Miner Centamin shares rocket as firm reveals dividend for 2014

Caitlin Morrison
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Shares in gold miner Centamin were up by 16.09 per cent yesterday, after the company announced a dividend of 2.86 cents per share for 2014.

The firm said this represents a payout of 30 per cent of its free cash flow, and chief executive Andrew Pardey said investors had reacted so positively to news of the payout because it is such a rare occurrence in the mining sector.

Revenue dipped from $504m (£338m) to $473m last year, and pre-tax profit fell from $184m to $82m.

Weak gold prices were partly to blame for the disappointing figures, according to the firm, however the company highlighted a successful expansion at its Sukari gold mine, in Egypt, which has now moved out of the investment phase. The company said it had moved instead “into a sustainable period of free cash flow generation over an expected minimum 20-year mine life”.

The company said that no capital expenditure would be allocated towards expansion or new projects during 2015.

UPDATE: This article has been modified to clarify the dividend value and the company's capital expenditure intentions.