Interim report for the three-month period from January – March 2012

Central Asia Gold AB 

24.05.2012 08:45
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Stockholm, 2012-05-24 08:45 CEST (GLOBE NEWSWIRE) -- 

                          Central Asia Gold AB (publ)
      Interim report for the three-month period from January - March 2012

                                        

  -- Consolidated total income for the reporting period amounted to MSEK 32.9
     (MSEK 34.3).
  -- Total production of gold during the first quarter was 36 kg (52 kg). 
  -- EBITDA for the period was MSEK -3.9 (MSEK -6.0). 
  -- The net result, after tax and non-controlling interest for the reporting
     period, was MSEK
-13.2 (MSEK -11.1) corresponding to an earnings per share of SEK -0.75 (SEK
     -0.69).
  -- In January 2012, Centerra Gold Inc. completed the second phase of
     investments in the Kara Beldyr joint venture and thereby earned another 20%
     ownership in the joint venture. CAG's ownership is currently 30% and the
     intention is to keep this share and participate in the future development
     of the license area.
  -- I
n February 2012, a preliminary resource estimate in accordance with NI
     43-101 for the Gord Zone of the Kara Beldyr joint venture was presented
     with an indicated resource of 289,000 ounces of contained gold and an
     inferred resource of 211,000 ounces of contained gold.



Significant events after the end of the reporting period

  -- In April 2012, CAG announced the successful completion of an operational
     outsourcing agreement for the alluvial production unit Gold Borzya.
  -- In May 2012, CAG announced the appointment of Denis Alexandrov as new CEO
     of CAG. It was also announced that the CFO, Johan Arpe will resign from CAG
     and for the time being the deputy CFO, Mihail Fedulov will be acting CFO.





Comments by the CEO

Dear fellow shareholders,

During the first quarter of 2012 the permitting of the Tardan heap leaching
plant continued as planned and during April 2012, several milestones in the
permitting process, such as the approval by State Expertize and the subsoil
usage agency, TuvaNedra was reached. Until early May, mining activities have
been conducted at Tardan to prepare ore for the heap leaching plant and the
production at the gravitational plant has continued at normal levels for the
season. We now have enough ore mined at Tardan for the planned production of
400-600 kg in 2012 and currently all focus is on finalising the permitting for
the phase two commissioning of the plant. The timetable for complete
commissioning of the plant is during the summer of 2012. 

As part of our strategy to phase out alluvial production and focus on hard rock
mining we have signed an operating outsourcing agreement for the alluvial
production unit Gold Borzya. We will remain the license holder and the gold
seller for the production unit, but all mining and processing operations are
outsourced to a local contractor. At Solcocon a major cost cutting initiative
has been taken in order to establish a profitable operation at Solcocon in
2012. The production at Solcocon is always low during the first quarter due to
the weather conditions at the site, but the production plan for 2012 remains at
200-220 kg. 

In January 2012, Centerra Gold Inc. completed the second phase of investments
in the Kara Beldyr joint venture and earned another 20% of the JV. We currently
own 30% of the Kara Beldyr joint venture and intend to keep this share and
participate in the future development of the license area that currently has
500,000 oz of indicated and inferred resources according to NI 43-101
standards. 

I am also very pleased to announce that the board has appointed Denis
Alexandrov to be the new CEO of CAG, effective from June 1, 2012. I will
continue to support the company as chairman of board. Denis has more than 15
years of experience in the mining industry, including executive management
positions in publicly traded mining companies. I personally feel a strong
confidence that Denis together with the new management team will ensure that
future challenges of CAG are met. 

At the same time, our CFO Johan Arpe has decided to leave CAG and I would like
to thank Johan for his commitment, hard work and achievements during his time
at CAG. Mihail Fedulov, our deputy CFO, who has a strong international
experience and a background from E&Y, Pwc and Deloitte, will step up as acting
CFO. 

All in all, we have executed on the strategy to move from alluvial production
into hard rock mining, we have passed several important milestones in the
commissioning of the Tardan plant and strengthened both the executive- and
local management of the group. I strongly feel that we now are at a turning
point in the development of the company and as a statement to emphasize this we
are proposing to change the company's name to Auriant Mining. Once the Tardan
plant is commissioned the operating cash flows will be stabilized and support
efficient and disciplined exploration program at our promising assets and
provide for the continued development of the company. 

It is with great confidence I am handing over the day-to-day management of the
company to the new CEO, but will of course strongly continue to support the
company with commitment and enthusiasm as a board member. 



Preston Haskell

Chief Executive Officer

The full report is attached and can be down loaded from the company website,
www.centralasiagold.se
News Source: NASDAQ OMX



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Language:     English
Company:      Central Asia Gold AB
              
               
              Sweden
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         SE0001337213
WKN:          
 
End of Announcement                             DGAP News-Service
 
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