Canadian Mining Journal


Centerra takes US$18.1M hit at Kumtor

Centerra Gold (TSX: CG; US-OTC: CAGDF) widens its third quarter loss, but reduces its annual cost guidance to reflect lower operating costs at its Kumtor gold mine in the Kyrgyz Republic.

The miner has been operating its flagship Kumtor mine since 1997, before starting up its 10-year Boroo gold mine in Mongolia in 2004, both with much success.

… However, excluding the non-cash impairment charge of US$18.7 million on the goodwill of the Kumtor mine, the miner broke even. The charge resulted from lower gold prices and a higher discount rate to reflect the rising country risk. (There is no goodwill remaining on the asset.)

Including the impairment, Centerra posted a net loss of US$18.1 million, or US8¢ per share, compared to a net loss of US$3.2 million, or US1¢ per share, a year ago.

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