Centamin recognises that nothing is without risk. A successful and sustainable business needs a robust and proactive risk management framework as its foundation, which outlines the Company’s approach and process for management of risk. Centamin’s risk framework is supported by a strong culture of risk awareness, that encourages openness and integrity, alongside a clearly defined appetite for risk. This enables the Board to consider risks and opportunities to improve our decision-making process, deliver on our objectives and improve our performance as a responsible mining company.
Set out below are the principal business risks that could impact the Group’s future performance, solvency or liquidity, how they link to our strategy and information on how we mitigate them.
The principal risks identified by the Board, evidence the extent of potential consequences inherent in operating a large-scale mining operation and we have included our view on the appetite to these risks at a point in time at the end of the year, however it should be noted that these risks are discussed regularly, and our appetite could change based on a number of factors. The Board regularly assesses the measures to mitigate these risks, limit the likelihood of incidents and recognise opportunities for delivery.
- STRATEGIC PRIORITIES
- RISK TREND
Emerging risks are defined as circumstances or trends that could significantly impact the Company’s financial strength, competitive position or reputation within the next three years or over a longer term. Emerging risks may prove difficult to quantify as they are often influenced by external factors and difficult to predict.
We have outlined a non-exhaustive list of emerging risks assessed during the year, these are risks which are inherent to the nature of our business and where we operate. We monitor these as part of the risk management framework.
Ensuring that we effectively manage our exposure to risks such as jurisdictional taxation exposure, currency fluctuations, interest rate and liquidity is an ongoing process. The Company has developed the necessary procedures and programmes, including in response to inflationary pressures, to minimise the potential impact of these risks.
The Company recognises the importance of risks associated with cyber security and data governance but has assessed they do not represent a principal risk given the current position of the Company’s operations. Increasing investment in this area is, however, a priority for the Company to ensure we can maintain our resilience alongside planned enhancements to our technology started in 2021 through a digital transformation programme.
The Company continue to acknowledge the risks and opportunities associated with our ability to realise value by successfully executing merger, acquisitions and divestments. Management must be ready to evaluate approaches and opportunities to ensure value for shareholders is maintained and enhanced.
Increased militant activity and political instability in Northern CDI and BF continues to raise potential concerns for our personnel safety in-country. We continue to closely monitor the situation through our own security, local government, national security and external advisors.
Ensuring balanced capital is allocated effectively and projects are well executed is a risk and opportunity which the Company recognises. Examples of key capital projects delivered in 2021 include the new tailings storage facility, infrastructure improvements to the camp and progressing the solar plant and paste fill plant at Sukari.