While gold prices have been declining lately on the strengthening U.S. dollar and rising interest rates, the safe-haven appeal of gold during the current period of macroeconomic uncertainty, geopolitical tension, and decade-high inflation fostered a substantial increase in demand for the yellow metal in the first quarter. The demand for gold rose 34% year-over-year in the first quarter to 1,234t, its highest level since the fourth quarter of 2018, and 19% above the five-year average of 1,039t.
According to the World Gold Council, demand for gold is expected to continue rising this year. Juan Carlos Artigas, the council’s Global Head of Research, said, “It’s a very liquid, useful asset that can improve the performance or asset allocation over the long-term. So, our research strongly indicates that gold is an effective, strict strategic investment. It’s a long-term asset.” Moreover, analysts expect gold prices can hit $2,050 per ounce.
Centerra Gold Inc. (CGAU)
CGAU operates as a gold mining company that acquires, explores, and develops gold and copper properties in North America and globally. The company’s principal project includes the 100% owned Mount Milligan gold-copper mine, located in British Columbia. CGAU is headquartered in Toronto, Canada.
On May 4, CGAU announced a quarterly dividend of CAD0.07 per common share, which is payable to shareholders on June 1. This reflects the company’s ability to pay back its shareholders.
On February 28, CGAU announced that it had completed the acquisition of the Gemfield Resources LLC, owner of the Goldfield District Project, from Waterton Nevada Splitter, LLC. The acquisition is expected to add to the company’s operating capacity.
For its fiscal first quarter, ended March 31,2022, CGAU’s revenue increased 30.5% to $295.22 million. Its adjusted net earnings from continuing operations and adjusted net earnings from continuing operations per common share came in at $56.40 million and $0.19, up 100% and 90% from the prior-year quarter.
The $1.03 consensus EPS estimate for its fiscal year 2022 indicates a 33.8% year-over-year increase. Likewise, the $1.21 billion consensus revenue estimate for the same year reflects a rise of 33.9% from the prior year.