CGAU — Centerra Gold Inc.

Summary of Centerra Gold (CGAU) Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Q4 Adjusted Net Earnings: $83 million, or $0.41 per share.
• Full Year Adjusted Net Earnings: $229 million, or $1.12 per share.
• Sales: Over 68,000 ounces of gold and 12.5 million pounds of copper in Q4.
• Average Realized Prices: $3,415 per ounce of gold and $4.69 per pound of copper.
• Consolidated All-in Sustaining Costs (AISC): $1,646 per ounce in Q4; $1,614 per ounce for the full year, outperforming guidance.
• Cash Flow: Generated $103 million from operations and $12 million in free cash flow in Q4; $349 million in cash from operations and $95 million in free cash flow for the full year.
• Cash Balance: Ended the year with $529 million, total liquidity of $929 million.

2. Strategic Updates and Business Highlights

• Production: Full year production exceeded 275,000 ounces of gold and 50 million pounds of copper, surpassing guidance.
• Growth Projects:
  • Mount Milligan: Published a PFS extending mine life to 2045.
  • Kemess Project: Announced a PEA with a 15-year mine life and robust economics (NPV of $1.1 billion).
  • Goldfield Project: Development commenced in Nevada.
  • Thompson Creek Restart: 27% of infrastructure refurbishment complete; production expected mid-2027.
• Sustainability Initiatives: Received permits for Mount Milligan to operate through 2035, including increased throughput.

3. Forward Guidance and Outlook

• 2026 Production Guidance: Expected to produce between 250,000 and 280,000 ounces of gold and 50 million to 60 million pounds of copper.
• 2026 AISC Guidance: Anticipated between $1,650 and $1,750 per ounce.
• Capital Expenditures: Sustaining CapEx of $85 million to $105 million; non-sustaining CapEx of $260 million to $315 million, including significant investments in Thompson Creek and Goldfield.
• Exploration Budget: Expected to spend $40 million to $50 million on exploration.

4. Bad News, Challenges, or Points of Concern

• Langeloth Facility Incident: Operations suspended due to an explosion; repairs expected to cost $5 million to $10 million, with full operations anticipated to resume by May 2026. This will lead to increased working capital as inventories build during the shutdown.
• Cost Increases: AISC at Oksut expected to rise to $1,850 to $1,950 per ounce in 2026 due to higher royalty rates and inflation impacts in Turkey.
• Thompson Creek CapEx Increase: Total capital estimate increased by 5% to 10% due to inflation and additional maintenance requirements.

5. Notable Q&A Insights

• Langeloth Suspension: Management is exploring options for concentrate purchases during the shutdown and assessing inventory impacts.
• Mount Milligan Water Management: Ongoing projects are mostly sustaining in nature, with one new well field being developed.
• Kemess PFS: Focused on tightening assumptions and advancing engineering; potential for additional resources to be incorporated in future studies.
• Endako Mill Strategy: Currently not planned for immediate use; may be considered for sale at the right price, with a strategy to utilize Thompson Creek first.

Overall, Centerra Gold demonstrated strong operational performance and financial discipline in 2025, while also outlining significant growth initiatives for the future, despite facing challenges related to the Langeloth facility and rising costs at Oksut.