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Centerra Gold estimates loss on change of control of Kumtor at $926.4 million

Canadian company Centerra Gold Inc. announced filing of a material change report. In an official statement released on November 19, the company said that it ascribed no value to its interest in Kumtor Gold Company — its 100 percent owned subsidiary that holds Kumtor mine.

«A number of coordinated actions taken by the Kyrgyz Republic had ultimately resulted in the seizure of Kumtor mine by the Kyrgyz Republic and a loss of control of the mine by Centerra. As a result of the loss of control, the company deconsolidated the results of the Kumtor mine from its results for the second quarter of 2021, recognized a loss on the change of control of US$926.4 million in the second quarter of 2021,» the company’s statement says.

As noted, Centerra is now accounting for the Kumtor mine as a discontinued operation.

 The material change report has been filed at the request of the Ontario Securities Commission.

The head of the Cabinet of Ministers of Kyrgyzstan Akylbek Japarov made a statement today in connection with the decision of the Canadian company. «From the very first day, the Kyrgyz government called on the management of Centerra Gold Inc. to recognize the infliction of enormous damage to the nature and economy of our country. We believe that the international community will soon be convinced that it is not about infringing on the interests of investors. The Cabinet of Ministers will continue to actively defend the rule of law and the national interests of the people of the Kyrgyz Republic,» Akylbek Japarov said.