Centerra Gold, Inc. Q3 FY2025 earnings call

• Paul Tomory mentioned the third quarter saw robust margins and nearly $100 million in free cash flow, driven by strong operations at Oksut and elevated metal prices. Gold and copper production were ~82,000 ounces and 13.4 million pounds respectively. Cash balance increased to over $560 million. - Published Mount Milligan pre-feasibility study extending mine life to 2045 with average annual production of 150,000 ounces of gold and 69 million pounds of copper. - Advancing a renewable diesel pilot project at Mount Milligan for reducing greenhouse gas emissions. - David Hendriks detailed Mount Milligan's Q3 production and cost details, Oksut's strong Q3 performance with reaffirmed 2025 guidance, and initiated life of mine optimization study at Oksut. Thompson Creek restart progress with ~29% of total capital investment complete. - Ryan Snyder discussed Q3 financial results: adjusted net earnings $66 million or $0.33 per share, strong cash flow from operations ($162 million) and free cash flow ($99 million). Returned capital to shareholders via share buybacks and dividends, with $562 million cash balance at end of Q3.

In the third quarter, Mount Milligan produced over 32,500 ounces of gold and 13.4 million pounds of copper. All-in sustaining costs on a byproduct basis were $1,461 per ounce for Mount Milligan in Q3. Oksut produced 49,000 ounces in Q3, with all-in sustaining costs per ounce at $1,473. The molybdenum business unit sold ~3.1 million pounds of molybdenum in Q3, used $16 million of cash in operations and had a free cash flow deficit of $54 million. Revenue contributions: Mount Milligan contributed through gold and copper production, Oksut through gold production, and the molybdenum unit through molybdenum sales.

• Mount Milligan PFS reaffirms strong economics with after-tax NPV of ~$1.5 billion at $2,600 per ounce gold. - Thompson Creek restart expected to have first production in the second half of 2027. - Reaffirmed 2025 guidance for nonsustaining CapEx at Thompson Creek. - Board increased share repurchases to $100 million, with $64 million repurchased year-to-date. - Expect to remain active on share buybacks subject to market conditions.

• Impact of more complex mineralization at Mount Milligan affecting recovery. - Regulatory changes that could affect projects like Oksut's life of mine optimization study. - Fluctuations in metal prices affecting cash flow and financial results.

Q: On the solid quarter, noticed lower gold recovery at Mount Milligan in Q3. Can you provide color on what drove the lower recovery in Q3 as well as expectations for Q4?

A: Dave Hendriks said the ratio of pyrite to chalcopyrite was more pyrite than modeled, leading to low recoveries. Through the end of the year, they'll work through ounces for guidance by moving to higher material, and expect to address the pyrite to chalcopyrite ratio impacting recovery.

Q: For Oksut, with 1.5 million tonnes stacked at a grade of 1.82 grams per tonne, does this suggest strong grade quarter in Q1 '26 after production normalizes in Q4?

A: Paul Tomory said they reaffirmed guidance and are confident in reaching it, and the accumulated inventories in heaps will impact Q1 '26 production. They've initiated a study to exploit accumulated gold inventories in heaps.

Q: U.S.-based assets trending favorably, read-through to MBU optics and potential strategic deal with U.S. government?

A: Paul Tomory said the U.S. mining and metal space is more favorable, molybdenum is in high-performance steels for various sectors. There's no current strategic deal with the U.S. government but they monitor the situation.

Q: Follow up on Mount Milligan's grinding circuit impact and Oksut life of mine optimization study's permit needs?

A: Paul Tomory said at Mount Milligan, the PFS created a mine plan to address pyrite and grade issues, expecting to work through it starting Q1 next year. At Oksut, the life of mine optimization study would require permit modifications for residual leaching, with focus on accumulated inventories and potential sulfide extensions (early days).

Q: On Oksut, with life of mine optimization study, any oxide targets or regional opportunities at end of mine?

A: David Hendriks said the optimization study includes a 360 around the site and exploration, looking at regional opportunities and deposits in the area as part of the study