BISHKEK (TCA) — Centerra Gold Inc. and Kumtor Gold Company (KGC) have summed up their operating results in the second quarter of 2016 and said that in the first six months of 2016, the Kumtor mine — the largest gold mine in Kyrgyzstan — produced 184,168 ounces or 5,728.27 kg of gold. KGC has contributed more than 3.01 billion soms in taxes and mandatory payments to the Kyrgyz budget.
Centerra on June 27 said that the Kyrgyz State Agency for Environmental Protection and Forestry (SAEPF) issued its official environmental expertise (approval) on Kumtor’s 2016 mine plan. Together with the approvals earlier this year of the industrial safety and subsoil use, components of the 2016 annual mine plan, and the approvals of the maximum allowable emissions permit, the maximum allowable discharge permit, and the waste disposal permit, Kumtor now has all the necessary permits and approvals in place for continuous operations throughout the second half of 2016.
During the second quarter of 2016, Kumtor continued to process ore from cut-back 17 and ore stockpiled from the previous year. Gold production for the second quarter of 2016 was 97,724 ounces of gold compared to 122,111 ounces of gold in the comparative period of 2015. The decrease in ounces poured is due to processing lower grade ore from stockpiles and from cut-back 17, Centerra and Kumtor Gold Company said on August 17.
In contrast, during the comparative quarter of 2015, the Company processed higher grade stockpiled ore mined from the lower benches of cut-back 16. During the quarter, Kumtor processed 1.6 million tonnes, 4% more than the second quarter of 2015.
Gold sales in the second quarter of 2016 were 127,909 ounces, or 3.98 tonnes. Total revenues from gold sales in the second quarter of 2016 were $161.62 million.
The Dore bars produced by the Kumtor mine are purchased by Kyrgyzaltyn JSC for processing at the Kara-Balta refinery pursuant to a Gold and Silver Sales Agreement signed by KGC, Kyrgyzaltyn and the Government of the Kyrgyz Republic. Kyrgyzaltyn JSC enjoys the exclusive right to sell refined gold and silver both in and outside the Kyrgyz Republic.
During the second quarter of 2016, contributions to the national budget in taxes, deductions to the Social Fund and other mandatory payments have totaled 1,448,583,413.24 soms.
Outlook for 2016
The Kumtor mine is expected to produce between 500,000 to 530,000 ounces in 2016, which narrows the range from the previous guidance of 480,000 to 530,000 ounces as disclosed in the Company’s news release of May 3, 2016. According to the 2016 mine plan at Kumtor more than half of the annual gold production will come in the second half of 2016.
Scott Perry, CEO of Centerra Gold stated, “Kumtor delivered strong gold production in the quarter producing 97,724 ounces which was in line with our expectations and plans. Kumtor’s all-in sustaining costs were a competitive $768 per ounce sold well below our original guidance for the year. With mining activities at Kumtor slightly ahead of plan and the business improvement opportunities achieved so far this year combined with the favourable diesel fuel costs and currency exchange rate environment, we have decided to favourably revise our guidance for gold production, AISC and capital expenditures.”
