Full year results for the twelve months ended 31 December 2021
PERTH, AUSTRALIA / ACCESSWIRE / March 16, 2022 / Centamin plc ("Centamin" or "the Company") (LSE:CEY) (TSX:CEE) Centamin's 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 2021 in US dollars ("USD")
TYPE
NOTE
EGYPT
BURKINA FASO
CÔTE D'IVOIRE
TOTAL
Profit share
75,200,000
-
-
75,200,000
Corporate taxes
(i)
3,764,505
-
-
3,764,505
Royalties
22,297,965
-
-
22,297,965
Exploration licence fees
-
91,564
91,896
183,460
Mining and other licence fees
328,976
1,108,539
-
1,437,515
Community investment and donations
(ii)
159,165
29,394
143,110
331,668
101,750,611
1,229,497
392,343
103,215,114
(i) In accordance with the Regulations, this figure excludes taxes levied on consumption such as VAT, payroll, or sales taxes. (ii) Community investment in Egypt: provision of medical equipment to the local hospital; refurbishment of the rehabilitation centre for persons with specials needs; upgrade to facilities at the local youth centre; donations to vulnerable families affected by COVID-19.
Community investment in Cote d'Ivoire: provision of fertiliser and seed for wet season agriculture; capacity building in micro-finance; and installation of potable water infrastructure.
Community investment in Burkina Faso: installation of potable water infrastructure; installation of solar panels for a rural school.
PAYMENTS SPLIT BY PAYEE during the year ended 31 December 2021 in USD
COUNTRY / PROJECT
NOTE
PAYEE
ROYALTIES
PROFIT SHARE
TAXES
LICENSE OR PERMIT FEES
OTHER
TOTAL
EGYPT:
(iii)
Sukari Gold Mine
Arab Republic of Egypt
-
-
-
-
-
-
Egyptian Mineral Resources Authority
22,297,965
75,200,000
-
-
-
97,497,965
Egyptian Tax Authority
-
-
3,764,505
-
-
3,764,505
Other payees
-
-
-
328,976
159,165
488,141
BURKINA FASO:
Konkera Project
(iv)
Ministry of Mines
-
-
-
1,088,243
-
1,088,243
Burkina Faso Tax Office
-
-
-
-
-
-
BURKINA FASO:
Exploration projects
Ministry of Mines
-
-
-
91,564
20,297
111,861
Burkina Faso Tax Office
-
-
-
-
-
-
Other payees
-
-
-
-
29,394
29,394
CÔTE D'IVOIRE:
Exploration projects
(iv)
Ministry of Mines
-
-
-
91,896
-
91,896
Côte d'Ivoire Tax Office
-
-
-
-
-
-
Other payees
-
-
-
-
143,110
143,110
22,297,965
75,200,000
3,764,505
1,600,679
351,965
103,215,114
(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.
Centamin plc Alexandra Barter-Carse, Head of Corporate Communications Michael Stoner, Group Corporate Manager investor@centaminplc.com
Buchanan Bobby Morse/ Ariadna Peretz/ James Husband + 44 (0) 20 7466 5000 centamin@buchanan.uk.com
LEI: 213800PDI9G7OUKLPV84 Company No: 109180
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