Kyrgyzstan: Kumtor gold output accounted for 9.7% of country’s GDP in 2017

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BISHKEK (TCA) — Gold production at the Kumtor mine in Kyrgyzstan in 2017 was 562,749 ounces or 17,503.46 kg. Gold sales in 2017 were 550,134 ounces or 17,111.09 kg with a revenue totaling $685.2 million. Contribution to the national budget in taxes and mandatory payments in 2017 was more than 8.7 billion soms, Kumtor Gold Company said on March 14.

Contributions made within the Kyrgyz Republic in 2017 (including taxes, refining, domestic suppliers, infrastructure, charities, etc.) have exceeded US $269.731 million. In all, contributions made within the Kyrgyz Republic between 1994 and 2017 have exceeded US $3.472 billion.

According to preliminary reports of the National Statistics Committee of Kyrgyzstan, Kumtor’s share in the country’s GDP in 2017 was 9.7% and in the aggregate industrial output — 21.1%.

Outlook for 2018

Kumtor’s 2018 gold production forecast is expected to be in the range of 450,000 to 500,000 ounces with about 45% of the gold production expected in the fourth quarter. In 2018, Kumtor’s all-in sustaining cost on a by-product basis is expected to be in the range of $733 to $815 per ounce sold. At Kumtor, 2018 total capital expenditures, excluding capitalized stripping, are forecast to be $63 million. Spending on sustaining capital of $49 million relates primarily to major overhauls and replacements of the heavy duty mine equipment ($42 million). Growth capital investment at Kumtor for 2018 is forecast at $14 million primarily related to tailings dam construction ($9 million). The cash component of capitalized stripping costs related to the development of the open pit is expected to be $122 million of the $168 million total capitalized stripping estimated in 2018.

The Kumtor open pit mine, located in the Kyrgyz Republic, is one of the largest gold mines in Central Asia operated by a Western-based gold producer. It has been operating since May 1997 and has produced over 11.5 million ounces or 357 tons of gold to December 31, 2017.

Kumtor Gold Company is the operator of the Kumtor Project responsible for the entire production cycle.

Centerra Gold Inc. is a Canadian-based gold mining company focused on operating, developing, exploring and acquiring gold properties in North America, Asia and other markets worldwide. Centerra operates two flagship assets, the Kumtor Mine in the Kyrgyz Republic and the Mount Milligan Mine in British Columbia, Canada and is the largest Western-based gold producer in Central Asia. The Company is headquartered in Toronto, Ontario, Canada.

The Kyrgyz Republic, via Kyrgyzaltyn JSC, is Centerra’s largest shareholder owning 77,401,766 common shares. As of March 14, 2018, Kyrgyzstan’s interests were estimated at $425 million.

Sergey Kwan

TCA