Egypt-focused gold miner Centamin’s results for the six months ended June 30 indicate that the group is on track to meet its full-year guidance; and that it continues to deliver significant shareholder value.

The company on Wednesday announced $46.2-million as an interim dividend, taking total distributions to in excess of $500-million since 2014.

“Six months into our tenth year of commercial production, Centamin continues to make good progress delivering on its corporate strategy. The company is a high-margin gold producer, delivering reliable stakeholder returns through strong free cash flow generation,” CEO Andrew Pardey said in a statement.

“The board’s decision to increase the interim dividend was based on the company’s strong financial position, assessment of near and medium-term capital allocation and confidence in future cash flow generation,” he added.

Gross revenue for the six-month period was $292.4-million from gold sales of 224 129 oz at an average realised gold price of $1 305/oz.

Cash cost of production was $692/oz, within yearly guidance of $675/oz to $725/oz.

All-in sustaining cost (AISC) was $940/oz sold, within yearly guidance of $890/oz to $950/oz.

The group achieved earnings before interest, taxes, depreciation and amortisation (Ebitda) of $117.1-million, a 41% Ebitda margin and profit before tax of $59.6-million.

Total direct financial payments in Egypt, by way of profit share and royalties were $48.1-million.

Total group sustaining, development and growth capital and exploration expenditure was $58.4-million, in line with yearly guidance.

The company recorded a strong and flexible balance sheet with no debt, no hedging and cash and liquid assets of $326.6-million, at period end, after payment in May of $34.7-million for the 2018 final dividend.

OUTLOOK

Centamin has maintained it guidance for the full-year for gold production of 490 000 oz to 520 000 oz, at a cash cost of $675/oz to $725/oz produced and AICS of $890/oz to $950/oz sold.

Production and free cash flow are expected to be stronger in the second half of the year, predominantly driven by improved grades from the Sukari openpit.

Costs are set to trend downwards in line with the expected increased production in the second half.

Centamin’s baseline outlook for production in 2020 and 2021 is for 510 000 oz to 540 000 oz a year, at cash cost of $630/oz to $680/oz produced and AISC of $870/oz to $920/oz sold.