RE:4th quarter centerra gold report stans mentioned
Cash provided by operations in 2014 totaled $376 million or $1.59 per share and the company ended the year with a solid balance sheet as our cash and short-term investments grew to $562 million or $486 million net of debt. During the year, we also extended our $150 million revolving credit facility with EBRD for another year. And this will provide us with additional liquidity going forward. Regarding our negotiations with the government of Kyrgyz Republic, we're continuing to work with the Kyrgyz government, Kyrgyzaltyn, and their advisors to restructure the Kumtor Project in accordance with the heads of agreement that we signed in 2014. And we're now in the process of negotiating the definitive agreements. As we've indicated in our news release, the issues raised by the Stans Energy litigation will have to be fully resolved by the Kyrgyz government before any restructuring transaction can be completed. In the meantime, maintaining continuous mining operations at Kumtor remains a priority for both ourselves and for the government. Like last year, we are continuing our discussions with the Kyrgyz government and the applicable state agencies to obtain the relevant approvals and permits for operation in 2015. As we stated in our news release, we believe our existing agreements with the Kyrgyz Republic in our view entitle us to all the necessary permits. We provided an update on our reserves and resources on February 9. Once again, this year, we've used a gold price of $1,300 to estimate our reserves. And after processing 776,000 contained ounces in 2014, our proven and probable reserves total now is estimated at 7.7 million ounces of contained gold. This reflects a decrease of 1.65 million contained ounces and substantially all of this can be attributed to the decrease in reserves at Kumtor, after reflecting the negative reconciliation, a new resource model and the new pick design. At Kumtor, proven and probable reserves total an estimated 6.1 million contained ounces of gold. And that's after accounting for processing 731,000 ounces of gold in 2014 and then a reduction of 1.6 million ounce of contained ounces. At the end of last year, and end of December 2014, we started work on the new Central Pit resource model and that was to account the negative block model reconciliation that we had experienced during the year. This came primarily in the fourth quarter. The net impact of the new resource model was to decrease the reserves by approximately 590,000 contained ounces. In addition to this change, the mine design was revised, as a result of the new resource model, and also to include, flattening of certain pit slopes that was required to mitigate geotechnical concerns. The new mine design has resulted in a decrease in probable reserves of 743,000 contained ounces. If you probably recall, during 2014, we have to build a buttress to limit the movement in the South Arm of the Davidov Glacier. The location of the buttress has impacted the ultimate pit wall boundary of the Central Pit, and so is resulted in a decrease of probable reserves by an additional 358,000 contained ounces. So those cumulatively have had a significant impact on the Central Pit reserves. In addition to this, we completed optimization of the Sarytor and Southwest open pits, which resulted in an increase of Sarytor of about 147,000 contained ounces, and a decrease on the Southwest Pit of probable reserves of 105,000 contained ounces. At Boroo, all the remaining reserves in the stockpiles actually were processed in 2014. The Boroo mill was closed in December, and is now being put on current maintenance. So the Boroo operation will continue to recover gold in 2015 from the heap leach bed. Reserves and resources at Gatsuurt were unchanged at an estimated 1.6 million contained ounces of reserves and 398,000 contained ounces of indicated resources. Single page view« Previous | page 2 / 5| Next »