Centerra Gold Reports Second Quarter Results #CenterraGold
Centerra is a Canadian-based gold mining and exploration company engaged in the operation, exploration, development and acquisition of gold properties in Asia, the former Soviet Union and other emerging markets worldwide. Our objective is to build shareholder value and to establish annual gold production of 1.5 million ounces by maximizing the potential of our current properties and leveraging our financial strength and experience to acquire new long-life, low-cost projects.
The company reported a net loss of $54.6 million, or $0.23 per share based on revenues of $89.7 million. The second quarter loss includes $13.5 million ($0.06 per share) of abnormal mining costs, an other operating expense of $21.0 million ($0.09 per share) for Kumtor’s contribution to a national micro-credit financing program in the Kyrgyz Republic in April and a charge of $7.2 million ($0.03 per share) for a gold metal reconciliation adjustment of the stockpiles at Kumtor. For the same period in 2011, the Company recorded net earnings of $71.1 million or $0.30 per common share based on revenues of $243.8 million in the same quarter last year reflecting significantly higher gold production and sales.
Consolidated gold production for the second quarter of 2012 totaled 52,482 ounces at a total cash cost of $885 per ounce produced reflecting lower gold production as a result of the revised mine plan at Kumtor. In the corresponding quarter of 2011, consolidated gold production was 155,166 ounces at a total cash cost of $513 per ounce produced. (Total cash cost per ounce produced is a non-GAAP measure and is discussed under “Non-GAAP Measures” in this news release.)
Ian Atkinson, President and CEO of Centerra Gold stated, “As expected, our gold production was down for the second quarter. While Kumtor continues with its mitigation plan of moving the ice and waste material to allow access to the SB Zone on the southeast side of the pit, we continue the pre- stripping in the southwest portion of the pit and are on track to be in ore by mid-September. We expect to achieve our annual production guidance of 450,000 to 470,000 ounces of gold.”
For the first half of this year, Centerra reported a 133% plunge in profits from $207.7 million or 88-cents per share in the first six months of last year to a loss of $69.3 million or negative 28-cents per share.
Second-quarter 2012 net earnings nose-dived by 177% from $71.1 million or 30-cents per share in second-quarter 2011 to a loss of $54.6 million or negative 23-cents per share.
The second quarter loss includes $13.5 million or 6-cents/sh of abnormal mining costs, another operating expense of $21 million or 9-cents/sh for Kumtor’s share of a national micro-credit financing program in the Kyrgyz Republic for April, and a charge of $7.2 million or 3-cents/sh for a gold metal reconciliation adjustment of the Kumtor stockpiles.
Exploration expenditures of $45 million are planned for 2012. Capital expenditures for this year are estimated to be $384 million.
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