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Centerra Gold posts net loss of $852 million in Q2 on Kumtor seizure

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(Kitco News) - Centerra Gold (TSX: CG and NYSE: CGAU) today reported that a net loss of $851.7 million was recognized by the company in the second quarter of 2021, compared to net earnings of $80.7 million in the second quarter of 2020.

In its statement, the company said that net loss and net earnings figures for the second quarter of 2021 include the results from the Kumtor mine in Kyrgyzstan which is accounted for as a discontinued operation. The change was primarily due to the loss on the change of control of the Kumtor mine of $926.4 million, partially offset by an increase in net earnings from continuing operations between periods.

Centerra added that net earnings from continuing operations of $33.0 million were recognized in the second quarter of 2021, compared to net loss from continuing operations of $39.4 million in the second quarter of 2020. The company’s results from continuing operations include the Mount Milligan mine, the Öksüt mine and the Molybdenum Business Unit.

The company’s adjusted net earnings in the second quarter of 2021 were $78.3 million, compared to adjusted net earnings in the second quarter of 2020 of $97.8 million.

As a result of the seizure of the Kumtor mine by the Kyrgyz Republic Government on May 15, 2021, and the continuing actions by the Kyrgyz Republic, the company said it has updated its consolidated full-year 2021 guidance and three-year outlook to exclude the Kumtor mine. Highlights of the company’s revised consolidated guidance include 2021 gold production of 270,000 - 310,000 ounces and copper production of 70 - 80 million pounds.

Additionally, Centerra announced that its Board of Directors has approved a quarterly dividend of C$0.07 per common share – approximately C$20.8 million or US$16.5 million. The quarterly dividend is payable on September 8, 2021, to shareholders of record on August 25, 2021.

Centerra is a Canadian-based gold mining company focused on operating, developing, exploring and acquiring gold properties worldwide. Centerra’s principal continuing operations are the Mount Milligan gold-copper mine located in British Columbia, Canada, and the Öksüt gold mine located in Turkey. As a result of the seizure of the Kumtor mine, the carrying value of the net assets of the mine has been derecognized from the company’s balance sheet.

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