24th Mar 2014 08:54
LONDON (Alliance News) - Centamin PLC Monday said pretax profit fell in 2013 due to a large exceptional cost, but that increased revenues and production meant pretax profit before such items increased during the period.
The FTSE 250-listed metals and minerals producer said pretax profit fell 7.4% to USD184.0 million in 2013 from USD198.6 million in 2012. Not including exceptional items, the company would have posted a pretax profit increase of 1.4% to USD235.0 million from USD231.7 million in 2012, it said.
The company posted a USD51.0 million exceptional cost in 2013, as the company experienced difficulties related to previously subsidised diesel fuel oil prices in Egypt, increasing its cost of sales as a prepayment on its 2013 accounts, compared with a similar USD33.1 million exceptional item cost the previous year.
However, Centamin said its revenues increased 18% to USD503.8 million from USD426.1 million the previous year, as production increases offset lower gold prices during the period.
The company said its production during the period increased by 36% to 356,943 ounces of gold from 262,828 ounces the previous year, significantly beating its full year guidance of 320,000 ounces, as its Sukari Gold Mine in Egypt continued to ramp up operations.
Centamin said it forecasts 2014 production at 420,000 ounces at a cash operating cost of USD700 per ounce, bringing the company closer to its target of 450,000 to 500,000 ounces per year of production from 2015 onwards.
The company said its cost of sales increased 37% to USD277.4 million from USD202.9 million the previous year, but cash costs of production fell 0.9% to USD663 per ounce from USD669 per ounce in 2012.
Centamin said it remains debt-free and un-hedged, with cash, bullion on hand, gold sales receivable and available-for-sale financial assets of USD142.5 million at December 31, 2013, but that it is continuing its policy of not paying dividends at this point.
Centamin shares were up 3.1% to 54.10 pence, putting it in the top ten FTSE 250 risers in early trading Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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