Centerra Gold swings to Q2 profit as Kyrgyz mine kicks into gear, raises guidance

Canadian miner Centerra Gold has reported a second-quarter profit of $1.6-million, or $0.01 a share, compared with a net loss of $48.9-million a year earlier, as gold output surged 89% year-on-year, boosted in particular by a strong performance by its flagship Kumtor mine, in Kyrgyzstan.

The company late on Wednesday said it had produced 99 426 oz of gold in the quarter ended June 30, including 72 365 oz at Kumtor and 27 061 oz at Boroo, in Mongolia, compared with 52 482 oz (41 307 oz from Kumtor and 11 175 oz from Boroo). The increased output helped to offset a 14% decline in the realised gold price of $1 376/oz for the quarter.

Revenue climbed 43% to $128.2-million, compared with $89.7-million, despite mining and processing operations being impacted at Kumtor between May 30 and June 1 as a result of an illegal protest that blocked the road leading to the mine, disrupting supplies deliveries.

Second-quarter results included charges totalling $2.8-million, mainly comprising a charge of $2.2-million for the write-off of certain infrastructure assets at Kumtor that could not be relocated as a result of the accelerated movement of the central valley waste dump. Movement were reported to have stabilised following mitigation actions.

The miner lifted its consolidated gold production outlook to between 615 000 oz and 675 000 oz.