REG - Centamin PLC - Payments to Government

CentaminAnnouncement

21/03/2024 07:00

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RNS Number : 7472H  Centamin PLC  21 March 2024

21 March 2023

 

 

Centamin plc

("Centamin" or "the Company")

(LSE:CEY, TSX:CEE)

 

 

 
PAYMENTS TO GOVERNMENT

for the twelve months ended 31 December 2023

 

 

Centamin 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 2023 in US dollars *"USD")

 

 Type                                Note  Jersey & UK      Egypt          Côte d'Ivoire   Total
 Profit share                              −                 112,000,000   −                112,000,000
 Corporate taxes                     (i)   −                3,055,531      20,591           3,076,122
 Royalties                                 −                 24,898,044    −                24,898,044
 Exploration licence fees                  −                452,483        47,446          499,929
 Mining and other licence fees             −                 334,168       −               334,168
 Community investment and donations  (ii)  442,319           301,069       58,009           801,398
 Other                                     −                62,503         −               62,503
                                           442,319          141,103,797    126,046         141,672,163

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

(ii)   Community investment in Jersey & UK: sponsorship of community and
mining sector initiatives.

Community investment in Egypt: investment in community infrastructure and
services to the benefit of local communities; philanthropic donations to
vulnerable groups; sponsorship of community and mining sector initiatives.

Community investment in Cote d'Ivoire: investment in community infrastructure
and services to the benefit of local communities.

 

Payments split by payee during the year ended 31 December 2023 in US$

 

 Country / Project     NotE   Payee                                 Royalties   Profit share  Taxes        License or permit fees  Other         Total
 Jersey & UK:                 Government                            −           −             −            −                       −             −
 Centamin plc                 States of Jersey / HMRC               −           −             −            −                       −             −
                              Other payees                          −           −             −            −                       442,319       442,319
 Egypt:                (i)
 Sukari Gold Mine             Arab Republic of Egypt                −           −             −            −                       −             −
                              Egyptian Mineral Resources Authority  24,898,044  112,000,000   −            −                       −             136,898,044
                              Egyptian Tax Authority                −           −              2,951,288   −                       −              2,951,288
                              Other payees                          −           −             −             334,168                301,069        635,236
 Egypt:                (ii)
 Exploration projects         Arab Republic of Egypt                −           −             −            −                       −             −
                              Egyptian Mineral Resources Authority  −           −             −            448,163                  40,866       489,029
                              Egyptian Tax Authority                −           −              104,243     −                       −              104,243
                              Other payees                          −           −             −             4,320                  21,637         25,957
 Côte d'Ivoire:
 Exploration projects  (iii)  Ministry of Mines                     −           −             −            47,446                  −              47,446
                              Côte d'Ivoire Tax Office              −           −             20,591       −                       −             20,591
                              Other payees                          −           −             −            −                       58,009        58,009
                                                                    24,898,044  112,000,000   3,076,122    834,097                 863,900       141,672,163

(i)     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.

(ii)     In accordance with the definition of 'project' in the
Regulations, the Company treats its exploration licence holding areas in Côte
d'Ivoire and Egypt 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                                                  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. Generally, these forward-looking statements can be identified by
the use of forward-looking terminology such as "believes", "expects",
"expected", "budgeted", "forecasts" and "anticipates". 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; 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. 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. 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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