Q2 2025 Centerra Gold Inc Earnings Call Transcript
Key Points
- Centerra Gold Inc (CGAU) reported strong earnings in the second quarter, driven by high commodity prices, with gold and copper production exceeding 63,000 ounces and 12.4 million pounds, respectively.
- The company is advancing its long-life copper-gold organic growth strategy in British Columbia, with studies at Mount Milligan and Kemess expected to be completed in the second half of 2025.
- The Goldfield Project in Nevada is progressing, with favorable gold prices and technical optimizations enhancing its value proposition, including an after-tax NPV of $245 million and an IRR of 30%.
- Centerra Gold Inc (CGAU) has implemented a targeted hedging strategy to lock in strong margins and safeguard project economics, while maintaining exposure to rising gold prices.
- The company has a strong balance sheet with over $920 million in liquidity, allowing it to fully fund its organic growth projects while continuing to return capital to shareholders through dividends and share buybacks.
- Mount Milligan encountered zones with challenging mineralization, resulting in lower-than-anticipated gold grades, although the company is addressing this with an infill and grade control drilling program.
- All-in sustaining costs at Mount Milligan increased by 10% due to higher sustaining CapEx and lower ounces sold, with revised cost guidance now between $1,350 and $1,450 per ounce.
- Oksut's all-in sustaining costs rose to $1,755 per ounce, driven by higher royalty expenses due to elevated gold prices and an updated royalty structure approved by the Turkish government.
- The molybdenum business unit reported a free cash flow deficit of $27 million, mainly related to spending on the Thompson Creek restart.
- Despite strong earnings, the company reported a free cash flow deficit of $25 million for the quarter, impacted by tax and royalty payments to the Turkish government.
Thank you for standing by. This is the conference operator. Welcome to the Centerra Gold second-quarter 2025 conference call. (Operator Instructions)
I would now like to turn the conference over to Lisa Wilkinson, Vice President of Investor Relations and Corporate Communications with Centerra Gold. Please go ahead.
Thank you, operator, and good morning, everyone. Welcome to Centerra Gold's second-quarter 2025 results conference call. Joining me on the call today are Paul Tomory, President and Chief Executive Officer; David Hendriks, Chief Operating Officer; and Ryan Snyder, Chief Financial Officer. Other members of the management team are available for the Q&A session.
Our news published yesterday outlines our second quarter 2025 results and is complemented by our MD&A and financial statements, which are available on SEDAR, EDGAR and our website. All figures are in U.S. dollars unless otherwise noted. Presentation slides accompanying
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