Despite the challenges presented by the Covid-19 pandemic, Egypt-focused gold miner Centamin has delivered a strong operating and financial performance for the six months to June 30, CEO Martin Horgan reported on August 4.
It posted a net profit attributable to shareholders of $74.82-million, a 280% year-on-year increase.
Adjusted earnings before interest, taxes, depreciation and amortisation increased by 118% year-on-year to $255.73-million, while revenue rose by 56% year-on-year to $448.75-million.
As previously reported, a higher gold price and higher gold sales contributed to a significant increase in the company's free cash flow.
Gold production at the company's Sukari mine increased by 9% year-on-year to 256 086 oz, while gold sales increased by 21% year-on-year to 270 529 oz. The average realised gold price rose by 27% year-on-year to $1 657/oz.
That resulted in a 186% year-on-year increase in Centamin's adjusted free cash flow to $101.96-million, after the distribution of $114-million in profit share and royalty payments to the Egyptian State.
The miner has a strong and flexible balance sheet with no debt or hedging and net cash and liquid assets of $367-million, as at June 30, after the payment of the first interim dividend of $69-million on May 15.
Centamin has declared a second interim dividend of $0.06 a share, which is equal to 68% of the company's free cash flow. The dividend will be paid to shareholders in September.
Meanwhile, the company remains on track to meet its full-year production guidance of between 510 000 oz and 525 000 oz of gold.
The miner also remains on track to meet its cost guidance of between $630/oz and $680/oz, as well its all-in sustaining cost guidance of between $870/oz and $920/oz.
The full-year capital expenditure programme remains at between $150-million and $170-million. However, the expenditure profile is weighted towards the second half of the year, with a minimum of $100-million scheduled, though this is subject to the impact of Covid-19.
Free cash flow in the second half will reflect the increased capital programme and the final step change in the Sukari profit share split to 50:50 as at July 1.
The completion of the Sukari life of asset review is also on track for the second half of the year.