Centamin PLC Report on payments to government for the year 2017 (4024D)

TIDMCEY

RNS Number : 4024D

Centamin PLC

31 January 2018

 
 For immediate release    31 January 2018 
 

Centamin plc ("Centamin" or "the Company")

(LSE:CEY, TSX:CEE)

Payments to governments

The Reports on Payments to Governments Regulations (the "Regulations") came into force on 1 December 2014. Whilst the Regulations are part of UK law, they apply to the Company by virtue of its 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 any payments they have made to their host governments in the form of taxes, bonuses, royalties, fees and support for infrastructure payments. 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 energy and 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 EUR100,000 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 to governments made during the year ended 31 December 2017 in US$

 
 Type                              Notes         Egypt   Burkina   Australia   Côte         Total 
                                                            Faso                d'Ivoire 
-------------------------------  -------  ------------  --------  ----------  ----------  ------------ 
 Profit share                              111,629,332         -           -           -   111,629,332 
 Corporate and indirect taxes        (i)       997,048         -   1,550,333           -     2,547,381 
 Royalties                                  19,344,126         -           -           -    19,344,126 
 Exploration licence fees                            -   148,267           -      35,253       183,520 
 Mining and other licence fees               1,057,361   833,666           -           -     1,891,027 
 Infrastructure improvements        (ii)       350,000         -           -           -       350,000 
-------------------------------  -------  ------------  --------  ----------  ----------  ------------ 
                                   (iii)   133,377,867   981,933   1,550,333      35,253   135,945,386 
 ---------------------------------------  ------------  --------  ----------  ----------  ------------ 
 

(i) In accordance with the Regulations, this figure excludes taxes levied on consumption such as VAT, personal income or sales taxes. The Australian tax payment relates to imputed interest on intercompany loans that were assessable for tax.

(ii) This is the value of a new CT scanner (providing 3D x-rays) donated to Marsa Alam public hospital near the Sukari mine in Egypt.

(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.

Payments split by payee during the year ended 31 December 2017 in US$

 
                                                                                Licence 
                                                                                     or 
 Country         Notes         Payee    Royalties        Profit   Corporate      permit       Other         Total 
                                                          share         and        fees 
                                                                   indirect 
                                                                      Taxes 
-------------  -------  ------------  -----------  ------------  ----------  ----------  ----------  ------------ 
 Egypt: 
 Sukari                         Arab 
  Gold Mine                 Republic 
                            of Egypt            -   111,629,332           -           -           -   111,629,332 
 
                                EMRA   19,344,126             -           -           -           -    19,344,126 
                   (v)      Egyptian 
                                 Tax 
                           Authority            -             -    997,048-           -           -       997,048 
                               Other 
                              payees            -             -           -     143,924   1,263,438     1,407,361 
  ----------------------------------  -----------  ------------  ----------  ----------  ----------  ------------ 
 Burkina 
  Faso: 
 Konkera          (iv)      Ministry 
  project 
                            of Mines            -             -           -     833,666           -       833,666 
                             Burkina 
                                Faso 
                                 Tax            -             -           -           -           -             - 
                              Office 
-------------  -------  ------------  -----------  ------------  ----------  ----------  ----------  ------------ 
 Burkina 
  Faso: 
 Exploration                Ministry 
  projects 
                            of Mines            -             -           -     148,267           -       148,267 
                             Burkina 
                                Faso 
                                 Tax            -             -           -           -           -             - 
                              Office 
-------------  -------  ------------  -----------  ------------  ----------  ----------  ----------  ------------ 
 Côte 
  d'Ivoire: 
 Exploration      (iv)      Ministry 
  projects 
                            of Mines            -             -           -      35,253           -        35,253 
                           Côte 
                            d'Ivoire 
                                 Tax            -             -           -           -           -             - 
                              Office 
-------------  -------  ------------  -----------  ------------  ----------  ----------  ----------  ------------ 
 Australia: 
 Corporate                Australian 
                                 Tax 
                              Office            -             -   1,550,333           -           -     1,550,333 
  ----------------------------------  -----------  ------------  ----------  ----------  ----------  ------------ 
                                       19,344,126   111,629,332   2,547,381   1,161,110   1,263,438   135,945,386 
 
 

(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 one project each for the purposes of the Regulations. This is because the licence areas are operationally and geographically linked.

(v) Represents payments for withholding tax on foreign suppliers and stamp duty.

For more information, please contact:

 
 
   Centamin plc 
   Andrew Pardey, Chief Executive 
   Officer 
   Alexandra Carse, Investor 
   Relations 
   [e-mail] 
   [phone] 
 
   BMO Capital Markets 
   Jeffrey Couch 
   Thomas Rider 
   [phone] 
 Buchanan 
  Bobby Morse 
  Chris Judd 
  Patrick Hanrahan 
  + 44 (0) 20 7466 5000 
 

This announcement contains periodic regulated information.

A copy of this announcement is available on the Company's website at www.centamin.com

LEI: 213800PDI9G7OUKLPV84

Company No: 109180

This information is provided by RNS

The company news service from the London Stock Exchange

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January 31, 2018 02:00 ET (07:00 GMT)