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Centerra's income in the next two years will be provided due to gold produced at Kumtor mine

Centerra expects to produce between 480,000 oz. and 530,000 oz. gold in 2016 at all-in sustaining costs ranging from US$877 to US$968 per oz, Centrra CEO Scott Perry said the Northern Miner.

Kumtor will account for 100% of that total, though Perry hints the company could be closing in on construction decisions at a pair of advanced-stage assets in Eurasia, he said.

In November, Turkish regulatory authority’s approved Centerra's environmental impact assessment (EIA) for its Oksut heap-leach operation. Assuming the company receives its final permits, the project is slated to pour first gold by late 2017.

The US$221-million operation would produce around 110,000 oz. gold annually at all-in sustaining costs below US$500 per oz. Assuming a US$1,250 per oz. gold price Oksut carries a US$240 million after-tax net present value at an 8% discount rate and a 42.5% internal rate of return.

In 2015, Kumtor cranked out around 520,700 oz. of gold at all-in sustaining costs of US$814 per oz. Centerra was able to drop its cost per oz. by roughly US$40 year-on-year due to a 10% workforce reduction, optimization in its mill flowsheet, lower diesel costs, and favourable exchange movements. In addition, Kumtor now hums along at nearly 16,500 tonnes per day, where it was averaging less than 16,000 tonnes per day in early 2015.

From the words of Scott Perry, one can say that the profitable part of Centerra in the next two years will be provided exclusively by gold, produced at Kumtor mine.

According to experts’ calculations, gold reserves at Kumtor mine will operate for another 5-7 years, in case of 10-15 tons of gold produced annually.

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