Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Toronto Stock Exchange  >  Centerra Gold Inc.    CG   CA1520061021

SummaryChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Centerra Gold : Canada's Centerra settles mine dispute with Kyrgyzstan, shares up

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/11/2017 | 05:01pm CEST
To match Interview GOLD-KYRGYZSTAN/CENTERRA

Canadian miner Centerra Gold Inc said on Monday it has reached an agreement with Kyrgyzstan to settle all outstanding disputes with the Central Asian country over its Kumtor gold mine, the company's and the country's biggest.

All Kyrgyz environmental claims, other proceedings and court orders against Kumtor will be dropped and Centerra will be able to transfer funds out of the country that had been frozen by the government, the company said in a statement.

Centerra's shares rose 3 percent to a four-and-a-half year high of C$9.04 on the Toronto Stock Exchange.

Toronto-based Centerra is the biggest foreign investor and taxpayer in Kyrgyzstan, contributing up to 10 percent of the impoverished nation's gross domestic product. The two sides had been on a collision course as the country tried to extract more profit from the mine.

The Kyrgyz Republic, through its state-owned entity, Kyrgyzaltyn JSC, owns a 26.6 percent stake in Centerra.

"We view this development as positive," Canaccord Genuity analyst Rahul Paul said in a note to clients, adding that the settlement had been somewhat expected after Centerra said last week that talks were at an advanced stage.

Paul said that $299 million of Centerra's cash had been trapped in Kyrgyzstan. Centerra said it was in the process of transferring the cash over and above what it needed for working capital.

"First and foremost, this agreement is a comprehensive resolution to all of the outstanding matters affecting the Kumtor project," Centerra Chief Executive Scott Perry said.

The proposed settlement would affirm 2009 mine agreements, including tax and fiscal rules, the company said.

Under the deal, the Canadian miner will make a one-time payment of $50 million to a new, government-run nature development, alongside annual payments of $2.7 million.

Centerra will also pay $7 million to a cancer care support fund and another $3 million one year after the deal closes.

Following the deal, there will be no restrictions on Kumtor's ability to distribute funds to Centerra and all restrictions of movement on Kumtor's employees will be lifted, Centerra said.

Centerra and the government would also consider other potential investment opportunities in Kyrgyzstan, as well as at the Kumtor mine.

The settlement follows a bitter dispute during which the miner took the nation to international arbitration in 2016 over a disagreement on profit sharing.

Last year, Centerra was fined around $100 million for environmental damage by a court in Kyrgyzstan, while another regulator filed a $230 million lawsuit against the company.

(Reporting by Nicole Mordant in Vancouver and John Benny in Bengaluru; Editing by Sai Sachin Ravikumar and Dan Grebler)

By Nicole Mordant and John Benny

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on CENTERRA GOLD INC.
09/22 CALIBRE MINING : and Centerra Gold Mobilize Second Drill Rig to Test Newly Ident..
09/18 CENTERRA GOLD : 2017 Third Quarter Results Conference Call and Webcast
09/13 CENTERRA GOLD : First Asset Tech at 52-Week Highs
09/11 RIVERSIDE RESOURCES : and Centerra Gold Develop New High-Grade Gold Drill Target..
09/11 CENTERRA GOLD : Canada's Centerra settles mine dispute with Kyrgyzstan, shares u..
09/11 CENTERRA GOLD : at 52-Week High on Deal
09/11 CENTERRA GOLD : reaches settlement deal in long-running dispute with Kyrgyz Repu..
09/11 CENTERRA GOLD : Reaches Comprehensive Settlement with the Government of the Kyrg..
09/08 CENTERRA GOLD : Norbord, Centerra at 52-Week Highs
09/07 CENTERRA GOLD : shares spike after proposed settlement reached on Kumtor gold mi..
More news
News from SeekingAlpha
09/20 RESOURCE SECTOR DIGEST : Coeur Spends Big On Silvertip
09/12 Centerra Gold (CAGDF) Presents At Credit Suisse 2017 Global Steel & Mining Co..
08/01 Centerra Gold's (CAGDF) CEO Scott Perry on Q2 2017 Results - Earnings Call Tr..
07/31 Centerra Gold misses by $0.01
07/06 TOP GOLD STOCKS FOR 2017 : How Are We Doing?
Financials ($)
Sales 2017 1 163 M
EBIT 2017 316 M
Net income 2017 177 M
Debt 2017 198 M
Yield 2017 0,07%
P/E ratio 2017 9,86
P/E ratio 2018 13,46
EV / Sales 2017 2,02x
EV / Sales 2018 1,85x
Capitalization 2 149 M
Chart CENTERRA GOLD INC.
Duration : Period :
Centerra Gold Inc. Technical Analysis Chart | CG | CA1520061021 | 4-Traders
Technical analysis trends CENTERRA GOLD INC.
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 11
Average target price 8,11 $
Spread / Average Target 10,0%
EPS Revisions
Managers
NameTitle
Scott Graeme Perry Chief Executive Officer & Director
Frank H. Herbert President
Stephen A. Lang Non-Executive Chairman
Gordon D. Reid Chief Operating Officer & Vice President
Darren J. Millman Chief Financial Officer & Vice President
Sector and Competitors
1st jan.Capitalization (M$)
CENTERRA GOLD INC.43.99%2 149
POLYUS PAO--.--%28 067
NEWMONT MINING CORP10.45%20 206
BARRICK GOLD CORP-6.35%19 084
SAUDI ARABIAN MINING COMPANY (MA'ADEN)--.--%16 203
NEWCREST MINING LIMITED11.31%13 183