Q3 2024 Centerra Gold Inc Earnings Call Transcript
Key Points
- Centerra Gold Inc (CGAU) reported strong free cash flow generation in the third quarter, even after significant investments in the Thompson Creek restart.
- The company is on track to meet its consolidated production and cost guidance for the year, with stable cost performance in an elevated metal price environment.
- Centerra Gold Inc (CGAU) has made significant progress in its strategic plan, including securing an agreement with Royal Gold to evaluate Mount Milligan's long-term potential.
- The US molybdenum operations are expected to produce an after-tax NPV of $472 million and a 22% IRR, with Langeloth potentially generating $50 million of annual EBITDA.
- The company has a strong cash balance of $604 million, providing total liquidity of $1 billion, positioning it well for future strategic initiatives.
- Gold production at Mount Milligan is trending towards the lower end of the guidance range due to lower grades and oxidized material impacting recovery.
- All-in sustaining costs at Ãksüt are expected to be the highest in the fourth quarter due to lower production from lower grade areas.
- Inflation in Turkey is outpacing the devaluation of the lira, which may lead to increased costs at Ãksüt going forward.
- The molybdenum business unit reported a free cash flow deficit of $45 million in the third quarter, mainly due to spending on the Thompson Creek restart.
- There is a potential for Ãksüt's costs to exceed guidance due to higher royalties driven by elevated gold prices.
Thank you for standing by. This is the conference operator. Welcome to the Centerra Gold third quarter 2024 conference call. As a reminder, all participants are in a listen-only mode and the conference is being recorded. (Operator Instructions)
I would now like to turn the conference over to Lisa Wilkinson, Vice President, Investor Relations and Corporate Communications with Centerra Gold. Please go ahead.
Thank you, operator, and good morning. Welcome to Centerra Gold's third quarter 2024 results conference call. Joining me on the call today are Paul Tomory, President and Chief Executive Officer; Paul Chawrun, Chief Operating Officer; and Ryan Snyder, Chief Financial Officer.
Our release yesterday details our third quarter 2024 results. It should be read in conjunction with our MD&A and financial statements, both of which can be found on SEDAR, EDGAR, and our website. All figures are in US dollars unless otherwise noted. Presentation slides accompanying this webcast
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