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Centerra Gold posts US$31.7-million loss, including inventory writedown at Kumtor

TORONTO - Centerra Gold Inc. (TSX:CG) reports it had a US$31.7-million net loss in the second quarter, citing a number of factors including lower gold prices and a US$14.1-million inventory charge at its Kumtor operation in Kyrgyz Republic.

The loss, reported in U.S. currency, amounted to 13 cents per share and compared with a year-earlier profit of one cent per share or US$1.6 million.

Revenue was down seven per cent to US$119.5 million, from US$128.2 million in the second quarter of 2013.

The average price that Centerra got for its gold during the quarter was also down seven per cent, falling to US$1,285 per ounce from US$1,376 per ounce.

The Toronto-based company said Tuesday after markets closed that the inventory writedown at Kumtor, its biggest operation, reflected the difference between the cost of its stockpiles and the amount that it Centerra believes it could realize after further processing and sale of the gold.

Centerra produced 92,124 ounces of gold in the quarter, including 77,860 ounces at Kumtor and 14,265 ounces at its Boroo operation, compared to 99,426 ounces in the same period in 2013.

All-in costs per ounce sold, which excludes revenue-based tax in the Kyrgyz Republic and income taxes, was $1,722 for the quarter compared with $1,708 for the second quarter of 2013.

Centerra's corporate administration costs also increased, rising to $11.8 million from $7.2 million a year earlier, due to higher share-based compensation. The share-based compensation in the latest quarter was $5.3 million, up from $200,000 in the same period of 2013.

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