|
RENO (MINEWEB) - Increased ice movement in the southeast section of the Kumtor Minepit, delaying access to a high grade zone, took its toll onCenterra Gold's bottom line during the first quarter, sending goldproduction plummeting 60%. Centerra's net earnings went into free fall, plunging 111% duringthe first quarter. Total gold production for the first quarter of this year was 72,555ounces compared to 180,716 ounces during the first quarter of 2011."The decreased gold production in the current quarter of 2012reflects the company's original production schedule for 2012 wheregold production was weighted to the fourth quarter, as well as theimpact at Kumtor of the increased ice movement in the southeastsection of the pit," Centerra said. Meanwhile, at Boroo in Mongolia, mining operations resumed in thefirst quarter of 2012 with the pre-stripping of pit 6. However,heap leach operations remained idle during the first quarterpending receipt of a final operating permit by governmentregulators. Centerra's total cash cost per ounce of gold was $985 in the firstquarter of the year, compared to $370 in the first quarter of lastyear. "The year-over-year increase in unit cash cost is primarily aresult of 63% lower production at Kumtor due to the lower gradesand recovery from processing stockpiled ore and the increase inoperating costs mainly as a result of higher labor cost, diesel,other consumables and social fund contributions," said the company. The company is revising its 2012 outlook for consolidated totalcash cost per ounce from its prior outlook of $465 to $500 perounce to $590 to $615 per ounce to reflect lower gold production atKumtor. Consolidated gold production for Centerra overall is expected to be450,000 to 470,000 ounces this year. The Kumtor mine is expected toyield 390,000 to 410,000 ounces this year, while Boroo goldproduction is expected to be 60,000 ounces. The 2012 forecastassumes no production from Boroo's heap leach facility or theGatsuurt Project due to uncertainties with permitting. FINANCIALS Kumtor recorded $19.2 million of abnormal mining costs in the firstquarter. The total expense of abnormal mining costs for the ice andwaste removal in the unload zones of Kumtor is expected to be $40million in 2012 and $45 million in 2013. 2012 exploration expenditures of $45 million are unchanged from theprevious guidance in the Jan. 17, 2012 news release. Capital expenditures for 2012 are estimated to be $384 million, a$5 million decline from the prior guidance given Jan. 17, 2012. Centerra reported a net loss of $14.7 million or negative 6-centsper share for the first quarter of this year, down substantiallyfrom the net earnings of $136.6 million or 58-cents per sharereported during the same period of last year. The first quarter loss included $19.2 million of abnormal miningcosts, $4.6 million of mine standby costs related to the workstoppage at Kumtor, and a $1 million provision for the closure ofCenterra's Reno exploration office. SUBSCRIBE to Mineweb.com's free daily newsletter now. I am an expert from yaisu.com, while we provides the quality product, such as Mini 4D Cinema System Manufacturer , 3D Cinema System Manufacturer, Motion Theater Chair,and more.
Related Articles -
Mini 4D Cinema System Manufacturer, 3D Cinema System Manufacturer,
|
