Centerra Gold Inc. (Centerra) and Kumtor Gold Company (KGC) have summed up their operating results in the second quarter of 2018. In the first six months of 2018 KGC produced 184,023 ounces or 5723.76 kg of gold and contributed more than 3.65 billion soms in taxes and mandatory payments, the Media Relations Department of the company reported.
Kumtor produced 83,803 ounces of gold in the second quarter of 2018 compared to 138,623 ounces in the same period of 2017. The decrease in ounces poured is the result of processing the stockpiled ore from the Sarytor Pit, which is lower in grade and recovery, as compared to the stockpiled ore processed from cutback 17 in the comparative period of 2017. During the second quarter Kumtor’s average mill head grade was 2.27 g/ton with a recovery of 70.3% compared to 3.53 g/ton and a recovery of 79.3% in the same period in 2017.
Gold sales in the second quarter were 90,620 ounces, or 2.82 tons. Total revenues from gold sales in the second quarter reached $117.3 million.
The Dore bars produced by the Kumtor mine are purchased by Kyrgyzaltyn JSC for processing at the Kara-Balta refinery pursuant to a Gold and Silver Sales Agreement signed by KGC, Kyrgyzaltyn and the government of the Kyrgyz Republic. Kyrgyzaltyn JSC enjoys the exclusive right to sell refined gold and silver both within and outside the Kyrgyz Republic.
Operating costs (on a sales basis), including capitalized stripping, decreased in the second quarter by $5.7 million, to $81 million compared to $86.7 million in the same period of 2017.
Mining costs, including capitalized stripping, totaled $53.6 million in the second quarter, up by $5.3 million YoY. Increased costs in the second quarter included higher diesel costs ($7.2 million), due to higher fuel prices and higher consumption resulting from increased haulage distance and heavy equipment productivity hours, and higher labor costs ($0.6 million) mainly due to unfavorable exchange rate fluctuation. Higher costs were partially offset by lower maintenance costs ($2.9 million) resulting from more repairs on the haul trucks and Liebherr shovels conducted in the second quarter of 2017, as compared to the same period of 2018.
Milling costs amounted to $16.6 million in the second quarter of 2018 compared to $16.5 million in the comparative quarter of 2017. Higher mill reagents costs ($1.1 million) primarily resulting from increased mill throughput, were partially offset by lower maintenance activities performed during the second quarter of 2018.
Site support costs in the second quarter of 2018 totaled $12.8 million compared to $11.3 million in 2017. The increase is attributable primarily to higher costs for food and other supplies, partially offset by lower insurance premiums.
Depreciation, depletion and amortization associated with sales decreased to $31.4 million in the second quarter of 2018 from $41 million in the comparative period of 2017, mainly due to fewer ounces sold. All-in sustaining costs on a by-product basis per ounce sold, which excluded revenue-based tax, was $1,071 in the second quarter of 2018 compared to $782 in the same period of 2017. The increase was mainly due to lower ounces sold that was partially offset by lower capitalized stripping costs. Including revenue-based taxes, all-in sustaining costs on a by-product basis per ounce sold was $1,254 in the second quarter of 2018 compared to $959 in the same period of 2017. The increase was mainly due to higher all-in sustaining costs, partially offset by lower revenue-based taxes resulting from lower sales revenue in the second quarter of 2018.
During the second quarter contributions to the national budget in taxes, deductions to the Social Fund and other mandatory payments have totaled 1.69 billion soms. (24.kg/Ukrainian metal)