Centamin’s revenues reached $449 million in H1 2020 compared to $288 million in H1 2019, increasing by 56% year-on-year (YoY), according to a press release.

Per the statement, Centamin’s production increased by 9%, producing 256,084 ounces (oz) of gold in H1 2020 compared to 234,096 oz in 2019. The company’s gold sales amounted to 270,529 oz at an average realized gold price of $1,657/oz against 224,129 oz sold in H1 2019, denoting a 21% increase. 

The company generated $102 million free cash flow from its operations, denoting a 186% YoY improvement driven by increased gold sales and a stronger gold price. Moreover, the state has earned $13 million in royalty payments and the company paid $101 million in profit shares to the Egyptian Mineral Resources Authority (EMRA). It should be noted that on July 1, the profit share mechanism between EMRA and Centamin changed from 55:45 to 50:50 in favor of Centamin and will remain as such for the remainder of the tenure.

Centamin affirmed that its 2020 outlook of producing 510,000-525,000 oz of gold has not changed. The capital expenditure (CAPEX) program remains unchanged as well at $150-170 million.

CEO Martin Horgan stated that “This operational delivery has enabled us to benefit from the recent strength in the gold price. Combined with our disciplined cost management and unhedged, debt-free balance sheet, Centamin has generated meaningful free cash flow leading to a 50% increase in the interim dividend to $0.6 per share.”