Kulov calls for board of centerra to resign . Centerra Gold Guide should be dismissed" - this statement was made chairman of the Coalition parliamentary majority Kulov today, April 3.
On request, the Government provided information on the main indicators of the updated mine plan developed by management and Centerra Gold "Kumtor Gold Company". According to the plan of mining operations appears that gold reserves at Kumtor mine is now reduced by 50 tons, or 21%. However, the planned increase in capital costs for a career in the $ 92 million increase in the cost of gold at $ 100 per ounce, and with all this 11% decrease predicted gold content.
According to Kulov given serious changes at the current price of gold cause a reduction of taxes paid through 2026 from 1.14 billion to $ 885 million and a decrease in net cash flow from $ 1,741 to $ 944. Thus, according to the international financial institutions higher capital costs and decline in gold production until 2020 will lead to an overall reduction in the net present value twice.
Negotiations on the "Kumtor": Senterra disagreed on a number of conditions in Kyrgyzstan 21
Thus, continues to head the coalition, there was a significant change in the conditions under which the government of Kyrgyzstan to predlozheniyuCenterra Gold opened negotiations on restructuring in 2013.
"Therefore, the implementation reached a preliminary agreement between the Government of the Kyrgyz Republic and Centerra Gold now is not that serious doubt, and, to put it bluntly, it is clearly disadvantageous to us. The value of Kumtor, based on the above figures, is significantly reduced relative to the remaining fields Centerra Gold, and this view is supported by foreign investment analysts. In March 2015 Centerra Gold has entered a new promising project HardRock, which invested the money earned by the way, from the Kyrgyz Kumtor. At Centerra Gold accounts accumulated about half a billion dollars will be invested in HardRock, "Gatsurt" and other assets of the company.
Management and Centerra Gold "Kumtor Gold Company" has already made a number of production errors that result in Centerra Gold and its shareholders, including "Kyrgyzaltyn", suffered extensive damage. The amount of damage could exceed $ 500 million, "- says Kulov.
And the company says errors:
• failure to plan by 50% in 2012 at the high prices of gold has led to the loss of profits of about $ 200 million;
• cancellation of underground mining deposits in 2012 led to a loss of $ 180.7 million;
• construction of infrastructure facilities destroyed instead of moving the mine waste rock dumps are assessed for 2013 at $ 78 million.
Geologists instructed to check the calculations "Kumtor" on stocks in the field 2
As a result of the wrong policy management Centerra Gold, said Kulov, capitalization of Centerra Gold has lost 70% of its value, that hit all the company's shareholders.
"The last mine plan, approved by Centerra Gold, has become a complete surprise to all, which suggests a possible hiding information about the real state of affairs at the Kumtor mine and unprofessional management" Kumtor Gold Company. "It is reasonable to assume that the information on production and technical condition of the mine has been brought to the Board of Directors Centerra Gold in its entirety. Accordingly, shareholders Centerra Gold had no reliable information on the state of affairs in the "Kumtor".
The conclusion is clear: the government should immediately submit to the shareholders of Centerra Gold question of the immediate resignation of the entire leadership of Centerra Gold. With regard to the decision of the Jogorku Kenesh on Kumtor, then a month of its implementation has already expired and the government, taking into account an updated mine plan must submit to Parliament a real and decisive action on the final solution of the problem of Kumtor in the interests of our country ", - concluded the Chairman of the Coalition of the parliamentary majority.