REG - Centamin PLC - Payments to Government

CentaminAnnouncement

16/03/2023 07:15

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RNS Number : 1158T  Centamin PLC  16 March 2023

16 March 2023

Centamin plc

("Centamin" or "the Company")

LSE: CEY / TSX: CEE

 

payments to government
audited results for the twelve months ended 31 December 2022

 

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 2022 in US dollars ("USD")

 

 Type                                Note  Egypt         Burkina Faso  Côte d'Ivoire   Total
 Profit share                               35,492,459    -             -               35,492,459
 Corporate taxes                     (i)    2,610,782     -             -               2,610,782
 Royalties                                  22,445,810    -             -               22,445,810
 Exploration licence fees                  -              4,504         301,780         306,284
 Mining and other licence fees              424,465       677,895      -                1,092,747
 Community investment and donations  (ii)   492,963       -             93,352          594,830
                                            61,466,479    682,400       395,132         62,544,010

(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: Renovation for the Marsa Alam youth
centre, karate playground and kids play area facilities, donation of medical
equipment for Marsa Alam hospital, purchase of sewing machines and fabric for
the Marsa Alam community and support for other community development
initiatives..

Community investment in Cote d'Ivoire: Community HIV awareness programs, new
boreholes and rehabilitation of old boreholes for community water needs,
supporting local football tournament and other community engagement
initiatives

 

Payments split by payee

during the year ended 31 December 2022 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  22,445,810  35,492,459     -          -                       -         57,938,269
                              Egyptian Tax Authority                 -           -            2,610,782   -                       -         2,610,782
                              Other payees                           -           -             -         424,465                 492,963    917,428
 Burkina Faso:
 Konkera Project       (iv)   Ministry of Mines                      -           -             -         668,282                  -         668,282
                              Burkina Faso Tax Office                -           -             -          -                       -         -
                              Other payees                           -           -             -          -                       1,099     1,099
 Burkina Faso:
 Exploration projects         Ministry of Mines                      -           -             -         4,504                   -         4,504
                              Burkina Faso Tax Office                -           -             -          -                       -        -
                              Other payees                           -           -             -          -                       8,515     8,515
 Côte d'Ivoire:
 Exploration projects  (iv)   Ministry of Mines                      -           -             -         301,780                 -         301,780
                              Côte d'Ivoire Tax Office               -           -             -          -                       -        -
                              Other payees                           -           -             -          -                       93,352    93,352
                                                                    22,445,810  35,492,459    2,610,782   1,399,031              595,928   62,544,010

(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.

About Centamin

Centamin is an established gold producer, with premium listings on the London
Stock Exchange and Toronto Stock Exchange. Following a period of 'reset'
including a significant refresh of the Board and management team, the Company
is now entering a growth phase, balanced with stakeholder returns. 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 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, including but not limited to in 2022, achieving new safety
records (8 million hours LTI-free), commissioning of the largest hybrid solar
farm for a gold mine (Sukari 36MW(DC) solar plant), sustaining a 96% Egyptian
workforce and a 68% 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.c (mailto:investor@centaminplc.com) om   +442037271000
 (mailto:investor@centaminplc.com)

                                                               centamin@fticonsulting.com (mailto:centamin@fticonsulting.com)

 

LEI: 213800PDI9G7OUKLPV84

Company No: 109180

 

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