2 Golds With Potential, and Risk to Match

Article Excerpt

CENTERRA GOLD $14.50 (Toronto symbol CG; SI Rating: Speculative) (416-204-1953; www.centerragold.com; Shares outstanding: 216.2 million; Market cap: $3.1 billion) owns 100% of the large Kumtor gold mine in Central Asia and 95% of the Boroo gold mine in Mongolia. Cameco Corp. owns 53% of Centerra. The two mines have proven reserves of over 6.2 million ounces of gold. Centerra’s share of production from the two mines is forecast at around 700,000 ounces next year. That’s down from an original forecast of 773,000 ounces because the pit wall moved unexpectedly this year at the Kumtor mine. The movement involved a significant portion of the northeast wall of the open-pit mine. Production will be affected well into 2007. Centerra’s main exploration-stage prospect is the 62%-owned REN project in Nevada. Its partner there is Barrick Gold, which operates mines nearby. Its other prospect is the 100%-held Gatsuurt property in Mongolia. In the three months ended September 30, 2006, Centerra made $0.05 a share, up from $0.04…

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