|CG - there are those net losses again. How low can CG go.|
Significant financial and operating results of the second quarter ended June 30, 2022 included:
- Net loss for the quarter of $2.6 million or $0.01 per common share (basic), including a $40.9 million reclamation provision revaluation recovery at the Endako Mine and the Thompson Creek Mine.
- Adjusted loss NG for the quarter of $36.2 million or $0.12 per common share (basic).
- Cash used in operating activities for the quarter of $3.5 million, was primarily due to a suspension of gold room operations at the ADR plant at the Oksut Mine. No gold ounces were sold at the mine in the period but cash used in operating activities was $51.2 million to build up gold-in-carbon inventory.
- Free cash flow deficit NG for the quarter of $31.2 million.
- Gold production for the quarter of 42,728 ounces, solely from the Mount Milligan Mine. At the Oksut Mine, mining and leaching activities during the quarter resulted in 58,469 recoverable ounces stored as gold-in-carbon inventory at the end of June.
- Copper production for the quarter of 17.4 million pounds.
- Gold production costs for the quarter of $961 per ounce.
- Copper production costs for the quarter of $1.58 per pound.
- All-in sustaining costs on a by-product basis NG for the quarter of $1,659 per ounce due no gold ounces sold at the Oksut Mine and lower copper by-product credits at the Mount Milligan Mine from declining copper prices at the end of the quarter, resulting in a mark-to-market adjustment on provisionally priced copper contracts of $560 per ounce. At June 30, 2022, there were 33.8 million pounds of copper outstanding under contracts awaiting final settlement in future months. All of these copper pounds were adjusted to a market price of $3.71 per pound at the end of the quarter, resulting in an adjustment to copper revenue of $23.3 million from previously recorded prices.
- All-in costs on a by-product basis NG for the quarter of $2,082 per ounce.
- Strong balance sheet with net cash position at the quarter-end of $723.3 million.
- Gold room operations at the ADR plant at the Oksut Mine remain suspended since early March due to mercury detected in the gold room. The Company expects to complete a mercury abatement retrofit in the gold room by late 2022 and has assumed that Oksut's gold room operations will re-commence as soon as regulatory approvals are obtained. The Company expects that ounces inventoried in gold-in-carbon form during 2022 will be processed into gold dore in 2023, assuming the ADR plant resumes full operations as planned. For further details, see "Suspension of production at the Oksut Mine".
- The Company is initiating the suspension of the Oksut Mine's stacking and leaching operations on August 10, 2022 due to the Company's inability to obtain approval from regulators to use more activated carbon that is currently allowed in the Oksut Mine's environmental impact assessment ("EIA"). For further details, see "Suspension of production at the Oksut Mine".
- 2022 Guidance was updated to reflect the suspension of stacking and leaching activities and the continued suspension of gold room operations at the ADR plant at the Oksut Mine until after year-end as well as to give effect to the recent decline in copper prices. The Mount Milligan Mine remains on track to achieve production guidance for both gold ounces and copper pounds. All of the Company's previously issued 2023 guidance has been withdrawn and should not be relied upon.
- Centerra closed the previously announced global arrangement agreement with Kyrgyzaltyn JSC ("Kyrgyzaltyn") and Kyrgyz Republic to effect a separation of Centerra from Kyrgyzaltyn and the Kyrgyz Republic. This was achieved through the disposition of Centerra's ownership in the Kumtor Mine and its investment in the Kyrgyz Republic, the purchase for cancellation by Centerra of all of Kyrgyzaltyn's 77.4 million Centerra common shares, the termination of Kyrgyzaltyn's involvement in the Company, the resolution of their disputes and aggregate cash payments of approximately $86 million (a portion of which was withheld on account of Canadian withholding taxes payable by Kyrgyzaltyn), among other provisions. As at August 9, 2022 the Company had 220,083,541 common shares issued and outstanding.
- The Company continues to progress its life of mine planning work for the Mount Milligan Mine with a focus on assessing the impact of an extended mine life on capital equipment costs and tailings storage facility expansion requirements.
- Quarterly Dividend declared of CAD$0.07 per common share.