Daily Business News Mongolia

Centerra Gold Reports Third Quarter Earnings of $0.08 Per Share

TORONTO, ONTARIO–(Marketwire - Oct. 31, 2008) -

(This news release contains forward-looking information that is subject to the risk factors and assumptions set out on page 9 and in our Cautionary Note Regarding Forward-looking Information on page 12. All figures are in United States dollars.)

Centerra Gold Inc. (TSX:CG) today reported third quarter net earnings of $16.9 million or $0.08 per common share based on revenues of $139.4 million compared to net earnings before unusual items of $4.8 million or $0.02 per common share on revenues of $98.0 million in the same quarter of last year. In the third quarter of 2007 after reflecting unusual items, the Company recorded a loss of $90.4 million or $0.42 per common shares. (more…)

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Asgat and Boroo Gold Deposits are to be Excluded from Strategic List

The present Parliament, of which power is coming to an end, ratified the strategic deposit list for the first time. The term strategic deposit was incorporated in the legislation at the modifications to the Minerals law of 1997. However the current Parliament is very close to destroy the list they passed. It is trying to ratify the draft law on modifications to the Minerals Law passed in 2006.
Last Friday the first discussion of drafts was held, incorporating draft law initiated by 19 MPs including Ts.Damiran and other one, initiated by those such as E.Bat-Uul. It was incorporated in a draft law, initiated by Ts.Damiran and others that state ownership of strategic deposits would be 51 percent and in a one, initiated by E.Bat-Uul and others that investment agreement should be concluded on the basis of product-sharing contracts. (more…)

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Investment Is Forbidden or Pay 68 Percent Tax

Some parliamentarians boasted, “It is not so high tax rate. It should have been 80 percent and it is rather low. Miners should not have to worry about.”  

Starting from the previous year, Mongolia began to implement Windfall tax law. Thanks to taxations, state budget tends to exceed 2 trillion MNT. As assumed by politicians, copper price in the world market will be USD 6800, generating MNT 309.5 billion to state budget from Erdenet enterprise. Gold price is increased up to USD 590 and 20 tonne gold is to be mined of which gold to be obtained by Boroo gold company is excluded. MNT 53.8 billion is to be generated from windfall tax to be imposed on remaining 13 tonne gold to the state budget. (more…)

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Top 100 National Locomotives

The Government of Mongolia, along with National Chamber of Commerce and Industry selected Top 100 entities of the year 2007. According to the main criterion of the selection-tax payment, Mongolia-Russia joint enterprise “Erdenet” ranked first. Copper price in the world market has gone up. Its success could be drawn back by saying it is the public enterprise of which 51 percent is owned by Mongolia and 49 percent by Russia, though there is no way other than respecting efforts and contribution of the staff of this giant enterprise which paid MNT127 billion for entities tax, recording the sales of MNT820 billion in 2006. MCS followed the giant for the second time. Since Erdenet is a state enterprise, it means MCS led the private sector. It is said that through high level of tax payment, the company shows how transparent it is. MCS group paid tax and fee of MNT 13.5 bln in 2004, MNT23.1 bln in 2005, MNT32.5 bln in 2006 and MNT47.8 bln in 2007. Out of MNT 47.8 bln, MNT 24.7 bln go for excise tax and MNT 23.1 bln for other taxes and bills. It demonstrates that the group has dug not only into food industry but also into other businesses. MCS has paid MNT 116.9 bln taxes for last 4 years. If we assume over MNT2 billion is necessary for constructing a secondary school complex, this group alone paid taxes equal to building such 2 or 3 complexes. Following these two enterprises, major national investors such as Mobicom, Petrovis, Mongolian Telecommunication, Magnai trade, Tsairt mineral, Boroo Gold, NIC and Just rank in the first ten. (more…)

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