Centamin keeps guidance, declares interim dividend

Centamin PLC (LSE: CEY; TSX: CEE) reported a year-on-year rise in quarterly production on Tuesday with 125,090 ounces of gold produced from its Sukari gold mine during Q1, in line with annual guidance.

As a result, the gold miner has maintained its full year 2020 guidance of 510,000-540,000 ounces at an AISC of between $870-920/oz, adding that operations have not been impacted by the covid-19 pandemic thus far. The company previously stated that it had stockpiled enough critical supplies to last until the end of June.

Revenue for the quarter came in at $222.2 million, generated from 139,784 ounces in gold sales at an average realized price of $1,587/oz.

However, Centamin warned that the second quarter is scheduled to be a lower production period with an estimated output of 115,000 ounces, reflecting a reduction in underground output.

The company said it will defer non-essential capital expenditure, including the Sukari solar plant, as a precautionary measure to protect the health of its workforce. This is in order to minimize contractors and other non-operating traffic on and off-site, while restrictions related to covid-19 remain in place.

Concurrent with Q1 results, Centamin’s board of directors has also declared a 2020 first interim dividend of six cents per share payable on May 15.

The interim dividend would directly replace the previously proposed 2019 final dividend (six cents per share) to provide shareholders with certainty and to expedite the payment, the company said.