Kumtor mine boosts Centerra Gold’s quarterly results

Canadian miner Centerra Gold logged late Wednesday a second-quarter profit of $1.6 million, compared with a net loss of $49 million a year earlier, mainly thanks to an 89% increase in its annual gold output boosted by its flagship Kumtor mine, in Kyrgyzstan.

The Toronto-based firm increased its yearly gold production forecast to a range of 615,000 to 675,000 ounces from the previously expected 605,000 ounces to 660,000 ounces.

Centerra also said it is continuing negotiations with the Kyrgyz government about a possible restructuring to resolve all outstanding concerns relating to the Kumtor mine.

The country's parliament has set a new Sept. 10 deadline for the government to agree to an improved deal with the company or revoke its license altogether.

The Canadian miner is a significant employer and taxpayer in the country and a key contributor to the Kyrgyz economy. In fact, the Kumtor open pit gold mine accounts for 60% of the nation's industrial output and, according to the company, it is the largest gold mine operated in Central Asia by a Western-based company.