Centerra Gold Stock Price, News & Analysis

Centerra Gold Inc. has taken significant steps to protect its interests following the seizure of the Kumtor Mine by the Kyrgyz Government. The company’s subsidiaries, Kumtor Gold Company and Kumtor Operating Company, have filed for Chapter 11 bankruptcy in the U.S. to secure a worldwide automatic stay against claims. Centerra emphasizes that this action won't affect its other operations, with over US$800 million in cash and US$1.2 billion in liquidity available. A strategic review is underway to explore alternatives for maximizing stakeholder value amidst ongoing disputes.

Centerra Gold Inc. has initiated legal proceedings against former Board member Tengiz Bolturuk for breaching fiduciary duties amid the government seizure of the Kumtor Mine. Centerra seeks to prevent Bolturuk from managing the mine and disclosing sensitive information. The company revealed Kyrgyzaltyn JSC's attempt to divert US$29 million through a forged payment before the mine's seizure. Centerra emphasizes its commitment to protect shareholder interests while disputing the Kyrgyz government's claims regarding operational standards at the mine.

Centerra Gold Inc. (CGAU) announced a conference call scheduled for May 18, 2021, to discuss developments in the Kyrgyz Republic. The call will take place at 8:30 AM Eastern Time and can be accessed by North American participants at +1 (800)-954-0601 and international participants at +1 (416)-981-9014. Additionally, the call will be webcast live on Centerra's website, with an audio recording available afterward. Centerra is a Canadian gold mining company operating several mines, including the Kumtor Mine in Kyrgyz Republic and the Mount Milligan Mine in Canada.

Centerra Gold Inc. (CGAU) has announced significant restrictions on Kyrgyzaltyn JSC, impacting its ability to manage shares in the company due to ongoing political issues in the Kyrgyz Republic. Kyrgyzaltyn is prohibited from transferring shares or voting and will not receive dividends related to Kumtor Gold Company. Additionally, Centerra accepted the resignation of director Tengiz Bolturuk, who is under investigation for recent statements about his involvement in Kyrgyz events. Centerra operates major mines in North America and Central Asia and will monitor the situation closely.

Centerra Gold Inc. has issued a statement regarding a resolution by the Parliament of the Kyrgyz Republic instructing the government to impose "external management" on the Kumtor Mine and its subsidiary, Kumtor Gold Company. Centerra claims this action violates their rights under existing investment agreements. As of May 15-16, the Kyrgyz government took control of the mine, prompting Centerra to suspend access for local employees and halt its 2021 guidance. The company emphasizes concerns over employee safety and significant risks to its operations, valuing over 2,700 local jobs.

Centerra Gold Inc. has initiated binding arbitration against the Kyrgyz Republic Government, seeking to enforce its investment rights concerning the Kumtor Gold Company. The company aims to prevent the enforcement of new legislation and tax claims that violate previous agreements. The Kyrgyz Government's recent actions, including a $3 billion fine and the threat of external management, pose risks to Centerra's operations. The Kumtor Mine is crucial to the Kyrgyz economy, contributing 12.5% to GDP in 2020. Centerra stresses the importance of constructive dialogue with the Government to resolve these disputes.

On May 11, 2021, Centerra Gold announced the successful election of 11 director nominees during its annual general meeting. A total of 168,096,447 shares were represented, equating to 56.69% of the company’s issued shares. Notably, Richard W. Connor received the highest approval rate at 98.25%, while Sheryl K. Pressler had the lowest approval at 69.50%. Detailed voting results are to be made available on SEDAR and EDGAR. Centerra operates three mines in North America and Central Asia, strengthening its position as a significant player in gold production.

Centerra Gold Inc. (CGAU) announced a quarterly dividend of C$0.05 per share, totaling approximately C$14.8 million (US$12.7 million), payable on June 10, 2021, to shareholders of record on May 27, 2021. This dividend qualifies as an eligible dividend for Canadian tax purposes. The company is currently monitoring COVID-19 impacts on its operations and future dividend declarations, especially concerning the Kumtor Mine due to legislative changes and nationalization risks in the Kyrgyz Republic.

CGAU reports significant updates impacting its market position. The latest production data shows a X% increase in output, contributing to a revenue rise of $Y million, translating to an earnings per share (EPS) growth of Z% year-over-year. The company also announced a strategic partnership aimed at enhancing operational efficiencies, expected to reduce costs by A%. With favorable market conditions, CGAU anticipates a positive outlook for the next quarter.