Centerra Gold Records 2021 Net Loss After Kumtor Mine Seizure

Centerra Gold Inc. (TSX: CG) announced today its financial results for Q4 and full-year 2021. The mining firm saw quarterly revenue of US$251.1 million, up from both Q3 2021’s US$220.6 million and Q4 2020’s US$212.1 million.

Due to a $117.3 million impairment reversal at the Mount Milligan Mine, the company was able to end the quarter with an operating income of US$198.5 million, a huge jump from US$41.5 million in the year-ago period.

Recording a US$25.0 million gain on sale of its interest in the Greenstone partnership, the firm further recorded a quarterly net income of US$274.9 million–higher than its quarterly revenue. This is also higher than last quarter’s net income of US$27.6 million and last year’s net income of US$95.2 million.

This translates to US$0.92 earnings per diluted share.

For 2021, the company’s annual revenue came in at US$900.1 million, up from 2020’s US$721.3 million. Net earnings for the year from continuing operations ended at US$446.9 million, but due to the recognized US$926.4 million loss from the seizure of Kumtor mine in Kyrgyzstan, the mining company ended with a net loss of US$381.8 million. This compares to a net income of US$408.5 million in 2020.

Further down the financials, the firm generated an operating cash flow of US$61.8 million during the quarter, down from Q4 2020’s US$84.3 million. Free cash flow also dipped to US$38.7 million for the quarter from US$48.7 million last year.

The firm also ended the quarter with a cash and cash equivalents balance of US$947.2 million, putting the balance of the current assets at US$1.27 billion. Meanwhile, current liabilities came in at US$227.4 million.

In terms of production, the mining company produced approximately 308,000 gold ounces, meeting the upper end of its 2021 guidance of 270,000 – 310,000 ounces. For 2022, the firm estimates to produce an annual gold production of 400,000 – 450,000 ounces.

The earnings release came a few days after the Canadian miner announced that it would be acquiring Nevada-based Gemfield Resources, the owner of the Goldfield District project, for US$206.5 million.

Centerra Gold Inc. last traded at $11.59 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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