May 8 Canadian miner Centerra Gold Inc
reported a jump in first-quarter profit on strong gold
production at its Kumtor mine in Kyrgyzstan and Boroo mine in
Centerra, which is in talks with Kyrgyz authorities on an
alternative waste dumping plan at Kumtor, said net profit for
the March quarter rose to $51.4 million, or 22 cents per share,
from $9.6 million, or 4 cents per share, a year earlier.
Revenue rose 44 percent to $192.3 million.
The Kumtor mine is the largest gold mine in Central Asia
operated by a Western company and last year accounted for 5.5
percent of Kyrgyz GDP and 18.9 percent of industrial output.
However, Centerra is embroiled in a bitter row with the
government, which has accused it of underpaying the state and
wants it to pay $467 million in alleged environmental damages.
Centerra said last week a waste-rock dump at Kumtor had
moved at a greater-than-expected rate, and warned that any
delays to alternative plans would hurt its operations and
"We are continuing to have discussions with the Kyrgyz
authorities to resolve the issues concerning Kumtor to the
benefit of all Centerra shareholders," Chief Executive Ian
Atkinson said in a statement accompanying the results.
Centerra said gold production rose 58 percent in the first
quarter to about 115,220 ounces, while the company's average
realized gold price fell about six percent to $1,619 per ounce.
Centerra shares closed at C$3.78 on Wednesday on the Toronto