Centerra Gold's Kumtor mine, Kyrgyzstan
Photo by: Reuters
VANCOUVER (miningweekly.com) – Midtier miner Centerra Gold's TSX-listed equity gained more than 8% on Friday after it reported much stronger-than-expected earnings and revenues for the three months ended December 31.
The Toronto-headquartered company reported adjusted profit, which typically excludes special items in a given period, of $108.7-million, or $0.37 a share, which reflected a 58.5% improvement on the headline profit of $68.6-million, or $0.24 a share, in the comparable period a year earlier.
The results comfortably beat average analyst forecasts calling for earnings of $0.25 a share, on revenues of $278-million.
Net earnings came in at $130-million, or $0.45 a share, on revenues of $358.2-million in the fourth quarter, compared with net earnings of $63.6-million, or $0.23 a share, on revenues of $305.7-million in the same period of 2016.
Centerra booked a tax benefit of $21.3-million during the quarter following changes in US taxation.
For the full year, Centerra reported net earnings of $209.5-million, or $0.72 a share, derived from revenues of $1.2-billion, reflecting a 38% year-over-year improvement from the $151.5-million, or $0.60 a share, reported in 2016, on revenues of $757.7-million. Centerra attributed the improved performance to a full year of operations at the Mount Milligan copper/gold mine, in British Columbia, and increased output at its flagship Kumtor gold mine, in the Kyrgyz Republic.
Headline earnings for 2017 were $281-million, or $0.96 a share, compared with $160.9-million, or $0.64 a share, in the comparative period of 2016.
"I am pleased to report that we met our overall gold production guidance, producing 785 316 oz at an all-in sustaining cost (AISC) on a by-product basis of $688/oz sold, beating the low end of our AISC guidance for the year. For 2018, we are estimating consolidated gold production to be in the range of 645 000 oz to 715 000 oz. Additionally, we are expecting 47-million to 52-million pounds of payable copper production from Mount Milligan for the year," president and CEO Scott Perry said in a statement.
Centerra's TSX-listed equity rose as much as 8.3% on Friday to an intraday high of C$6.89 apiece.