Gold miner Centamin generated record revenue in 2020 as the coronavirus pandemic pushed precious metal prices higher around the world.
The firm reported revenue of $829m in 2020, from gold sales of 468,681 ounces at an average realised gold price of $1,766 per ounce sold.
The gold mining company recorded profit before tax of $315m and EBITDA of $439m, at a 53 per cent EBITDA margin.
Centamin produced around 6.0 per cent fewer ounces of gold in 2020 than it did in 2019, however it sold gold in 2020 for 26 per cent more per ounce, making 2020 about 82 per cent more profitable, and increasing revenue by 27 per cent for the year.
It was one of a number of firms to benefit from a surge in gold prices during the pandemic, as investors moved their money out of equities and into “safe haven” assets.
Brokers Peel Hunt said that earnings at the firm, which runs the Sukari gold mine in Egypt, were in line with expectations.
The firm is also exploring upside opportunities for the base case at the mine in a bid to maximise profits from the asset.
Martin Horgan, CEO of Centamin, said: “Centamin delivered another solid financial performance in 2020, driven primarily by improved commodity pricing, our comprehensive response to Covid-19 and an improvement in operating efficiencies and productivity.
“Ultimately, the group generated significant free cash flow of $142m, a 91 per cent increase, making it possible to propose and pay dividends attributable to 2020 of $104m further demonstrating Centamin’s commitment to delivering returns to our shareholders.
“We continue to maintain a strong and flexible balance sheet, finishing the year with $310m in cash and liquid assets at 31 December 2020.”
By the mid-morning Centamin’s share price was down 0.5 per cent.