Centerra Gold (US:CGAU)2025-02-20 22:05Financial Performance - Revenue for 2024 increased to $1,214,503,000, up 10.9% from $1,094,897,000 in 2023[31] - Net earnings for 2024 were $80,394,000 compared to a net loss of $81,278,000 in 2023, marking a significant turnaround[31] - Earnings from mine operations rose to $378,048,000 in 2024, a 42.9% increase from $264,005,000 in 2023[31] - Total comprehensive income for 2024 was $61,748,000, compared to a loss of $70,504,000 in 2023[31] - Gold revenue increased to $764.9 million in 2024, up from $598.7 million in 2023, reflecting a significant growth of 27.8%[176] Assets and Liabilities - Centerra Gold Inc. reported total assets of $2,265,133,000 as of December 31, 2024, a decrease from $2,280,766,000 in 2023, reflecting a decline of approximately 0.7%[29] - Current liabilities decreased to $283,880,000 in 2024 from $297,437,000 in 2023, a reduction of about 4.5%[29] - The company’s property, plant, and equipment decreased to $1,101,536,000 in 2024 from $1,237,506,000 in 2023, a decline of approximately 11%[29] - The company’s total liabilities and shareholders' equity remained consistent at $2,265,133,000 in 2024, matching the total assets[29] - Total inventories decreased to $234.2 million in 2024 from $257.3 million in 2023, with significant reductions in gold in-circuit and ore on leach pads[162] Cash Flow and Investments - Cash and cash equivalents increased to $624,673,000 in 2024 from $612,941,000 in 2023, representing a growth of about 1.2%[29] - Cash provided by operating activities increased to $298,401,000 in 2024, compared to $245,597,000 in 2023, reflecting improved operational efficiency[32] - The company capitalized $174.8 million in additions to property, plant, and equipment (PP&E) for 2024, compared to $121.7 million in 2023[165] - The company repurchased 6,731,430 shares at a cost of $44,053,000 during 2024[33] - The company received bank interest income of $29.3 million in 2024, an increase from $18.4 million in 2023[201] Shareholder Returns - Dividends paid in 2024 amounted to $43,510,000, slightly down from $44,907,000 in 2023[32] - Basic earnings per share improved to $0.38 in 2024 from a loss of $0.37 in 2023, while diluted earnings per share rose to $0.35 from a loss of $0.38[190] - The company initiated an Automatic Share Purchase Plan with a maximum repurchase value of $7.6 million for the period ending February 25, 2025[188] Impairments and Provisions - The company incurred an impairment loss of $193,564,000 in 2024, significantly higher than the $34,101,000 recorded in 2023[31] - Provisions for reclamation are recognized at the time of environmental disturbance, with major costs related to tailings facilities and ongoing water treatment[79] - The reclamation recovery recognized for 2024 was $25.3 million, a significant improvement from a reclamation expense of $34.4 million in 2023[171] Agreements and Contracts - Centerra entered into an Additional Royal Gold Agreement on February 13, 2024, which involves increased cash payments for gold and copper delivered, impacting future revenue recognition[19] - The fair value of the financial asset from the Additional Royal Gold Agreement will be re-measured at each reporting date, with changes recorded as gains or losses in operating expenses[19] - The Company delivers 35% of gold ounces and 18.75% of copper produced to Royal Gold under the Mount Milligan Mine Streaming Agreement, with Royal Gold paying US$435 per ounce of gold delivered[101] Taxation and Deferred Tax - The Company recognized deferred tax assets for unused tax losses and tax credits, contingent on the likelihood of future taxable profits being available for utilization[115] - Total income tax expense for 2024 was $93,663, a marginal decrease from $94,912 in 2023, with current income tax expense increasing to $87,456 from $85,672[181] - The net deferred income tax assets increased to $41,733 in 2024 from $41,091 in 2023, indicating stable tax asset management[183] Stock Options and Equity - As of December 31, 2024, Centerra had 2,542,451 stock options outstanding with a weighted average exercise price of C$8.25, down from 2,930,958 options in 2023[194] - The company granted 737,202 stock options in 2024 at an average exercise price of C$7.01, compared to 564,499 options granted in 2023 at C$8.30[194] - Centerra's Performance Share Units (PSUs) increased to 1,311,423 units by the end of 2024, up from 1,164,075 units at the beginning of the year[196] Operational Efficiency - Other operating expenses significantly decreased to $2,421 in 2024 from $29,578 in 2023, primarily due to reduced selling and marketing costs[178] - Changes in working capital resulted in a total increase of $27.01 million in 2024, compared to $43.24 million in 2023[202] - The company reported a total finance cost of $14,664 in 2024, a slight decrease from $15,345 in 2023[180]