: 109180

CEO OPERATIONAL REVIEW

(H1 2024 vs H1 2023)

I am pleased to report a solid first half of 2024 at Sukari, whilst continuing to advance numerous projects and work streams that will unlock the full potential of Centamin's portfolio. We remain on track to deliver against our 2024 guidance and all key capital projects are progressing.

HEALTH & SAFETY

We maintained our focus on the protection of our workforce and the local communities that we work in. Our safety performance continues to be strong, while noting that our ultimate ambition is to create a zero-harm workplace.

We had one lost time injury at Sukari (as previously reported in Q1 2024) and two at EDX during H1 2024.

The Group's LTIFR was 0.32 per one million hours worked and we remain focused on meeting our annual target. The Group TRIFR was 1.45 per one million hours worked, a 51% decrease YoY.

SUSTAINABILITY

Centamin published the 2023 Sustainability Report (Link to report here) which was produced in accordance with the GRI Sustainability Reporting Standards ("GRI") 'Core option'; the GRI Mining and Metals Sector Supplement; the Sustainability Accounting Standards Board ("SASB") for the metals and mining industry; and the recommendations of the Task Force on Climate-related Financial Disclosures ("TCFD"). This report also provides a statement of our conformance to the Global Industry Standard on Tailings Management ("GISTM").

CORPORATE

I am delighted to report the promotion of Gustav du Toit to the role of Chief Operating Officer, after two and a half years in the role of General Manager of the Sukari mine where he led the reinvestment programme and the resulting operational reset at Sukari. Gustav's responsibilities will now broaden to include oversight of EDX and the advancement of the Doropo project, following the completion of the positive DFS. Gavin Harris takes on the role of Sukari General Manager, from his previous role as Operations Director and Deputy General Manager. Islam Al Ashker has been promoted to the role of Deputy General Manager. The fact that all three roles have been filled by the promotion of internal candidates demonstrates the depth of talent within the team and the benefit of the employee development programme which looks to identify, develop and promote individuals into leadership positions.

SUKARI GOLD MINE (Egypt)

The team delivered another solid operational performance in H1 2024 and we remain on track to meet the 2024 production guidance.

In the open pit, a total of 64 Mt of material was mined, representing a 2% decrease year-over-year (YoY). Of this, 50 Mt was waste, with 33 Mt mined by the Centamin fleet and the remainder by contractor Capital Ltd. The 120 Mt accelerated waste-stripping programme was completed ahead of schedule, allowing us to retain Capital Ltd to mine up to 10 Mt of waste over the next three months to September 2024. The additional capacity will support the construction of a new dump leach pad, as well as facilitating the early completion of limited waste stripping scheduled for 2025 ahead of the delivery of the new 785C dump trucks. The net result is expected to be an incremental 2 to 3 Mt to the planned total annual volume at Sukari for 2024, equating to a 1-2% increase.

We mined 14 Mt of ore at an average grade of 0.65 g/t Au, a 99% increase in tonnage and a 26% decrease in grade YoY. This change reflects the reclassification of material from Stage 7, which was previously scheduled as waste, to low-grade ore, leading to a reduction in the strip ratio for Stage 7. The majority of the reclassified material was placed on the dump leach with the balance going to stockpiles. The average milled grade from the open pit was 0.97 g/t Au for H1 2024, a 2% decrease YoY.

The underground mine demonstrated the benefits of significant infrastructure and equipment upgrades since transitioning to owner mining, with the final ventilation upgrade completed in Q1 2024. These enhancements resulted in an 11% year-over-year (YoY) increase in ore tonnage mined. Although grades were lower YoY, averaging 3.3 g/t Au, we expect average grades to improve in H2 2024, aligning with our underground reserve grade.

The plant processed 6.4Mt of ore at an average feed grade of 1.15 g/t Au, a 5% increase in tonnes and 7% decrease in grade YoY. There were several key projects during the period, including mill relining and work on the mill motors, all of which were completed successfully with no unplanned disruption to throughput.

The metallurgical gold recovery rate was 87.7%, reflecting a 1% decrease year-over-year (YoY). This was influenced by the processing of oxide ore mined in Stage 7, which negatively impacts recovery rates, in addition to the lower feed grade. The mining of oxide ore is largely complete, and the remaining oxide ore will be blended to minimise its impact on recovery.

DOROPO GOLD PROJECT (Côte d'Ivoire)

On 18 July 2024, we published the results from the Doropo definitive-feasibility study ("DFS"), which demonstrated the economic robustness of the project with a post-tax NPV_8% of US$426 million and an IRR of 34% at US$1,900/oz gold prices. Importantly, it fulfils Centamin's hurdle rate of 15% internal rate of return ("IRR") at the US$1,450/oz gold price used for Mineral Reserve estimation.

The project sits in a well-established mining jurisdiction with a Mineral Reserve estimate of 1.87Moz, supporting a 10-year life of mine averaging a production rate 167,000 ounces per annum at all-in sustaining costs of US$1,047/oz.

Financing options for the project are well advanced, supported by a clear roadmap for early works that will mitigate completion risks. This study underlines our confidence in Doropo's potential to become a commercially viable project, bringing substantial investment and employment opportunities to northeastern Côte d'Ivoire.

The DFS has resulted in a plan with significantly lower execution risk, relative to the PFS, reflecting a reconfiguration of the project to reduce its social impact on local communities. We received regulatory approval of the Environmental and Social Impact Assessment with the receipt of the environmental permit in June 2024. The DFS, together with the environmental permit will form key documents in support of our submission for a mining licence to the Côte d'Ivoire Government. This application is scheduled to be submitted in Q3 2024. Following the award of the mining licence and conclusion of the mining convention, we will then progress to a final investment decision, following which we will provide an update on the project financing.

Of the US$14 million budgeted for Doropo in 2024, US$8.6 million was spent on completion of both the DFS and completing the Environmental and Social Impact Assessment ("ESIA"). There is up to US$6 million identified for early works including starting front-end engineering design ("FEED"), grade control drilling and some limited earthworks. These activities will reduce project delivery risk and potentially expedite construction timelines.

EXPLORATION

Eastern Desert Exploration ("EDX") (Egypt)

At the previously identified targets within the Nugrus block, Little Sukari, and Umm Majal, the exploration team completed detailed mapping and ground-based geophysical surveys, consisting of induced polarization (IP) and magnetic surveys. The second phase of drilling commenced across these targets, which will now include an expanded programme of 20km of core and reverse circulation drilling, building on the successful initial drill campaign as reported (here). In the Um Rus block, follow-up work on soil and rock chip samples from BLEG anomalies has been completed. In the Nadj block, we established a remote camp and successfully concluded the BLEG sampling programme, with the collected samples now being prepared for analysis in overseas laboratories. An update on the EDX drilling programme is expected to be announced in the second half of 2024.

ABC (Côte d'Ivoire)

At ABC, in light of encouraging drill results from neighbouring permits to the north, we undertook a soil sampling programme across the northern portion of the Farako-Nafana permit. This area was previously sampled using termite mounds as the sample medium; however, it was prudent to re-sample using soil geochemistry to ensure accuracy.

Geological interpretation of the soils data is ongoing. If any soil anomalies are identified that require further investigation, we plan to initiate a drill testing programme towards the end of the year, during the dry season. Additionally, there is potential to conduct infill drilling in the Kona Central and South resources.

OUTLOOK

Centamin remains well positioned, and guidance for 2024 remains unchanged.

I would like to commend our workforce for their commitment, professionalism and passion. I would also like to thank our local communities, partners and wider stakeholders for their support and shared vision.

We look forward to a busy second half of news flow, as we continue to deliver on our commitments and progress towards our vision of being a responsible multi-asset, multi-jurisdictional producer.

MARTIN HORGAN

CEO

25 July 2024

CFO FINANCIAL REVIEW

(H1 2024 vs H1 2023)

We are pleased to report material improvements across the majority of our key financial metrics including revenue, EBITDA, profit before tax, operating cash flow and free cash flow.

H1 2024 has delivered strong operating cash flow of US$204 million. This translated into a positive Group free cash flow of US$43 million, after Sukari profit share distributions of US$74 million to our Egyptian partner, EMRA, and US$74 million to Centamin, and US$12 million spent advancing our organic growth pipeline at Doropo (Côte d'Ivoire), EDX (Egypt) and ABC (Côte d'Ivoire).

FINANCIAL PERFORMANCE

Revenues increased YoY by 9% to US$464 million, from annual gold sales of 209,269 ounces, down 5%, at an average realised price of US$2,218/oz, up 15% YoY. Due to timing of gold shipments, a total of 22,381 ounces of unsold gold bullion was held at Sukari as at 30 June 2024, equivalent to US$52 million which has now been sold.

The Group adjusted EBITDA was US$211 million, at a 45% EBITDA margin and up 9% YoY, principally driven by

●	A 15% increase in average realised gold price; but also due to:
●	A 2% decrease in the combined open pit and underground material mined;
●	Lower fuel prices, offset by higher processed volumes, has resulted in a net US$8 million savings against budget; and
●	Offset by a reduction in stripping costs capitalised to the balance sheet during the period (as per IFRIC 20). This was due to material designated as waste in the plan which, upon mining this material, was reclassified as low-grade ore, the strip ratio was reduced accordingly, and as a result, those costs remained as operating costs for the period, except for the relevant portion capitalised as inventory at period end.

Profit before tax increased by 2% to US$117 million, due to:

●		9% increase in revenue, in line with the 15% increase in average realised gold price offset by the 5% decrease in gold ounces sold;
●		a significant increase in finance income due to rising interest rates in both Egypt and the United Kingdom which resulted in a US$1.3 million increase in interest income from funds placed in term-deposit, offset by:
	○	42% increase in other operating costs, predominantly due to
			○	a US$3m increase in corporate costs related to share-based payments and salaries and wages offset by decrease in the cost of consultants;
			○	a US$1m increase in royalties paid; and
			○	a US$6m increase in provisions for obsolete and redundant stock
		○	36% decrease in greenfield exploration and evaluation expenditure, as budgeted; and
		○	10% increase in cost of sales as lower stripping costs were capitalised due to better-than-expected ore to waste conversion.

The above factors together with an increase in EMRA distributions during the period resulted in basic EPS decreasing by 9% to 7.19 US cents.

COST MANAGEMENT

Cash costs of production in H1 2024 were US$220 million, a 17% increase YoY. This is primarily due to lower capitalisation of costs (discussed above), increased output from the underground and higher throughput in the plant. Unit cash costs of production were US$977/oz produced, a 15% increase, driven by the aforementioned cost drivers, partly offset by higher production volumes.

AISC in H1 2024 were US$289 million, a 7% increase YoY, and with lower sales volumes (due to timing of gold shipments) resulting in unit AISC of US$1,382/oz sold, a 13% increase YoY.

STRONG FINANCIAL POSITION

As of 30 June 2024, Centamin had cash and liquid assets of US$200 million, including 22koz of gold inventory waiting to be sold. From a liquidity standpoint, the US$150 million sustainability-linked revolving credit facility remains available and undrawn.

CAPITAL INVESTMENT

H1 2024 gross capital expenditure was US$89 million, including the underground ventilation upgrades, continued contracted waste-stripping programme, new underground and open pit equipment purchases, underground development, open pit equipment rebuilds, and raising TSF2.

Total sustaining capex was US$47 million, and non-sustaining was US$42 million. We had expected a higher capex spend in H1 but due to minor changes in scheduling, this has been moved to H2 2024 and we remain on track to meet 2024 guidance.

INTERIMDIVIDEND

Consistent with the Company's stated commitment to shareholder returns, the Board declares an interim dividend of 2.25 US cents per share (US$26 million) for the six-month period ended 30 June 2024. As per the dividend policy, this distribution is in line with the commitment to return a minimum of 30% of Group free cash flow before growth capex³ to shareholders in cash dividends. In consideration of the below factors, and reflecting the Board's confidence, a total of 53% of H1 2024 Group free cash flow before growth capex will be distributed to shareholders on 27 September 2024:

●	Centamin is in a financially robust position with US$200 million in cash and liquid assets;
●	The US$150 million sustainability linked revolving credit facility remains undrawn as a result of H1 2024 growth capex being funded from internally generated cash flows; and
●	The Company is operationally and financially well positioned for a stronger H2 2024, in line with plan.

The interim dividend is calculated by the following:

		30 June 2024 (Unaudited)
		US$'000
Group free cash flow		42,743
Add back:
Growth capex financed from treasury1		6,446
Cashflow available for dividends		49,189
30% minimum distribution as per dividend policy		(14,757)
Surplus cash flow for discretionary capital allocation2		34,432
Board interim dividend supplement		(11,367)
Total interim dividend declared		26,124

1 Defined as Sukari growth capex funded from Treasury and available for cost-recovery as per the Concession Agreement.

2 Discretionary capital allocation options include future project investment, portfolio optimisation and supplemental shareholder returns

Please refer to the Dividend Declaration announcement and or the website (www.centamin.com/investors/shares-dividends/dividend-information/) for further detail including the interim dividend timetable.

OUTLOOK

Financially, we expect a stronger second half of 2024 driven by higher production volumes. Meanwhile, our focus on cost management means we remain fully focused on managing the bottom line of the business so that we can maximise the value at Sukari whilst delivering growth and diversification alongside stakeholder returns.

ROSS JERRARD

CFO

25 July 2024

PRIMARY STATEMENTS HIGHLIGHTS

	H1 2024 (Unaudited) US$'000	H1 2023 (Unaudited) US$'000	Full Year 2023 (Audited) US$'000
Revenue	465,095	425,612	891,262

Revenue from gold and silver sales for the period increased by 9% year-on-year to US$465 million (2023: US$426 million) with a 15% increase in the year-on-year average realised gold price to US$2,218 per ounce sold (2023: US$1,936 per ounce sold) offset by a 5% decrease in gold ounces sold to 209,269 ounces (2023: 219,354 ounces).

	H1 2024 (Unaudited) US$'000	H1 2023 (Unaudited) US$'000	Full Year 2023 (Audited) US$'000
Cost of sales	(295,091)	(267,801)	(596,836)

Cost of sales represents the cost of mining, processing, refining, transport, site administration, depreciation, amortisation and movement in production inventories. Cost of sales is up 10% year-on-year to US$295 million.

	H1 2024 (Unaudited) US$'000	H1 2023 (Unaudited) US$'000	Full Year 2023 (Audited) US$'000
Dividend paid - non-controlling interest in SGM	(74,000)	(46,000)	(112,000)

Profit share payments during the year are reconciled against SGM's audited financial statements. Any variation between payments made during the year (based on the Company's estimates) and the SGM's audited financial statements, may result in a balance due and payable to EMRA or advances to be offset against future distributions. SGM's 30 June 2023 financial statements have been audited and signed off; the 30 June 2024 financial statements will be audited in due course in line with the agreed timetable.

Certain terms of the Concession Agreement (CA) and amounts in the cost recovery model may also vary depending on interpretation and are therefore subject to continued discussions between EMRA and management which can result in variations in the profit-sharing split between periods. Centamin and EMRA continue working on closing outstanding open audit periods as well as agree on the timing and mechanism of any financing and ultimately the distribution of future proceeds between partners.

Refer to note 1.2.1.2 in the 2023 Annual Report for details of the treatment and disclosure of the EMRA profit share.

CAPITAL EXPENDITURE

The following table provides a breakdown of the total capital expenditure of the Group:

	H1 2024 (Unaudited) US$'000	H1 2023 (Unaudited) US$'000	Full Year 2023 (Audited) US$'000
Underground exploration	3,884	5,368	9,225
Underground mine development	14,962	16,011	32,350
Other sustaining capital expenditure	28,155	28,950	46,241
Total sustaining capital expenditure	47,001	50,329	87,816
Non-sustaining exploration expenditure	-	1,210	2,947
Other non-sustaining capital expenditure(1)	42,452	56,723	113,348
Total gross capital expenditure	89,453	108,262	204,111
Less:
Sustaining element of waste stripping capitalised(2)	-	(10,023)	(843)
Capitalised Right of Use Assets	(14)	(66)	(1,216)
Adjusted capital expenditure	89,439	98,173	202,052

(1) Non-sustaining capital expenditure included the spend on North dump leach pad expansion, tailings storage facility stage lifts and the Capital Waste Stripping. Non-sustaining costs are primarily those costs incurred at 'new operations' and costs related to 'major projects at existing operations' that will materially benefit the operation.

(2) Reclassified from operating expenditure.

EXPLORATION EXPENDITURE

The following table provides a breakdown of the total exploration expenditure of the Group:

	H1 2024 (Unaudited) US$'000	H1 2023 (Unaudited) US$'000	Full Year 2023 (Audited) US$'000
Greenfield exploration
Burkina Faso	-	775	869
Côte d'Ivoire	8,816	15,914	25,226
Egypt - Eastern Desert Exploration	3,255	2,234	5,558
Total greenfield exploration expenditure	12,071	18,923	31,653
Brownfield exploration
Sukari Tenement	3,884	6,578	12,172
Total brownfield exploration expenditure	3,884	6,578	12,172
Total exploration expenditure	15,955	25,501	43,825

Exploration and evaluation expenditure comprises expenditure incurred for exploration activities primarily in Côte d'Ivoire and in the Egypt greenfield permit areas. Greenfield exploration and evaluation costs (excluding Burkina Faso) decreased by US$6 million or 33%, primarily driven by reduced work in Côte d'Ivoire as the Definitive Feasibility Study ("DFS") stage of the Doropo project has now been finalised. Drilling work was however significantly expanded in the new Egypt permit areas hence the 41% or US$0.9 million increase in the exploration costs in that area. The brownfield capitalised exploration costs on the Sukari concession area decreased by US$3 million or 41% year on year due to the decrease in the surface exploration and evaluation work and related activities within the Sukari concession areas.

The spend in Burkina Faso was mainly on key services and other regulatory obligations required to formally exit the country. The in country incorporated entities have now been formally liquidated.

SUBSEQUENT EVENTS

Interim dividend

The Directors have declared an interim dividend of 2.25 US cents per share on Centamin plc ordinary shares (totalling approximately US$26 million). The interim dividend for the half year period ended 30 June 2024 will be paid on 27 September 2024 to shareholders on the register on the Record Date of 30 August 2024.

Other than as noted above, there were no other significant events occurring after the reporting date requiring disclosure in the financial statements.

NON‑GAAP FINANCIAL MEASURES

1) EBITDA AND ADJUSTED EBITDA

EBITDA is a non‑GAAP financial measure, which excludes the following from profit before tax:

·	Finance costs
·	Finance income
·	Depreciation and amortisation

Management considers EBITDA a valuable indicator of the Group's ability to generate liquidity by producing operating cash flow to fund working capital needs and 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 a company's approximate total enterprise value. EBITDA is intended to provide additional information to investors and analysts and does not have any standardised 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 income from 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 also calculate EBITDA differently. The following table provides a reconciliation of EBITDA to profit for the year before tax.

Adjusted EBITDA removes the effect of transactions that are not core to the Group's main operations, like adjustments made to normalise earnings, for example profit on financial assets at fair value through profit or loss, impairments of property, plant and equipment, non-current mining stockpiles and exploration and evaluation assets.

Reconciliation of profit before tax to EBITDA and adjusted EBITDA:

		H1 2024 (Unaudited)	H1 2023 (Unaudited)	Full Year 2023 (Audited)
Profit for the year before tax	US$'000	117,149	114,804	195,140
Finance income	US$'000	(3,126)	(1,791)	(4,127)
Finance costs	US$'000	2,179	1,380	3,526
Depreciation and amortisation	US$'000	93,921	79,022	198,127
EBITDA	US$'000	210,123	193,415	392,666
Add back/(less)(1)	US$'000
Net fair value loss/(gain) on derivative financial instruments	US$'000	654	(490)	5,509
Adjusted EBITDA	US$'000	210,777	192,925	398,175

(1) Adjustments made to normalise earnings for example profit on financial assets at fair value through profit or loss, impairments of property, plant and equipment, non-current mining stockpiles and exploration and evaluation assets.

2) CASH COST OF PRODUCTION PER OUNCE PRODUCED AND SOLD AND ALL-IN SUSTAINING COSTS ("AISC") PER OUNCE SOLD CALCULATION

Cash cost of production 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 sustaining administrative expenses, royalties, depreciation and amortisation. Management uses this measure internally to better assess performance trends for the Company as a whole. Management considers 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 flows. Management considers that these measures provide an alternative reflection of the Group's performance for the current year and are an alternative indication of its expected performance in future periods. Cash cost of production 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.

Reconciliation of cash cost of production per ounce produced:

			H1 2024 (Unaudited)		H1 2023 (Unaudited)		Full Year 2023 (Audited)
Mine production costs (note 2.2)		US$'000		219,407		188,344	412,827
Less: Refinery and transport		US$'000		(737)		(1,182)	(1,871)
Movement in inventory (1)		US$'000		837		(5)	(17,133)
Cash cost of production - gold produced		US$'000		219,507		187,157	393,823
Gold produced - total (oz.)		oz		224,738		220,562	450,058
Cash cost of production per ounce produced		US$/oz		977		849	875

1) The movement in inventory on ounces produced is only the net movement in mining stockpiles and ore in circuit while the movement in ounces sold (in table below) is the net movement in mining stockpiles, ore in circuit and gold in safe inventory.

A reconciliation has been included below to show the cash cost of production metric should gold sold ounces be used as a denominator.

Reconciliation of cash cost of production per ounce sold:

		H1 2024 (Unaudited)	H1 2023 (Unaudited)	Full Year 2023 (Audited)
Mine production costs (note 2.2)	US$'000	219,407	188,344	412,827
Royalties	US$'000	13,931	12,733	26,682
Movement in inventory (1)	US$'000	(9,334)	3,346	(9,536)
Cash cost of production - gold sold	US$'000	224,004	204,423	429,973
Gold sold - total (oz.)	oz	209,269	219,354	456,625
Cash cost of production per ounce sold	US$/oz	1,070	932	942
Movement in inventory
Movement in inventory - cash (above)	US$'000	(9,334)	3,346		(9,536)
Effect of depreciation and amortisation - non-cash	US$'000	27,227	(4,062)		22,855
Movement in inventory - cash & non-cash (note 2.2)	US$'000	17,893	(716)		13,319

(1) The movement in ounces sold is the net movement in mining stockpiles, ore in circuit and gold in safe inventory while the movement in inventory on ounces produced (in table above) is only the net movement in mining stockpiles and ore in circuit while.

Reconciliation of AISC per ounce sold:

				H1 2024 (Unaudited)	H1 2023 (Unaudited)		Full Year 2023 (Audited)
Mine production costs (note 2.2)	US$'000		219,407			188,344		412,827
Movement in inventory	US$'000		(9,334)			3,346		(9,536)
Royalties	US$'000		13,931			12,733		26,682
Sustaining corporate administration costs	US$'000		18,459			14,964		33,110
Rehabilitation provision interest expense unwinding	US$'000		803			668		1,333
Sustaining underground development and exploration	US$'000		18,847			21,379		41,575
Other sustaining capital expenditure	US$'000		28,155			28,950		46,241
By‑product credit	US$'000		(973)			(928)		(1,878)
All‑in sustaining costs (1)	US$'000		289,295			269,456		550,354
Gold sold - total (oz.)	oz		209,269			219,354		456,625
AISC per ounce sold	US$/oz		1,382			1,228		1,205

(1) Includes refinery and transport.

3) CASH AND CASH EQUIVALENTS, BULLION ON HAND AND GOLD AND SILVER SALES DEBTOR AND FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

Management considers 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 and the measure is intended to provide additional information.

Cash and cash equivalents, bullion on hand, gold and silver sales debtor and financial assets at fair value through profit or loss is a non-GAAP financial measure of the available cash and liquid assets at a point in time. Management uses this measure internally to better assess performance trends for the Company as a whole.

This non-GAAP measure 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 cash and cash equivalents as determined under GAAP and other companies may calculate it differently.

Reconciliation to cash and cash equivalents, bullion on hand, gold and silver sales debtor and financial assets at fair value through profit or loss:

			H1 2024 (Unaudited) US$'000		H1 2023 (Unaudited) US$'000	Full Year 2023 (Audited) US$'000
Cash and cash equivalents (note 2.10(a))			109,607		96,231	93,322
Bullion on hand (valued at the period-end spot price)			52,167		28,095	14,261
Gold and silver sales debtor			38,366		33,573	44,917
Derivative instruments at fair value through profit or loss				-	3,028	654
Cash and cash equivalents, bullion on hand, gold and silver sales debtor and financial assets at fair value through profit or loss			200,140		160,927	153,154

The majority of funds have been invested in international rolling short-term fixed interest money market deposits.

4) FREE CASH FLOW AND ADJUSTED FREE CASH FLOW

Free cash flow is a non-GAAP financial measure. Free cash flow is a measure of the available cash after distributions to the Non-Controlling Interest ("NCI") in SGM, being EMRA, that the Group has at its disposal to use for capital reinvestment and to distribute to shareholders of the parent. Free cash flow 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 and other companies may calculate this measure differently.

		H1 2024 (Unaudited) US$'000	H1 2023 (Unaudited) US$'000	Full Year 2023 (Audited) US$'000
Net cash generated from operating activities		203,409	171,767	353,600
Less:
Net cash used in investing activities		(86,666)	(106,405)	(198,768)
Dividend paid - non-controlling interest in SGM		(74,000)	(46,000)	(112,000)
Free cash flow		42,743	19,362	42,832
Add back:
Transactions completed through specific available cash resources (1)		-	2,538	6,163
Adjusted free cash flow		42,743	21,900	48,995

(1) Adjustments made to free cash flow, for example acquisitions and disposals of financial assets at fair value through profit or loss, which are completed through specific allocated available cash reserve

GOVERNANCE

SHARE PLAN AWARDS

Granted 02 May 2024

·	The Company granted 3,348,600 performance share awards over ordinary shares of nil par value to 16 employees of the Group under the Company's shareholder approved Incentive Share Plan. Performance conditions and further details of the scheme can be found in the 2023 Annual Report.
·	The Company granted 2,510,700 restricted cash settled share awards over ordinary shares of nil par value to 92 senior employees across the Group under the Company's shareholder approved Incentive Share Plan. These awards vest annually over a three-year period in equal tranches to participants, subject to the scheme rules and the employee remaining with the Company.

PRINCIPAL RISKS AND UNCERTAINTIES

RISK MANAGEMENT

Centamin recognises that nothing is without risk. We believe a successful and sustainable business requires a robust and proactive risk management framework as its foundation. This is supported by a strong culture of risk awareness, encouraging openness and integrity, alongside a clearly defined appetite for risk. This enables the Company to consider risks and opportunities for more effective decision-making, delivery on our objectives and improve our performance as a responsible mining company. The Board has overall responsibility, supported by the Audit and Risk Committee, for establishing a framework that allows for the review of existing and emerging risks in the context of both opportunities and potential threats that inform the principal risks and uncertainties. These risks and opportunities inform the assessment of the future prospects and long-term viability of the Group, as shown in the Viability Statement of the 2023 Annual Report and are also considered when challenging the strategic objectives of the Company.

2024 continues to provide macroeconomic change exacerbated by geopolitical pressures including the ongoing conflicts in Gaza, the Rea Sea and Ukraine. Whilst as a business we were able to successfully manage the operational considerations these have brought, we have felt the financial pressures as every government, business and individual has globally. The 2023 Annual Report included the latest updates to the principal and emerging risks driven by these pressures.

We continue to feel the ongoing global impact of these increased financial pressures, which we carry on monitoring, and has led to the introduction of additional mitigations and changes to our ongoing strategy for the financially focussed risks. When considering the healthy financial position of the business, including additional measures such as the revolving credit facility, means we feel there is sufficient financial flexibility to meet the Company's current and future financial commitments through 2024.

The Directors confirm that a robust assessment of the principal, new and emerging risks impacting the Company has been undertaken which identified external, strategic and operational risks on a sliding scale depending on the level of influence over which the Company may have on the factors which can impact the risk. For further detail please refer to the Risk Review within the 2023 Annual Report and 2023 Sustainability Report, published on the Company's website:www.centamin.com.

PRINCIPAL RISKS

The principal risks and uncertainties facing the Group remain unchanged from those which are set out in detail within the Strategic Report section of the 2023 Annual Report and can be found on the Company's website (https://www.centamin.com/investors/principal-risks-and-uncertainties/) .

The principal risks are listed below:

External risks

· Geopolitical

· Legal and regulatory compliance

· Litigation

· Global macroeconomic developments

· Gold price

Strategic risks

· Capital allocation and liquidity

· Diversification

· Concession governance and management

· Licence to operate

· People (attract, develop and retain skilled people)

· Stakeholder environmental and social expectations

· Decarbonisation

Operational risks

· Safety, health and wellbeing

· Exploration and project development

· Maximising our geological potential

· Operational performance and planning

EMERGING RISKS

Below we have outlined a list of emerging risks, these remain unchanged from those which are set out within the Strategic Report section of the 2023 Annual Report and website:

· Cyber security

· Infectious disease

· Climate change

DIRECTORS' RESPONSIBILITY STATEMENT

RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE SIX MONTHS ENDED 30 JUNE 2024 FINANCIAL REPORT

The Directors confirm that to the best of their knowledge:

a)	the set of interim condensed consolidated financial statements for the six months ended 30 June 2024 has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' as adopted by the European Union;
b)	the set of interim condensed consolidated financial statements, which has been prepared in accordance with the applicable set of accounting standards, gives a true and fair view of the assets, liabilities, financial position and profit or loss of the issuer, or the undertakings included in the consolidation as a whole as required by DTR 4.2.4;
c)	the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and
d)	the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).

The board of Directors that served during all or part of the six month period ended on 30 June 2024 and their respective responsibilities can be found on pages 84 to 130 of the 2023 annual report and financial statements of Centamin plc. There has been no changes to board of Directors since the approval of the 2023 Annual Report.

By order of the Board,

MARTIN HORGAN CEO 25 July 2024

ROSS JERRARD CFO 25 July 2024

For the full report and accounts please refer to the website: www.centamin.com/media/companynews

-END-

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SOURCE: Centamin PLC

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FAQ

What was Centamin's (CELTF) gold production in H1 2024?

Centamin produced 224,738 ounces of gold in H1 2024, representing a 2% year-on-year increase.

How much free cash flow did Centamin (CELTF) generate in H1 2024?

Centamin generated US$42.7 million in free cash flow during H1 2024, a 121% improvement compared to H1 2023.

What is the NPV8% of Centamin's (CELTF) Doropo Gold Project according to the DFS?

The Definitive Feasibility Study for the Doropo Gold Project shows a post-tax NPV8% of US$426 million, using a gold price of US$1,900/oz.

What is Centamin's (CELTF) interim dividend for H1 2024?

Centamin declared an interim dividend of 2.25 US cents per share for H1 2024, equating to US$26 million with a 53% payout ratio.

What is Centamin's (CELTF) full-year gold production guidance for 2024?

Centamin maintains its full-year 2024 gold production guidance range of 470,000 to 500,000 ounces.