Centamin Shares Increased 5.96% on the H1 2023 Interim Results

The Centamin PLC (LON: CEY) share price increased by 5.96% after releasing the interim results for the first six months of its financial year. The company noted that it generated revenues worth US$426 million after selling 219,353 oz of gold at an average realised gold price of US$1,936/oz.

The gold mining company increased its pre-tax profit margins by 26% to US$193 million versus the US$153m pre-tax profit recorded in a similar period last year. The pre-tax profit margin was 45%, which is quite decent. The company’s earnings per share (EPS) was 7.86 Us cents, while the net profit attributable to shareholders was US$91 million.

Centamin’s capital expenditures were US$108 million, with crucial capital projects advanced as scheduled and on track to meet 2023 guidance. The company is still optimising the Sukari mine while further developing the Doropo mine in Côte d'Ivoire.  The group had operating cash flows of US$172 million from the Sukari mine. 

However, the free cash flow attributable to the group was a mere US$19 million after $88 million was received in profit share and cost recovery. At the same time, US$59 million was distributed to the Egyptian government as partners in the project through profit share and royalties. 

Some operational highlights from the interim report include completing the pre-feasibility study at the Doropo mine project. The PFS showed robust economics with a post-tax net present value using an 8% discount rate of US$497 million and an internal rate of return (“IRR”) of 41% at US$1,900/oz gold price. The company expects to deliver the DFS in mid-2024. 

Martin Horgan, Centamin’s CEO, commented: “This marks Centamin's third consecutive six-month period of improved EBITDA, driven by our focus on operating performance and cost management, whilst also benefiting from an improved gold price. This has enabled us both to continue investing in our portfolio and to distribute returns to our stakeholders. Our operational track record and strong balance sheet put Centamin in a robust position to deliver the next stage of growth, including further optimisation at Sukari and continued development of the Doropo project.”

*This is not investment advice. 

Centamin share price. 

The Centamin share price increased 5.96% to trade at 98.785p, from Tuesday’s closing price of 93.225p.