Centerra profit rises, declares special dividend
TORONTO (miningweekly.com) – Centerra Gold increased first quarter earnings by 10%, after higher bullion prices more than offset a decline in gold sales, the company said on Friday.
Centerra also announced a special dividend of C$0,30 a share, in addition to an annual dividend of C$0,10 a share.
"The decision of Centerra's board to declare the special dividend was based on our strong operating performance and the high gold price, which have created substantial operating cash flow, and, even after significant capital investment, is resulting in growing cash balances,” CEO Steve Lang said in a statement.
Centerra owns the Kumtor mine, in Kyrgyzstan, and the Gatsuurt project in Mongolia. The firm ended mining operations at another Mongolian mine, Boroo, in November.
First quarter net income rose to C$136,6-million, compared with C$123,9-million, and revenue increased 2%, to $250,2-million, the company said.
Centerra sold 180 628 oz of gold, 21% lower than in the first quarter of 2010, and production fell 14%, to 180 716 oz.
The average realised gold price in the quarter, at $1 385/oz, was 25% higher than in the same period a year earlier.
Gold production was lower because of the lower-grade stockpile material being processed at Boroo, after mining ended at the operation last year, Centerra said.
The company had planned to replace the production from Boroo with ore from its Gatsuurt project, which is located about 50 km away.
However, the firm is still waiting to hear how the project will be affected by a new water and forests law enacted in Mongolia and the final permitting for Gatsuurt will not be approved until the uncertainty under the new law is dealt with.
Centerra maintained its full-year production guidance of 600 000 to 650 000 oz of gold, at total cash costs of between $460/oz and $495/oz.
Edited by: Creamer Media Reporter
Centerra also announced a special dividend of C$0,30 a share, in addition to an annual dividend of C$0,10 a share.
"The decision of Centerra's board to declare the special dividend was based on our strong operating performance and the high gold price, which have created substantial operating cash flow, and, even after significant capital investment, is resulting in growing cash balances,” CEO Steve Lang said in a statement.
Centerra owns the Kumtor mine, in Kyrgyzstan, and the Gatsuurt project in Mongolia. The firm ended mining operations at another Mongolian mine, Boroo, in November.
First quarter net income rose to C$136,6-million, compared with C$123,9-million, and revenue increased 2%, to $250,2-million, the company said.
Centerra sold 180 628 oz of gold, 21% lower than in the first quarter of 2010, and production fell 14%, to 180 716 oz.
The average realised gold price in the quarter, at $1 385/oz, was 25% higher than in the same period a year earlier.
Gold production was lower because of the lower-grade stockpile material being processed at Boroo, after mining ended at the operation last year, Centerra said.
The company had planned to replace the production from Boroo with ore from its Gatsuurt project, which is located about 50 km away.
However, the firm is still waiting to hear how the project will be affected by a new water and forests law enacted in Mongolia and the final permitting for Gatsuurt will not be approved until the uncertainty under the new law is dealt with.
Centerra maintained its full-year production guidance of 600 000 to 650 000 oz of gold, at total cash costs of between $460/oz and $495/oz.
Edited by: Creamer Media Reporter
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