Canada-based Centerra said September-quarter headline earnings nearly trebled year-on-year to US$205.7 million on 31% and 29% yoy increases in gold and silver prices, respectively, and the 51,120oz contribution from Oksut to gold sales.
"Our Oksut mine demonstrated the additional value it brings to our operating portfolio on all metrics: production, low cost and free cash flow generation," said Centerra CEO Scott Perry.
"Last year, we exclusively focused on construction here. We poured first gold in January, declared commercial production in Q2, and you can see here in Q3 generating $74 million of positive free cash flow, so the mine is ramping up very well and we're very pleased."
Centerra's total September-quarter production was 241,448oz gold and 23.3Mlb copper, at costs of US$386/oz and $0.95/lb. The all-in sustaining cost for gold with by-product credit was $528/oz.
Centerra confirmed its full-year production guidance at 740,000-820,000oz and lowered the AISC guidance, with by-product credit, to $740-$790/oz.
Kumtor, Mount Milligan and Oksut delivered free cash flow from operations of $157.3 million, $63.1 million and $74.1 million, respectively, taking quarterly free cash flows to $281 million. In the year to date, the company has generated FCF of $526.9 million.
As at quarter-end, Centerra had $484.2 million net cash.
Centerra also said Kumtor operations were unscathed by the political and social disruption in Kyrgyzstan following a disputed election. It also does not expect water shortages to interrupt Mount Milligan production this winter due to site water storage levels.
Centerra has declared a quarterly dividend of C5c per common share, taking the year-to-date capital returned to investors to $11.3 million.
Shares (TSX:CG) last traded at C$12.90, up 3%, to capitalise the company at $3.8 billion (US$2.9 billion).
