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Mining News March 23, 2021 04:30:17 PM

Record-High Gold Prices Steered Centamin's Profits Substantially

Paul Ploumis
ScrapMonster Author
The company continued to maintain a strong and flexible balance sheet.

Record-High Gold Prices Steered Centamin's Profits Substantially

SEATTLE (Scrap Monster): Centamin plc delivered record revenues in 2020, as Covid-19 pandemic crisis pushed gold prices to record highs.

The miner generated record revenue of US$829 million, a 54% increase in EBITDA to US$439 million with an EBITDA margin of 53%. The profits before tax stood at $315 million last year, almost doubling from the 2019 levels of $173 million. The net profit surged higher from $87.5 million in 2019 to $156 million in 2020. This is despite 6% dip in gold output during the year. Centamin sold 468,681 ounces of gold at an average realised price of US$1,766 per ounce.

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The company continued to maintain a strong and flexible balance sheet. It ended the year with US$310 million in cash and liquid assets at 31 December 2020. It removed $44 million of gross costs, as part of the ongoing US$100 million cost-saving target by 2024. The miner also declared a final dividend of 3 cents per share, subject to shareholder approval at the upcoming annual general meeting in May 2021.

Centamin expects gold production in 2021 to range between 400,000 to 430,000 oz at all-in sustaining costs of between $1,150 and $1,250 per ounce. In addition, the Board reiterated its intention to recommend a minimum 2021 dividend of US$105 million.

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