Loading ...Despite improved Kumtor ops outlook, Centerra’s stock falls on Kyrgyz uncertainty
VANCOUVER (miningweekly.com) – Canadian gold miner Centerra Gold on Monday lost 6.52% in early trading on the TSX after releasing third-quarter results before market open, as the company’s inability to use substantial cash generated from its flagship Kumtor mine, in Kyrgyzstan, weighed on investor sentiment.
Toronto-based Centerra said subsidiary Kumtor Gold Company (KGC) is restricted by an interim order of the Bishkek interdistrict court from transferring property or assets, declaring or paying dividends or making loans to Centerra.
While the order does not forbid KGC from continuing to use its cash resources to operate the Kumtor mine, cash generated from the Kumtor project continues to be held in KGC and is not being distributed to Centerra. The interim order intends to secure KGC’s potential liability for a claim brought by the Kyrgyz Republic State Agency for Environmental Protection and Forestry.