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Centerra Gold’s 1Q Earnings Triple From Year Ago

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Centerra Gold Inc. (TSX: CG) announces net earnings of $57 million, or 20 cents per share, on revenues of $285.3 million in the first quarter. This is a big jump from earnings of $18.1 million, or 8 cents per share, on revenues of $73.2 million for the same period in 2016. Officials say the improved results reflect higher gold ounces sold at Kumtor, the addition of Mount Milligan operations, higher average realized gold prices and lower operating costs, partially offset by higher share-based compensation charges. Centerra produced 172,644 ounces of gold, including 127,400 ounces at Kumtor (an increase of 47% from the same period of 2016) and 45,244 ounces at Mount Milligan. The company also mined 12.6 million pounds of copper in the January-March period. Centerra’s all-in sustaining costs on a by-product basis, which excludes revenue-based and income taxes, decreased to $756 per gold ounce from $1,015 in the year-ago period. “Over the quarter, we continued to see incremental improvements on a monthly basis at Mount Milligan in both increased mill throughput and recoveries,” says Scott Perry, chief executive officer. “During this period, the company also formed an operational review team to identify business process improvements opportunities at all our sites. An initial review at Kumtor and Mount Milligan identified several meaningful projects with short- to medium-term financial and operational benefits…. The company continues to advance its discussions with the government of the Kyrgyz Republic to resolve all outstanding issues affecting the Kumtor project in a manner that will be fair to all of its stakeholders.”

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