Centerra Gold announces $1 billion revenue milestone

Canadian gold company Centerra Gold’s shares were up over 2% this morning as the company reported a $1 billion revenue milestone in 2011.

Centerra’s (TSX:CG) fourth quarter 2011 net earnings were of $79.4 million or $0.34 per common share based on revenues of $248.0 million, compared to net earnings of $150.8 million or $0.64 per common share on revenues of $322.3 million in the same quarter of 2010 due to lower gold sales in the period.

Fourth quarter of 2010 results reflect the back-ended production profile at Kumtor, which accounted for 40% of Kumtor's annual gold production and 37% of its gold sales for the year.

Gold production was within the company's guidance at 642,380 ounces, but dropped 5% from the 678,941 ounces mined in 2010. This decline was attributed to lower production at Boroo, which plunged 47% "as a result of lower head grades and recoveries processed through the mill. Mining ceased at Boroo last year, but resumed in January 2012.

Consolidated gold production for the fourth quarter of 2011 totalled 151,562 ounces at a total cash cost of $603 per ounce produced compared to 249,866 ounces at a total cash cost of $308 per ounce produced in the corresponding quarter of 2010. During the fourth quarter 2011, production was lower at both Boroo and Kumtor as planned, when compared to the fourth quarter of 2010.

"For 2012, consolidated gold production is expected to be in the 630,000 to 685,000 ounce range and total cash costs are expected in the $465 to $500 per ounce range," said Centerra President and CEO Stephen Lang.

To view the 2011 Management's Discussion and Analysis and the Audited Financial Statements and Notes for the year-ended December 31, 2011, please follow this link.