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Executives

Andy Davidson – Head of Business Development and Investor Relations

Andrew Pardey – Chief Operating Office

Centamin Plc (OTCPK:CELTF) Q3 2013 Earnings Conference Call November 6, 2013 9:00 AM ET

[No presentation session for this event]

Andy Davidson

Hello and thanks for joining us for Q3 Results Presentation. I’m glad that you joined us. As usual I’m not going to give a presentation and just open it up straight-away for Q&A please. Thank you very much.

Question-and-Answer Session

Operator

(Operator Instructions) We have a question from the line of James Kayser [ph]. Please go ahead.

Unidentified Analyst

Hi, guys.

Andy Davidson

Hi, James. Sorry I should have mentioned James and everyone, I have Andrew Pardey with me as well. Excuse me.

Unidentified Analyst

Hi, Andy.

Andrew Pardey

Hi.

Unidentified Analyst

And just on the Stage 4 time, I just like to make sure that I’ve got this right, you’ve got $7 million left to spend and that includes all the costs for the upgraded mining fleet. So that’s all in about $7 million left to spend and on Stage 4, when would you expect to start commissioning and start ramping up assuming that you get all the necessary permits in place?

Andrew Pardey

Well, yeah James, there is $7 million left to spend at Stage 4 budget. There is some fleets component incorporated in that Stage 4 roughly, it’s $55 million out of the $325 million is for open pit mining fleet. Beyond the Stage 4 allocation, there is another $80 million of CapEx of which we spent roughly $70 million to-date.

So as it ran about $15 million left to spend in total. So that’s the remaining. So the total budget would be for the Stage 4 plus fleet expansion around $400 million, $405 million. And just to clarify that a bit further as well it’s we do breakout the CapEx spend in the MD&A and the notes to the MD&A, there is a bit of detail there on where the capital was spent in the nine months to to-date between those various cost centers which is essentially the Stage 4 CapEx, beyond pit fleet, beyond Stage 4 the ongoing fleet build-up then the underground development, the open pit development and the sustaining CapEx you get all those numbers you can add them there.

Unidentified Analyst

But at times Andy and just on the timing when you would expect that start ramping up with the – to the 10 million tons?

Andrew Pardey

The plan is we’ll have the plant operating at capacity in the second half of next year, first half of the year we’ll be ramping it up and by about middle of the year we’ll have it up at to the design capacity.

Unidentified Analyst

Yes. One more question and one more general one on the court cases both in terms of the license area and in terms of the fuel subsidy, is there anymore of that the MD&A briefly but is there any more detail you can give us on likely timings I was under the impression there was a court case going to be on the 19 of November is that lightly to be largerly procedural or will that be a decision make one way or the other or some kind of recommendation and just any color you could give us would be appreciated?

Andrew Pardey

Sure James, we look in both cases there is no time table, we don’t know the end result that has always been the case really the next hearing in the concession agreement appeal is on the 19, but we have no indication that a judgment will be forthcoming on that day. We are expecting it to be procedural, so we still remain in the process and we still have no clear idea of when the final ruling will be made, there is a – the last hearing to move the appeal up to the Merit Circuit that is progressed at Merit Circuit also which is a division of the supreme administrative court with the circuit that will make the final ruling, so we are making progress towards resolution of this appeal, as you actually we don’t know when that final ruling will come.

Unidentified Analyst

Okay. One last question just in terms of starting to split the profit share with the government you mentioned in the MD&A that it would be looking to do that in Pharaoh Gold Mines next financial year which is June to June as I understand it would it be going straight to 50:50 or would that be sort of a sliding scale where they take 10%, 20%, 30% and also would you be looking to recoup the dividends that have already been paid out this year or last year in Pharaoh Gold Mines financial year to the government always that is just the matter still for discussion?

Andrew Pardey

You talk about the $8.2 million there…

Unidentified Analyst

Yeah, exactly.

Andrew Pardey

That yet was made and we calculated that by adjusting the cost recovery model at our own discretion the recovery of those costs that we moved essentially to the right will come in time, so we will recover those that advance payment through the cost recovery mechanism in essence, the sliding scale question, we understand the term that the profit sharing agreement do provide for sliding scale whereby there is an additional 10% to us in the first two years of profit share and then that moves down to 5%.

So sensibly it’s a 40% to the government in the first two years, and then 45% to two years thereafter and then it raised to 50:50 that’s all provided for in the standards, in the concession agreement and that effect together with the fact that cost recovery is ongoing whilst offset profit share commences means you do get a phased increase if you like a phasing interest at the profit share were steadily built up over several years towards that steady state.

Unidentified Analyst

Thanks for the color, Andy, appreciate it. Good luck guys, I’ll get off and then someone else to go.

Andrew Pardey

Thanks, James.

Operator

Thank you. (Operator Instructions) There appears to be no further questions or comments at this time, please continue.

Andrew Pardey

Okay. Well, that was short and sweet, but if there are any questions that anybody has and we would like to ask them offline and please do get in touch with me, got my contact details, it would be found on our website, it’s not on the release. But otherwise thanks very much for joining us and we’ll have a good day, cheers. Thank you.

Operator

And ladies and gentlemen, that does conclude our conference for today. Thank you for participating. You may all disconnect.

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