Centerra Gold (CG) Q3 2024 earnings summary

Executive summary

• Produced 93,712 ounces of gold and 13.7 million pounds of copper in Q3 2024, maintaining consistent operating performance and strong free cash flow, with cash and equivalents rising to $604 million despite $32 million spent on Thompson Creek restart.

• Advanced strategic initiatives, including the restart of U.S. molybdenum operations, progress on organic gold growth projects, and a new Royal Gold agreement at Mount Milligan.

• Achieved notable ESG milestones, including awards for social responsibility and partnerships with First Nations and local communities.

• Increased share buybacks to $12 million and maintained a quarterly dividend, returning $65 million to shareholders year-to-date.

Financial highlights

• Q3 2024 net earnings were $28.8 million ($0.14/share); adjusted net earnings were $39 million ($0.19/share).

• Sales reached 96,736 ounces of gold and 14.2 million pounds of copper, with average realized prices of $2,206/oz for gold and $3.37/lb for copper.

• Consolidated all-in sustaining costs (AISC) on a byproduct basis were $1,302/oz; gold production costs were $973/oz.

• Cash flow from operations was $104 million; free cash flow was $37 million after $32 million spent on Thompson Creek.

• Ended Q3 with $604 million in cash and $1 billion in total liquidity, including a $400 million credit facility.

Outlook and guidance

• On track to meet consolidated 2024 production guidance of 370,000–410,000 oz gold and 55–65M lbs copper, with cost guidance unchanged.

• Mount Milligan gold production trending toward the lower end of guidance; Q4 production expected to be slightly higher due to better grades and throughput.

• Öksüt Q4 production expected to be 15–20% of annual output, with higher AISC due to lower grades and higher royalties from elevated gold prices.

• Capital expenditures for 2024 guided at $157–$195 million, with sustaining capex at $101–$127 million.

• Inflation in Turkey may impact Öksüt costs in 2025, but 2024 guidance is reiterated.