Centamin posts 26% improvement in H1 earnings

London-listed gold miner Centamin has improved its earnings before interest, taxes, depreciation and amortisation (Ebitda) for six consecutive months, and declared an interim dividend of $0.02 apiece for the six months ended June 30.

The distribution, which amounts to $23-million, was supported by a better operating performance and cost management, as well as an improved gold price, compared with the first half of 2022.

In its results statement for the year, Centamin notes that its Ebitda increased by 26% year-on-year to $193-million in the period under review, resulting in earnings a share of $0.78 apiece and net profit after tax attributable to shareholders of $91-million.

The company produced 220 561 oz of gold from its Sukari mine, in Egypt, for the six months under review, putting it in good stead to meet yearly guidance of between 450 000 oz and 480 000 oz.

Output was also higher than the 203 898 oz of gold produced in the first half of 2022.

Centamin ended the interim period with $28-million worth of gold inventory that can be shipped, considering the average realised gold price of $1 936/oz achieved in the six months under review.

The company has a strong and flexible balance sheet with available cash and liquid assets of $161-million as of June 30, after paying the 2022 final dividend of $29-million. Its total liquidity, including undrawn credit facilities, amounts to $311-million.

On the operations front, Centamin completed a prefeasibility study on the Doropo gold project, in Côte d'Ivoire, in the period under review. The study confirmed that the project has a post-tax net present value of $497-million and an internal rate of return of 41% at a $1 900/oz gold price.

A definitive feasibility study on the project will be completed in mid-2024.

Centamin also published its decarbonisation roadmap, which stipulates its interim target of reducing Scope 1 and 2 emissions by 30% by 2030. To this end, Centamin has solar expansion study work underway.

Meanwhile, Centamin has started drilling on the highly prospective 3 000 km² Eastern Desert Exploration (EDX) blocks, with 3 100 m having been completed. The overall 10 000 m drill programme in this area focuses on seven priority targets, which are all adjacent to Sukari.

The company has also agreed, in principle, a mining framework with the Egyptian government which creates a clear regulatory structure for the development of new mining projects on Centamin’s EDX blocks.