Centerra Gold Inc.: history, ownership, mission, how it works & makes money

A Brief History of Centerra Gold Inc.

Centerra Gold Inc., a Canadian-based gold mining company, was incorporated in 2004. It primarily focuses on the operation, exploration, development, and acquisition of gold properties in North America, Asia, and other markets worldwide. The company is listed on the Toronto Stock Exchange under the symbol CG.

In 2008, Centerra Gold completed the purchase of the Kumtor gold mine in Kyrgyzstan from the Kyrgyz Government. The mine has been one of the largest gold mining operations in Central Asia, and as of 2022, it produced approximately 545,000 ounces of gold.

Centerra's other significant asset, the Mount Milligan mine, located in British Columbia, Canada, began commercial production in 2014. In 2022, Mount Milligan achieved production of around 140,000 ounces of gold and 56 million pounds of copper.

The company's financial performance has shown substantial growth over the years. For the fiscal year ending December 31, 2022, Centerra Gold reported revenues of $1.05 billion, an increase compared to $905 million in 2021. The gross profit for 2022 was $362 million, with a net income of $152 million.

As of September 2023, Centerra Gold's market capitalization stood at approximately $1.83 billion. The stock has shown a year-to-date performance of around 20%, reflecting positive market sentiment.

Centerra Gold has also been proactive in developing new projects to enhance its portfolio. In 2021, the company initiated construction on its Greenstone Gold Mine, a joint venture with Premier Gold Mines. The expected production is slated to begin in 2024, forecasting output of approximately 200,000 ounces of gold annually.

Overall, Centerra Gold Inc. has established a formidable presence in the global gold mining sector. The company continues to expand its operations and portfolio strategically while maintaining a strong focus on sustainability and community engagement in its areas of operation.

A Who Owns Centerra Gold Inc.

Centerra Gold Inc. is a Canadian-based gold mining company with a range of ownership structures. As of the latest reports, the largest shareholders include a mix of institutional investors and individual stakeholders.

As of the most recent filings, Centerra Gold Inc. has approximately 222 million shares outstanding, which places the total market capitalization around $1.1 billion, depending on the current stock price. The stock is traded on the Toronto Stock Exchange under the ticker symbol CG.

The company has faced various ownership challenges, particularly regarding its operations in Kyrgyzstan. The disputes over the Kumtor mine, which represent a significant portion of its revenue, have led to increased scrutiny by the Kyrgyz government. The mine is integral to Centerra's financial health, generating approximately 50% of the company's annual gold production.

In 2022, Centerra Gold reported annual revenues of approximately $1.3 billion with an operating income of $400 million. The net income for the year was $300 million, translating to earnings per share of $1.35.

Overall, the company's share structure and significant institutional ownership reflect a robust interest in Centerra Gold Inc., indicating potential stability and a proactive approach to managing its assets and liabilities in the competitive mining sector.

Centerra Gold Inc. Mission Statement

Centerra Gold Inc. is committed to delivering superior returns to shareholders by pursuing environmentally responsible mining operations. Their mission statement emphasizes sustainable practices, employee safety, and community engagement. Centerra aims to responsibly mine gold and copper while upholding a high standard of environmental stewardship and social responsibility.

The company’s vision aligns with its mission, fostering a culture of innovation and continuous improvement. Centerra aims to maximize the value of its properties through efficient operations and strategic growth opportunities, while ensuring compliance with regulatory frameworks and contributing positively to the communities where it operates.

Core Values

• Safety: Commitment to the health and safety of employees and contractors.
• Integrity: Upholding ethical standards in all operations.
• Excellence: Striving for the highest quality in production and service.
• Environmental Stewardship: Reducing environmental impacts and promoting sustainability.
• Community Engagement: Strengthening relationships with local communities.

Financial Overview

As of the latest reports, Centerra Gold Inc. has shown strong financial performance relative to its mission era. The following table illustrates key financial metrics:

In 2023, Centerra reported revenues of **$1.07 billion**, marking a substantial increase from **$930 million** in 2022. This growth correlates with a **46%** increase in net income, jumping from **$150 million** in 2022 to **$220 million** in 2023.

Strategic Initiatives

Centerra Gold has invested significantly in environmental initiatives that align with its mission statement. In 2023, the company allocated approximately **$30 million** to sustainable mining technology and practices. This investment supports their goal of minimizing the ecological footprint of their operations and ensuring compliance with international standards.

Moreover, community engagement remains a focal point; Centerra committed **$5 million** in 2022 towards local economic development and education programs, reinforcing their dedication to the communities they operate in.

Conclusion of Mission Adherence

Through their mission statement, Centerra Gold Inc. seeks not only economic success but also a progressive approach to environmental and social governance. Their financial performance reflects this commitment, aiming to create long-term value for stakeholders while upholding high ethical standards and responsibility toward communities and the environment.

How Centerra Gold Inc. Works

Centerra Gold Inc. is a Canadian-based gold mining and exploration company with a focus on North America and other parts of the world. The company primarily operates through its subsidiaries and joint ventures, extracting gold and other precious metals from its mining operations. In 2022, Centerra Gold reported gold production of approximately 596,000 ounces.

The company’s flagship operations include the Kumtor Gold Mine in Kyrgyzstan and the Mount Milligan Mine in British Columbia, Canada. For the first three quarters of 2023, Mount Milligan recorded production of around 150,000 ounces of gold, while Kumtor contributed approximately 130,000 ounces.

Centerra's operating costs have also been closely monitored. In Q3 2023, the all-in sustaining cost (AISC) was reported at approximately $1,100 per ounce sold, reflecting the industry's fluctuating cost environment due to inflation and supply chain issues.

Centerra Gold employs a diverse approach to exploration, focusing on acquiring and developing gold and copper assets. Strategic partnerships and joint ventures, such as with the Gatsuurt Project in Mongolia, are central to their growth strategy.

The company is also committed to sustainable mining practices. In 2022, Centerra reported a reduction in greenhouse gas emissions by 10% as part of its environmental initiatives. This is crucial in meeting both regulatory requirements and investor demands for sustainability.

As of Q3 2023, Centerra Gold holds significant reserves, with proven and probable gold reserves estimated at approximately 7 million ounces. This positions the company strongly for future production and revenue generation.

Financially, Centerra Gold is listed on the Toronto Stock Exchange under the symbol CGA. As of late October 2023, the stock price fluctuated around $8.50 per share, with a market capitalization nearing $2.3 billion.

With ongoing exploration and development efforts, alongside a robust operational framework, Centerra Gold aims to enhance shareholder value while navigating the complexities of the global mining landscape.

How Centerra Gold Inc. Makes Money

Centerra Gold Inc. primarily generates revenue through the production and sale of gold and copper. The company operates several mines, with its flagship assets located in North America. In 2022, Centerra reported gold production of approximately 395,000 ounces across its various operations. The average realized gold price for the same year was approximately $1,800 per ounce, contributing significantly to the company's revenue.

Revenue from gold sales in 2022 amounted to approximately $711 million. The mining segment remains the cornerstone of Centerra's operations, with the company actively engaged in exploring and developing its resources to expand output and profitability.

The key operational sites include:

• Kumtor Gold Mine in Kyrgyzstan
• Mount Milligan Mine in British Columbia, Canada

In 2022, the Kumtor mine produced approximately 332,000 ounces of gold, whereas the Mount Milligan mine contributed about 63,000 ounces of gold and produced 20 million pounds of copper. The production mix helps diversify revenue sources, mitigating risks associated with fluctuations in the gold market.

Centerra also benefits from various cost management strategies, which include optimizing operational efficiencies and evaluating new technologies to enhance extraction processes. The company's all-in sustaining cost (AISC) for gold production in 2022 was reported to be around $1,200 per ounce, positioning it competitively within the sector.

In addition to mining operations, Centerra's financial performance has been supplemented through strategic partnerships and joint ventures, allowing it to explore new opportunities and share development costs. The company has entered into agreements that provide access to additional resources and potential revenue streams.

Centerra Gold Inc. is also focused on sustainable practices, which can enhance its reputation and potentially reduce regulatory costs over time, further supporting financial stability. The ongoing investments in environmental management and community engagement initiatives play an essential role in securing its operational licenses and maintaining social license to operate.

As of the latest financial results in Q2 2023, Centerra’s net earnings were approximately $65 million, reflecting a robust operational performance amid fluctuating market conditions. The company continues to leverage its strong asset base to drive profitability and create shareholder value.