Centerra does not expect to begin production at Gatsuurt this year
Centerra Gold, that owns the Boroo mine in Mongolia, has reported higher-than-expected quarterly earnings, as increased production and strong gold prices helped the miner return to profit after a loss last year. The Canadian gold miner"s net earnings came in at USD29.8 million. That compares with a net loss of USD79.6 million a year earlier, when lower gold recoveries and increased costs took a toll. Revenue was 46 percent higher at USD152.2 million.
Regulatory issues with the government have plagued the company’s operations in Mongolia since June of 2009. The Boroo heap leach facility, which uses cyanide to extract gold from crushed ore, has been shut down since April 2009 pending a final operating permit and Centerra has removed all heap leach production from its 2010 production guidelines. Even so, gold production at the Boroo mine rose for the quarter on increased recoveries.
Centerra"s current production guidance does not include any gold production from its Gatsuurt project in Mongolia. "Due to the potential for delays in receiving the required approvals for the Gatsuurt project, Boroo has initiated an alternative plan that is expected to allow the Boroo operation to achieve the production within the forecasted range of ounces produced," Centerra said.
Regulatory issues with the government have plagued the company’s operations in Mongolia since June of 2009. The Boroo heap leach facility, which uses cyanide to extract gold from crushed ore, has been shut down since April 2009 pending a final operating permit and Centerra has removed all heap leach production from its 2010 production guidelines. Even so, gold production at the Boroo mine rose for the quarter on increased recoveries.
Centerra"s current production guidance does not include any gold production from its Gatsuurt project in Mongolia. "Due to the potential for delays in receiving the required approvals for the Gatsuurt project, Boroo has initiated an alternative plan that is expected to allow the Boroo operation to achieve the production within the forecasted range of ounces produced," Centerra said.
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