Centerra Gold Recognizes US$926.4 Million Loss From Kumtor Mine Seizure
In the latest development related to the seized Kumtor mine, Centerra Gold Inc. (TSX: CG) reported on late Friday that it has filed a pertinent material change report on its SEDAR profile. The move is upon the request of the Ontario Securities Commission after its review of the recent developments.
The mining firm is starting to recognize the loss of control on the mine after the Kyrgyzstan government seized the property and the operations from the Canadian firm. In June 2021, the company’s wholly-owned subsidiaries Kumtor Gold Company and Kumtor Operating Company, which own and operate the Kumtor mine in Kyrgyzstan, filed for bankruptcy to attempt to preserve their value.
The report stipulates changes in the firm’s Q2 2021 financial report, including deconsolidation of results of the Kumtor mine from the company’s results, recognizing a loss of US$926.4 million due to loss of control, ascribing no value to its interest in Kumtor Gold Company, and accounting the mine as a discontinued operation.
In late September 2021, the firm filed an application for immediate relief against Kyrgyz Republic in an effort to prevent the latter from deviating from the original plans for the mine. This happens weeks after the Central Asian nation has put the Canadian firm’s former directors on the state’s wanted list.
The mining firm reported Q3 2021 financials earlier this month, highlighting US$220.6 million in revenue which is a decline from Q3 2020’s revenue of US$251.2 million.
Centerra Gold Inc. last traded at $9.85 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
