Centerra Gold First Quarter Results, Net Earnings of $137 million or $0.58 per share
(This news release contains forward-looking information that is subject to the risk factors and assumptions set out on page 16 and in our Cautionary Note Regarding Forward-looking Information on page 23. All figures are in United States dollars.)
To view the Management�s Discussion and Analysis and the Financial Statements and Notes for the three months-ended March 31, 2011, please visit the following link: http://media3.marketwire.com/docs/CGfs_mda.pdf
Conversion to IFRS
As prescribed by the CICA Accounting Standards Board, the Company adopted the requirements of the International Financial Reporting Standards (�IFRS�) in its statements of account as of January 1, 2011, including the restatement of its opening balance sheet of January 1, 2010 and its first quarter 2010 comparatives. The restatement of the Company�s comparative balances from those previously reported under Canadian GAAP standards to those converted to IFRS standards are fully explained and reconciled in note 20 of the Company�s March 31, 2011 condensed consolidated interim financial statements as filed on SEDAR.
Toronto, ON - April 29, 2011 - Centerra Gold Inc. (TSX: CG) today reported net earnings of $136.6 million or $0.58 per share on revenues of $250.2 million compared to earnings of $123.9 million or $0.53 per common share based on revenues of $255.5 million in the same quarter last year.
Consolidated gold production for the first quarter of 2011 totaled 180,716 ounces at a total cash cost of $370 per ounce produced compared to 211,039 ounces at a total cash cost of $340 per ounce produced in the corresponding quarter of 2010. Cash provided by operations, net of working capital changes increased to $142.6 million compared to $82.4 million in the first quarter of 2010. (Total cash cost is a non-GAAP measure and is discussed under �Non-GAAP Measures� in this news release.)
First Quarter Highlights
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Consolidated gold production of 181,000 ounces at a total cash cost of $370 per ounce
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Cash provided by operations of $143 million
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2011 guidance remains unchanged
Commentary
Steve Lang, President and CEO of Centerra Gold said: �I am pleased with our first quarter operational and financial results. We are on track with our 2011 plan and continue to enjoy the benefits of the rising gold price.�
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Qualified Person
The new drilling results for Kumtor in this news release and on Centerra�s website and the other scientific and technical information in this news release were prepared in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 � Standards of Disclosure for Mineral Projects (�NI 43-101�) and were reviewed, verified and compiled by Centerra�s geological and mining staff under the supervision of Ian Atkinson, Certified Professional Geologist, Centerra�s Senior Vice-President, Global Exploration, who is the qualified person for the purpose of NI 43-101.
The Kumtor deposit is described in Centerra�s most recently filed Annual Information Form (the �AIF�) and a technical report dated March 22, 2011 prepared in accordance with NI 43-101. The AIF and technical report have been filed on SEDAR at www.sedar.com. The technical report describes the exploration history, geology and style of gold mineralization at the Kumtor deposit. Sample preparation, analytical techniques, laboratories used and quality assurance-quality control protocols used during the drilling programs at the Kumtor site are described in the technical report.
The Gatsuurt deposit is described in the Company�s most recently filed AIF and in a technical report dated May 9, 2006 prepared in accordance with NI 43-101. The AIF and technical report have been filed on SEDAR at www.sedar.com. The technical report describes the exploration history, geology and style of gold mineralization at the Gatsuurt deposit. Sample preparation, analytical techniques, laboratories used and quality assurance-quality control protocols used during the drilling programs at the Gatsuurt project are the same as, or similar to, those described in the technical report.
About Centerra
Centerra Gold Inc. is a gold mining company focused on operating, developing, exploring and acquiring gold properties primarily in Asia, the former Soviet Union and other emerging markets worldwide. Centerra is a leading North American-based gold producer and is the largest Western-based gold producer in Central Asia. Centerra�s shares trade on the Toronto Stock Exchange (TSX) under the symbol CG. The Company is headquartered in Toronto, Canada.
Conference Call
Centerra invites you to join its 2011 first quarter conference call on Monday, May 2, 2011 at 11:00 am Eastern Time. The call is open to all investors and the media. To join the call, please dial toll-free in North America (800) 920-9723 or International participants dial 1(212)231-2907. Alternatively, an audio feed web cast will be available on www.centerragold.com. A recording of the call will be available on www.centerragold.com shortly after the call and via telephone until midnight on Monday May 9, 2011 by calling (416) 626-4100 or (800) 558-5253 and using passcode 21518109.
Cautionary Note Regarding Forward-looking Information
This news release and the documents referred to herein contain statements which are not statements of current or historical facts and are �forward-looking information� within the meaning of applicable Canadian securities laws. Such forward-looking information involves risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Wherever possible, words such as �believe�, �expect�, �anticipate�, �contemplate�, �target�, �plan�, �intends�, �continue�, �budget�, �forecast�, �projections�, �estimate�, �may�, �will�, �schedule�, �potential�, �strategy� and other similar expressions have been used to identify forward-looking information. These forward-looking statements relate to, among other things, Centerra�s expectations regarding processing the remaining refractory in-situ ore at Boroo through a bio-oxidation facility, the impact of the Water and Forest Law on the Company�s Mongolian operations, and the timing of the discussion of the Water and Forest Law amendment in the Mongolian Parliament, the application of the Graduated Royalty Fee on its Boroo operations, future growth, results of operations (including, without limitation, future production and sales, and operating and capital expenditures), performance (both operational and financial), business and political environment and business prospects (including the timing and development of new deposits and the success of exploration activities), and opportunities and the discussion under the heading �Outlook for 2011�, including the forecast ed gold production and cash costs, exploration expenditures and exploration plans.
Material assumptions used to forecast production and costs include those described under the heading �Outlook for 2011�. Other factors that could cause actual results or events to differ materially from current expectations include, among other things: the sensitivity of the Company�s business to the volatility of gold prices; the political risks associated with the Company�s operations in the Kyrgyz Republic and Mongolia; the impact of changes in, or more oppressive enforcement of, laws, regulations and government practices in the jurisdictions in which the Company operates; the effect of the November 2010 amendments to the 2006 Mongolian Minerals Law on the royalty payments payable in connection with the Company�s Mongolian operations; the effect of the Water and Forest Law on the Company�s operations in Mongolia; the impact of continued scrutiny from Mongolian regulatory authoritie s; in the Kyrgyz Republic the impact of changes to, or the increased enforcement of, environmental laws and regulations relating to the Company�s operations; the Company�s ability to replace its reserves; ground movements at the Kumtor Mine; waste and ice movement at the Kumtor Mine; litigation; the accuracy of the Company�s reserves and resources estimate; the accuracy of the Company�s production and cost estimates; the success of the Company�s future exploration and development activities; competition for mineral acquisition opportunities; the adequacy of the Company�s insurance; environmental, health and safety risks; defects in title in connection with the Company�s properties; the impact of restrictive covenants in the Company�s revolving credit facility; the Company�s ability to successfully negotiate an investment agreement for the Gatsuurt development property to complete the development of the mine and the Company�s ability to obtain all necessary permits and commis sions needed to commence mining activity at the Gatsuurt development property; seismic activity in the vicinity of the Company�s operations in the Kyrgyz Republic and Mongolia; long lead times required for equipment and supplies given the remote location of the Company�s properties; illegal mining on the Company�s Mongolian properties; the Company�s ability to enforce its legal rights; the Company�s ability to accurately predict decommissioning and reclamation costs; the Company�s ability to obtain future financing; the impact of current global financial conditions; the impact of currency fluctuations; the effect of recent market conditions on the Company�s short-term investments; the Company�s ability to attract and retain qualified personnel; the Company�s ability to make payments including payments of principal and interest on the Company�s debt facilities; risks associated with the conduct of joint ventures; risks associated with the Company�s largest shareholder, the Ky rgyz government; and possible director conflicts of interest. There may be other factors that cause results, assumptions, performance, achievements, prospects or opportunities in future periods not to be as anticipated, estimated or intended. See �Risk Factors� in the Company�s most recently filed AIF available on SEDAR at www.sedar.com.
Furthermore, market price fluctuations in gold, as well as increased capital or production costs or reduced recovery rates may render ore reserves containing lower grades of mineralization uneconomic and may ultimately result in a restatement of reserves. The extent to which resources may ultimately be reclassified as proven or probable reserves is dependent upon the demonstration of their profitable recovery. Economic and technological factors which may change over time always influence the evaluation of reserves or resources. Centerra has not adjusted mineral resource figures in consideration of these risks and, therefore, Centerra can give no assurances that any mineral resource estimate will ultimately be reclassified as proven and probable reserves.
Centerra�s mineral reserve and mineral resource figures are estimates and Centerra can provide no assurances that the indicated levels of gold will be produced or that Centerra will receive the gold price assumed in determining its mineral reserves. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While Centerra believes that these mineral reserve and mineral resource estimates are well established and the best estimates of Centerra�s management, by their nature mineral reserve and mineral resource estimates are imprecise and depend, to a certain extent, upon analysis of drilling results and statistical inferences which may ultimately prove unreliable. If Centerra�s reserve or reserve estimates for its properties are inaccurate or are reduced in the future, this could have an adverse impact on Centerra�s future cash flows, earnings, results or operations and financial condition.
Centerra estimates the future mine life of its operations. Centerra can give no assurance that mine life estimates will be achieved. Failure to achieve these estimates could have an adverse impact on Centerra�s future cash flows, earnings, results of operations and financial condition.
There can be no assurances that forward-looking information and statements will prove to be accurate, as many factors and future events, both known and unknown could cause actual results, performance or achievements to vary or differ materially from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements contained in this news release. Accordingly, all such factors should be considered carefully when making decisions with respect to Centerra, and prospective investors should not place undue reliance on forward-looking information. Forward-looking information is as of April 29, 2011. Centerra assumes no obligation to update or revise forward-looking information to reflect changes in assumptions, changes in circumstances or any other events affecting such forward-looking information, except as required by applicable law. |
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