(Alliance News) - Centamin PLC on Monday said its profit jumped more than 80% in 2020, with the gold miner also achieving record revenue helped by booming bullion prices.
In addition, the Sukari gold mine owner outlined a fresh reserves estimate at the Egypt asset. Centamin also backed its 2021 dividend guidance.
In 2020, revenue jumped 27% to USD828.7 million, a company record, from USD652.3 million. Pretax profit soared 82% to GBP315.0 million from GBP173.0 million.
Earnings rose despite output falling. Gold production was down 5.9% to 452,320 ounces from 480,528 ounces. The average realised gold price jumped 26% to USD1,766 per ounce, Centamin said. Gold sales volumes slipped 0.3% to 468,681 ounces.
"Centamin delivered another solid financial performance in 2020, driven primarily by improved commodity pricing, our comprehensive response to Covid-19 and an improvement in operating efficiencies and productivity. I would like to thank our workforce for how they responded to the operating environment in 2020, continuing to deliver results," Chief Executive Officer Martin Horgan said.
"Ultimately, the group generated significant free cash flow, of USD142 million, a 91% increase, making it possible to propose and pay dividends attributable to 2020 of USD104 million further demonstrating Centamin's commitment to delivering returns to our shareholders.
Per share, Centamin's 2020 payout amounted to 9.0 US cents, down 10%. Centamin essentially paid a 10 US cents payout in respect to 2019. Last year, a 6.0 cents final payout was replaced with an interim dividend of the same amount. This was because a final dividend needs shareholder approval, and the onset of the Covid-19 pandemic hit the timing and structure of shareholder meetings.
Looking to 2021, Centamin affirmed its aim of paying USD105 million in dividends. It also backed its 400,000 ounces to 430,000 ounces output forecast. At best, this would be a 4.9% drop from 2020.
Also on Monday, the company announced a new orebody stewardship model alongside its latest mineral reserves estimate at its Sukari mine.
"In 2020, our focus was to ensure that we put the right people and right processes in place to deliver consistent results from Sukari. In line with our focus on sustainable free cash flow, we have now implemented a new orebody stewardship model, built on a disciplined approach to exploration and mine planning," CEO Horgan said.
"Implementing this approach has resulted in an optimised open pit which enhances the value of the open pit while reducing the associated operating risk."
Measured and indicated reserves at Sukari, as of December 31, were 288,000 tonnes, down from 321,000 tonnes at the end of 2019.
Also on Monday, Centamin said it paid USD203.9 million to governments in 2020.
Centamin shares were 1.1% higher at 105.90 pence each in London on Monday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Centamin PLC (CEY)