CAGDF - Centerra Gold: Mid-Tier Producer Punished By Political Unrest
- Centerra Gold suffered a 15% drop in its share price on Tuesday after acknowledging ongoing civil unrest in Kyrgyzstan, where their flagship Kumtor mine is located.
- Centerra is an 800,000 ounce a year gold producer with multiple operations, but Kumtor makes up about 70% of the company’s production.
- The company’s other operations in Canada and Turkey provide some diversification but are much lower quality assets.
- Positive Q2 results show the company is taking advantage of high gold prices, generating $246 million in free cash flow in the first half of 2020 and becoming debt-free.
- Centerra could look at developing its Greenstone JV project in Canada or an acquisition in a tier-one jurisdiction to reduce its reliance on Kumtor.
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Centerra Gold: Mid-Tier Producer Punished By Political Unrest