Results for the Year Ended 31 December 2015

RNS Number : 6673S

Centamin PLC

21 March 2016

For immediate release

21 March 2016

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

(LSE:CEY, TSX:CEE)

Centamin plc Results for the Year Ended 31 December 2015

Josef El-Raghy, Chairman of Centamin, commented: "During 2015 Centamin has maintained its strategic focus on generating shareholder returns and value-accretive growth, despite the continued gold price weakness and widespread challenges across the industry. Our flagship Sukari Gold Mine has continued to deliver substantial free cash flows, driven by a sixth successive year of production growth and industry competitive costs. The strong performance of our core asset, together with the Company's robust financial position, allowed the board of directors to approve an interim 2015 payment of 0.97 US cents per share (versus a 2014 interim payment of 0.87 US cents per share). I am now pleased to announce the approval of a final dividend for 2015 of 1.97 US cents per share. This represents a full year pay-out of approximately US$33.7 million, which sits at the top end of our dividend policy to pay out 15-30% of our net free cash flow."

Operational Highlights^(1),(2)

· Production of 439,072 ounces, a 16% increase on 2014 and within the revised guidance range. Q4 2015 production of 117,644 ounces was within Sukari's target annualised rate of 450,000 to 500,000 ounces.

· Cash operating costs of US$713 per ounce was down from US$729 per ounce in 2014, mainly due to lower fuel prices, although marginally above guidance US$700 per ounce despite higher production than originally forecast.

· All-in sustaining costs (AISC) of US$885 per ounce was below our original forecast of US$950 per ounce, mainly due to the re-scheduling of certain sustaining capital cost items, as well as the higher production.

· Process plant reached minimum expected long-term rate of 11 million tonnes per annum in Q4 2015.

· Record mining rates from open pit (up 28% on 2014) and underground (up 20% on 2014).

· 2016 guidance of 470,000 ounces gold at US$680 per ounce cash cost of production and US$900 AISC

· Sukari total Mineral Reserve estimate of 8.8 Moz, up 7% from 8.2 Moz at 30 September 2013. Continued positive results from underground drilling support our expectation for further reserve growth.

· Exploration in Burkina Faso and Côte d'Ivoire outlined areas with potential for near-surface and high-grade economic mineralisation. These prospects will be targeted for resource growth during 2016.

Financial Highlights^(1),(2)

· EBITDA US$152 million, down 8% on 2014, due to lower gold prices and also changes in production inventories.

· Basic earnings per share 4.51 US cents, down 37% on prior year, impacted by a US$6.3 million write-off following termination of exploration in Ethiopia and a US$6.8 million Australian tax charge on foreign exchange gains.

· Centamin remains debt-free and unhedged with cash, bullion on hand, gold sales receivable and available-for-sale financial assets of US$230.7 million at 31 December 2015; a material increase on prior year US$162.8 million.

· Proposed final dividend of 1.97 US cents/share; total 2015 dividend payout of 2.94 USc/sh (c.US$33.7 million).

Legal Developments in Egypt

· The Supreme Administrative Court appeal and Diesel Fuel Court Case are both on-going. With the potential for the legal process in Egypt to be lengthy there may be a number of hearings and adjournments before decisions are reached. Any enforcement of the Administrative Court decision has been suspended pending the appeal ruling.

		Q4 2015	Q4 2014	2015	2014
Gold produced	ounces	117,644	128,115	439,072	377,261
Gold sold	ounces	117,348	125,416	437,568	375,300
Cash operating cost of production	US$/ounce	667	655	713	729
AISC	US$/ounce	842	815	885	912
Average realised gold price	US$/ounce	1,103	1,203	1,159	1,257
Revenue	US$'000	130,196	151,117	508,396	472,581
EBITDA	US$'000	30,589	60,749	152,189	165,474
Profit before tax	US$'000	4,747	33,819	58,407	81,562
Basic EPS	US cents	(0.19)	2.96	4.51	7.21
Cash generated from operations	US$'000	48,277	32,791	185,542	116,402

⁽¹⁾Cash cost of Production, EBITDA and cash, bullion on hand, gold sales receivables and available-for-sale financial assets are non-GAAP measures and are defined at the end of the Financial Review. AISC are as defined by the World Gold Council, the details of which can be found at www.gold.org.

⁽²⁾Basic EPS, EBITDA, Cash operating costs of production includes an exceptional provision against prepayments, recorded since Q4 2012, to reflect the removal of fuel subsidies which occurred in January 2012 (see Note 6 of the Financial Statements)

Centamin will host a conference call and webcast on Monday, 21 March 2016 at 9.00am (London, UK time) to update investors and analysts on its results. Participants may join the call by dialling one of the following two numbers, approximately 10 minutes before the start of the call. The live webcast will be available on Centamin's website at http://www.centamin.com/centamin/investors and on the link below.

UK Toll Free: 0800 279 6899

International Toll number: +44 20 3367 9433

Participant code: 418299#

Webcast link: http://vm.buchanan.uk.com/2016/centamin210316/registration.htm

A recording of the webcast will be available from 1:00pm GMT on 21 March 2016 on the website and on the link above.

________________________________

Chairman's statement

As noted at the beginning of the year, the open pit operation at Sukari progressed through the next stage of pit development in line with the long-term mine plan, resulting in below reserve-average grades during much of 2015. The underground and processing operations offset these lower grades from the open pit in the first half of the year, with above-forecast levels of productivity driving gold production in excess of our initial guidance. Sukari continued to perform well during the second half and full-year production of 439,072 ounces was within the revised guidance range of 430,000 to 440,000 ounces (originally 420,000 ounces). There was a strong end to the year as the fourth quarter saw plant throughput reach our minimum expected long-term rate of 11 million tonnes per annum, being 10% above nameplate capacity.

Full year cash operating costs improved to US$713 per ounce from US$729 per ounce in 2014, mainly driven by the decrease in fuel price, although marginally above guidance of US$700 per ounce despite the higher production than originally forecast. It is pleasing to note the fourth quarter cash operating cost of US$667 per ounce, which points towards the potential for Sukari to deliver highly-competitive cash margins, as productivity and cost efficiencies are the focus over the coming years. All-in sustaining costs (AISC) of US$885 per ounce were below our original forecast of US$950 per ounce, mainly due to the re-scheduling of certain sustaining capital cost items, as highlighted in the third quarter results statement, as well as the higher production.

In May 2015, Centamin detailed its 5-year production and cost guidance following completion of construction and commissioning of the Stage 4 plant expansion in the prior year. A seventh year of growth is forecast for 2016, with production of 470,000 ounces at a cash operating cost of US$680 per ounce and AISC of US$900 per ounce. Further growth is expected in 2017 with an annual production rate of approximately 500,000 ounces per annum, with AISC continuing to trend downwards below US$900 per ounce. Continued optimisation and increases in productivity over the medium-term, in particular within the processing and underground mining operations, offer good potential for further production growth and reductions in cash costs and AISC.

2015 revenues of US$508 million were up 8% year-on-year as an 8% fall in realised gold prices were offset by a 17% increase in gold sales. EBITDA decreased by 8% to US$152 million, mainly due to a reduction of gross operating margin as a result of the drop in gold price, and also an increased cost associated with changes in production inventories.

Profit before tax of US$58.4 million was down 28% on 2014 and earnings per share for 2015 was 4.51 cents, compared with 7.21 cents in 2014. The reduction in profit was mainly due to the decreased operating margin and also a US$6.3 million write-off following our decision towards the end of the year to cease exploration in Ethiopia. During the year the Company incurred an income tax charge of US$6.8 million in relation to foreign exchange gains on its cash holdings within Australia.

Centamin remains committed to its policy of being 100% exposed to the gold price through its unhedged position and its balance sheet remains strong with zero debt. We ended the year with US$230.7 million in cash, bullion on hand, gold sales receivables and available-for-sale financial assets. This is a material increase over the US$162.8 million at the end of 2014 and highlights the potential of the business to continue self-funding its next stages of growth from cash flows whilst maintaining a commitment to dividend payments.

Centamin made continued progress during 2015 in developing its longer-term growth objectives. At Sukari, the total combined open pit and underground mineral reserve estimate increased, net of mining depletion, by 7% to 8.8Moz, continuing to support our expectation for a mine life in excess of 20 years. Whilst the increase was partly due to lower operating costs associated with reduced fuel prices, it is pleasing to note that drilling from underground continues to improve the resource categories of our gold asset base and thereby increases the underground component of the reserve. The underground operation is an important value-driver for our business and we expect further substantial growth of the reserve over the coming years as development and exploration continues.

With the downturn in gold prices having resulted in a significant curtailment of industry spending on exploration, Centamin is in a strong position to continue investing in its long-term growth throughout the cycle. Beyond Sukari we are focussed on our extensive licence holdings within Burkina Faso and Côte d'Ivoire. Whilst these districts hold potential for several deposit types, our immediate objective is to discover and define areas of near-surface and high-grade economic mineralisation. In this respect, positive results during 2015 have seen a number of priority areas emerge which will remain the focus for resource growth during 2016. I look forward to updating you further in due course with our progress in unlocking the Company's next stage of growth from these highly prospective regions.

Whilst disciplined and sustainable growth on our existing projects remains a key focus, we continue to evaluate opportunities to grow through the acquisition of projects which offer the potential for the Company to deliver on its strategic objectives.

Developments in the two litigation actions, Diesel Fuel Oil and Concession Agreement, are described in further detail in Note 20 to the financial statements. In respect of the latter, the Company continues to believe that it has a strong legal position and, in addition, that it will ultimately benefit from law no 32 of 2014, which came into force in April 2014 and which restricts the capacity for third parties to challenge any contractual agreement between the Egyptian government and an investor. This law, whilst in force and ratified by the new parliament, is currently under review by the Supreme Constitutional Court of Egypt. After a series of delays and adjournments, the Concession Agreement appeal has now been set down for judgment on 24 May 2016. If the judgment is a final judgment, the Company expects it will be in its favour. However, it has been advised that the Egyptian legal system allows for the possibility of an interim judgment staying the appeal until the Supreme Constitutional Court has ruled on the validity of law no 32.

The group continues to benefit from the full support of the Ministry of Petroleum and the Egyptian Mineral and Resources Authority ("EMRA"), both in the Concession Agreement appeal and at the operational level. As part of our long-term strategy, we look forward to continuing to share the benefits of the Company's substantial investment in Egypt as the Sukari operation sets the stage for a new era of gold mining in the country.

At the start of the year Andrew Pardey was appointed as Chief Executive Officer ("CEO") and joined the board as an executive director from 1 February 2015. Andrew has been a driving force behind Sukari's growth into one of the world's leading gold mines and Centamin's development from a junior exploration company into one of the largest gold producers in North Africa. I am pleased to report that during Andrew's first year as CEO the Company has continued to develop and has realised its next stages of growth, whilst maintaining its strategic focus on cash flows, shareholder returns and social responsibility.

I would also like to take this opportunity to welcome Ross Jerrard as our new Chief Financial Officer ("CFO"), effective 18 April 2016. Ross joins Centamin from Deloitte Australia, where he was a partner with over twenty two years audit and advisory experience, specialising in the resources industry. He has worked in Southern Africa and the Middle East, including a three-and-a-half-year period based in Egypt, servicing a range of multinational and natural resources companies. This appointment follows the resignation of Pierre Louw who will hand over responsibilities in April 2016. We thank Pierre for his service and wish him all the best in his future endeavours.

I would like to close by thanking all those at Sukari, in Alexandria, Burkina Faso, Côte d'Ivoire, Jersey and Perth for their efforts in 2015 as Centamin continued on its journey to becoming an established, cash-generative and growing gold producer.

Your Company remains well positioned to deliver outstanding shareholder returns in the coming years. I look forward to updating you further over the course of 2016, and would welcome you to join us at our AGM, which this year will be held in Jersey on 11 May 2016.

By order of the board for and on behalf of Centamin plc.

Josef El‑Raghy

Chairman

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Final Dividend

The Directors proposed a final dividend of 1.97 US cents per share (US$0.0197) on Centamin plc ordinary shares (totalling approximately US$22.7 million) for a full year total of 2.94 US cents per share. The final dividend for 2015 will be paid to shareholders on 27 May 2016, subject to shareholder approval at the AGM to be held in Jersey on 11 May 2016. The dividend will be paid to shareholders on the register on the Record Date of 22 April 2016.

The key dates with respect to the dividend are as follows:

London Stock Exchange (T+2)

EX-DIV DATE: 21 April 2016

RECORD DATE: 22 April 2016

LAST DATE FOR RECEIPT OF CURRENCY ELECTIONS: 6 May 2016

PAY DATE: 27 May 2016

Toronto Stock Exchange (T+3)

EX-DIV DATE: 20 April 2016

RECORD DATE: 22 April 2016

PAY DATE: 27 May 2016

The dates set out above are based on the Directors' current expectations and may be subject to change. If any of the dates should change, the revised dates will be announced by press release and will be available at www.centamin.com

As a Jersey incorporated company, there is no requirement for Centamin plc to make any withholding or deduction on account of Jersey tax in respect of the dividend.

Shareholders who wish to elect to receive sterling dividends can mandate payments directly to their UK bank or building society by visiting the Investor Centre website at www.investorcentre.co.uk/je or by completing the dividend mandate form which is available at www.centamin.com and posting it back to the registrars in accordance with the instructions set out in the form. The registrars retain the mandates previously provided by shareholders and will apply the instructions for this and future dividends.

Our registrars have also arranged a global payment service allowing payment directly to your designated account, please visit www.investorcentre.co.uk/je or www.centamin.com for details. The currency election mandate will be applicable for shareholders with a UK bank account. The global payment service is a service provided by the registrars for shareholders registered on the LSE and transfer charges may apply.

The last date for shareholder currency elections and dividend mandates to be received by the Company will be 6 May 2016. The currency conversion rate for those electing to receive Sterling will be based on the foreign currency exchange rates on 6 May 2016. The rate applied will be published on the Company's website on 9 May 2016.

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Chief Executive Officer's report

I am pleased to report that, during 2015, Centamin has continued to prosper under adverse market conditions. The Company continues to achieve positive results through its core strategic focus on creating value for all stakeholders. Value in the mining industry is achieved through a continual drive for productivity and efficiency at operating mines, whilst undertaking a growth strategy that is focussed on enhancing returns over the long-term.

In this context, Sukari delivered production in line with guidance and with AISC significantly below initial forecasts. At the same time, Centamin continues to invest in long-term growth, with continued resource and reserve increases at Sukari and positive indications of multiple high-grade prospects from within its West African exploration projects. This stands against an industry forced towards short-term initiatives to preserve cash in response to the various external challenges.

Safety is a critical area of Centamin's performance and our aim is to ensure that every person returns safe at the end of each shift. Continued development of the onsite health and safety culture at Sukari has resulted in a low LTIFR for 2015 of 0.12 per 200,000 man-hours. Against this positive result, however, a very unfortunate incident occurred within the open pit operation during the fourth quarter, when a contractor's employee was involved in a rock collapse whilst relocating a grade control drill rig. The operator, and sole occupant of the drill rig, was fatally injured in the incident. The loss was deeply saddening and overshadowed the strong operational performance during the quarter.

Earlier in 2015, and as previously reported, an unfortunate incident occurred in Burkina Faso on a public road near the Konkera village which resulted in one of our local employees being fatally wounded and another sustained injuries. A thorough investigation into this bandit attack, on two of our vehicles, has been carried out. Further additional security measures have been implemented following the incident. There was no impact on operational activity as a result of the incident.

Centamin remains committed to further improving health and safety during 2016 towards our 'zero-harm' target.

Sukari's performance during 2015 continues to bode well for the potential of the operation to generate significant free cash flow over the coming years. Fourth quarter production of 117,644 ounces was within the operation's target annualised rate of 450,000 to 500,000 ounces, driven by the continued ramp-up of the expanded process plant to its throughput rate of 11 million tonnes per annum. The plant is now operating at 10% above nameplate capacity, which represents the achievement of our base case forecast rate.

The average metallurgical recovery was 88.8%, a 1.7% increase on 2014. Work is continuing to optimise the operational controls and improve circuit stability to ensure recoveries are maintained above 88% at the increased rate of throughput.

2015 was another successive record for both open pit and underground mining rates and productivity in both of these areas remains strong. The open pit delivered total material movement of 57.8Mt, an increase of 28% on the prior year, related to improved fleet utilisation and productivity, together with incremental blasting rates following the increased daily usage of ammonium nitrate (AN) from October 2014. The open pit remains on a secure footing to deliver the scheduled material movements as required for the expanded operation. Open pit mined grades are expected to increase towards the reserve average from 2016, in line with the mine plan and our production forecasts as detailed in May 2015.

The underground mine produced a record 1.16Mt of ore, a 20% increase on 2014. The average mined head grade was 6.5g/t, in line with our forecast, and represents a successful reduction in grade volatility when compared with 2014, a period when the operation underwent a significant ramp up in productivity. The focus for the operation remains to consistently deliver ore at an average grade of at least 6g/t.

There was a material year-on-year decrease in operating costs per tonne in both the mining and processing areas, principally driven by the decrease in the international fuel price. The trend towards lower unit costs is expected to continue in the coming quarters as the expanded operation continues to be optimised and further efficiency gains are realised.

An updated resource and reserve estimate for Sukari in September provided further support for our production forecasts and our expectation of a long life and low cost operation that will continue to generate significant cash flow even under the current weak gold price environment. Open pit reserves of 8.3 million ounces increased from the previous estimate by approximately 0.5 million ounces, net of mining depletion. This increase was due to lower mining and processing costs associated with the recent reduction in international fuel prices and continued underground resource expansion from drilling. The estimate was based on assumptions conservatively above current operating costs.

Reserves were based on a US$1,300 per ounce gold price, consistent with previous estimates and allowing for comparisons exclusive of short-term volatility in the gold market over the expected 19 year plus life of the operation.

Continued growth of the underground resource and reserve demonstrates the potential for further material increases over the coming years. The ongoing drilling programme continues to return high grade assay results and we expect this to continue as the development and drilling extends along the strike and at depth.

Our exploration programmes in West Africa continue to build momentum. In Burkina Faso, at the Wadaradoo, Napalapera and Torkera prospects, drilling has indicated the presence of structurally controlled high-grade mineralised zones in addition to extensive lower-grade mineralisation. In Côte d'Ivoire, first-pass drilling over targets defined by geochemical and geophysical surveys has outlined mineralised zones over a number of prospects. We continue to test the potential for lateral and depth extensions at these more advanced prospects, whilst also progressing the numerous other prospects within our significant land packages.

Maintaining good community relations is a core part of our operational strategy and corporate governance standards. As the first mining company in Egypt in modern times, we strive to set an example of a socially responsible industry through adopting a good neighbour policy. We take every action to ensure Sukari has the minimum impact on the social environment, as well as to deliver positive benefits to Egypt and the community as a result of our investment.

Our work force is remunerated well above the average for Egypt and our career development programmes are highly valued. In general we enjoy a very positive and constructive relationship with our employees.

Outlook

Our longer-term production and cost forecasts remain unchanged and there remains scope for significant additional production increases as productivity in the various areas of the expanded Sukari operation is further optimised.

Safety remains a priority and our target is a lost time injury rate of zero during 2016.

Guidance for 2016 is for 470,000 ounces at US$700/oz cash operating cost and US$900/oz all-in-sustaining cost. Whilst this guidance implies further material production growth at Sukari, the key focus for the operation during the year is on realising the potential for additional productivity and cost efficiencies.

The productivity levels achieved during 2013 in the pre-expansion process plant, together with the various design improvements implemented during the Stage 4 project, provide us with confidence that the expanded plant will achieve, in time, production levels materially above current levels. At the underground mine, we see potential for further incremental productivity increases whilst the priority remains stable grade delivery. The additional shareholder value that can be gained from this continued drive for efficiency has the potential to be significant and requires no material capital expenditure.

The objective, as always, is to generate substantial free cash flow even under challenging gold price assumptions. We intend to return 15-30% of this cash flow to our shareholders, in line with our dividend policy, and to allocate the remainder towards our medium and long-term objective of organic growth aimed at realising incremental shareholder value and returns.

No capital expenditure for expansion or project development is planned for 2016.

Exploration at Sukari continues to prioritise extensions of the high-grade underground resource and reserve and we expect to continue to deliver positive news in line with our strong results to date. A resource and reserve update is planned during 2016.

In West Africa, we expect a total exploration expenditure of circa US$25 million in 2016, with the largest proportion on the advanced exploration programme in Burkina Faso. In line with our overall exploration strategy, the actual expenditure on these projects is results driven and the current estimated expenditures are therefore subject to ongoing revisions.

We will continue to evaluate potential opportunities to grow the business through the acquisition of projects offering the potential for the Company to deliver on its strategic objectives.

Finally, I would like to thank all my colleagues for their hard work over the years including the employees onsite at Sukari, those on the exploration sites in Burkina Faso, Côte d'Ivoire and Ethiopia as well as those in the corporate and administration offices in Jersey and Australia. I would also like to thank your board of directors for their continued support and I am very much looking forward to another prosperous year for Centamin and its stakeholders in 2016.

Andrew Pardey

Chief Executive Officer

Operational Review

Sukari Gold Mine production summary:

	Year ended		Year ended
	31 December		31 December
Sukari Gold Mine production summary	2015	Q4 2015	2014	Q4 2014
Open pit mining
Ore mined⁽¹⁾ ('000t)	8,746	2,229	10,936	4,123
Ore grade mined (g/t Au)	0.75	0.77	0.80	1.00
Ore grade milled (g/t Au)	0.78	0.75	0.97	1.31
Total material mined ('000t)	57,766	13,754	44,820	13,804
Strip ratio (waste/ore)	5.6	5.17	3.1	2.4
Underground mining
Ore mined from development ('000t)	560	151	464	115
Ore mined from stoping ('000t)	598	149	504	169
Ore grade mined (g/t Au)	6.47	7.05	6.10	5.43
Ore processed ('000t)	10,575	2,758	8,428	2,597
Head grade (g/t)	1.40	1.47	1.56	1.71
Gold recovery (%)	88.8	88.5	87.8	87.0
Gold produced - dump leach (oz)	15,642	3,417	15,564	2,564
Gold produced - total⁽²⁾ (oz)	439,072	117,644	377,261	128,115
Cash cost of production⁽³⁾⁽⁴⁾ (US$/oz)	713	667	729	565
Open pit mining	243	232	241	228
Underground mining	46	42	59	48
Processing	367	338	375	334
G&A	56	54	54	45
Gold sold (oz)	437,571	117,351	375,300	125,416
Average realised sales price (US$/oz)	1,159	1,103	1,257	1,203

(1) Ore mined includes 54kt @ 0.54g/t delivered to the dump leach in Q4 2015 (221kt @ 0.46g/t in Q4 2014). Gold produced is gold poured and does not include gold-in-circuit at period end. Cash operating costs exclude royalties, exploration and corporate administration expenditure.

(2) Gold produced is gold poured and does not include gold-in-circuit at period end.

(3) Cash costs exclude royalties, exploration and corporate administration expenditure. Cash cost is a non-GAAP financial performance measure with no standard meaning under GAAP. For further information and a detailed reconciliation, please see glossary for definition.

(4) Cash costs of production reflect an exceptional provision against prepayments to reflect the removal of fuel subsidies which occurred in January 2012 (refer to Notes 3 and 6 respectively to the financial statements for further details).

Health and safety - Sukari

The LTIFR for 2015 was 0.12 per 200,000 man-hours (2014: 0.39 per 200,000 man-hours), with a total of 5,032,828 man-hours worked during 2015 (2014: 5,620,444). Continued development of the onsite health and safety culture has resulted in improved reporting of incidents.

Against this positive result, an incident occurred within the open pit operation during the fourth quarter, when a contractor's employee was involved in a rock collapse whilst relocating a grade control drill rig. The operator, and sole occupant of the drill rig, was fatally injured in the incident.

Centamin remains committed to further improving health and safety during 2016 towards our 'zero-harm' target.

Open pit

The open pit delivered total material movement of 57.8Mt, an increase of 28% on the prior year. This increase was related to improved fleet utilisation and productivity, together with incremental blasting rates following the increased daily usage of ammonium nitrate (AN) from October 2014. Mining continued to focus on the Stage 3A and 3B areas and the northern and eastern walls of the open pit, in line with the mine plan.

Ore production from the open pit was 8.75Mt at 0.75g/t, with an average head grade to the plant of 0.78g/t. The ROM ore stockpile balance decreased by 1.5Mt to 0.7Mt by the end of the year. Ore mining was primarily from the Stage 3A area, which provided access to higher-grade sulphide portions of the ore-body during the second half of the year.

Underground mine

The underground mine produced a record 1.16Mt of ore, a 20% increase on 2014. Ore from stoping accounted for 52% (0.60Mt) of the total and 48% (0.56Mt) was ore from development. Ore tonnages from stopes increased by 18% on the previous year.

The average mined head grade was 6.5g/t, in line with our forecast. The average grade from stoping was 6.9g/t (an increase of 5% on 2014) and the average grade from development was 6.0g/t (an increase of 9% on 2014).

Underground development took place over 8,501 metres, including progression of the Amun and Ptah declines. Of this total, there was 6,864 metres of development in mineralised areas between the 845 and 680 levels (5,389 metres in Amun, and 1,466 metres in Ptah) associated with stoping blocks planned for mining over the coming years.

The exhaust ventilation circuit for the Ptah decline was progressed, ensuring sufficient ventilation as the decline extends deeper into the orebody. Ore drive development continued on the Ptah P810, P790, P775, P745 and P735 levels

A total of 12,277 metres of grade control diamond drilling were completed, aimed at short-term stope definition, drive direction optimisation and underground resource development. A further 26,835 metres of HQ and NQ drilling continued to test the depth extensions below the current Amun and Ptah zones.

Processing

The Sukari plant processed 10.6Mt of ore in 2015, a 26% increase on 2014 and reflecting the ramp up of the expanded plant circuit. The annual tonnes processed were 6% above the nameplate capacity of 10Mtpa. Productivity continued to increase throughout the year, with 2.76Mt processed during the fourth quarter, representing a 13% increase on 2014 annual productivity rates and achieving the plant's minimum expected long-term rate of 11Mtpa.

The average metallurgical recovery was 88.8%, a 1.1% increase on 2014. Work is continuing to optimise the operational controls and improve circuit stability to ensure recoveries are maintained above 88% at the increased rate of throughput.

The dump leach operation produced 15,923oz in 2015, a 2.3% increase on 2014.

Exploration

Sukari

During 2015, drilling from underground remained the focus of the Sukari exploration programme as expanded development continued to improve access to test the potential high-grade extensions of the deposit. The ore body remains open to the north, south and at depth and further underground drilling of the Sukari deposit will take place during 2016, predominantly from both the Amun and Ptah declines.

Selected underground drilling results received during the year (including from the fourth quarter), include the following:

Amun

Ptah

Hole No.	Interval (m)	Au (g/t)
UGRSD0098	5.2	39.8
UGRSD0225	12.0	14.6
UGRSD0411	13.2	48.2
UGRSD0412B	10.6	16.4
UGRSD0416	1.5	207.3
UGRSD0417	21.1	46.1
UGRSD0418	1.7	258.0
UGRSD0418	1.5	85.5
UGRSD0426	1.8	289.0
UGRSD0439	1.6	149.8

Hole No.	Interval (m)	Au (g/t)
UGRSD0140	1.9	304.7
UGRSD0164	5.3	147.2
UGRSD0545	5.0	50.8
UGRSD0551	2.7	807.0
UGRSD0561	5.9	33.4
UGRSD0566_W2	18.4	17.9
UGRSD0569_W1	21.9	12.5
UGRSD0572_W1	38	9.1
UGRSD0573	29.6	6.3
UGRSD0574_W1	31.2	6.8

Burkina Faso

The strategy for 2015 was to continue to systematically explore and drill-test the numerous targets along the 160km length of greenstone belt contained within our extensive 2,200km² licence holding. Results from this programme will lead to further drilling and

resource development during 2016. The main focus of the exploration is to discover and develop new zones of near surface high grade mineralisation.

A signed ministerial decree approving the Tiopolo mining licence, which hosts the existing Indicated resource of 1.92 million ounces and Inferred resource of 1.33 million ounces, was issued on 5th March 2015. A deferral was granted by the Ministry of Mines and Energy in November 2015 in order to continue exploration, as provided for in the Burkina Faso Mining Code.

The exploration programme in Burkina Faso includes geological mapping and geochemical surveys in order to outline prospects for further work. During the year a regional geophysical interpretation was completed, with follow-up Induced Polarisation (IP) ground surveys defining numerous anomalies for follow-up drill testing.

The drilling fleet comprises 5 multipurpose reverse circulation/diamond (RC/DD) rigs, 2 aircore (AC) rigs and 3 auger rigs. During 2015 there were 118,758m of RC, 8,510m of diamond, 86,514m of Aircore and 52,380m of Auger drilled.

A number of regional exploration targets with potential have been identified utilising the developed structural model for high-grade mineralisation in the region. Based on positive results received during 2015, two prospect areas - Wadaradoo and Napelapera - were prioritised for further work. At present, three RC/DD multipurpose rigs are drilling at Wadaradoo, with two further RC/DD rigs conducting regional reconnaissance working in conjunction with the AC rigs in both the north and south of the licence region.

Exploration at Wadaradoo has to date focused on several zones, including Wadaradoo Main and Wadaradoo East. At Wadaradoo Main high-grade south-plunging shoots have been identified on both the main 020° trending structure and 320^o trending splay structures.

Results have confirmed at least three shoots that are open at depth. One shoot returned intersections of 5m @ 15.7g/t (hole WDRD524), 4m @ 2.9g/t (WDRD525), 8m @ 8.0g/t and 14m @ 4.4g/t (WDRD334W2).

At Wadaradoo East, higher-grade lenses are observed within a broad halo of low-grade mineralisation. Increasing data has helped to improve our understanding of the geological controls and higher-grade mineralisation can now be traced for 400m along strike, remaining open in all directions. One of the high-grade zones was intersected on two adjacent 50m-spaced sections, returning 25m @ 3.5g/t (hole WDRC586) and 7m @ 6.4g/t (WDRC589).

Several good targets with favourable structural and lithological settings have been identified at Wadaradoo, particularly in the north and south of the prospect area. Targets continue to be identified through combining the structural model with alteration patterns, geochemical results and interpretation of the IP and magnetic surveys.

Exploration is continuing at a number of other target areas, where major cross cutting structures coincide with demagnetised and altered zones. This includes the Gongombili anticline (the southern continuity of the Wadaradoo Main structure in an area with a broad paragonite anomaly), Wadaradoo Far East (large auger anomalies where an intrusive is interpreted at depth), and Doukou (around a major NE striking mafic dyke).

Table - Wadaradoo significant mineralised RC and DD drill intersections, downhole

Hole No.	From (m)	Interval (m)	Au (g/t)
WDRC314	3	7	12.7
WDRC377	20	9	8.4
WDRC450	39	2	34.6
WDRC492	225	13	8.2
WDRC586	97	25	3.5
WDRD302	241	12	6.3
WDRD334W2	200	8	8.0
WDRD334W2	242	14	4.4
WDRD349	127	16	6.5
WDRD350	147	23	3.4
WDRD352	179	18	5.8
WDRD395	217	14	5.3
WDRD491	270	19	3.3
WDRD524	383	5	15.7

At Napelapera, broad and consistent mineralised zones have been identified over 4km which remain open along strike. Higher grades are observed to the south where the granodiorite has been brecciated, silicified and cross cut by quartz veining. Intersections include 14m @ 6.4g/t (hole NPRC432), 18m @ 4.0g/t (NPRC447) and 10m @ 5.0g/t (NPRC437).

An application has been submitted to extend the Napelapera permit up to the border with Côte d'Ivoire. Centamin also holds the permits across the border in Côte d'Ivoire, along the strike of this mineralised zone, known as the Enoida prospect.

Table - Napelapera significant mineralised RC and DD drill intersections, downhole

Hole No.	From (m)	Interval (m)	Au (g/t)
NPRC399	16	7	12.3
NPRC404	69	13	5.0
NPRC405	103	4	12.3
NPRC406	55	14	1.7
NPRC418	70	4	6.2
NPRC432	64	14	6.4
NPRC437	70	10	5.0
NPRC446	55	10	3.1
NPRC447	112	18	4.0
NPRD452	111	8	5.8

Select higher-grade results from other prospects within the Burkina Faso licence holding are provided in the table below. Follow-up work is planned in these areas.

Table - Significant mineralised RC and DD drill intersections, downhole, from Farmstead, Poni, Tokera and Tonior prospects

Prospect	Hole No.	From (m)	Interval (m)	Au (g/t)
Farmstead	FSRC001	41	4	6.9
Poni	PNRC005	0	14	2.0
	PNRC023	15	3	9.2
	PNRC035	21	6	3.1
	PNRD012	80	8	3.0
Tokera	TKRC087	155	6	4.8
	TKRC088	3	10	5.4
	TKRD085	125	11	5.3
	TKRD090	179	5	4.3
Tonior	TORC039	4	16	1.5
	TORC085	18	7	11.3
	TORC133	128	16	3.2
	TORD129	162	8	3.5

Essential components of our health and safety management systems are being integrated into our operations at Batie West. This process includes an orientation and induction for employees and contractors to ensure adherence to our strict policies and procedures. The Batie West camp site has a well-equipped clinic which includes a full-time paramedic.

Summary details in relation to the HSES aspects of exploring in Burkina Faso are set out in the CSR report.

Côte d'Ivoire

Centamin has four permits covering c.1,517km2 area across the border from Batie West in Burkina Faso (see figure in the previous section). Six permits are under application which are expected to be granted during 2016. Once awarded, exploration will focus on regional surface geochemistry aimed at identifying anomalies for first-pass drilling.

Field work continues on the current licences with reconnaissance geochemistry and geophysics, as well as detailed follow-up leading to first-pass RC drilling.

Soil sampling has identified several coherent gold anomalies which, together with magnetic anomalies, have been targeted with follow-up Auger drilling and trenching in order to gain structural data on the controls of mineralisation.

Ground IP surveys were undertaken over identified prospects. To date, drill results have correlated well with anomalies and further IP surveys are under preparation.

AC drilling was completed at multiple prospects, with some significant intercepts being currently followed-up with RC drilling.

At Enoida AC drilling confirmed the continuity of the mineralisation along strike from the Napelapera prospect in Burkina Faso, with intersections including 10m @ 4.4g/t (hole DPAC0862) and 6m @ 3.5g/t (DPAC0838). At Chegue, AC drilling indicated mineralisation over approximately 2km between two doleritic dykes. Select AC intersections are highlighted below.

Table - Cote d'Ivoire significant mineralised AC drill intersections, downhole

Prospect	Hole number	From (m)	Interval (m)	Au (g/t)
Kekeda	DPAC0146	20	10	9.8
	DPAC0147	18	4	5.5
	DPAC0148	12	8	2.7
	DPAC0149	2	16	1.8
	DPAC0166	6	6	5.4
Souwa	DPAC0346	8	5	4.3
	DPAC0368	2	10	1.7
	DPAC0404	6	7	5.0
	DPAC0405	0	18	0.8
Tchouahinin	DPAC0517	4	4	2.5
Tchouahinin	DPAC0540	26	12	1.0
Enoida	DPAC0862	8	10	4.4
	DPAC0838	14	6	3.5
	DPAC0826	16	14	1.3
	DPAC0828	0	12	1.3
Chegue	DPAC1061	0	6	2.1
	DPAC1071	6	10	1.0
	DPAC1078	32	16	0.6
Hinda	DPAC1123	8	25	1.1
	DPAC1112	6	4	5.3
	DPAC1124	8	12	0.9

RC drilling commenced in fourth quarter at Kekeda and Souwa prospects, with RC drilling planned for 2016 at the Enoida, Chegue and Hinda prospects. Select intersections from Kekeda include 4m @ 13.7g/t (hole DPRC0004), 2m @ 29.1g/t (DPRC0015) and 9m @ 1.9g/t (DPRC0005).

Prospect	Hole number	From (m)	Interval (m)	Au (g/t)
Kekeda	DPRC0003	27	18	1.0
	DPRC0004	92	4	13.7
	DPRC0005	60	9	1.9
	DPRC0015	17	2	29.1
	DPRC0016	19	2	7.0

Summary details in relation to the HSES aspects of exploring in Côte d'Ivoire are set out in the CSR report.

Ethiopia

Exploration activities were ceased in Ethiopia, following a review of the potential of the Una Deriem prospect. Closure of the projects and the subsequent wind up of Sheba Exploration is underway. Exploration will focus on Centamin's projects in West Africa.

Financial review

Now in its seventh year of production, the Sukari Gold Mine remains highly cash generative and this is reflected in the group's financial results for the year ended 31 December 2015:

· 2015 revenues of US$508 million were up 8% year-on-year as an 8% fall in realised gold prices was offset by a 17% increase in gold sales.

· Cash costs decreased to US$713 per ounce produced from US$729 in 2014, driven by the decrease in fuel price, although was marginally above guidance of US$700 per ounce despite the higher production than originally forecast.

· AISC of US$885 per ounce sold was below our original forecast of US$950 per ounce mainly due to the higher gold production base and the rescheduling of certain capital cost items, as foreshadowed in the third quarter results.

· EBITDA decreased by 8% to US$152 million, mainly due to lower gross operating margins as a result of the reduced gold price and also an increased production cost associated with net changes in production inventories.

· Profit before tax decreased by 28% to US$58.4 million, due to the factors affecting EBITDA as well as a US$6.3 million write-off due to the group's decision to cease exploration in Ethiopia.

· Earnings per share of 4.51 US cents were down 37% on 7.21 cents per share in 2014, due to the factors affecting profit before tax in addition to an income tax charge of US$6.8 million in relation to foreign exchange gains on its cash holdings within Australia.

· Operational cash flow of US$186 million was 59% higher than 2014, due to the higher gold production base achieved through the completion of the Stage 4 expansion completed in the second half of 2014 and a positive movement in working capital balances compared to 2014.

Centamin announced an interim dividend in August 2015 of 0.97 US cents per ordinary share (US$11.1 million total distribution). Subject to shareholder approval at the AGM on 11 May 2016, a final dividend of 1.97 US cents per share (totalling approximately US$22.7 million) is proposed to be paid on 27 May 2016 to shareholders on the register as of 22 April 2016. The ex-dividend date is 21 April 2016 for LSE listed shareholders and 20 April 2016 for TSX listed shareholders. The final dividend would thus bring the total full year dividend to 2.94 US cents per share (totalling approximately US$33.8 million).

Centamin remains committed to its policy of being 100% exposed to the gold price through its unhedged position, and maintained a healthy cash, bullion on hand, gold sales receivables and available-for-sale financial assets balance of US$230.7 million as at 31 December 2015.

		Year ended	Year ended
		31 December	31 December	Percentage
		2015	2014	change
Revenue⁽¹⁾	US$'000	508,396	472,581	8%
Profit before tax⁽³⁾	US$'000	58,407	81,562	(28%)
Basic EPS⁽³⁾	Cents	4.51	7.21	(37%)
Diluted EPS⁽³⁾	Cents	4.44	7.11	(38%)
EBITDA⁽²⁾⁽³⁾	US$'000	152,189	165,474	(8%)
Net cash generated from operations⁽³⁾	US$'000	185,542	116,402	59%
Cash and cash equivalents	US$'000	199,616	125,659	59%
Group production	Ounces	439,072	377,261	16%
Attributable sales	Ounces	437,571	375,300	17%
Group cash operating costs⁽²⁾⁽³⁾	US$ per ounce	713	729	(2%)
Total assets	US$'000	1,411,853	1,370,737	3%

(1) See total revenue which is analysed in Note 5 to the financial statements.

(2) EBITDA and cash operating costs are non-GAAP financial performance measures with no standard meaning under International Financial Reporting Standards ("IFRS") as adopted by the European Union and Article 4 of the IAS Regulation IFRS.

(3) Results reflect an exceptional provision against prepayments to reflect the removal of fuel subsidies (refer to Notes 3 and 6 to the financial statements for further details).

Revenue

Revenue from gold and silver sales has increased by 8% to US$508 million (US$473 million in 2014), with an 8% decrease in the average realised gold price to US$1,159 per ounce (US$1,257 per ounce in 2014) offset by a 17% increase in gold sold to 437,571 ounces (375,300 ounces in 2014).

Cost of sales

Cost of sales represents the cost of mining, processing, refinery, transport, site administration and depreciation and amortisation and movement in production inventory. Cost of sales is inclusive of exceptional items of US$46.7 million in relation to fuel charges (refer to Note 6 to the financial statements for further information) and has increased by 16% to US$416.2 million, as a result of:

(a) an increase in activity year on year with overall mined tonnes increasing by 29% and processed tonnes increasing by 26% resulting in a 14% increase in total mine production costs to from US$275.9 million to US$314.8 million;

(b) a 12% increase in depreciation and amortisation from US$84.2 million to US$93.9 million, a result of the higher rates of depreciation associated with the Stage 4 plant expansion; and

(c) a US$7.5 million adjustment for movement in production inventories as a result of an overall decrease in mining stockpiles and gold in circuit levels offset by an increase in finished goods inventory.

Other operating costs

Other operating costs reported comprises expenditure incurred for communications, consultants, directors' fees, stock exchange listing fees, share registry fees, employee entitlements, general office administration expenses, the unwinding of the restoration and rehabilitation provision, foreign exchange movements, the share of profit/loss in associates and the 3% production royalty payable to the Egyptian government. Other operating costs decreased by 8.5% to US$27.8 million, as a result of:

(a) a US$5.0 million decrease in net foreign exchange movements from a US$2.9 million loss to a US$2.1 million gain; offset by

(b) a US$1.0 million increase in royalty paid to the government of the ARE in line with the increase in revenue; and

Other charges

Impairment charges of US$6.3 million relate the write off of capitalised exploration costs in relation to the group's decision to close its Ethiopian operations.

Finance income

Finance income reported comprises interest revenue applicable on the Company's available cash and term deposit amounts. The movements in finance income are in line with the movements in the Company's available cash and term deposit amounts.

Profit before tax

As a result of the factors outlined above, the group recorded a profit before tax for the year ended 31 December 2015 of US$58.4 million (2014: US$81.6 million).

Tax

Australian tax rules govern the taxation of financial arrangements (TOFA rules) and the realisation of foreign exchange gains/losses. The TOFA rules provide that a foreign exchange gain or loss will arise in relation to foreign currency bank accounts to the extent funds have been withdrawn from these accounts during the period. This foreign exchange gain or loss is calculated by comparing the A$ spot rate at the date of deposit to the A$ spot rate at the date of withdrawal on a first-in-first-out (FIFO) basis (i.e. the first amounts deposited are the first amounts to be withdrawn).

The group made foreign exchange gains for Australian income tax purposes during the year which were assessable when they were realised (i.e. when US$ cash balances were withdrawn from Australian bank accounts). Australian income tax rules (contained within subdivision 960-D of the Income Tax Assessment Act 1997) require that where an amount is not in the taxpayer's 'applicable functional currency', the amount is to be converted into the 'applicable functional currency' i.e. Australian dollars. Accordingly, the withdrawal of US$ bank deposits gave rise to foreign exchange gains for Australian income tax purposes, which were assessable when realised.

	31 December	31 December
	2015	2014
	US$'000	US$'000
Profit before income tax	58,407	81,562
Tax expense calculated at 0% (2014: 0%) of profit before tax	-	-
Tax effect of amounts which are not deductible/taxable in calculating taxable income:	-	-
Effect of tax different tax rates of subsidiaries operating in other jurisdictions	(6,837)	-
Tax expense for the year	(6,837)	-

Earnings per share

Earnings per share of 4.51 US cents compare with 7.21 US cents in 2014. The decrease was driven by the factors outlined above.

Comprehensive income

Other comprehensive income has increased by US$0.1 million to US$0.2 million as a result of the revaluation of available-for-sale financial assets.

Financial position

At 31 December 2015, the group had cash and cash equivalents of US$199.6 million compared to US$125.7 million at 31 December 2014. The majority of funds have been invested in international rolling short-term higher interest money market deposits.

Current assets have increased by US$66.1 million or 23% to US$359.5 million, as a result of:

(a) an increase in net cash inflows of US$74.0 million net of foreign exchange movements; offset by

(b) a US$1.2 million decrease in gold sale receivables;

(d) a US$0.5 million decrease in prepayments;

(e) a US$0.2 million increase in other available for sale financial assets; and

(f) a US$7.5 million decrease in mining stockpiles and gold in circuit levels, offset by an increase in finished goods inventory, to US$28.3 million at period end.

Non-current assets have decreased by US$24.9 million or 2% to US$1,052.4 million, as a result of:

(a) a US$93.9 million charge for depreciation and amortisation; offset by

(b) a US$36.5 million cost for net capitalised work-in-progress (comprising of plant and mining equipment and rehabilitation asset);

(c) a US$28.1 million increase in exploration and evaluation assets to US$152.1 million, as a result of the drilling programmes in Sukari Hill, the Sukari tenement area, Burkina Faso and Côte d'Ivoire. This increase is inclusive of a US$6.3 million write off of expenditure in relation to the Ethiopian operations; and

(d) a US$5.0 million increase in prepayments to EMRA in relation to advance payments against future profit share.

Current liabilities have increased by US$17.0 million to US$51.4 million with an increase of US$9.9 million in payables, an increase of US$0.3 million in provisions and an accrual of US$6.8 million for Australian tax payable on forex gains, as outlined above.

Non-current liabilities reported during the period have increased by US$4.1 million as a result of a revision to the assumptions used in the estimating of the inflation and discount rates employed in the calculation of the rehabilitation provision.

Issued capital has increased by US$4.0 million due to the vesting of awards.

Share option reserves reported have decreased by US$1.6 million to US$2.5 million as result of the forfeiture and vesting of awards and the resultant transfer to accumulated profits and issue capital respectively, offset by the recognition of the share-based payments expense.

Accumulated profits increased by US$17.6 million as a result of:

(a) a US$51.6 million increase in the profit for the year attributable to the shareholders of the Company; offset by

(b) a US$33.8 million dividend payment to shareholders; comprising a US$22.7 million final dividend payment for 2014 and a US$11.1 million interim dividend payment for 2015, and

(c) a US$0.2 million loss on available-for-sale financial assets in relation to the Company's shareholding in KEFI Minerals plc.

Capital expenditure

The following table provides a breakdown of the total capital expenditure:

	31 December 2015 US$ million	31 December 2014 US$ million
Stage 4 processing plant	-	3.4
Operational fleet expansion	-	4.5
Open pit development	-	20.7
Total expansion - Sukari	-	28.6
Underground mine development - Sukari ⁽¹⁾	31.4	31.1
Other sustaining capital expenditure	5.1	8.6
Total sustaining	36.5	39.7
Exploration capitalised	34.4	64.2⁽²⁾

(1) Includes underground exploration drilling

(2) Includes the Ampella Mining Ltd asset acquisition for a total consideration of US$48.5m (which includes a cash component of US$9.3m and additional assets of US$1.6m), with the balance representing exploration expenditure on other licence areas (excluding Sukari underground drilling).

Exceptional items

In January 2012 the Company received a letter from Chevron to the effect that Chevron would not be able to continue supplying Diesel Fuel Oil ("DFO") to the mine at Sukari at local subsidised prices. It is understood that the reason that this letter was issued was that Chevron had received a letter instructing it to do so from the Egyptian General Petroleum Corporation ("EGPC"). It is understood that EGPC itself took the decision to issue this instruction because it had received legal advice from the Legal Advice Department of the Council of State (an internal government advisory department) that the companies operating in the gold mining sector in Egypt were not entitled to such subsidies. In addition, during 2012 the Company received a demand from Chevron for the repayment of fuel subsidies received in the period from late 2009 through to January 2012, amounting to some US$51 million (EGP403 million).

The group has taken detailed legal advice on this matter (and, in particular, on the opinion given by Legal Advice Department of the Council of State) and in consequence in June 2012 lodged an appeal against EGPC's decision in the Administrative Courts. Again, the group believes that its grounds for appeal are strong and that there is every prospect of success. However, as a practical matter, and in order to ensure the continuation of supply, the group has since January 2012 advanced funds to its fuel supplier, Chevron, based on the international price for diesel.

As at the date of the financial statements, no final decision had been taken by the courts regarding this matter.

Furthermore, the group remains of the view that an instant move to international fuel prices is not a reasonable outcome and will look to recover funds advanced thus far should the court proceeding be concluded in its favour. However, management recognises the practical difficulties associated with reclaiming funds from the government and for this reason has, fully provided against the prepayment of US$208.2 million to 31 December 2015, as an exceptional item, of which US$42.4 million was provided for during 2015 as follows:

(a) a US$46.7 million increase in cost of sales (2014: US$62.5 million increase);

(b) a US$1.3 million decrease in stores inventories (2014: US$0.2 million increase);

This has resulted in a net charge of US$46.7 million in the profit and loss.

	31 December	31 December
	2015	2014
	US$'000	US$'000
Included in cost of sales:
Mine production costs	(43,808)	(61,564)
Movement in inventory	(2,931)	(970)
	(46,739)	(62,534)

Cash flows

Net cash flows generated by operating activities comprise receipts from gold and silver sales and interest revenue, offset by operating and corporate administration costs. Cash flows have increased by US$69.1 million to US$185.5 million, primarily attributable to:

(a) an increase in revenue, due to higher gold sales offset by a lower average realised price;

(b) an increase in mine production costs as a result of increased gold production; and

Net cash flows used in investing activities comprise exploration expenditure and capital development expenditures at Sukari including the acquisition of financial and mineral assets. Compared to 2014, cash outflows have decreased by US$8.1 million to US$70.6 million. The primary use of the funds during the year was for investment in underground development and exploration expenditures incurred.

Net cash flows generated by financing activities comprise the dividends paid and advance payment against future profit share to EMRA. During the year a US$33.8 million paid which comprises of a final dividend for 2014 of US$22.7 million (in addition to the US$9.9 million interim dividend which was paid during 2014) and an interim dividend of US$11.1 million paid in 2015. An advance payment against future profit share of US$5.0 million was made to EMRA in 2015.

Effects of exchange rate changes have increased by US$0.6 million as a result of the performance of the US$ to the Euro and A$.

Non-GAAP financial measures

Three non‑GAAP financial measures are used in this report:

(1) EBITDA

"EBITDA" is a non‑GAAP financial measure, which excludes the following from profit before tax:

· finance costs;

· finance income; and

· depreciation and amortisation.

Management believes that EBITDA is a valuable indicator of the group's ability to generate liquidity by producing operating cash flow to fund working capital needs and fund capital expenditures. EBITDA is also frequently used by investors and analysts for valuation purposes whereby EBITDA is multiplied by a factor or "EBITDA multiple" that is based on an observed or inferred relationship between EBITDA and market values to determine the approximate total enterprise value of a company. EBITDA is intended to provide additional information to investors and analysts and does not have any standardised definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. EBITDA excludes the impact of cash costs and income of financing activities and taxes, and therefore is not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate EBITDA differently. The following table provides a reconciliation of EBITDA to profit for the year attributable to the Company.

Reconciliation of profit before tax to EBITDA:

	Year ended	Year ended	Year ended	Year ended
	31 December	31 December	31 December	31 December
	2015	2015	2014	2014
	before	including	before	including
	exceptional	exceptional	exceptional	exceptional
	items	items⁽¹⁾	items	items⁽¹⁾
	US$'000	US$'000	US$'000	US$'000
Profit before tax	105,146	58,407	144,096	81,562
Finance income	(269)	(269)	(410)	(410)
Depreciation and amortisation	94,051	94,051	84,232	84,232
EBITDA	198,928	152,189	227,918	165,384

(1) Profit before tax, depreciation and amortisation and EBITDA includes an exceptional provision to reflect the removal of fuel subsidies (refer to Note 6 to the financial statements for further details).

(2) Cash operating cost per ounce and all-in-sustaining cost (AISC) per pounce calculations:

"Cash operating costs per ounce" is a non‑GAAP financial measure. Cash cost per ounce is a measure of the average cost of producing an ounce of gold, calculated by dividing the operating costs in a period by the total gold production over the same period. Operating costs represent total operating costs less administrative expenses, royalties, depreciation and amortisation. Management uses this measure internally to better assess performance trends for the Company as a whole. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use such non‑GAAP information to evaluate the Company's performance and ability to generate cash flow. The Company believes that these measures provide an alternative reflection of the group's performance for the current period and are an alternative indication of its expected performance in future periods. Cash costs is intended to provide additional information, does not have any standardised meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. This measure is not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Other companies may calculate these measures differently.

Reconciliation of cash operating cost per ounce:

		Year ended	Year ended	Year ended	Year ended
		31 December	31 December	31 December	31 December
		2015	2015	2014	2014
		before	including	before	including
		exceptional	exceptional	exceptional	exceptional
		items⁽¹⁾	items⁽¹⁾	items	items⁽¹⁾
Mine production costs (Note 6)	US$'000	271,019	314,827	214,370	275,934
Less: Refinery and transport	US$'000	(1,840)	(1,840)	(1,063)	(1,063)
Cash costs	US$'000	269,179	312,987	212,307	274,871
Gold produced - total	(oz)	439,072	439,072	377,261	377,261
Cash operating cost per ounce	(US$/oz)	613	713	565	729

(1) Mine production costs, cash costs and cash cost per ounce includes an exceptional provision against prepayments recorded commencing in Q4 2012 and going forward to reflect the removal of fuel subsidies (refer to Note 6 to the financial statements for further details).

In June 2013 the World Gold Council (WGC), an industry body, published a Guidance Note on the AISC metric, which gold mining companies can use to supplement their overall non-GAAP disclosure. AISC is an extension of the existing 'cash cost' metric and incorporates all costs related to sustaining production and in particular recognising the sustaining capital expenditure associated with developing and maintaining gold mines. In addition, this metric includes the costs associated with developing and maintaining gold mines. In addition, this metric includes the costs associated with corporate office structures that support these operations, the community and rehabilitation costs attendant with responsible mining and any exploration and evaluation costs associated with sustaining current operations. AISC per ounce is arrived at by dividing the dollar value of the sum of these cost metrics, by the ounces of gold produced.

Reconciliation of AISC per ounce:

		Year ended	Year ended	Year ended	Year ended
		31 December	31 December	31 December	31 December
		2015	2015	2014	2014
		before	including	before	including
		exceptional	exceptional	exceptional	exceptional
		items⁽¹⁾	items⁽¹⁾	items	items⁽¹⁾
Mine production costs (Note 6)	US$'000	271,019	314,827	214,370	275,934
Royalties	US$'000	15,198	15,198	14,144	14,144
Corporate and administration costs	US$'000	14,533	14,533	12,512	12,512
Rehabilitation costs	US$'000	369	369	538	538
Underground development	US$'000	31,409	31,409	31,100	31,100
Other sustaining capital expenditure	US$'000 US$'000	5,145	5,145	8,600	8,600
By-product credit	US$'000	(1,433)	(1,433)	(806)	(806)
Change of inventories	US$'000	7,476	7,476	(1,869)	(1,869)

All-in-sustaining costs	US$'000	343,716	387,524	278,589	340,153
Gold sold - total	(oz)	437,571	437,571	375,300	375,300
AISC per ounce	(US$/oz)	786	885	742	906

⁽¹⁾Mine production costs, Cash costs, AISC, AISC per ounce and Cash cost per ounce, includes an exceptional provision against prepayments recorded since Q4 2012 to reflect the removal of fuel subsidies (refer to Note 4 of the Financial Statements for further details).

⁽²⁾ Includes refinery and transport.

(3) Cash and cash equivalents, bullion on hand, gold sales receivables and available‑for‑sale financial assets:

This is a non‑GAAP financial measure. Any other company may calculate these measures differently.

Reconciliation to cash and cash equivalents, bullion on hand, gold sales receivables and available‑for‑sale financial assets:

	Year ended	Year ended
	31 December	31 December
	2015	2014
	US$'000	US$'000
Cash and cash equivalents (Note 25)	199,616	125,659
Bullion on hand (valued at the year-end spot price)	10,492	12,685
Gold sales receivable (Note 9)	20,472	24,057
Available-for‑sale financial assets (Note 14)	163	409
Cash and cash equivalents, bullion on hand, gold sales receivables and available-for‑sale financial assets	230,743	162,810

Pierre Louw

Chief Financial Officer

21 March 2016

Set out below are the audited consolidated Financial Statements for the Group, including notes thereto, for the year ended 31 December 2015. The independent auditors report on these Financial Statements was unmodified.

The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and adopted for use by the European Union and in accordance with the Companies (Jersey) Law 1991. The group financial statements comply with Article 4 of the EU IAS Regulation.

Consolidated statement of comprehensive income

For the year ended 31 December 2015

		31 December 2015			31 December 2014
		Before			Before
		exceptional	Exceptional		exceptional	Exceptional
		items	items	Total	items	items	Total
	Notes	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000
Revenue	5	508,396	-	508,396	472,581	-	472,581
Cost of sales	6	(369,503)	(46,739)	(416,242)	(295,763)	(62,534)	(358,297)
Gross profit		138,893	(46,739)	92,154	176,818	(62,534)	114,284
Other operating costs	6	(27,722)	-	(27,722)	(30,368)	-	(30,368)
Impairment of available for-sale financial assets	14	-	-	-	(436)	-	(436)
Impairment of exploration and evaluation assets	13	(6,294)	-	(6,294)	(2,328)	-	(2,328)
Finance income	6	269	-	269	410	-	410
Profit before tax		105,146	(46,739)	58,407	144,096	(62,534)	81,562
Tax	7	(6,837)	-	(6,837)	-	-	-
Profit after tax		98,309	(46,739)	51,570	144,096	(62,534)	81,562
EMRA profit share	3	-	-	-	-	-	-
Profit for the year after EMRA profit share		98,309	(46,739)	51,570	144,096	(62,534)	81,562
Profit for the year attributable to:
- the owners of the parent		98,309	(46,739)	51,570	144,096	(62,534)	81,562
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Losses on available-for sale financial assets (net of tax)	14	(212)	-	(212)	(80)	-	(80)
Other comprehensive income for the year		(212)	-	(212)	(80)	-	(80)
Total comprehensive income attributable to:
- the owners of the parent		98,097	(46,739)	51,358	144,016	(62,534)	81,482
Earnings per share:
Basic (cents per share)	24	8.590	(4.084)	4.506	12.735	(5.527)	7.208
Diluted (cents per share)	24	8.467	(4.025)	4.441	12.567	(5.454)	7.113

(1) Refer to Note 6 for further details.

Consolidated statement of financial position

As at 31 December 2015

		31 December	31 December
		2015	2014
	Notes	US$'000	US$'000
Non-current assets
Property, plant and equipment	12	871,467	928,964
Exploration and evaluation asset	13	152,077	123,999
Prepayments	11	28,750	23,750
Other receivables	9	60	645
Total non-current assets		1,052,354	1,077,358
Current assets
Inventories	10	134,775	140,628
Available-for sale financial assets	14	163	409
Trade and other receivables	9	23,784	24,973
Prepayments	11	1,161	1,710
Cash and cash equivalents	25	199,616	125,659
Total current assets		359,499	293,379
Total assets		1,411,853	1,370,737
Non-current liabilities
Provisions	16	7,139	3,015
Total non-current liabilities		7,139	3,015
Current liabilities
Trade and other payables	15	43,969	34,042
Tax liabilities	7	6,837	-
Provisions	16	576	307
Total current liabilities		51,382	34,349
Total liabilities		58,521	37,364
Net assets		1,353,332	1,333,373
Equity
Issued capital	17	665,590	661,573
Share option reserve	18	2,469	4,098
Accumulated profits		685,273	667,702
Total equity attributable to:
- owners of the parent		1,353,332	1,333,373
Total equity		1,353,332	1,333,373

The consolidated financial statements were approved by the Board of Directors, authorised for issue on 21 March 2016 and signed on its behalf by:

Andrew Pardey Pierre Louw

Chief Executive Officer Chief Financial Officer

Consolidated statement of changes in equity

For the year ended 31 December 2015

		Share
	Issued	options	Accumulated
	capital	reserve	profits	Total
	US$'000	US$'000	US$'000	US$'000
Balance as at 1 January 2015	661,573	4,098	667,702	1,333,373
Profit for the year	-	-	51,570	51,570
Other comprehensive income for the year	-	-	(212)	(212)
Total comprehensive income for the year	-	-	51,358	51,358
Issue of shares	38	-	-	38
Transfer of share-based payments	3,979	(3,979)	-	-
Recognition of share-based payments	-	2,350	-	2,350
Dividend paid	-	-	(33,787)	(33,787)
Balance as at 31 December 2015	665,590	2,469	685,273	1,353,332

		Share
	Issued	options	Accumulated
	capital	reserve	profits	Total
	US$'000	US$'000	US$'000	US$'000
Balance as at 1 January 2014	612,463	5,761	594,624	1,212,848
Profit for the year	-	-	81,562	81,562
Other comprehensive income for the year	-	-	(80)	(80)
Total comprehensive income for the year	-	-	81,482	81,482
Issue of shares	48,218	-	-	48,218
Own shares acquired	(1,743)	-	-	(1,743)
Transfer of share-based payments	2,635	(4,156)	1,521	-
Recognition of share-based payments	-	2,493	-	2,493
Dividend paid	-	-	(9,925)	(9,925)
Balance as at 31 December 2014	661,573	4,098	667,702	1,333,373

Consolidated statement of cash flows

For the year ended 31 December 2015

		31 December	31 December
		2015	2014
	Notes	US$'000	US$'000
Cash flows from operating activities
Cash generated in operating activities	25(b)	185,811	116,812
Finance income		(269)	(410)
Net cash generated by operating activities		185,542	116,402
Cash flows from investing activities
Acquisition of property, plant and equipment		(36,554)	(62,305)
Exploration and evaluation expenditure		(34,372)	(26,201)
Cash acquired through AML asset acquisition		-	9,254
Proceeds from sale of available for-sale financial assets	14	-	91
Finance income	6	269	410
Net cash used in investing activities		(70,657)	(78,751)
Cash flows from financing activities
Own shares acquired during the period	17	-	(1,743)
EMRA prepayment		(5,000)	(4,800)
Dividend paid		(33,787)	(9,925)
Net cash provided by financing activities		(38,787)	(16,468)
Net increase/(decrease) in cash and cash equivalents		76,099	21,183
Cash and cash equivalents at the beginning of the period		125,659	105,979
Effect of foreign exchange rate changes		(2,141)	(1,503)
Cash and cash equivalents at the end of the period	25	199,616	125,659

Notes to the consolidated financial statements

For the year ended 31 December 2015

1. General information

Centamin plc (the "Company") is a listed public company, incorporated in Jersey and operating through subsidiaries and jointly controlled entities operating in Egypt, Ethiopia, United Kingdom and Australia. It is the parent company of the group, comprising the Company and its subsidiaries and joint arrangements.

Registered office and principal place of business:

Centamin plc

2 Mulcaster Street

St Helier, Jersey JE2 3NJ

The nature of the group's operations and its principal activities are set out in the directors' report and the strategic report of the annual report.

2. Adoption of new and revised accounting standards

Standards not affecting the reported results nor the financial position

In the current year, the new and revised Standards and Interpretations that have been adopted have not had a significant impact on the amounts reported in these financial statements.

New standards, amendments and interpretations not yet adopted

Standards and interpretations issued but not yet effective up to the date of issuance of the financial statements are listed below. This listing of standards and interpretations issued are those that the Group reasonably expects to have an impact on disclosures, financial position or performance when applied at a future date.

IFRS 15 'Revenue from contracts with customers'. The new standard replaces IAS 18 Revenue and IAS 11 Construction Contracts and provides a five step framework for application to customer contracts: identification of customer contract, identification of the contract performance obligations, determination of the contract price, allocation of the contract price to the contract performance obligations, and revenue recognition as performance obligations are satisfied. A new requirement where revenue is variable stipulates that revenue may only be recognised to the extent that it is highly probable that significant reversal of revenue will not occur. The Group is currently assessing the impact of IFRS 15 but as the majority of gold sales are not subject to pricing adjustments, a significant impact is not anticipated. The new standard will be effective for annual periods beginning on or after 1 January 2018.

IFRS 9 'Financial instruments'. IFRS 9 addresses the financial reporting of financial assets and financial liabilities. This standard replaces IAS 39 - Financial Instruments: Recognition and Measurement. IFRS 9 requires financial assets to be classified into two measurement categories: those measured at fair value and those measured at amortized cost. The determination is made at initial recognition. The classification depends on the entity's business model for managing its financial instruments and the contractual cash flow characteristics of the instrument. For financial liabilities, the standard retains most of the IAS 39 requirements. The main change is that, in cases where the fair value option is taken for financial liabilities, the part of a fair value change due to an entity's own credit risk is recorded in other comprehensive income rather than in net earnings, unless this creates an accounting mismatch. The impairment model and hedging rules have also been amended under IFRS 9 but the derecognition rules remain the same. The Group do not expect a significant impact from IFRS 9 at the moment as it does not enter into formal hedge accounting arrangements, has no long term trade or other receivables and does not hold financial liabilities at fair value. However, the Group will need to consider the accounting for assets currently held as available for sale. The new standard will be effective for annual periods beginning on or after 1 January 2018.

IFRS 16 'Leases'. The new standard will replace IAS 17 Leases and eliminates the classification of leases as either operating or finance leases by the lessee. Classification of leases by the lessor under IFRS 16 continues as either an operating or a finance lease, as was the treatment under IAS 17 Leases. The treatment of leases by the lessee will require capitalization of all leases resulting in accounting treatment similar to finance leases under IAS 17 Leases. Exemptions for leases of very low value or short-term leases will be applicable. The new standard will result in an increase in lease assets and liabilities for the lessee. Under the new standard the treatment of all lease expense is aligned in the statement of earnings with depreciation, and an interest expense component recognized for each lease, in line with finance lease accounting under IAS 17 Leases. The Group's office building leases will come on balance sheet on adoption of IFRS 16 but this is not expected to have a significant impact on either the balance sheet or KPI reporting. IFRS 16 will be applied prospectively for annual periods beginning on or after 1 January 2019.

3. Summary of significant accounting policies

Basis of preparation

These financial statements are denominated in United States dollars, which is the presentational currency of Centamin plc. All companies in the Group use the United States dollar as their functional currency except for the UK subsidiaries which are denominated in Great British pounds and the Australian subsidiaries which are denominated in Australian dollars. All financial information presented in United States dollars has been rounded to the nearest thousand dollars, unless otherwise stated.

The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and adopted for use by the European Union and interpretations issued from time to time by the IFRS Interpretations Committee ("IFRS IC") both as adopted by the European Union (EU) and which are mandatory for EU reporting as at 31 December 2015, the Companies (Jersey) Law 1991, and IFRS as issued by the IASB and interpretations issued from time to time by the IFRS IC which are mandatory as at 31 December 2015, therefore the Group financial statements comply with Article 4 of the EU IAS Regulation. The Group has not early adopted any other amendments, standards or interpretations that have been issued but are not yet mandatory.

The consolidated financial statements have been prepared on a going concern basis and under the historical cost convention, as modified by available-for-sale financial assets, and financial assets and financial liabilities (including derivative) instruments at fair value through profit and loss.

The Group's financial statements have been prepared on the basis of accounting policies consistent with those applied in the financial statements for the year ended 31 December 2014 except for the implementation of a number of minor amendments issued by the IASB and endorsed by the EU which applied for the first time in 2015. These new pronouncements do not have a significant impact on the accounting policies, methods of computation or presentation applied by the Group and therefore prior-period financial statements have not been restated for these pronouncements.

Principles of consolidation

The consolidated financial statements are prepared by combining the financial statements of all the entities that comprise the consolidated entity, being the Company (the parent entity) and its subsidiaries. Subsidiaries are all entities (including structured entities) over which the group has control, as defined in IFRS 10 'Consolidated financial statements'. Consistent accounting policies are employed in the preparation and presentation of the consolidated financial statements.

The consolidated financial statements include the information and results of each subsidiary from the date on which the Company obtains control and until such time as the Company ceases to control such entity. The group controls an entity when the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

In preparing the consolidated financial statements, all intercompany balances and transactions, and unrealised profits arising within the consolidated entity are eliminated in full.

Sukari Gold Mines ("SGM") is jointly owned by PGM and EMRA on a 50% equal basis. For accounting purposes, SGM is wholly consolidated within the Centamin group of companies reflecting the substance and economic reality of the Concession Agreement (see Note 21) and will therefore recognise a non-controlling interest ("NCI") for EMRA's participation. Furthermore based on the requirements of the Concession Agreement, payments to NCI meet the definition of a liability and will be recorded in the income statement and statement of financial position (below profit after tax), as the EMRA profit share, on the date that a net production surplus becomes available. Payment made to EMRA pursuant to the provisions of the Concession Agreement is based on the net production surplus available as at 30 June, being SGM's financial year end. Pursuant to the Concession Agreement, PGM solely funds SGM's activities. PGM is also entitled to recover the following costs and expenses payable from sales revenue (excluding the royalty payable to the Arab Republic of Egypt ("ARE") (a) all current operating expenses incurred and paid after the initial commercial production; (b) exploration costs, including those accumulated to the commencement of commercial production (at the rate of 33.3% of total accumulated cost per annum); and (c) exploitation capital costs, including those accumulated prior to the commencement of commercial production (at the rate of 33.3% of total accumulated cost per annum).

EMRA is entitled to a share of 50% (except for, in accordance with the terms of the Concession Agreement, in the first four years where it shall be 40% for the first two years and 45% for the following two years) of SGM's net production surplus ("EMRA Profit Share") (defined as revenue less payment of the fixed royalty to Arab Republic of Egypt ("ARE") and recoverable costs). Based on the Company's calculation there was no net profit share due to EMRA as at 31 December 2015, nor is any likely to be due as at 30 June 2016. Accordingly, no EMRA entitlement has been recognised to date. Any payment made to EMRA pursuant to these provisions of the Concession Agreement will be recognised as a variable charge in the income statement (below profit after tax) of Centamin, which will lead to a reduction in the earnings per share.

Going concern

These financial statements for the year ended 31 December 2015 have been prepared on a going concern basis, which contemplate the realisation of assets and liquidation of liabilities during the normal course of operations.

The group meets its day-to-day working capital requirements through existing cash resources. As discussed in Note 20 during 2012 the operation of the mine was affected by two legal actions. The first of these followed from a decision taken by EGPC to charge international, not local (subsidised) prices for the supply of Diesel Fuel Oil to Sukari, and the second arose as a result of a judgment of the Administrative Court in relation to, amongst other matters, the Company's 160km² exploitation lease. With regard to the first decision, the Company remains confident that in the event that it is required to continue to pay international prices, the mine at Sukari will remain commercially viable. Similarly, the Company remains confident that the appeal it has lodged in relation to the decision of the Administrative Court will ultimately be successful, although final resolution of the matter may take some time.

With respect to the legal action, on 20 March 2013 the Supreme Administrative Court upheld the Company's application to suspend the decision until the merits of the Company's appeal are considered and ruled on, thus providing assurance that normal operations would be able to continue during this process. Sukari has operated as usual throughout the period.

In the unlikely event that the group is unsuccessful in either or both of its legal actions, and that the operating activities are restricted to a reduced area, it is the directors' belief that the group will be able to continue as going concern.

Having assessed the principal risks and the other matters discussed in connection with the long term viability statement (refer to the risk management report included within the annual report), the directors considered it appropriate to adopt the going concern basis of accounting in preparing the financial statements.

Accounting policies

Accounting policies are selected and applied in a manner which ensures that the resulting financial statements satisfy the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. These policies have been consistently applied to all the years presented, unless otherwise stated.

The following significant policies have been adopted in the preparation and presentation of these financial statements:

Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly-liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Financial instruments

Financial assets and financial liabilities are recognised in the group's balance sheet when the group becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity

Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangement.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the group are recognised at the proceeds received, net of direct issue costs.

Financial liabilities

Financial liabilities are classified as either financial liabilities at fair value through profit or loss ("FVTPL") or other financial liabilities.

Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL when the financial liability is either held for trading or it is designated as at FVTPL. A financial liability is classified as held for trading if:

· it has been incurred principally for the purpose of repurchasing it in the near term; or

· on initial recognition it is part of a portfolio of identified financial instruments that the group manages together and has a recent actual pattern of short-term profit taking; or

· it is a derivative that is not designated and effective as a hedging instrument.

A financial liability other than a financial liability held for trading may be designated as at FVTPL upon initial recognition if:

· such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or

· the financial liability forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the group's documented risk management or investment strategy, and information about the grouping is provided internally on that basis; or

· it forms part of a contract containing one or more embedded derivatives, and IAS 39 'Financial instruments: recognition and measurement' permits the entire combined contract (asset or liability) to be designated as at FVTPL.

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on re-measurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability and is included in the 'other gains and losses' line item in the income statement.

Other financial liabilities

Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

Derecognition of financial liabilities

The group derecognises financial liabilities when, and only when, the group's obligations are discharged, cancelled or they expire.

Financial assets

Financial assets are recognised and derecognised on trade date where the purchase or sale of a financial asset is under a contract whose terms require delivery of the financial asset within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs except for those financial assets classified as at fair value through the profit or loss which are initially measured at fair value.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

Available-for-sale financial assets ("AFS")

Listed shares and listed redeemable notes held by the group that are traded in an active market are classified as being AFS and are stated at fair value. The group also has investments in unlisted shares that are not traded in an active market but that are classified as AFS financial assets and stated at fair value (because the directors consider that fair value can be reliably measured). Fair value is determined in the manner described in Note 26. Gains and losses arising from changes in fair value are recognised in other comprehensive income and accumulated profits with the exception of impairment losses, interest calculated using the effective interest method and foreign exchange gains and losses on monetary assets, which are recognised directly in profit or loss. Where the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously recognised in the investments revaluation reserve is reclassified to profit or loss.

Dividends on AFS equity instruments are recognised in profit or loss when the group's right to receive the dividends is established.

The fair value of AFS monetary assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the balance sheet date. The foreign exchange gains and losses that are recognised in profit or loss are determined based on the amortised cost of the monetary asset. Other foreign exchange gains and losses are recognised in other comprehensive income.

Loans and receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest rate method less impairment. Interest is recognised by applying the effective interest rate except for short-term receivables when the recognition of interest would be immaterial.

Impairment of financial assets

Financial assets, other than those at FVTPL, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that as a result of one or more events that occurred after the initial recognition of the financial asset the estimated future cash flows of the investment have been impacted. For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate.

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables where the carrying amount is reduced through the use of an allowance account. When a trade receivable is uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss.

With the exception of available-for-sale equity instruments, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.

In respect of available-for-sale equity instruments, any subsequent increase in fair value after an impairment loss is recognised in other comprehensive income.

Derecognition of financial assets

The group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the group recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the group retains substantially all the risks and rewards of ownership of a transferred financial asset, the group continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

Employee benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave and sick leave when it is probable that settlement will be required and they are capable of being measured reliably.

Liabilities recognised in respect of employee benefits expected to be settled within twelve months, are measured at their nominal values using the remuneration rate expected to apply at the time of settlement. Liabilities recognised in respect of employee benefits which are not expected to be settled within twelve months are measured as the present value of the estimated future cash flows to be made by the consolidated entity in respect of services provided by employees up to reporting date.

Superannuation

The Company contributes to, but does not participate in, compulsory superannuation funds (defined contribution schemes) on behalf of the employees and directors in respect of salaries and directors' fees paid. Contributions are charged against income as they are made.

Exploration, evaluation and development expenditure

Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an exploration and evaluation asset in the year in which they are incurred where the following conditions are satisfied:

(a) the rights to tenure of the area of interest are current; and

(b) at least one of the following conditions is also met:

a. the exploration and evaluation expenditures are expected to be recouped through successful development and exploration of the area of interest, or alternatively, by its sale; or

b. exploration and evaluation activities in the area of interest have not at the reporting date reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing.

Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore, studies, exploration drilling, trenching and sampling and associated activities. General and administrative costs are only included in the measurement of exploration and evaluation costs where they are related directly to operational activities in a particular area of interest.

Exploration and evaluation assets are assessed for impairment when facts and circumstances (as defined in IFRS 6 'Exploration for and evaluation of mineral resources') suggest that the carrying amount of exploration and evaluation assets may exceed its recoverable amount. The recoverable amount of the exploration and evaluation assets (or the cash generating unit(s) to which it has been allocated, being no larger than the relevant area of interest) is estimated to determine the extent of the impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in previous years.

Where a decision is made to proceed with development in respect of a particular area of interest, the relevant exploration and evaluation asset is tested for impairment, reclassified to mine development properties, and then amortised over the life of the reserves associated with the area of interest once mining operations have commenced.

Mine development expenditure is recognised at cost less accumulated amortisation and any impairment losses. When commercial production in an area of interest has commenced, the associated costs are amortised over the estimated economic life of the mine on a units of production basis.

Changes in factors such as estimates of proved and probable reserves that affect unit of production calculations are dealt with on a prospective basis.

Foreign currencies

The individual financial statements of each group entity are presented in its functional currency, being the currency of the primary economic environment in which the entity operates. For the purpose of the consolidated financial statements, the results and financial position of each entity are expressed in United States dollars, which is the functional currency of the group and the presentation currency for the consolidated financial statements except for the UK subsidiaries which are denominated in Great British pounds and the Australian subsidiaries which are denominated in Australian dollars.

In preparing the financial statements of the individual entities, transactions in currencies other than the entity's functional currency are recorded at the rates of exchange prevailing on the dates of the transactions. At each reporting date, monetary items denominated in foreign currencies are retranslated at the rates prevailing at the reporting date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences are recognised in profit or loss in the period in which they arise.

Inventories

Inventories are valued at the lower of cost and net realisable value. Costs including an appropriate portion of fixed and variable overhead expenses are assigned to inventory on hand by the method appropriate to each particular class of inventory, with the majority being valued on a weighted average cost basis. Net realisable value represents the estimated selling price less all estimated costs of completion and costs necessary to make the sale.

Ore stockpiles, gold in circuit and finished goods are valued applying absorption costing.

Interests in joint arrangements

The group applies IFRS 11 'Joint arrangements'. Under IFRS 11 investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations each investor. Joint ventures are accounted for using the equity method. In relation to its interests in joint operations, the group recognises its share of assets and liabilities; revenue from the sale of its share of the output; and its share of expenses.

SGM is wholly consolidated within the Centamin group of companies, reflecting the substance and economic reality of the Concession Agreement (see Note 21).

Leased assets

Leased assets are classified as finance leases when the terms of the lease transfer substantially all the risks and rewards incidental to ownership of the leased asset to the lessee. All other leases are classified as operating leases.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where other systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.

Property, plant and equipment ("PPE")

PPE is stated at cost less accumulated depreciation and impairment. PPE will include capitalised development expenditure. Cost includes expenditure that is directly attributable to the acquisition of the item as well as the estimated cost of abandonment. In the event that settlement of all or part of the purchase consideration is deferred, cost is determined by discounting the amounts payable in the future to their present value as at the date of acquisition. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred. The cost of PPE includes the estimated restoration costs associated with the asset.

Depreciation is provided on PPE. Depreciation is calculated on a straight-line basis so as to write off the net cost or other revalued amount of each asset over its expected useful life to its estimated residual value.

The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual financial period, with the effect of any changes recognised on a prospective basis.

Freehold land is not depreciated.

The following estimated useful lives are used in the calculation of depreciation:

Plant and equipment 2 - 20 years

Office equipment 3 - 7 years

Mining equipment 2 - 13 years

Buildings 4 - 20 years

The gain or loss arising on the disposal or scrappage of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in income.

Mine development properties

Where mining of a mineral resource has commenced, the accumulated costs are transferred from exploration and evaluation assets to mine development properties.

Amortisation is first charged to new mine development ventures from the date of first commercial production. Amortisation of mine properties is on a unit of production basis resulting in an amortisation charge proportional to the depletion of the proved and probable ore reserves. The unit of production can be on a tonnes or an ounce depleted basis.

Capitalised underground development costs incurred to enable access to specific ore blocks or areas of the underground mine, and which only provide an economic benefit over the period of mining that ore block or area, are depreciated on a units of production basis, whereby the denominator is estimated ounces of gold in proven and probable reserves within that ore block or area where it is considered probable that those resources will be extracted economically.

Stripping activity assets

The group defers stripping costs incurred (removal of mine waste materials which provide improved access to further quantities of material that will be mined in future periods). This waste removal activity is known as "stripping". There can be two benefits accruing to the entity from the stripping activity:

· usable ore that can be used to produce inventory; and

· improved access to further quantities of material that will be mined in future periods.

The costs of stripping activity to be accounted for in accordance with the principles of IAS 2 'Inventories' to the extent that the benefit from the stripping activity is realised in the form of inventory produced. The costs of stripping activity which provides a benefit in the form of improved access to ore is recognised as a non-current "stripping activity asset" where the following criteria are met:

(a) it is probable that the future economic benefit (improved access to the ore body) associated with the stripping activity will flow to the entity;

(b) the entity can identify the component of the ore body for which access has been improved; and

When the costs of the stripping activity asset and the inventory produced are not separately identifiable, production stripping costs are allocated between the inventory produced and the stripping activity asset by using an allocation basis that is based on a relevant production measure. A stripping activity asset is accounted for as an addition to, or as an enhancement of, an existing asset and classified as tangible or intangible according to the nature of the existing asset of which it forms part. A stripping activity asset is initially measured at cost and subsequently carried at cost or its revalued amount less depreciation or amortisation and impairment losses. A stripping activity asset is depreciated or amortised on a systematic basis, over the expected useful life of the identified component of the ore body that becomes more accessible as a result of the stripping activity. The stripping activity asset is depreciated using a units of production method based on the total ounces to be produced over the life of the component of the ore body.

Deferred stripping costs are included in "stripping assets", within tangible assets. These form part of the total investment in the relevant cash-generating unit, which is reviewed for impairment if events or a change in circumstances indicate that the carrying value may not be recoverable. Amortisation of deferred stripping costs is included in operating costs.

Impairment of assets (other than exploration and evaluation and financial assets)

At each reporting date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are largely independent cash inflows (cash-generating units).

Recoverable amount is the higher of fair value loss costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessment of the time value of money and the risks specific to the asset for which the estimates of future flows have not been adjusted.

If the recoverable amount of a cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the cash-generating unit is reduced to its recoverable amount. Where an impairment loss subsequently reverses, the carrying amount of the cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the cash-generating unit in prior years.

A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of an impairment loss is treated as a revaluation increase.

Revenue

Revenue is measured at the fair value of the consideration received or receivable for goods and services in the normal course of business, net of discounts, VAT and other sales related taxes.

Sale of goods

Revenue from the sale of mineral production is recognised when the group has passed the significant risks and rewards of ownership of the mineral production to the buyer, it is probable that economic benefits associated with the transaction will flow to the group, the sales price can be measured reliably, and the group has no significant continuing involvement and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is when insurance risk has passed to the buyer and the goods have been collected at the agreed location.

Where the terms of the executed sales agreement allow for an adjustment to the sales price based on a survey of the mineral production by the buyer (for instance an assay for gold content), recognition of the revenue from the sale of mineral production is based on the most recently determined estimate of product specifications.

Pre-production revenues

Income derived by the entity prior to the date of commercial production is offset against the expenditure capitalised and carried in the consolidated statement of financial position. All revenues recognised after commencement of commercial production are recognised in accordance with the revenue policy stated above. The commencement date of commercial production is determined when stable and sustained production capacity has been achieved.

Production royalty

The Arab Republic of Egypt ("ARE") is entitled to a royalty of 3% of net sales revenue (revenue net of freight and refining costs) as defined from the sale of gold and associated minerals from the Sukari Project. This royalty is calculated and recognised on receipt of the final certificate of analysis document received from the refinery. Due to its nature, this royalty is not recognised in cost of sales but rather in other operating costs.

Other income

Interest income

Interest income is recognised when it is probable that the economic benefits will flow to the group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount.

Business combinations

Acquisitions of businesses as defined by IFRS 3 are accounted for using the acquisition method. The consideration for each acquisition is measured at the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquiree. Acquisition-related costs are recognised in profit or loss as incurred.

Where applicable, the consideration for the acquisition includes any asset or liability resulting from a contingent consideration arrangement, measured at its acquisition date fair value. Subsequent changes in such fair values are adjusted against the cost of acquisition where they qualify as measurement period adjustments (see below). All other subsequent changes in the fair value of contingent consideration classified as an asset or liability are accounted for in accordance with IFRS 3 either in profit or loss or as a change to other comprehensive income. Changes in the fair value of contingent consideration classified as equity are not re-measured, and its subsequent settlement is accounted for within equity.

Where a business combination is achieved in stages, the group's previously-held interests in the acquired entity are remeasured to fair value at the acquisition date (i.e. the date the group attains control) and the resulting gain or loss, if any, is recognised in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognised in other comprehensive income are reclassified to profit or loss, where such treatment would be appropriate if that interest were disposed of.

The acquiree's identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 (2008) are recognised at their fair value at the acquisition date, except that:

· deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are recognised and measured in accordance with IAS 12 'Income taxes' and IAS 19 'Employee benefits' respectively;

· liabilities or equity instruments related to the replacement by the group of an acquiree's share based payment awards are measured in accordance with IFRS 2 'Share-based payment'; and

· assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 'Non-current assets held for sale'.

Assets held for sale and discontinued operations are measured in accordance with that Standard. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see below), or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognised as of that date.

The measurement period is the period from the date of acquisition to the date the group obtains complete information about facts and circumstances that existed as of the acquisition date, and is subject to a maximum of one year.

Investments in associates

An associate is an entity over which the group has significant influence and that is neither a subsidiary nor a joint arrangement. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

The results, assets and liabilities of associates are incorporated in these financial statements using the equity method of accounting, except when the investment is classified as held for sale, in which case it is accounted for in accordance with IFRS 5 'Non-current assets held for sale and discontinued operations'.

Under the equity method, investments in associates are carried in the consolidated balance sheet at cost as adjusted for post-acquisition changes in the group's share of the net assets of the associate, less any impairment in the value of individual investments. Losses of an associate in excess of the group's interest in that associate (which includes any long-term interests that, in substance, form part of the group's net investment in the associate) are recognised only to the extent that the group has incurred legal or constructive obligations or made payments on behalf of the associate.

Any excess of the cost of acquisition over the group's share of the net fair value of the identifiable assets, liabilities and contingent liabilities of the associate recognised at the date of acquisition is recognised as goodwill. The goodwill is included within the carrying amount of the investment and is assessed for impairment as part of that investment.

Any excess of the Group's share of the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition, after reassessment, is recognised immediately in profit or loss.

Where a Group entity transacts with an associate of the group, profits and losses are eliminated to the extent of the group's interest in the relevant associate.

The group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the case, the group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognises the amount adjacent to share of profit/(loss) of associates in the income statement.

Dilution gains and losses arising in investments in associates are recognised in the income statement.

Share-based payments

Equity settled share-based payments with employees and others providing similar services are measured at the fair value of the equity instrument at grant date. Fair value is measured by the use of the Black Scholes model. Where share-based payments are subject to market conditions, fair value was measured by the use of a Monte-Carlo simulation. The fair value determined at the grant date of the equity settled share-based payments is expensed over the vesting period, based on the consolidated entity's estimate of shares that will eventually vest.

Equity settled share-based transactions with other parties are measured at the fair value of the goods or services received, except where the fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service. The fair value of the employee services received in exchange for the grant of the options is recognised as an expense. The total amount to be expensed is determined by reference to the fair value of the options granted:

· including any market performance conditions (for example, an entity's share price);

· excluding the impact of any service and non-market performance vesting conditions (for example, profitability and remaining an employee of the entity over a specified time period); and

· including the impact of any non-vesting conditions (for example, the requirement for employees to save or holding shares for a specific period of time).

When the options are exercised, the Company issues new shares. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium.

The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions, and behavioural considerations. Further details on how the fair value of equity settled share-based transactions has been determined can be found in Note 27. At each reporting date, the Group revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in profit or loss over the remaining vesting period, with corresponding adjustment to the equity settled employee benefits reserve.

Issued capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Where the Company or other members of the consolidated group purchases the Company's equity share capital, the consideration paid is deducted from the total shareholders' equity of the group and/or of the Company as treasury shares until they are cancelled. Where such shares are subsequently sold or reissued, any consideration received is included in shareholders' equity of the group and/or the Company.

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the period. Taxable profit differs from profit as reported in the consolidated statement of comprehensive income because of items of income or expense that are taxable or deductible in other periods and items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.

Restoration and rehabilitation

A provision for restoration and rehabilitation is recognised when there is a present legal or constructive obligation as a result of exploration, development and production activities undertaken, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the provision can be measured reliably. The estimated future obligations include the costs of dismantling and removal of facilities, restoration and monitoring of the affected areas. The provision for future restoration costs is the best estimate of the present value of the expenditure required to settle the restoration obligation at the reporting date. Future restoration costs are reviewed annually and any changes in the estimate are reflected in the present value of the restoration provision at each reporting date.

The initial estimate of the restoration and rehabilitation provision relating to exploration, development and mining production activities is capitalised into the cost of the related asset and amortised on the same basis as the related asset, unless the present obligation arises from the production of the inventory in the period, in which case the amount is included in the cost of production for the period. Changes in the estimate of the provision of restoration and rehabilitation are treated in the same manner, except that the unwinding of the effect of discounting on the provision is recognised as a finance cost within other operating costs rather than being capitalised into the cost of the related asset.

4. Critical accounting judgments

Critical judgments in applying the entity's accounting policies

The following are the critical judgments that management has made in the process of applying the Group's accounting policies and that have the most significant effect on the amounts recognised in the financial statements:

Management has discussed its critical accounting judgments and associated disclosures with the Company's Audit and Risk Committee.

Impairment of assets (other than exploration and evaluation and financial assets)

IFRS requires management to test for impairment if events or changes in circumstances indicate that the carrying amount of a finite lived asset may not be recoverable. Management have concluded that there is no indication that an impairment exists, nor have any indicators arisen after the reporting period and are therefore not required to perform a full impairment review under IAS 36.

In making its assessment as to the possibility of whether impairments losses having arisen, Management considered the following indications:

· internal sources of information;

· external sources of information;

· litigation;

· the key assumptions applied in the 31 December 2015 impairment review;

· forecast gold prices;

· discount rate;

· production volumes;

· reserves and resources report; and

· costs and recovery rates.

Litigation

The Group exercises judgment in measuring and recognising provisions and the exposures to contingent liabilities related to pending litigation, as well as other contingent liabilities (see Note 20 to the financial statements). Judgment is necessary in assessing the likelihood that a pending claim will succeed, or a liability will arise, and to quantify the possible range of the financial settlement.

The Group is currently a party to two legal actions both of which could affect its ability to operate the mine at Sukari in the manner in which it is currently operated and adversely affect its profitability. The details of this litigation, which relate to the loss of the Egyptian national subsidy for diesel fuel oil and the ability of the Group to operate outside the area of 3km² determined by the Administrative Court of first instance to be the area of the Sukari exploitation lease, are given in Note 20 to the financial statements and in the most recently filed Annual Information Form ("AIF") which is available on SEDAR at www.sedar.com. Although it is possible to quantify the effects of the loss the national fuel subsidy, it is not currently possible to quantify with sufficient precision the effect of restricting operations to an area of 3km².

Every action is being taken to contest these decisions, including the making of formal legal appeals and, although their resolution may still take some time, management remain confident that a satisfactory outcome will ultimately be achieved. In the meantime, however, the Group is continuing to pay international prices for diesel fuel oil. With respect to the Administrative Court ruling, on 20 March 2013 the Supreme Administrative Court upheld the Company's application to suspend this decision until the merits of the Company's appeal are considered and ruled on, thus providing assurance that normal operations will be able to continue during this process.

In the unlikely event that the Group is unsuccessful in either or both of its legal actions, and that the operating activities are restricted to a reduced area, it is management's belief that the Group will be able to continue as going concern.

Recovery of capitalised exploration evaluation and development expenditure

The Group's accounting policy for exploration and evaluation expenditure results in exploration and evaluation expenditure being capitalised for those projects where such expenditure is considered likely to be recoverable through future extraction activity or sale or where the exploration activities have not reached a stage which permits a reasonable assessment of the existence of reserves.

This policy requires management to make certain estimates and assumptions as to future events and circumstances, in particular whether the Group will proceed with development based on existence of reserves or whether an economically viable extraction operation can be established. Such estimates and assumptions may change from period to period as new information becomes available. If, subsequent to the exploration and evaluation expenditure being capitalised, a judgment is made that recovery of the expenditure is unlikely or the project is to be abandoned, the relevant capitalised amount will be written off to the income statement.

As described in Note 13 to the financial statements, in February 2015, the Company gave formal notice to Alecto Minerals plc ("Alecto") terminating the joint venture agreement entered into between the Company and Alecto in September 2013 with regards to the development of Alecto's licences in Ethiopia.

Centamin's rights in the Wayu Boda and Aysid Metekel licences have reverted back to Alecto, such that Alecto will hold 100% of the licences and will assume responsibility for the ongoing commitments in respect of the licences on termination of the joint venture and have thus written off all expenditure incurred to date, including the acquisition costs in relation to those licences, amounting to US$2.7 million of which US$2.3 million was written off in 2014.

Exploration activities were ceased in Ethiopia in late 2015 with closure of all remaining projects and the subsequent wind up of the Sheba Exploration entities is in progress. The decision was taken after a review of the potential of the Una Deriem prospect after completing the testing the eastern soil anomaly, which runs parallel to the main soil anomaly and mineralised zone. The cessation of activity in Ethiopia resulted in impairment of E&E assets of US$5.9 million in 2015.

Going concern

Under guidelines set out by the UK Financial Reporting Council ("FRC") the directors of UK listed companies are required to consider whether the going concern basis is the appropriate basis of preparation of financial statements.

Based on a detailed cash flow forecast prepared by management, in which it included any reasonably possible change in the key assumptions on which cash flow forecast is based, the directors have a reasonable expectation that the Group will have adequate resources to continue in operational existence for the foreseeable future. Key assumptions under-pinning this forecast include:

· litigation as discussed in Note 20 to the financial statements;

· forecast gold price;

· production volumes; and

· costs and recovery rates.

These financial statements for the year ended 31 December 2015 have therefore been prepared on a going concern basis, which contemplate the realisation of assets and liquidation of liabilities during the normal course of operations, in preparing the financial statements.

Accounting treatment of Sukari Gold Mines ("SGM")

SGM is consolidated within the Centamin Group of companies, reflecting the substance and economic reality of the Concession Agreement (see Note 21 to the financial statements).

Key sources of estimation uncertainty

The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year:

Provision for restoration and rehabilitation costs

The Group is required to decommission, rehabilitate and restore mines and processing sites at the end of their producing lives to a condition acceptable to the relevant authorities. The provision has been calculated taking into account the estimated future obligations including the costs of dismantling and removal of facilities, restoration and monitoring of the affected areas. The provision for future restoration costs is the best estimate of the present value of the expenditure required to settle the restoration obligation at the reporting date.

Ore reserve estimates

Estimates of recoverable quantities of reserves include assumptions on commodity prices, exchange rates, discount rates and production costs for future cash flows. It also involves assessment and judgment of complex geological models. The economic, geological and technical factors used to estimate ore reserves may change from period to period. Changes in ore reserves affect the carrying values of mine properties, property, plant and equipment, provision for rehabilitation assets and deferred taxes. Ore reserves are integral to the amount of depreciation and amortisation charged to the consolidated statement of comprehensive income and the calculation in the valuation of inventory.

Production forecasts from the underground mine at Sukari are partly based on estimates regarding future resource and reserve growth. It should be specifically noted that the potential quantity and grade from the Sukari underground mine is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource.

Depreciation of capitalised underground mine development costs

Depreciation of capitalised underground mine development costs at the Sukari mine is based on reserve estimates. Management and directors believe that these estimates are both realistic and conservative, based on current information.

5. Revenue

An analysis of the Group's revenue for the year, from continuing operations, is as follows:

	31 December	31 December
	2015	2014
	US$'000	US$'000
Gold sales	506,963	471,776
Silver sales	1,433	805
	508,396	472,581

All gold and silver sales during the year were made to a single customer in North America.

6. Profit before tax

Profit for the year has been arrived at after crediting/(charging) the following gains/(losses) and expenses:

	31 December 2015			31 December 2014
	Before			Before
	exceptional	Exceptional		exceptional	Exceptional
	items	items	Total	items	items	Total
	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000
Cost of sales
Mine production costs	(271,019)	(43,808)	(314,827)	(214,370)	(61,564)	(275,934)
Movement in inventory	(4,545)	(2,931)	(7,476)	2,839	(970)	1,869
Depreciation and amortisation	(93,939)	-	(93,939)	(84,232)	-	(84,232)
	(369,503)	(46,739)	(416,242)	(295,763)	(62,534)	(358,297)

	31 December	31 December
	2015	2014
	US$'000	US$'000
Finance income
Interest received	269	410
Other operating costs
Corporate compliance	(1,408)	(1,339)
Office related depreciation	(111)	(90)
Auditing fees	(573)	(566)
Corporate consultants	(751)	(381)
Communications & IT	(206)	(248)
Employee entitlements	(119)	(116)
Salary and wages	(6,637)	(5,150)
Travel and accommodation	(1,031)	(897)
Office rents and lease payment	(185)	(147)
Other administration expenses	(634)	(117)
Impairment reversal	526	-
Insurances	(120)	(111)
Rates and taxes	(523)	-
Entertainment	(181)	(40)
Employee equity settled share-based payments	(2,350)	(2,491)
Fixed royalty - attributable to the Egyptian government	(15,198)	(14,144)
Foreign exchange gain/(loss), net	2,141	(2,900)
Provision for restoration and rehabilitation - unwinding of discount	(362)	(538)
Loss on disposal of property, plant and equipment	-	(1,093)
	(27,722)	(30,368)

	31 December	31 December
	2015	2014
	US$'000	US$'000
Impairment of assets
Impairment of available-for sale financial assets⁽¹⁾	526	(436)
Impairment of exploration and evaluation assets⁽²⁾	(6,294)	(2,328)
	(5,768)	(2,764)

(1) Refer to Note 14 for further details.

(2) Refer to Note 13 for further details.

Exceptional items

The directors consider that items of income or expense which are material by virtue of their unusual, irregular or non-recurring nature should be disclosed separately if the consolidated financial statements are to fairly present the financial position and underlying business performance. In order to allow a better understanding of the financial information presented within the consolidated financial statements, and specifically the Group's underlying business performance, the effect of exceptional items are shown below.

	31 December	31 December
	2015	2014
	US$'000	US$'000
Included in cost of sales
Mine production costs	(43,808)	(61,564)
Movement in inventory	(2,931)	(970)
	(46,739)	(62,534)

In January 2012 the Company received a letter from Chevron to the effect that Chevron would not be able to continue supplying Diesel Fuel Oil ("DFO") to the mine at Sukari at local subsidised prices. It is understood that the reason that this letter was issued was that Chevron had received a letter instructing it to do so from the Egyptian General Petroleum Corporation ("EGPC"). It is understood that EGPC itself took the decision to issue this instruction because it had received legal advice from the Legal Advice Department of the Council of State (an internal government advisory department) that the companies operating in the gold mining sector in Egypt were not entitled to such subsidies. In addition, during 2012, the Company received a demand from Chevron for the repayment of fuel subsidies received in the period from late 2009 through to January 2012, amounting to some US$51 million (EGP403 million).

The Group has taken detailed legal advice on this matter (and, in particular, on the opinion given by Legal Advice Department of the Council of State) and in consequence in June 2012 lodged an appeal against EGPC's decision in the Administrative Courts. Again, the Group believes that its grounds for appeal are strong and that there is every prospect of success. However, as a practical matter, and in order to ensure the continuation of supply, the Group has since January 2012 advanced funds to its fuel supplier, Chevron, based on the international price for diesel.

As at the date of the financial statements, no final decision had been taken by the courts regarding this matter.

Furthermore, the Group remains of the view that an instant move to international fuel prices is not a reasonable outcome and will look to recover funds advanced thus far should the court proceeding be concluded in its favour. However, management recognises the practical difficulties associated with reclaiming funds from the government and for this reason has, fully provided against the prepayment of US$208.2 million to 31 December 2015, as an exceptional item, of which US$42.5 million was provided for during 2015 as follows:

a. a US$43.8 million increase in mine production costs (2014: US$62.5 million increase);

b. a US$1.3 million decrease in stores inventories (2014: US$0.2 million increase);

c. a US$2.9 million decrease in mining stockpiles, gold in circuit and finished goods (2014: US$1.0 million decrease).

This has resulted in a net charge of US$46.7 million in the profit and loss.

7. Tax

Tax recognised in profit is summarised as follows:

Tax expense

	31 December	31 December
	2015	2014
	US$'000	US$'000
Current tax
Current tax expense in respect of the current year	(6,837)	-
	(6,837)	-
Deferred tax
Total tax expense	-	-

The Group operates in several countries and, accordingly, it is subject to, the various tax regimes in the countries in which it operates. From time to time the Group is subject to a review of its related tax filings and in connection with such reviews, disputes can arise with the taxing authorities over the interpretation or application of certain rules to the Group's business conducted within the country involved. If the Group is unable to resolve any of these matters favourably, there may be an adverse impact on the Group's financial performance, cash flows or results of operations. In the event that management's estimate of the future resolution of these matters changes, the Group will recognize the effects of the changes in its consolidated financial statements in the period that such changes occur.

In Australia, Centamin Egypt Limited and Pharaoh Gold Mines NL have elected to form a tax-consolidated group and therefore are treated as a single entity for Australian income tax purposes. Pharaoh Gold Mines NL benefits from the "Branch Profits Exemption" whereby foreign branch income will generally not be subject to Australian income tax.

The Group made foreign exchange gains for Australian income tax purposes during the year which were assessable when they were realised (i.e. when US$ cash balances were withdrawn from Australian bank accounts). Australian income tax rules (contained within subdivision 960-D of the Income Tax Assessment Act 1997) require that where an amount is not in the taxpayer's 'applicable functional currency', the amount is to be converted into the 'applicable functional currency' i.e. Australian dollars. Accordingly, the withdrawal of US$ bank deposits gave rise to foreign exchange gains for Australian income tax purposes, which were assessable when realised.

In Egypt, Centamin has entered into a concession agreement that provides that the income generated by Sukari Gold Mining Company's activities is granted a long-term tax exemption from all taxes imposed in Egypt.

The tax expense for the year can be reconciled to the profit per the consolidated statement of comprehensive income as follows:

	31 December	31 December
	2015	2014
	US$'000	US$'000
Profit before income tax	58,407	81,562
Tax expense calculated at 0% (2014: 0%)⁽¹⁾ of profit before tax	-	-
Tax effect of amounts which are not deductible/taxable in calculating taxable income:
Effect of tax different tax rates of subsidiaries operating in other jurisdictions	(6,837)	-
Tax expense for the year	(6,837)	-

(1) The tax rate used in the above reconciliation is the corporate tax rate of 0% payable by Jersey corporate entities under the Jersey tax law (2014: 0%). There has been no change in the underlying corporate tax rates when compared to the previous financial period.

	31 December	31 December
	2015	2014
	US$'000	US$'000
Current tax liabilities	(6,837)	-
Current tax payable	-	-

Tax consolidation

Relevance of tax consolidation to the consolidated entity

Companies within the Group's wholly-owned Australian resident entities formed a tax-consolidated group with effect from 1 July 2003. The head entity within the tax-consolidated group is Centamin Egypt Limited. The members of the tax-consolidated group are Pharaoh Gold Mines NL, Viking Resources NL and North African Resources NL.

Nature of tax funding arrangements and tax sharing agreements

Entities within the tax-consolidated group have entered into a tax funding arrangement and a tax-sharing agreement with the head entity. Under the terms of the tax-funding agreement, Centamin Egypt Limited and each of the entities in the tax-consolidated group has agreed to pay a tax-equivalent payment to or from the head entity, based on the current tax liability or current tax asset of the entity. Such amounts are reflected in amounts receivable from or payable to other entities in the tax-consolidated group.

The tax-sharing agreement entered into between members of the tax-consolidated group provides for the determination of the allocation of income tax liabilities between the entities should the head entity default on its tax payment obligations. No amounts have been recognised in the financial statements in respect of this agreement as payment of any amounts under the tax-sharing agreement is considered remote.

8. Segment reporting

The Group is engaged in the business of exploration and mining of precious metals only, which represents a single operating segment. The Board is the Group's chief operating decision maker within the meaning of IFRS 8.

Non-current assets other than financial instruments by country:

	31 December	31 December
	2015	2014
	US$'000	US$'000
Egypt	970,376	1,023,495
Ethiopia	336	3,835
Burkina Faso	76,209	48,893
Côte d'Ivoire	5,316	977
Australia	2	2
Jersey	115	156
	1,052,354	1,077,358

9. Trade and other receivables

	31 December	31 December
	2015	2014
	US$'000	US$'000
Non-current
Deposits	60	24
Value added taxation refund	-	621
	60	645

	31 December	31 December
	2015	2014
	US$'000	US$'000
Current
Gold sales debtors	20,472	24,057
Other receivables	3,312	916
	23,784	24,973

Trade and other receivables are classified as loans and receivables and are therefore measured at amortised cost.

The average age of the receivables is 14 days (2014: 21 days). No interest is charged on the receivables. There are no trade receivables past due and impaired at the reporting date, and thus no allowance for doubtful debts has been recognised. Of the trade receivables balance, the gold sales debtor is all receivable from Johnson Matthey of Canada. The amount due has been received in full subsequent to year end.

Other receivables represent GST and VAT amounts owing from the various jurisdictions that the Group operates in inventory returns to vendors where refunds are expected to occur.

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

10. Inventories

	31 December	31 December
	2015	2014
	US$'000	US$'000
Mining stockpiles and ore in circuit	28,291	35,768
Stores	106,484	104,860
	134,775	140,628

11. Prepayments

	31 December	31 December
	2015	2014
	US$'000	US$'000
Current
Prepayments	1,161	1,710
Fuel prepayments	-	-
	1,161	1,710
Movement in fuel prepayments⁽¹⁾
Balance at the beginning of the year	-	-
Fuel prepayment recognised	42,472	68,737
Less: provision charged to:⁽²⁾
Mine production costs (see Note 6)	(43,808)	(61,564)
Property, plant and equipment (see Note 6)	-	(6,953)
Inventories (see Note 6)	1,336	(220)
Balance at the end of the year	-	-

(1) Refer to Note 6, Exceptional Items, for further details.

(2) The cumulative fuel prepayment recognised and provision charged as at 31 December 2015 is as follows:

Fuel prepayment recognised (US$'000) 208,204

Provision charged to:

Mine production costs (US$'000) (195,156)

Property, plant and equipment (US$'000) (11,852)

Inventories (US$'000) (1,196)

	31 December	31 December
	2015	2014
	US$'000	US$'000
Non-current
EMRA⁽³⁾	28,750	23,750
	28,750	23,750

(3) With a view to demonstrating goodwill toward the Egyptian government, PGM made advance payments to EMRA which will be netted off against future profit share that becomes payable to EMRA.

12. Property, plant and equipment

					Mine
	Office		Plant and	Mining	development	Capital
	equipment	Buildings	equipment	equipment	properties	WIP	Total
	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000
Cost
Balance at 31 December 2014	5,401	1,186	565,836	221,178	232,921	116,772	1,143,294
Additions	103	8	147	3,779	-	28,781	32,818
Increase in rehabilitation asset	-	-	-	-	3,762	-	3,762
Disposals	-	-	-	(202)	-	-	(202)
Transfers	31	-	16,871	16,561	79,621	(113,084)	-
Balance at 31 December 2015	5,535	1,194	582,854	241,316	316,304	32,469	1,179,672
Accumulated depreciation
Balance at 31 December 2014	(4,280)	(234)	(67,980)	(72,339)	(69,497)	-	(214,330)
Depreciation and amortisation	(587)	(59)	(30,524)	(28,663)	(34,218)	-	(94,051)
Disposals	-	-	-	176	-	-	176
Balance at 31 December 2015	(4,867)	(293)	(98,504)	(100,826)	(103,715)	-	(308,205)
Cost
Balance at 31 December 2013	4,625	171	284,903	178,374	182,974	426,461	1,077,508
Additions	17	-	8	-	6,979	62,111	69,115
Decrease in rehabilitation asset	-	-	-	-	(5,161)	-	(5,161)
Acquisition of subsidiary	1,080	1,131	814	1,224	-	3	4,252
Disposals	(571)	(160)	(724)	(391)	-	(574)	(2,420)
Transfers	250	44	280,835	41,971	48,129	(371,229)	-
Balance at 31 December 2014	5,401	1,186	565,836	221,178	232,921	116,772	1,143,294
Accumulated depreciation
Balance at 31 December 2013	(3,077)	(80)	(42,983)	(46,867)	(34,774)	-	(127,781)
Acquisition of subsidiary	(765)	(146)	(649)	(1,224)	-	-	(2,784)
Depreciation and amortisation	(730)	(8)	(24,456)	(24,373)	(34,723)	-	(84,290)
Disposals	292	-	108	125	-	-	525
Balance at 31 December 2014	(4,280)	(234)	(67,980)	(72,339)	(69,497)	-	(214,330)
Net book value
As at 31 December 2014	1,121	952	497,855	148,839	163,424	116,772	928,964
As at 31 December 2015	668	901	484,350	140,490	212,589	32,469	871,467

In 2013 as a result of the significant decline in the gold price, the Group carried out a review of the recoverable amount of the property, plant and equipment. The review did not lead to a recognition of an impairment loss. The discount rate used in measuring value in use was 12% per annum and the assumed average gold price was US$1,342 per ounce. No impairment review was performed in 2014 or 2015 as no indicators of impairment were identified.

13. Exploration and evaluation asset

	31 December	31 December
	2015	2014
	US$'000	US$'000
Balance at the beginning of the period	123,999	59,849
Expenditure for the period	34,372	28,841
Acquisition of Ampella Mining Limited	-	37,637
Impairment of exploration and evaluation asset	(6,294)	(2,328)
Balance at the end of the period	152,077	123,999

The exploration and evaluation asset relates to the drilling, geological exploration and sampling of potential ore reserves.

In February 2015, the Company gave formal notice to Alecto Minerals plc ("Alecto") terminating the joint venture agreement entered into between the Company and Centamin in September 2013 with regards to the development of Alecto's licences in Ethiopia.

14. Available-for-sale financial assets

	31 December	31 December
	2015	2014
	US$'000	US$'000
Balance at the beginning of the period	409	989
Acquisitions	-	379
Disposals	-	(91)
Gain/(Loss) on foreign exchange movement	(560)	(352)
Loss on fair value of investment - other comprehensive income	(212)	(80)
Impairment reversal/(loss)	526	(436)
Balance at the end of the period	163	409

The available-for-sale financial asset at period end relates to a 6.66% (2014: 11.34%) equity interest in Nyota Minerals Limited ("Nyota"), a listed public company. During 2014, management made the decision to sell its interest in Nyota and the financial asset is classed as a current asset.

15. Trade and other payables

	31 December	31 December
	2015	2015
	US$'000	US$'000
Trade payables	25,461	17,067
Other creditors and accruals	18,508	16,975
	43,969	34,042

Trade payables principally comprise the amounts outstanding for trade purchases and ongoing costs. The average credit period taken for trade purchases is 22 days (2014: 16 days). Trade payables are interest free for periods ranging from 30 to 180 days. Thereafter interest is charged at commercial rates. The Group has financial risk management policies in place to ensure that all payables are paid within the credit timeframe.

The directors consider that the carrying amount of trade payables approximate their fair value.

16. Provisions

	31 December	31 December
	2015	2014
	US$'000	US$'000
Current
Employee benefits⁽¹⁾	576	307
	576	307
Non-current
Restoration and rehabilitation⁽²⁾	7,139	3,015
	7,139	3,015
Movement in restoration and rehabilitation provision
Balance at beginning of the year	3,015	7,638
Additional provision recognised/(provision derecognised)	3,762	(5,161)
Interest expense - unwinding of discount	362	538
Balance at end of the year	7,139	3,015

(1) Employee benefits relate to annual, sick and long service leave entitlements.

(2) The provision for restoration and rehabilitation represents the present value of the directors' best estimate of the future outflow of economic benefits that will be required to remove the facilities and restore the affected areas at the Group's sites discounted by 8.17% (2014: 12.00%). This restoration and rehabilitation estimate, which is reviewed on annual basis, has been made on the basis of benchmark assessments of restoration works required following mine closure and after taking into account the projected area to be disturbed over the life of the mine, being 20 years. The annual review undertaken as at 31 December 2015 has resulted in the US$3.8 million increase in the provision.

17. Issued capital

	31 December 2015		31 December 2014
	Number	US$'000	Number	US$'000
Fully paid ordinary shares
Balance at beginning of the period	1,152,107,984	661,573	1,101,397,381	612,463
Issue of shares	-	38	50,710,603	48,218
Own shares acquired during the period	-	-	-	(1,743)
Transfer to share option reserve	-	3,979	-	2,635
Balance at end of the period	1,152,107,984	665,590	1,152,107,984	661,573

The authorised share capital is an unlimited number of no par value shares.

At 31 December 2015 the Company held 5,569,709 ordinary shares in treasury (2014: 9,821,383 ordinary shares). These shares are held by the trustee pursuant to the Deferred Bonus Share Plan.

Fully paid ordinary shares carry one vote per share and carry the right to dividends. See Note 27 for more details of the share options.

18. Reserves

	31 December	31 December
	2015	2014
	US$'000	US$'000
Share option reserve	2,469	4,098
	2,469	4,098

	31 December	31 December
	2015	2014
	US$'000	US$'000
Share option reserve
Balance at beginning of the period	4,098	5,761
Share-based payments expense	2,456	2,493
Transfer to accumulated profits	(106)	(1,521)
Transfer to issued capital	(3,979)	(2,635)
Balance at the end of the period	2,469	4,098

The share option reserve arises on the grant of share options to employees under the employee share option plan. Amounts are transferred out of the reserve and into issued capital when the options and warrants are exercised/vested. Amounts are transferred out of the reserve into accumulated profits when the options and warrants are forfeited.

19. Commitments for expenditure

(a) Capital expenditure commitments

	31 December	31 December
	2015	2014
	US$'000	US$'000
Plant and equipment(1)
No longer than one year	-	-
Longer than one year and not longer than five years	-	-
Longer than five years	-	-
	-	-

(1) As a result of the completion of Stage 4, the Group had no commitments for capital expenditure as at 31 December 2015.

(b) Operating lease commitments

The future aggregate minimum lease payments under non-cancellable operating leases are as follows:

	31 December	31 December
	2015	2014
	US$'000	US$'000
Office premises
No longer than one year	68	63
Longer than one year and not longer than five years	119	195
	187	258

Operating lease commitments are limited to office premises in Jersey.

20. Contingent liabilities and contingent assets

Contingent liabilities

Fuel supply

In January 2012, the Group received a letter from Chevron to the effect that Chevron would only be able to supply Diesel Fuel Oil ("DFO") to the mine at Sukari at international prices rather than at local subsidised prices. It is understood that the reason that this letter was issued was that Chevron had received a letter instructing it to do so from the Egyptian General Petroleum Corporation ("EGPC"). It is further understood that EGPC itself issued this instruction because it had received legal advice from the Legal Advice Department of the Council of State (an internal government advisory department) that the companies operating in the gold mining sector in Egypt were not entitled to such subsidies. In November 2012, the Group received a further demand from Chevron for the repayment of fuel subsidies received during the period from late 2009 through to January 2012, amounting to EGP403 million (approximately US$51 million at current exchange rates).

The Group has taken detailed legal advice on this matter (and, in particular, on the opinion given by the Legal Advice Department of the Council of State) and in June 2012 lodged an appeal against EGPC's decision in the Administrative Courts. Again, the Group believes that its grounds for appeal are strong and that there is a good prospect of success. However, as a practical matter, and in order to ensure the continuation of supply whilst the matter is resolved, the Group has since January 2012 advanced funds to its fuel supplier, Chevron, based on the international price for fuel.

As at the date of this document, no decision had been taken by the courts regarding this matter. The Group remains of the view that an instant move to international fuel prices is not a reasonable outcome and will look to recover funds advanced thus far should the court proceeding be successfully concluded. However, management recognises the practical difficulties associated with reclaiming funds from the government and for this reason has fully provided against the prepayment of US$208.0 million, as an exceptional item. Refer to Note 6 of the accompanying financial statements for further details on the impact of this exceptional provision on the Group's results for 2015.

No provision has been made in respect of the historic subsidies prior to January 2012 as, based on legal advice, the Company believes that the prospects of a court finding in its favour in relation to this matter remain very strong.

Concession Agreement court case

On 30 October 2012, the Administrative Court in Egypt handed down a judgment in relation to a claim brought by, amongst others, an independent member of a previous parliament, in which he argued for the nullification of the agreement that confers on the Group rights to operate in Egypt. This agreement, the Concession Agreement, was entered into between the Arab Republic of Egypt, the Egyptian Mineral Resources Authority ("EMRA") and Centamin's wholly‑owned subsidiary Pharaoh Gold Mines ("PGM"), and was approved by the People's Assembly as Law 222 of 1994.

In summary that judgment states that, although the Concession Agreement itself remains valid and in force, insufficient evidence had been submitted to court in order to demonstrate that the 160km2 "exploitation lease" between PGM and EMRA had received approval from the relevant minister as required by the terms of the Concession Agreement. Accordingly, the court found that the exploitation lease in respect of the area of 160km² was not valid although it stated that there was in existence such a lease in respect of an area of 3km2. Centamin, however, is in possession of the executed original lease documentation which clearly shows that the 160km² exploitation lease

was approved by the Minister of Petroleum and Mineral Resources. It appears that an executed original document was not supplied to the court.

Upon notification of the judgment the Group took various steps to protect its ability to continue to operate the mine at Sukari. These included lodging a formal appeal before the Supreme Administrative Court on 26 November 2012. In addition, in conjunction with the formal appeal the Group applied to the Supreme Administrative Court to suspend the initial decision until such time as the court was able to consider and rule on the merits of the appeal. On 20 March 2013 the court upheld this application thus suspending the initial decision and providing assurance that normal operations would be able to continue whilst the appeal process is under way.

EMRA has lodged its own appeal in relation to this matter which is supportive of the Company's position in this matter.

Furthermore, in late December 2012, the Minister of Petroleum lodged a supporting appeal and shortly thereafter publicly indicated that, in his view, the terms of the Concession Agreement were fair and that the "exploitation" lease was valid. The Minister of Petroleum also expressed support for the investment and expertise that Centamin brings to the country. The Company believes this demonstrates the government's commitment to its investment at Sukari and the desire to stimulate further investment in the Egyptian mining industry.

The Company has taken extensive legal advice on the merits of its appeal from a number of leading Egyptian law firms who have confirmed that the proper steps were followed with regard to the grant of the 160km² lease. In addition, the Company has been advised that it should benefit from law no. 32 of 2014, which came into force in April 2014 and which restricts the capacity for third parties to challenge any contractual agreement between the Egyptian government and an investor. This law, whilst in force and ratified by the new parliament, is currently under review by the Supreme Constitutional Court of Egypt. It therefore remains of the view that the appeal is based on strong legal grounds and will ultimately be successful.

In the event that the appellate court fails to be persuaded of the merits of the case put forward by the Group, the operations at Sukari may be adversely effected to the extent that the Group's operation exceeds the exploitation lease area of 3km² referred to in the original court decision.

The Company remains confident that normal operations at Sukari will be maintained whilst the appeal process is under way. Centamin does not currently see the need to take the matter to a court outside of Egypt as Centamin remains of the belief that the Egyptian Court will rule in Centamin's favour.

Contingent assets

There were no contingent assets at year end (31 December 2014: nil).

21. Subsidiaries

The parent entity of the Group is Centamin plc, incorporated in Jersey, and the details of its subsidiaries are as follows:

	Ownership interest
		31 December	31 December
	Country of	2015	2014
	incorporation	%	%
Centamin Egypt Limited	Australia	100	100
Viking Resources Limited	Australia	100	100
North African Resources NL	Australia	100	100
Pharaoh Gold Mines NL	Australia	100	100
Sukari Gold Mining Co	Egypt	50	50
Centamin UK Limited (voluntarily struck off)	United Kingdom	-	100
Sheba Exploration Holdings Limited⁽¹⁾	United Kingdom	100	100
Centamin Group Services Limited	Jersey	100	100
Centamin Holdings Limited	Jersey	100	100
Sheba Exploration Limited	United Kingdom	100	100
Centamin Limited	Bermuda	100	100
Centamin West Africa Holdings Limited	United Kingdom	100	100
Ampella Mining Limited	Australia	100	100
Ampella Share Plan Ltd	Australia	100	100
Ampella Mining Gold Pty Ltd	Australia	100	100
West African Gold Reserve Pty Ltd	Australia	100	100
Ampella Mining Gold SARL	Burkina Faso	100	100
Ampella Mining SARL	Burkina Faso	100	100
Ampella Mining Côte d'Ivoire	Côte d'Ivoire	100	100
Centamin Cote d'Ivoire	Côte d'Ivoire	100	-
Ampella Mining Exploration CdI	Côte d'Ivoire	100	-
Ampella Resources Burkina Faso	Burkina Faso	100	-
Konkera SA	Burkina Faso	90	-

(1) Previously Sheba Exploration (UK) Plc.

Through its wholly owned subsidiary, PGM, the Company entered into the Concession Agreement with EMRA and the Arab Republic of Egypt granting PGM and EMRA the right to explore, develop, mine and sell gold and associated minerals in specific concession areas located in the Eastern Desert of Egypt. The Concession Agreement came into effect under Egyptian law on 13 June 1995.

In 2005 PGM, together with EMRA, were granted an exploitation lease over 160km² surrounding the Sukari Project site. The exploitation lease was signed by PGM, EMRA and the Egyptian Minister of Petroleum and gives tenure for a period of 30 years, commencing 24 May 2005 and extendable by PGM for an additional 30 years upon PGM providing reasonable commercial justification.

In 2006 SGM was incorporated under the laws of Egypt. SGM was formed to conduct exploration, development, exploitation and marketing operations in accordance with the Concession Agreement. Responsibility for the day to day management of the project rests with the general manager, who is appointed by PGM.

The fiscal terms of the Concession Agreement require that PGM solely funds SGM. PGM is however entitled to recover from sales revenue recoverable costs, as defined in the Concession Agreement. EMRA is entitled to a share of SGM's net production surplus or profit share (defined as revenue less payment of the fixed royalty to ARE and recoverable costs). As at 31 December 2015, PGM has not recovered its cost and accordingly, no EMRA entitlement has been recognised to date, It is anticipated that the first payment to EMRA will become payable during 2017. Any payment made to EMRA pursuant to these provisions of the Concession Agreement will be recognised as a variable charge in the income statement.

The Concession Agreement grants certain tax exemptions, including the following:

· from 1 April 2010, being the date of commercial production, the Sukari Project is entitled to a 15 year exemption from any taxes imposed by the Egyptian government on the revenues generated from the Sukari Project. PGM and EMRA intend that SGM will in due course file an application to extend the tax free period for a further 15 years. The extension of the tax-free period requires that there has been no tax problems or disputes in the initial period and that certain activities in new remote areas have been planned and agreed by all parties;

· PGM and SGM are exempt from custom taxes and duties with respect to the importation of machinery, equipment and consumable items required for the purpose of exploration and mining activities at the Sukari Project. The exemption shall only apply if there is no local substitution with the same or similar quality to the imported machinery, equipment or consumables. Such exemption will also be granted if the local substitution is more than 10% more expensive than the imported machinery, equipment or consumables after the additional of the insurance and transportation costs;

· PGM, EMRA and SGM and their respective buyers will be exempt from any duties or taxes on the export of gold and associated minerals produced from the Sukari Project;

· PGM at all times is free to transfer in US$ or other freely convertible foreign currency any cash of PGM representing its share of net proceeds and recovery of costs, without any Egyptian government limitation, tax or duty;

· PGM's contractors and sub-contractors are entitled to import machinery. Equipment and consumable items under the "Temporary Release System" which provided exemption from Egyptian customs duty; and

· legal title of all operating assets of PGM will pass to EMRA when cost recovery is completed. The right of use of all fixed and movable assets remains with PGM and SGM.

22. Auditor's remuneration

The analysis of the auditor's remuneration is as follows:

	31 December	31 December
	2015	2014
	US$'000	US$'000
Fees payable to the Company's auditor and its associates for the audit of the Company's annual accounts	375	300
Additional fees relating to the prior year	-	-
Fees payable to the Company's auditor and its associates for other services to the Group
- the audit of the Company's subsidiaries	150	100
Total audit fees	525	400
Non-audit fees:
Audit related assurance services - interim review	104	100
Other assurance services	22	125
Tax compliance services	-	-
Tax advisory services	-	-
Other expenses	14	-
Total non-audit fees	140	225

The Audit and Risk Committee and the external auditor have safeguards in place to avoid the possibility that the auditor's objectivity and independence could be compromised. These safeguards include the implementation of a policy on the use of the external auditor for non-audit related services.

Where it is deemed that the work to be undertaken is of a nature that is generally considered reasonable to be completed by the auditor of the Company for sound commercial and practical reasons, the conduct of such work will be permissible provided that it has been pre-approved. All these services are also subject to a predefined fee limit. Any work performed in excess of this limit must be approved by the Audit and Risk Committee.

23. Joint arrangements

The consolidated entity has an interest in the following joint arrangement:

	Percentage interest
	31 December	31 December
	2015	2014
	%	%
Egyptian Pharaoh Investments⁽¹⁾	50	50

(1) Dormant company.

The Group has a US$1 (cash) interest in the above joint operation. The amount is included in the consolidated financial statements of the Group. There are no capital commitments arising from the Group's interests in joint operation are disclosed in Note 19.

24. Earnings per share

	31 December	31 December
	2015	2014
	Cents per share	Cents per share
Basic earnings per share	4.506	7.208
Diluted earnings per share	4.441	7.113

Basic earnings per share

The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share arenas follows:

	31 December	31 December
	2015	2014
	US$'000	US$'000
Earnings used in the calculation of basic EPS	51,570	81,562

	31 December	31 December
	2015	2014
	Number	Number
Weighted average number of ordinary shares for the purpose of basic EPS	1,144,499,697	1,131,521,652

Diluted earnings per share

The earnings and weighted average number of ordinary shares used in the calculation of diluted earnings per share are as follows:

	31 December	31 December
	2015	2014
	US$'000	US$'000
Earnings used in the calculation of diluted EPS	51,570	81,562

	31 December	31 December
	2015	2014
	Number	Number
Weighted average number of ordinary shares for the purpose of basic EPS	1,144,499,697	1,131,521,652
Shares deemed to be issued for no consideration in respect of employee options	16,649,502	15,098,842
Weighted average number of ordinary shares used in the calculation of diluted EPS	1,161,149,199	1,146,620,494

No potential ordinary shares were excluded from the calculation of weighted average number of ordinary shares for the purpose of diluted earnings per share.

25. Notes to the statements of cash flows

(a) Reconciliation of cash and cash equivalents

For the purpose of the statement of cash flows, cash and cash equivalents includes cash on hand and at bank and deposits.

	31 December	31 December
	2015	2014
	US$'000	US$'000
Cash and cash equivalents	199,616	125,659

(b) Reconciliation of profit for the year to cash flows from operating activities

	31 December	31 December
	2015	2014
	US$'000	US$'000
Profit for the year	51,570	81,562
Add/(less) non-cash items:
Depreciation/amortisation of property, plant and equipment	94,051	84,290
Stock write-off	-	11
Increase/(decrease) in provisions	11,231	(5,234)
Foreign exchange (gain)/loss	(3,471)	4,455
Impairment (reversal of)/loss on available-for sale financial assets	(526)	436
Loss on disposal of property, plant and equipment	-	1,093
Impairment of exploration and evaluation assets	6,294	2,328
Share-based payments expense	2,350	2,493
Changes in working capital during the period:
(Increase)/decrease in trade and other receivables	1,188	454
Decrease/(increase) in inventories	5,853	(5,359)
Decrease/(increase) in prepayments	549	(4,832)
Decrease/(increase) in trade and other payables	16,722	(44,885)
Cash flows generated from operating activities	185,811	116,812

During the year there have been no non-cash financing and investing activities. In 2014 there was the Ampella asset acquisition as disclosed in Note 13.

26. Financial instruments

(a) Group risk management

The Group manages its capital to ensure that entities within the Group will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the cash and equity balance. The Group's overall strategy remains unchanged from the previous financial period.

26. Financial instruments

The Group has no debt and thus not geared at year-end or in the prior year. The capital structure consists of cash and cash equivalents and equity attributable to equity holders of the parent, comprising issued capital and reserves as disclosed in Notes 17 and 18. The Group operates in Australia, Jersey, Egypt, Burkina Faso and Cote d'Ivoire. None of the Group's entities are subject to externally imposed capital requirements.

The Group utilises inflows of funds toward the ongoing exploration and development of the Sukari Gold Project in Egypt, and the exploration projects in Burkina Faso and Cote d'Ivoire.

Categories of financial assets and liabilities:

	31 December 2015 US$'000	31 December 2014 US$'000
Financial assets
Available for sale assets	163	409
Cash and cash equivalents	199,616	125,659
Trade and other receivables	23,844	25,618
	223,623	151,686

Financial liabilities
Trade and other payables	43,969	34,042
	43,969	34,042

(b) Financial risk management and objectives

The group's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential risk adverse effects and ensure that net cash flows are sufficient to support the delivery of the group's financial targets whilst protecting future financial security. The group continually monitors and tests its forecast financial position against these objectives.

The group's activities expose it to a variety of financial risks: market; commodity; credit; liquidity; foreign exchange; and interest rate. These risks are managed under Board approved directives through the Audit Committee. The group's principal financial instruments comprise interest bearing cash and cash equivalents. Other financial instruments include trade receivables and trade payables, which arise directly from operations.

It is, and has been throughout the period under review, Group policy that no speculative trading in financial instruments be undertaken.

The group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the Australian dollar, Great British pound and Egyptian pound. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities that are denominated in a currency that is not the entity's functional currency. The risk is measured by regularly monitoring, forecasting and performing sensitivity analyses on the group's financial position.

Financial instruments denominated in Great British pound, Australian dollar and Egyptian pound are as follows:

	Great British Pound		Australian dollar		Egyptian Pound
	31 December 2015 US$'000	31 December 2014 US$'000	31 December 2015 US$'000	31 December 2014 US$'000	31 December 2015 US$'000	31 December 2014 US$'000
Financial assets
Cash and cash equivalents	332	127	2,800	5,919	1,411	1,246
Available for sale assets	146	390	17	19	-	-
	478	517	2,817	5,938	1,411	1,246
Financial liabilities
Trade and other payables	390	1,476	10,905	1,161	9,402	7,311
	390	1,476	10,905	1,161	9,402	7,311
Net exposure	88	(959)	(8,088)	4,777	(7,991)	(6,065)

The following table summarises the sensitivity of financial instruments held at the reporting date to movements in the exchange rate of the Great British and Egyptian pounds and Australian dollar to the United States dollar, with all other variables held constant. The sensitivities are based on reasonably possible changes over a financial period, using the observed range of actual historical rates.

	Impact on profit		Impact on equity
	31 December 2015 US$'000	31 December 2014 US$'000	31 December 2015 US$'000	31 December 2014 US$'000
US$/GB£ increase by 10%	(35)	123	(13)	(35)
US$/GB£ decrease by 10%	35	(123)	13	35

US$/A$ increase by 10%	737	(483)	(1)	(2)
US$/A$ decrease by 10%	(737)	483	1	2

US$/E£ increase by 10%	726	463	-	-
US$/E£ decrease by 10%	(726)	(463)	-	-

The group's sensitivity to foreign currency has decreased at the end of the current period mainly due to the decrease in foreign currency cash holdings in Australian dollars and a corresponding increase in US dollar cash holdings.

The group has not entered into forward foreign exchange contracts. Natural hedges are utilised wherever possible to offset foreign currency liabilities. The Company maintains a policy of not hedging its currency positions and maintains currency holdings in line with underlying requirements and commitments.

(d) Commodity price risk

The group's future revenue forecasts are exposed to commodity price fluctuations, in particular gold prices. The Group has not entered into forward gold hedging contracts.

(e) Interest rate risk

The group's main interest rate risk arises from cash and short term deposits and is not considered to be a material risk due to the short term nature of these financial instruments. Cash deposits are placed on term period of no more than 30 days at a time.

The financial instruments exposed to interest rate risk and the group's exposure to interest rate risk as at balance date were as follows:

Weighted Average

Effective Interest Rate

Less than 1 month

1-12 months

>12 months

Total

US$'000

Consolidated
31 December 2015
Financial assets
Variable interest rate instruments	0.22	53,471	146,093	-	199,564
Non- interest bearing	-	24,059	-	-	24,059
		77,530	146,093	-	223,623
Financial liabilities
Variable interest rate instruments	-	-	-	-	-
Non-interest bearing	-	43,969	-	-	43,969
		43,969	-	-	43,969
31 December 2014
Financial assets
Variable interest rate instruments	0.23	26,863	98,770	-	125,633
Non- interest bearing	-	26,053	-	-	26,053
		52,916	98,770	-	151,686
Financial liabilities
Variable interest rate instruments	-	-	-	-	-
Non-interest bearing	-	34,042	-	-	34,042
		34,042	-	-	34,042

(f) Liquidity risk

The group's liquidity position is managed to ensure that sufficient funds are available to meet its financial commitments in a timely and cost effective manner.

Ultimate responsibility or liquidity risk management rests with the Board of Directors, who has established an appropriate management framework for the management of the group's funding requirements. The group manages liquidity risk by maintaining adequate cash reserves and management monitors rolling forecasts of the group's liquidity on the basis of expected cash flow. The tables above reflect a balanced view of cash inflows and outflows and shows the implied risk based on those values. Trade payables and other financial liabilities originate from the financing of assets used in the group's ongoing operations. These assets are considered in the group's overall liquidity risk. Management continually reviews the group liquidity position including cash flow forecasts to determine the forecast liquidity position and maintain appropriate liquidity levels.

Liquidity risk:	Less than 1 month	1-12 months	>12 months	Total
	US$'000	US$'000	US$'000	US$'000
Consolidated
31 December 2015
Financial assets
Variable interest rate instruments	53,471	146,093	-	199,564
Non- interest bearing	25,531	-	-	25,531
	79,002	146,093	-	225,095
Financial liabilities
Variable interest rate instruments	-	-	-	-
Non-interest bearing	43,969	-	-	43,969
	43,969	-	-	43,969
31 December 2014
Financial assets
Variable interest rate instruments	26,863	98,770	-	125,633
Non- interest bearing	25,325	-	-	49,075
	52,188	98,770	-	174,708
Financial liabilities
Variable interest rate instruments	-	-	-	-
Non-interest bearing	34,042	-	-	34,042
	34,042	-	-	34,042

(g) Credit risk

Credit risk refers to the risk that a counter-party will default on its contractual obligations resulting in financial loss to the group. The group has adopted a policy of only dealing with credit-worthy counter-parties and obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from defaults. The group measures credit risk on a fair value basis. The group's credit risk is concentrated on one entity, but the group has good credit checks on customers and none of the trade receivables from the customer has been past due. Also, the cash balances held in Australian dollars which are held with a financial institution with a high credit rating.

The gross carrying amount of financial assets recorded in the financial statements represents the group's maximum exposure to credit risk without taking account of the value of collateral or other security obtained.

(h) Fair value

The carrying amount of financial assets and financial liabilities recorded in the financial statements represents their respective fair values, principally as a consequence of the short term maturity thereof.

(i) Fair value measurements recognised in the statement of financial position

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into levels 1 to 3 based on the degree to which the fair value is observable:

Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

	2015
	Level 1	Level 2	Level 3	Total
Available for sale financial assets	163	-	-	163

	2014
	Level 1	Level 2	Level 3	Total
Available for sale financial assets	409	-	-	409

There were no financial assets or liabilities subsequently measured at fair value on Level 3 fair value measurement bases.

27. Share-based payments

Restricted Share Plan

The Company's new restricted share plan, as approved by shareholders at the AGM in 2015, allows the Company the right to grant Awards (as defined below) to employees of the group. Awards may take the form of either conditional share awards, where shares are transferred conditionally upon the satisfaction of performance conditions; or share options, which may take the form of nil cost options or have a nominal exercise price, the exercise of which is again subject to satisfaction of applicable performance conditions.

To date the Company has granted 5,145,000 conditional awards to employees of the group.

Conditional share awards and options together constitute "Awards" under the Plan and those in receipt of Awards are "Award Holders".

A detailed summary of the scheme rules is set out in the 2015 AGM proxy materials which are available at www.centamin.com.

In summary, Awards will vest following the passing of three years from the date of the Award and vesting will be subject to satisfaction of Performance Conditions. For the purpose of the Performance Conditions, the Award will be divided into up to three tranches to be assessed against separate Performance Conditions measured over a three year period. Although the precise Performance Conditions may vary between Awards, the Performance Conditions adopted at the date of the Plan which apply to the first grant are as follows:

- 20% of the Award shall be assessed by reference to a target total shareholder return (TSR).

- 50% of the Award shall be assessed by reference to absolute growth in earnings per share (EPS).

- 30% of the Award shall be assessed by reference to compound growth in gold production.

The above measures are assessed by reference to current market practice and the Remuneration Committee will have regard to market practice when establishing the precise Performance Conditions for future Awards.

Where the performance conditions have been met, in the case of Conditional Awards, 50% of the total shares under the Award will be issued or transferred to the Award Holders on or as soon as possible following the specified Vesting Date, with the remaining 50% being issued or transferred on the second anniversary of the Vesting Date.

Restricted Share Plan awards granted during the period:

	RSP 2015
Grant date	4 June 2015
Number of instruments	5,145,000
TSR : Fair value at grant date £ ⁽¹⁾	0.5150
TSR : Fair value at grant date US$ ⁽¹⁾	0.7894
EPS : Fair value at grant date £ ⁽¹⁾	0.6520
EPS : Fair value at grant date US$ ⁽¹⁾	0.9994
Gold Production : Fair value at grant date £ ⁽¹⁾	0.6520
Gold Production : Fair value at grant date US$ ⁽¹⁾	0.9994
Vesting period (years)	3
Expected volatility	0 - 72.33%
Expected dividend yield (%)	1.97%

⁽¹⁾The vesting of 20% the awards granted under this plan are dependent on a TSR performance condition. As relative TSR is defined

as a market condition under IFRS 2 "Share-based Payment", this requires that the valuation model used takes into account the anticipated performance outcome. We have therefore applied a Monte Carlo simulation model. The simulation model takes into account the probability of performance based on the expected volatility of Centamin and the peer group companies and the expected correlation of returns between the companies in the comparator group.

The remaining 80% of the awards are subject to EPS and gold production performance conditions. As these are classified as non-market conditions under IFRS 2 they do not need to be taken into account when determining the fair value. These grants have been valued using a Black-Scholes model.

The fair value calculated was then converted at the closing £:US$ foreign exchange rate on that day.

The awards due to be granted in April 2016 will vest following the passing of three years. Vesting will be subject to the satisfaction of the Performance Conditions (and the two year holding period for 50% of the award) which will be divided into four tranches, as follows:

• TSR: 20% of the award shall be assessed by reference to a target total shareholder return ("TSR"). If the top end of the TSR target is met (currently anticipated to be if the Company is ranked equal to or better than the upper quarter total shareholder return of selected comparator companies, see below) all 20% of the award tranche shall vest. If the Company is ranked at the median level in a table of comparator companies by reference to TSR, 25% of the award tranche shall vest (i.e. 5% of the award). Proportionate amounts of the award tranche will vest for results in between.

The comparator group is as follows: Agnico Eagle Mines Ltd, AngloGold Ashanti, Centerra Gold, Eldorado Gold, Gold Fields Ltd, Kinross Gold Corporation, IAMGOLD Resources Inc, Petropavlovsk, Randgold Resources, Yamana Gold, Inc, Acacia Mining plc, Alacer Gold, B2 Gold Corp and Endeavour Mining.

• Mineral Reserves: 30% of the award shall be assessed by reference to mineral reserve replacement and growth. Reserve replacement is calculated based on the cumulative reserve estimates (from June 2015 to the most recent reserve estimate prior to vesting) compared with the cumulative reserves mined from 31 December 2015 to 31 December 2018. All 30% of the award will vest if the ratio is 120%. 25% of the award tranche will vest if the ratio is at least 75% (i.e. 7.5% of the award).

• EBITDA: 20% of the award shall be assessed by reference to compound growth in EBIDTA. If a compound annual growth rate of 9% of EBITDA is achieved, all 20% of the award tranche shall vest. If a compound annual growth rate of 5% of EBITDA is achieved 25% of the award tranche shall vest (i.e. 5% of the award). Proportionate amounts of the award tranche will vest for results in between.

• Gold Production: 30% of the award shall be assessed by reference to compound growth in gold production. If a compound annual growth rate of 8% of gold production is achieved, all 30% of the award tranche shall vest. If a compound annual growth rate of 4% of gold production is achieved 25% of the award tranche shall vest (i.e. 7.5% of the award). Proportionate amounts of the award tranche will vest for results in between.

As Sukari reaches optimum production rates, the relative year-on-year rate of growth slows. Maintaining production rates at this optimum level still represents an award, with an appropriate incentive to further improve production rates through efficiency and optimization.

The above measures are assessed by reference to current market practice and the Remuneration Committee will have regard to current market practice when establishing the precise performance conditions for awards.

Deferred Bonus Share Plan ("DBSP")

In 2012, the Company implemented the DBSP which is a long‑term share incentive arrangement for senior management (but not executive directors) and other employees (participants).

On 4 June 2013, the group offered to both the beneficiaries of the shares awarded under the ELFSP and to the majority of the beneficiaries of the options granted under the EOS the choice to replace their awards and options with awards under the DBSP. The group has accounted for this change as modifications to the share-based payment plans and will be recognising the incremental fair value granted, measured in accordance with IFRS 2, by this replacement over the vesting period of the new DBSP awards.

Under this offer, each participant has been granted a number of awards under the DBSP equivalent to the number of shares or options held under the ELFSP and EOS respectively. Such DBSP awards shall be subject to the terms and conditions of the DBSP and shall ordinarily vest in three equal tranches on the anniversary of the grant date, conditional upon the continued employment with the group. All offers made to participants were accepted. The award of the deferred shares will not have any performance criteria attached. They will however be subject to a service period.

Historic plans

The historic plans, namely the executive directors loan funded share plan ("EDLFSP") and employee loan funded share plan ("ELFSP") 2011 Employee Option Scheme ("2011 EOS") are no longer in use and all shares awarded have either being forfeited, lapsed or transferred to other schemes. The residual accrual in relation to these schemes has been expensed to the consolidated statement of comprehensive income.

28. Key management personnel compensation

Key management personnel are persons having authority and responsibility for planning, directing and controlling the activities of the group, directly or indirectly, including any director (executive or otherwise) of the group.

The aggregate compensation made to key management personnel of the consolidated entity and the Company is set out below:

	31 December	31 December
	2015	2014
	US$	US$
Short-term employee benefits	6,184,750	7,567,732
Long-term employee benefits	-	1,642
Post-employment benefits	22,025	59,285
Share-based payments	1,810,805	2,106,223
Total	8,017,580	9,734,882

29. Related party transactions

(a) Equity interests in related parties

Equity interests in subsidiaries

Details of the percentage of ordinary shares held in subsidiaries are disclosed in Note 21.

Equity interests in associates and jointly controlled arrangements

Details of interests in joint ventures are disclosed in Note 23.

(b) Key management personnel compensation

Details of key management personnel compensation are disclosed above in Note 28.

The details of the movement in key management personnel equity holdings of fully paid ordinary shares in Centamin plc during the financial period ended 31 December 2015 are as follows:

	Balance at	Granted as	Received		Balance at	Balance
	1 January	remuneration	on exercise	Net other	31 December	held
31 December 2015	2015	(DBSP)	of options	change⁽¹⁾	2015	nominally
J El-Raghy	71,445,086	-		-	71,445,086	-
T Schultz	30,000	-	-	-	30,000	-
G Haslam	102,056	-	-	-	102,056	-
M Arnesen	15,000	-	-	34,000	49,000	-
M Bankes	150,000	-	-	-	150,000	-
K Tomlinson	24,400	-	-	-	24,400	-
P Louw	2,137,500	-	500,000	(112,000)	2,525,500	-
A Pardey	2,185,000	-	900.000	(116,200)	2,968,800	-
R Osman	800,000	-	300,000	(116,666)	983,334	-
H Brown	550,000	-	100,000	-	650,000	-
D Le Masurier	300,000	-	200,000	-	500,000	-
L Gregory	300,000	-	150,000	(20,000)	430,000	-
Y El-Raghy	637,414	-	200,000	(56,781)	780,633	-
T Smith	-	-	400,000	(25,000)	375,000	-
L Sobey	390,000	-	-	(390,000)	-	-
A Davidson	450,000	-	200,000	(30,000)	620,000	-

Since 31 December 2015 to the date of this report there have been no transactions notified to the company under DTR 3.1.2.R.

The details of the movement in key management personnel equity holdings of fully paid ordinary shares in Centamin plc during the financial period ended 31 December 2014 are as follows:

	Balance at	Granted as	Received		Balance at	Balance
	1 January	remuneration	on exercise	Net other	31 December	held
31 December 2014	2014	(DBSP)	of options	change⁽¹⁾	2014	nominally
J El-Raghy	71,445,086	-	-	-	71,445,086	-
T Schultz	1,030,000	-	-	(1,000,000)	30,000	-
G Haslam	102,056	-	-	-	102,056	-
M Arnesen	15,000	-	-	-	15,000	-
M Bankes	120,000	-	-	30,000	150,000	-
K Tomlinson	-	-	-	24,400	24,400	-
P Louw	1,737,500	400,000	-	-	2,137,500	-
A Pardey	1,785,000	400,000	-	-	2,185,000	-
R Osman	600,000	200,000	-	-	800,000	-
H Brown	475,000	75,000	-	-	550,000	-
D Le Masurier	-	300,000	-	-	300,000	-
L Gregory	-	300,000	-	-	300,000	-
Y El-Raghy	510,000	170,000	-	(42,586)	637,414	-
T Smith	-	300,000	-	-	300,000	-
L Sobey	300,000	100,000	-	(10,000)	390,000	-
A Davidson	-	450,000	-	-	450,000	-

(1) "Net other change" relates to the on market acquisition or disposal of fully paid ordinary shares, including the forfeiture of shares awarded under the LFSP and DBSP and the replacement of awards under the ELFSP with shares awarded under the DBSP.

d) Key management personnel share option holdings

There were no options held, granted or exercised during the year by directors or senior management in respect of ordinary shares in Centamin plc.

e) Other transactions with key management personnel

The related party transactions for the year ended 31 December 2015 are summarised below:

Josef El-Raghy is a director and shareholder of El-Raghy Kriewaldt Pty Ltd ("El‑Raghy Kriewaldt"). El-Raghy Kriewaldt provides office premises to the Company. All dealings with El-Raghy Kriewaldt are in the ordinary course of business and on normal terms and conditions. Rent and office outgoings paid to El-Raghy Kriewaldt during the period were A$62,595 or US$46,820 (31 December 2014: A$57,898 or US$51,920).

f) Transactions with the government of Egypt

Royalty costs attributable to the government of Egypt of US$15,197,860 (2014: US$14,143,710) were incurred in 2014.

With a view to demonstrating goodwill toward the Egyptian government during the year PGM has made advance payments to EMRA of US$5,000,000 (2014: US$4,800,000) which will be netted off against any future profit share that becomes payable to EMRA.

g) Transactions with other related parties

Other related parties include the parent entity, subsidiaries, and other related parties.

During the financial period, the Company recognised tax payable in respect of the tax liabilities of its wholly owned subsidiaries. Payments to/from the Company are made in accordance with terms of the tax funding arrangement.

During the financial period the Company provided funds to and received funding from subsidiaries.

All amounts advanced to related parties are unsecured. No expense has been recognised in the period for bad or doubtful debts in respect of amounts owed by related parties.

Transactions and balances between the Company and its subsidiaries were eliminated in the preparation of consolidated financial statements of the group.

30. Dividends per share

The dividends paid in 2015 were US$33,786,831 and are reflected in the consolidated statement of the changes in equity for the period (2014: US$9,923,308).

A final dividend in respect of the year ended 31 December 2015 of 1.97 US cents per share, totalling US$22,696,527 has been approved by the Board of Directors and is subject to shareholder approval at the annual general meeting on 11 May 2016. These financial statements do not reflect this dividend payable.

31. Subsequent events

As referred to in Note 30, subsequent to the year end the Board of Directors announced the approval of a final dividend for 2015 of 1.97 US cents per share. Subject to shareholder approval at the annual general meeting on 11 May 2016, the final dividend will be paid on 27 May 2016 to shareholders on the register as of 22 April 2016.

There were no other significant events occurring after the reporting date requiring disclosure in the financial statements.

Glossary

AIF	Annual Information Form
AN	ammonium nitrate
ARE	Arab Republic of Egypt
Assay	qualitative analysis of ore to determine its components
Au	chemical symbol for the element gold
Board	the Board of Directors of the Group
CA	Concession Agreement
DBSP	Deferred Bonus Share Plan
Directors	the directors of the Board of Centamin plc
dump leach	a process used for the recovery of metal ore from typically weathered low‑grade ore. Blasted material is laid on a slightly sloping, impervious pad and uniformly leached by the percolation of the leach liquor trickling through the beds by gravity to ponds. The metals are recovered by conventional methods from the solution
EDLFSP	Executive Director Loan Funded Share Plan
ELFSP	Employee Loan Funded Share Plan
EMRA	Egyptian Mineral Resource Authority
EOS	Employee Option Scheme
ESOP	Employee Share Option Plan
EGPC	the Egyptian General Petroleum Corporation
EMRA	Egyptian Resource Mineral Authority
EU IFRS	International Financial Reporting Standards as adopted by the European Union
FA	fatality
feasibility study	extensive technical and financial study to assess the commercial viability of a project
flotation	mineral processing technique used to separate mineral particles in a slurry, by causing them to selectively adhere to a froth and float to the surface
FRC	Financial Reporting Council
grade	relative quantity or the percentage of ore mineral or metal content in an ore body
g/t	gram per metric tonne
indicated resource	as defined in the JORC Code, is that part of a mineral resource which has been sampled by drill holes, underground openings or other sampling procedures at locations that are too widely spaced to ensure continuity but close enough to give a reasonable indication of continuity and where geoscientific data is known with a reasonable degree of reliability. An indicated mineral resource will be based on more data and therefore will be more reliable than an inferred resource estimate
inferred resource	as defined in the JORC Code, is that part of a mineral resource for which the tonnage and grade and mineral content can be estimated with a low level of confidence. It is inferred from the geological evidence and has assumed but not verified geological and/or grade continuity. It is based on information gathered through the appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability
IFRS	International Financial Reporting Standards
IOD	Institute of Directors
JORC	Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and the Minerals Council of Australia
LFSP	Loan Funded Share Plan
LTI	lost time due to injury
LTIFR	lost time injury frequency rate
material tailings	material that remains after all metals/minerals considered economic have been removed from the ore
MD&A	Management's Discussion and Analysis of the Financial Condition and Results of Operations
Mill	equipment used to grind crushed rocks to the desired size for mineral extraction
Mineralization	process of formation and concentration of elements and their chemical compounds within a mass or body of rock
Moz	million ounces
Mt	million tonnes
MTIF	Medical treatment injury frequency
Mtpa	million tonnes per annum
net production surplus or profit share	revenue less payment of the 3% royalty to Arab Republic of Egypt ("ARE") and recoverable costs
open pit	large scale hard rock surface mine
ore	mineral deposit that can be extracted and marketed profitably
ore body	mining term to define a solid mass of mineralised rock that can be mined profitably under current or immediately foreseeable economic conditions
ore reserve	the economically mineable part of a Measured or Indicated mineral resource. It includes diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments, which may include feasibility studies, have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could be reasonably justified. Ore reserves are sub‑divided in order of increasing confidence into Probable and Proven
ounce or oz	troy ounce (= 31.1035 grams)
PGM	Pharaoh Gold Mines NL
Probable	measured and/or indicated mineral resources which are not yet proven, but where technical economic studies show that extraction is justifiable at the time of the determination and under specific economic conditions
Production	total attributable gold production, as stated throughout this document, is comprised of 100% of production from the Group's subsidiaries
Proven	measured mineral resources, where technical economic studies show that extraction is justifiable at the time of the determination and under specific economic conditions
Recovery	proportion of valuable material obtained in the processing of an ore, stated as a percentage
Resource	concentration or occurrence of material of intrinsic economic interest in or on the Earth's crust in such a form that there are reasonable prospects for eventual economic extraction. The location, quantity, grade geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral resources are subdivided into Inferred, Indicated and Measured categories
ROM	run of mine
SGM	Sukari Gold Mining Co.
Stockpile	an accumulation of ore or mineral formed to create a reserve for loading or when demand slackens or when the process plant is unequal to handling mine output
strip ratio	the unit amount of spoil or waste that must be removed to gain access to a similar unit of ore or mineral

Cautionary note regarding forward looking statements

This document contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of Centamin plc ('Centamin' or 'the Company'), its subsidiaries (together 'the Group'), affiliated companies, its projects, the future price of gold, the estimation of mineral reserves and mineral resources, the realization of mineral reserve and resource estimates, the timing and amount of estimated future production, revenues, margins, costs of production, estimates of initial capital, sustaining capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, foreign exchange risks, governmental regulation of mining operations and exploration operations, timing and receipt of approvals, consents and permits under applicable mineral legislation, environmental risks, title disputes or claims, limitations of insurance coverage and regulatory matters. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases, or may be identified by statements to the effect that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved.

Forward-looking statements involve known and unknown risks, uncertainties and a variety of material factors, many of which are beyond the Company's control which may cause the actual results, performance or achievements of Centamin, its subsidiaries and affiliated companies to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Readers are cautioned that forward-looking statements may not be appropriate for other purposes than outlined in this document. Such factors include, among others, future price of gold; general business, economic, competitive, political and social uncertainties; the actual results of current exploration and development activities; conclusions of economic evaluations and studies; fluctuations in the value of the U.S. dollar relative to the local currencies in the jurisdictions of the Company's key projects; changes in project parameters as plans continue to be refined; possible variations of ore grade or projected recovery rates; accidents, labour disputes or slow-downs and other risks of the mining industry; climatic conditions; political instability, insurrection or war, civil unrest or armed assault; labour force availability and turnover; delays in obtaining financing or governmental approvals or in the completion of exploration and development activities; as well as those factors referred to in the section entitled "Risks and Uncertainties" section of the Management discussion & analysis. The reader is also cautioned that the foregoing list of factors is not exhausted of the factors that may affect the Company's forward-looking statements.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this document and, except as required by applicable law, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Qualified person and quality control

Information of a scientific or technical nature in this document was prepared under the supervision of Andrew Pardey, BSc. Geology, Chief Operating Officer of Centamin plc and a qualified person under the Canadian National Instrument 43-101.

Refer to the technical report entitled "Mineral Resource and Reserve Estimate for the Sukari Gold Project, Egypt" dated 23 October 2015 and filed on SEDAR at www.sedar.com, for further discussion of the extent to which the estimate of mineral resources/reserves may be materially affected by any known environmental, permitting, legal, title, taxation, socio-political, or other relevant issues.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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