Cara Community GSM 50: Centerra Gold

Centerra Gold (TSX: CG) (OTC: CAGDF) reviewed 10-12-2020

Market Cap:       $3.0B                     Share Price:        $10.14

Shares outstanding: 209.7 M

Cash on hand:  $212M (USD) as of 30 Jun 2020    Credit facility: $500M USD (undrawn as of 30 Jun 2020)

Debt: None as of 30 Jun 2020

Current operations: Yes

Insiders: Own 26.5%        Institutional: 140 own 65% of float


Investor Presentation:

CEO & Director: Michael S. Parrett            HQs: Toronto, Canada

Canadian gold & copper major produced 783,308 oz Au and 71 M lb of copper in 2019

Major assets:

– Kumtor mine in the Kyrgyz republic. Produces about 500+ K oz. Au per year

– Mount Milligan mine in BC, Canada – approx. 180K oz. Au per year

– The Oksut gold mine in Cental Anatolia, Turkey – approx. 70K oz Au per year

AISC: $804 (USD) per gold ounce as of 30 Jun 2020, stated per the company website as of Jun 2020

Production was 219,692 oz gold and 19 million pounds copper for Q2 2020

Free cash-flow was $268.1M (USD) in Q2 2020

Reported good earnings for Q2 2020: $80.1 M (USD) at 0.27 cents per share

Estimated total reserves at 11 M oz gold. Has additional exploration and development properties

Bottom line:

  • A major producer with a good balance sheet but might add debt as Kemess is still being built
  • Kemess development in Canada has an estimated 4 M oz Au reserve
  • Should be a 900K oz gold producer and maybe higher
  • Some political & jurisdictional flags (Kyrgyz and Turkey)
  • No position presently, but may consider it in the current price range (2020.10.12)

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