Vedanta to exclude base metals business from sweeping demerger
The group said it will consider the base metals business demerger at a later stage.
Investors rewarded Centerra Gold on Friday after the company reported it more than doubled net profits at $71.1 million on revenues of $243.8 million, up over 60% compared to the same quarter last year and announced a special and annual dividend payment of $99.3 million.
Centerra Gold, which owns gold properties in Kyrgyzstan and Mongolia and has earn-in agreements in Nevada and Turkey, added 1% by midday Friday bringing its 6-month gains to 16%. It was one of the few gainers among precious metals miners – sector heavyweights Goldcorp and Kinross lost over 1.5% while Barrick was also trading weaker despite a rampant gold price.
Press Release:
Centerra Gold Inc. (TSX: CG) today reported net earnings of $71.1 million or $0.30 per common share on revenues of $243.8 million compared to a net earnings of $30.7 million or $0.13 per common share based on revenues of $152.2 million in the same quarter last year.
Consolidated gold production for the second quarter of 2011 totaled 155,166 ounces at a total cash cost of $513 per ounce produced compared to 121,728 ounces at a total cash cost of $616 per ounce produced in the corresponding quarter of 2010. Cash provided by operations, net of working capital changes, was $118.5 million compared to $76.5 million in the second quarter of 2010. (Total cash cost is a non-GAAP measure and is discussed under “Non-GAAP Measures” in this news release.)
Second Quarter Highlights
Special and annual dividend payment of $99.3 million
Consolidated gold production of 155,166 ounces
Cash provided by operations of $118.5 million or $0.50 per share
Maintaining consolidated gold production and cost guidance for 2011
Exploration discovery in Eastern Mongolia, the ATO property, additional 35 drill holes completed in June and five holes were deepened.Commentary
Steve Lang, President and CEO of Centerra Gold stated, “We are maintaining our gold production and cost guidance for the year after another solid quarter of operating performance at our mines. During the quarter, Centerra’s Board declared a special dividend and increased our annual dividend based on our strong cash flow and the continuing high gold price. The Company’s cash balances are growing even after significant capital investment.”
“On July 11, we announced a significant discovery in Eastern Mongolia at our Altan Tsagaan Ovoo (ATO) property.We are very excited about this new discovery in what we view as a new emerging mineral district. The 35 additional drill holes completed in June continue to demonstrate high-grade mineralization from surface and that there is good continuity in the mineralization and also the drilling continues to expand Pipe #4. As indicated in our earlier news release our Board has approved a $6 million increase in the Company’s 2011 exploration budget from $34 million to $40 million, with $4 million of this additional funding allocated for further work on the ATO property,” he concluded.
