Gold miners like Goldcorp (NYSE-GG), Barrick Gold (NYSE-ABX), AngloGold Ashanti (NYSE-AU), Newmont Mining (NYSE-NEM), Yamana Gold (NYSE-AUY) and Centerra Gold (TSX:CG) have taken on a new practice of offering dividends to investors, attacting a more cautious, but long-term investor crowd to their folds.
As long as the underlying fundamentals remain in place, which are numerous, this should continue to be the practice of gold miners, especially for those looking for longer term investors, as well as attracting new shareholders to the stock.
Some of the fundamentals not going away any time soon are low interest rates, consequences of the policies of the Federal Reserve, sovereign debt crisis in Europe, inflation, unrest in the Middle East and the ongoing collapse of the U.S. dollar.
Obviously the income from gold miners aren't comparable to other equities, but add the growth potential to the mix and there is a lot to like about the right gold mining companies.
Showing posts with label Centerra Gold. Show all posts
Showing posts with label Centerra Gold. Show all posts
Tuesday, May 3, 2011
Centerra (CG) Paying Out Dividend of Almost $100 Million
Shareholders in Centerra Gold Inc. (TSX:CG) are going to get an overall payout of C$94.4 million in special and regular dividends, as the gold miner responds to growing interest of shareholders in gold miners boosting the amount of dividends they pay out in light of the soaring gold prices and profits.
Gold for June delivery on Monday increased 70 cents to settle at $1,557.10 an ounce at the Comex division of the New York Mercantile Exchange. After losing 2.5 percent to plunge to $1,540.30, the metal jumped back to $1,577.
Concerning paying out the hefty dividend and the desire to growth via acquisition, CEO Steve Lang said in a conference call with analysts Monday, "I think we can still do mergers and acquisitions. It's just finding a deal that makes sense."
Lang said the company was paying out the dividends of a total of 40 cents a share in response to investors wanting a bigger piece of the action.
Late Friday, Centerra reported a profit of $136.6 million for the first quarter, up from $123.9 million from the same quarter last year.
Centerra closed in Toronto Monday at $18.70, gaining $1.10, or 6.25 percent.
Gold for June delivery on Monday increased 70 cents to settle at $1,557.10 an ounce at the Comex division of the New York Mercantile Exchange. After losing 2.5 percent to plunge to $1,540.30, the metal jumped back to $1,577.
Concerning paying out the hefty dividend and the desire to growth via acquisition, CEO Steve Lang said in a conference call with analysts Monday, "I think we can still do mergers and acquisitions. It's just finding a deal that makes sense."
Lang said the company was paying out the dividends of a total of 40 cents a share in response to investors wanting a bigger piece of the action.
Late Friday, Centerra reported a profit of $136.6 million for the first quarter, up from $123.9 million from the same quarter last year.
Centerra closed in Toronto Monday at $18.70, gaining $1.10, or 6.25 percent.
Wednesday, April 20, 2011
Gold Breaks $1,500 as Centerra (TSE:CG), Alamos (TSE:AGI), Aura (TSE:ORA) and Gabriel (TSE:GBU) Close Mixed
After blowing past the $1,500 an ounce mark on Tuesday, gold prices settled just under the important psychological barrier at $1,495.10, as gold miners Centerra Gold (TSE:CG), Alamos Gold (TSE:AGI), Aura Minerals (TSE:ORA) and Gabriel Resources (TSE:GBU) closed mixed on the day.
Gold prices settled just below $1,500 an ounce after hitting that level earlier Tuesday's session, helped by a weaker dollar.
The gold contract for June delivery rose $2.20 to settle at $1,495.10 an ounce, shy of its all-time and daily high of $1,500.50 an ounce. Spot gold prices dropped 50 cents, to close at $1,495.90 an ounce.
Silver prices for May delivery climbed almost a dollar to settle at $43.91.
Most of this is based upon the collapsing U.S. dollar, which pulled back again today, the tightening in China, sovereign debt crisis in Europe, unrest in the Middle East, inflation concerns and consequences of the Japanese earthquake.
Add to that the warning from rating agency S&P that the U.S. could have its debt downgraded if it doesn't deal with the growing debt crisis and you have a weak macroeconomic outlook favoring gold and other commodities.
Gabriel Resources closed Tuesday in Toronto at $7.04, falling $0.02, or 0.28 percent. Aura Minerals ended the session at $17.68, level with Monday's close. Alamos Gold closed at $14.71, also level with the close on Monday. Centerra Gold closed the day at $17.49, gaining $0.395, or 2.28 percent.
Gold prices settled just below $1,500 an ounce after hitting that level earlier Tuesday's session, helped by a weaker dollar.
The gold contract for June delivery rose $2.20 to settle at $1,495.10 an ounce, shy of its all-time and daily high of $1,500.50 an ounce. Spot gold prices dropped 50 cents, to close at $1,495.90 an ounce.
Silver prices for May delivery climbed almost a dollar to settle at $43.91.
Most of this is based upon the collapsing U.S. dollar, which pulled back again today, the tightening in China, sovereign debt crisis in Europe, unrest in the Middle East, inflation concerns and consequences of the Japanese earthquake.
Add to that the warning from rating agency S&P that the U.S. could have its debt downgraded if it doesn't deal with the growing debt crisis and you have a weak macroeconomic outlook favoring gold and other commodities.
Gabriel Resources closed Tuesday in Toronto at $7.04, falling $0.02, or 0.28 percent. Aura Minerals ended the session at $17.68, level with Monday's close. Alamos Gold closed at $14.71, also level with the close on Monday. Centerra Gold closed the day at $17.49, gaining $0.395, or 2.28 percent.
Friday, April 15, 2011
Alamos (AGI) (GBU) (CG) Up, (ORA) Down as Gold, Silver Rise Again
Shares of most gold miners were up as gold soared again Thursday, with Aura Minerals (TSE:ORA), Gabriel Resources (TSE:GBU), Centerra Gold (TSE:CG) and Alamos Gold (TSE:AGI) trading up in Toronto, with the exception of Aura.
Gold for June delivery climbed $16.80 to settle at $1,472.40 an ounce on the Comex division of the New York Mercantile Exchange. Silver jumped $1.427, or 3.6 percent, to $41.664 an ounce.
The collapsing U.S. dollar, tightening in China, sovereign debt crisis in Europe, unrest in the Middle East, increasing inflation and consequences of the Japanese earthquake are just some of the negative catalysts affecting the price movements.
The U.S. dollar was close to session lows, resulting in a further impetus to gold. The U.S. currency traded as low as 74.617, its lowest level since December 2009.
In base metals trading, May copper dropped 1.05 cents to settle at $4.284 a pound, July platinum increased $18.40 to $1,795.60 an ounce and June palladium was up $8.95 to $774.25 an ounce.
Alamos Gold closed in Toronto Thursday at $14.25, gaining $0.62, or 4.55 percent. Centerra Gold closed at $17.41, up $0.27, or 1.58 percent. Gabriel Resources ended the session at $7.20, rising $0.28, or 4.05 percent. Aura Minerals closed down at $2.92, falling $0.08, or 2.67 percent.
Gold for June delivery climbed $16.80 to settle at $1,472.40 an ounce on the Comex division of the New York Mercantile Exchange. Silver jumped $1.427, or 3.6 percent, to $41.664 an ounce.
The collapsing U.S. dollar, tightening in China, sovereign debt crisis in Europe, unrest in the Middle East, increasing inflation and consequences of the Japanese earthquake are just some of the negative catalysts affecting the price movements.
The U.S. dollar was close to session lows, resulting in a further impetus to gold. The U.S. currency traded as low as 74.617, its lowest level since December 2009.
In base metals trading, May copper dropped 1.05 cents to settle at $4.284 a pound, July platinum increased $18.40 to $1,795.60 an ounce and June palladium was up $8.95 to $774.25 an ounce.
Alamos Gold closed in Toronto Thursday at $14.25, gaining $0.62, or 4.55 percent. Centerra Gold closed at $17.41, up $0.27, or 1.58 percent. Gabriel Resources ended the session at $7.20, rising $0.28, or 4.05 percent. Aura Minerals closed down at $2.92, falling $0.08, or 2.67 percent.
Monday, January 10, 2011
Centerra Gold (TSE:CG) Meets Gold Production Goal for 2010
Centerra Gold (TSE:CG) announced they reached their guidance production goal of 2010, reaching 678,941 ounces for the year.
Concerns over the 10-day stoppage at its flagship Kumtor mine created uncertainty as to whether or not the guidance goal would be reached.
Other challenges in meeting guidance were the permitting delays in Mongolia and the uprising in Kyrgyz.
Total production at Kumtor were 567,802 ounces of gold in 2010. The Boroo mine in Mongolia reached production of 111,139 ounces of gold produced.
Guidance from Centerra for 2011 is from 600,000 to 650,000 ounces of gold total to be mined. Kumtor is projected to account for 550,000 ounces to 600,000 ounces.
Boroo estimates are for 50,000 ounces, assuming it is mined at all. Permitting issues are behind the uncertainty there.
Centerra said they're setting aside $213 million for capex in 2011, with $179 million going toward acquisition of hauling equipment at its Kumtor project.
The other $34 million is allocated for exploration.
Centerra closed in Toronto Friday at $18.55, up $0.02, or 0.11 percent.
Concerns over the 10-day stoppage at its flagship Kumtor mine created uncertainty as to whether or not the guidance goal would be reached.
Other challenges in meeting guidance were the permitting delays in Mongolia and the uprising in Kyrgyz.
Total production at Kumtor were 567,802 ounces of gold in 2010. The Boroo mine in Mongolia reached production of 111,139 ounces of gold produced.
Guidance from Centerra for 2011 is from 600,000 to 650,000 ounces of gold total to be mined. Kumtor is projected to account for 550,000 ounces to 600,000 ounces.
Boroo estimates are for 50,000 ounces, assuming it is mined at all. Permitting issues are behind the uncertainty there.
Centerra said they're setting aside $213 million for capex in 2011, with $179 million going toward acquisition of hauling equipment at its Kumtor project.
The other $34 million is allocated for exploration.
Centerra closed in Toronto Friday at $18.55, up $0.02, or 0.11 percent.
Wednesday, November 17, 2010
Centerra Gold (TSE:CG) Closes on $150 Million Revolving Credit Facility with EBRD
Centerra Gold Inc. (TSE:CG) said they closed on a three-year revolving credit facility with with the European Bank for Reconstruction and Development, or EBRD, which is the only lender in the deal.
Any use of the Facility will incur an interest rate of LIBOR plus 2.9 percent for the loan.
According to Centerra, the Facility will be used for "investments and acquisitions and capital expenditures to finance the development of the Company’s existing properties in the Kyrgyz Republic and Mongolia, and for future investments and acquisitions in other EBRD countries of operation."
"We are very pleased to enter into this facility with EBRD. While Centerra has a strong balance sheet and we generate significant operating cash flow, we feel it is important to have the added financial flexibility which a corporate revolving credit facility gives us. Our relationship with EBRD goes back some 15 years and we are delighted to continue to work with them to help finance development in the regions we operate including further investment in the Kumtor mine together with its underground development," said President and CEO of Centerra, Stephen A. Lang.
Centerra also announced on Monday that they completed $2.5 million in expenditures on the Kara Beldyr property.
After capex, Centerra is now a 50 percent owner in the project, which is located in Tyva Republic, Russia. Their partner in the joint venture is Central Asia Gold AB, Sweden.
Findings from the exploration were positive, and have resulted in the decision by Centerra to increase their stake in the venture to 70 percent, which will require an additional expenditure of $4 million over the next two years.
Any use of the Facility will incur an interest rate of LIBOR plus 2.9 percent for the loan.
According to Centerra, the Facility will be used for "investments and acquisitions and capital expenditures to finance the development of the Company’s existing properties in the Kyrgyz Republic and Mongolia, and for future investments and acquisitions in other EBRD countries of operation."
"We are very pleased to enter into this facility with EBRD. While Centerra has a strong balance sheet and we generate significant operating cash flow, we feel it is important to have the added financial flexibility which a corporate revolving credit facility gives us. Our relationship with EBRD goes back some 15 years and we are delighted to continue to work with them to help finance development in the regions we operate including further investment in the Kumtor mine together with its underground development," said President and CEO of Centerra, Stephen A. Lang.
Centerra also announced on Monday that they completed $2.5 million in expenditures on the Kara Beldyr property.
After capex, Centerra is now a 50 percent owner in the project, which is located in Tyva Republic, Russia. Their partner in the joint venture is Central Asia Gold AB, Sweden.
Findings from the exploration were positive, and have resulted in the decision by Centerra to increase their stake in the venture to 70 percent, which will require an additional expenditure of $4 million over the next two years.
Tuesday, August 3, 2010
Centerra (TSE:CG), Alamos (TSE:AGI), and IAMGOLD (NYSE:IAG) Up with Gold Price, Newmont (NYSE:NEM) Down
Continuing its incremental climb up, gold prices continue to rise today, ready to be in the positive for the fifth straight trading day. Centerra Gold (TSE:CG), Alamos Gold (TSE:AGI), and IAMGOLD Corporation (NYSE:IAG) all moved up, while gold major Newmont Mining (NYSE:NEM) was slightly down or around level throughout the day.
Of these four gold miners, IAMGOLD Corporation has been the best performer of the day, reaching $16.08, a gain of $0.50, or 3.21 percent at 3:44 PM EDT.
Centerra Gold wasn't far behind IAMGOLD, coming in at $13.33, a gain of $0.36, or 2.78 percent. Centerra was back in the black in the last quarter, returning to a profit.
Alamos Gold rose to $15.55, gaining $0.08, or 0.52 percent.
Newmont was down to $55.49, falling $0.11, 0.20 percent at 3:49 PM EDT. That seems to be because investors are looking for smaller gold miners at this time, although the majors have been doing pretty well lately.
Of these four gold miners, IAMGOLD Corporation has been the best performer of the day, reaching $16.08, a gain of $0.50, or 3.21 percent at 3:44 PM EDT.
Centerra Gold wasn't far behind IAMGOLD, coming in at $13.33, a gain of $0.36, or 2.78 percent. Centerra was back in the black in the last quarter, returning to a profit.
Alamos Gold rose to $15.55, gaining $0.08, or 0.52 percent.
Newmont was down to $55.49, falling $0.11, 0.20 percent at 3:49 PM EDT. That seems to be because investors are looking for smaller gold miners at this time, although the majors have been doing pretty well lately.
Friday, July 30, 2010
Centerra Gold (TSE:CG) Paying First Dividend in its History
With attention being fixated on gold and gold mining companies, a number of firms have made changes to attract investors and gravitate toward being run like a company people understand.
Centerra Gold (NYSE:CG) has responded in that regard by announcing their first dividend payout in the history of the company,.
Starting on September 1, shareholders will receive a dividend of 6 Canadian cents a share, payable on September 8.
This comes off a return to profitability by the company, which generated profits of $29.8 million, or 13 cents a share for its latest quarter. That is in contrast to the loss last year of $79.6 million, or 26 cents a share, last year in the same quarter.
That exceeded analysts' expectations of 5 cents a share.
Centerra Gold (NYSE:CG) has responded in that regard by announcing their first dividend payout in the history of the company,.
Starting on September 1, shareholders will receive a dividend of 6 Canadian cents a share, payable on September 8.
This comes off a return to profitability by the company, which generated profits of $29.8 million, or 13 cents a share for its latest quarter. That is in contrast to the loss last year of $79.6 million, or 26 cents a share, last year in the same quarter.
That exceeded analysts' expectations of 5 cents a share.
Centerra Gold (TSE:CG) Profitable Again
Centerra Gold (TSE:CG) has returned to profitability this quarter, as stability in Kyrgyzstan helped the gold miner to increase production, along with higher gold prices, helped them to a solid performance.
For the quarter, Centerra exceeded expectations, generating earnings of $29.8 million, or 13 cents a share. Last year in the same quarter the company had a loss of $79.6 million, or 36 cents. That was related to higher costs and diminished recovery of gold. Analysts had been looking for 5 cents a share on average.
Revenue increased to $152.2 million, a gain of 46 percent.
The flagship of Centerra is its Kumtor mine in Kyrgyzstan, and it operates a second mine in Mongolia - the Boroo mine, which is much smaller than Kumtor.
Gold production increased from 110,457 ounces in the second quarter of last year, to 121,728 ounces the last quarter.
For the quarter, Centerra exceeded expectations, generating earnings of $29.8 million, or 13 cents a share. Last year in the same quarter the company had a loss of $79.6 million, or 36 cents. That was related to higher costs and diminished recovery of gold. Analysts had been looking for 5 cents a share on average.
Revenue increased to $152.2 million, a gain of 46 percent.
The flagship of Centerra is its Kumtor mine in Kyrgyzstan, and it operates a second mine in Mongolia - the Boroo mine, which is much smaller than Kumtor.
Gold production increased from 110,457 ounces in the second quarter of last year, to 121,728 ounces the last quarter.
Monday, July 5, 2010
Centerra Gold (TSE:CG) Closes REN Deal with Barrick (NYSE:ABX)
Centerra Gold (TSE:CG) announced it has completed the sale of its 64 percent stake in the REN joint venture they had with Barrick Gold (NYSE:ABX) subsidiary Homestake Mining Company.
The 64 percent stake was sold by Centerra for $35.2 million.
Centerra was down in Toronto on Monday by $0.12, or 1.06 percent. The stock was trading at $11.24 as of 2:32 PM EDT.
Barrick was at $45.75, a $0.20 fall, or 0.44 percent as of 2:35 PM EDT in Toronto.
The 64 percent stake was sold by Centerra for $35.2 million.
Centerra was down in Toronto on Monday by $0.12, or 1.06 percent. The stock was trading at $11.24 as of 2:32 PM EDT.
Barrick was at $45.75, a $0.20 fall, or 0.44 percent as of 2:35 PM EDT in Toronto.
Saturday, June 12, 2010
Centerra (TSE:CG) CEO Reiterates Acquisition Plans
Centerra Gold Inc. (TSE:CG) CEO Stephen Lang reiterated his plans to grow the company primarily via acquisitions rather than organically, confirming again they've set aside $2.9 billion for that purpose over the next year.
Lang said, “We would be interested in something that is approximately our size. We are looking for potential acquisitions that are in the late stages of exploration."
They are also interested in gold miners in the early-stage of production.
Centerra is looking to pay in cash, stock or a combination of the two.
2010 has been a booming year for gold companies in merger and acquisitions, as a total of 212 have been announced so far, with many more expected to come through the pipeline, as gold prices continue to surge.
Lang said, “We would be interested in something that is approximately our size. We are looking for potential acquisitions that are in the late stages of exploration."
They are also interested in gold miners in the early-stage of production.
Centerra is looking to pay in cash, stock or a combination of the two.
2010 has been a booming year for gold companies in merger and acquisitions, as a total of 212 have been announced so far, with many more expected to come through the pipeline, as gold prices continue to surge.
Saturday, May 29, 2010
Centerra (TSE:CG) Seeking Quality Acquisition
Strong gold prices has helped Centerra Gold (TSE:CG) reach the enviable position of being debt-free and flush with cash, which allows them to search out some quality acquisitions.
After the first quarter, Centerra had cash and short-term investments valued at $384.2 million, and adding to it on a consistent basis.
According to CEO Stephen Lang, he doesn't see it as absolutely vital to the company, but admits there would be value in adding a project which would bring them up to two million ounces a year.
“I don't think that with the projects we have in front of us that acquiring a third one is a necessity. However, we see value in getting up to a critical size of a million-and-a-half, two-million ounces a year,” Lang commented in an interview.
Lang added he would prefer a project in the later stages of exploration or early stage of development, and which would be located in Asia generally or central Asia more specifically.
After the first quarter, Centerra had cash and short-term investments valued at $384.2 million, and adding to it on a consistent basis.
According to CEO Stephen Lang, he doesn't see it as absolutely vital to the company, but admits there would be value in adding a project which would bring them up to two million ounces a year.
“I don't think that with the projects we have in front of us that acquiring a third one is a necessity. However, we see value in getting up to a critical size of a million-and-a-half, two-million ounces a year,” Lang commented in an interview.
Lang added he would prefer a project in the later stages of exploration or early stage of development, and which would be located in Asia generally or central Asia more specifically.
Thursday, April 8, 2010
Teck Resources (TSE:TCK.B), Centerra Gold (TSE:CG), Eldorado Gold (TSE:ELD) Down on Greek Worries
Teck Resources (TSE:TCK.B),Centerra Gold (TSE:CG) and Eldorado Gold (TSE:ELD) are all down today as concerns over the Greek debt crisis continues to be a major factor in the markets.
Centerrra Gold has the added burden of violence and geo-political problems in Kyrgyzstan, where their flagship mine - Kumtor is located.
This is going to continue to be the story until the Greek crisis resolves itself one way or the other, and will also including lingering doubts about a number of other nations in the European Union.
We'll continue to see gold and the U.S. dollar and yen be choice people go to for safety, and the new realities have investors going back and forth between them.
Gold has rebounded from earlier in the day, and has gained to reach past the $1,150 mark again, which it continues to flirt with.
Centerrra Gold has the added burden of violence and geo-political problems in Kyrgyzstan, where their flagship mine - Kumtor is located.
This is going to continue to be the story until the Greek crisis resolves itself one way or the other, and will also including lingering doubts about a number of other nations in the European Union.
We'll continue to see gold and the U.S. dollar and yen be choice people go to for safety, and the new realities have investors going back and forth between them.
Gold has rebounded from earlier in the day, and has gained to reach past the $1,150 mark again, which it continues to flirt with.
Saturday, March 22, 2008
Centerra Gold CEO Leonard Homeniuk sells 60% of Shares
While Centerra Gold (TSX:CG) CEO Leonard Homeniuk says the reason he sold his shares in the company were for financial reasons, the plunge in gold prices, along with the drop in the stock prices, had to be part of the reason for the sell off as well.
Homeniuk sold 60 percent of his shares in the company, which equaled almost $6.9 million. His reasons stated were for add more diversity to his portfolio, as well as finanicial planning.
The stock shares were sold between March 11 and March 18 for prices ranging from $13.51 to $14.68. The close for the stock price at the end of the week was $12.34.
He was lucky in his timing, as the stock has consistently dropped over the last week, and the 478,700 shares he sold would have been worth a lot less than he got for them.
Even with selling the stocks, Homeniuk says that he believes the shares are still undervalued.
At this time Centerra has two mines in operation, the Kumtor Gold Mine in Kyrgyzstan and Boroo Gold Mine in Mongolia.
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