30th Jan 2020 09:33
(Alliance News) - Egyptian gold producer Centamin PLC on Thursday reported a revenue increase, helped by the rising price of the precious metal, and added that is "highly confident" in its strategy after rebuffing an approach by Canada's Endeavour Mining Corp.
In 2019, revenue was 9.1% higher year-on-year at USD658.1 million from USD603.2 million.
Gold sales were down 3.0% year-on-year in 2019, at 470,020 ounces, though averaged realised prices climbed 10% to USD1,399 an ounces from USD1,267.
The company declared a final dividend of 6.0 cents, taking its total payout to 10.0 cents, an 81% jump from 5.5 US cents in 2018.
Centamin earlier in January reported gold production from the Sukari gold mine in Egypt rose 1.7% in 2019 to 480,528 ounces from 472,418.
This was however 2.0% lower than Centamin's prior guidance of 490,000 ounces guidance.
In the fourth quarter alone, gold production was 51% higher quarter-on-quarter at 148,387 ounces.
Interim Chief Executive Ross Jerrard said: "Centamin has undertaken a number of initiatives in 2019 to improve the consistency at, and increase cash flow from, the Sukari mine, which have contributed to a strong fourth quarter performance. Consistent operational delivery against the mine plan remains the key objective."
Centamin recently became the target of a takeover bid. Canada's Endeavour Mining at the start of December made an all-share merger proposal that valued Centamin at GBP1.47 billion, giving Centamin shareholders 47% of the combined firm.
Earlier this month, however, Endeavour abandoned tie-up talks. It said Centamin had not sought an extension to a January 14 offer deadline.
Centamin said on Thursday: "The company received an unsolicited approach from Endeavour Mining. Following a comprehensive and reciprocal due diligence process, the board unanimously concluded that the possible offer materially undervalued Centamin and its prospects. The board notes that Endeavour withdrew its possible offer."
The company's leadership team also has undergone changes, Jerrard, former chief financial officer was made interim CEO, following the departure of Andrew Pardey.
Centamin added on Thursday that the search for a permanent CEO is "well advanced".
Centamin has picked Jim Rutherford as a non-executive director. He will become deputy non-executive chair after the 2020 annual general meeting, when incumbent Gordon Edward Haslam departs. Rutherford will take over as non-executive chair by the end of 2020, when Josef El-Raghy departs.
Shares in the company were 4.2% higher at 134.10 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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