ANNual RepOrt 2010 Company Particulars DIRECTORS AUDITORS Mr Josef El-Raghy, Deloitte Touche Tohmatsu Executive Chairman Level 14, Woodside Plaza, Mr Harry Michael, 240 St Georges Terrace Chief Executive Officer Perth WA 6000 Mr Trevor Schultz, Executive Director of Operations UK BROKERS Mr H Stuart Bottomley, Ambrian Partners Limited Senior Non Executive Director Old Change House, Mr Colin Cowden, 128 Queen Victoria Street Non Executive Director London EC4V 4BJ, United Kingdom T: + 44 (0) 207 7634 4700 Dr Thomas Elder, Non Executive Director Bank of America Merrill Lynch 2 King Edward Street Professor G Robert T Bowker, London EC1A 1HQ, United Kingdom Non Executive Director T: + 44 20 7996 1000 COMPANY SECRETARY Stifel Nicolaus Weisel 10 Dominion Street, 5th Floor Mrs Heidi Brown London EC2M 2EE, United Kingdom T: + 20 7877 4300 CHIEF FINANCIAL OFFICER Mr Mark Di Silvio FINANCIAL PUBLIC RELATIONS ADVISER GENERAL MANAGER – EGYPT Buchanan Communications Mr Youssef El-Raghy 45 Moorfields, London EC2Y 9AE T: + 44 (0) 20 7466 5000 HEAD OFFICE 57 Kishorn Road STOCK EXCHANGES Mount Pleasant, Western Australia, 6153 The Company is listed on the following T: + 61 8 9316 2640 stock exchanges: F: + 61 8 9316 2650 - the Main Market of the London Stock W: www.centamin.com Exchange (LSE:CEY); and EGYPT OFFICE - the Toronto Stock Exchange (TSX:CEE). 361 El-Horreya Road The Primary Listing is in London. Sedi Gaber Alexandria, Egypt LOCATION OF REGISTERS T: + 2 0354 1125 9 OF SECURITIES F: + 2 0352 2635 0 Australia BANKERS Computershare Investor Services Pty Ltd Level 2, 45 St Georges Terrace Australia Perth WA 6000 National Australia Bank Limited T: + 61 8 9323 2000 100 St Georges Terrace,Perth WA 6000 T: + 61 8 9323 2033 Egypt Canada National Societe General Bank Computershare 54 Elbatal Ahmed Abdel Aziz Street 100 University Avenue, 8th Floor Cairo, Egypt Toronto, Ontario, ON M5J 2Y1 Commercial International Bank T: + 1 416 263 9311 Sultan Hussein Branch F: + 1 416 981 9777 Alexandria, Egypt United Kingdom United Kingdom Computershare Investor Services Clydesdale Bank Plc PO Box 82, The Pavilions, Bridgwater Road 50 Lothian Road Bristol BS99 7NH, England Edinburgh EH3 9BY T: + 44 (0) 870 702 0003 F: + 44 (0) 870 703 6116 II Chairman’s Report 01 Review of Operations 02 Contents T 2010 Directors’ Report 10 R O P Remuneration Report 17 Management Discussion & Analysis 23 L RE A Auditor Independence Declaration 34 ANNU Corporate Governance Statement 35 Independent Auditor’s Report 41 Directors’ Declaration 43 Statement of Comprehensive Income 44 IMITED L Statement of Financial Position 45 T P Statement of Changes in Equity 46 GY E Statement of Cash Flows 48 Notes to the Financial Statements 49 MIN A CENT III IV Chairman’s Report Dear Shareholders This year’s annual report is one that captures the final transition of your company from junior explorer to a gold producer, a path travelled that has been very rewarding on many levels for all those involved. With the commissioning of the Sukari Gold Mine the Company has reopened the highly prospective yet underexplored Egyptian gold T 2010 fields and whilst we view our achievements to date with pride we do see great challenges R and opportunities ahead. Your company is well placed and looking forward to both the O challenges and the opportunities. P During the first half of the year The Stage 4 (8-10Mtpa) Scoping It is a particular credit to our construction activities continued Study was also commenced during operating team that within our first L RE at Sukari with well over 1500 2010 with the goal of achieving year of operation a lost time injury A people on site. The January +500,000oz per annum of gold frequency rate of 0.23 per 200,000 quarter then saw the focus shift production. This rate of production manhours was achieved which is to commissioning of the Stage 1 is more in line with the size of well below mining industry accident oxide circuit. The April quarter saw the Sukari resource and reserve, frequency statistics in more the commissioning of the Stage 2 both of which continued to grow established mining environments. ANNU sulphide circuit, our first quarter significantly through the year and I would like to take the opportunity of commercial production and a we see every indication that this to thank our previous Chairman, maiden operating profit before tax growth will continue. Exploration Mr Sami El-Raghy, who along with of over $19 million for the quarter. efforts are now looking further afield fellow director Mr Brian Speechly, At the end of the financial year the than Sukari alone and we have been stood down from the Board at the Company held over $31 million in encouraged by the early results end of 2009. Sami’s work in Egypt cash, had no debt, no hedging and from locations such as Quartz ridge which began in the early 1990’s has is able to fund the planned Sukari to the east of Sukari. set the base for growth for both the expansion from Sukari cash flow. Corporately the Company continues Company and the industry within In parallel with the Stage 1 and 2 to evolve. The Company’s shares Egypt and with the development completion of Sukari, underground trade with good volume on the TSX of Sukari his vision is beginning to decline development progressed where they are included in the TSX be realized. well throughout the year with nearly gold index. In November 2009 the I would like to close by thanking 2km of decline work completed and Company’s share trading in London His Excellency Sameh Fahmy, the commencement of ore drive moved from the AIM market to the the Minister for Petroleum and development remaining on schedule main market. Following this the Mineral Resources for his continued IMITED for the last quarter of 2010. It is Company was admitted to the FTSE support in the Company’s activities. L envisaged that early in calendar 250 in June 2010. In March 2010, Furthermore, I would like to thank 2011 high grade ore from the Mr Harry Michael was appointed my co-directors for their counsel T underground will supplement the Chief Executive Officer. Harry’s during the year, our dedicated P open pit ore being fed to the plant. experience in building and operating team at Sukari, in Alexandria, and After Stage 2 plant commissioning large scale mines in Africa will be of course our Company Secretary GY handover our construction team invaluable as we continue to push in Perth. for production and company growth. E rolled immediately into Stage 3 Your Company is now well placed to (5Mtpa) plant expansion activities As the first modern gold mine in be a large scale, long life, low cost with orders for key long lead items Egypt, this achievement is indeed gold producer. placed during the period and a testament to our dedicated staff, detailed design well underway. The many of whom have been with our On behalf of the Board of Directors MIN Stage 3 expansion remains on track Company for more than 10 years. A for completion by mid 2011. We have seen employees grow over the years to now be managers and skilled operators and it is these people that have built the Company. Josef El-Raghy CENT Chairman 1 Review of Operations Centamin Egypt Limited For the financial year ended 30 throughout the year, the transitional- June 2010, 67,101 ounces of gold sulphide contact was slightly deeper (“Centamin” or “the Company”) is was produced from the Sukari than originally anticipated (approx a mineral exploration, development open pit mine. A total of 4.2Mt of 15m) deferring the full presentation ore @ 0.89g/t Au was mined for of the higher grade sulphides to and mining company that has been the year from Stage 1 and 2 of the the process plant. Full sulphide actively exploring in Egypt since open pit at an average waste to exposure in the Stage 1 pit is now ore ratio of 3:1. During the year, scheduled early in the forthcoming 1995. The Company’s principal mine development has progressed year. Mine productivity continued asset is the Sukari Gold Project, through the oxide contact and into to improve throughout the year and the higher grade sulphide zones it is anticipated that a positive and located in the Eastern Desert toward the end of the financial significant reduction in unit mining of Egypt. year. Whilst greater quantities of cost will result throughout the sulphide ore were being exposed foreseeable future. Operational Performance Financial Year ended 30 June 2010 Ore Mined (‘000t) 4,183 Total Mined (‘000t) 17,003 Mine Head Grade (g/t) 0.89 Strip Ratio waste/ore 3.1 Ore Processed (‘000t) 1,906 Mill Head Grade (g/t) 1.37 Gold Recovery (%) 87 Gold Produced (1) (oz) 67,101 Cash Operating Cost of Production (2) US$/oz 478 Gold Sold (oz) 63,753 Average Sales Price US$/oz 1,152 (1) Gold produced is gold poured and does not include gold-in-circuit at period end. (2) Cash operating costs excludes royalties, exploration and corporate administration expenditure. 2 Sukari Project Expansion In preparation for an increase in second half of calendar 2010 which Stage 3 (5Mtpa Expansion) mining rate early in 2011, orders should bring reline schedules more The Stage 3 expansion project have been placed for a fourth closely to design expectations. A primarily involves installation of Terex RH120 excavator, three dump leach trial during the year is a secondary crushing circuit and CAT785C dump trucks, a CAT993K well underway with material gold related infrastructure that will be front end loader and further recovery expected to commence integrated into the existing process ancillary equipment.