Centamin (CEY) Investor Update summary

Transaction overview

• AngloGold Ashanti has made a recommended firm offer to acquire Centamin, valuing the company at approximately GBP 1.9 billion ($2.5 billion), with shareholders receiving 0.06983 new Anglo shares and $0.125 in cash per Centamin share, representing a 36.7% premium to Centamin's closing share price on 9 September 2024 and 37.6% to the 30-day VWAP.

• Centamin shareholders are expected to own about 16.4%–16.6% of the combined group.

• The transaction will be implemented via a scheme of arrangement, subject to shareholder and regulatory approvals, including the Egyptian Competition Authority.

• Key meetings are targeted for late October, with completion expected in Q4 2024.

• The Centamin board unanimously recommends the transaction.

Operational and financial performance

• Q3 2024 to date: Sukari mine processed 1.9Mt ore, produced 93,278 oz gold, sold 102,563 oz, with a feed grade of 1.59 g/t Au and 89.3% recovery.

• Cash costs were $715/oz and all-in sustaining costs $1,290/oz sold.

• Revenue for Q3 QTD was $249 million, with adjusted free cash flow of $76 million, up 77% from H1.

• Capital expenditure for Q3 QTD was $36 million, with 2024 capex guidance maintained at $215 million.

• Cash and liquid assets stood at $244 million as of 31 August 2024, with total liquidity of $394 million including an undrawn $150 million credit facility.

Guidance and outlook

• Full-year 2024 production guidance remains at 470,000–500,000 oz, tracking toward the midpoint.

• Cash cost guidance is $700–850/oz produced; AISC guidance is $1,200–1,350/oz sold.

• Capex guidance unchanged at $215 million, with $112 million sustaining and $103 million non-sustaining.

• Up to $45 million of sustaining deferred stripping budgeted for H2 2024.

• Minimum 30% free cash flow dividend payout policy maintained.