Centerra Gold stock drops after Kyrgyz Republic state-owned company says it will divest its shares
CALGARY – The Kyrgyz Republic state-owned company, which owns 26 percent of the shares of Canadian mining company Centerra Gold Inc., said in a regulatory filing that it intends to sell about 19 percent of its shares. assets.
Shares of Centerra fell 6.5% to $ 8.40 on the Toronto Stock Exchange after the state-owned company, Kyrgyzaltyn JSC, announced plans to sell $ 14.8 million of its $ 77.4 million. Centerra shares.
Earlier this week, Centerra announced that the Parliament of the Kyrgyz Republic had passed a law that would allow the government to impose “external management” of its Kumtor gold mine if the operating company, Kumtor Gold Co. , violates certain Kyrgyz laws.
Centerra also said that Kumtor Gold Co. was ordered by a Kyrgyz Republic court last week to pay more than $ 3 billion in damages after a ruling that its past practice of placing waste rock on glaciers was illegal, adding that she had received other tax assessments that add to claims worth hundreds of millions of dollars.
Centerra says he believes the actions are a concerted effort to force him to give up the economic value or ownership of the Kumtor mine or to falsely justify a nationalization of the mine. He says he is determined to try to work with the authorities of the Kyrgyz Republic, but that he will not hesitate to use all legal avenues to protect his rights and interests.
In a report to investors, National Bank analyst Mike Parkin says he expects stock prices to remain volatile as Centerra struggles to register his position in the ongoing dispute and considers his options regarding the sale of shares.