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Highlights

  • Centamin PLC (LSE: CEY) is an FTSE 250 listed gold mining entity engaged in the exploration and development of minerals.
  • During H1 FY23, its total gold production was measured at 220,562 oz (ounces), up 8% as compared to the total gold production of 203,898 oz in pcp.
  • CEY secured a total revenue of USD 61 million versus USD 381.78 million in H1 FY22 during the six-month period.

FTSE 250 listed gold mining entity Centamin PLC (LSE: CEY) is engaged in the exploration and development of minerals. During the first half of the fiscal year 2023, the company posted improved production and average realised price, and reduced operating costs.  

The recent turmoil in the global markets and rising inflation can lead to safe-haven buying, of which gold is one of the preferred asset classes. The selling price of the metals increased and stood at an average realized price of USD 1,969/oz (ounce) during the reporting period against the average realized price of USD 1,902/oz in H1 FY22.

In H1 FY23, there was a total gold production of 220,562 oz (ounces), up 8% as compared to the total gold production of 203,898 oz in the previous corresponding period. The cash costs of production dropped from USD 931/ oz in H1 FY22 to USD 849/ oz in H1 FY23. Moreover, the AISC cost of gold sold decreased from USD 1,446 in H1 FY22 to USD 1,228/oz during the reported H1 FY23.

During the six-month period, the company secured a total revenue of USD 425.61 million versus USD 381.78 million in H1 FY22. The increase of 11.5% can be attributed to higher quantity of gold sold at a higher average realized sales price in H1 FY23.

The firm will be paying an interim dividend of US 2.0 cents per share for the period ending 30 June 2023, in September 2023.

What’s coming forth?
For the full year 2023, Centamin is looking forward to achieve total gold production target of 450,000-480,000 oz. The company has announced its cash cost guidance to range from USD 840/ oz to USD 990/ oz for FY23, while the AISC is likely to be between USD 1,250/ oz and USD 1,400/ oz sold.

Top 10 shareholders

The top 10 shareholders collectively form ~48.75% of the total shareholdings. Van Eck Associates Corporation holds the maximum number of shares with ~9.52% shareholding, followed by BlackRock Investment Management (UK) Ltd. with ~6.52% shareholding, as depicted in the chart below.

 

Stock Price Performance
The stock price of the company declined by 16.01% in the last three months. It has dropped by over 10% in the last six months. The stock’s 52-week low and 52-week high price stands at GBX 81.40 and GBX 127.60, respectively.

 

Please note markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 04 August 2023. The reference data in this report has been partly sourced from EODHD/Others.