The Centamin PLC (LON: CEY) share price dropped 4.78% after releasing its financial results for the year ending December 2022. The gold mining company generated revenues worth $788 million from selling 438,638 oz of gold at an average price of $1,794/oz.
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The company mined 440,974 oz of gold in 2022, representing a 6% increase to 2021’s figure. The firm generated an adjusted EBITDA of $319 million, with an operating margin of 40%, with pretax profits of $171 million, translating into basic earnings per share of 6.29 US cents per share.
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Centamin delivered gross cost savings of $43 million in 2022, leading to a cumulative cost savings of $116 million. As planned, the company is approaching its cost savings target of $150 million by the end of 2023.
The gold mining company also thoroughly reviewed its capital structure, establishing a new capital allocation framework that promotes growth and increases shareholder returns. The company had a robust balance sheet with cash and liquid assets of US$157 million at the end of December.
Centamin announced a final dividend of 2.5 US cents per share, totalling $29 million. The firm’s full-year dividend payout is now worth $58 million. The company also secured a $150 million revolving credit facility linked to its sustainability efforts, which shored up its balance sheet.
Other report highlights included commissioning its 36MW hybrid solar farm to power its flagship Sukari gold mine in Egypt, the largest solar farm to power a gold mine. The company also hit a new safety record of eight million hours worked without a Lost Time Injury at Sukari.
Centamin maintained its 2023 gold production guidance at 450,000 to 480,000 oz per annum, with 55% of the production target being met in H2 2023. The company also estimates its capital expenditures to be $225 million, with 55% of the amount being spent in H1 2023.
The gold mining company continues to explore opportunities to grow and optimise its Sukari mine. The firm also paid $62,544,010 to the government in royalties, taxes and profit share.
*This is not investment advice.
The Centamin share price.
The Centamin share price dropped 4.78% to trade at 101.65p, from Wednesday’s closing price of 106.75p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.