Centamin PLC Increases Dividend by 64%

Written by MrStockFox. Posted in Trade Ideas

centamin

Today I welcome the latest news from Centamin PLC.  Currently Centamin PLC is my largest dividend payer inside my Dividend Porfolio.  Typically I wouldn't hold such a large position inside a portfolio but this holding also represents a position within my commodities portfolio, which by net worth, remains one of the largest positions I currently hold.  It just so happens that it started paying a dividend last year so I now include the position within my Dividend Portfolio.   

Centamin PLC announced an increase in their dividend to $.0286 cents per share.  This translates into a 64% increase from their prior dividend last October or an annual increase from $337.56 to $554.84.  This will increase my annual income by $217.28 each year.  That is totally awesome!  With this increase my yield on cost will now be 4.2%.

Yesterday I wrote down my 2015 goals and specified that it was going to be very difficult to hit $5000 in future dividends.  This increase by Centamin PLC will go a long way in helping me acheive that goal. 

Highlights

"...the Board of Directors initiated a dividend program during 2014 with a maiden interim dividend of 0.87 US cents per share. The Company is now pleased to propose the final dividend for 2014 of 1.99 US cents per share (approx. US$23 million), for a total full year dividend of 2.86 US cent per share, representing a pay-out level of approximately 30% of our free cash flow as defined by our dividend policy."

"Full year production of 377,261 ounces, a 6% increase on 2013, with Q4 2014 production of 128,115 ounces representing an increase of 37% over Q3 2014 Full year cash cost of production of US$729 per ounce, with Q4 2014 cash costs of US$655 per ounce Stage 4 plant expansion completed with total project expenditure US$331.2 million Process plant throughput exceeded nameplate 10Mtpa capacity in Q4 2014 2015 guidance of 420,000 ounces gold at US$700 per ounce cash cost of production"

"Gold production guidance for 2015 is 420,000 ounces at a cash operating cost of US$700/oz and all-in-sustaining cost ("AISC") of US$950/oz. The northern and eastern walls of the open pit are a focus for 2015 and, as mining progresses through the upper portions of the next stage of pit development, grades are scheduled to progressively increase to the reserve average in the second half of the year, when production is expected to increase to the 450-500,000 ounce per annum rate."

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