According to Centerra Gold, the decrease in first-quarter gold production "reflects the processing of lower grade ounces mined from the upper benches in cutback 17, blended with low-grade stockpiled ore, as well as lower recoveries [....] In contrast, Kumtor mined and processed the final benches from cutback 16 that contained higher grade ore in the comparative quarter of 2015." A golden nightmare After a lawsuit in 2014 during which the then-chairman of state-owned gold company Kyrgyzaltyn was imprisoned for making illegal dividend payments, authorities have launched several searches at the company's Bishkek offices this year as part of investigations for financial and environmental violations. The troubled mining company is now facing a €90.4mn lawsuit for harming glaciers near its open pit mine, and an investigation into €177mn in dividends paid to Centerra in 2013, as well as pressures to change its management structure and dividend policy.