Friday, July 30, 2010

Centerra Gold (TSE:CG) Profitable Again

Centerra Gold (TSE:CG) has returned to profitability this quarter, as stability in Kyrgyzstan helped the gold miner to increase production, along with higher gold prices, helped them to a solid performance.

For the quarter, Centerra exceeded expectations, generating earnings of $29.8 million, or 13 cents a share. Last year in the same quarter the company had a loss of $79.6 million, or 36 cents. That was related to higher costs and diminished recovery of gold. Analysts had been looking for 5 cents a share on average.

Revenue increased to $152.2 million, a gain of 46 percent.

The flagship of Centerra is its Kumtor mine in Kyrgyzstan, and it operates a second mine in Mongolia - the Boroo mine, which is much smaller than Kumtor.

Gold production increased from 110,457 ounces in the second quarter of last year, to 121,728 ounces the last quarter.

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