February 6, 2008 / 2:15 AM / 10 years ago

Centerra Gold posts loss after share issue costs

(In U.S. dollars unless noted)

MONTREAL, Feb 5 (Reuters) - Centerra Gold (CG.TO) said on Tuesday it recorded a fourth-quarter loss after $36.5 million of noncash expenses relating to issuing shares from its treasury.

The Canadian-based mid-tier gold producer said it lost $26.7 million, or 12 cents a share, in the quarter ended Dec. 31, compared with a profit of $1.9 million, or 1 cent a share, in the year-earlier period.

The unusual item for the latest fourth quarter was the additional cost of issuing an expected 10 million treasury shares under a preliminary agreement with the Kyrgyz government announced on Aug. 30, 2007.

The final cost of the treasury shares will be based on the closing price of Centerra’s shares on issuance, the company said.

Before the unusual items, Centerra’s profit was $9.7 million, or 5 cents a share. Analysts polled by Reuters Estimates had expected, on average, profit of 3 cents a share, before exceptional items.

Revenues rose to $89.4 million from $88.4 million.

Centerra said it produced 132,530 ounces of gold in the quarter from its Kumtor mine in Kyrgyzstan and its Boroo mine in Mongolia, compared with 142,291 ounces in the year-earlier period.

Cash costs rose to $585 from $473 an ounce a year earlier.

Centerra reached a long-awaited agreement last year with the Kyrgyz government over the ownership and taxation of Kumtor.

The agreement, under which Kyrgyzstan will double its stake in Centerra while Cameco Corp (CCO.TO) trims its share, is expected to go before the Kyrgyz parliament for approval in just over a week. (Reporting by Robert Melnbardis; Editing by Braden Reddall) ($1=$1.00 Canadian)

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