EGYPTIAN gold mining firm Centamin is to pay an interim dividend of 6 US cents per share replacing the previously adopted year-end dividend – a move the firm said was intended to provide investors with certainty.
Centamin was in December the target of an informal merger proposal by Endeavour Mining, a firm that runs several mines in West Africa. However, Centamin declined to entertain the offer saying that it undervalued the company.
The intention to pay an inaugural interim dividend – which is payable on May 15 – was announced in the firm’s first quarter results which showed a steady performance.
Production came in at 125,090 ounces of gold from the firm’s Sukari gold mine at an all-in sustaining cost (AISC) of $902/oz. Gold sales totalled 139,784 oz, achieved at an average realised price of $1,587/oz – 7% higher than in the previous quarter.
Gold production in the current (second) quarter is scheduled to be a lower at some 115,000 oz reflecting a reduction in underground output, the company said. Full year production guidance has been maintained at between 510,000 to 540,000 oz at an AISC of between $870 to $920/oz.
“Open pit material to contribute 80% of the full year production driven by higher grade Stage 4 ore,” the company said in notes to its quarterly announcement. “The balance is scheduled to come from the underground, specifically Ptah as the focus within Amun is infrastructure upgrades,” it said.
“Centamin is a resilient and responsibly run business with zero debt and $379.2m in cash and liquid assets, as at 31 March 2020,” said Ross Jerrard, Centamin CFO. “I am confident in our long-term strategy and our ability to respond quickly in this difficult environment.”
Centamin had so far been unaffected by the COVID-19 pandemic. It said today, however, that infections and the prolonging of travel bans might have a negative effect on the business, said Jerrard. Jerrard, who was acting CEO, made way for permanent CEO Martin Horgan with effect of April 6.
