Centerra Gold reports net earnings of $27.6 million in Q3, declares dividend
(Kitco News) - Centerra Gold (TSX: CG) (NYSE:CGAU) today reported that net earnings and earnings from continuing operationsof $27.6 million were recognized in the third quarter of 2021, compared to netearnings of $205.7 million in the third quarter of 2020.
The company said that in2020, net earnings figures include the results from the Kumtor mine, which isaccounted for as a discontinued operation, whereas net earnings from continuingoperations were $82.4 million in the third quarter of 2020.
"The decrease in net earningsfrom continuing operations was primarily due to a decrease in the gold ouncessold at the Mount Milligan mine and at the ?-ks? 1/4 t mine, a decrease in the copperpounds sold at the Mount Milligan mine and lower average realized gold prices,partially offset by the higher average copper and molybdenum prices," Centerranoted in a statement.
Cash provided by operatingactivities from continuing operations was $62.4 million in the third quarter of2021, compared to $151.7 million in the third quarter of 2020, the companyadded.
The decrease in cash providedby operating activities from continuing operations was primarily due to adecrease in the gold ounces sold at the Mount Milligan mine and the ?-ks? 1/4 t mine,a decrease in the copper pounds sold at the Mount Milligan mine due to minesequencing, and lower average realized gold prices.
Free cash flow fromcontinuing operations of $41.0 million was recognized in the third quarter of2021, compared to $124.9 million in the third quarter of 2020. The decrease infree cash flow from continuing operations was primarily due to lower cashprovided by operating activities from continuing operations and highersustaining capital expenditures at the Mount Milligan mine, Centerra noted.
The company added that basedon the company's financial position, strong operating results and cash flows,its Board of Directors has approved a quarterly dividend of C$0.07 per commonshare - approximately C$20.8 million or US$16.4 million.
Centerra Gold is aCanadian-based gold mining company focused on operating, developing, exploringand acquiring gold properties in North America, Turkey, and other marketsworldwide. Centerra operates two mines: the Mount Milligan mine in BritishColumbia, Canada, and the ?-ks? 1/4 t mine in Turkey. While the company still ownsthe Kumtor Mine in the Kyrgyz Republic, it is currently no longer under the company'scontrol.
The company also owns thepre-development stage Kemess underground project in British Columbia, Canadaand owns and operates the Molybdenum Business Unit in the United States.
By Vladimir BasovFor Kitco News
Follow kitconewsnow
vbasov@kitco.comwww.kitco.com