Centamin plc - Quarterly Report for the three months ended 30 September 2021.
MARTIN HORGAN, CEO, commented: This quarter marked another period of solid operational delivery.
We entered the final quarter in a good position and remain firmly on track to meet our stated guidance for 2021. As outlined at the recent Geology capital markets event, the Company has been busy progressing several growth projects at the same time as delivering the Sukari operational reset. Centamin continues to generate positive free cash flow whilst delivering increased investment into key capital projects, underpinning the long-term sustainability of Sukari. Further to this, we very much look forward to updating the market on the results of our Sukari Life of Asset optimisation work, which we expect to announce on Wednesday the 1st of December.'
HIGHLIGHTS
Solid operational performance
Gold production for the third quarter ('Q3') was slightly ahead of schedule at 103,546 ounces ('oz'), bringing production for the nine months of the year ('YTD') to 307,821 oz, and the Company remains on track to achieve 2021 production guidance
Revenue generated of US$182.9 million from gold sales of 103,514 oz at an average realised gold price of US$1,764/oz sold
Cash costs of US$846/oz produced (YTD: US$ 820/oz) and all-in sustaining costs ('AISC') of US$1,266/oz sold (YTD: US$1,197/oz), and the Company remains on track to achieve 2021 cost guidance
Adjusted Group free cash flow of US$6.9 million (YTD: US$23.8m) was ahead of budget reflecting stronger gold price partially offset by increased mining costs driven by more open pit material mined
Growth capital projects progressed on schedule with US$67.6 million of capital expenditure ('capex') (YTD: US$146.9m)
Egyptian exploration bid round terms signed and finalised, securing c.3,000km2 of highly prospective greenfield landholding within the Eastern Desert of the Egyptian Arabian Nubian Shield
Strong balance sheet with no debt, no hedging and cash and liquid assets of US$256.1 million, as at 30 September 2021, after US$46.1 million interim dividend distribution on 30 September 2021
Full COVID-19 protocols remain in place and operations, supply chains and gold shipments have not been materially impacted.
Non-GAAP measures
This statement includes certain financial performance measures which are non-GAAP measures as defined under International Financial Reporting Standards (IFRS). These include Cash costs of production, AISC, Cash and liquid assets, and Free cash flow. Management believes these measures provide valuable additional information for users of the financial statements to understand the underlying trading performance.
Forward-looking Statements
This announcement (including information incorporated by reference) contains 'forward-looking statements' and 'forward-looking information' under applicable securities laws (collectively, 'forward-looking statements'), including statements with respect to future financial or operating performance. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as 'believes', 'expects', 'expected', 'budgeted', 'forecasts' and 'anticipates'. Although Centamin believes that the expectations reflected in such forward-looking statements are reasonable, Centamin can give no assurance that such expectations will prove to be correct. Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of Centamin about future events and are therefore subject to known and unknown risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. In addition, there are a number of factors that could cause actual results, performance, achievements or developments to differ materially from those expressed or implied by such forward-looking statements; the risks and uncertainties associated with the ongoing impacts of COVID-19 or other pandemic, general business, economic, competitive, political and social uncertainties; the results of exploration activities and feasibility studies; assumptions in economic evaluations which prove to be inaccurate; currency fluctuations; changes in project parameters; future prices of gold and other metals; possible variations of ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; climatic conditions; political instability; decisions and regulatory changes enacted by governmental authorities; delays in obtaining approvals or financing or completing development or construction activities and discovery of archaeological ruins. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information or statements, particularly in light of the current economic climate and the significant volatility, uncertainty and disruption caused by the outbreak of COVID-19. Forward-looking statements contained herein are made as of the date of this announcement and the Company disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Accordingly, readers should not place undue reliance on forward-looking statements.
Contact:
Tel: +44 1534 828700
Email: info@centaminplc.com
CENTAMIN PLC 
