Centerra Gold increased net income in the fourth quarter by 9.4%, thanks to a 22% year-on-year increase in gold prices. The company earned USD153.1 million, compared with USD140 million in the fourth quarter of 2009. Centerra owns the Kumtor mine, in Kyrgyzstan, and the Gatsuurt project in Mongolia. The firm ended operations at another Mongolian mine, Boroo, in November. Centerra had planned to replace the production from Boroo with ore from its Gatsuurt project, which is located about 50 km away. However, the firm is still waiting to hear how the project will be affected by a new water and forests law enacted in Mongolia and the final permitting for Gatsuurt will not be approved until the uncertainty under the new law is dealt with. CEO Stephen Lang last week said the company is “optimistic” the issue will be resolved, but the uncertainty over timing means Gatsuurt has not been included in 2011 forecasts
Gold price boosts centerra earnings
