Gold production at the Kumtor mine in 2016 was 550,960 ounces or 17,136.78 kg. Kumtor Gold Company informed.

As noted, gold sales were 546,342 ounces or 16,993.15 kg with a revenue totaling $686.4 million.

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 2016 was 8%;
• Kumtor’s share in the aggregate industrial output was 23.4%.

Payments to the Kyrgyz national budget and mandatory contributions

During the twelve months of 2016, contributions to the national budget in taxes, deductions to the Social Fund and other mandatory payments exceeded $110 million, which according to the KR National Bank’s exchange rate as at December 31, 2016, amounts to approximately 7.633 billion soms.

Payments within the Kyrgyz Republic

Contributions made within the Kyrgyz Republic in 2016 (including taxes, refining, domestic suppliers, infrastructure, charities, etc.) have exceeded $238.450 million. In all, contributions made within the Kyrgyz Republic between 1994 and 2016 have exceeded $3.2 billion.

Outlook for 2017

Kumtor’s gold production forecast is expected to be in the range of 455,000 ounces to 505,000 ounces with 30% of the gold production expected to be in the fourth quarter.

At Kumtor, 2017 total capital expenditures, excluding capitalized stripping, are forecast to be $96 million. Spending on sustaining capital of $68 million relates primarily to major overhauls and replacements of the heavy duty mine equipment ($58 million), major overhauls and replacements of mill equipment ($3 million) and other items ($7 million). Growth capital investment at Kumtor for 2017 is forecast at $28 million and includes the relocation of certain infrastructure at Kumtor related to the life-of-mine expansion plan amounting to $9 million, tailings dam construction ($11 million), purchase of new mining equipment ($4 million), dewatering projects ($2 million) and other items ($2 million).

The cash component of capitalized stripping costs related to the development of the open pit is expected to be $172 million of the $234 million total capitalized stripping in 2017.

Commentary

Scott Perry, Chief Executive Officer of Centerra stated, «as we disclosed earlier, Kumtor had another strong year and we exceeded the mid-point (540,000 ounces) of Centerra’s favourably revised gold production guidance for 2016. I am pleased to report that Centerra also significantly beat its unit cost guidance for the year as the all-in sustaining costs were $682 per ounce sold. Our lower costs reflect Kumtor favourably exceeding its cost guidance with all-in sustaining costs of $640 per ounce sold for the year.

«Kumtor once again generated a significant amount of cash, after all capital expenditures and taxes — it generated $237 million in 2016. The Company continues its discussions with the Government of the Kyrgyz Republic to resolve all outstanding issues affecting the Kumtor Project in a manner that is fair to all of its stakeholders," he stressed.