Centerra Gold (CG) Q3 2024 earnings summary

Executive summary

• Produced 93,712 ounces of gold and 13.7 million pounds of copper in Q3 2024, maintaining consistent operating performance and strong free cash flow generation, with cash and equivalents rising to $604 million despite $32 million spent on Thompson Creek restart.

• Advanced strategic initiatives, including Mount Milligan PEA, a new Royal Gold agreement, and U.S. molybdenum asset optimization, with Thompson Creek restart and Langeloth ramp-up progressing.

• Achieved notable ESG milestones, including awards for social responsibility and Indigenous employment programs.

• Increased share buybacks to $12 million and declared a quarterly dividend, maintaining a disciplined capital return approach.

Financial highlights

• Q3 2024 net earnings were $28.8 million ($0.14/share); adjusted net earnings were $39 million ($0.19/share).

• Q3 gold sales were 96,736 ounces at an average realized price of $2,206/oz; copper sales were 14.2 million pounds at $3.37/lb.

• Consolidated all-in sustaining costs (AISC) on a byproduct basis were $1,302/oz.

• Free cash flow was $37 million; cash flow from operations was $104 million.

• Ended Q3 with $604 million in cash and $1 billion in total liquidity.

Outlook and guidance

• On track to meet consolidated 2024 production and cost guidance: 370,000–410,000 oz gold and 55–65M lbs copper.

• Mount Milligan and Öksüt production and cost guidance ranges remain unchanged, with Mount Milligan trending to the lower end of gold production guidance.

• Expect lower AISC at Mount Milligan in Q4 due to higher sales and lower sustaining CapEx.

• Öksüt Q4 production expected to be 15–20% of annual total, with higher AISC due to lower grades and elevated royalty costs.

• 2024 capital expenditures guided at $157–$195 million, with sustaining capex at $101–$127 million.