Payments to Government

RNS Number : 9367Q

Centamin PLC

25 February 2019

 

For immediate release

25 February 2019

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

(LSE:CEY, TSX:CEE)

Payments to Government

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

The Regulations require disclosure of the following:

a)   production entitlements;

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

c)   royalties;

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

e)   signature, discovery and production bonuses;

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

g)   payments for infrastructure improvements.

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

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

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

 

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

Type		Notes	Egypt	Burkina Faso	Côte d'Ivoire	Total
Profit share			76,390,698	-	-	76,390,698
Corporate taxes		(i)	1,161,773	-	-	1,161,773
Royalties			21,004,328	-	-	21,004,328
Exploration licence fees			-	67,919	21,566	89,485
Mining and other licence fees			150,358	827,099	-	977,457
		(ii)	98,707,157	895,018	21,566	99,623,741

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

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

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

								Licence or
Country/Project	Notes	Payee	Royalties		Profit share		Taxes	permit fees	Other		Total
Egypt:
Sukari Gold Mine		Egyptian Mineral Resources Authority	21,004,328		76,390,698		-	-	-		97,395,026
		Egyptian
		Tax Authority	-		-		1,161,773	-	-		1,161,773
		Other payees	-		-		-	150,358	-		150,358
Burkina Faso:
Konkera project	(iii)	Ministry
		of Mines	-		-		-	827,099	-		827,099
		Burkina Faso
		Tax Office	-		-		-	-	-		-
Burkina Faso:
Exploration projects		Ministry
		of Mines	-		-		-	67,919	-		67,919
		Burkina Faso
		Tax Office	-		-		-	-	-		-
Côte d'Ivoire:
Exploration projects	(iii)	Ministry
		of Mines	-		-		-	21,566	-		21,566
		Côte d'Ivoire
		Tax Office	-		-		-	-	-		-
			21,004,328		76,390,698		1,161,773	1,066,942	-		99,623,741

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

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

Centamin plc Andrew Pardey, Chief Executive Officer Alexandra Carse, Investor Relations [phone] [e-mail]

Buchanan Communications Bobby Morse Chris Judd + 44 (0) 20 7466 5000 [e-mail]

This announcement contains ongoing regulated information.

LEI: 213800PDI9G7OUKLPV84

Company No: 109180

 

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