October 30, 2009 / 12:06 PM / 9 years ago

UPDATE 1-Centerra Gold Q3 profit tops estimates

* Q3 EPS $0.09 vs est $0.06

* Revenue up 14 pct to $158.8 mln

* Production fell 11 pct to 165,883 ounces (In U.S. dollars, unless noted)

Oct 30 (Reuters) - Gold producer Centerra Gold (CG.TO) posted a better-than-expected third-quarter profit, as higher gold prices boosted revenue and offset lower production.

The Canadian company, which is part-owned by uranium producer Cameco Corp (CCO.TO) and the Kyrgyz government, earned $20.2 million, or 9 cents a share, in the quarter ended Sept. 30.

That compared with a profit of $16.9 million, or 8 cents a share, in the year-before quarter.

Revenue rose 14 percent to $158.8 million on higher gold prices.

Analysts on average expected earnings of 6 cents a share, before unusual items, on revenue of $178.8 million, according to Thomson Reuters I/B/E/S.

Consolidated gold production fell 11 percent to 165,883 ounces due to lower production at its Boroo mine in Mongolia, as a result of a license suspension and no heap leach production.

However, cash costs fell 5 percent to $424 per ounce on lower operating costs.

Centerra reached a long-awaited ownership agreement with Kyrgyzstan earlier this year for the Kumtor mine, which is the company’s main asset.

As part of the deal, Kyrgyzstan raised its stake in Centerra, while former majority shareholder Cameco saw its holding reduced below 50 percent.

For 2009, Centerra still expects to produce 620,000 to 630,000 ounces of gold, of which 500,000 ounces is expected to come from Kumtor.

Shares of Centerra Gold closed at C$8.50 Thursday on the Toronto Stock Exchange. (Reporting by R. Manikandan in Bangalore; Editing by Ratul Ray Chaudhuri)

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