2nd Quarter results

Centamin Egypt Limited 30 January 2004 CENTAMIN EGYPT LIMITED ACN 007 700 352 QUARTERLY REPORT FOR THE PERIOD ENDING 31 DECEMBER 2003 CORPORATE Discussions with the Egyptian Geological Survey and Mining Authority (EGSMA) and the Ministry for Industry continued during the quarter in order to obtain the renewal of security passes for Centamin's staff and contractors, so that work may resume at the Sukari gold project. The Company remains to be presented with any formal notice in accordance with its Concession Agreement with EGSMA and the Government, advising of any breach, default or dispute or of any failure to fulfil any of its obligations under the terms of the Agreement. If the Company received such notice it would have 90 days in which to remedy any issue raised and in accordance with the Agreement the operations and activities at Sukari should continue during such period. During the quarter the Company focussed on three initiatives to seek resolution: - 1. General Authority for Investment (GAFI). As previously reported the Company commenced action via the Ministerial Dispute Committee of GAFI chaired by the Deputy Prime Minister, Dr.Youssef Wali. The Committee unanimously resolved that work should recommence and on 4th October issued written instructions to EGSMA to execute all necessary documentation and comply with the terms of the Agreement. To date EGSMA has failed to abide by this Order. The company's discussions with EGSMA and GAFI have continued and GAFI is currently investigating why there has been a lack of compliance by EGSMA to this directive. 2. Administrative Court. The Company initiated an action in the Administrative Court in May 2003 for the signing of all relevant paperwork to recommence work at Sukari. The Court heard the case in both June and October and granted EGSMA and the Ministry an extension until 22nd December after their requests for more time to review the case. On 22nd December the court ruled that there would be no further extensions, despite such requests, and the case be set aside for a decision on 8th February. The company is confident of a favourable decision from the Court. 3. Cairo Regional Centre for Commercial Arbitration. The three Arbitrators required under the terms of the Agreement have now been appointed and the Centre has advised all lawyers and arbitrators that proceedings shall now commence. The company expects these proceedings to start during February. The first instruction being sought by the Company is for the enforcement of Article XXIV (h) of the Concession Agreement which states 'Pending the award (of arbitration), the operations and activities hereunder shall not be discontinued.' Following this the company will be seeking to have security passes, the incorporation of the operating company and all other documentation required to progress the development of the Sukari Project, completed by EGSMA. During the quarter the Company also held discussions with several members of the Egyptian Parliament, other Ministry officers and senior Egyptian government officials in order to remedy the impasse. Many of these meetings have led to positive outcomes. There is a large amount of support within Egypt from many sectors for the Company's activities and endeavours. The Sukari project is the most advanced gold project in Egypt and will be the first gold producer in the modern era and as such Centamin understands that it is important to seek resolution to these matters in a non-confrontational and co-operative manner if possible. The company remains fully committed to developing a significant gold mining industry in the country. Although this approach has taken significantly longer than expected, we believe it has and will provide for an even more supportive framework in which to deal with the Government during the lead up to and through project construction. The Company is resolved to continue to adhere to its policies for dealing with all government officials during commercial negotiations and will continue to abide by both the spirit and intent of the Concession Agreement. Seven drill rigs remain mobilised ready to resume the task of completing infill drilling over the Amun zone along with step out and infill drilling on the Ra zone and across to the Gazelle zone. Existing adits have shown wide mineralised zones, with one adit channel sample averaging 38m @ 7.73g/t. The current resource of 3.06 million ounces (uncut) is contained predominantly within the Amun Zone which is up to 200m wide however mineralisation in the Ra zone increases to over 500m in width and surface sampling indicates the continued presence of gold. Initial drilling in the Ra Zone returned intersections of - 54m @ 3.11g/t Au, 49m @ 2.10g/t Au, 40m @ 2.09g/t Au, 50m @ 2.05g/t Au, 10m @ 5.83g/t Au, 60m @ 2.20g/t Au These intersections have been previously reported in the Company's 2003 Annual Report. Josef El-Raghy Managing Director Perth, 30 January 2004 Rule 5.3 Appendix 5B Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001. Name of entity Centamin Egypt Limited ABN Quarter ended ('current quarter') 86 007 700 352 31 December 2003 Consolidated statement of cash flows ------------ ------------ Cash flows related to operating activities Current quarter Year to date $A'000 (6 months) $A'000 ------------ ------------ ------------ 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and ( 869) ( 1,552) evaluation (b) development ( 33) ( 121) (c) production (d) administration ( 286) ( 437) 1.3 Dividends received 1.4 Interest and other items of a similar 249 498 nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Legal Settlement ( 200) ------------ ------------ Net Operating Cash Flows ( 939) ( 1,812) ------ ---------------------- ------------ ------------ Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed ( 3) ( 38) assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed 6 6 assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) ------------ ------------ Net investing cash flows 3 ( 32) ------------ ------------ 1.13 Total operating and investing cash flows ( 936) ( 1,844) ------ (carried forward) ------------ ------------ ---------------------- 1.13 Total operating and investing cash flows ( 936) ( 1,844) ------ (brought forward) ------------ ------------ ---------------------- Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Cost of Fund Raising ------------ ------------ Net financing cash flows ------ ---------------------- ------------ ------------ Net increase (decrease) in cash held ( 936) ( 1,844) 1.20 Cash at beginning of quarter/year to date 23,683 24,627 1.21 Exchange rate adjustments to item 1.20 ( 221) ( 257) ------------ ------------ 1.22 Cash at end of quarter 22,526 22,526 ------ ---------------------- ------------ ------------ Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities ------------- Current quarter $A'000 ------------- ------------- 1.23 Aggregate amount of payments to the parties included in 204 item 1.2 ------------- 1.24 Aggregate amount of loans to the parties included in ------ item 1.10 ------------- -------------------------------- 1.25 Explanation necessary for an understanding of the transactions ------------------------------------------- (a) Mr Sami El-Raghy, a director and employee of the Company received salary and superannuation for the quarter amounting to $73,462. (b) Mr Josef El-Raghy, a director and employee of the Company received salary and superannuation for the quarter amounting to $56,650. (c) Mr Sami El-Raghy is also a Director and Shareholder of El-Raghy Kriewaldt Pty Ltd ('El-Raghy Kriewaldt'). El-Raghy Kriewaldt provides office premises to the Company. All dealings with El-Raghy Kriewaldt are in the ordinary course of business and on normal terms and conditions. Rent paid to El-Raghy Kriewaldt during the current quarter amounted to $12,683. (d) Directors Fees and superannuation paid during the quarter amounted to $19,875. (e) Consulting Services Dr T Elder, a non-executive director, provides additional consulting services to the Company. All dealings with Dr T Elder are in the ordinary course of business and on normal terms and conditions. Consulting fees paid to Dr T Elder during the current quarter amounted to $3,610. (f) Insurance Mr C Cowden, a non-executive director, is also a director and shareholder of Cowden Limited. Cowden Limited provides insurance broking services to the Company. All dealings with Cowden Limited are in the ordinary course of business and on normal terms and conditions. Insurance premiums paid to Cowden Limited during the current quarter amounted to $37,668. ------------------------------------------- Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows -------------------------------------------- -------------------------------------------- 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest -------------------------------------------- -------------------------------------------- Financing facilities available Add notes as necessary for an understanding of the position. ------------- ------------- Amount available Amount used $A'000 $A'000 ------------- ------------- 3.1 Loan facilities ------------- ------------- 3.2 Credit standby arrangements ----- ----------------------- ------------- ------------- Estimated cash outflows for next quarter $A'000 ------------------ 4.1 Exploration and evaluation 1,000 ------------------ 4.2 Development 30 ----- ----------------------------- ------------------ Total ----- ----------------------------- ------------------ Reconciliation of cash ------------ ------------- Reconciliation of cash at the end of the Current quarter Previous quarter quarter (as shown in the consolidated statement of cash $A'000 $A'000 flows) to the related items in the accounts is as follows. ------------ ------------- ------------------------- ------------- 5.1 Cash on hand and at bank 647 1,194 ------------ ------------- 5.2 Deposits at call 7,201 7,811 ------------ ------------- 5.3 Bank overdraft ------------ ------------- 5.4 Term Deposit 14,678 14,678 ----- ---------------------- ------------ ------------- Total: cash at end of quarter (item 22,526 23,683 ----- 1.22) ------------ ------------- ---------------------- Changes in interests in mining tenements -------- --------------- -------- -------- Tenement Nature of Interest Interest interest at at reference (note (2)) beginning end of of quarter -------- --------------- quarter -------- -------- 6.1 Interests in mining tenements relinquished, -------- --------------- -------- -------- reduced or lapsed 6.2 Interests in mining tenements acquired or -------- --------------- -------- -------- increased Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates. ---------- ---------- ---------- ------------ Total Number Issue price Amount paid number quoted per up per security (see security (see note note 3) 3) (cents) (cents) -------------- ---------- ---------- ---------- ------------ ------------ 7.1 Preference +securities (description) ---------- ---------- ---------- ------------ 7.2 Changes during quarter (a) Increases through issues (b) Decreases ------ through ---------- ---------- ---------- ------------ returns of capital, buy-backs, redemptions ---------- 7.3 +Ordinary 501,910,369 501,910,369 securities ---------- ---------- ---------- ------------ 7.4 Changes during quarter (a) Increases through issues (b) Decreases ------ through ---------- ---------- ---------- ------------ returns of capital, buy-backs ---------- 7.5 +Convertible debt securities (description) ------ ---------- ---------- ---------- ------------ ---------- 7.6 Changes during quarter (a) Increases through issues (b) Decreases ------ through securities matured, converted ---------- ------------------------------------ 7.7 Options Options issued under Employee Option Plan 2002 (description ------------------------------------ and conversion factor) ---------- ---------- ------------ 7.8 Issued during 250,000 NIL 29.00 cents 11/11/05 quarter 1,160,000 NIL 23.10 cents 12/11/06 130,000 NIL 23.10 cents 17/11/06 750,000 NIL 35.49 cents 15/12/06 ---------- ---------- ---------- ------------ 7.9 Exercised during ---------- ---------- ---------- ------------ quarter 7.10 Expired Exercise price Expiry date during quarter 49,999,744 NIL 20 cents 09/11/2003 ------ ---------- ---------- ---------- ---------- ------------ 7.11 Debentures (totals only) ------ ---------- ---------- ---------- 7.12 Unsecured notes (totals ---------- ---------- only) Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4). 2 This statement does give a true and fair view of the matters disclosed. Sign here: Company Secretary Date: 30 January 2004 Print name: Mrs Cecilia Tyndall Notes 1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. 2 The 'Nature of interest' (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2. 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. This information is provided by RNS The company news service from the London Stock Exchange

Companies

Centamin (DI) (CEY)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today