REG - Centamin PLC - New Egyptian Mining Regulatory Framework Agreed

CentaminAnnouncement

20/07/2023 13:00

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RNS Number : 6889G  Centamin PLC  20 July 2023

20 July 2023

Centamin plc

("Centamin" or "the Company")

LSE: CEY / TSX: CEE

 

New EGYPTIAN mining regulatory framework AGREED

Establishes a clear, competitive regulatory structure for development of new
mining concessions

 

Centamin announces that the framework for the model mining exploitation
agreement ("MMEA") has been agreed in principle with the Egyptian Ministry of
Petroleum & Natural Resources ("MoP") and the Egyptian Mineral Resources
Authority ("EMRA"). The MMEA sets out the legal and fiscal framework that will
apply to commercial discoveries made on the highly prospective c.3,000km(2) of
ground awarded to Centamin in 2021 for exploration in the Eastern Desert of
Egypt ("EDX blocks").

Alongside industry partners, Martin Horgan, Centamin CEO, and the Egyptian
Minister of Petroleum & Natural Resources, His Excellency Eng Tarek
El-Molla, have jointly reached an agreement in principle on the fiscal and
regulatory terms associated with the exploitation phase of new mining projects
in Egypt. Following routine Egyptian government and legal procedures, the MMEA
will be ratified as a Special Law by the Arab Republic of Egypt in late 2023.

The MoP has been clear in its vision to create a thriving mining industry for
the benefit of Egypt and its people. Centamin shares this vision and strongly
believes that mining can fulfil its true potential in Egypt through
employment, education and training, and direct financial and infrastructure
investment to support the MoP's target for the mining industry to contribute
5% of the country's GDP by 2030.

Martin Horgan, CEO, commented: "Centamin has successfully operated in Egypt
for over 20 years and we believe these terms lay the foundation for developing
Egypt's mining sector, unlocking the undoubted geological potential within the
country. The MMEA provides a clear regulatory and fiscal framework that fairly
balances risk and reward between the stakeholders while providing a stable
operating environment required by the international mining community and its
investors.

We would like to thank His Excellency Eng Tarek El Molla, his team and our
partners within the industry group for the sustained and engaged process over
the last year that has enabled us to reach this landmark for Egypt."

model mining exploitation agreement

KEY TERMS

The MMEA applies to Centamin's three EDX blocks (Nugrus, Um Rus and Najd), and
will take effect once the Egyptian parliamentary approval is granted and]
legally ratified. Under the MMEA, exploitation licenses will be issued for a
30 year stabilised fiscal and legal regime, including:

·      5% government net smelter royalty on revenue

·      22.5% corporate tax rate

·      15% government financial net profit interest (on post tax income)

·      0.5% community development contribution

·      Life of mine commitments towards local employment, training and
procurement

The MMEA terms align with a modern, international mining code comparable to
other jurisdictions. The MMEA does not apply to the 160km(2) Sukari Gold Mine
mining concession, which operates independently under the Sukari Concession
Agreement, ratified by parliament under Egyptian Law No. 222 of 1994.

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 6.0Moz
in gold Mineral Reserves. Through its large portfolio of exploration assets in
Egypt and Côte d'Ivoire, Centamin is advancing an active pipeline of future
growth prospects, including the Doropo project in Côte d'Ivoire, and has over
3,000km(2) of highly prospective exploration ground in Egypt's Nubian Shield.

Centamin recognises its responsibility to deliver operational and financial
performance and create lasting mutual benefit for all stakeholders through
good corporate citizenship, including but not limited to in 2022, achieving
new safety records; commissioning of the largest hybrid solar farm for a gold
mine; sustaining a +95% Egyptian workforce; and, a +60% Egyptian supply chain
at Sukari.

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

 Centamin plc                                                       FTI Consulting

 Alexandra Barter-Carse, Head of Corporate Communications           Ben Brewerton / Sara Powell / Nick Hennis

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

                                                                    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

 

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