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Annual Results

Centamin earnings jump on higher output and prices

01 February 2017 07:31

Centamin's earnings rose to $373m in the year to the end of December - up 145% on last time due to higher gold prices, increased production and lower costs.

Basic earnings per share rose by 313% to 18.61 US cents.

Profit sharing with the Egyptian Mineral Resources Authority commenced during Q3 2016, with earnings per share (before profit share) of 23.05 US cents - up 411% on the prior year.

Centamin remains debt-free and unhedged with cash, bullion on hand, gold sales receivable and available-for-sale financial assets of US$428m at 31 December, up 85% on 2015.

The proposed final dividend of 13.5 US cents per share takes the total payout to 15.5 US cents per share (c.US$178 million).

Production totalled 551,036 ounces, a 26% increase on 2015 and above the revised guidance range.

Cash cost of production of US$513 per ounce was down from US$713 per ounce in 2015 and below the revised guidance range, driven by higher production and reductions in mine production costs, mainly due to lower fuel prices.

Chairman Josef El-Raghy said: "During 2016 Centamin's flagship Sukari Gold Mine continued to deliver substantial free cash flows, driven by a seventh successive year of production growth and through reductions in operating costs.

"This performance has allowed Centamin to maintain its strategic focus on generating shareholder returns and value-accretive growth.

"A significant milestone was achieved during the year, as the capital investment in the Sukari operation by Centamin's wholly-owned subsidiary Pharaoh Gold Mines was recovered from cash flows to the extent that profit share commenced with the Egyptian Government during the third quarter.

"Centamin ended the year with US$428 million in cash, bullion on hand, gold sales receivables and available-for-sale financial assets, an increase of US$197 million during the year."

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