REG - Centamin PLC - Payments to Government

CentaminAnnouncement

16/03/2022 07:15

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RNS Number : 8981E  Centamin PLC  16 March 2022

16 March 2022

Centamin plc

("Centamin" or "the Company")

LSE: CEY / TSX: CEE

 

payments to government
full year results for the twelve months ended 31 December 2021
 

 

Centamin's mining operations, including exploration projects, generate
economic benefit for the countries and communities where we operate through
payments to government, employee and contractor wages, payments to suppliers
and contractors, vocational training, community investment and academic
investment. We care deeply about the communities and environments with which
we operate. Fundamental to creating lasting stakeholder relationships is good
governance, including reliable, transparent disclosure.

In accordance with the Payments to Governments Regulations of 2014 (the
"Regulations"), this report provides an overview of the Centamin's payments to
governments.  Whilst the Regulations are a part of UK law, and the Company is
governed by Jersey law, they are applicable by virtue of the Company's
listing on the London Stock Exchange (pursuant to Disclosure and Transparency
Rule 4.3A).

The Regulations require companies active in the extractive industries to
report certain payments they have made to their host governments in the form
of taxes, bonuses, royalties, fees and for infrastructure improvements. The
Regulations implement Chapter 10 of the EU Accounting Directive. The
Regulations are part of an EU‑wide effort to curb corruption and promote
transparency in the extractives sector. Their stated objectives are to provide
citizens of resource‑rich countries with the information they need to hold
their governments to account; and to provide greater insight (for investors
and all other stakeholders) into how the sector operates and the range of
economic contributions that can result.

The Regulations require disclosure of the following:

a)    production entitlements

b)    taxes levied on the income, production or profits of companies,
excluding taxes levied on consumption such as value added taxes, personal
income taxes or sales taxes

c)     royalties

d)    dividends, other than dividends paid to a government as an ordinary
shareholder unless they are paid in lieu of a production entitlement or
royalty

e)    signature, discovery and production bonuses

f)     licence fees, rental fees, entry fees and other considerations for
licences and/or concessions, and

g)    payments for infrastructure improvements.

Where a payment or series of related payments do not exceed GBP86,000 they do
not need to be disclosed but, in the interests of transparency, the Company
has included these costs.

The Company is also subject to equivalent Canadian legislation - the
Extractive Sector Transparency Measures Act ("ESTMA") which came into force on
1 June 2015. Canada's requirements are aligned with those in the EU Directive
and this report is deemed equivalent for Canadian purposes.

Payments in this report have been disclosed in US dollars, which is the
Company's reporting currency. Where actual payments have been made in a local
currency they have been converted using the prevailing exchange rate at the
time of the payment.

Summary table showing payments MADE to governments made

during the year ended 31 December 2021 in US dollars ("USD")

 

 Type                                Note  Egypt         Burkina Faso  Côte d'Ivoire   Total
 Profit share                               75,200,000   -             -                75,200,000
 Corporate taxes                     (i)   3,764,505     -             -                3,764,505
 Royalties                                  22,297,965   -             -                22,297,965
 Exploration licence fees                  -             91,564        91,896          183,460
 Mining and other licence fees              328,976      1,108,539     -                1,437,515
 Community investment and donations  (ii)   159,165      29,394        143,110          331,668
                                           101,750,611   1,229,497     392,343         103,215,114

(i)    In accordance with the Regulations, this figure excludes taxes
levied on consumption such as VAT, payroll, or sales taxes.

(ii)   Community investment in Egypt:  provision of medical equipment to
the local hospital; refurbishment of the rehabilitation centre for persons
with specials needs; upgrade to facilities at the local youth centre;
donations to vulnerable families affected by COVID-19.

Community investment in Cote d'Ivoire: provision of fertiliser and seed for
wet season agriculture; capacity building in micro-finance; and installation
of potable water infrastructure.

Community investment in Burkina Faso: installation of potable water
infrastructure; installation of solar panels for a rural school.

 

Payments split by payee

during the year ended 31 December 2021 in USD

 

 Country / Project     NotE   Payee                                 Royalties   Profit share  Taxes        License or permit fees  Other      Total
 Egypt:                (iii)
 Sukari Gold Mine             Arab Republic of Egypt                 -           -             -            -                        -        -
                              Egyptian Mineral Resources Authority  22,297,965   75,200,000    -            -                       -         97,497,965
                              Egyptian Tax Authority                 -           -             3,764,505    -                       -          3,764,505
                              Other payees                           -           -             -            328,976                 159,165    488,141
 Burkina Faso:
 Konkera Project       (iv)   Ministry of Mines                      -           -             -            1,088,243               -          1,088,243
                              Burkina Faso Tax Office                -           -             -            -                       -          -
 Burkina Faso:
 Exploration projects         Ministry of Mines                      -           -             -           91,564                  20,297      111,861
                              Burkina Faso Tax Office                -           -             -            -                       -          -
                              Other payees                           -           -             -            -                      29,394      29,394
 Côte d'Ivoire:
 Exploration projects  (iv)   Ministry of Mines                      -           -             -           91,896                   -          91,896
                              Côte d'Ivoire Tax Office               -           -             -            -                       -          -
                              Other payees                           -           -             -            -                      143,110    143,110
                                                                    22,297,965   75,200,000   3,764,505     1,600,679              351,965    103,215,114

(iii)  Other types of payments that are required to be disclosed in
accordance with the Regulations include production entitlements; signature,
discovery, and production bonuses; and dividends. The Company and its
subsidiaries did not make any such payments to governments during the year.

(iv)  In accordance with the definition of 'project' in the Regulations, the
Company treats its exploration licence holding areas in Côte d'Ivoire and
Burkina Faso as single projects each for the purposes of the Regulations. This
is because the licence areas are operationally and geographically linked.

 

This announcement contains ongoing regulated information.

FOR MORE INFORMATION

Please visit the website www.centamin.com (http://www.centamin.com) or
contact:

 Centamin plc                                                 Buchanan

 Alexandra Barter-Carse, Head of Corporate Communications     Bobby Morse/ Ariadna Peretz/ James Husband

 Michael Stoner, Group Corporate Manager                      + 44 (0) 20 7466 5000

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

 

LEI: 213800PDI9G7OUKLPV84

Company No: 109180

 

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