Centerra Gold Reports Strong Q1 Performance and Increased Revenue
Centerra Gold reported Q1 revenue of $305.8 million, a significant increase from $226.5 million in the same period last year. The company’s consolidated gold production for the quarter was 111,341 ounces, with 48,317 ounces from the Mount Milligan Mine and 63,024 ounces from the Oksut Mine. Copper production totaled 14.3 million pounds.
CEO Paul Tomory commented, "Centerra had a strong quarter of operating performance with production and costs outperforming our expectations. We are also focused on a preliminary economic assessment to evaluate the substantial mineral resources at the Mount Milligan mine to unlock value beyond its current 2035 mine life. At Oksut, we remain on track with elevated production in the first half of the year, in line with our guidance."
In Q1 2024, Centerra's cash and cash equivalents increased to $647.6 million, despite a $24.5 million payment related to an additional agreement with Royal Gold. The company was also active in share buybacks during late February and March, demonstrating its commitment to a disciplined capital allocation strategy.
Looking ahead to Q2, Centerra expects to make tax and annual royalty payments in Turkey totaling approximately $105 million, which will impact its cash balance. Despite this, Tomory stated, "We continue to believe that Centerra is well positioned to achieve its 2024 guidance, as we are delivering on our value maximizing strategy for the company's portfolio of assets."
