SOURCE: Centamin plc

November 12, 2014 02:00 ET

Centamin plc Results for the Third Quarter and Nine Months Ended 30 September 2014

PERTH, AUSTRALIA--(Marketwired - Nov 12, 2014) - Centamin plc ("Centamin" or "the Company") (LSE: CEY) (TSX: CEE) is pleased to announce its results for the third quarter ended 30 September 2014.

This is not the full announcement. For the full announcement, please click here http://www.rns-pdf.londonstockexchange.com/rns/7772W_1-2014-11-11.pdf

HIGHLIGHTS (1) (2) (3)

Production

  • Gold production 93,624 ounces, 15% higher quarter-on-quarter and 10% increase on the prior year.
  • Cash cost of production of US$771 per ounce, 1.5% lower than Q2 2014.
  • The process plant at Sukari saw record quarterly throughput of 2,388kt and the expanded nameplate capacity of 10 million tonnes per annum (Mtpa) achieved in September.
  • 2014 guidance of between 370,000 and 380,000 ounces at US$700 per ounce cash cost of production.

Financials

  • Basic earnings per share 1.39 cents, up 40% on Q2 2014 and down 49% on the prior year period.
  • EBITDA US$37.8 million, up 16% on Q2 2014 and down 12% on the prior year period.
  • Centamin remains debt-free and un-hedged with cash, bullion on hand, gold sales receivables and available-for-sale financial assets of US$140.3 million as at 30 September 2014.

Exploration

  • Underground drilling at Sukari continues to support further resource and reserve expansion potential.
  • Exploration drilling programmes continue in Ethiopia, Burkina Faso and Côte d'Ivoire.

Legal developments in Egypt

  • The Supreme Administrative Court appeal and Diesel Fuel Court Case are both ongoing. Centamin is aware of the potential for the legal process in Egypt to be lengthy and it anticipates a number of hearings and adjournments in both cases before a decision is reached. Operations continue as normal and any enforcement of the Administrative Court decision has been suspended pending the appeal ruling.
       
  Q3 2014 Q2 2014(1) Q3 2013
Total Gold Production (oz)
93,624

81,281

84,757
Cash Costs of Production(2) (US$/oz)
771(3)

783(3)

693(3)
Average Sales Price (US$/oz)
1,267

1,291

1,329
Revenue (US$ million)
116.1

102.6

120.1
EBITDA(2) (US$ million)
37.8(3)

32.6(3)

43.1(3)
Basic EPS (cents) (3)
1.39(3)

0.99(3)

2.72(3)
       

(1) Results and highlights for the second quarter ended 30 June 2014 are available at www.centamin.com

(2) Cash cost of Production, EBITDA and cash, bullion on hand, gold sales receivables and available-for-sale financial assets are non-GAAP measures defined on pages 23 - 25

(3) Basic EPS, EBITDA, Cash Costs of Production now includes an exceptional provision against prepayments recorded since Q4 2012 to reflect the removal of fuel subsidies which occurred in January 2012 (see Note 4 of the Interim Condensed Consolidated Financial Statements for further details)

Josef El-Raghy, Chairman of Centamin, said: "The ramp-up in productivity from the process plant continued during the quarter, and achieved the expanded 10Mtpa nameplate capacity in September with a record 882,443 tonnes milled, in line with our expectation. Mining rates from the open pit and underground continue to improve and, with the recent government approval for an increase in ammonium nitrate (AN) usage, the operation remains on a secure footing. Whilst our 2014 forecast average grades from underground development ore have reduced and October 2014 had lower plant productivity than expected, our recently revised annual guidance of 370-380,000 ounces implies that we will meet our post-expansion production rate of 450,000-500,000 ounces per annum in the fourth quarter. This will represent a solid achievement for the operation so soon after commissioning activities commenced in the second quarter."

Centamin will host a conference call on Wednesday, 12 November at 9.00am (London, UK time) to update investors and analysts on its results. Participants may join the call by dialling one of the following three numbers, approximately 10 minutes before the start of the call.

UK Toll Free: 0808 237 0040
International Toll number: +44 203 428 1542
Canada Toll free: 1866 404 5783
Participant code: 96761087#

A recording of the call will be available four hours after the completion of the call on:

Toll number: 0203 426 2807
Toll Free number: 0808 237 0026
Playback Code: 651997#

About Centamin plc

Centamin is a mineral exploration, development and mining company dual listed on the London and Toronto Stock Exchanges.

Centamin's principal asset, the Sukari Gold Mine, began production in 2009 and is the first large scale modern gold mine in Egypt, with an estimated 20 year mine life and ramping up production towards a 450,000-500,000 ounce per annum target from 2015 onwards. Our development and operating experience gives us a significant advantage in acquiring and developing other gold projects.

Centamin's regional exploration in the Arabian Nubian Shield is focused in Ethiopia where in addition to its existing licences the Company has a joint venture arrangement with AIM-listed Alecto Minerals plc. Centamin also has a regional exploration licence portfolio in Burkina Faso and Côte d'Ivoire, following its acquisition of ASX-listed Ampella Mining Ltd in 2014.

This information is provided by RNS
The company news service from the London Stock Exchange

Contact Information

  • For more information please contact:

    Centamin plc
    Josef El-Raghy
    Chairman
    Andy Davidson
    Head of Business Development and Investor Relations
    +44 1534 828 708

    Buchanan
    Bobby Morse
    Gordon Poole
    +44 20 7466 5000