Centamin reports 13% lift in taxed profit in delayed 2019 financial year results

CENTAMIN reported a 13% increase in profit after tax for its 2019 financial year owing to “solid cost management and improved grade,” according to a company statement.

The company said in April that the announcement of its full-year results have been delayed whilst it absorbed the likely impact of the COVID-19 pandemic on its business.

Ross Jerrard, who was interim CEO of Centamin in 2020 until about April 6, said in a statement today the pandemic had injected uncertainty into the global investment market, but safe haven investing could benefit the gold business.

“We have made a good start to 2020 with production and costs on track,” said Jerrard. “Our clean balance sheet, with no debt nor hedging, offers pure exposure to the gold price and our long cash position of $379m underpins the financial strength of the business and self-funds current growth investment,” he said.

Jerrard, who is CFO, was replaced by Martin Horgan, the former co-founder and CEO of gold exploration and production firm, Toro Gold.

Commenting on its first quarter production for the 2020 financial year, Centamin said on April 21 that production was 125,090 ounces of gold from its 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, the company said.