Basic Operating and Financial Results
At the Kumtor mine gold production in 2015 was 520,694 ounces* or 16,195.4 kg.
Gold sales in 2015 were 520,517 ounces or 16,189.9 kg with a revenue totaling $604.5 million**. The table below displays Kumtor’s basic operating and financial results:
|Unaudited ($ millions, except as noted)||
Three Months Ended December 31,***
Year Ended December 31,***
|Revenue from gold sales to Kyrgyzaltyn **||144.5||346.2||(58%)||604.5||694.6||(13%)|
|Cost of sales – total ****||112.1||171.5||(35%)||367.9||444.5||(17%)|
|Cost of sales – $/oz sold ****||852||594||43%||707||792||(11%)|
|Tonnes mined – 000s||45,418||42,786||6%||169,527||191,723||(12%)|
|Tonnes ore mined – 000s||3,941||6,615||(40%)||6,583||8,640||(24%)|
|Tonnes milled – 000s||1,504||1,502||0%||5,729||5,840||(2%)|
|Average mill head grade – g/t||3.42||7.40||(54%)||3.57||3.90||(8%)|
|Recovery – %||79.9||82.2||(3%)||78.8||78.0||1%|
|Gold produced – ounces*||130,610||291,635||(55%)||520,694||567,693||(8%)|
|Gold produced — kg||4 062,4||9 070,9||(55%)||16 195,4||17 657,2||(8%)|
|Gold sold – ounces*||131 549||288 851||(54%)||520 517||561 154||(7%)|
|Gold sold – kg||4,091.6||8,984.3||(54%)||16,189.9||17,453.8||(7%)|
|Average realized gold price**** – $/oz||1,098||1,198||(8%)||1,161||1,238||(6%)|
|Adjusted operating costs**** – $/oz||392||244||61%||356||357||(8%)|
|All-in sustaining costs**** – $/oz||553||378||46%||731||779||(6%)|
|All-in costs**** – $/oz||572||418||37%||758||851||(11%)|
|All-in costs including taxes**** – $/oz||725||585||24%||921||1,024||(10%)|
|Capital expenditures (sustaining)**** – $millions||11.8||13.4||(12%)||50.5||48.7||4%|
|Capital expenditures (growth)**** – $millions||2.5||11.5||(78%)||14.2||40.1||(65%)|
|Capital expenditures (stripping)**** – $ millions||12.1||32.5||(63%)||210.6||261.1||(19%)|
* – One Troy ounce equals to 31.10348 grammes.
** – Unless specified otherwise, all dollar figures in this news release are in US dollars.
*** – Results may not add due to rounding
**** – Adjusted operating costs, all-in sustaining costs, all-in costs and all-in costs – including taxes (in $ millions and per ounce sold), as well as average realized gold price per ounce sold, cost of sales per ounce sold and capital expenditures (sustaining and growth) are non-GAAP measures and discussed under “Non-GAAP Measures”.
Payments to the Kyrgyz National Budget and Mandatory Contributions
During the twelve months of 2015, contributions to the national budget in taxes, deductions to the Social Fund and other mandatory payments exceeded $123 million, which according to the KR National Bank’s exchange rate as at December 31, 2015, amounts to approximately 9.373 billion soms.
As of Dec 31, 2015
|Gross Proceeds Tax||92,936.47|
|Issyk-Kul Development Fund||7,148.96|
|Подоходный налог с сотрудников||4,269.06|
|Платежи в Социальный фонд КР||17,049.19|
|Налог на доходы нерезидентов||709.17|
|Прочие налоги и обязательные отчисления||363.16|
|Официальный курс доллара США по отношению к сому КР на 31 декабря 2015 г.||75.8993|
|Эквивалент уплаченных платежей в тыс. сомов||9,372,925.39|
Note: Under the Agreement on New Terms dated as of April 24, 2009, the revenue-based tax and contributions to the Issyk-Kul Region Development Fund are estimated based on actual cash revenues from sales during the period under review.
Payments within the Kyrgyz Republic
Contributions made within the Kyrgyz Republic in 2015 (including taxes, refining, domestic suppliers, infrastructure, charities, etc.) have exceeded $256 million.
In all, contributions made within the Kyrgyz Republic between 1994 and 2015 have exceeded $2.964 billion
1994 – 2015
|Taxes, customs & other mandatory payments||98.708||898.626|
|Social Insurance Fund||17.049||149.890|
|Issyk-Kul Development Fund||7.149||50.045|
|Licenses & permits||0.269||3.056|
|Pollution tax and payments to the Environment Protection Agency||0.310||4.679|
|Payments to Kyrgyzaltyn||0.298||12.347|
|Revenue from the sale of Centerra shares||–||86.000|
|Purchases in the Kyrgyz Republic:
– supplies & services
|– roads outside the mine site||1.867||41.149|
|– Tamga-Kumtor power-transmission line||–||41.612|
|KGC employees’ net wage||56.026||569.955|
|Education, scholarships & training||0.504||5.153|
|Sponsorships & sustainable development projects||2.008||27.417|
|Payments to communities||–||4.400|
Kumtor’s Impact on the Macroeconomic Performance of the Kyrgyz Republic
According to preliminary reports of the KR National Statistics Committee,
• Kumtor’s share in KR GDP in 2015 was 6.8 %;
• Kumtor’s share in the aggregate industrial output was 22.5 %;
• Gold’s share in the national exports in 2015 was 39.7 %.
Daniel Desjardins, President of Kumtor Gold Company, stated, “I am pleased to report that we achieved our production guidance for the full year 2015. We beat our gold production guidance for 2015 due to relatively even quarterly gold production as compared to prior years when the majority of the ounces were produced in the fourth quarter.
Gold production for the full year 2016 at the Kumtor mine is forecast to be 480,000 to 530,000 ounces or 14.9-16.5 tonnes. In 2016, the company expects an increase in gold production in the latter half of the year after we have accessed the high-grade SB Zone in the third quarter of 2016”.
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 major overhauls and replacements of certain 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 relating to the ongoing Kumtor pit expansion ($17 million), dewatering projects ($6 million) and other items ($3 million).
The cash component of capitalized stripping costs related to the development of the open pit is expected to be $122 million of the $162 million total capitalized stripping in 2016.
The Kumtor open pit mine, located in the Kyrgyz Republic, is the largest gold mine in Central Asia operated by a Western-based producer. It has been in operation since May 1997 and, as of December 31, 2014, has produced approximately 10.42 million ounces or 324.1 tonnes of gold.
Kumtor Gold Company is the operator of the Kumtor project responsible for the entire production cycle.
Centerra Gold Inc. (Centerra) is a gold mining company focused on operating, developing, exploring and acquiring gold properties in Asia, Canada and other markets worldwide. Centerra is a leading North American-based gold producer and is the largest Western-based gold producer in Central Asia. Centerra’s common shares trade on the Toronto Stock Exchange (TSX) under the symbol CG. The Company is headquartered in Toronto, Ontario, Canada.
Additional information on Centerra and the full text of the news release on the 4th quarter and basic operating results of 2014 are available on SEDAR at www.sedar.com and www.centerragold.com. Information on KGC is available at www.kumtor.kg