CGAU - Centerra Gold -20% after Q2 miss cut to full-year production guidance
Centerra Gold ( NYSE: CGAU ) -20.6% in Wednesday's trading after reporting a larger than expected Q2 loss and a 17% Y/Y decline in revenues while also cutting its gold production guidance for the year.
Centerra ( CGAU ) cited suspended gold operations at the Oksut mine in Turkey, reduced gold and copper sales at Mount Milligan in British Columbia, and lower average realized copper prices for the drop in revenues.
Q2 gold production totaled 42,728 oz, solely from Mount Milligan, while activities at Oksut resulted in 58,469 recoverable oz stored as gold-in-carbon inventory at the end of June.
The miner said it now sees FY 2022 consolidated gold production of 245K-265K oz, compared to guidance issued last December for 400K-450 oz, and it withdrew guidance for 2023.
Centerra ( CGAU ) suspended gold dore bar production at the Oksut mine in March after detecting mercury, and it expects the refinery will be retrofitted later this year.
The company also suspended stacking and leaching operations at Oksut this month while it pursues an amendment to its environmental impact assessment, and said it may suspend mining and crushing activities.
Centerra Gold ( CGAU ) shares have lost 41% YTD and 32% during the past year .
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Centerra Gold -20% after Q2 miss, cut to full-year production guidance