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Centamin PLC on Wednesday revealed that profit halved in 2021, as revenue declined on lower gold output and sales in a year that the company said marked its ‘peak reset’.
Shares in the Egypt-focused gold miner were down 6.5% at 91.76 pence on Wednesday morning in London, the worst performer in the FTSE 250.
The Sukari gold mine owner posted a pretax profit of £153.6 million in 2021, down 51% from £315.0 million in 2020, on revenue that dropped 12% to £733.3 million from a record $828.7 million.
Centamin produced 415,370 ounces of gold in 2021, an 8.2% fall from 452,320 ounces in 2020, contributing to a 13% drop in sales volumes to 407,252 ounces. Meanwhile, the average realised gold price edged up 1.8% to $1,797 per ounce from $1,766.
‘In December 2020, we announced our three-year reset plans and outlook, which framed 2021 as our peak reset year, meaning lower production and higher capital expenditure. Therefore, understandably, our financial results last year were not as strong as previous years but, importantly, our business is in a much stronger position as we invest in our long-term success,’ Centamin said.
Capital expenditure for the year rose 74% year-on-year to $240.9 million from $138.4 million.
The miner declared a final dividend of 5 US cents per share, bringing the total payout to 9 cents, in line with the year before.
Looking ahead, Centamin expects a rise in gold output for 2022, with guidance ranging from 430,000 to 460,000 ounces due to improving open pit grades.
However, all-in sustaining costs also are expected to rise, to between $1,275 and $1,425 per ounce from $1,234, as a result of inflationary pressures and a $226 million asset reset and the company's growth investment programme.
Finally, Centamin said it will declare a minimum dividend of 5.0 cents for 2022.
‘Delivery towards our strategic objectives was the standout achievement in 2021, placing Centamin in a much stronger position going forward and laying the foundations for long-term success. We safely delivered annual production and cost guidance and made excellent progress on our key capital projects. We safely delivered annual production and cost guidance and made excellent progress on our key capital projects,’ said Chief Executive Officer Martin Horgan.
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