Gold production at the Kumtor mine in 2016 was
As noted, gold sales were
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
Contributions made within the
Outlook for 2017
Kumtor’s gold production forecast is expected to be in the range of
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
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
Kumtor successfully implemented various continuous improvement initiatives throughout the year resulting in higher throughput in the mill and lower unit costs.
Scott Perry
«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