TORONTO – Centerra Gold Inc. (TSX:CG) reported earnings results that sparkled Tuesday, saying second-quarter profits soared 131 per cent over last and revenue was up 60 per cent, with both figures beating expectations.
Toronto-based Centerra, which reports in U.S. dollars, said net income for the three months ended June 30 was US$71.1 million or 30 cents per share, compared with net earnings of US$30.7 million or 13 cents per share in the same 2010 period.
Revenue totalled US$243.8 million, up from $152.2 million.
Analysts polled by Thomson Reuters had predicted second-quarter earnings per share of 35 cents on US$227 million of revenues.
Consolidated gold production for the quarter totalled 155,166 ounces at a total cash cost of US$513 per ounce. That compared with 121,728 ounces at a total cash cost of US$616 per ounce produced in the corresponding quarter of 2010.
Centerra has said it expected to produce 600,000 to 650,000 ounces of gold in 2011 at an average total cash cost of $460 to $495 per ounce.
“We are maintaining our gold production and cost guidance for the year after another solid quarter of operating performance at our mines,” president and CEO Steve Lang said in a release.
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Land also took note of the company’s announcement earlier this month of a significant discovery in Eastern Mongolia at its Altan Tsagaan Ovoo property.
“We are very excited about this new discovery in what we view as a new emerging mineral district,” he said.
Centerra has increased its 2011 exploration budget by 18 per cent to $40 million, with a portion of that additional money going towards the discovery in Mongolia.
The company owns the Kumtor mine in the Kyrgyz Republic, the Boroo mine in Mongolia and interests in mines in Nevada, Turkey and Russia.
The production forecast assumed no production at the company’s Gatsuurt project in Mongolia, which is currently in development.
In February, Centerra increased its gold reserves by 1.7 million ounces to 8.2 million ounces of proven and probable open pit reserves and increased the expected life of the Kumtor mine to 2015.
Stock in Centerra, which announced its results after markets closed, closed down 30 cents at C$18.63 Thursday on the Toronto Stock Exchange.