Centerra Gold, Inc. Q4 FY2024 earnings call

Management Statement and Operational Highlights

• Operational Performance: Steady Q4 performance; Mount Milligan produced ~38k oz gold and 12.8M lbs copper; Öksüt produced over 35k oz gold. Full-year 2024: Mount Milligan below guidance due to lower grades; Öksüt met midpoint of guidance.
• Strategic Initiatives: Progress on Mount Milligan pre-feasibility study; restart of Thompson Creek and progressive ramp up at Langeloth. Goldfield initial resource (706,000 ounces gold) not meeting near-term development requirements. Sustainability efforts: Permitting progress at Mount Milligan and Öksüt; GHG reduction analysis across operations.
• Cash Flow and Capital Allocation: Strong free cash flow in Q4; cash balance $625M. Q4 share buybacks: 1.8 million shares repurchased for $12M; quarterly dividend declared. Returned $88M to shareholders in 2024.

Segment Performance

• Mount Milligan: Fourth quarter produced almost 38,000 ounces of payable gold and 12.8 million pounds of payable copper. Full-year 2024 production: over 167,000 ounces of gold and 54 million pounds of copper (below guidance due to lower grades in Phases 6 and 9). 2025 guidance: gold production 165,000-185,000 ounces, copper production 50-60 million pounds. 2024 all-in sustaining costs (byproduct basis): $1,078 per ounce; 2025 expected: $1,100-$1,200 per ounce.
• Öksüt: Fourth quarter production over 35,000 ounces. Full-year 2024 production: over 200,000 ounces of gold (midpoint of guidance). 2025 guidance: gold production 105,000-125,000 ounces.
• Molybdenum: Fourth quarter sold ~2.9 million pounds of molybdenum at Langeloth at an average realized price of $22.67 per pound. 2025 guidance: molybdenum production 13-15 million pounds, aiming for Langeloth to become EBITDA positive.

Guidance

• 2025 consolidated gold production guidance: 270,000-310,000 ounces; copper production: 50-60 million pounds.
• All-in sustaining costs: $1,400-$1,500 per ounce (up from 2024).
• Sustaining capital expenditures: $97M-$119M; non-sustaining capital expenditures: $140M-$160M (driven by Thompson Creek restart).
• Molybdenum volume: 13-15 million pounds in 2025, aiming for Langeloth to be EBITDA positive.
• Exploration spend: $35M-$45M in 2025.

Risks

• Forward-looking statements subject to risks affecting actual results (e.g., regulatory changes, metal price fluctuations).
• Permitting and regulatory challenges for critical mineral projects like Mount Milligan.
• Operational challenges: Lower recoveries at Mount Milligan due to ore body complexities in Q4 2024.

Question and Answer

Q: Thinking around growing in gold going forward, interest in Turkey expansion and M&A?

A: Principal focus on unlocking value in portfolio; interested in Turkey assets if available; active on Greenfield exploration in Turkey.

Q: Impact of tariffs on Milligan costs?

A: Not terribly worried; 95% of Milligan's costs from Canadian suppliers; MPlus program to drive costs down.

Q: Reserve and resource update at Mount Milligan?

A: Grade increase due to domaining of mineralization; resequencing ore body; mid-60s recovery target.

Q: Strategy for Goldfield?

A: Put on shelf; open to sale/JV; focus on strategic/commercial options.

Q: Molybdenum operation partnership?

A: Open to strategic outcomes but with minimum valuation requirements; like the business.

Q: Öksüt reserve life extension?

A: Limited exploration potential; focus on Greenfield targets in Turkey.

Q: Kemess update?

A: Focus on near-surface mineralization; relooking at resource model; aiming for resource update in 2025.