Centamin profits up 82% in 2020 despite lower production
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EARNINGS WATCH- Gold miner Centamin’s annual net profits rose 82% y-o-y to USD 315 mn in FY2020, thanks to record revenues brought about by soaring gold prices, according to its annual earnings statement (pdf) released today. Revenues increased by 27% to USD 829 mn, despite production falling 6%, after gold prices hit record highs on concerns about the pandemic.
“Despite lower production output, we delivered another strong financial performance in 2020, benefiting from improved commodity pricing, our rapid response to covid-19 and continuous dedication to improve operating efficiencies and productivity,” CEO Martin Horgan said.
Moving forward, Centamin will continue to review operations at the Sukari mine to cut back on costs and raise productivity, Hogan said. Phase two of the review, which is now ongoing, will identify more opportunities for exploration and efficiency improvements. The company had announced late last year that it would invest almost USD 600 mn into Sukari between 2021 and 2024 to up production from 445-455k oz currently to 450-500k oz by 2024.