Centerra Gold Inc. (NYSE:CGAU) to Issue Quarterly Dividend of C$0.07

Key Points

• Centerra announced a quarterly dividend of C$0.07 per share, with an ex‑dividend/record date of May 21 and payment on June 4, implying a yield of about 1.6%.
• The company beat the quarter’s estimates with EPS of $0.44 (vs. $0.41 expected) and revenue of $484.7M (vs. $399.1M expected), reported a 42.2% net margin, and its shares traded up roughly 1.7% to $17.77 with a P/E near 6.3.
• The dividend is well covered—Centerra’s payout ratio is about 19%, and analysts forecast roughly $1.90 in EPS next year, indicating a low future payout ratio and capacity to sustain the payout.

Centerra Gold Inc. (NYSE:CGAU - Get Free Report) announced a quarterly dividend on Wednesday, April 29th. Shareholders of record on Thursday, May 21st will be given a dividend of 0.07 per share on Thursday, June 4th. This represents a c) dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend is Thursday, May 21st.

Centerra Gold has a dividend payout ratio of 19.0% meaning its dividend is sufficiently covered by earnings. Analysts expect Centerra Gold to earn $1.90 per share next year, which means the company should continue to be able to cover its $0.20 annual dividend with an expected future payout ratio of 10.5%.

Centerra Gold Trading Up 1.7%

CGAU traded up $0.30 on Thursday, reaching $17.77. 439,860 shares of the company traded hands, compared to its average volume of 2,073,465. Centerra Gold has a one year low of $6.30 and a one year high of $21.17. The company has a quick ratio of 1.65, a current ratio of 2.39 and a debt-to-equity ratio of 0.04. The company has a market cap of $3.55 billion, a P/E ratio of 6.28, a price-to-earnings-growth ratio of 1.18 and a beta of 0.90. The firm has a fifty day simple moving average of $18.53 and a two-hundred day simple moving average of $15.86.

Centerra Gold (NYSE:CGAU - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.41 by $0.03. The business had revenue of $484.70 million during the quarter, compared to analyst estimates of $399.09 million. Centerra Gold had a net margin of 42.18% and a return on equity of 12.42%. As a group, equities research analysts expect that Centerra Gold will post 1.72 earnings per share for the current year.

Institutional Investors Weigh In On Centerra Gold

Hedge funds and other institutional investors have recently modified their holdings of the company. Burkett Financial Services LLC purchased a new stake in shares of Centerra Gold in the third quarter valued at $30,000. TD Waterhouse Canada Inc. increased its position in Centerra Gold by 1,106.5% during the third quarter. TD Waterhouse Canada Inc. now owns 2,980 shares of the company's stock worth $33,000 after purchasing an additional 2,733 shares during the last quarter. Osaic Holdings Inc. increased its position in Centerra Gold by 63.0% during the second quarter. Osaic Holdings Inc. now owns 4,758 shares of the company's stock worth $34,000 after purchasing an additional 1,839 shares during the last quarter. Global Retirement Partners LLC acquired a new position in Centerra Gold in the fourth quarter valued at $36,000. Finally, Leonteq Securities AG purchased a new stake in Centerra Gold during the fourth quarter valued at about $72,000. 55.40% of the stock is currently owned by hedge funds and other institutional investors.

Centerra Gold Company Profile

Centerra Gold Inc is a gold mining company incorporated in Canada and headquartered in Toronto. The company specializes in the exploration, development and operation of precious metals properties, with a focus on gold production. Centerra's portfolio includes the Mount Milligan mine in British Columbia, Canada, and the Otjikoto mine in Namibia. Both operations produce gold and copper concentrates and employ modern mining methods and processing facilities to optimize recovery rates and minimize environmental impact.

In addition to its producing assets, Centerra is advancing the development of its Greenstone Gold Project in Ontario, Canada, which, upon completion, is expected to become one of Canada's largest gold mines.

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