CGAU - Centerra Gold: The Kyrgyz Fiasco Generates Buying Opportunity

• Centerra will probably lose the Kumtor mine for good, but it doesn't mean that it won't get at least partial compensation.
• Even without Kumtor, Centerra should generate a cash flow of around $500 million next year if the current metals prices prevail.
• At a market capitalization of $2.05 billion and enterprise value of $1.12 billion, Centerra is very cheap.
• Further upside is provided by the potential restart of Molybdenum mines, development of the Kemess projects, and favorable ruling in the arbitration against Kyrgyzstan and Kyrgyzaltyn.

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