Payments to Government

RNS Number : 9367Q
Centamin PLC
25 February 2019
 

For immediate release

 25 February 2019

 

 

 

Centamin plc ("Centamin" or "the Company")

(LSE:CEY, TSX:CEE)

 

 

Payments to Government

 

The Reports on Payments to Governments Regulations (the "Regulations") came into force on 1 December 2014. Whilst the Regulations are part of UK law, they apply to the Company by virtue of its listing on the London Stock Exchange (pursuant to Disclosure and Transparency Rule 4.3A). The Regulations require companies active in the extractive industries to report certain payments they have made to their host governments in the form of taxes, bonuses, royalties, fees and for infrastructure improvements. The Regulations implement Chapter 10 of the EU Accounting Directive. The Regulations are part of an EUwide effort to curb corruption and promote transparency in the extractives sector. Their stated objectives are to provide citizens of resourcerich countries with the information they need to hold their governments to account; and to provide greater insight (for investors and all other stakeholders) into how the sector operates and the range of economic contributions that can result.

 

The Regulations require disclosure of the following:

 

a)   production entitlements;

b)   taxes levied on the income, production or profits of companies, excluding taxes levied on consumption such as value added taxes, personal income taxes or sales taxes;

c)   royalties;

d)   dividends, other than dividends paid to a government as an ordinary shareholder unless they are paid in lieu of a production entitlement or royalty;

e)   signature, discovery and production bonuses;

f)    licence fees, rental fees, entry fees and other considerations for licences and/or concessions; and

g)   payments for infrastructure improvements.

 

Where a payment or series of related payments do not exceed GBP86,000 they do not need to be disclosed but, in the interests of transparency, the Company has included these costs.

 

The Company is also subject to equivalent Canadian legislation - the Extractive Sector Transparency Measures Act ("ESTMA") which came into force on 1 June 2015. Canada's requirements are aligned with those in the EU Directive and this report is deemed equivalent for Canadian purposes.

 

Payments in this report have been disclosed in US dollars, which is the Company's reporting currency. Where actual payments have been made in a local currency they have been converted using the prevailing exchange rate at the time of the payment.

 

 

 

Summary table showing payments to governments made during the year ended 31 December 2018 in US$

 

Type

 

Notes

Egypt

Burkina Faso

Côte d'Ivoire

Total

Profit share

 

76,390,698

-

-

76,390,698

Corporate taxes

(i)

1,161,773

-

-

1,161,773

Royalties

 

21,004,328

-

-

21,004,328

Exploration licence fees

 

-

67,919

21,566

89,485

Mining and other licence fees

 

150,358

827,099

-

977,457

 

 

(ii)

98,707,157

895,018

21,566

99,623,741

             

(i)    In accordance with the Regulations, this figure excludes taxes levied on consumption such as VAT, payroll or sales taxes.

(ii)   Other types of payments that are required to be disclosed in accordance with the Regulations include production entitlements; signature, discovery and production bonuses; and dividends. The Company and its subsidiaries did not make any such payments to governments during the year.

 

Payments split by payee during the year ended 31 December 2018 in US$

 

 

 

 

 

 

Licence or 

 

 

 

Country/Project

Notes

Payee

Royalties

Profit share

Taxes

permit fees

Other

Total

Egypt:

 

 

 

 

 

 

 

 

Sukari Gold Mine

 

Egyptian Mineral Resources Authority

21,004,328

76,390,698

-

-

-

97,395,026

 

 

Egyptian 

 

 

 

 

 

 

 

 

Tax Authority

-

-

1,161,773

-

-

1,161,773

 

 

Other payees

-

-

-

150,358

-

150,358

Burkina Faso:

 

 

 

 

 

 

 

 

Konkera project

(iii)

Ministry 

 

 

 

 

 

 

 

 

of Mines

-

-

-

827,099

-

827,099

 

 

Burkina Faso 

 

 

 

 

 

 

 

 

Tax Office

-

-

-

-

-

-

Burkina Faso:

 

 

 

 

 

 

 

 

Exploration projects

 

Ministry 

 

 

 

 

 

 

 

 

of Mines

-

-

-

67,919

-

67,919

 

 

Burkina Faso

 

 

 

 

 

 

 

 

 Tax Office

-

-

-

-

-

-

Côte d'Ivoire:

 

 

 

 

 

 

 

 

Exploration projects

(iii)

Ministry 

 

 

 

 

 

 

 

 

of Mines

-

-

-

21,566

-

21,566

 

 

Côte d'Ivoire 

 

 

 

 

 

 

 

 

Tax Office

-

-

-

-

-

-

 

 

 

21,004,328

76,390,698

1,161,773

1,066,942

-

99,623,741

                         

(iii) In accordance with the definition of 'project' in the Regulations, the Company treats its exploration licence holding areas in Côte d'Ivoire and Burkina Faso as single projects each for the purposes of the Regulations. This is because the licence areas are operationally and geographically linked.

 

For further information, please visit www.centamin.com or contact:

 

Centamin plc

Andrew Pardey, Chief Executive Officer

Alexandra Carse, Investor Relations

+44 (0) 7700 713 738

alexandra.carse@centamin.je

 

Buchanan Communications

Bobby Morse

Chris Judd

+ 44 (0) 20 7466 5000

centamin@buchanan.uk.com

 

 

 

This announcement contains ongoing regulated information.

 

LEI: 213800PDI9G7OUKLPV84

Company No: 109180

 

 


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