Centerra (CG) Paying Out Dividend of Almost $100 Million

Shareholders in Centerra Gold Inc. (TSX:CG) are going to get an overall payout of C$94.4 million in special and regular dividends, as the gold miner responds to growing interest of shareholders in gold miners boosting the amount of dividends they pay out in light of the soaring gold prices and profits.

Gold for June delivery on Monday increased 70 cents to settle at $1,557.10 an ounce at the Comex division of the New York Mercantile Exchange. After losing 2.5 percent to plunge to $1,540.30, the metal jumped back to $1,577.

Concerning paying out the hefty dividend and the desire to growth via acquisition, CEO Steve Lang said in a conference call with analysts Monday, "I think we can still do mergers and acquisitions. It's just finding a deal that makes sense."

Lang said the company was paying out the dividends of a total of 40 cents a share in response to investors wanting a bigger piece of the action.

Late Friday, Centerra reported a profit of $136.6 million for the first quarter, up from $123.9 million from the same quarter last year.

Centerra closed in Toronto Monday at $18.70, gaining $1.10, or 6.25 percent.