Citizen protests leading up to the Feb. 27 parliamentary elections in Kyrgyzstan shut off access to
Opposition supporters, mainly in areas outside the capital, Bishkek, blocked roads after two opposition candidates were disqualified from standing. The protests were also meant as a show of strength in advance of the election, which was held to fill the 75-seat legislature. The largest opposition party, Ata-Jurt (“Fatherland”), had predicted that the government of president Askar Akayev would attempt to rig the election to favour pro-government candidates.
Observers from the Organization for Security and Cooperation in Europe said the election was competitive and orderly, but voting lists were inaccurate and fraudulent voting did occur. There were also instances of interference with the opposition during the campaign, and several non-state newspapers, radio stations and web sites were shut down by the government in the days before the election.
The results of the election were inconclusive, with 44 of the seats left to be decided in runoff elections on March 13. Three opposition candidates and 28 government supporters were elected with clear majorities. Turnout was about 60%.
The election had been seen as a possible “people-power” overthrow of the Akayev administration, which has governed Kyrgyzstan since the country broke from the old Soviet Union in 1991. Akayev, who had no links to the old communist government, came to power on independence, but has subsequently championed changes to the system to concentrate power in the presidency. He has said he would accept the term limit in the country’s constitution and step aside after the presidential election in October.
The protests blocking access to Kumtor, in the town of Tyup, broke up on the day before the election, and transport of employees and goods resumed. Centerra said the mine would still meet production forecasts of 131,000 oz. for the first quarter of 2005.
Year-end financials from Centerra showed substantial earnings and cash-flow gains over 2003, thanks to the company’s increased ownership of the Kumtor gold mine in Kyrgyzstan and the start of production from the Boroo mine in Mongolia.
In 2004, Centerra turned a US$50.6-million net profit, equivalent to US91 per share, on revenue of US$247.1 million. In 2004, Centerra was part of
The 2004 figures included a one-third share of production from Kumtor up to June 22 of that year, when the government of Kyrgyzstan converted its two-thirds share in the mine to a shareholding in Centerra. Boroo began commercial production in March 2004.
Centerra’s cash flow increased to US$88.5 million in 2004 from US$24.4 million in the previous year.
Attributable production was considerably greater in 2004, thanks to the incorporation of all the Kumtor production and to the full year from Boroo. In 2004, the company produced 641,000 oz., up from 226,000 oz. in 2003, and sold 619,000 oz., up from 235,000 oz.
Higher gold prices also helped, as the company realized an average of US$397 per oz., up from US$334 in 2003. It also closed the spread between its realization and the spot price to US$12, down from a difference of US$29 the previous year.
Total cash costs, company-wide, fell to US$189 from US$191 per oz.
Kumtor produced 677,553 oz. in 2004, up from 657,329 oz. in 2003, and cash costs per ounce fell to US$191 from US$202. Head grades and mill recoveries increased fractionally, while the stripping ratio fell substantially.
At Boroo, Centerra poured 217,998 oz. between the start of production in March and the end of the year. The mine’s cash cost of production was US$149 per oz.
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