UPDATE 1-Centerra profit misses estimates on lower realized gold prices

Thu Feb 20, 2014 12:34am EST
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Feb 20 (Reuters) - Canadian miner Centerra Gold Inc reported a lower-than-expected fourth-quarter profit, hurt by lower realized gold prices.

The company reported a net income of $106.6 million, or 45 cents per share, in the quarter ended Dec. 31, compared with a loss of $70.7 million, or 30 cents per share, a year earlier.

Analysts on average had expected the company to earn 68 cents per share, according to Thomson Reuters I/B/E/S.

Revenue in the fourth quarter rose about 27 percent to $468.9 million due to higher ounces sold, but was partially offset by a 26 percent drop in realized gold prices.

The average realized gold prices in the fourth quarter fell to $1,271 per ounce from $1,711 per ounce a year earlier.

Centerra, which owns and operates the Kumtor mine in Kyrgyzstan and the Boroo mine in Mongolia, said consolidated gold production in 2013 nearly doubled to 690,720 ounces from 387,076 ounces a year earlier.

"Both operations exceeded their production guidance in 2013, mainly as a result of a strong fourth quarter at Kumtor and better than expected annual production from the heap leach operation at Boroo," Ian Atkinson, Centerra president and CEO said in a statement.

Centerra said it expects to continue its discussions with the Kyrgyz government for a potential restructuring to resolve all outstanding concerns relating to the Kumtor Project.   Continued...