Centerra Gold (OTCPK:CAGDF) is a diversified mid-tier gold producer that operates their flagship Kumtor mine in Kyrgyzstan, Mount Milligan in Canada and the new Oksut operation in Turkey. The company’s share price was hit hard on Tuesday after reporting on civil unrest in Kyrgyzstan following disputed election results, sending the stock down 15%.

Looking at the share price performance over the past year, it’s clear to see the company has underperformed its peer group and the gold miners index (NYSEARCA:GDX) since a poor Q3 result last October. Since then, the company has reported two positive quarters that led to its share price starting to catch up to the sector, but further uncertainty at Kumtor has now caused it to slump again.

One-year share price performance

(Source: YCharts)

Kumtor: A World-Class Mine In the Wrong Place

Kumtor is by far the company’s most important asset, churning out between 550,000 and 600,000

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The Q2 Earnings Season for the Gold Miners Index (GDX) has finally come to an end and one of the last companies to report its results was Teranga Gold (OTCQX:TGCDF). While the majority of the sector was busy revising guidance lower and struggling with impacted operations, Teranga Gold has had an incredible start to FY2020. Not only has the company seen a better-than-expected ramp-up at its newest Wahgnion Mine, but also Sabodala is set to be transformed by being combined with the Massawa acquisition. Based on the company’s organic growth potential as Sabodala-Massawa Gold Complex [SMGC] ramps up and the potential for added production long term from the Golden Hill, I have moved the stock up to rank #3 among African gold producers. Therefore, I would view any pullbacks below C$12.60 as low-risk buying opportunities.

(Source: Company Presentation)

Teranga Gold released its Q2 results in mid-August and reported quarterly gold

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