Shares in FTSE 250 gold miner Centamin (CEY) traded flat at 104.8p despite the firm cashing in on the surge in the gold price last year after reporting record revenue for 2020 and soaring profit.

For the year ended 31 December 2020, pre-tax profit grew 82% to $315 million year-on-year with EBITDA standing at $439 million at a 53% margin, while group free cash flow jumped 91% to $142 million.

Revenue climbed 27% to a record $828.7 million, which was generated from gold sales of 468,681 ounces at an average realised gold price of $1,766 per ounce sold, up 26% from a year earlier. The company’s board has a proposed a final dividend of $0.03 per share, taking the total dividend for 2020 to $0.15 per share, equivalent to a 9.5% yield at the current share price.

Gold production however was down 6% to 452,320 ounces in a year which Centamin failed to fully capitalize on the gold rally as its encountered operational problems at its Sukari mine, its only producing asset.


Having reached well over 200p last summer and as high as 230p as the gold price hit an all-time high, shares in Centamin have tumbled over the last six months with a retreat in the gold price as vaccine optimism gripped markets exacerbated by the miner having to temporarily halt production at Sukari in the fourth quarter of 2020 due to a safety issue.

The shares took a big hit in October when it reduced free cash flow expectations as it admitted production at Sukari will undershoot and costs exceed expectations for both 2020 and 2021.

For this year, Centamin is forecasting lower gold production than 2020 at 400,000 to 430,000 ounces, with a less than ideal all-in sustaining cost (AISC) of $1,150-1,250 per ounce sold. For reference, any AISC under $1,000 per ounce is considered good for gold miners.


Meanwhile another gold miner reporting full year results today is Caledonia Mining (CMCL:AIM), with its shares rising 5.4% to £11.91 as its numbers were better received by investors.

The miner reported gross revenues of $100 million for 2020, compared to $75.8 million the year before, and EBITDA of $43.3 million, up from $29.9 million, at a margin of 43% compared to 39% the previous year.

It produced 57,900 ounces of gold in the year, up from 55,100 in 2019 after record annual production at its Blanket Mine, and for 2021 its guiding for even higher gold production between 61,000-67,000 ounces.


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Issue Date: 22 Mar 2021