TIDMCEY
RNS Number : 8703Y
Centamin PLC
19 January 2022
19 January 2022
Centamin plc
("Centamin", "Group" or "the Company")
LSE: CEY / TSX: CEE
QUARTERLY Report
for the three months ended 31 December 2021
MARTIN HORGAN, CEO, commented : "The final quarter delivered
what was a highly successful 2021, resulting in Centamin delivering
annual gold production and costs at the midpoint of our guidance.
2021 has been characterised by solid delivery against our stated
plans and completion of the Sukari Life of Asset study, confirming
the high-quality and long life of the mine, in addition to
identifying significant upside growth opportunities. Excellent
progress was made against our key capital projects as we continue
to invest in the future of our assets. We continued to improve our
safety performance, beating our annual targets, as we strive to
achieve a zero-harm workplace.
We have commenced 2022 with confidence and excitement and look
forward to delivering on our clear roadmap to growing and unlocking
further value from Sukari and our exploration portfolio, as
outlined at the capital markets event on 8 December 2021."
HIGHLIGHTS
2021 guidance delivered
-- Strong safety performance: Q4 Lost Time Injury Frequency Rate
("LTIFR") of 0.31 per one million site-based hours worked; FY LTIFR
of 0.46, 28% better than the annual target of 0.65 as the Company
strives to create a zero-harm workplace
-- Annual gold production delivered in line with guidance
(400,000-430,000 ounces): Gold production of 107,549 ounces ("oz")
for the three months to 31 December 2021 ("Q4"), totalling 415,370
oz for the twelve months of 2021 ("FY") and at the midpoint of
guidance
-- Strong revenue generation as well as elevated gold sales
receivables: Q4 revenue of US$183 million, generated from gold
sales of 99,936 oz at an average realised gold price of US$1,828/oz
sold; FY revenue of US$733 million, generated from gold sales of
407,252 oz at an average realised gold price of US$1,797/oz
sold
-- Annual costs delivered in line with guidance: Q4 cash costs
of US$972/oz produced and all-in sustaining costs ("AISC") of
US$1,256/oz sold; FY cash costs of US$859/oz produced and all-in
sustaining costs ("AISC") of US$1,211/oz sold were delivered at the
midpoint of annual guidance (Cash costs: US$800-900/oz produced;
AISC: US$1,150-1,250/oz sold)
-- Excellent progress on essential capital projects : Q4 capital
expenditure ("capex") of US$86 million; FY capex of US$233 million,
exceeding the annual guidance of US$225 million due to the
waste-stripping outperformance
-- Exploration activities on schedule : Q4 exploration spend of
US$6 million advancing the Doropo and ABC projects in Côte
d'Ivoire; FY exploration spend was US$14 million and US$3 million
below the annual guidance
-- Strong balance sheet with no debt and no hedging : Cash and
liquid assets of US$257 million, as at 31 December 2021
-- No material impacts due to COVID-19: Full COVID-19 protocols
remain in place, and supply chains and gold shipments have not been
materially impacted
-- The Company will publish its full year 2021 financial results
and propose the final dividend in mid-March 2021.
OUTLOOK
2022 guidance unchanged
-- Gold production of 430,000 to 460,000 oz
-- Cash costs of US$900-1,000/oz produced
-- AISC of US$1,275-1,425/oz sold
-- Capex of US$215 million, including US$25 million of deferred
solar and paste-fill plant construction expenditure from 2021
-- Exploration expenditure is expected to be US$25 million,
predominantly focussed on the Doropo Pre-Feasibility Study
(scheduled for completion in H2 2022), ABC fieldwork and drill
testing, and commencing exploration on the Egyptian Eastern Desert
3,000km(2) highly prospective landholding.
RESULTS SUMMARY
Q4 2021 Q4 2020 % <DELTA> FY 2021 FY 2020 % <DELTA>
============================== ======== ======== ========== ======== ======== ==========
SAFETY
LTIFR (1m hours) 0.31 0.89 (65%) 0.46 0.84 (45%)
===============================
OPEN PIT
Total material mined (kt) 30,397 21,324 43% 110,222 79,774 38%
Ore mined (kt) 2,683 3,553 (24%) 12,391 15,656 (21%)
Ore grade mined (g/t Au) 0.93 0.74 26% 0.86 0.97 (11%)
===============================
UNDERGROUND
Ore mined (kt) 145 165 (12%) 739 625 18%
Ore grade mined (g/t Au) 4.97 3.66 36% 4.95 4.99 (1%)
=============================== ========
PROCESSING
Ore processed (kt) 3,210 2,911 10% 11,916 11,913 0%
Feed grade (g/t Au) 1.11 0.86 29% 1.18 1.35 (12%)
Gold recovery (%) 87.0 88.6 (2%) 88.6 87.8 1%
Gold production (oz) 107,549 67,996 58% 415,370 452,320 (8%)
===============================
COST & SALES
Gold sold (oz) 99,936 79,535 26% 407,252 468,681 (13%)
Cash costs (US$/oz produced) 972 1,080 (10%) 859 719 20%
AISC (US$/oz sold) 1,256 1,613 (22%) 1,211 1,036 17%
Realised gold price (US$/oz) 1,828 1,887 (3%) 1,797 1,766 2%
Revenue (US$m) 183.0 150.3 22% 733.3 828.7 (12%)
CAPEX (US$m) 86.1 47.9 80% 233.0 138.4 68%
------------------------------- -------- -------- ---------- -------- -------- ----------
WEBCAST AND CONFERENCE CALL
The Company will host a webcast and conference call today,
Wednesday, 19 January at 08.30 GMT to discuss the results, followed
by an opportunity to ask questions.
Webcast link :
https://www.investis-live.com/centamin/61d46777b81c471200d87831/tnye
Dial-in telephone numbers :
United Kingdom (and all other locations) +44 (0) 203 936 2999
United States +1 646 664 1960
Participation access code: 432466
HEALTH AND SAFETY
Operational safety has been a key focus across the Group.
Prioritised management oversight and empowering employees to be
safety leaders has resulted in an improved safety performance,
beating our annual targets. In Q4, there was one lost time injury
("LTI") (FY: five) therefore resulting in a lost time injury
frequency rate ("LTIFR") of 0.31 per 1,000,000 site-based hours
worked (FY: 0.46), representing a 65% improvement compared to the
corresponding quarter in 2020 ("YoY"). The total recordable injury
frequency rate ("TRIFR") for Q4 was 1.57 per one million site-based
hours worked (FY: 3.01), a 79% improvement YoY.
Throughout 2021 Centamin experienced no material sales or supply
chain disruptions due to COVID-19 at Sukari or the exploration
projects in West Africa. Full COVID-19 protocols remain in
place.
Sukari Gold mine, egypt
(Q4 2021 vs Q4 2020)
Production
Sukari gold production for the quarter was 107,549 oz, a 58%
improvement YoY, due to mining higher grade from the open pit and
underground.
Open Pit Mining
Total material moved (waste and ore) of 30.4Mt (FY: 110.2Mt), a
43% increase YoY, driven by scheduled increased material movement
and improved operating efficiencies and productivities.
Total open pit waste material mined for the quarter was 27.7Mt
(FY: 97.8Mt), a 56% increase YoY, driven by the successful
execution of the accelerated waste-stripping programme, improving
the long-term flexibility and stability of the open pit. The strip
ratio for the quarter was 10.3:1 (waste:ore) (FY: 7.9:1).
Open pit ore mining in Q4 continued to focus on the Stage 5
North and Stage 4 West areas. Total open pit ore mined for the
quarter was 2.7Mt (FY: 12.4Mt), a 24% reduction YoY, at an average
mined grade of 0.93 grams of gold per tonne ("g/t Au") (FY: 0.86
g/t Au), a 26% improvement YoY, driven by scheduled higher grades
delivered from Stage 4 West.
Underground Mining
Total material mined (waste and ore) was 205kt (FY: 1.1Mt), a
29% reduction YoY. Total ore mined was 145kt (FY: 739kt) at an
average combined (stoping and development) grade of 4.97g/t Au (FY:
4.95 g/t). This represented a 12% reduction in ore tonnes YoY and a
36% improvement in grade YoY. Tonnes mined were below schedule due
to issues driven by contractor staffing levels impacted by COVID-19
travel restrictions. This was partially offset by improved mining
flexibility resulting in better than scheduled mined grades.
The underground ore split was 86 kt of ore mined from stopes, at
an average grade of 6.46g/t Au, and 59kt of ore mined from
development, at an average grade of 2.79g/t Au.
The Company is on track to complete an assessment of the
underground operating model imminently, including an independent
contractor-mining tender process. The independently run process
involved assessing several competitive contractor proposals and a
cost-risk benefit analysis of both contractor-mining and
owner-operator mining the underground operations.
Processing
The plant processed 3.2Mt of ore (FY: 11.9Mt), a 10% increase
YoY, at an average feed grade of 1.11 g/t Au (FY: 1.18 g/t), a 29%
improvement YoY.
The metallurgical gold recovery rate was 87.0% for the quarter
(FY:88.6%), a 2% reduction YoY, reflecting mill feed contribution
from low-grade stockpiles in the quarter. The focus on improving
processing productivity and efficiencies through the plant upgrades
resulted in better than scheduled annualised 2021 metallurgical
recoveries.
During the quarter, the low-grade stockpiles were drawn down
from 18.9Mt to 18.6Mt at 0.46g/t Au.
Capital Projects
Total capex in Q4 was US$86 million (FY: US$233m), which was an
80% increase YoY. Excellent progress was made in the quarter on key
capital projects. The tailing storage facilities (TSF1 and TSF2),
underground development and the waste stripping programmes were
progressed ahead of schedule. The project development and
construction of the solar project and paste fill plan both remained
largely on track and scheduled for commissioning in Q3 and Q4
2022respectively although the slight delays in spend have resulted
in US$25 million of capex deferred from 2021 to 2022.Solar project
activities completed in the quarter included foundations for the
battery storage facility, MV cable installation for the solar panel
network and trenching for the LV cable installation. The paste fill
plant earthworks were completed in the quarter.
In Q4, surface exploration on the 160km(2) Sukari Mining
Concession commenced with a prioritised 10,000m drilling programme,
targeting potential satellite deposits to the Sukari processing
facility. The programme is near completion and assay results are
expected in Q1 2022.
SALES AND COSTS
Gold sales for the quarter were 99,936 oz (FY: 407,252 oz), a
26% improvement YoY. The average realised gold price for the
quarter was US$1,828/oz (FY: US$1,797/oz), down 3% YoY. Revenues
generated of US$183 million (FY: US$733m), increased by 22% YoY,
driven by higher gold sales and marginally offset by lower realised
gold price. At the end of the quarter, there was US$20 million gold
bullion on hand due to the shipment of the final pour being after
31 December 2021.
Total cash costs of production were US$104.6 million for the
quarter (FY: US$356.9m), a 42% increase YoY, with lower underground
costs partially offsetting higher fuel prices and increased open
pit costs due to more material moved. Unit cash costs of production
were US$972/oz produced (FY: US$859/oz), a 10% reduction YoY.
Total all-in sustaining costs ("AISC") were US$125.5 million for
the quarter (FY: US$493.1m), a 2% reduction in YoY, as the open pit
contractor waste-stripping programme outperformed. Unit AISC of
US$1,256/oz sold (FY: US$1,211/oz), a 22% reduction in YoY costs,
reflecting lower costs complimented by higher gold sales.
EXPLORATION PROJECTS
Total exploration expensed in Q4 was US$6.4 million, a 170%
increase YoY, including the below key activities:
-- Doropo Project (Côte d'Ivoire) - US$5.8m spend - work was
focussed on the PFS during the quarter with 22,862 metres ("m") of
RC completed as part of the infill drilling campaign and a further
7,329m of core drilling dedicated to the metallurgical and resource
infill drilling programmes. By the end of the period, the RC infill
programme at the Main Cluster of deposits was 65% complete with an
anticipated completion during Q1 2022. In parallel, the
Environmental and Social Impact Assessment ("ESIA") work continued
with stakeholder engagement, preliminary land use mapping, and
detailed scopes of work defined for technical field studies that
are scheduled to commence in Q1 2022.
-- ABC Project (Côte d'Ivoire) - US$0.4m spend - soil sampling
has been completed over all three permits (1,200km(2)), which has
delineated numerous new gold-in-soil anomalies. Soil anomalism has
been confirmed southwards along the Lolosso structural corridor
(which hosts the current Kona Mineral Resource[1]) within the new
Windou permit over a strike length of 25km. Several other soil
anomalies have also been delineated by soil sampling within the
project permits. These are now being followed-up with an extensive
trenching programme. Drill testing will follow during 2022.
-- Eastern Desert Exploration (Egypt) - programme preparations
continued with logistical support preparations and remote data
analysis and exploration programme planning completed.
-- Batie West Project (Burkina Faso) - asset held for sale -
discussions are ongoing with the potential interested parties and
the Burkinabe government, as we seek a mutually beneficial
outcome.
FINANCIAL POSITION
Free Cash Flow
Under the terms of the Sukari Concession Agreement, the Egyptian
government earned US$5.2 million in royalty payments (FY: US$21.7m)
and received US$14.0 million in profit share payments during the
quarter (FY: US$75.2m). After Sukari profit share distribution,
Group exploration expenditure and corporate investing activities,
Group free cash flow for the quarter was negative US$29 million
(FY: negative US$5m), reflecting the peak growth capex quarter and
impacted by US$20 million in unsold gold bullion on hand as at 31
December 2021.
Balance Sheet
Centamin is in a strong financial position, with net cash and
liquid assets to US$257 million as at 31 December 2021. The Company
remains unhedged and debt-free.
About Centamin
Centamin is an established gold producer, with premium listings
on both 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 circa 5 million ounces of gold, and today has a
projected mine life of 12 years.
Through its large portfolio of exploration assets in Egypt and
West Africa, Centamin is advancing an active pipeline of future
growth prospects, including the Doropo project in Côte d'Ivoire,
and over 3,000km(2) of highly prospective exploration ground in the
Egypt's Arabian Nubian Shield.
Centamin practices responsible mining activities, recognising
its responsibility to not only deliver operational and financial
performance but to 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 Buchanan
Alexandra Barter-Carse, Corporate Communications Bobby Morse/Ariadna Peretz/James
+44 (0) 7700 713 738 Husband
investor@centaminplc.com + 44 (0) 20 7466 5000
centamin@buchanan.uk.com
NOTES
Guidance
The Company actively monitors the developments of the COVID-19
pandemic and guidance may be impacted if the workforce or operation
are disrupted.
Financials
Financial data points included within this report are
unaudited.
Non-GAAP measures
This statement includes certain financial performance measures
which are non-GAAP measures. These include Cash costs of
production, AISC, Cash and liquid assets, and Free cash flow.
Management believes these measures provide valuable additional
information for users of the financial statements to understand the
underlying trading performance. Definitions and explanation of the
measures used along with reconciliation to the nearest IFRS
measures are detailed in the Company's 2020 Annual Report
https://www.centamin.com/investors/results-reports/ .
Exploration expenditure
Exploration expensed covers all exploration activities excluding
the Sukari Concession Agreement.
Royalties
Royalties are accrued and paid six months in arrears.
Cash and liquid assets
Cash and liquid assets include cash, bullion on hand and gold
sales receivables.
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 the ongoing 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, uncertainty and disruption
caused by the outbreak 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
[1] 72Mt at 0.93g/t for 2.16Moz in Inferred Resources
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
DRLMZGMMNRRGZZM
(END) Dow Jones Newswires
January 19, 2022 02:00 ET (07:00 GMT)
Centamin (LSE:CEY)
Gráfica de Acción Histórica
De Jun 2024 a Jul 2024
Centamin (LSE:CEY)
Gráfica de Acción Histórica
De Jul 2023 a Jul 2024