Centamin (CEY) H1 2024 earnings summary

Executive summary

• H1 2024 gold production rose 2% year-over-year to 224,738 oz, with revenue up 9% to $465 million, driven by higher realized gold prices and operational efficiencies.

• Adjusted EBITDA increased 9% to $211 million, while profit after tax attributable to shareholders declined 8% to $83 million.

• Free cash flow more than doubled to $43 million, with liquidity at $350 million, including $150 million undrawn RCF.

• Internal promotions strengthened management, including appointment of a new COO and Sukari GM.

• Doropo DFS confirmed robust economics (NPV8% $426m, IRR 34%), with environmental permit received and mining licence application planned.

Financial highlights

• Revenue increased 9% year-over-year to $465 million, with adjusted EBITDA up 9% to $211 million and a 45% margin.

• Profit after tax to shareholders fell 8% to $83 million; basic EPS down 9% to 7.19 US cents.

• Free cash flow surged 121% to $43 million; liquidity at $350 million, including $150 million undrawn RCF.

• Cash cost per ounce produced rose 15% to $977; AISC up 13% to $1,382/oz sold.

• Interim dividend of 2.25 US cents/share declared, representing 53% of free cash flow before growth capex.

Outlook and guidance

• 2024 gold production guidance maintained at 470,000–500,000 oz; cash cost guidance $700–$850/oz, AISC $1,200–$1,350/oz.

• Capex guidance of $215 million on track, with $89 million spent in H1 2024.

• Expectation to close the gap between gold produced and sold in H2, normalizing bullion inventory.

• Doropo mining licence application underway, with first gold targeted post-2026 and investment decision in H1 2025.

• Minimum 30% of free cash flow to be distributed as dividends.