Despite being up ~35% since I first covered them in July 2025 and rated them a Strong Buy, Centerra Gold Inc. (NYSE: CGAU ) is still miles away from my initial fair value estimation, whichAs of 2025, I've got over 10 years of researching companies. In total, throughout my investing life, I estimate that I researched (in depth) well over 1000 companies, from commodities like oil, natural gas, gold and copper to tech like Google or Nokia and many emerging market stocks, which I believe could help me provide u ...

Core Viewpoint - Grid Battery Metals Inc. has completed the first phase of its fall exploration program in British Columbia, focusing on gold and copper exploration in a region known for its mining potential [1][5][7]. Company Overview - Grid Battery Metals Inc. is a Canadian exploration company listed on the TSX Venture Exchange, primarily focused on high-value battery metals for the electric vehicle market [15]. - The company has acquired a 100% interest in 17 mineral claims covering approximately 27,525 hectares (about 275 km²) in North Central British Columbia [9]. Exploration Program - The initial exploration program was conducted on two of the five claim blocks, specifically the Jupiter and Starlight blocks, involving assaying, trenching, sampling, and geophysics [7]. - The exploration program aims to follow up on previous work and includes geochemistry across untested magnetic features, with detailed soil sampling and mapping planned for eight targeted areas [7]. Regional Context - The exploration area is strategically located near several promising projects, including NorthWest Copper Corp.'s Kwanika project, which intercepted 400 meters of 1.01% copper equivalent [5]. - The Mount Milligan mine, operated by Centerra Gold, has produced over 1.8 million ounces of gold and 742 million pounds of copper, highlighting the area's mining potential [10]. Historical Exploration Insights - Historical data indicates that the area has been minimally explored, with some recorded results showing anomalous gold levels in stream sediment sampling [11]. - The region is characterized by geological features conducive to porphyry copper-gold deposits, with significant occurrences along the Pinchi Fault [11][12]. Recent Developments - The company has dropped the Volt Canyon Lithium property from its exploration portfolio due to access difficulties and average initial sampling results [13]. - The Texas Springs Property, another asset, has shown promising lithium grades, with a Phase 1 exploration program yielding average lithium grades of 2010 ppm [16].

Core Viewpoint - Centerra Gold Inc. has announced a Pre-Feasibility Study (PFS) for its Mount Milligan mine, confirming a life of mine (LOM) extension to 2045, driven by strategic investments and exploration efforts [1][2]. Group 1: LOM Extension and Production Metrics - The PFS indicates a LOM extension of approximately 10 years, with average annual production from 2026 to 2042 expected to be around 150,000 ounces of gold and 69 million pounds of copper [6][8]. - Total gold production over the mine life is projected to be 2,791,000 ounces, with total copper production estimated at 1,282 million pounds [4][6]. - The average gold grade is expected to be 0.28 grams per tonne (g/t) and the average copper grade is projected at 0.16% [4][28]. Group 2: Capital Expenditures and Economic Outlook - Total capital expenditures over the LOM are estimated at $925 million, with non-sustaining capital expenditures of $186 million planned, primarily for a second tailings storage facility and process plant upgrades [4][21]. - The after-tax Net Present Value (NPV) at a 5% discount rate is approximately $1.5 billion based on long-term commodity price assumptions, increasing to about $2.1 billion at spot prices [4][50]. Group 3: Mineral Reserves and Exploration Potential - An updated mineral reserve estimate shows a total of 483.2 million tonnes, containing 4.4 million ounces of gold and 1.7 billion pounds of copper, representing a 56% increase in gold reserves and a 52% increase in copper reserves compared to the end of 2024 [6][28]. - Ongoing exploration efforts have confirmed mineralization extending to the west of the current resource pit, indicating potential for further resource expansion [2][35]. Group 4: Environmental and Operational Improvements - The mine will utilize in-pit dumping of potentially acid-generating waste to reduce environmental impact and optimize tailings storage capacity [10][11]. - Operational improvements are expected to increase mining rates to 200,000 tonnes per day at certain points during the LOM, with a modest fleet expansion required [11][12]. Group 5: Community and Regulatory Aspects - Mount Milligan has been designated as a provincial priority project by the British Columbia government, which supports a more streamlined permitting process [47][48]. - The extended LOM is anticipated to provide consistent employment for over 1,000 workers and enhance business opportunities for First Nations and surrounding communities [49].

Financial Data and Key Metrics Changes - Adjusted net earnings for Q2 2025 were $53 million or $0.26 per share, benefiting from strong metal prices [19] - Consolidated all-in sustaining costs on a byproduct basis in Q2 were $16.52 per ounce, with updated guidance for 2025 now expected to be between $16.50 and $17.50 per ounce [20][21] - Cash flow from operations before working capital and income taxes increased by 22% over the last quarter, totaling $98 million [21] - The cash balance at the end of Q2 was $522 million, resulting in total liquidity of over $920 million [24] Business Line Data and Key Metrics Changes - Mount Milligan produced over 35,000 ounces of gold and 12.4 million pounds of copper in Q2, with updated gold production guidance for 2025 set between 145,000 and 165,000 ounces [13][14] - Aksut's Q2 production was over 28,250 ounces, with reaffirmed 2025 production guidance expected to be higher in the second half of the year [17] - The restart of Thompson Creek is advancing, with approximately 20% of the total capital investment complete [18] Market Data and Key Metrics Changes - The average realized price for gold was $2,793 per ounce and for copper was $3.62 per pound in Q2 [20] - The molybdenum business unit sold approximately 3.1 million pounds at an average realized price of $21.43 per pound [20] Company Strategy and Development Direction - The company is advancing its internal growth strategy with projects like Goldfield, Mount Milligan, and Chemess, all expected to be self-funded from existing liquidity [25][26] - The Goldfield project is expected to enhance near-term gold production and is projected to have an after-tax NPV of $245 million and an IRR of 30% [9][10] - The company is focused on sustainability initiatives, achieving compliance with the International Cyanide Management Code and increasing local procurement spending by 26% year over year [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational focus and future performance of Mount Milligan under new leadership [6] - The company anticipates strong free cash flow generation in the second half of 2025, particularly from Oksut [22] - Management highlighted the importance of maintaining financial strength and flexibility while pursuing growth opportunities [26] Other Important Information - The company has implemented a targeted hedging strategy on 50% of gold production for 2029 and 2030, with a price floor of $3,200 per ounce [9] - The company has surpassed its 2026 gender diversity goal, with women representing 38% of the Board and 33% of executive officers [12] Q&A Session Summary Question: Can you provide an update on Mount Milligan's mineralization challenges? - Management confirmed increased density of drilling in the area, leading to improved confidence in future predictions [28] Question: What has changed regarding the Goldfield project since last year? - The company has conducted technical work that improved recovery rates and the favorable gold price has enhanced the project's attractiveness [30] Question: How does the company plan to finance multiple projects? - The company has sufficient liquidity to fund all projects while continuing share buybacks, emphasizing a strong balance sheet [33][60] Question: What is the timeline for Goldfield's first production? - Most permits are in place, with minor amendments needed, and the critical path involves engineering and procurement activities [44][46] Question: How does the updated royalty structure affect Oksut? - The royalty structure has been expanded to account for higher gold prices, with a sliding scale for increases [54] Question: What is the strategic rationale for pursuing Goldfield? - The project offers high IRR and NPV, and the company believes it can balance capital allocation between growth projects and shareholder returns [56][60]

Financial Performance - The company reported Q2 2025 earnings per share (EPS) of $0.33 and adjusted EPS of $0.26[17] - The company's cash and cash equivalents stood at $522 million as of June 30, 2025, with total liquidity of $922 million[17] - The company returned $27 million to shareholders through buybacks in Q2 2025, an 80% increase from the previous quarter[17] - H1 2025 shareholder returns included $20.6 million in dividends and $42.0 million in buybacks[17] Production and Costs - Q2 2025 consolidated gold production was 63,311 ounces, and copper production was 12.4 million pounds[17] - Gold production costs were $1,308 per ounce, and all-in sustaining costs (AISC) on a by-product basis were $1,652 per ounce[17] - Mount Milligan produced 35,058 ounces of gold and 12.4 million pounds of copper in Q2 2025[30] - Öksüt Mine produced 28,253 ounces of gold in Q2 2025[37] Goldfield Project - The Goldfield project is expected to yield $245 million after-tax NPV5% and a 30% IRR based on a gold price of $2,500 per ounce[18] - The Goldfield project has an initial capital cost of $252 million[24] - The Goldfield project is expected to have an average annual production of 100,000 ounces of gold in peak years (2029-2032), with an AISC of $1,392 per ounce[24] Thompson Creek Restart - Q2 2025 non-sustaining capital expenditures for the Thompson Creek restart were $27 million, bringing the total since the restart decision to $82 million[45] - The company anticipates total initial capital estimates of $397 million for the Thompson Creek restart[45]

Core Insights - Centerra Gold Inc. reported revenue of $288.34 million for the quarter ended June 2025, marking a year-over-year increase of 2.1% [1] - The earnings per share (EPS) for the same period was $0.25, compared to $0.23 a year ago, with an EPS surprise of +47.06% against the consensus estimate of $0.17 [1] Financial Performance - The reported revenue met the Zacks Consensus Estimate of $0 million, indicating no surprises in revenue figures [1] - Centerra Gold's stock has returned +3.4% over the past month, outperforming the Zacks S&P 500 composite's +0.5% change [3] Production Metrics - Gold production for the quarter was 63.31 Koz, slightly above the average estimate of 63.27 Koz from three analysts [4] - Gold production costs were reported at $1308 per ounce, higher than the average estimate of $1129 per ounce [4] - All-in sustaining costs on a by-product basis were $1652 per ounce, lower than the average estimate of $1777.7 per ounce [4]

Management's Discussion and Analysis Such statements include, but may not be limited to: statements regarding 2025 guidance, outlook and expectations, including, but not limited to, production, costs, capital expenditures, grade profiles, cash flow, care and maintenance, PP&E and reclamation costs, recoveries, processing, inflation, depreciation, depletion and amortization, taxes and annual royalty payments; the ability of the Company to finance the majority of 2025 expenditures from the cash flows provided ...

Core Viewpoint - Centerra Gold Inc. reported strong operational and financial results for the second quarter of 2025, driven by high commodity prices, with significant cash flow and strategic advancements in project development [2][3]. Operational Highlights - Consolidated gold production in Q2 2025 was 63,311 ounces, with 35,058 ounces from Mount Milligan and 28,253 ounces from Öksüt [6][21]. - Copper production for the quarter was 12.4 million pounds [6]. - The company updated its 2025 gold production guidance for Mount Milligan to 145,000 to 165,000 ounces, down from 165,000 to 185,000 ounces due to lower grade zones encountered during mining [21][22]. Financial Highlights - Cash flow from operations before working capital and taxes was $98 million, an increase of 22% from the previous quarter [3][8]. - Net earnings for Q2 2025 were $68.6 million, or $0.33 per share, representing an 82% increase compared to the same quarter last year [8][10]. - The average realized gold price was $2,793 per ounce, a 33% increase year-over-year [10]. Strategic Growth Initiatives - The Goldfield project is advancing with an after-tax NPV5% of $245 million and an IRR of 30%, with first production expected by the end of 2028 [3][8]. - Centerra has approved up to $75 million for share repurchases in 2025, reflecting confidence in long-term business value [3][8]. - The company is progressing with a Pre-Feasibility Study for Mount Milligan, aiming to extend its mine life beyond 2036 [25]. Cost Management - Consolidated gold production costs in Q2 2025 were $1,308 per ounce, with all-in sustaining costs (AISC) on a by-product basis at $1,652 per ounce [6][10]. - The company revised its 2025 gold production costs guidance for Mount Milligan to between $1,350 and $1,450 per ounce, up from previous estimates [22]. Capital Expenditures - Total capital expenditures in Q2 2025 were $53.9 million, with sustaining capital expenditures at $25.8 million [6][10]. - Non-sustaining capital expenditures were $28.1 million, primarily related to the restart of operations at Thompson Creek [6][10].

Core Viewpoint - Centerra Gold Inc. has completed a technical study for its Goldfield project in Nevada, confirming strong economic metrics including an after-tax NPV5% of $245 million and an IRR of 30% based on a long-term gold price of $2,500 per ounce [2][4][6]. Project Economics - The Goldfield project is expected to yield an after-tax NPV5% of $245 million and an IRR of 30%, utilizing a long-term gold price assumption of $2,500 per ounce [4][6]. - The initial capital investment required for the project is approximately $252 million, which includes about $40 million in pre-production stripping and other costs [4][12]. - Average annual gold production is projected to be around 100,000 ounces during peak production years, with an all-in sustaining cost (AISC) of approximately $1,392 per ounce [3][6]. Production Timeline - First production from the Goldfield project is anticipated by the end of 2028, contributing to Centerra's near-term gold production profile [3][6]. - The project has an estimated mine life of approximately seven years, with production expected to ramp up significantly during the initial years [4][6]. Gold Hedging Strategy - Centerra has implemented a gold hedging strategy covering 50% of production in 2029 and 2030, with a price floor of $3,200 per ounce and average price caps of $4,435 and $4,705 for those years, respectively [10][11]. - This strategy aims to lock in strong margins and safeguard project economics while allowing for exposure to rising gold prices for the life of the mine [10][11]. Technical Optimizations - Recent technical work has optimized the project’s processing strategy, improving average recoveries from mid-60% to approximately 76% [5][4]. - The project will utilize a three-stage semi-portable crushing circuit for high-grade material and run-of-mine processing for lower-grade material, enhancing overall project returns [5][4]. Community and Economic Impact - The Goldfield project is expected to create approximately 300 to 400 jobs during construction and 250 to 300 jobs during operations, contributing over $300 million on labor, supplies, and services over its life [25][24]. - The project is projected to generate approximately $100 million in direct taxes, supporting local community initiatives and sustainable development [25][24]. Mineral Resource Estimates - As of June 30, 2025, the Goldfield project has a total measured and indicated gold mineral resource of 794,000 ounces, with proven and probable reserves totaling 706,000 ounces [18][19]. - The mineral reserves consist of 334,000 ounces proven and 372,000 ounces probable, with a total of 33,348 kt at an average grade of 0.66 g/t [19][18].

Core Points - Midland Exploration Inc. has successfully closed a private placement, raising gross proceeds of $5,058,750 from the sale of 10,650,000 flow-through shares at a price of $0.475 per share [1] - Centerra Gold Inc. has become a strategic investor, acquiring approximately 9.9% of Midland's issued and outstanding common shares [2] - The total gross proceeds from the private placements amount to $6,108,750, with a total of 107,450,577 common shares now issued and outstanding [3] Use of Proceeds - The proceeds from the offering will be allocated to Canadian exploration expenses that qualify as flow-through mining expenditures, to be incurred by December 31, 2026 [4] - The corporation expects to recover refundable tax credits of 22.5% on eligible exploration expenditures related to its gold projects over the next 18 months [5] Investor Rights and Agreements - Midland has entered into an Investor Rights Agreement with Centerra, granting Centerra certain rights to maintain its ownership percentage in future share issuances [6] Regulatory Compliance - The offering is subject to final approval from the TSX Venture Exchange, and all securities issued are subject to a hold period of four months plus one day from the closing date [7]