Gold Investing News: Centerra Gold Sees Continued Pressure from Wage Inflation, Higher Oil Prices

“The biggest cost impact for us is wages due to inflation,” Pearson said. “Diesel prices are a big impact now. We source our fuel from Russia for both Kyrgyz Republic and Mongolia, and it is very difficult to hedge that material. You don’t hedge much on that. Both these countries get fuel at a price that is at a slight discount to world prices. What we try to do is contain our costs. We have renewed the mining fleet at Kumtor (mine) so our productivity is actually going up and is offsetting a bit of that inflation on the cost side of things.” In their third quarter of 2011, revenue rose to $278.4 million from $119.9 million in the year-ago quarter as the price of gold rose sharply. Centerra realized an average gold price of $1,705 per ounce for the third quarter of 2011, an increase from the $1,237 per ounce realized in the same quarter of 2010. To read the full article, click hereCenterra Gold Sees Continued Pressure from Wage Inflation, Higher Oil Prices

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