Centerra Gold Inc. Announces Quarterly Dividend, Payable on March 19, 2015
Feb 20 15
Centerra Gold Inc. announced that its Board of Directors has authorized a quarterly dividend of CAD 0.04 per common share (approximately USD 7.6 million at the current exchange rate). The dividend of CAD 0.04 per common share is payable on March 19, 2015 to shareholders of record on March 5, 2015. The ex-dividend date will be March 3, 2015.
Centerra Gold Inc. Reports Unaudited Consolidated Earnings and Production Results for the Fourth Quarter and Year Ended December 31, 2014; Provides Production and Capital Expenditure Guidance for the Full Year 2015; Announces Impairment Charges for the Fourth Quarter Ended December 31, 2014
Feb 20 15
Centerra Gold Inc. reported unaudited consolidated earnings and production results for the fourth quarter and year ended December 31, 2014. Revenue from gold sales was $360.073 million, compared to $468.918 million in the same period of 2013. Loss from operations were $9.135 million, compared to earnings of $109.358 million in the same period of 2013. Loss before income taxes were $12.572 million, compared to earnings of $107.597 million in the same period of 2013. Net loss and comprehensive loss was $11.314 million or $0.05 per diluted share, compared to profit of $106.553 million or $0.44 per diluted share in the same period of 2013. Cash provided by operations was $217.011 million or $0.92 a share in the quarter compared to $359.546 million in the same period of 2013. The decrease reflects lower earnings in the fourth quarter 2014 and a more significant reduction in working capital levels in the comparative quarter of 2013. Additions to property, plant and equipment were $53.034 million, compared to $85.956 million in the same period of 2013. Capital expenditures were $57.4 million which includes $13.4 million of sustaining capital, $11.5 million invested in growth capital mainly on infrastructure relocation and equipment component replacements and $32.5 million for capitalized stripping ($24.9 million cash).
For the year, revenue from gold sales was $763.345 million, compared to $944.373 million in the same period of 2013. Loss from operations were $35.386 million, compared to earnings of $179.386 million in the same period of 2013. Loss before income taxes were $41.532 million, compared to earnings of $170.829 million in the same period of 2013. Net loss and comprehensive loss was $44.109 million or $0.19 per diluted share, compared to profit of $157.676 million or $0.64 per diluted share in the same period of 2013. Cash provided by operations was $376.395 million compared to $483.913 million in the same period of 2013. Additions to property, plant and equipment were $276.285 million, compared to $308.682 million in the same period of 2013. The net loss in 2014 reflects a non-cash impairment charge of $111 million (or $0.47 per share (basic)) for goodwill related to the Kyrgyz CGU, fewer ounces produced and sold (ounces sold decreased 12% over 2013), lower realized gold prices ($1,241 per ounce vs. $1,355 per ounce) and higher share-based compensation, partially offset by lower cost and exploration spending. Capital expenditures were $351.2 million against $376.6 million a year ago.
For the quarter, the company reported gold produced of 301,236 ounces against 362,234 ounces for the same period a year ago. The company sold gold of 300,369 ounces against 368,954 ounces for the same period a year ago.
For the year, the company reported gold produced of 620,821 ounces against 690,720 ounces for the same period a year ago. The company sold gold of 615,234 ounces against 696,818 ounces for the same period a year ago.
For 2015, the company estimating consolidated gold production to be in the range of 480,000 to 535,000 ounces, no gold production from Gatsuurt has been included in this guidance.
The company announced $111 million noncash impairment charge for goodwill related to the Kyrgyz cash generating unit, primarily resulting from the decrease in reserves and resources at Kumtor.
In 2015, outlook for capital expenditures is $76 million, which includes $50 million of sustaining capital, but excludes capitalized stripping of $185 million. Growth capital is expected to be $26 million, which is all at Kumtor, primarily for the infrastructure relocation.
Centerra Gold and Premier Gold to Jointly Advance the Trans-Canada Property
Feb 5 15
Centerra Gold Inc. and Premier Gold Mines Limited announced that they have signed a definitive agreement to form a 50/50 partnership for the joint ownership and development of Premier's Trans-Canada Property including the Hardrock Gold Project located in the Geraldton-Beardmore Greenstone Belt in Ontario. Centerra and Premier have agreed to form a partnership to develop the Trans-Canada Property. Centerra will contribute up to CAD 300 million in cash to the partnership in accordance with the terms described below, while Premier will contribute all property, assets and rights it holds in respect of the Trans-Canada Property. Key terms of the agreements and the development strategy for Hardrock include: On closing, Premier, through a wholly-owned subsidiary, will contribute all property, assets and rights it holds in respect of the Trans-Canada Property to the partnership in consideration for its 50% interest in the partnership and Centerra will make an initial cash contribution to the partnership in the amount of CAD 85 million for its 50% limited partner interest which amount will be distributed to Premier on the closing date. Centerra has agreed to make capital contributions to the partnership in the aggregate amount of CAD 185 million (the Centerra Development Commitment) half of which is on behalf of Premier. A portion of these funds will initially be used to complete a comprehensive technical and economic feasibility study including an updated mineral resource calculation for the Hardrock Project at the Trans-Canada Property. Subject to the satisfaction of certain feasibility and project advancement criteria the remainder of the funds will be used towards the construction and development of the Hardrock Project. Premier will not be required to make any contributions to the partnership until Centerra has provided the full amount of the Centerra Development Commitment following which cash calls will be satisfied by each of Centerra and Premier on a 50/50 basis pursuant to approved annual programs and budgets. The partnership agreement contains customary dilution mechanisms for failures to meet cash calls and certain other events. Centerra has agreed to make an additional contingent capital contribution to the partnership not to exceed CAD 30 million based on the results of the updated mineral resource calculation in respect of the Trans-Canada Property which amount, if any, will be distributed to Premier. The partnership will be managed by a corporation (the Managing Partner), owned 50/50 by Centerra and Premier. Initially the board of directors of the Managing Partner will consist of four directors with two nominees from Centerra and two nominees from Premier. The board of directors of the Managing Partner will be responsible for, among other things, approving the partnership's annual programs and budgets. The transaction is expected to close on or about March 6, 2015, subject to the receipt of applicable regulatory approvals and the satisfaction of customary conditions precedent.