Year-end financials from Centerra Gold (CG-T) showed substantial earnings and cash-flow gains over 2004, thanks to the company’s increased ownership of the Kumtor gold mine in Kyrgyzstan and the start of production from the Boroo mine in Mongolia.
In 2005 Centerra turned a US$50.6 million net profit, equal to US91 per share, on revenue of US$247.1 million. In 2004, Centerra was part of Cameco (CCO-T) for the first half of the year, but pro forma the company earned US$9.1 million on revenue of US$82 million.
The 2004 figures included a one-third share of production from Kumtor up to June 22 of that year, when the government of Kyrgyzstan converted its two-thirds share in the mine to a shareholding in Centerra. Boroo, which began commercial production in March 2004, contributed its first full year of production in 2005.
Centerra’s cash flow increased to US$88.5 million in 2005 from US$24.4 million in the year before.
Attributable production was considerably greater in 2005, thanks to the incorporation of all the Kumtor production and to the full year from Boroo. In 2005 the company produced 641,000 oz., up from 226,000 oz. in 2004, and sold 619,000 oz., up from 235,000 oz.
Higher gold prices also helped, as the company realized an average US$397 per oz., up from US$334 in 2004. It also closed the spread between its realization and the spot price to US$12, down from a difference of US$29 the previous year.
Total cash costs, company-wide, fell to US$189 per oz. from US$191.
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