Centamin PLC CEY Results for the Quarter Ended 30 September 2012

  Centamin PLC (CEY) - Results for the Quarter Ended 30 September 2012

RNS Number : 0518R
Centamin PLC
14 November 2012




                 Centamin plc ("Centamin" or "the Company")
                             (LSE: CEY, TSX: CEE)

For immediate release 14 November 2012



    Results for the Third Quarter and Nine Months Ended 30 September 2012

Centamin plc ("Centamin" or "the Company") (LSE: CEY, TSX: CEE) is pleased  to 
announce its results for the third quarter ended30 September 2012.

This is not the full version of the release. To view the full document  please 
click here:

http://www.rns-pdf.londonstockexchange.com/rns/0518R_-2012-11-13.pdf

HIGHLIGHTS^1,2,3,4

· Record quarterly earnings, with basic earnings per share 5.53 cents, up
43% quarter-on-quarter and 22% on the prior year period.



· Record quarterly  EBITDA $67.1 million,  up 22% quarter-on-quarter  and 
25% on the prior year period.



· Gold production 60,922 ounces,  down 10% quarter-on-quarter but up  20% 
on the prior year period.



· Cash costs US$539 per ounce  at subsidised fuel prices; $724 per  ounce 
including fuel prepayments.



· Stage 4 plant expansion  (to 10Mtpa) commissioning activities to  begin 
in Q1 2013, with the bulk of commissioning to start in Q2 2013. Budgeted  2013 
total ore processed remains  unchanged at 6.1  million tonnes. Expenditure  to 
date is US$176.9million of the total $287.6m ex-contingency forecast.



· Centamin remains debt-free  and un-hedged with  cash, bullion on  hand, 
gold sales receivable and liquid assets of US$181.7 million as at 30 September
2012.



· 2012 production guidance of 250,000 ounces maintained, with cash  costs 
of US$550 per ounce atsubsidisedfuel prices; or US$700 per ounce inclusive  of 
fuel prepayments.



· Drilling continued at the V-Shear porphyry with results to date in  the 
0.3-0.6 g/t range. A gravity survey has commenced to help define the limits of
the porphyry and to test the surrounding areas.



· Initial  results  in  Ethiopia  confirm  the  existence  of  low  grade 
mineralisation, with drilling on-going.



· Engagement with government on fuel subsidy ongoing.



· Centamin and the Egyptian  Mineral Resources Authority (EMRA)  continue 
to work closely to appeal  the October 30^thAdministrative Court ruling  which 
determined the conversion of the Sukari 160km^2 "exploitation lease"  invalid. 
Operations are continuing as normal.



                                     Q3 2012 Q2 2012 Q3 2011
                                                     

Total Gold Production (oz)           60,922  67,422  50,539
                                                     

Cash Cost of Production¹^,4 (US$/oz)   539     565     562
                                                     

Average Sales Price (US$)             1,679   1,610   1,721
                                                     

Revenue (US$M)                        103.1   96.8    89.1
                                                     

EBITDA²^,³^,4 (US$M)                  67.1    54.9    53.6
                                                     

Basic EPS4 (cents)                    5.53    3.87    4.52



^1Results and highlights for the first quarter ended 31 March 2012 and second
quarter ended 30 June 2012are available at www.centamin.com.
^2Cash cost of Production, EBITDA and cash, bullion on hand and liquid assets
are non-GAAP measures defined on pages17 - 18 of this news
release.
^3EBITDA reported is on the basis of subsidised fuel costs.
^4Historic Cash cost of production,EBITDA and EPS now reflect adoption of
IFRIC 20.



Josef El-Raghy, Chairman  of Centamin, said:  "The team at  Sukari once  again 
delivered a strong set  of operating results  which are particularly  pleasing 
given the several cumulative issues that  were faced and addressed during  the 
quarter. Open pit  tonnages continued to  increase according to  plan and  the 
operation as  a whole  entered the  fourth  quarter well  placed to  meet  our 
unchanged full year production guidance of 250,000 ounces."



Centamin will  host a  conference call  on Wednesday,  14 November  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 three numbers,
approximately 10 minutes before the start of the call.



From UK: (toll free) 0800 368 1895

From Canada: (toll free) + 1866 561 8617

From rest of world: +44 203 140 0693

Participant pass code: 677677#



A live audio webcast of the call will be available on:

http://mediaserve.buchanan.uk.com/2012/centamin141112/registration.asp



A group analyst briefing will be held simultaneously at 9.00am at the  offices 
of Buchanan, 107 Cheapside, London, EC2V 6DN



A second  call  (Q&A  only) will  be  held  for North  American  analysts  and 
investors at 2.00pm (London, UK time) / 9.00am EST. Participants may join  the 
call by dialling one of the following three numbers, approximately 10  minutes 
before the start of the call.



From Canada: (toll free) +1866 561 8617

From US: (toll free) +1866 928 6049

From rest of world: +44 203 140 0693 

Participant pass code: 858703#



For more information please contact:



Centamin plc                                                  

Josef El-Raghy, Chairman                                      

Andy Davidson,  Head  of Business  Development  and  Investor +44 20 7569 1671
Relations
                                                             

Buchanan                                                      

Bobby Morse                                                   +44 20 7466 5000

Cornelia Browne

Gabriella Clinkard



About Centamin plc

Centamin is a mining company that  has been actively exploring in Egypt  since 
1995. The principal asset of Centamin is its interest in the large scale,  low 
cost Sukari  Gold Mine,  located in  the  Eastern Desert  of Egypt.  2010  was 
Sukari's maiden year of production, with 150,000 ounces of gold produced.  In 
2011, production expanded to over 200,000 ounces, with production forecast  to 
increase further in the following years.

The Sukari Gold Mine is the  first and currently only large-scale modern  gold 
mine in Egypt. Centamin's operating experience in Egypt gives it a significant
first-mover advantage in acquiring and  developing other gold projects in  the 
prospective Arabian-Nubian Shield.

In 2011  the Group  acquired Sheba  Exploration(UK) Plc("Sheba")  and now  has 
interests in four mineral licences in Ethiopia where it is conducting  further 
exploration activities.





CHAIRMAN'S STATEMENT



The third quarter saw Centamin deliver our strongest set of financial  results 
to date with record EBITDA  of US$67.1 million, up  22% on the second  quarter 
and a 25%  increase on the  corresponding quarter in  2011. This was  achieved 
despite a number of  minor but cumulative challenges  to production at  Sukari 
which have all now been resolved. Mining and processing operations continue to
perform in line  with budget and  we expect  to meet our  unchanged full  year 
guidance of 250,000 ounces at US$550  per ounce at subsidised fuel prices  and 
US$700 per ounceinclusive of fuel repayments.



Construction of the Stage 4 expansion was a little slower than expected during
the quarter with  the consequence that,  whilst some commissioning  activities 
will begin in Q1, we now anticipate  the bulk of commissioning to commence  in 
Q2 2013. All key long lead time items have been delivered or are scheduled for
delivery and as such we continue to expect the full 10 million tonne per annum
rate to be achieved in the later part of 2013. Our longer-term growth projects
showed good  progress, with  encouraging signs  of a  potentially  significant 
mineralised porphyry from  drilling of  the V-Shear prospect  at Sukari,  plus 
some early  indications  of  mineralisation from  drilling  at  our  Ethiopian 
projects.



Centamin is committed  to its  policy of  being 100%  un-hedged and  therefore 
fully exposed to the  high gold price environment.  Our balance sheet  remains 
strong, with cash, bullion  on hand and liquid  assets of US$181.7 million  at 
the end of September and with capex for Stage 4 fully financed by Pharaoh Gold
Mines  ("PGM"),  Centamin's  100%  owned  subsidiary,  from  cost   recoveries 
generated from operating cash flow.



The Sukari project has  seen Centamin invest over  US$700 million in Egypt  to 
date and we remain committed to our significant expansion program.  Management 
and the Board  of Directors take  very seriously any  threat to the  Company's 
operating title,  its investment,  the  livelihood of  its employees  and  the 
interests of its  other stakeholders.  We will  therefore spare  no effort  to 
defend our position which at all times  has been in accordance with the  terms 
of the Concession Agreement (law 222 of 1994), Egyptian law and  international 
best practice for both mining and  foreign direct investment. We look  forward 
to presenting our case against  the October 30th administrative court  ruling, 
which we believe will give us very strong grounds for a successful appeal. The
appeal is expected to be  lodged in the next week  or so. We will continue  to 
keep the market informed of progress and, in the meantime, continue to operate
at Sukari and to deliver on the  Stage 4 expansion project which is  projected 
to be funded out of cost recoveries.



OPERATIONAL REVIEW



Production



Sukari Gold Mine production summary:

                                                          9 months  9 months
                                                           ended 30  ended 30
                                  Q3 2012 Q2 2012 Q3 2011 September September
                                                             2012      2011

Ore Mined - Open Pit     ('000t)    1,653   1,816   2,129    4,472     4,380
Ore Grade Mined - Open  (Au g/t)    1.00    1.07    0.96     0.99       NR
Pit
Ore Grade Milled -      (Au g/t)    1.34    1.19     NR      1.21       NR
Open Pit
Total Open Pit           ('000t)    6,970   6,579   5,847   18,368    13,429
Material Mined
Strip Ratio            (waste/ore)   3.2     2.6     1.8     3.1       2.1
Ore Mined -
Underground              ('000t)     40      53      47       150       127
Development
Ore Mined -              ('000t)     53      63      11       141       15
Underground Stopes
Ore Grade Mined -       (Au g/t)    9.01    8.68    10.4     8.65       NR
Underground
Ore Processed            ('000t)    1,004   1,269    954     3,293     2,545
Head Grade                (g/t)     2.10    1.99    1.82     1.93      1.88
Gold Recovery              (%)      86.7    84.3    85.5     85.3      85.9
Gold Produced - Dump      (oz)      1,617   1,318   2,921    4,838     8,362
Leach
Gold Produced - Total     (oz)     60,922  67,422  50,539   177,415   143,734
Cash Cost of            (US$/oz)     539     565     562      568       532
Production
Open Pit Mining         (US$/oz)     180     194     NR       NR        NR
Underground Mining      (US$/oz)     35      50      NR       NR        NR
Processing              (US$/oz)     257     263     NR       NR        NR
G&A                     (US$/oz)     67      58      NR       NR        NR
Gold Sold                 (oz)     60,794  60,673  51,570   174,168   165,072
Average Realized Sales  (US$/oz)    1,679   1,610   1,721    1,644     1,546
Price







Notes:- (1) Ore mined includes 11kt @ 0.48g/t delivered to the dump leach in
Q3 2012 (104kt @ 0.50g/t in Q2 2012;264kt @ 0.42g/t in Q1 2012;

 977kt @ 0.55g/t in Q3 2011; 224kt @ 0.5g/t in Q2 2011 and  435kt 
@ 0.6g/t in Q1 2011).

(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.

(4) Realised  Sales Price  reflects  actual sales  price realised  during  the 
period i.e. excludes Gold receivable.

(5) Historic Cash cost of production now reflect adoption of IFRIC 20.

NR - Not Reported.



Centamin produced60,922 ounces of gold in Q3 2012, which is a 10% decrease  on 
Q2 2012 but a20% increase on Q3 2011.



The lower quarter-on-quarter production was a result of: (a)a 28% decrease  in 
tonnes milled (to circa 1Mt) versus Q2,  due to the impact of a scheduled  SAG 
mill reline  in September  and  the illegal  strike in  July,  and (b)  a  16% 
reduction inproduction from  the underground  high grade stopes  due to  lower 
than  planned   underground   mining   contractor   equipment   availability. 
Thenegative impact was partly reduced by feeding ore with a 6% higher grade to
the mills (2.10g/t in Q3  compared to 1.99g/t in  Q2) as underground and  open 
pit head grades increased.



Sukari's production  profile for  the year  will see  a larger  proportion  of 
ounces delivered in  Q4 due to  a higher  mill throughput, in  line with  that 
achieved in Q2,  and an increasing  overall headgrade. As  such our full  year 
production guidance of 250,000 ounces remains intact.



Open Pit



The open pit delivered  total material movement of  7.0Mt for the quarter,  an 
increase of 6%  on Q2 2012  and 19% on  the prior year  period, as  additional 
mining faces opened up with improved equipment productivity and utilization.



Ore production from the open pit was 1.7Mt at 1.0g/t withan average head grade
to the plant of 1.34g/t.  The ROM ore stockpile  balance increased by 82kt  to 
579kt by the end of the quarter.



Mining continued to  focus on Stage  2A and Stage  2B down to  the 1040RL  and 
1028RL  respectively.  In  Stage  3  development  work  continued  with  minor 
production commencing in preparation for large scale load and haul activities.



Underground Mine



Ore  production   from  the   underground  mine   was  93kt.   The  ratio   of 
stoping-to-development  ore  mined  decreased   this  quarter,  with  43%   of 
development ore (40kt) and 57% of stoping ore (53kt). Production from  stoping 
continues to ramp up whilst a significant focus on longer term development  is 
also maintained to ensure mine sustainability.



In spite  of poor  equipment availability,  restricting mining  of the  higher 
grade stopes with the remote 'boggers'  (load haul dump machinery, or  LHD's), 
grades continued to be reasonably high, with a head grade of 9.01g/t from  the 
underground mine in  Q3. The grade  was below the  annual production  guidance 
range of  10-12g/t as  the majority  of  the stope  material for  the  quarter 
continued to be  mined from the  lower grade stockwork  stopes, combined  with 
lower grade  development drives  being mined  to access  diamond drill  sites. 
However, during the last part of the quarter, higher grade material was  again 
able to  be  mined  and  access  drives  to  further  stopes  were  completed. 
Development of  access  to the  higher  grade areas  continues.  Higher  grade 
material in  the 10-12g/t  range  is scheduled  for  mining in  the  remaining 
quarter.



A further  431.3 metres  of development  took place  between the  878 and  830 
levels to access additional stoping blocks that will be mined during 2012  and 
2013. A total of 1,859.6 metres  of diamond drilling was completed during  the 
quarter for both short-term stope definition, open pit resource modelling  and 
underground resource development whilst a  further494.5 metres of drilling  to 
test the depth extensions below the current Amun zone and into the Horus  zone 
was completed.



Development of the  Ptah Decline,  which will move  towards the  north of  the 
Sukari deposit and  provide access  to the high  grade Julius  zone, began  in 
October 2011  and had  advanced 313.0  metres  by the  quarter end.  The  Ptah 
Decline, which  will  access  at  least  two  production  centres,  will  take 
underground activity away  from the pit  shell over the  next two years.  This 
decline will therefore  allow Centamin  to maintain  two separate  underground 
production sources once the Amun Decline becomes part of the open pit.



The anticipated capital cost of the Ptah Decline is US$18 million, which  will 
see the decline reach the first ore blocks to be developed below the middle of
SukariHill. It is expected that this initial development work will be complete
in early 2013.



Processing



The quarterly throughput in the Sukari processing plant was 1,004kt, 5% higher
than the corresponding quarter in  2011 and 21% lower than  Q2 due to the  SAG 
mill reline and also illegal strike action in July.



Productivity of the  processing plant was  624 tonnes per  hour (tph) for  the 
quarter, down 4% on 652 tph in Q2 due to the impact of the scheduled SAG  mill 
reline in September and the strike in July.



Plant metallurgical recoveries  were 86.7%, which  is a 2.4%  increase on  Q2. 
Recoveries are expected to remain consistent until the new carbon regeneration
kiln is commissioned in early 2013.



The dump leach operation produced 1,617oz in  Q3, a 23% increase on Q2.  11kt 
of low grade oxide ore at 0.48g/t was delivered to the pads in preparation for
irrigation, bringing the total ore placed  on the dump leach to  approximately 
6.0Mt at  0.50g/t.  Dump leach  volumes  pumped back  to  the CIL  Plant  were 
deliberately reduced to minimise issues associated with the carbon fouling and
carbon regeneration  and the  impact  on recoveries.  Volumes will  return  to 
planned levels once the new carbon regeneration kiln is commissioned in  early 
2013.



Fuel Costs



In light of the  on-going discussions with  the Egyptian Government  regarding 
the Company's entitlement to the national subsidy for diesel, it was necessary
during Q3 to continue to advance funds to our fuel supplier, Chevron, based on
the international price for diesel.  However, in line with previous  practice, 
Management have treated these fund advances as prepayments which at this stage
are not expensed, to  the extent that  they represent a  premium to the  price 
payable for subsidised diesel. Should these prepayments be expensed, the cash
costs for Q1 would increase by US$108  to US$717 per ounce, Q2 would  increase 
by US$164 per ounce  to US$729 per  ounce and Q3  would increase by  US$185to 
US$724 per ounce. The total amount of the prepayment at the end of the quarter
was US$27.7 million.



As noted in  the quarterly  report for  the quarter  ended 30  June 2012,  the 
Company  has,  with  the  support  of  the  EMRA,  commenced  judicial  review 
proceedings in Egypt in  relation to this matter.  The Company remains of  the 
view that an  instant move to  international fuel prices  is not a  reasonable 
outcome and will look  to recover any  funds advanced thus  far at the  higher 
rate should either the negotiations  or the court proceedings be  successfully 
concluded.



STAGE 4 EXPANSION



Construction continueson Stage  4 of  the process plant  expansion which  will 
expand Sukari capacity from 5Mtpa to 10Mtpa.  The capital cost of the Stage  4 
expansion which  is funded  by  PGM out  of  cost recoveries,  remains  within 
budgeted  expectations  of  US$287.6  million  (excluding  contingency),  with 
expenditure to date of US$176.9 million.



During the period  some delays in  the Stage 4  construction process  occurred 
with the consequence that, whilst some commissioning activities will begin  in 
Q1, we  now anticipate  the bulk  of  commissioning to  commence in  Q2  2013. 
Despite this  short delay,  there is  no change  to the  expected 6.1  million 
tonnes of ore  processed in 2013,  nor any  other of the  other parameters  as 
outlined in the May  2012 optimised mine plan.  This plan and forecast,  which 
requires the completion of Stage 4 commissioning by Q4 2013, was  sufficiently 
conservative to accommodate delays of this nature.



Main Plant



Detailed engineering is 96% complete and the final issue, evaluation and award
of equipment packages is  on-going. SAG and Ball  Mill shells were  delivered 
during the  quarter  and all  major  civil works  in  the grinding  area  were 
completed. Various construction fronts are  open within the main plant  area 
and no long lead time items represent a risk to schedule at this stage.



Power Station



The engineering design and procurement  are 100% complete. Civil,  structural 
and mechanical works  continue around  power house,  fuel treatment,  workshop 
buildings and day tank  area. Electrical work on  cable tray installation  and 
earthing are on-going.



Sea Water Pipeline



Orders have been placed  for motorized valves, flanges  and above ground  pipe 
work. The  installation contract  tender has  been completed  and awarded  to 
Egyptian Maintenance Co.  (EMC) with  civil works on  the pipeline  commencing 
during the quarter. Engineering for the Petroleum & Process Industries (ENPPI)
are finalising the electrical equipment supply.



Tailings Storage Facility



The construction  process for  the Tailings  Storage Facility  ("TSF") is  90% 
complete.Construction  by  earthworks  contractor  together  with  mining   is 
on-going.



Capital Expenditure



A breakdown of the major cost areas to date is as follows:



· Mining Equipment US$32.0 million

· Processing Plant US$90.1 million

· Power Plant US$35.4 million

·   Other    US$19.4 
million

US$176.9 million



Major contributors to the payments made in Q3 were as follows:



· Mining Equipment US$12.5 million

· Processing Plant US$17.2 million

· Power Plant US$2.3 million

·    Other    US$6.2 
million

US$38.2 million

EXPLORATION UPDATE



Sukari Hill



Centamin's resources at Sukari  are 13.13Moz Measured  & Indicated and  2.3Moz 
Inferred, which  include  reserves of  10.1Moz.  Drilling continued  from  the 
underground development drives  and the  drilling programme will  build up  to 
four underground based exploration/resource drill rigs throughout 2012.



We aim to continue adding ounces to Sukari's already significant resource base
and plan to provide an updated resource and reserve statement during the first
half of 2013.



Regional Exploration



Drilling continued in the V-Shear and Kurdeman prospects. Drilling at  V-Shear 
continued to test  the extent  of the porphyry  as this  represents the  first 
significant zones of porphyry  encountered away from  the Sukari Hill.  Assays 
received to date have generally been in the lowgrade range between 0.3 and 0.6
g/t and  work  is  underway to  determine  the  extents and  controls  on  the 
mineralisation of this porphyry. A gravity survey is planned in Q4  (commenced 
in early  November) over  this area  to  help in  defining this  porphyry  and 
surrounding areas.



Growth Beyond Sukari



The third  pillar of  Centamin's  growth strategy  is growth  beyond  Sukari. 
Centamin has  interests in  4 exploration  licences in  northern Ethiopia  and 
drilling at  the  first  property,  UnaDeriam, began  in  Q1.  Ethiopia  is  a 
geologically prospective terrain that is historically underexplored. There  is 
an emerging  gold  mining  industry  and  significant  artisanal  gold  mining 
activities. Through  a well-funded  and focused  exploration effort,  Centamin 
hopes to  replicate its  success in  Egypt in  exploring and  developing  gold 
assets.



DuringQ3 the Company continued diamond drilling at UnaDeriam and samples have
been dispatched to assay  laboratories in South Africa.  Previous work on  the 
tenement had outlined  an 8km long  gold in soil  anomaly. Several  historical 
open hole  percussion  drill  holes confirmed  the  existence  of  significant 
sub-surface gold mineralisation with +20 metre intersections.



The turnaround time in assays from South Africa has been slower than  expected 
and alternatives are being put in place to improve this.



Centamin intends to  continue to  grow and  diversify its  asset base  through 
targeted acquisitions of exploration and  development prospects in the  region 
and beyond.

FINANCIAL REVIEW



Centamin has a strong and flexible financial position with no debt, no hedging
and cash, bullion and liquid assets of US$181.7 million at 30 September  2012, 
down marginally from US$183m at  the end of June  2012. Cash, bullion on  hand 
and liquid assets is a non-GAAP financial measure and includes cash,  bullion, 
gold sales receivable and liquid assets.



· Cash at Bank  US$124.6 million

· Gold Sales Receivable  US$26.9 million

· Liquid assets - listed equities US$7.9 million

· Bullion on hand US$22.3 million



Bullion on hand was higher than  expected due to some minor logistical  delays 
in shipping gold at the  end of the period.  These issues were resolved,  with 
the gold having been shipped shortly after  the period end and to be  realised 
as revenue in Q4.



Sukari generated  revenue of  US$103.1  million in  the  third quarter,  a  7% 
increase on the  previous quarter.  Revenue reported  comprises proceeds  from 
gold and silver sales.



Centamin's unit cash costs (including fuel subsidy) were US$539 per ounce, $26
per ounce lower than in Q2. This  reduction is primarily a result of  improved 
productivities in both the mine and  the mill areas, more than offsetting  the 
lower production. Including fuel prepayments (excluding the fuel subsidy), the
Q2 unit cash costs  were US$724/oz, $5  lower than in  Q2 reflecting a  higher 
quarter-on-quarter international fuel price.



Operating cash costs  reduced quarter-on-quarter  by US$5.3m or  14% to  $32.8 
million. Processing costs were  2% lower versus  Q2 due to  a 13% decrease  in 
plant utilisation. Mining costs were down significantly by 16% versus Q2 as  a 
result of better utilisation of  equipment, lower maintenance charges as  well 
as the need for less drilling and blasting during the period.



The Company reported EBITDA of $67.1 million, a 25% increase on Q3 2011 and  a 
22% increase on the previous quarter. The key drivers were:

(a) a moderate increase in revenue, as described above

(b) a decrease in the cash cost of production, as described above

(c) a $1.8 million increasein inventory movement

(d) a 34% decrease in corporate costs to $1.3 million, and

(e) a foreign exchange gain of $2.0 million.



Basic Earnings per Share for the quarter  was 5.53 cents,a 22% increase on  Q3 
2011 and a 43% increase on the previous quarter. The increase is mainly due to
the effects noted  above and offset  by a 45%  quarter-on-quarter increase  in 
depreciation and amortisation to $7.5 million, a result of an increase in  the 
underlying capitalised preproduction costs and mine development properties.



CORPORATE UPDATE



Chief Executive Officer Appointment Process



The Board continues on  an on-going basis to  assess the options for  ensuring 
that the  Company  has  the  right  leadership  to  best  further  its  future 
development and  at  present  the  Board believes  that  there  is  no  urgent 
requirement to fill the CEO position.  In arriving at this decision the  Board 
has taken into  account the degree  and breadth of  experience brought to  the 
senior management  team  by  Chief Operating  Officer,  Andrew  Pardey,  Chief 
Financial Officer, Pierre Louw and  Head of Business Development and  Investor 
Relations, Andy Davidson,  as well  as the  requirements of  the UK  Corporate 
Governance Code. In relation to the Code, the Board believes the interests  of 
shareholders are best served by the  current arrangement and that the  Company 
is not at risk from an undue concentration of decision-making authority by the
temporary combination of the  Chairman and Chief  Executive Officer roles.  In 
reaching this conclusion, the  Board has taken  into consideration the  strong 
presence of  highly experienced  independent  non-executive directors  on  the 
Board and the structure of the Board Committees designed to devolve away  from 
the Chairman the  responsibility and  control of  certain key  areas of  Board 
responsibility.





Egyptian Court Litigation (post-period end)



A ruling was made  on 30th October  by the administrative  court in Egypt,  in 
relation to a claim brought by Hamdy El Fakharany, an independent member  with 
the previous parliament. The ruling makes it clear that it rejects any request
to terminate or treat as invalid the Concession Agreement entered into between
the Arab Republic of Egypt, the Egyptian Mineral Resources Authority  ("EMRA") 
and Centamin's  wholly owned  subsidiary  PGM, and  approved by  the  People's 
Assembly as law 222 of 1994. The judgement further makes it clear that PGM had
made the necessary notifications to be entitled to be granted an "exploitation
lease" in accordance  with the  Concession Agreement.  However, the  judgement 
states that, although agreement was reached between PGM and EMRA with  respect 
to the  grant  of  the  160km^2 "exploitation  lease"  at  Sukari,  sufficient 
evidence was not submitted to Court in order to demonstrate that, as  required 
by the terms  of the  Concession Agreement,  the requisite  approval from  the 
relevant Minister had been  obtained, and thus the  Court determined that  the 
process of  the conversion  to an  exploitation lease  was therefore  invalid. 
Centamin,  however,  is   in  possession  of   the  executed  original   lease 
documentation which clearly shows such approval from the Minister of Petroleum
and Mineral Resources.  It appears that  this document was  not listed in  the 
documents supplied to the  Court. As such the  Company is confident that  this 
matter can be resolved during the appeal process.



Pending the appeal hearing, the  notice of "objection to enforcement",  lodged 
on 31st October has the effect of "staying" (postponing) the implementation of
any judicial  decision for  a period  until  any hearing  on such  notice.  As 
notified  to  the  market  on  31st  October,  the  appeal  process  would  be 
accompanied by a further request for  the decision to be "stayed" pending  the 
outcome of a final  court hearing. Centamin  therefore remains confident  that 
normal operations  at Sukari  will be  maintained whilst  our appeal  case  is 
heard.



The Company continues to work in close co-operation with EMRA and both parties
are currently in the  process of initiating the  necessary vigorous action  to 
appeal this decision. The formal appeal is expected to be lodged shortly.



Cost recovery and profit share



Based on current gold prices, production forecasts and operating expenses,  it 
is expected that there will be a net production surplus (revenue in excess  of 
production royalty and cost recoveries) available for sharing betweenEMRA  and 
PGM for the Egyptian financial  year ending 30 June  2013. The amount of  this 
will clearly  be dependent  in large  part on  the success  of the  operations 
during this period.



OUTLOOK



Centamin remains  focused  on  advancing  all  three  pillars  of  our  growth 
strategy. At  Sukari,  we  are  committed to  delivering  on  our  full  year 
production guidance  of 250,000  ounces,  a 25%  increase in  production  from 
2011. The  full  year cash  cost  forecast remains  at  US$550 per  ounce  at 
subsidised fuel prices and, inclusive  of fuel pre-payments, at  approximately 
US$700 per ounce. Even  after fuel advance  prepayments, PGM (Centamin's  100% 
owned subsidiary) is still  projected to be able  to fund Sukari's 2012  capex 
from cash  flow received  from cost  recoveries and  the operation  remains  a 
relatively low cost one. We are  on track to further consolidate our  position 
asa significant mid-tier gold producer,with  the commissioning of the Stage  4 
expansion during  2013 and  the on-going  ramp-up towards  450-500,000  ounces 
production per annum from 2015.  Our regional exploration efforts within  the 
160km^2 Sukari tenement continue to  look promising and with the  commencement 
of drilling at  UnaDeriam in  Ethiopia our diversification  within the  highly 
prospective and under-explored Arabian Nubian Shield is underway.







Josef El-Raghy

Chairman

14 November 2012

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  14 March 2012  and filed on  SEDAR 
atwww.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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