CGAU — Centerra Gold Inc.

Summary of Centerra Gold (CGAU) Q3 2025 Earnings Call

1. Key Financial Results and Metrics

• Free Cash Flow: Generated nearly $100 million in free cash flow.
• Production: Gold production was approximately 82,000 ounces, and copper production was 13.4 million pounds.
• Cash Balance: Increased to over $560 million, with total liquidity exceeding $960 million.
• Adjusted Net Earnings: Reported at $66 million or $0.33 per share.
• Sales: Over 80,000 ounces of gold and 13 million pounds of copper sold, with average realized prices of $3,178 per ounce of gold and $3.73 per pound of copper.
• All-in Sustaining Costs: Consolidated costs were $1,652 per ounce, with expectations to remain near the low end of guidance for 2025.

2. Strategic Updates and Business Highlights

• Mount Milligan Pre-Feasibility Study (PFS): Extended the mine's life to 2045, with an optimized plan for average annual production of 150,000 ounces of gold and 69 million pounds of copper from 2026 to 2042.
• Oksut Performance: Produced 49,000 ounces in Q3, exceeding expectations due to higher grades. The company reaffirmed production guidance for 2025.
• Thompson Creek Restart: Approximately 29% of the total capital investment is complete, with first production expected in the second half of 2027.
• Sustainability Initiatives: Advancing a renewable diesel pilot project at Mount Milligan to reduce greenhouse gas emissions.

3. Forward Guidance and Outlook

• Production Guidance: Oksut production is expected to be near the upper end of guidance for 2025. The company anticipates strong production into Q1 2026.
• Cost Management: Full-year costs for both Mount Milligan and Oksut are expected to be near the low end of guidance ranges.
• Growth Projects: Plans to publish a preliminary economic assessment for Kemess in Q1 2026, alongside ongoing development at Goldfield.

4. Bad News, Challenges, or Points of Concern

• Lower Recovery Rates: Mount Milligan experienced lower gold recovery due to a higher ratio of pyrite than previously modeled, impacting production efficiency.
• Molybdenum Business Unit: Reported a cash flow deficit of $54 million, largely due to expenses related to the Thompson Creek restart and working capital increases.
• Regulatory Risks: Potential permitting challenges related to the life of mine optimization study at Oksut, particularly if it involves expanding the pit.

5. Notable Q&A Insights

• Mount Milligan Recovery Issues: Management acknowledged challenges with recovery rates linked to mineralization changes and indicated plans to optimize feed blending to improve future recoveries.
• Oksut Optimization Study: The study aims to assess accumulated inventories and enhance gold recovery from existing leach pads, with low expected capital expenditures.
• Market Environment for Molybdenum: The favorable U.S. regulatory environment for mining may enhance opportunities for the molybdenum business, but the company does not currently require government funding for its projects.

This summary encapsulates the key points from Centerra Gold's Q3 2025 earnings call, highlighting the company's financial performance, strategic initiatives, and outlook while addressing challenges and insights from the Q&A session.