Tag Archives: business

Kyrgyz directors at Centerra Gold argued against shares

BISHKEK, JAN. 13 2016, (The Conway Bulletin) — In an interview with local media, senior Kyrgyz government officials said they had pushed hard against the issue of an extra 4.6m shares in Centerra Gold, the Canadian mining company in which Kyrgyzstan owns a 32.7% stake.

Centerra Gold owns the Kumtor gold mine, Kyrgyzstan’s most important economic asset. The interview with local media again shows how far apart Kyrgyzstan and Centerra Gold are on their various strategies.

Kylychbek Shakirov, a government-appointed board member at Centerra Gold, told media that he and his two Kyrgyz colleagues voted against issuing the shares, as this measure would dilute the total stake that Kyrgyzstan owns in the company.

“The Board of Directors of the company at the extraordinary session on December 17, 2015, made the decision to issue 4.6m additional shares,” Mr Shakirov said.

“We failed to achieve cancellation of the previous decision because three members of the board voted against issuance of new stocks and 8 members voted for it.”

ENDS

(News report from Issue No. 263, published on Jan. 15 2016)

Georgian company to build new Tbilisi hotel

JAN. 11 2016 (The Conway Bulletin) — Georgian company Bloc Invest and Partnership Fund, a government operated business fund, will jointly build a three-star Radisson hotel in central Tbilisi. The construction of the $25m hotel will begin in the summer of 2016 and is planned to be completed in 2017. The new hotel will be built in the place of the Hotel Tori, a four-star hotel in the centre of the city. Major hotel chains have been piling into Tbilisi in the last few years.

ENDS

(News report from Issue No. 263, published on Jan. 15 2016)

Kabyldin leaves KazTransOil

JAN. 12 2016 (The Conway Bulletin) — Kairgeldy Kabyldin, former CEO of KazTransOil, quit as a director of the company, completing his exit from the Kazakh oil transport company. Earlier in December 2015, Mr Kabyldin quit as CEO of KazTransOil, which is owned by Kazakhstan’s Kazmunaigas. After Mr Kabyldin’s resignation, the board named Nurtas Shmanov as the company’s new CEO. He had been a director of KazTransOil since January 2011. Mr Kabyldin, 63, has worked almost his entire career in Kazakhstan’s oil and gas industry. Analysts expect him to be re-appointed to another role shortly.

ENDS

(News report from Issue No. 263, published on Jan. 15 2016)

Stock market: Centerra Gold, Central Asia Metals

JAN. 15 2016 (The Conway Bulletin) — Mining companies in Central Asia had different experiences this week.

In Toronto, Centerra Gold shares fell 6.6% to 7.01 Canadian dollars. The company’s optimistic results published on Jan. 11 gave its shares a short-lived boost at the beginning of the week, but the continuation of the row with the Kyrgyz government may be eroding investors’ confidence.

Kazakhstan-focused Central Asia Metals lost 8.2% in the week, but closed on an upward note at 128.75p on Thursday. Against this trend, KAZ Minerals gained 5% this week, closing at 94.5p.

Oil and gas companies continued to suffer through the lowest oil prices in a decade, now heading below $30/barrel. Tethys Petroleum, which had financial troubles in its operations in Tajikistan, lost 26% in London to close at 2.13p on Thursday. In the past week, Nostrum Oil & Gas shares lost 8.4% to 329.9p. Roxi Petroleum also lost 12.3% to close at 7.13p.

ENDS

(News report from Issue No. 263, published on Jan. 15 2016)

Armenia’s foreign trade stalls

JAN. 13 2016 (The Conway Bulletin) – Armenia’s foreign trade dropped by 20% in the year to the end of November, the state’s statistics agency said. In particular, the data showed that imports into Armenia had dropped by 26% to just under $3b, showing the impact of the current economic downturn.

ENDS

(News report from Issue No. 263, published on Jan. 15 2016)

Teliasonera sells its Uzbek unit value

JAN. 13 2016 (The Conway Bulletin) -Swedish telecoms company Teliasonera said that it would write $622m off the value of its Uzbek unit that it wants to sell. A corruption scandal has enveloped the Uzbek unit of Teliasonera and it has said that it wants to sell its entire Eurasian operations.

ENDS

(News report from Issue No. 263, published on Jan. 15 2016)

Kazakh mortgage holders protest

JAN. 12 2016, ALMATY (The Conway Bulletin) — Around 100 people demonstrated in Almaty, Kazakhstan’s financial capital, over the rising cost of servicing US dollar mortgages, an indicator of growing discontent over the worsening state of the Kazakh economy.

The protesters targeted two banks — ATF and Forte Bank — which they said were refusing to help homeowners with US dollar mortgages despite a 50% drop in the value of the Kazakh tenge. They carried a symbolic coffin filled with underwear and ripped up mortgage statements.

Sulubike Zhaksylykova was on the march. She is head of an NGO which is lobbying for banks to help mortgage owners.

“One of the main goals of the protest is to refinance mortgages in dollars according to people’s ability to pay,” she told The Conway Bulletin.

“There are many disabled people of first and second category who receive 26,000 tenge per ($71) month [of government benefits] and these banks require them to pay 100,000 tenge a month [in mortgage repayments].”

The Kazakh government last year released a 130b tenge ($355m) cash-pot which it handed to commercial banks to help them refinance homeowners’ mortgages. Ms Zhaksylykova, though, accused the banks of not doing enough to help people.

After the protest both ATF Bank and Forte Bank said they would work to improve individual mortgage repayments.

Public protests in Almaty are rare but as the economy worsens, emotions are running high.

The Kazakh economy has always had relatively high levels of household debt and after the Global Financial Crisis of 2008/9, Kazakhstan had one of the highest proportions of non-performing loans.

Analysts have now warned that bad mortgages may be the source of another debt crisis.

ENDS

(News report from Issue No. 263, published on Jan. 15 2016)

CPC increases flow from Kazakhstan to Russia

JAN. 11 2016 (The Conway Bulletin) — The Caspian Pipeline Consortium (CPC), a pipeline designed to transport oil from the Tengiz oil field in western Kazakhstan to the Russian Black Sea coast, said it had increased its output by 7% in 2015, in line with its expansion plans. CPC has now reached a throughput of 42.8m tonnes, up from just below 40m tonnes in 2014. Chevron, Lukoil, Shell, BG and ENI own stakes in CPC. The Tengiz oil field if one of Kazakhstan’s most important oil projects.

ENDS

(News report from Issue No. 263, published on Jan. 15 2016)

Kyrgyzstan’s Kumtor beats forecast

JAN. 12 2016 (The Conway Bulletin) — Canadian miner Centerra Gold said it had exceeded its 2015 production forecast and that output would be stable in 2016 at Kyrgyzstan’s largest gold mine, Kumtor. Kumtor produced 520,695 ounces of gold in 2015, or 97% of Centerra’s total production. The company said that in 2016 Kumtor will represent 100% of Centerra’s gold output. Kumtor is vital to the Kyrgyzstan economy, accounting for around 10% of its total GDP.

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(News report from Issue No. 263, published on Jan. 15 2016)

Georgia opens Tech Park in bid to create Silicon Valley of S.Caucasus

TBILISI, JAN. 14 2016 (The Conway Bulletin) — In a push to build the Silicon Valley of the South Caucasus, Georgia opened its new Tech Park in Tbilisi.

The project, backed by the government, aims to support young innovative entrepreneurs by offering free office and workshop space for three months and access to what has been dubbed the “Fab Lab” with the latest cutting-edge tech tools such as 3D printers and a laser cutter.

Georgian PM Giorgi Kvirikashvili said that developing the country’s entrepreneurial base was key to helping Georgia through its current economic slump.

“This is a direct investment in the future of Georgia,” media quoted Mr Kvirikashvili as saying at the opening of the site.

Tech Park, which covers roughly the area of two football pitches, took one year to build and cost 5m lari ($2m).

The concept behind Tech Park Georgia is that well-worn idea of casual interaction where employees from different companies, back- grounds and disciplines can mingle easily in learning centres, company offices, shared spaces and recreational areas.

Mariam Lashkhi of the Georgian government’s Innovation and Technology Agency explained.

“We first had to build the community, so we held hackathons, to see who is out there and to bring people together. We were amazed with the projects the young people came up with. Several startups were created after the hackathons, which are now joining the Tech Park,” she said.

Boris Kiknadze has just moved his two companies, the charity crowd- funding platform WeHelp and the online advertising firm and Wifisher, to the Tech Park.

“I really like that it brings together a collective of people, programmers, developers, business managers,” he said.

“And it’s a really nice place to hang out, where you can create new things, and build a better future.”

ENDS

(News report from Issue No. 263, published on Jan. 15 2016)