Welcome to Centerra
On behalf of the board of directors and more than 3,159 employees around the world currently, welcome to Centerra Gold. This website has been designed with your needs in mind and we hope that it provides much of what you'd like to know about our company.
On June 30, 2004, Centerra was launched as a growth-oriented gold company with the largest gold initial public offering (IPO) on the Toronto Stock Exchange since 1994. At the time of the IPO, the value and size of the company was increased substantially with the acquisition of the remaining two-thirds interest in the Kumtor mine in the Kyrgyz Republic and an additional 42% interest in the Boroo mine in Mongolia.
1. Proven expertise in Asia and the former Soviet Union
Over the years, we've learned what it takes to successfully conduct business in Asia and the former Soviet Union. We have established and nurtured strong working relationships in the Kyrgyz Republic, which culminated in the development of Kumtor, the largest gold mine in Central Asia. Subsequently, we leveraged our experience to develop the Boroo mine in a different commercial and legal environment in Mongolia. Currently, we are developing the Gatsuurt property adjacent to the Boroo mine for production on receipt of final approvals and regulatory commissioning. We believe our experience in Central Asia provides us with a significant competitive advantage in pursuing opportunities in this unique part of the world.
2. Safe, efficient operations
Centerra currently operates two mines one in the Kyrgyz Republic and the other in Mongolia. The environmental, safety and operational performances of both mines are exemplary and have continued into this year and are reflective of our commitment to operate within World Bank environmental guidelines. The Kumtor mine, has produced more than 8.6 million ounces of gold through 2012, a milestone that is attained only by major gold mines. Boroo, which began commercial operations in March 2004 has produced approximately 1.5 million ounces of gold through the end of 2012.
3. Growing reserves
Exploration is a top priority at Centerra. In 2012, gold reserves totaled 11.1 million ounces. During 2013, we will conduct a $45 million exploration program to unlock the potential of these properties and explore other promising regions in Asia, Turkey and Russia and other emerging markets worldwide. The Company sold its interest in the REN joint venture in July 2010 to Homestake Mining Company of California (a subsidiary of Barrick Gold Corporation) for US$35.2 million. In January 2013, Centerra became the sole owner of the Oksut Gold project in Turkey.
4. A strong financial position
Centerra is generating solid cash flows from its producing mines. Based on the planned production of our mines and the opportunities that exist to extend their lives, we expect to be able to continue to generate strong cash flows from these sources for years to come. This financial strength provides us with a solid base from which we can pursue acquisitions of gold producing properties or prospects for development and exploration.
At the end of the second quarter 2010 Centerra announced an inaugural dividend to its shareholders. Currently Centerra pays a quarterly dividend of C$0.04 per share to its shareholders.
6. Leverage to higher gold prices
Finally, and perhaps most fundamentally, we are well positioned to benefit from today's bullish outlook for gold since 100% of our production is un-hedged. Gold prices have continued on an improving trend since 2001 and many factors, including a decline in global mine supply are leading most industry analysts to predict that this trend will continue.