July 30, 2009 / 1:06 PM / in 8 years

UPDATE 1-Centerra posts second-quarter loss

* Posts Q2 loss of $0.36/shr vs profit of $0.26/shr

* Loss, ex-items, $0.14/shr vs profit of $0.06/shr (All figures are in U.S. dollars)

TORONTO, July 30 (Reuters) - Canada’s Centerra Gold Inc (CG.TO) posted a second-quarter loss on Thursday, as lower gold recoveries along with labor and regulatory concerns hurt production volumes and increased costs.

Net loss in the quarter was $79.6 million, or 36 cents a share, compared with a year-ago profit of $56 million, or 26 cents a share.

Excluding items, the company recorded a loss of $30.3 million, or 14 cents a share, compared with earnings of $13.8 million, or 6 cents a share.

The company, partly owned by uranium producer Cameco Corp (CCO.TO), said gold output totaled 110,457 ounces at a total cash cost of $667 per ounce produced. That compared with production of 158,303 ounces at a total cash cost of $489 per ounce, in the corresponding quarter of 2008.

Centerra and the government of Kyrgyzstan reached a new ownership agreement for Centerra’s Kumtor gold mine -- its key asset -- during the quarter, allaying fears the mine could be nationalized.

However, the company’s other operating mine, the Boroo in Mongolia, was hit by a worker’s strike, and the mine’s license was temporarily suspended.

The strike has since ended and the government of Mongolia has restored the company’s main operating licenses, but discussions continue with regulatory authorities regarding other issues. (Reporting by Euan Rocha; editing by Jeffrey Benkoe)

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