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Centerra Gold reports net earnings of $89.4 million in Q1 2022

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(Kitco News) - Centerra Gold (TSX: CG) announced Tuesday that net earnings of $89.4 million were recognized in the first quarter of 2022, compared to net earnings of $167.4 million in the first quarter of 2021.

The company explained that decrease in net earnings was primarily due to a $72.3 million gain recognized on the sale of the company’s interest in the Greenstone Gold Mines Partnership in the first quarter of 2021 and higher current income tax expense related to the Öksüt Mine in the first quarter of 2022.

The company added that adjusted net earnings of $56.4 million were recognized in the first quarter of 2022, compared to adjusted net earnings from continuing operations of $28.2 million in the first quarter of 2021.

The increase in adjusted net earnings was primarily due to an increase in ounces of gold sold at the Öksüt Mine and higher average realized gold, copper and molybdenum prices.

Free cash flow of $9.1 million was recognized in the first quarter of 2022, compared to free cash flow from continuing operations of $68.0 million in the first quarter of 2021. The decrease in free cash flow was primarily due to lower cash provided by operating activities.

Centerra said that, based on the company’s continued strong financial position, operating results and cash flows, its Board approved a quarterly dividend of CAD$0.07 per share on May 3, 2022 to shareholders of record on May 18, 2022.

President and CEO Scott Perry said, “We expect 2022 to be a transformative year for Centerra and we expect to see continued strong performance from our operating mines, advancement of the Goldfield Project, and meaningful generation of cash provided by operating activities and free cash flow.”

Centerra Gold is a Canadian-based mining company focused on operating, developing, exploring and acquiring gold and copper properties in North America, Turkey, and other markets worldwide.

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