CENTAMIN PLC ORD - CELTF STOCK NEWS

Centamin has announced positive developments in its West African exploration portfolio. The Board approved a pre-feasibility study (PFS) for the promising Doropo Project, which shows a post-tax NPV5% of US$234 million and an internal rate of return (IRR) of 21% at a US$1,450/oz gold price. Additionally, a further US$14 million investment will advance the project. The ABC Project is set for US$3 million in exploration funding, while the Batie West Project shows potential but does not currently meet Centamin's investment criteria.

Centamin held its Annual General Meeting (AGM) on May 11, 2021, where all resolutions were passed with over 96% in favor. Approximately 66% of the eligible voting shares, totaling 1,155,955,384, were cast. Key resolutions included the adoption of annual accounts and a final dividend of 3 US cents per share. Additionally, the re-election of several directors was confirmed, with high approval rates. The auditor, PricewaterhouseCoopers LLP, was appointed, and authorities for capital allotment and market purchases were granted.

Centamin has submitted its 2020 Annual Report and Notice of AGM per FCA regulations. These documents will be accessible at the National Storage Mechanism and Centamin’s website. The 2021 AGM is set for May 11, 2021, but due to ongoing COVID restrictions, in-person attendance will be limited to quorum requirements. Shareholders can vote online or via proxy. A conference call and webcast will also be available for shareholders. The 2020 Annual Report reveals important findings from the previous year, which can be consulted alongside the 22 March 2021 Announcement.

Centamin achieved a robust financial performance for the year ending December 31, 2020, with record revenue of US$829 million, a 54% increase in EBITDA to US$439 million, and a margin of 53%. The company reported a profit before tax of US$315 million and generated free cash flow of US$142 million, up 91%. Cost-saving measures led to a reduction of US$44 million in gross costs. The board proposed a final dividend of 3 US cents per share, totaling US$34.7 million. Centamin retains a strong balance sheet with US$310 million in cash and liquid assets, reflecting solid operational resilience during 2020.

Centamin has proposed a final dividend of 3.0 US cents per share for the six months ending December 31, 2020, totaling US$34.7 million. This will increase the total dividend for 2020 to 9.0 US cents per share, amounting to US$104.0 million. The final dividend is pending approval at the 2021 AGM on May 11, 2021. The company reported robust financials with US$310 million in cash and no debt. For 2021, Centamin aims to recommend a minimum dividend of US$105 million.

Centamin announced plans to unlock its potential by optimizing the Sukari gold mine, enhancing management efficiency, and targeting a US$100 million reduction in gross annual costs by 2024. Production targets are set at 450,000-500,000 ounces annually, with AISC below US$900/oz sold. The company is committed to distributing at least US$100 million in dividends for fiscal years 2020 and 2021, indicating a strong focus on shareholder returns. A life of asset review is underway to align Sukari with industry standards.

Centamin has initiated a cost-effective contract-mining strategy at its Sukari Gold Mine, aiming to enhance operational flexibility. The Company awarded a four-year contract to Capital Drilling for waste stripping, starting January 2021. This is part of a broader plan to facilitate a 120Mt waste stripping program. Centamin retains the right to purchase Capital's equipment post-contract, allowing for fleet maintenance synergies.

Details on the three-year mining schedule and costs are expected at the upcoming capital markets event.