Centamin profit soars on higher gold price

Centamin's annual profit soared as the higher price of gold more than offset a dip in production during the Covid-19 crisis.

Pretax profit jumped 82% to $315m (£228m) in the year to end of December as revenue rose 27% to a record $829m. Earnings before interest, tax, depreciation and amortisation increased 54% to $439m.

The FTSE 250 gold miner proposed a final dividend of 3 cents a share, taking the total 2020 payout to 15 cents a share or $104m. Centamin said it would pay at least $105m of dividends in 2021.

Centamin produced 452,320 oz of gold, down 6% from the year before and the average realised price rose 26% to $1,766 per ounce as demand increased during the crisis. The company also cut $44m of gross costs and generated $142m of cash.

Chief executive Martin Horgan said: "Centamin delivered another solid financial performance in 2020, driven primarily by improved commodity pricing, our comprehensive response to Covid-19 and an improvement in operating efficiencies and productivity."

The company reiterated its outlook for 2021, predicting gold production of 400,000 to 430,000 oz, at cash costs of $800-900 per oz produced and all-in sustaining costs of $1,150- 1,250 per oz sold.