Centerra Gold (TSX: CG) announced that the company recorded net income of US$80.7 million, or 27¢ per share, for the second quarter of 2020, more than double the US$33.4 million, or 11¢ per share, earned in the prior year.
Adjusted net earnings came to US$97.8 million, or 33¢ per share, compared with US$33.4 million, or 11¢ per share, in Q2 2019.
Revenues rose to US$412.7 million from US$340.5 million as the company produced 219,692 oz. gold and 19.1 million lb. copper at costs of US$410 per oz. gold and US$1.20 per lb. copper sold.
The Q2 2020 results exceeded estimates, as Centerra was expected to post adjusted earnings of 22¢ per share on US$368.9 million in revenues, according to financial markets data firm Refinitiv.
During the three-month period, Centerra generated US$268.1 million in cash flow from operations, ending the quarter with US$212 million in cash position and total liquidity of US$712 million. The company received an additional cash boost at the end of May, when its Öksüt mine in Turkey reached commercial production, generating operating cash flow of US$13.5 million and free cash flow of US$5 million.
Production and cost guidance for the full year remains unchanged, and the company expects to release a technical report for the Kumtor mine in the Kyrgyz Republic this fall.
Concurrent with releasing its Q2 earnings, the Canadian-based miner is also raising its quarterly dividend by 25% to 5¢ per common share.
The decision was made based on its strong operating performance and the higher gold price environment, the company said in a press release.