Centerra Gold Inc. (
) reported net earnings for the first quarter of 2013 of $51.4
million or $0.22 per common share reflecting higher gold sales due
to the higher gold production at both operations during the period.
For the same period in 2012, the company recorded net earnings of
$9.6 million or $0.04 per common share. The 2012 results were
impacted by a 10-day work stoppage at Kumtor in February 2012 and
the acceleration of ice and waste material at Kumtor which required
a change in the mine plan.
CG also announced a dividend of C$0.04 per common share
(approximately US$9.4 million at the current exchange rate),
payable on June 6, 2013 to shareholders of record on May 23, 2013.
The ex-dividend date will be May 21, 2013.
2013 First Quarter Highlights:
Produced 115,220 ounces of gold in the quarter, including 89,618
ounces at Kumtor and 25,602 ounces at Boroo, compared to 72,555
ounces in the same period in 2012.
Increased revenues to $192.3 million compared to $133.8 million
in the same quarter of 2012.
Cash provided by operations increased to $92.0 million compared
to $32.0 million in the first quarter of 2012.
Operating cash cost per ounce produced of $471 compared to $685
in the same period in 2012
Reported all-in cash cost (pre-tax) for the quarter of $1,327
per ounce compared to $2,902 for the 2012 first quarter.
Achieved 3 million man-hours without a lost time injury (LTI) at
the Boroo mine.
Experienced accelerated movement in the Davidov Valley
Waste-rock Dump at Kumtor.
Ian Atkinson, President and CEO of Centerra Gold said:
"Operationally we are on track to achieve our production guidance
for the year. Boroo had an excellent quarter producing almost
26,000 ounces of gold. Kumtor produced almost 90,000 ounces of
gold, and mine production is on track to achieve the annual gold
production forecast with over 50% of the gold production occurring
in the fourth quarter. Financially, we reported over $51 million or
$0.22 per share in net earnings and the operations generated $92
million or $0.39 per share of cash flow for the first quarter.
"As expected at the Kumtor mine the waste-rock dump is
experiencing movement as was disclosed in the KS-13 expansion plan.
The movement has recently increased impacting the workshops and
administration facilities ahead of the planned schedule. As a
result, we have expedited the demolition of the buildings and
relocation of other infrastructure sooner than had been planned to
ensure continued safe operations. Planned gold production for 2013
has not been affected to date. Employees have been moved to
temporary work locations until the planned new facilities are
"Also regarding Kumtor, we are continuing to have discussions
with the Kyrgyz authorities to resolve the issues concerning Kumtor
to the benefit of all Centerra shareholders.
"Recently we have seen tremendous volatility in the gold price.
We are monitoring and assessing its impact on the operations and
are reviewing spending plans for 2013. Exploration spending in 2013
at Kumtor has been reduced by $5 million and further reductions may
be contemplated in other areas. The company has a strong balance
sheet and continuing good margins even in a lower gold price
environment. Our all-in costs including all capital and taxes are
forecast to be in the range of $1,247 to $1,360 per ounce of gold
produced for the year."
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