These financial results from Centamin (CEY) show the Egypt-focused gold miner came through a very turbulent 2012 in solid financial shape. Gold production, revenues and profits all increased slightly over the prior year. But that didn't stop shareholders from feeling the full brunt of political discord in Egypt as the company's share price plummeted over 80 per cent in the final months of the year over fears of mine nationalisation.
First, a low-level administrative court in the country annulled Centamin's mining licence. Next, Egypt's national oil company abruptly cut off the supply of diesel fuel to the Sukari mine, claiming back payments were due. Finally, customs officials delayed the company's export shipments of gold.
Yet Centamin eventually managed to smooth over the problems and keep production ticking along nicely, with the latest news being Egypt's Supreme Administrative Court has suspended enforcement of the mine licence annulment until a final decision is made on the merits of an appeal. Centamin's management admits the process could be "lengthy", but it's reasonable to assume a positive outcome will occur in the end.
Broker RBC Capital expects EPS to rise from 18¢ to 30¢ in 2013.
CENTAMIN (CEY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 54p | MARKET VALUE: | £595m | |
| TOUCH: | 53-54p | 12-MONTH HIGH: | 108p | LOW: 19p |
| DIVIDEND YIELD: | nil | PE RATIO: | 4 | |
| NET ASSET VALUE: | 93¢ | NET CASH: | $147m | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
| 2011 | 340 | 194 | 17.9 | nil |
| 2012 | 426 | 199 | 18.3 | nil |
| % change | +25 | +3 | +2 | - |
£1=$1.51 | ||||
