Centamin (DI) (CEY)

Sector:

Mining

Index:

FTSE 250

103.00p
   
  • Change Today:
      1.15p
  • 52 Week High: 232.10
  • 52 Week Low: 100.00
  • Currency: UK Pounds
  • Shares Issued: 1,156.45m
  • Volume: 4,674,500
  • Market Cap: £1,191.14m
  • RiskGrade: 204

Centamin upbeat on results of West Africa portfolio review

By Josh White

Date: Thursday 27 May 2021

LONDON (ShareCast) - (Sharecast News) - Centamin announced the results of its review of its West African exploration portfolio, following which it has approved the start of a pre-feasibility study at Doropo, a further exploration programme at ABC, and a review of the third-party development options at Batie West.
The FTSE 250 company said the review, which began in the second half of 2020, was designed to evaluate the potential development prospects of the portfolio, to rank each project, and to define the pathway to realising value.

It said the Doropo Project showed "strong" development potential, with the completion of a positive preliminary economic assessment showing a post-tax net present value of $234m (£165.65m), with a 21% internal rate of return at a gold price of $1,450 per ounce.

At a consensus gold price of $1,829 per ounce, the post-tax net present value was given as $487m, with a 33% internal rate of return.

Total development capital expenditure at Doropo was expected to be $275m, including a 15% contingency, while the life-of-mine was set at 13 years, based on the updated mineral resource estimate of 0.16 million measured and indicated ounces and 5.21 million inferred ounces of gold, with potential to further increase gold resources across the permits.

Average annual gold production was expected to be 207,800 ounces for the first five years, averaging 150,956 ounces over the life-of-mine, for a total of two million ounces produced at an average all-in sustaining cost of $904 per ounce.

Centamin's board said it had approved a spend of $14m to advance the project to the pre-feasibility study stage by mid-2022.

At the ABC Project, Centamin found "strong" priority greenfield target generation along the 60 kilometre Lolosso Gold Corridor, approving a further $3m exploration programme for the Kona and FarakoNafana permits for the period to June 2022.

The preliminary economic assessment for the Batie West Project also delivered positive results, with a post-tax net present value of $63m with an 11% internal rate of return at a gold price of $1,450 per ounce.

At the consensus gold price, the post-tax net present value would be $282m, while the internal rate of return would rise to 26%.

Total development capital expenditure was set at $265m, including a 15% contingency, while the life-of-mine was expected to be 8.5 years based on the updated mineral resource estimate of 2.13 million measures and indicated ounces and 0.1 million inferred ounces of gold.

Average annual gold production would be 139,994 ounces over the life-of-mine, for a total production of 1.2 million ounces of gold at an average all-in sustaining cost of $998 per ounce.

The board said it had approved the assessment of third-party development options, as the project did not currently meet Centamin's investment criteria.

"Building a strong active growth pipeline is central to our strategy, while maintaining our capital allocation discipline," said chief executive officer Martin Horgan.

"Today's announcement of a positive preliminary economic study at Doropo and the exploration potential at the earlier stage ABC, demonstrate the quality and potential of our portfolio.

"The Batie West Project has potential to deliver a profitable mine, but not one that would currently meet our strict investment criteria."

Horgan said the company was now initiating a review of development options for that asset.

"The Doropo Project is very exciting and is our priority growth target outside of Egypt, showing excellent potential to become Centamin's second mine.

"Our highly experienced team has proven expertise at delivering successful gold projects in West Africa and will now commence the pre-feasibility study, the results of which we look forward to announcing in mid-2022."

At 0856 BST, shares in Centamin were down 4.05% at 116.35p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Centamin (DI) Market Data

Currency UK Pounds
Share Price 103.00p
Change Today 1.15p
% Change 1.13 %
52 Week High 232.10
52 Week Low 100.00
Volume 4,674,500
Shares Issued 1,156.45m
Market Cap £1,191.14m
RiskGrade 204

Centamin (DI) Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
77.62% above the market average77.62% above the market average77.62% above the market average77.62% above the market average77.62% above the market average
71.9% below the sector average71.9% below the sector average71.9% below the sector average71.9% below the sector average71.9% below the sector average
Price Trend
79.32% below the market average79.32% below the market average79.32% below the market average79.32% below the market average79.32% below the market average
70.99% below the sector average70.99% below the sector average70.99% below the sector average70.99% below the sector average70.99% below the sector average
Income
91.25% above the market average91.25% above the market average91.25% above the market average91.25% above the market average91.25% above the market average
20.00% above the sector average20.00% above the sector average20.00% above the sector average20.00% above the sector average20.00% above the sector average
Growth
89.65% above the market average89.65% above the market average89.65% above the market average89.65% above the market average89.65% above the market average
51.61% above the sector average51.61% above the sector average51.61% above the sector average51.61% above the sector average51.61% above the sector average

What The Brokers Say

Strong Buy 6
Buy 0
Neutral 4
Sell 0
Strong Sell 1
Total 11
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Centamin (DI) Dividends

  Latest Previous
  Final 2nd Interim
Ex-Div 20-May-21 13-Aug-20
Paid 15-Jun-21 11-Sep-20
Amount 3.00¢ 6.00¢

Trades for 27-Jul-2021

Time Volume / Share Price
16:35 829,304 @ 102.94p
16:35 1,106,601 @ 103.00p
16:29 15 @ 103.05p
16:29 23 @ 103.05p
16:29 29 @ 103.05p

Centamin (DI) Key Personnel

CFO Ross Jerrard
CEO Martin Horgan

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