Centerra reports Gatsuurt gold reserves increase to 1.2 million ounces
Centerra reported that its Boroo mine in Mongolia is nearing the end of its mine life and is expected to cease mining by the end of this year.
Centerra reported that its Boroo mine in Mongolia is nearing the end of its mine life and is expected to cease mining by the end of this year. It estimated that a strike at Boroo in May 26, 2009, followed by the temporary suspension of Boroo's mine operating licenses by Mongolian authorities on June 12, 2009, generated the company a USD4.3 million in standby cost.
But at the end of last year, proven and probable reserves for the Gatsuurt Project in Mongolia increased to 1.2 million ounces of contained gold, while measured and indicated resources are estimated at 480,000 ounces of contained gold.
Thus the company forecasts that its gold production will average the 640,000 to 700,000 ounces this year with a total cash cost of USD460 to USD505 per ounce. The Kumtor mine in Kyrgyzstan is expected to produce between 520,000 to 560,000 ounces while Boroo/Gatsuurt gold production is forecast to be 120,000 to 140,000 ounces in 2010.
On a financial level, Centerra reported net earnings of USD140 million for the fourth quarter of 2009, compared to earnings of USD42.6 million for the same quarter of 2008. Exploration expenditures of USD30 million are planned for this year, representing an increase from the USD25 million program in 2009. Capital expenditures for this year are estimated to be USD276.4 million including USD49.7 million of sustaining capital and USD226.7 million of growth capital.