Centamin plc says its EBITDA climbed by 54% in 2020

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in his free… read more.
on Mar 22, 2021
  • Centamin plc says its full-year EBITDA climbed by 54% in 2020.
  • The gold mining firm reports £112.58 million of annual net profit.
  • Centamin declares 2.16 pence a share of a final dividend on Monday.

Centamin plc (LON: CEY) said on Monday that its profit in 2020 saw a significant increase as gold prices remained upbeat last year. On the back of its hawkish full-year performance, the London-listed firm reaffirmed its guidance for 2021 as well.

Centamin plc opened at 103 pence per share on Monday and jumped to a high of 106.45 pence per share. The stock, however, lost most of its intraday gain in the next few hours and is currently trading at 104 pence per share. In comparison, Centamin had started the year 2021 at a per-share price of a higher 134 pence. The price action should come in handy if you are interested in investing in the stock market.

Centamin reports £112.58 million of full-year net profit

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Centamin said that its net profit in 2020 came in at £112.58 million. In the previous year, its net profit was capped at a lower £63.14 million. The increase in the Jersey-based company’s full-year net profit was surprising considering lower production of gold and higher costs per ounce.

In its earlier report published in August, Centamin reported a 56% decline in revenue in the fiscal first half.

The gold mining firm further highlighted on Monday that its earnings before interest, taxes, depreciation and amortisation (EBITDA) registered at £316.44 million in the recently concluded year that represents a 54% annualised growth. In comparison, market consensus for Centamin’s full-year EBITDA stood at a slightly lower £314.49 million.

In separate news from the United Kingdom, the British multinational investment bank Barclays plc expanded its private bank to France and Italy.

Centamin declares 2.16 pence per share of a final dividend

The FTSE 250 listed company announced 2.16 pence per share of a final dividend on Monday that pushed its full-year pay-out up, to 6.49 pence per share. On top of that, Centamin also expressed plans of paying an aggregate dividend worth £75.77 million at least.

For 2021, Centamin forecasts up to 430 thousand ounces of gold production. All-in sustaining costs, as per the company, are expected to fall in the range of £829.89 million to £902.06 per ounce.   

Centamin plc remained almost flat on average in the stock market last year with an annual decline of close to 2%. At the time of writing, the Jersey-based gold mining company has a market cap of £1.21 billion and a price to earnings ratio of 11.77.

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