Kumtor gold production plummets nearly 70% in Q2
BISHKEK. Aug 23 (Interfax) - Kumtor Operating Company (KOC), the operator developing the Kumtor gold mine in Kyrgyzstan, produced 41,300 ounces (1.285 tonnes) of gold in the second quarter of this year, 69.7% less than in the same period of last year, when it produced 130,000 oz (just over 4.3 tonnes), the company said in a press release.
The main reasons for the drop were fewer tonnes milled, lower mill head grades (1.33 g/t versus 3.27 g/t in the second quarter of 2011) and lower recoveries (71.2% versus 82.6%).
Gold sales in the second quarter of 2012 were 40,228 ounces or approximately 1,251 kg. Revenues from gold sales in the second quarter of 2012 were $64 million. The average realized gold price was $1,592 per ounce.
Total tonnes mined for the second quarter of 2012 were 42.7 million tonnes compared to 38.3 million tonnes in the comparative quarter of 2011, an increase of 12% due to the increased capacity of the expanded mining fleet.
Total production costs, including amortization and depreciation, in the second quarter of 2012 were $40.7 million. Capital expenditures spent and accrued at Kumtor for the second quarter of 2012 were $110.0 million which includes $2.9 million for exploration.
"At present, we are continuing the prestripping to gain access to the southwest section of the pit and we are on schedule to access the ore in mid-September to provide ore for the Kumtor mill, when we will see a return to normal production in the fourth quarter of 2012. We are continuing our mitigation plan to deal with problems arising from the ice and waste movement to allow access to the southeast side of the pit," Michael Fischer, President of Kumtor Operating Company, was quoted as saying.
KOC has said gold production could fall 30%-33% to 12.13 tonnes-12.75 tonnes in 2012, from 18.1 tonnes in 2011, but that production could rise 60% in 2013 and another 25% in 2014.
KOC operates Kumtor on behalf of Canada's Centerra Gold Inc, which has said it is scaling its 2012 gold production target for Kumtor down roughly a third (from an original 17.8-19.4 tonnes) due to increased ice movement in the southeast side of the pit.
