CA - Centerra Gold posts wider than expected loss guides for lower production

2023-05-15 10:57:05 ET

Centerra Gold ( NYSE: CGAU ) -12.5% in Monday's trading after reporting a larger than expected Q1 adjusted loss and saying it now forecasts full-year gold production near the low end of guidance.

Centerra ( CGAU ) swung to a Q1 net loss of $73.5M, or $0.34/share, from a year-earlier profit of $89.4M, or a loss of $0.30/share, while revenues fell 23% Y/Y to $226M, as sales volumes fell and costs rose.

Q1 gold sales volume plunged 59% to 39K oz from 94.9K oz in the year-earlier quarter, and copper sales volume sank 21% Y/Y to 15.3M lbs from 19.4M lbs, partly the result of lower plant throughput caused by a planned mill maintenance shutdown at the Mount Milligan mine and handling issues during the winter months.

Also during the quarter, Centerra ( CGAU ) suspended gold dore bar production at its Oksut mine in Turkey after mercury was detected in the gold room at the recovery plant; the company said it continues to work with authorities to obtain the required approvals to restart operations.

For FY 2023, the company said it now expects gold production will come in near the low end of its target while copper output is tracking toward the midpoint, after saying in February it expected full-year gold production of 160K-170K oz and copper output of 60M-70M lbs, after Mount Milligan produced 189K gold oz and 74M copper lbs in 2022.

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