Centerra Gold
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Public (TSX: CG) | |
| Industry | Mining |
| Founded | 2004 |
| Headquarters | Toronto, Canada |
Key people |
Stephen Lang, Chair Scott G. Perry, President and CEO |
| Products | Gold |
| Revenue | US$ 1.2 billion (2017) |
| Website |
www |
Centerra Gold Inc. is a Canadian-based gold mining and exploration company engaged in the operation, exploration, development and acquisition of gold properties in North America, Asia and other markets worldwide and is one of the largest Western-based gold producers in Central Asia.
Shareholders
Centerra Gold Inc. is a publicly traded company. The Kyrgyz Republic, via Kyrgyzaltyn JSC, is Centerra's largest shareholder owning 77,401,766 common shares (2), or more than 26% of the total equity stake (3). The global investment management corporation, BlackRock, Inc., owns 36,604,246 shares, or 12.57%. America's largest investment management firm, VanEck Associates Corporation, the last of the three largest shareholders, owns 25,210,193 shares (8.65%).(4)
Operations
Centerra Gold Inc.'s major assets include the Kumtor Mine in the Kyrgyz Republic; the world class gold/copper Mount Milligan Mine in British Columbia, Canada; the Boroo Gold Mine in Mongolia, which is on care and maintenance, the Endako and Thompson Creek primary molybdenum mines in British Columbia, Canada and Idaho, United States, respectively, and the Langeloth Metallurgical Facility in Pennsylvania, USA. (5)
Kumtor is one of Central Asia's largest mountain open-pit gold mining sites located in Issyk-Kul province, Kyrgyzstan, which is about 350 km from Bishkek, 60 km south of Lake Issyk-Kul, and 60 km from the border with China. Located in Tian Shan mountains at more than 4,000 m (14,000 ft) above sea level, Kumtor is the second highest gold mining operation in the world after Yanacocha gold mine in Peru. Its gold deposits are estimated at 700 tonnes. (6)
Mount Milligan, an open-pit copper-gold mine, is located 90 miles northwest of Prince George, British Columbia, Canada. In October 2010, through the Terrane acquisition, Thompson Creek Metals obtained the Mount Milligan development project. On August 15, 2013, the initial feed to the concentrator started the operation of the mine. Thompson Creek Metals was acquired by Centerra Gold in July, 2016 and the acquisition closed October 2016. (7) (8)
Boroo is a gold mining site located 110 km west-northwest of Mongolia's capital Ulaanbaatar. It' was the first significant Western-based investment in Mongolia's industry ever made since 1979. (9) Between March 2004 and December 2015, the Boroo Mine produced approximately 1.8 million ounces of gold and is currently on care and maintenance waiting for the development of the near-by Gatsuurt project. (24) Some 35 km southeast of Boroo, lies the Gatsuurt gold-mining site, also owned by Centerra Gold. The bulk reserves are limited to two ore zones, Main and Central. (10)
The Endako mine is one of the largest molybdenum mines in North America. The mine is located in the Canadian province of British Columbia. (11) The mine is operated as a joint venture with Centerra Gold holding a 75% interest and Sojitz Corporation, a Japanese company, holding a 25% interest. (12) Centerra Gold through its wholly owned subsidiary Thompson Creek Metals also runs another large molybdenum mine, Thompson Creek, in Idaho, USA. Centerra Gold acquired Thompson Creek Metals in July, 2016, both of the molybdenum mines are currently on care and maintenance. Also, the company runs the Langeloth Metallurgical Facility, located 25 miles of Pittsburgh, Pennsylvania USA It is a world-class facility with a long history of producing high-quality metallurgical products used mainly in the steel and chemical industries. (13) Concentrate produced by Thompson Creek and Endako accounts for a significant portion of the feed provided for Langeloth operations. (14). Also, Thompson Creek Metals owns the Berg Property in British Columbia, Canada. (15) (7) (8)
The Öksüt Project is located in south-central Turkey, 295 km southeast of the capital city of Ankara. It is operated by Öksüt Madencilik, a 100% subsidiary of Centerra Gold. (16). The Öksüt Project was originally an exploration joint venture between Centerra and Stratex International Plc. (formed in 2009). In 2013, Centerra purchased Stratex's remaining interest in the Öksüt Project. (17) After receiving the final permits in 2018, Centerra Gold is currently constructing the Öksüt Gold Mine.
Towards the close of 2017, Centerra Gold acquired AuRico Metals and closed the transaction in January 2018. (18). AuRico Metals is developing the Kemess property in British Columbia, Canada; a low-cost brownfield development asset that is host to the feasibility-stage Kemess Underground ("KUG") and preliminary economic assessment level Kemess East ("KE") projects. AuRico Metals also owned a high-quality royalty portfolio which includes a 1.5% net smelter return ("NSR") royalty on the Young-Davidson gold mine in Ontario and a 2.0% NSR royalty on the Fosterville mine in Australia. (19)
History
Centerra Gold became a publicly listed company in June 2004, after its Initial Public Offering listing on the Toronto Stock Exchange under the symbol "CG".
In 1992 Cameco Corporation, formerly Centerra's largest shareholder was exploring for uranium and gold prospects in the Kyrgyz Republic, accepted an opportunity to follow up on a 1978 gold discovery at Kumtor. A final agreement for project development was concluded with the Kyrgyz Republic in 1994.
In March 2002, Cameco Gold acquired an initial 52% interest in Australian gold company AGR Limited, which owned 95% of the Boroo gold mine in Mongolia, and as part of the transaction, transferred a 61% interest in the Gatsuurt exploration property, also in Mongolia, to AGR. The company acquired the remaining interest in AGR during June 2004. Cameco continued to manage these assets through its wholly owned Cameco Gold Inc. On January 5, 2004, Cameco Corporation and the Kyrgyz Republic announced their agreement to transfer all of Kumtor Gold Company to a new jointly owned Canadian company called Centerra Gold Inc., which included 100% of Cameco Gold's assets.
In 2009, Cameco disposed of its entire interest in Centerra. An additional 43 million shares were transferred to Kyrgyzstan, its interest in Centerra amounting to 33%. The remaining shares were sold through a public offering. (20)
In January, 2013, Centerra became the sole owner of the Öksüt Gold project in Turkey. In March, 2015, Centerra became a 50/50 Joint Venture partner in the Greenstone Gold Property located in the Geraldton-Beardmore Greenstone belt in Ontario, Canada. (21)
On October 20, 2016, Centerra Gold acquired Thompson Creek Metals Company for US$1.03 billion. Also included in the acquisition were the Endako and Thompson Creek primary molybdenum mines in British Columbia and Idaho, respectively, and the Langeloth Metallurgical Facility in Pennsylvania, USA.
In January 2018, Centerra Gold completed the acquisition of AuRico Metals Inc. for approximately C$310 million. With this acquisition the Company acquired the Kemess property in British Columbia, Canada; a low-cost brownfield development asset that is host to the feasibility-stage Kemess Underground deposit. (20)
In January 2018, the Company was granted an operation permit for pasture lands under the Öksüt Project in Turkey. The project was approved by the Board of Directors with construction to be commenced in April 2018. (21)
Financial Highlights
For the full year 2017, Centerra Gold recorded revenues of $2.1 billion with operating earnings amounting to US $208.6 million and net earnings of US $209.5 million.
The increase in earnings in 2017 reflects a full-year of operations at Mount Milligan and increased production at Kumtor. Adjusted earnings in 2017 were US $281 million. All-in sustaining costs on a co-product basis (before taxes) were US $737 per ounce of gold sold and US $3.240 per tonne of copper sold. Total capital expenditures for the full year 2017, including capitalized stripping were US $326.3 million (against US $247.7 million in 2016).
In 2017, Centerra's gold production was 785,316 ounces, including 562,749 ounces produced at Kumtor and 222,567 ounces produced by Mount Milligan. Also, Mount Milligan produced 24,300 tonnes of copper. (22) (23)
Notes
1. Welcome to Centerra Gold 2. Кыргызстан, через ОАО «Кыргызалтын», является держателем самого крупного пакета акций «Центерры» - 77 401 766 акций - около 33% ("Kyrgyzstan, via Kyrgyzaltyn JSC, is Centerra's largest shareholder owning 77,401,766 common shares or over 33%") 3. Алимбеков: "Кыргызалтын" будет получать дивиденды и после закрытия "Кумтора" 4. Morningstar, Centerra Gold Inc. ("Alimbekov: Kyrgyzaltyn Will Be Entitled to Dividends Even Closure of Kumtor") 5. Centerra Gold OPERATIONS. 6. Kyrgyz Republic. Third Review Under the Three-Year Arrangement Under the Extended Credit Facility, and Request for Modification of Performance Criteria-Press Release; Staff Report 7. Centerra Gold Inc. договорилась о покупке акций американской компании Thompson Creek Metals Company Inc. ("Centerra Gold Inc. Agreed to Purchase Shares of American Thompson Creek Metals Company Inc.") 8. Сделка совершена: Centerra Gold купила Thompson Creek. 9. Монгольская энциклопедия. ("Encyclopedia of Mongolia") 10. Монгольская энциклопедия, Гатсуурт. ("Encyclopedia of Mongolia, Gatsuurt") 11. Endako Mine. 12. ENDAKO MINE HISTORY. 13. Thompson Creek Metals Company Inc. 14. Langeloth Metallurgical Facility 15. Berg History. 16. Öksüt Madencilik 17. Oksut History. 18. Дружественное приобретение Центеррой компании «Аурико Металс» 19. Centerra покупает еще одну золотодобывающую компанию в Канаде. ("Centerra Buys Another Company in Canada") 20. HISTORY 21. «ЦЕНТЕРРА ГОЛД ИНК.» 22. Финансовые результаты Centerra Gold за 2017 г. ("Centerra's Financial Results in 2017") 23. Centerra Gold Achieves 2017 Consolidated Gold Production Guidance, Beats Cost Guidance, Records $210 Million Net Earnings and Generates $234 Million Free Cash FlowNG and Provides 2018 Outlook 24. Бороо