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Centerra Gold boosts free cash flow 1,640%, declares dividend

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(Kitco News) - Centerra Gold (TSX: CG) today reported that the company’s full-year 2020 net earnings were $408.5 million and adjusted net earnings were $461.9 million in 2020, compared to a net loss of $93.5 million and adjusted net earnings of $181.5 million in 2019.

The company said that the increase in adjusted net earnings was due to contributions from the new Öksüt mine, 28% higher realized gold prices, increased copper pounds sold at Mount Milligan and lower production costs at both Kumtor and Mount Milligan. This was partially offset by lower gold ounces sold and an increase in depreciation costs at the Kumtor and Mount Milligan mines.

Free cash flow of $603.8 million and adjusted free cash flow of $608.8 million was recognized in 2020 compared to free cash flow of $34.7 million and adjusted free cash flow of $97.3 million in 2019. The increase in adjusted free cash flow was due to higher cash provided by operations and lower non-sustaining capital expenditures as construction at the Öksüt mine was completed, partially offset by an increase in capitalized stripping at the Kumtor mine.

Centerra Gold also announced that its Board has approved a quarterly dividend of C$0.05 per common share – approximately C$14.8 million or US$11.7 million. The quarterly dividend is payable on April 6, 2021 to shareholders of record on March 16, 2021.

In 2021, the company expects to produce between 740,000 - 820,000 ounces of gold and between 70 - 80 million pounds of copper.

Centerra Gold is a Canadian-based gold mining company focused on operating, developing, exploring and acquiring gold properties in North America, Asia and other markets worldwide and is one of the largest Western-based gold producers in Central Asia. Centerra operates three mines, the Kumtor mine in the Kyrgyz Republic, the Mount Milligan mine in British Columbia, Canada and the Öksüt mine in Turkey.

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