Centerra Gold (CG) Q2 2024 earnings summary

Executive summary

• Delivered solid operating performance in Q2 2024, with consolidated production of 89,828 oz gold and 13.5M lbs copper, maintaining consistent cash flow and $592M in cash.

• 2024 production and cost guidance remain unchanged across all business units, with strategic focus on maximizing asset value and advancing key projects at Mount Milligan, Thompson Creek, and Goldfield.

• Published 2023 ESG report, achieving 2026 gender diversity goals two years early and highlighting significant ESG achievements.

• Ongoing share buybacks and quarterly dividend declared, maintaining disciplined capital returns to shareholders.

• Integrated strategy for the Molybdenum Business Unit, with feasibility study results for Thompson Creek expected later in 2024.

Financial highlights

• Q2 2024 net earnings were $37.7M ($0.18/share), adjusted net earnings $46.4M ($0.23/share); sales included 83,258 oz gold and 11.7M lbs copper.

• Average realized prices: $2,097/oz gold, $3.79/lb copper, $22.10/lb molybdenum.

• Consolidated all-in sustaining costs (AISC) on a by-product basis were $1,179/oz in Q2; gold production costs $870/oz.

• Generated $2.6M cash from operating activities after statutory payments, with a free cash flow deficit of $27M in Q2.

• Ended Q2 with $592M in cash and $992M in total liquidity, including a $400M credit facility.

Outlook and guidance

• Full-year 2024 consolidated guidance for production, costs, and CapEx remains unchanged; only Öksüt Mine income tax guidance increased due to higher gold prices.

• Mount Milligan and Öksüt production and cost guidance unchanged; higher sales volumes expected in H2 2024, with Mount Milligan contributing ~60% of annual sales.

• Strong cash flow from operations expected at Öksüt in H2 2024 after significant Q2 statutory payments.

• Thompson Creek Feasibility Study and Langeloth Commercial Optimization Plan to be released later in 2024.

• Initial resource estimate for Goldfield expected by year-end.