Centamin Plc (LON: CEY) is a company that deals with the exploration, development, and mining of precious metals. Its business is divided into four significant segments: Egypt, Burkina Faso, Cote d’Ivoire, and Corporate. Currently, it is listed on the London Stock Exchange and has a market capitalization of £1.1 Billion.
A Quick Snapshot of the Financial Performance
The CEY share price has experienced a 12% decline in share price over the last three months, which was a rough quarter. However, the company’s fundamentals remain strong in the recent quarter of quarter 2, 2023.
The revenue was recorded as £345M for the quarter, which was a 17% increase on the year-on-year (YOY) basis. The company was able to make a 30.4% gross margin in the recent quarter. Its operating profit came to £89 M with a significant margin of 26%.
The Net profit after paying taxes was £73M, with a 13% increase from last year’s quarter 2. Along with the net profits, the profitability ratios have also increased. The Earnings per share increased to £0.06 (+11.7%), while the return on equity came up to 5.74%. That was a decline from last year’s 9.1%
Huge Payout Ratio
Along with net returns, Centamin PLC is also giving regular dividends. On average, it is giving a dividend per share of £5.5. Last year’s dividend payout ratio was 81%, which means the company is not actively reinvesting in itself. It seems to focus on staying cash-positive.
Technical Analysis and Prediction of the CEY Share Price
At the press time, the CEY share price has risen above the support level of £83.8 and is trading at £88. The immediate resistance from this point is £94.95, while the 2nd resistance is at £106. The 50-day EMA price is £86.6, and the 150-day EMA price is £92.7
However, there is a downtrend line, which is seen from April of 2023. the current candle is just closed upon that line. It gives a shallow indication that the bulls are weak. To break this trendline, the investors will have to keep the CEY share price above the current resistance. If the stock falls below it, then this trend will continue. The next destination will be the 2nd support level of £74.4
Conclusion
Centamin Plc (LON: CEY) exploration, development, and mining of precious metals. The company has posted good financial reports in recent quarters. In the recent trend, the CEY share price has made it to its trendline. The prediction stands with the next day’s price action.
Technical Levels
Support: £83.8 and £74.4
Resistance: £94.9, and £106.3
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/10/15/backed-by-strong-financials-cey-stock-price-rose-11-6-in-5-days/