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Centamin PLC (CEY)

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Monday 22 March, 2021

Centamin PLC

Payments to Government

RNS Number : 9442S
Centamin PLC
22 March 2021
 

 

22 March 2021

 

 

Centamin plc

("Centamin" or "the Company")

(LSE:CEY, TSX:CEE)

 

 

 

PAYMENTS TO GOVERNMENT

for the twelve months ended 31 December 2020

 

 

Centamin mining operations, including exploration projects, generate economic benefit for the countries and communities where we operate through payments to government, employee and contractor wages, payments to suppliers and contractors, vocational training, community investment and academic investment. We care deeply about the communities and environments with which we operate. Fundamental to creating lasting stakeholder relationships is good governance, including reliable, transparent disclosure. 

In accordance with the Payments to Governments Regulations of 2014 (the "Regulations"), this report provides an overview of the Centamin's payments to governments. Whilst the Regulations are a part of UK law, and the Company is governed by Jersey law, they are applicable by virtue of the Company's 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 MADE to governments made

during the year ended 31 December 2020 in US dollars ("USD")

 

Type

Note

Egypt

Burkina Faso

Côte d'Ivoire

Total

Profit share

 

 174,275,000

-

-

 174,275,000

Corporate taxes

(i)

 2,292,358

-

-

 2,292,358

Royalties

 

 23,830,382

-

-

 23,830,382

Exploration licence fees

 

-

20,823

49,161

 69,984

Mining and other licence fees

 

 320,850

1,130,364

-

 1,451,214

Infrastructure improvements

(ii)

 990,877

91,230

885,167

 1,967,274

 

 

 

201,709,467

1,242,417

934,328

203,886,211

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

(ii)  Community projects in Egypt including financial assistance to the Egyptian Health Department to respond to the COVID-19 pandemic, donations to the Marsa Alam hospital including laboratory equipment for COVID testing, assistance to struggling families in Marsa Alam, contributions towards Eid celebrations in Marsa Alam, donations to the Marsa Alam Youth Association and refurbishment of a community square in Marsa Alam.

Community projects in Cote d'Ivoire including supplying protection PPE to respond to the COVID-19 pandemic and providing seeds and fetilizers for farmers. Payments also included crop compensation for lost or damaged crops due to exploration activities.

Community projects in Burkina Faso including drilling of boreholes for villages, installation of solar panels, repairs to a roof and provision of solar lamps at a local high school, building toilets for local communities and construction of a community centre to support local women development groups.

 

Payments split by payee

during the year ended 31 December 2020 in US DOLLARS ("USD")

 

Country / Project

NotE

Payee

Royalties

Profit share

Taxes

License or permit fees

Other

Total

Egypt:

(iii)

 

 

 

 

 

 

 

Sukari Gold Mine

 

Arab Republic of Egypt

 -

 -

 -

 -

 650,000

 650,000

 

 

Egyptian Mineral Resources Authority

 23,830,382

 174,275,000

 -

 -

 -

 198,105,382

 

Egyptian Tax Authority

 -

 -

2,292,358

 -

 -

 2,292,358

 

Other payees

 -

 -

 -

 320,850

 340,877

 661,727

Burkina Faso:

 

 

 

 

 

 

 

 

Konkera Project

(iv)

Ministry of Mines

 -

 -

 -

 1,130,364

 -

 1,130,364

 

Burkina Faso Tax Office

 -

 -

 -

 -

 -

 -

Burkina Faso:

 

 

 

 

 

 

 

 

Exploration projects

 

Ministry of Mines

 -

 -

 -

 20,823

 -

 20,823

 

Burkina Faso Tax Office

 -

 -

 -

 -

 -

 -

 

Other payees

 -

 -

 -

 -

 91,230

 91,230

Côte d'Ivoire:

 

 

 

 

 

 

 

 

Exploration projects

(iv)

Ministry of Mines

 -

 -

 -

 49,161

 -

 49,161

 

Côte d'Ivoire Tax Office

 -

 -

 -

 -

 -

 -

 

Other payees

 -

 -

 -

 -

 885,167

 885,167



23,830,382

 174,275,000

2,292,358

 1,521,197

1,967,274

203,886,211

(iii)  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.

(iv)  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.

 

This announcement contains ongoing regulated information.

 

FOR MORE INFORMATION:   please visit the website www.centamin.com or contact:

Centamin plc

Alexandra Barter-Carse, Corporate Communications

+44 (0) 7700 713 738

[email protected]

Buchanan

Bobby Morse / Kelsey Traynor

+ 44 (0) 20 7466 5000

[email protected]

________________________________________________________________________________________________

Forward-looking Statements

This announcement (including information incorporated by reference) contains "forward-looking statements" and "forward-looking information" under applicable securities laws (collectively, "forward-looking statements"), including statements with respect to future financial or operating performance. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "believes", "expects", "expected", "budgeted", "forecasts" and "anticipates". Although Centamin believes that the expectations reflected in such forward-looking statements are reasonable, Centamin can give no assurance that such expectations will prove to be correct. Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of Centamin about future events and are therefore subject to known and unknown risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. In addition, there are a number of factors that could cause actual results, performance, achievements or developments to differ materially from those expressed or implied by such forward-looking statements; general business, economic, competitive, political and social uncertainties; the results of exploration activities and feasibility studies; assumptions in economic evaluations which prove to be inaccurate; currency fluctuations; changes in project parameters; future prices of gold and other metals; possible variations of ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; climatic conditions; political instability; decisions and regulatory changes enacted by governmental authorities; delays in obtaining approvals or financing or completing development or construction activities; and discovery of archaeological ruins. 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 information or statements. Forward-looking statements contained herein are made as of the date of this announcement and the Company disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Accordingly, readers should not place undue reliance on forward-looking statements.

LEI: 213800PDI9G7OUKLPV84

Company No: 109180

 

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