TORONTO, ONTARIO -- (Marketwire) -- 02/20/13 -- Centerra Gold Inc. (TSX: CG) -
This news release contains forward-looking information that is subject to the risk factors and assumptions set out on page 24 and in our Cautionary Note Regarding Forward-looking Information on page 34. It should be read in conjunction with the Company's audited financial statements and notes thereto for the year ended December 31, 2012 and the associated Management's Discussion and Analysis. The consolidated financial statements of Centerra are prepared in accordance with International Accounting Standard 34, as issued by the International Accounting Standards Board and the Company's accounting policies as described in note 3 of its annual consolidated financial statements for the year ended December 31, 2012.
All figures are in United States dollars.
To view the 2012 Management's Discussion and Analysis and the Audited Financial Statements and Notes for the year-ended December 31, 2012, please visit the following link: http://media3.marketwire.com/docs/CG2012FSMDAQ4.pdf.
Centerra Gold Inc. today reported adjusted net earnings of $112.7 million or $0.48 per share in the fourth quarter of 2012 before recognizing a one-time accounting charge of $180.7 million for the de-recognition of the underground assets at Kumtor, which results in the Company recording a net loss of $68.0 million or $0.29 per share for the period. This compares to net earnings of $79.4 million or $0.34 per common share in the same quarter of 2011.
2012 Fourth Quarter Highlights
-- Increased reserves at Kumtor by 58% with the new KS-13 life-of-mine plan.-- Replaced reserves, proven and probable gold reserves now total 11.1 million ounces of contained gold.-- Agreed to acquire the remaining 30% interest for 100% ownership of the Oksut gold project in Turkey, which subsequently closed in January 2013.-- Reported initial resource estimate on the Oksut gold project of indicated resources of 682,000 contained ounces and inferred resources of 477,000 ounces of contained gold.-- Started up the heap leach operation at the Boroo mine.-- Signed a new two year Collective Bargaining Agreement at the Kumtor mine. The new Agreement expires at the end of December 2014.-- Produced 219,316 ounces of gold in the quarter, including 189,438 ounces at Kumtor and 29,878 ounces at Boroo.-- Increased revenues to $368.5 million compared to $248.0 million in the same quarter of 2011.-- Cash provided by operations was $208.2 million compared to $60.3 million in the fourth quarter of 2011.-- Reported all-in cash cost (pre-tax) for the quarter of $839 per ounce compared to $934 for the 2011 fourth quarter.
For the full year, the Company reported an adjusted net loss of $3.3 million or $0.01 per share before recognizing a one-time accounting charge of $180.7 million for the de-recognition of the underground assets at Kumtor, which results in the Company recording a net loss of $184.0 million or $0.78 per share, compared to net earnings of $370.9 million or $1.57 per share in 2011. The 2012 results reflects the charge for the de-recognition of the underground assets at Kumtor and the negative impact on production resulting from the unexpected acceleration of ice and waste in the high movement area above the SB Zone which made it unsafe to mine in this area and required a revision to the production plan for 2012 delaying the release of ore.