Q3 2025 Centerra Gold Inc Earnings Call Transcript
Key Points
- Centerra Gold Inc (CGAU) generated nearly $100 million of free cash flow in the third quarter, driven by strong operational performance and elevated metal prices.
- The company increased its cash balance to over $560 million, demonstrating its ability to fund projects while returning $32 million to shareholders through share buybacks and dividends.
- The Mount Milligan pre-feasibility study extended the life of mine by approximately 10 years to 2045, with significant increases in proven and probable reserves.
- Centerra Gold Inc (CGAU) is advancing a renewable diesel pilot project at Mount Milligan to reduce greenhouse gas emissions, showcasing its commitment to sustainability.
- The company has a strong financial position with over $960 million in total liquidity, allowing it to fully fund its organic growth projects while continuing to return capital to shareholders.
- Mount Milligan experienced lower gold recovery in the third quarter due to higher pyrite content, impacting overall recovery rates.
- All-in sustaining costs on a byproduct basis were $1,461 per ounce at Mount Milligan, 14% higher than the previous quarter due to increased sustaining CapEx and lower ounces sold.
- The molybdenum business unit faced a free cash flow deficit of $54 million in the third quarter, mainly due to spending on the Thompson Creek restart and working capital increases.
- The life of mine optimization study at Oksut may require additional permitting if it results in an expansion of the pit, potentially delaying project timelines.
- The company faces challenges in optimizing the pyrite to chalcopyrite ratio at Mount Milligan, which has affected recovery rates and requires ongoing adjustments.
Thank you for standing by. This is the conference operator. Welcome to the Centerra Gold third-quarter 2025 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, ma'am.
Thank you, operator, and good morning, everyone. Welcome to Centerra Gold's third-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.
Our news published yesterday outlines our third 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 US dollars unless otherwise noted. Presentation
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