Discontinuing equity coverage of Centerra Gold

Yerkin AbdrakhmanovFebruary 11, 2014

February 11, 2014

We drop the equity research coverage of Centerra Gold. The decision was driven by the worsening investment climate in Kyrgyzstan and the limited interest from our clients. In the recent months, Kyrgyzstan’s parliament made several attempts, some successful, to unilaterally revise the terms of the agreement with the company. Finally, last week Kyrgyz parliament agreed to a 50% ownership in Kumtor JV, instead of an earlier demanded 67% stake. We believe the decision reduces political risks for the company in the near term, but does not eliminate them.

Our final rating on the stock was Hold with a target price of 6.4 CAD per share.  Research on the stock can be accessed on our corporate website.

Our prior ratings and price targets can no longer be relied upon.