Centamin PLC (TSX:CEE, LSE:CEY, OTC:CELTF) posted a 25% drop in full-year profit on lower gold sales and higher production costs.
Adjusted EBITDA fell to US$329mln (£252mln), from US$438mln in 2020, as revenue declined 12% to US$733mln.
“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,” said chief executive Martin Horgan. “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.”
The FTSE 250 company produced 415,370 ounces of gold during the year, down 8% from 2020, and reiterated its 2022 output target of 430,000 to 460,000 ounces.
It expects production in the first half of this year to account for just 45% of the annual target because of lower scheduled tonnes from its Sukari underground operations as the mine transitions to owner-operator.
READ: Centamin to take over as operator of underground mining at flagship Sukari gold mine
The company plans to pay a final dividend of 5 US cents per share, taking the total dividend to 9 cents a share, and said its board will recommend a minimum dividend payout for 2022 of 5 cents per share.
It also announced that Youssef El-Raghy, its country manager in Egypt, will be retiring from 1 April 2022 after 28 years with the company and named Amr Hassouna as his replacement.
The shares were down 6.7% in mid morning trading, compared to a 2.0% rise in the FTSE 250.