Centerra Q2 profits surge, dividend raised

Centerra Gold (TSX: CG) announced on Friday that the company recorded net income of $80.7 million or $0.27 per share for the second quarter of 2020, more than double the $33.4 million or $0.11 per share earned in the prior year.

Adjusted net earnings came to $97.8 million or $0.33 per share, compared with $33.4 million or $0.11 per share in Q2 2019.

Revenues rose to $412.7 million from $340.5 million as the company produced 219,692 ounces of gold and 19.1 million pounds of copper at costs of $410/oz gold and $1.20/lb copper sold.

The Q2 2020 results exceeded estimates, as Centerra was expected to post adjusted earnings of $0.22 per share on $368.9 million in revenues, according to financial markets data firm Refinitiv.

During the three-month period, Centerra generated $268.1 million in cash flow from operations, ending the quarter with $212 million in cash position and total liquidity of $712 million. The company received an additional cash boost at the end of May, when its Öksüt mine in Turkey reached commercial production, generating operating cash flow of $13.5 million and free cash flow of $5.0 million.

Production and cost guidance for the full year remains unchanged, and the company expects to release a technical report for the Kumtor mine in the Kyrgyz Republic this fall.

Concurrent with releasing its Q2 earnings, the Canadian-based miner is also raising its quarterly dividend by 25% to C$0.05 per common share.

The decision was made based on its strong operating performance and the higher gold price environment, the company said in a press release.