Centamin plc (LON:CEY) has announced that the Board of Directors recommend the payment of a final dividend of 2 US cents per share, for the six months ended 31 December 2023.
DIVIDEND POLICY
Stakeholder, and specifically shareholder returns, are central to our Company strategy. Centamin was one of the first gold producers to pay a dividend under a structured policy. We have since built a ten-year track record of returning cash to shareholders, totalling US$881m (inclusive of the FY23 final dividend).
As a result of our continued commitment to shareholder returns, the dividend policy remains unchanged from our previous commitment to return a minimum of 30% of Group free cash flow before growth capital expenditure1 to shareholders in cash dividends. In addition to the minimum dividend, the balance sheet is assessed by the Board which will use its discretion to allocate the remaining available cash to growth projects and supplementary dividend payments.
2023 FINAL DIVIDEND
The Board proposes a final dividend of 2 US cents per share (US$23 million). The final dividend will be subject to shareholder approval at the Annual General Meeting on 21 May 2024, which will be hosted in Jersey.
Following the interim dividend of 2 US cents (US$23m) that was declared in July 2023 and paid in September 2023, the final dividend brings the total dividend attributed to full year 2023 to 4 US cents per share (US$46 million). This represents 55% of the cash available for dividend payments, exceeding the policy to pay out a minimum of 30% of Group free cash flow before growth capital expenditure. The Board applied its discretion to allocate US$21m to supplementary dividend payments given the continued strength of the balance sheet.
The final dividend is calculated by the following:
| 30-Jun-23 | 30-Dec-23 | 2023 | |
| US$’000 | Interim | Final | Total |
| Group free cash flow | 19,362 | 29,633 | 48,995 |
| Add back: | |||
| Growth capex financed from treasury[1] | 21,818 | 13,887 | 35,705 |
| Cash flow available for dividends | 41,180 | 43,520 | 84,700 |
| 30% minimum distribution as per dividend policy | (12,354) | (13,056) | (25,410) |
| Surplus cash flow for discretionary capital allocation[2] | 28,826 | 30,464 | 59,290 |
| Board dividend supplement | (10,814) | (10,113) | (20,927) |
| Total dividend declared | 23,168 | 23,169 | 46,337 |
| US Cents | 2.0 | 2.0 | 4.0 |
| % of cash flow available for dividend payments | 56% | 53% | 55% |
Centamin maintains a robust financial position, with cash and liquid assets of US$153 million as at 31 December 2023. The Company’s disciplined approach to capital allocation, provides the flexibility to allocate capital to shareholders returns, business investment and growth as well as environmental and social opportunities.
2023 FINAL DIVIDEND TIMETABLE[3]
Below is the final dividend timetable for the London Stock Exchange (LSE) and Toronto Stock Exchange (TSX):
| ● | AGM Date | 21 May 2024 |
| ● | Ex-Dividend Date: | 30 May 2024 (LSE only) |
| ● | Record Date: | 31 May 2024 (Record and Ex-Dividend Date for the TSX) |
| ● | Last Date for Currency Elections: | 3 June 2024 |
| ● | Payment Date: | 19 June 2024 |
Dividend Currency Elections
The dividend will be paid on 19 June 2024, in US Dollars (USD) with an option for shareholders to elect to receive the dividend in Pounds Sterling (GBP). Currency elections should be made no later than 3 June 2024 as per the instructions detailed on the Company website (www.centamin.com). Payments in GBP will be based on the USD/GBP exchange rate on 4 June 2024 and the rate applied will be published on the website thereafter.
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.
[1] Defined as Sukari growth capex funded from Treasury and available for cost-recovery as per the Concession Agreement
[2] Discretionary capital allocation options include future project investment, portfolio optimisation, supplemental shareholder returns
[3] 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 a regulatory news announcement and will be available at www.centamin.com
