31st Jul 2019 09:40
(Alliance News) - Egyptian gold miner Centamin PLC on Wednesday boosted its interim payout, while it also sees production rising over the next two years.
Centamin is paying a 4.0 US cent dividend for the six months to June, from 2.5 cents the year before. The firm has now passed the USD500 million mark in total shareholder returns since dividends began in 2014.
This represents a 60% year-on-year rise in the interim dividend. The 2018 interim had been a 25% increase year-on-year.
Production in the first half was 234,096 ounces, as reported earlier in July, up 8% on the year before. Gold sales fell 2%, however, to 221,129 ounces, at an average price 1% lower on the year before.
Guidance for 2019 as a whole has been maintained at 490,000 ounces to 520,000 ounces. In 2020 and 2021, early guidance is for 510,000 ounces to 540,000 ounces, but this excludes potential changes in a number of factors, such as underground grade changes and open pit improvements.
Centamin on Wednesday posted revenue of USD288.1 million, 3% lower on the year before, with pretax profit declining 26% to USD59.6 million.
Earnings before interest, tax, depreciation, and amortisation declined 10% to USD117.1 million.
"Six months into our tenth year of commercial production, Centamin continues to make good progress delivering on its corporate strategy. The company is a high margin gold producer, delivering reliable stakeholder returns through strong free cash flow generation," said Chief Executive Andrew Pardey.
"The board's decision to increase the interim dividend was based on the company's strong financial position, assessment of near and medium-term capital allocation and confidence in future cash flow generation."
Centamin's only producing mine is Sukari in Egypt's Nubian desert. The open pit did well in the half, Centamin said, while underground operations also improved. Overall, it was a "solid" operating performance in the period.
Shares were 7.5% higher on Wednesday morning in London at 131.05p each.
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Centamin PLC