Report on Payments to Governments

RNS Number : 7115C

Centamin PLC

30 June 2016

 

For immediate release

30 June 2016

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

(LSE:CEY, TSX:CEE)

Report on Payments to Governments

Background

This report provides an overview of the payments the Company and its subsidiaries have made to governments during the year ended 31 December 2015, as required by the Reports on Payments to Governments Regulations 2014 as amended (the Regulations) and DTR 4.3A.

This table has been prepared in accordance with the categories and requirements in the Regulations, as further detailed in the footnotes.  

Payments to governments made during the year ended 31 December 2015

Type of payment	Notes	Egypt	Burkina Faso	Cote d'Ivoire	Ethiopia	Total
		US$	US$	US$	US$	US$
Advance on profit share	(i)	5,000,000				5,000,000
Corporate taxes	(ii)	8,195				8,195
Royalties	(iii)	15,836,592				15,836,592
Exploration licence fees			29,453	10,071	21,074	60,598
Mining and other licence fees		221,470	662,250			883,720
Infrastructure improvements	(iv)	1,095,868				1,095,868
Total	(v)	22,162,125	691,703	10,071	21,074	22,884,973

(i)           With a view to demonstrating goodwill towards the Egyptian government, Centamin (through its subsidiary PGM), has to date made advance payments to the Egyptian Mineral Resources Authority (EMRA) totalling US$28,750,000. US$5,000,000 was made during the 31 December 2015 calendar year.  These payments will be netted off against future profit share with EMRA.  The net operating revenue surplus, after royalty and cost recovery ("Profit Share") will be split 50:50 between PGM and EMRA, with an additional 10% of proceeds paid to PGM in the first two years of Profit Share and an additional 5% in the following two years. It is expected that there will be Profit Share for the Sukari Gold Mine financial year ending 30 June 2017 based on budgeted production, operating expense forecasts and gold price.

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

(iii)         Payable to the Egyptian government.

(iv)         Construction of power plant and equipment in Marsa Alam, Egypt.

(v)          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.

This report is available on the Company's website at www.centamin.com/investors/regulatory-news.

Centamin remains committed to increasing its capital investment in the regions in which it operates to ensure that all stakeholders continue to benefit from its operations.

For more information please contact:

Centamin plc Josef El-Raghy, Chairman Andrew Pardey, Chief Executive Officer Andy Davidson, Head of Investor Relations ([e-mail]) [phone]

Buchanan Bobby Morse + 44 (0) 20 7466 5000

 

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