• Gold Production: Over 73,000 ounces in Q4 2024; full-year production over 167,000 ounces.
• Copper Production: 12.8 million pounds in Q4 2024; full-year production 54 million pounds.
• Free Cash Flow: $47 million in Q4 2024; $480 million generated since June 2023 at Oksut.
• Cash Balance: $625 million at the end of 2024.
• Adjusted Net Earnings: $37 million or $0.17 per share in Q4 2024.
• All-in Sustaining Costs (AISC): $1,296 per ounce in Q4 2024; full-year AISC $1,148 per ounce.
• Revenue from Gold Sales: Average realized price of $2,207 per ounce in Q4 2024.
• Revenue from Copper Sales: Average realized price of $2.88 per pound in Q4 2024.
• Molybdenum Sales: 2.9 million pounds sold at an average price of $22.67 per pound in Q4 2024.
• Share Buybacks: 1.8 million shares repurchased for $12 million in Q4 2024.
• Dividend: CAD0.07 per share declared in Q4 2024.
• 2025 Gold Production Guidance: 270,000 to 310,000 ounces.
• 2025 Copper Production Guidance: 50 million to 60 million pounds.
• 2025 AISC Guidance: $1,400 to $1,500 per ounce.

• Warning! GuruFocus has detected 4 Warning Signs with CGAU.

Release Date: February 21, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Centerra Gold Inc (NYSE:CGAU) reported strong free cash flow generation in the fourth quarter, driven by robust contributions from Mount Milligan.
• The company ended 2024 with a cash balance of $625 million, providing total liquidity of over $1 billion.
• Mount Milligan's site-wide optimization program has led to reduced operating costs and improved productivity.
• Centerra Gold Inc (NYSE:CGAU) is advancing key growth catalysts at Mount Milligan and Kemess, with a pre-feasibility study expected in the third quarter of 2025.
• The company remains committed to returning capital to shareholders, with $88 million returned in 2024 through share buybacks and dividends.

Negative Points

• Full-year 2024 gold and copper production at Mount Milligan was below guidance due to lower grades encountered.
• Oksut's 2025 gold production is expected to be lower, with all-in sustaining costs rising due to inflation in Turkey.
• The Goldfield project does not meet requirements for near-term development, leading to an impairment on the asset.
• Consolidated all-in sustaining costs are expected to rise in 2025, driven by lower gold production at Oksut and inflation impacts.
• The molybdenum business unit reported a free cash flow deficit in the fourth quarter, mainly related to spending on the Thompson Creek restart.

Q & A Highlights

Q: What is Centerra Gold's strategy for growing its gold business, particularly in Turkey and with the Goldfield project? A: Centerra Gold is committed to maintaining gold as its primary metal. The company is focused on unlocking value within its existing portfolio, particularly through the expansion of Mount Milligan and the Kemess project. While the Goldfield project is currently on hold, Centerra is open to strategic and commercial options, including M&A, to grow its gold business. The company is also committed to Turkey and is exploring greenfield exploration programs there. (Paul Tomory, President, CEO)

Q: With the rising gold prices, is Centerra considering increasing its capital returns to shareholders through dividends or buybacks? A: Centerra remains committed to its share buyback program, believing its shares are undervalued. The company prefers to allocate capital to gold growth opportunities, such as organic projects at Mount Milligan and Kemess, while maintaining current levels of dividends and buybacks. (Paul Tomory, President, CEO)

Q: What is the potential for improving gold recoveries at Mount Milligan, and what is the timeline for achieving this? A: Centerra is focused on improving gold recoveries at Mount Milligan. The company is targeting mid-60s recovery rates and is working on better understanding the geomat model and improving blending. The timeline for improvement is ongoing, with efforts to enhance recovery through technical studies and operational adjustments. (Paul Chawrun, EVP, COO)

Q: How might tariffs impact Mount Milligan's costs, and what measures are in place to mitigate this? A: Centerra does not anticipate significant impacts from tariffs on Mount Milligan's costs. The majority of costs are from Canadian suppliers, and the company is focused on cost reduction initiatives to offset any potential cost increases. (Ryan Snyder, EVP, CFO)

Q: What is the current strategy for the Goldfield project, and is a sale or joint venture being considered? A: The Goldfield project is currently on hold as it did not meet the company's thresholds for advancement. Centerra is open to strategic options, including a sale or joint venture, while focusing on other projects like Kemess. (Paul Tomory, President, CEO)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.