Centerra Gold Reports Record Fourth Quarter Production at Kumtor; Fourth Quarter Earnings of $0.20 per Share
Market Wire, February, 2009
Centerra Gold Inc.
2008 Year-end Reserve and Resource Summary
(as of December 31, 2008)
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Reserves(1) (Tonnes and ounces in thousands)(11)(12)
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Proven Probable
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Property Tonnes Grade Contained Tonnes Grade Contained
(g/t) Gold (oz) (g/t) Gold (oz)
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Kumtor(1)(6)(13) 3,412 1.4 150 32,008 3.8 3,875
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Boroo(8) 9,015 0.8 232 9,440 1.8 546
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Gatsuurt(1) - - - 9,101 3.4 1,005
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Total 12,427 1.0 382 50,549 3.3 5,426
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Reserves(1) (Tonnes and ounces in thousands)(11)(12)
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Total Proven and Probable Reserves
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Property Tonnes Grade Contained Centerra Mining
(g/t) Gold (oz) Share (oz)(3) Method(4)
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Kumtor(1)(6)(13) 35,420 3.5 4,025 4,025 OP
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Boroo(8) 18,455 1.3 778 778 OP
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Gatsuurt(1) 9,101 3.4 1,005 1,005 OP
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Total 62,976 2.9 5,808 5,808
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Measured and Indicated Resources(2) (Tonnes and ounces in thousands)(11)(12)
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Measured Indicated
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Property Tonnes Grade Contained Tonnes Grade Contained
(g/t) Gold (oz) (g/t) Gold (oz)
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Kumtor(5)(6)(13) 18,966 2.8 1,689 14,989 2.4 1,176
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Boroo(5)(8) 452 2.2 32 4,465 1.5 210
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Gatsuurt(9) - - - 6,238 3.0 607
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REN(10) - - - 2,991 12.7 1,220
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Total 19,418 2.8 1,721 28,682 3.5 3,213
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Measured and Indicated Resources(2) (Tonnes and ounces in thousands)(11)(12)
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Total Measured and Indicated Resources
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Property Tonnes Grade Contained Centerra Mining
(g/t) Gold (oz) Share (oz)(3) Method(4)
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Kumtor(5)(6)(13) 33,955 2.6 2,865 2,865 OP
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Boroo(5)(8) 4,916 1.5 242 242 OP
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Gatsuurt(9) 6,238 3.0 607 607 OP
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REN(10) 2,991 12.7 1,220 767 UG
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Total 48,100 3.2 4,934 4,481
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Inferred Resources(2) (Tonnes and ounces in thousands)(11)(12)
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Inferred
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Property Tonnes Grade Contained Centerra Mining
(g/t) Gold (oz) Share (oz)(3) Method(4)
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Kumtor(5)(6)(13) 600 1.8 34 34 OP
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Kumtor Stockwork
Underground(7) 2,089 11.3 757 757 UG
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Kumtor SB
Underground(7) 2,671 18.6 1,593 1,593 UG
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Boroo(5)(8) 7,323 1.0 233 233 OP
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Gatsuurt(9) 2,437 3.3 256 256 OP
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REN(10) 835 16.1 432 272 UG
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Total 15,995 6.4 3,305 3,145
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(1) The reserves have been estimated based on a gold price of $675 per
ounce.
(2) Mineral resources are in addition to reserves. Mineral resources that
are not mineral reserves do not have demonstrated economic viability
when calculated using mineral reserve assumptions.
(3) Centerra's equity interests are: Kumtor 100%, Gatsuurt 100%, Boroo 100%
and REN 63%.
(4) "OP" means open pit and "UG" means underground.
(5) Open pit resources occur outside the current ultimate pits which have
been designed using a gold price of $675 per ounce.
(6) The open pit reserves and resources at Kumtor are estimated based on
a cutoff grade of 1.0 gram of gold per tonne and includes the Central
Pit and the Southwest and Sarytor deposits.
(7) Underground resources occur below the Central pit and are estimated
based on a cutoff grade of 7.0 grams of gold per tonne.
(8) The reserves and resources at Boroo are estimated based 0.5 gram of
gold per tonne cutoff grade.
(9) The reserves and resources at Gatsuurt are estimated using either a
1.2 or 1.8 grams of gold per tonne cutoff grade depending on process
method.
(10) The resources at REN are estimated based on a cutoff grade of 8.0
grams of gold per tonne.
(11) A conversion factor of 31.10348 grams per ounce of gold is used in
the reserve and resource estimates.
(12) Numbers may not add up due to rounding.
(13) Kumtor reserves and resources include Sarytor reserves of 2.8 million
tonnes grading 3.4 g/t for 311,000 contained ounces, Sarytor and
Southwest indicated resources of 8.5 million tonnes grading 2.2 g/t
for 598,000 contained ounces and Sarytor inferred resources of 0.52
million tonnes grading 1.7 g/t for 29,000 contained ounces. The
mining licenses for these deposits were invalidated by the Bishkek
Inter District Court on June 17, 2008. That order is under appeal by
the Company. The Company believes that its current negotiations with
the Kyrgyz Republic are reasonably likely to lead to the resolution
of outstanding issues, and to the reinstatement of the Sarytor and
Southwest licenses. It therefore continues to include the Sarytor and
Southwest reserves and resources in this statement. See "Other
Corporate Developments - Kyrgyz Republic."
Financial and Operating Summary
Highlights
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Three Months Ended December 31 Year Ended December 31
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Financial and
Operating
Summary 2008 2007 % Change 2008 2007 % Change
---------- -------- -------- -------- -------- --------
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Revenue
- $ millions 241.3 89.4 170% 636.0 373.5 70%
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Cost of sales
- $ millions(1) 113.4 52.2 117% 332.0 207.4 60%
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Impairment charge
- $ millions 18.8 - 100% 18.8 - 100%
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Net earnings
before unusual
items - $
millions(2) 42.6 9.7 337% 97.1 39.1 148%
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Unusual items
- $ millions - 36.5 100% (37.7) 131.6 129%
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Net earnings
(loss) - $
millions 42.6 (26.7) - 134.8 (92.5) -
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Earnings (loss)
per common
share - $ basic
and diluted 0.20 (0.12) - 0.62 (0.43) -
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Cash provided
by operations -
$ millions 103.3 (3.2) - 166.3 41.3 303%
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Weighted average
common shares
outstanding
- basic
(thousands)(3) 216,318 216,318 0% 216,318 216,269 0%
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Weighted average
common shares
outstanding -
diluted
(thousands)(3) 218,166 216,318 1% 217,280 216,269 0%
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Gold sold - ounces 299,242 113,264 164% 745,730 540,645 38%
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Gold produced
- ounces 284,045 132,530 114% 748,888 555,410 35%
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Cost of sales
- $/oz sold 379 461 (18%) 445 384 16%
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Total cash cost(4)
- $/oz produced 379 585 (35%) 483 442 9%
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Total production
cost(4) - $/oz
produced 501 703 (29%) 592 532 11%
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Average realized
gold price
- $/oz 806 789 2% 853 691 23%
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(1) Cost of sales excludes regional office administration.
(2) Net earnings before unusual items is a non-GAAP measure and is
discussed under "Non-GAAP Measures".
(3) As of December 31, 2008, the Company had 216,318,188 common shares
issued and outstanding.
(4) Total cash cost and total production cost are non-GAAP measures and
are discussed under "Non-GAAP Measures".
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