Back to the complete issue
Monday, 22 March 2021

Centamin profits up 82% in 2020 despite lower production

The EGX30 fell 2.5% at today’s close on turnover of EGP 936 mn (36.4% below the 90-day average). Foreign investors were net sellers. The index is down 2.8% YTD.

In the green: Edita (+1.5%), Ibnsina Pharma (+1.0%)

In the red: AMOC (-7.3%), Qalaa Holdings (-5.9%) and Orascom Financial (-5.6%).


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.

The increase comes despite operational troubles at the Centamin-operated Sukkari gold mine in Egypt’s Eastern Desert, which saw production from the mine fall 46% during 4Q2020.

“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.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2021 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; and Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Abu Auf (tax ID: 584-628-846), the leading health foodmaker in Egypt and the region.