Centerra Gold Reports First Quarter Results
ONTARIO (This news release contains forward-looking information that is subject to the risk factors and assumptions set out on page 10 and in our Cautionary Note Regarding Forward-looking Information on page 14. All figures are in United States dollars).
Centerra Gold Inc. today reported a first quarter net loss of $20.3 million or $0.09 per common share based on revenues of $98.4 million compared to earnings before unusual items of $23.7 million or $0.11 per common share on revenues of $112.7 million in the same quarter of last year. Read more
Centerra Gold Reports First Quarter Results
Centerra Gold Inc. (TSX: CG) today reported a first quarter net loss of $20.3 million or $0.09 per common share based on revenues of $98.4 million compared to earnings before unusual items of $23.7 million or $0.11 per common share on revenues of $112.7 million in the same quarter of last year.
Consolidated gold production for the first quarter of 2009 totaled 103,204 ounces at a total cash cost of $871 per ounce produced compared to 120,395 ounces at a total cash cost of $610 per ounce produced in the corresponding quarter of 2008. Cash provided by operations, net of working capital changes was $10.8 million compared to $28.0 million in the first quarter of 2008. (Total cash cost is a non-GAAP measure and is discussed under “Non-GAAP Measures” in the Management’s Discussion and Analysis issued in conjunction with this news release). Read more
Mineweb – ENERGY – NMA says climate change may be most important U.S. mining issue
As a new administration and a new Congress take power in Washington in January, newly appointed National Mining Association President Hal Quinn said, “For our members, the most important policy matter will be the debate over climate change policy and how to provide the necessary technology to reduce greenhouse gas emissions for coal-based electricity generation and coal-to-liquid fuels operation.”
During a state-of-the-industry session which opened NMA’s MINExpo conference in Las Vegas, Quinn said, “As we all know, the industry’s performance is a function not only of market factors, but also of legislative and regulatory policies that impact mining operations and their markets.”
However, Quinn assured his audience that “both presidential candidates support more aggressive funding for clean coal technologies, including for technologies for carbon capture and storage. …As a result, we remain optimistic that U.S. climate policies will eventually provide for continue use of affordable and abundant American coal to meet our nation’s growing energy needs.”<!–more–>
Meanwhile, Gary Goldberg, Rio Tinto Minerals President and CEO and newly elected NMA chairman, observed that “despite our reserves of 78 minerals and metals, the U.S. today accounts for only between 7 and 8 percent of the world’s exploration budget. We also have tougher government standards than most countries-and that means it costs more to do business here.”
“I believe one of the NMA’s most important jobs is to make a better case for what our industry does to make the world a better place. We need to work with government officials to create a more consistent regulatory climate. Consistency will make it possible to attract investment over the long-term horizon our industry requires,” he stressed.
COAL
Mike Quillen, chairman and CEO of Alpha Natural Resources, told the MINExpo audience that he sees the strong growth continuing into 2009 for exports of both metallurgical and steam coal. “This is not a short-term market cycle. It is a rebasing of the value of Btus in a new energy-short world led by a growing global economy.”
“The drivers are now familiar to us all-increasing demand for electric power generation here and especially in the developing world, increasing demand for steel production to accommodate the booming infrastructure primarily in Asia, and of course the abundance and affordability of coal to meet this demand.”
Quillen noted that NMA expects coal demand will reach a record 1.2 billion tons this year. By the end of this year, coal exports could total 85 million tons, tripling the export volume from 2006.
“This is not evidence of a short-term market cycle. It’s a rebasing of the value of Btus in a new energy-short world led by a growing global economy.”
“The statistics can be startling,” Quillen said, “over one recent 12-month period, China brought online more coal capacity each week that the U.S. and India brought on-line over the entire year. An economy of this size, growing at 10% per year that relies on coal for 80% of its electricity generation obviously introduces a power new factor in the global energy equation.”
Coal supplies are likely to remain tight for the foreseeable future, Quillen advised, noting that almost half of China’s coal-based plants were down to seven-day inventories this summer.
“Indonesia, the world’s largest exporter of thermal coal, may require producers to keep more coal at home for domestic industries. South African’s coal exports are shrinking in order to meet increasing domestic needs, as power blackouts there have painfully underscored the consequences of capacity and fuel shortages. And Australia’s coal exports continue to be limited by rail and port bottlenecks that are likely to persist through at least 2010.”
Quillen stressed that the policy environment for coal utilization “cannot be ignored. Carbon constraints in some form will eventually pose a new challenge, but one we are confident can be overcome.”
“A similar commitment to accelerate the deployment of carbon capture and storage technologies, both here and abroad, should now be an urgent priority,” he advised.
Tags: coal
