In second quarter earning press release, Centerra Gold had announced that they recognized a loss on the change of control of US$926.4 million in the second quarter of 202 and had ascribed no value to the Company’s interest in Kumtor Gold Company which is its 100% owned subsidiary that holds the Kumtor Mine. The company had also noted that the company accounts for the Kumtor Mine as a discontinued operation.
Centerra Gold confirmed the statement in its recent Material Change Report which has been filled at the request of Ontario Securities Commission.
Noting Centerra Gold officially announces that it no longer owns Kumtor mine, the head of the Cabinet of Ministers of Kyrgyzstan Akylbek Japarov evaluated the recent commented as and noted: “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.”
In response to Japarov’s statements The company commented: “As we have made clear in our announced bulletin, Kumtor Gold Company remains a wholly owned subsidiary of Centerra Gold and we will continue to take all legal steps to hold the Kyrgyz government accountable for the illegal takeover of the Kumtor mine.”
According to the Canadian company, there is nothing new in the information which is recently disclosed, only formalizing the announcement made on August 10, 2021 that the mine was accounted for as a discontinued business operation on the balance sheet of Centerra Gold.
