Centerra Gold Inc. and Kumtor Gold Company have summed up their operating results in the first half of 2019. Kumtor Gold Company produced 301,373 ounces or 9,373.76 kg of gold and contributed more than 4.22 billion soms in taxes and mandatory payments.
Kumtor produced 151,065 ounces of gold in the second quarter compared to 83,802 ounces of gold in the same period of 2018. The increase is primarily due to processing ore with higher grades from cut-back 18 and 19 stockpiles and higher recoveries, compared to lower grade stockpiled ore from cut-back 17 and Sarytor processed in the second quarter of 2018. During the second quarter of 2019, Kumtor’s average mill head grade was 3.48 g/ton with a recovery of 82.3% compared to 2.27 g/ton and a recovery of 70.3% for the same period in 2018.
Gold sales in the second quarter of 2019 were 153,307 ounces, or 4,768.38 kilograms. Total revenues from gold sales in the second quarter of 2019 were $197.7 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.
Mining costs, including capitalized stripping, were $52.4 million in the second quarter of 2019, down by $0.8 million YoY. Lower costs in the second quarter of 2019 include lower diesel costs ($1.9 million) due to lower mine production and lower consumption rates resulting from decreased haulage distance and weather delays.
Milling costs amounted to $18.1 million in the second quarter of 2019 compared to $16.6 million in the comparative quarter of 2018. The increase is mainly due to higher carbon fines processing costs compared to the same period of 2018 (when carbon fines processing was not fully operational), higher grinding media costs due to the processing of a harder ore type and higher cyanide costs mainly due to higher prices and consumption rates. This was partially offset by lower liner costs due to the timing of mill liner replacements.
Site support costs in the second quarter of 2019 was $12 million compared to $12.8 million in 2018. The decrease is attributable primarily to lower contractors’ service costs ($0.6 million) resulting from fewer contractors, and lower costs for camp supplies.
DD&A associated with sales increased to $43.6 million in the second quarter of 2019 from $31 million in the comparative period, mainly due to higher ounces sold and higher amortization of capitalized stripping resulting from the release of ore from cut-back 19.
All-in sustaining costs on a by-product basis per ounce sold, which excluded revenue-based tax, were $562 in the second quarter of 2019 compared to $1,071 in the same period of 2018.
The decrease was mainly due to higher ounces sold and lower capitalized stripping. The decrease in capitalized stripping resulted from accessing ore at cut-back 19 West in June 2019, at which time capitalization of deferred stripping costs ceased, with subsequent stripping costs accounted for in inventory.
Including revenue-based taxes, all-in sustaining costs on a by-product basis per ounce sold was $744 in the second quarter of 2019 compared to $1,254 in the same period of 2018. The decrease was mainly due to lower all-in sustaining costs, partially offset by higher revenue-based taxes resulted from increased sales revenue achieved in the second quarter of 2019. (24.kg/Ukrainian metal)