REG - Centamin PLC - $150M SUSTAINABILITY-LINKED CREDIT FACILITY

CentaminAnnouncement

22/12/2022 15:00

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RNS Number : 6693K  Centamin PLC  22 December 2022

22 December 2022

Centamin plc

("Centamin" or "the Company")

LSE: CEY / TSX: CEE

 

centamin SECURES us$150m sustainability-linked REVOLVING Credit Facility

Improved financial flexibility to fund identified growth pipeline

 

Martin Horgan, CEO, commented: "As we continue to position Centamin for
growth, the introduction of debt provides greater financial capacity and
flexibility to fund the identified opportunities across our portfolio as we
seek to become a multi-asset, multi-jurisdictional gold producer.
Sustainability remains at the core of our business model and investment
decisions. The sustainability targets linked to this facility align with our
ongoing environmental, social and governance priorities and will track
tangible progress in reducing our environmental footprint and strengthening
our social license to operate.

With a strong balance sheet, cashflow from the Sukari mine and this debt
facility, Centamin is in a robust position to fully maximise our growth
potential while maintaining our commitment to stakeholder returns. Having
secured this facility, we expect to complete the capital structure review in
Q1 2023."

Centamin is pleased to announce that it has entered into a senior secured sustainability-linked revolving credit facility ("RCF") of US$150 million (the "Facility") with a syndicate of leading international lending banks, offering the Company increased financial capacity and flexibility for general corporate purposes. The Facility integrates Centamin's ESG commitments into the financial strategy with clear sustainable-linked performance metrics for reduction in carbon emissions, improvement in gender diversity and workforce development factored into the pricing mechanism.

The Company maintains a strong balance sheet with no other debt instruments
and cash and liquid assets of US$147 million, as at 30 November 2022.

highlight terms

·      US$150 million RCF agreement has been entered into with a
syndicate of four international banks, taking equal tranches, including BMO
Capital Markets acting as the Global Coordinator, Mandated Lead Arranger and
Lead Sustainability Coordinator, and HSBC Bank plc (Jersey), ING Bank, and
Nedbank Limited (acting through Nedbank Corporate and Investment Banking
division) acting as the Mandated Lead Arrangers and Co-Sustainability
Coordinators (the "Lenders")

·      Uncommitted accordion provision allowing the Company to request
an increase, subject to the Lenders' approval, of up to US$50 million to the
Facility, for a total potential RCF of US$200 million

·      Four-year term

·      Interest margin ranges between 3.50% and 4.50% per annum with a
margin rachet mechanism based on Total Net Debt to EBITDA

·      Centamin has committed to meeting specific sustainability-linked
targets on carbon emissions, workforce development and gender diversity. These
key performance metrics will be monitored annually and, depending on the
Company's performance, the interest margin on the Facility may decrease,
remain unchanged or increase

ENDNOTES

Total net debt

The aggregate amount of all borrowings less the aggregate amount of cash and
cash equivalent investments.

Cash and liquid assets

Cash and liquid assets include cash, bullion on hand and gold sales
receivables.

About Centamin

Centamin is an established gold producer, with premium listings on the London
Stock Exchange and Toronto Stock Exchange. The Company's flagship asset is the
Sukari Gold Mine ("Sukari"), Egypt's largest and first modern gold mine, as
well as one of the world's largest producing mines. Since production began in
2009 Sukari has produced over 5 million ounces of gold, and today has a
projected mine life of 12 years.

Through its large portfolio of exploration assets in Egypt and West Africa,
Centamin is advancing an active pipeline of future growth prospects, including
the Doropo project in Côte d'Ivoire, and over 3,000km(2) of highly
prospective exploration ground in Egypt's Arabian Nubian Shield.

Centamin practices responsible mining activities, recognising its
responsibility to deliver operational and financial performance and create
lasting mutual benefit for all stakeholders through good corporate
citizenship.

FOR MORE INFORMATION please visit the website www.centamin.com
(http://www.centamin.com) or contact:

 Centamin plc                                                 Buchanan

 Alexandra Barter-Carse, Corporate Communications             Bobby Morse/ Oonagh Reidy/ George Cleary

 +44 (0) 7700 713 738                                         + 44 (0) 20 7466 5000

 investor@centaminplc.com (mailto:investor@centaminplc.com)   centamin@buchanan.uk.com (mailto:centamin@buchanan.uk.com)

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. Such statements include "future-oriented financial information"
or "financial outlook" with respect to prospective financial performance,
financial position, EBITDA, cash flows and other financial metrics that are
based on assumptions about future economic conditions and courses of action.
Generally, these forward-looking statements can be identified by the use of
forward-looking terminology such as "believes", "expects", "expected",
"budgeted", "forecasts" and "anticipates"." and include production outlook,
operating schedules, production profiles, expansion and expansion plans,
efficiency gains, production and cost guidance, capital expenditure outlook,
exploration spend and other mine plans. 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. Financial outlook and future-ordinated financial
information contained in this news release is based on assumptions about
future events, including economic conditions and proposed courses of action,
based on management's assessment of the relevant information currently
available. Readers are cautioned that any such financial outlook or
future-ordinated financial information contained or referenced herein may not
be appropriate and should not be used for purposes other than those for which
it is disclosed herein. The Company and its management believe that the
prospective financial information has been prepared on a reasonable basis,
reflecting management's best estimates and judgments at the date hereof, and
represent, to the best of management's knowledge and opinion, the Company's
expected course of action. However, because this information is highly
subjective, it should not be relied on as necessarily indicative of future
results. 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.

LEI: 213800PDI9G7OUKLPV84

Company No: 109180

 

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