Stock Market News
Centamin annual profit falls 16%
Centamin's annual profit fell as revenue decreased and costs rose at the miner that operates Egypt's only gold mine.
Pre-tax profit for the year to the end of December dropped 16% to $224.1m (£158m). Revenue slipped to $675.5m from $687.4m as cost of sales rose to $414.3m from $389.3m.
Centamin said revenue benefited from a slight increase in the price of gold but that this was offset by a fall in gold sales. Cost increases included higher fuel and chemical reagent charges and capital expenses from planned fleet rebuilds.
The company, whose main asset is Egypt's Sukari mine, proposed a final dividend of 10 cents a share, resulting in an annual dividend of 12.5 cents a share - down from 15.5 cents a year earlier.
Josef El-Raghy, Centamin's chairman, said: "The central tenet of our corporate strategy is delivering returns to stakeholders. Following a strong operational and financial performance throughout the year, the board of directors is delighted to propose a final dividend for 2017 of 10 US cents per share.
"The past year has seen the company firmly consolidate its position as one of the world's leading low-cost gold producers. Sukari has maintained cash costs in the lowest quartile in the industry."
Yuen Low, an analyst at Shore Capital, said Centamin's financial performance was good but that investors may be disappointed that the results were slightly weaker than 2016.
"The balance sheet remains in very good health, with current assets far exceeding both current and total liabilities, and the company remains debt-free and unhedged," Low said.
Pre-tax profit for the year to the end of December dropped 16% to $224.1m (£158m). Revenue slipped to $675.5m from $687.4m as cost of sales rose to $414.3m from $389.3m.
Centamin said revenue benefited from a slight increase in the price of gold but that this was offset by a fall in gold sales. Cost increases included higher fuel and chemical reagent charges and capital expenses from planned fleet rebuilds.
The company, whose main asset is Egypt's Sukari mine, proposed a final dividend of 10 cents a share, resulting in an annual dividend of 12.5 cents a share - down from 15.5 cents a year earlier.
Josef El-Raghy, Centamin's chairman, said: "The central tenet of our corporate strategy is delivering returns to stakeholders. Following a strong operational and financial performance throughout the year, the board of directors is delighted to propose a final dividend for 2017 of 10 US cents per share.
"The past year has seen the company firmly consolidate its position as one of the world's leading low-cost gold producers. Sukari has maintained cash costs in the lowest quartile in the industry."
Yuen Low, an analyst at Shore Capital, said Centamin's financial performance was good but that investors may be disappointed that the results were slightly weaker than 2016.
"The balance sheet remains in very good health, with current assets far exceeding both current and total liabilities, and the company remains debt-free and unhedged," Low said.
Related share prices |
---|
Centamin (DI) (CEY) share price |
Stock News headlines are gathered from financial news sources around the web. Views and opinions on each item are from their respective authors and website. They are not opinions of LiveCharts.co.uk
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- NEXT share price
- Diageo share price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- THG Share Price
- Aviva Share Price
- Boil Share price
- Easyjet Share Price
- Genedrive Share Price
- SSE Share Price
- IAG Share Price
- Boohoo share price
- HE1 share price
- AVCT share price
- BOOM share price