2015 preliminary operating results and 2016 guidance

published: 18 January 2016

Centerra Gold Inc. (Centerra) and Kumtor Gold Company announce that they exceeded their 2015 annual gold production guidance.

Gold production at the Kumtor mine was:

– 520,695 ounces,* or 16 195.4 kg, of gold for the full year 2015;
– 130,611 ounces, or approximately 4 062.5 kg, of gold was produced in the fourth quarter of 2015.

The Kumtor mine exceeded its annual production guidance with relatively even quarterly production in 2015 as compared to prior years when the majority of the ounces were produced in the fourth quarter.

2016 OUTLOOK

The Kumtor mine is expected to produce between 480,000 and 530,000 ounces, or 14.9 and 16.5 tonnes, of gold in 2016. At Kumtor this year, it is expected that gold production will be weighted more towards the second half of the year as the higher grade portion of the SB Zone will be accessed at the end of the second quarter.

At Kumtor, 2016 total capital expenditures, excluding capitalized stripping, are forecast to be $110 million**. Spending on sustaining capital*** of $84 million relates primarily to the major overhaul maintenance of the heavy duty mine equipment ($69 million), construction to raise the tailings dam ($6 million) and other items ($9 million).

Growth capital*** investment at Kumtor for 2016 is forecast at $26 million and includes the relocation of certain infrastructure at Kumtor related to the KS-13 life-of-mine expansion plan and dewatering projects.

The cash component of capitalized stripping costs related to the development of the Kumtor open pit is expected to be $122 million in 2016 of the $162 million total capitalized stripping for 2016 for Kumtor.

* – One Troy ounce equals to31.10348 grammes.
** – Unless specified otherwise, all dollar figures in this news release are in US dollars.
*** – Non-GAAP measure, see discussion under “Non-GAAP Measures” in the Centerra’s MDA filed on SEDAR.

Additional information on Centerra and the full text of the news release are available on SEDAR at www.sedar.com and the corporate website at www.centerragold.com

The full text of the press release can be found here

About Centerra. Centerra is a Canadian based gold mining company focused on operating, developing, exploring and acquiring gold properties in Asia, North America and other markets worldwide. Centerra is the largest Western-based gold producer in Central Asia. Centerra’s shares trade on the Toronto Stock Exchange (TSX) under the symbol CG. The Company is headquartered in Toronto, Ontario, Canada.
Additional information on Centerra is available on the Company’s web site at www.centerragold.com and at SEDAR at www.sedar.com.