President and CEO Scott Perry said the company had "derecognised" the assets and liabilities of Kumtor and recorded a loss on the change of control of $926.4 million in its second quarter results.
Kyrgyz seized control of the circa 500,000 ounce per annum Kumtor in May, citing what Centerra dubbed "groundless" corruption, tax and environmental claims, prompting the miner to seek international arbitration and take legal action in the US and Canada.
Centerra yesterday cut 2021 gold guidance to 270,000-310,000oz and reduced all-in sustaining costs on a by-product basis to $750-800/oz.
This compares with the original forecast of 740,000-820,000oz of gold and AISC of $850-$900/oz. Copper guidance was maintained at 70-80 million pounds.
Centerra said it was on track to achieve 2021 guidance at Oksut in Turkey and Mount Milligan in Canada, where it did not expect an impact from forest fires in the province.
It reported earnings from continuing operations of $33 million.
The net loss of $851.7 million compared with net earnings of $80.7 million a year earlier.
Perry said Centerra continued to be "financially and operationally strong".
It finished the quarter debt-free, with $882.9 million in cash and declared a C7c quarterly dividend.
"A generally messy quarter, with Kumtor being re-classified as a discontinued operation following its nationalisation by the Kyrgyz government and accounting for copper hedges rendering Mount Milligan's metrics not directly comparable to our estimates," Canaccord Genuity analyst Dalton Baretto said.
"Our view remains that the most probable outcome is the cancellation of [state-owned] Kyrgyzaltyn shares in exchange for the loss of Kumtor."
He said there was "some urgency" for the company to add one or more producing assets via M&A, given its cash position and Canaccord's forecast drop in consolidated gold production from Centerra's existing asset base from about 400,000oz in 2022 to circa 250,000oz in 2024.
Canaccord maintained a speculative buy rating but lowered its price target from $12 to $11.50.
Centerra shares (TSX: CG) are trading near a one-year low, closing down almost 2% yesterday to $9.04 to value it at $2.68 billion (US$2.1 billion).
