Centerra Gold, that owns 
the  Boroo mine in Mongolia, has
reported higher-than-expected quarterly earnings, as increased production and
strong gold prices helped the miner return to profit after a loss last year.
The Canadian gold miner”s net earnings came in at USD29.8 million. That
compares with a net loss of USD79.6 million a year earlier, when lower gold
recoveries and increased costs took a toll. Revenue was 46 percent higher at
USD152.2 million.

Regulatory issues with the government have plagued the
company’s operations in Mongolia since June of 2009. The Boroo heap leach
facility, which uses cyanide to extract gold from crushed ore, has been shut
down since April 2009 pending a final operating permit and Centerra has removed
all heap leach production from its 2010 production guidelines. Even so, gold
production at the Boroo mine rose for the quarter on increased recoveries.

Centerra”s current production guidance does not include
any gold production from its Gatsuurt project in Mongolia. “Due to the
potential for delays in receiving the required approvals for the Gatsuurt
project, Boroo has initiated an alternative plan that is expected to allow the
Boroo operation to achieve the production within the forecasted range of ounces
produced,” Centerra said.