Centerra Gold shares drop on cut production forecast

The Canadian miner expects lower production from its Kyrgyzstan-based mine.

BANGALORE (Reuters) - 

Centerra Gold Inc (CG.TO) cut its 2009 gold production forecast as the Canadian miner expects lower production from its flagship mine in Kyrgyzstan, sending its shares down as much as 4%.

Centerra, which is part-owned by uranium giant Cameco Corp (CCO.TO), said it sees 2009 gold production in the range of 620,000 ounces to 630,000 ounces. Earlier, it expected to produce between 680,000 ounces to 730,000 ounces.

Centerra Gold now expects to produce about 500,000 gold ounces from the Kumtor mine in the Kyrgyz Republic, compared to its previous forecast of 560,000 ounces to 600,000 ounces.

"At the Kumtor mine, the accelerated waste and ice movement experienced in the first half of 2009 continues," the company said in a statement. The company added that it was accelerating implementation of a plan to control the situation.

Centerra, however, said its production forecast for Boroo mine in Mongolia remains unchanged.

Shares of the Toronto, Ontario-based company were down 32 Canadian cents at C$7.44 Thursday morning on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Aradhana Aravindan)

© Thomson Reuters 2009 All rights reserved

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