Canadian miner Centerra Gold remains financially and operationally strong, despite the seizure of the Kumtor mine, in Kyrgyzstan, says president and CEO Scott Perry.

“The situation involving our Kumtor asset does not impact on Centerra’s other operations and business,” he said on Tuesday, announcing the miner’s second-quarter results and a quarterly dividend of C$0.07 a share.

Despite believing that it remains the rightful owner, Centerra derecognised the assets and liabilities of Kumtor Gold Company during the quarter, as it cannot effectively exercise power over any relevant activities or affect the returns of the mine.

Centerra recorded a loss on the change of control of $926.4-million in the statement of earnings. Its net loss was $851.7-million, or $2.87 a share, and its adjusted earnings were $78.3-million, or $0.26 a share.

Centerra generated $60.3-million of cash from continuing operations in the quarter, including $73.6-million from Mount Milligan, in British Columbia, and $8.1-million from Öksüt, in Turkey.

Free cash flow totalled $30.7-million in the quarter, $50.4-million of which came from the Mount Milligan mine.

The miner ended the quarter with a debt-free balance sheet and a cash position of $882.9-million.

Centerra’s production from continuing operations was 49 854 oz at an all-in sustaining cost (AISC) on a byproduct basis of $676/oz. The Mount Milligan mine achieved record throughput of 5.6-mmillion tonnes, or 61 848 t/d, producing 54 675 oz of gold and 19.8-million pounds of copper at an AISC of $486/oz.

Owing to the seizure of the  Kumtor mine, in May, Centerra has updated its 2021 guidance and three-year outlook to exclude the gold mine.

Gold production is now forecast to total 270 000 oz to 310 000 oz and copper output 70-million to 80-million pounds at an AISC of $750/oz to $800/oz in 2021.

In 2022 and 2023, gold production would be sustained at 380 000 oz to 430 000 oz, while copper production would be 90-million to 100-million pounds in 2022, reducing to between 70-million and 80-million pounds in 2023.