REG - Centamin PLC - 2023 Final Dividend

CentaminAnnouncement

21/03/2024 07:00

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RNS Number : 7473H  Centamin PLC  21 March 2024

21 March 2024

Centamin plc

("Centamin" or "the Company")

(LSE:CEY, TSX:CEE)

 

2023 FINAL DIVIDEND

 

Centamin is pleased to announce that the Board of Directors recommend the
payment of a final dividend of 2 US cents per share, for the six months ended
31 December 2023.

DIVIDEND POLICY

Stakeholder, and specifically shareholder returns, are central to our Company
strategy. Centamin was one of the first gold producers to pay a dividend under
a structured policy. We have since built a ten-year track record of returning
cash to shareholders, totalling US$881m (inclusive of the FY23 final
dividend).

As a result of our continued commitment to shareholder returns, the dividend
policy remains unchanged from our previous commitment to return a minimum of
30% of Group free cash flow before growth capital expenditure(1) to
shareholders in cash dividends. In addition to the minimum dividend, the
balance sheet is assessed by the Board which will use its discretion to
allocate the remaining available cash to growth projects and supplementary
dividend payments.

2023 FINAL DIVIDEND

The Board proposes a final dividend of 2 US cents per share (US$23 million).
The final dividend will be subject to shareholder approval at the Annual
General Meeting on 21 May 2024, which will be hosted in Jersey.

Following the interim dividend of 2 US cents (US$23m) that was declared in
July 2023 and paid in September 2023, the final dividend brings the total
dividend attributed to full year 2023 to 4 US cents per share (US$46 million).
This represents 55% of the cash available for dividend payments, exceeding the
policy to pay out a minimum of 30% of Group free cash flow before growth
capital expenditure. The Board applied its discretion to allocate US$21m to
supplementary dividend payments given the continued strength of the balance
sheet.

The final dividend is calculated by the following:

                                                                     30-Jun-23     30-Dec-23     2023
 US$'000                                                             Interim       Final         Total
 Group free cash flow                                                19,362        29,633        48,995
 Add back:
 Growth capex financed from treasury 1  (#_ftn1)                     21,818        13,887        35,705
 Cash flow available for dividends                                   41,180        43,520        84,700
 30% minimum distribution as per dividend policy                     (12,354)      (13,056)      (25,410)
 Surplus cash flow for discretionary capital allocation 2  (#_ftn2)  28,826        30,464        59,290
 Board dividend supplement                                           (10,814)      (10,113)      (20,927)
 Total dividend declared                                             23,168        23,169        46,337
 US Cents                                                            2.0           2.0           4.0
 % of cash flow available for dividend payments                      56%           53%           55%

 

Centamin maintains a robust financial position, with cash and liquid assets of
US$153 million as at 31 December 2023. The Company's disciplined approach to
capital allocation, provides the flexibility to allocate capital to
shareholders returns, business investment and growth as well as environmental
and social opportunities.

 

2023 final Dividend Timetable 3  (#_ftn3)

Below is the final dividend timetable for the London Stock Exchange (LSE) and
Toronto Stock Exchange (TSX):

 

 ●    AGM Date                           21 May 2024
 ●    Ex-Dividend Date:                  30 May 2024 (LSE only)
 ●    Record Date:                       31 May 2024 (Record and Ex-Dividend Date for the TSX)
 ●    Last Date for Currency Elections:  3 June 2024
 ●    Payment Date:                      19 June 2024

 

Dividend Currency Elections

The dividend will be paid on 19 June 2024, in US Dollars ("USD") with an
option for shareholders to elect to receive the dividend in Pounds Sterling
("GBP"). Currency elections should be made no later than 3 June 2024 as per
the instructions detailed on the Company website (www.centamin.com
(http://www.centamin.com) ). Payments in GBP will be based on the USD/GBP
exchange rate on 4 June 2024 and the rate applied will be published on the
website thereafter.

As a Jersey incorporated company, there is no requirement for Centamin plc to
make any withholding or deduction on account of Jersey tax in respect of the
dividend.

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 5.7 million ounces of gold, and today has a projected
mine life to 2035.

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                                                  FTI Consulting

 Michael Stoner, Head of Corporate                             Ben Brewerton / Sara Powell / Nick Hennis

 investor@centaminplc.c (mailto:investor@centaminplc.com) om   +442037271000
 (mailto:investor@centaminplc.com)

                                                               centamin@fticonsulting.com (mailto:centamin@fticonsulting.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 direct or indirect
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, the
risks and uncertainties associated with the direct and indirect impacts 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

 

 1  (#_ftnref1) Defined as Sukari growth capex funded from Treasury and
available for cost-recovery as per the Concession Agreement

 2  (#_ftnref2) Discretionary capital allocation options include future
project investment, portfolio optimisation, supplemental shareholder returns

 3  (#_ftnref3) The dates set out above are based on the Directors' current
expectations and may be subject to change. If any of the dates should change,
the revised dates will be announced by a regulatory news announcement and will
be available at www.centamin.com

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