Group 1 - Centerra Gold Inc. has zero debt and a large cash position, making it an attractive investment opportunity in the current market with record gold prices [1] - The company is positioned well compared to its peers, many of which have seen their balance sheets negatively impacted due to high gold prices [1] Group 2 - Mountain Valley Value Investments focuses on identifying undervalued companies with strong growth potential across various sectors [1] - The investment philosophy emphasizes long-term value and disciplined research to uncover opportunities that can deliver strong returns [1]

Core Insights - Centerra Gold Inc. has seen a price increase of approximately 35% since July 2025, yet it remains significantly below the analyst's initial fair value estimation [1] Company Overview - The analyst has over 10 years of experience researching companies across various sectors, including commodities like oil, natural gas, gold, and copper, as well as technology and emerging market stocks [1] - The analyst has researched over 1000 companies in depth throughout their investment career [1] - The analyst has transitioned from writing a blog to a value investing-focused YouTube channel, covering hundreds of different companies, with a particular interest in metals and mining stocks [1] Investment Focus - The analyst expresses a preference for covering metals and mining stocks but is also comfortable with other industries such as consumer discretionary/staples, REITs, and utilities [1]

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]

Introduction and Forward-Looking Statements [Management's Discussion and Analysis](index=1&type=section&id=Management%27s%20Discussion%20and%20Analysis) Reviews Centerra Gold's Q2/H1 2025 financial position and results, adhering to IFRS and using non-GAAP measures requiring reconciliation - The MD&A reviews **financial position and results for Q2 and H1 2025 vs 2024**, prepared as of August 6, 2025[2](index=2&type=chunk) - Discussion should be read with unaudited condensed consolidated interim financial statements and notes for **Q2/H1 2025** and **FY2024 consolidated financial statements**, prepared under IFRS[2](index=2&type=chunk) - All dollar amounts are in **USD**, and **specified financial measures (non-GAAP)** are used, discussed and reconciled in the 'Non-GAAP and Other Financial Measures' section[2](index=2&type=chunk) [Cautionary Statement on Forward-Looking Information](index=2&type=section&id=Cautionary%20Statement%20on%20Forward-Looking%20Information) Outlines forward-looking statements and associated material risks, including political, financial, and operational factors, advising against undue reliance - **Forward-looking statements** are based on expectations, estimates, and projections, involving risks and uncertainties that could cause actual results to differ materially[3](index=3&type=chunk)[6](index=6&type=chunk) - Key forward-looking statements include **2025 guidance** (production, costs, capital expenditures), exploration potential, commodity prices, dividend sustainability, NCIB, and project developments for Goldfield, Kemess, and Thompson Creek Mine restart[4](index=4&type=chunk)[5](index=5&type=chunk) - Risk factors include **political risks** (Türkiye, USA, Canada), **commodity price volatility** (gold, copper, molybdenum), inflationary pressures, regulatory changes, operational issues, and climate change impacts[7](index=7&type=chunk)[8](index=8&type=chunk) Overview [Centerra's Business](index=6&type=section&id=Centerra%27s%20Business) Centerra Gold is a Canada-based mining company with primary gold and copper operations in Canada and Türkiye, alongside other development projects and a Molybdenum Business Unit - Centerra is a **Canada-based mining company** with principal operations at **Mount Milligan (Canada)** and **Öksüt (Türkiye)** mines[13](index=13&type=chunk) - The company also owns the **Kemess project (Canada)**, **Goldfield Project (USA)**, and a **Molybdenum Business Unit** (Langeloth facility, Thompson Creek Mine, Endako Mine)[13](index=13&type=chunk) Centerra's Significant Subsidiaries (as at June 30, 2025) | Entity | Property - Location | Current Status | Ownership | | :--- | :--- | :--- | :--- | | Thompson Creek Metals Company Inc. | Mount Milligan Mine - Canada | Operation | 100% | | | Endako Mine - Canada | Care and maintenance | 75% | | Öksüt Madencilik A.S. | Öksüt Mine - Türkiye | Operation | 100% | | Thompson Creek Mining Co. | Thompson Creek Mine - USA | Development | 100% | | Langeloth Metallurgical Company LLC | Langeloth Facility - USA | Operation | 100% | | Gemfield Resources LLC | Goldfield Project - USA | Development | 100% | | AuRico Metals Inc. | Kemess Project - Canada | Exploration and evaluation | 100% | [Overview of Consolidated Financial and Operating Highlights](index=7&type=section&id=Overview%20of%20Consolidated%20Financial%20and%20Operating%20Highlights) Q2 2025 net earnings rose **82% to $68.6 million**, operating cash flow increased **873% to $25.3 million**, despite gold production decreases and higher unit costs Consolidated Financial Highlights (Q2 & H1 2025 vs 2024) | ($millions, except as noted) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | % Change (QoQ) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | % Change (YoY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Financial Highlights** | | | | | | | | Revenue | 288.3 | 282.3 | 2 % | 587.8 | 588.2 | — % | | Net earnings | 68.6 | 37.7 | 82 % | 99.0 | 104.1 | 5 % | | Adjusted net earnings | 52.7 | 46.4 | 14 % | 79.0 | 77.7 | 2 % | | Cash provided by operating activities | 25.3 | 2.6 | 873 % | 83.9 | 102.0 | (18)% | | Free cash flow (deficit) | (25.6) | (27.0) | 5 % | (15.5) | 54.1 | (129)% | | Capital expenditures - total | 53.9 | 36.3 | 48 % | 100.8 | 53.1 | 90 % | | Net earnings per common share - $/share basic | 0.33 | 0.18 | 83 % | 0.48 | 0.49 | 1 % | | **Operating highlights** | | | | | | | | Gold produced (oz) | 63,311 | 89,828 | (30)% | 122,690 | 201,169 | (39)% | | Copper produced (000s lbs) | 12,437 | 13,549 | (8)% | 24,084 | 27,880 | (14)% | | Molybdenum roasted (000 lbs) | 3,165 | 1,948 | 62 % | 6,199 | 4,839 | 28 % | | Gold production costs ($/oz) | 1,308 | 870 | 50 % | 1,290 | 802 | 61 % | | All-in sustaining costs on a by-product basis ($/oz) | 1,652 | 1,179 | 40 % | 1,572 | 1,001 | 57 % | [Overview of Consolidated Results](index=8&type=section&id=Overview%20of%20Consolidated%20Results) Q2 2025 net earnings rose **82% to $68.6 million** due to a Greenstone gain and lower expenses, while H1 2025 net earnings slightly decreased, and free cash flow remained a deficit - **Q2 2025 net earnings increased by $30.9 million to $68.6 million**, driven by an unrealized gain on Greenstone Partnership, lower expensed exploration, and reduced income tax expense[17](index=17&type=chunk)[19](index=19&type=chunk) - **Q2 2025 cash provided by operating activities increased by $22.7 million to $25.3 million**, mainly due to **$30.1 million lower tax payments** at Öksüt Mine and **$7.0 million decrease in cash used** at Thompson Creek Mine[21](index=21&type=chunk) - **H1 2025 net earnings decreased by $5.1 million to $99.0 million**, primarily due to lower earnings from mine operations and reclamation recovery, partially offset by lower income tax and exploration costs[22](index=22&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) - **H1 2025 free cash flow deficit was $15.5 million**, a **decrease of $69.6 million from H1 2024**, mainly due to lower operating cash and **$51.2 million higher capital spending** at Thompson Creek Mine[27](index=27&type=chunk) [Recent Events and Developments](index=10&type=section&id=Recent%20Events%20and%20Developments) Board approved Goldfield Project construction, Turkish gold royalty rates increased, Mount Milligan PFS advancing, Kemess PEA progressing, Thompson Creek Mine restart on track, and **$42.0 million** in share repurchases completed - **Goldfield Project construction approved** (August 2025) with an estimated initial capital investment of **$252 million**, targeting first production by end of 2028[10](index=10&type=chunk)[27](index=27&type=chunk)[32](index=32&type=chunk) - Turkish Government State Royalty rates for gold were updated on July 24, 2025, increasing the maximum gold price threshold to **$5,100 per ounce**, impacting Öksüt Mine's costs[34](index=34&type=chunk)[35](index=35&type=chunk) - **Mount Milligan Mine is advancing to a Pre-Feasibility Study (PFS)**, expected in Q3 2025, aiming to extend mine life beyond 2036 with increased mill throughput and improved metal recovery[36](index=36&type=chunk)[37](index=37&type=chunk) - **Kemess Project published an updated resource estimate** (**2.7 million oz M&I gold, 971 million lbs M&I copper**) and is advancing a PEA, targeting **250,000 gold equivalent ounces annually** by end of 2025[39](index=39&type=chunk) - **Thompson Creek Mine restart is progressing**, with approximately **20% cost completion** by Q2 2025; initial capital investment is **$397 million**, targeting first production in H2 2027[42](index=42&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk)[47](index=47&type=chunk) - Centerra repurchased **6,355,433 common shares for $42.0 million** in H1 2025 under its Normal Course Issuer Bid (NCIB) program[48](index=48&type=chunk) [Outlook](index=14&type=section&id=Outlook) 2025 outlook revised with **lower gold production guidance** (250,000-290,000 oz) and **higher costs** ($1,300-$1,400/oz), while capital expenditures remain stable and Molybdenum Business Unit targets positive adjusted EBITDA - **2025 consolidated gold production guidance revised downwards to 250,000-290,000 ounces** (previously 270,000-310,000 ounces), primarily due to lower estimates for Mount Milligan Mine[55](index=55&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk) - **Consolidated gold production costs guidance increased to $1,300-$1,400 per ounce** and **all-in sustaining costs to $1,650-$1,750 per ounce**, driven by lower production and increased royalty costs at Öksüt[55](index=55&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) - **Total capital expenditures for gold and copper assets remain unchanged at $105-$130 million**, with sustaining capital guidance decreasing to **$90-$110 million** and non-sustaining increasing to **$15-$20 million**[55](index=55&type=chunk)[70](index=70&type=chunk) - **Molybdenum Business Unit expects 13-15 million pounds roasted/sold in 2025**, targeting **adjusted EBITDA of $2-$8 million**[74](index=74&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) 2025 Outlook Material Assumptions | Assumption | 2025 Guidance | Previous Guidance | | :--- | :--- | :--- | | Market gold price | $3,300/oz | $2,700/oz | | Mount Milligan average realized gold price | $2,297/oz | $1,902/oz | | Market copper price | $4.00/lb | $4.00/lb | | Mount Milligan average realized copper price | $3.36/lb | $3.36/lb | | Molybdenum price | $21.00/lb | $20.00/lb | | USD:CAD exchange rate | $1USD:$1.36 CAD | $1USD:$1.38 CAD | | USD:Turkish lira exchange rate | $1USD:38 Turkish lira | $1USD:36 Turkish lira | | Diesel fuel price (Mount Milligan) | $1.02/litre (CAD$1.39/litre) | $1.05/litre (CAD$1.45/litre) | | Diesel fuel price (Thompson Creek) | $2.85/gallon | $2.90/gallon | 2025 Sensitivities (Impact on H2 2025) | Change | Impact on Production Costs & Taxes ($M) | Impact on Capital Costs ($M) | Impact on Revenues ($M) | Impact on Cash flows ($M) | Impact on AISC by-product basis ($/oz) | | :--- | :--- | :--- | :--- | :--- | :--- | | Gold price ($100/oz) | 2.5 - 3.0 | — | 10.0 - 13.5 | 9.0 - 12.0 | 8 - 10 | | Copper price (10%) | 0.5 - 1.0 | — | 8.5 - 12.5 | 8.5 - 11.5 | 55 - 70 | | Diesel fuel (10%) | 0.4 - 1.2 | 0.1 - 0.5 | — | 0.5 - 1.8 | 2 - 9 | | Canadian dollar (10 cents) | 10.0 - 11.0 | 0.1 - 0.5 | — | 10.1 - 11.5 | 65 - 70 | | Turkish lira (5 liras) | 1.0 - 1.5 | 1.0 - 1.5 | — | 2.0 - 3.0 | 16 - 18 | Liquidity and Capital Resources [Liquidity and Capital Resources Overview](index=23&type=section&id=Liquidity%20and%20Capital%20Resources%20Overview) Centerra maintained **$0.9 billion total liquidity** as of June 30, 2025, with increased cash usage in investing and financing activities due to capital spending and share repurchases - **Total liquidity as of June 30, 2025, was $0.9 billion**, comprising **$522.3 million in cash** and an undrawn **$400.0 million corporate credit facility**[93](index=93&type=chunk) - **Cash used in investing activities increased to $72.6 million in Q2 2025** and **$121.2 million in H1 2025**, mainly due to higher capital spending at Thompson Creek Mine and **$22.0 million in marketable security investments**[95](index=95&type=chunk)[99](index=99&type=chunk) - **Cash used in financing activities increased to $38.5 million in Q2 2025** and **$65.1 million in H1 2025**, primarily due to higher share repurchases under the NCIB program (**$27.0 million in Q2 2025** and **$42.0 million in H1 2025**)[96](index=96&type=chunk)[97](index=97&type=chunk)[100](index=100&type=chunk) Financial Performance [Financial Performance Overview](index=24&type=section&id=Financial%20Performance%20Overview) Q2 2025 revenue increased **2% to $288.3 million** despite lower gold production, while H1 2025 revenue remained flat, with significant increases in gold production costs for both periods - **Q2 2025 revenue increased by 2% to $288.3 million**, primarily due to higher average realized gold prices and molybdenum sales, partially offset by lower gold production at Öksüt Mine[101](index=101&type=chunk) - **Q2 2025 gold production decreased by 30% to 63,311 ounces**, mainly due to higher Q2 2024 production from built-up inventory at Öksüt and lower head grades/recoveries at Mount Milligan[102](index=102&type=chunk) - **Q2 2025 cost of sales increased by 6% to $200.9 million**, driven by higher production costs at Langeloth Facility and Mount Milligan Mine, with gold production costs per ounce increasing **50% to $1,308**[105](index=105&type=chunk)[106](index=106&type=chunk) - **H1 2025 revenue was $587.8 million**, flat compared to H1 2024, with gold production decreasing **39% to 122,690 ounces**[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) - **H1 2025 gold production costs increased by 61% to $1,290 per ounce**, primarily due to lower ounces sold, higher royalty costs at Öksüt, and higher processing costs at Mount Milligan[117](index=117&type=chunk) - **Expensed exploration and evaluation expenditures decreased to $9.7 million in Q2 2025** and **$16.8 million in H1 2025**, mainly due to reduced project evaluation costs at Thompson Creek Mine and drilling costs at Goldfield Project[109](index=109&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk) Financial Instruments [Financial Instruments Overview](index=27&type=section&id=Financial%20Instruments%20Overview) Centerra uses derivative financial instruments to manage exposure to diesel fuel, commodity, and FX fluctuations, with new gold zero-cost collars for Goldfield and a diesel hedging program for Thompson Creek Mine Hedge Positions as at June 30, 2025 | Instrument | Unit | Type | H2 2025 | 2026 | 2027 | Settlements (H2 2025) | Settlements (2026) | Settlements (2027) | Total Position | Fair value ($'000s) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **FX Hedges** | | | | | | | | | | | | USD/CAD zero-cost collars | CAD | Fixed | $1.34/$1.39 | $1.34/$1.39 | — | $96.0M (28%) | $72.0M | — | $168.0M | 971 | | USD/CAD forward contracts | CAD | Fixed | 1.35 | 1.37 | 1.35 | $92.0M (26%) | $121.3M | $78.0M | $291.3M | 2,259 | | Total FX Hedges | | | | | | $188.0M (54%) | $193.3M | $78.0M | $459.3M | 3,230 | | **Diesel Fuel Hedges** | | | | | | | | | | | | ULSD zero-cost collars | Litres | Fixed | $0.60/$0.67 | $0.60/$0.67 $0.50/$0.57 | | 2,555 (12%) | 3,339 | 469 | 6,363 | (285) | | ULSD swap contracts | Litres | Fixed | $0.65 | $0.60 | $0.58 | 6,222 (30%) | 21,290 | 13,579 | 41,091 | (1,125) | | Total Diesel Fuel Hedges | | | | | | 8,777 (42%) | 24,629 | 14,048 | 47,454 | (1,410) | | **Gold Hedges** | | | | | | | | | | | | Gold zero-cost collars | Ounces | Fixed | $2,400/$3,400 $2,400/$3,696 | | — | 20,750 (14%) | 20,000 | — | 40,750 | (3,925) | | **Gold/Copper Hedges (Royal Gold deliverables)** | | | | | | | | | | | | Gold forward contracts | Ounces | Float | N/A | — | — | 17,773 | — | — | 17,773 | 131 | | Copper forward contracts | Pounds | Float | N/A | — | — | 4.0M | — | — | 4.0M | 551 | - Subsequent to quarter-end, new **gold zero-cost collar contracts** were entered for the Goldfield Project's 2029 and 2030 production (**57,000 ounces and 60,000 ounces** respectively), with a floor of **$3,200/oz** and average caps of **$4,435/oz (2029)** and **$4,705/oz (2030)**[122](index=122&type=chunk)[123](index=123&type=chunk) - A **diesel hedging program was initiated in Q1 2025** for the Thompson Creek Mine restart, covering a portion of estimated future diesel fuel purchases through June 2027[124](index=124&type=chunk) Balance Sheet Review [Balance Sheet Review Overview](index=28&type=section&id=Balance%20Sheet%20Review%20Overview) Total assets increased to **$2,317.3 million** as of June 30, 2025, while cash decreased due to share repurchases and investments, and PP&E rose due to capital projects Balance Sheet Summary ($ millions) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | 2,317.3 | 2,265.1 | | Total Liabilities | 613.6 | 609.2 | | Current Liabilities | 279.7 | 283.9 | | Non-current Liabilities | 333.9 | 325.3 | | Total Equity | 1,703.7 | 1,655.9 | - **Cash decreased by $102.4 million to $522.3 million**, mainly due to **$42.0 million in share repurchases**, **$20.8 million in dividends paid**, **$22.0 million in marketable security investments**, and a **$15.5 million free cash flow deficit**[126](index=126&type=chunk) - **Amounts receivable increased by $48.5 million to $123.5 million**, driven by increased sales, and other current assets increased by **$17.4 million** due to Greenstone Partnership re-measurement[126](index=126&type=chunk)[127](index=127&type=chunk) - **Property, plant and equipment (PP&E) increased by $70 million to $1.17 billion**, primarily due to **$123.7 million in capital project additions**, partially offset by **$57.7 million in depreciation and depletion**[128](index=128&type=chunk) - **Share capital decreased by $44.3 million to $782.4 million** due to the repurchase and cancellation of shares under the NCIB program[133](index=133&type=chunk) - **Accumulated other comprehensive income increased by $13.9 million to $2.7 million**, primarily due to a change in fair value of derivative instruments on hedging programs at Mount Milligan Mine[134](index=134&type=chunk) Operating Mines and Facilities [Mount Milligan Mine](index=29&type=section&id=Mount%20Milligan%20Mine) Mount Milligan Mine saw **83% increase in Q2 2025 earnings to $40.8 million** despite lower gold and copper production, with gold production costs rising significantly Mount Milligan Mine Financial and Operating Results (Q2 & H1 2025 vs 2024) | ($millions, except as noted) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | % Change (QoQ) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | % Change (YoY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Financial Highlights** | | | | | | | | Total revenue | 126.8 | 99.8 | 27 % | 262.0 | 220.3 | 19 % | | Earnings from mine operations | 40.8 | 22.3 | 83 % | 82.8 | 51.5 | 61 % | | Free cash flow from mine operations | 42.8 | 13.5 | 217 % | 70.2 | 37.6 | 87 % | | Gold produced (oz) | 35,058 | 38,609 | (9)% | 70,938 | 86,926 | (18)% | | Copper produced (000s lbs) | 12,437 | 13,549 | (8)% | 24,084 | 27,880 | (14)% | | Gold production costs ($/oz) | 1,356 | 1,102 | 23 % | 1,371 | 1,017 | 35 % | | All-in sustaining costs on a by-product basis ($/oz) | 1,286 | 1,234 | 4 % | 1,224 | 912 | 34 % | - **Q2 2025 gold production decreased by 9% to 35,058 ounces** due to lower head grade and recovery; **copper production decreased by 8% to 12.4 million pounds** due to lower head grade[142](index=142&type=chunk)[143](index=143&type=chunk) - **H1 2025 gold production decreased by 18% to 70,938 ounces** due to lower grades and recoveries; **copper production decreased by 14% to 24.1 million pounds** due to lower copper grades[152](index=152&type=chunk)[153](index=153&type=chunk) - **H1 2025 gold production costs increased by 35% to $1,371 per ounce**, driven by lower ounces sold, higher cost allocation to gold, and increased processing costs from a planned mill maintenance shutdown[154](index=154&type=chunk)[155](index=155&type=chunk) [Öksüt Mine](index=36&type=section&id=%C3%96ks%C3%BCt%20Mine) Öksüt Mine saw **Q2 2025 earnings decrease 34% to $46.9 million** due to lower gold production and sales, with gold production costs rising significantly to **$1,250 per ounce** Öksüt Mine Financial and Operating Results (Q2 & H1 2025 vs 2024) | ($millions, except as noted) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | % Change (QoQ) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | % Change (YoY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Financial Highlights** | | | | | | | | Revenue | 91.0 | 121.4 | (25)% | 160.6 | 243.4 | (34)% | | Earnings from mine operations | 46.9 | 71.1 | (34)% | 82.0 | 144.1 | (43)% | | Free cash flow (deficit) from mine operations | (28.2) | (10.9) | (159)% | 13.4 | 79.2 | (83)% | | Gold produced (oz) | 28,253 | 51,219 | (45)% | 51,752 | 114,243 | (55)% | | Gold sold (oz) | 27,608 | 51,856 | (47)% | 52,112 | 111,037 | (53)% | | Gold production costs ($/oz) | 1,250 | 729 | 71 % | 1,181 | 653 | 81 % | | All-in sustaining costs on a by-product basis ($/oz) | 1,755 | 943 | 86 % | 1,665 | 879 | 89 % | - **Q2 2025 gold production decreased by 45% to 28,253 ounces**, primarily due to lower heap leach grades and higher production levels in Q2 2024 from processing built-up inventory[167](index=167&type=chunk)[168](index=168&type=chunk) - **H1 2025 gold production decreased by 55% to 51,752 ounces**, mainly due to lower heap leach grades and higher production levels in H1 2024 from processing built-up inventory[177](index=177&type=chunk)[178](index=178&type=chunk) - **H1 2025 gold production costs increased by 81% to $1,181 per ounce**, driven by higher direct production costs, elevated royalty costs, lower deferred stripping, and net inflation in Türkiye[179](index=179&type=chunk)[180](index=180&type=chunk) [Molybdenum Business Unit](index=41&type=section&id=Molybdenum%20Business%20Unit) [Thompson Creek Mine](index=41&type=section&id=Thompson%20Creek%20Mine) Thompson Creek Mine saw significant capital expenditure increases in Q2 and H1 2025 due to restart activities, with **16.4 million tons of waste moved** and first production targeted for H2 2027 Thompson Creek Mine Financial and Operating Highlights (Q2 & H1 2025 vs 2024) | ($millions, except as noted) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | % Change (QoQ) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | % Change (YoY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Free cash flow deficit from operations | (25.4) | (8.7) | (192)% | (53.3) | (16.3) | (227)% | | Additions to property, plant and equipment | 26.3 | 5.2 | 406 % | 58.6 | 5.6 | 946 % | | Total capital expenditures | 26.5 | 5.2 | 410 % | 52.3 | 5.6 | 834 % | | Tons mined (000s) | 6,778 | 1,870 | 262 % | 11,645 | 3,904 | 198 % | - **Non-sustaining capital expenditures increased to $26.5 million in Q2 2025** and **$52.3 million in H1 2025**, driven by higher capital spending on mill detailed engineering, housing construction, and pre-stripping[186](index=186&type=chunk)[192](index=192&type=chunk) - Since the restart decision in September 2024, **16.4 million tons of waste have been moved**, representing **14% of planned tons** prior to production commencement[187](index=187&type=chunk) - The majority of planned mining equipment refurbishments were substantially completed by Q2 2025, with plant refurbishment progressing, targeting first production in H2 2027[188](index=188&type=chunk)[189](index=189&type=chunk)[191](index=191&type=chunk) [Langeloth Facility](index=43&type=section&id=Langeloth%20Facility) Langeloth Facility significantly increased molybdenum roasted and sold volumes in Q2 and H1 2025, reducing losses and achieving positive Adjusted EBITDA due to strong demand and operational efficiency Langeloth Facility Financial and Operating Highlights (Q2 & H1 2025 vs 2024) | ($millions, except as noted) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | % Change (QoQ) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | % Change (YoY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total revenue | 70.5 | 61.2 | 15 % | 165.2 | 124.5 | 33 % | | Loss from operations | (0.8) | (1.2) | 33 % | (2.0) | (5.0) | 60 % | | Adjusted EBITDA | 0.2 | (0.4) | 150 % | 0.3 | (3.3) | 109 % | | Mo roasted (000's lbs) | 3,165 | 1,948 | 62 % | 6,199 | 4,839 | 28 % | | Mo sold (000's lbs) | 3,076 | 2,675 | 15 % | 7,320 | 5,623 | 30 % | - **Molybdenum roasted and sold increased significantly in Q2 and H1 2025**, driven by strong customer demand and the absence of a planned acid plant shutdown in 2024[194](index=194&type=chunk)[199](index=199&type=chunk) - **Loss from operations decreased by 33% in Q2 2025 to $0.8 million** and **60% in H1 2025 to $2.0 million**, primarily due to increased molybdenum sales and higher by-product revenue[195](index=195&type=chunk)[200](index=200&type=chunk) - **Adjusted EBITDA turned positive in Q2 2025 ($0.2 million)** and **H1 2025 ($0.3 million)**, reflecting improved profitability[196](index=196&type=chunk)[200](index=200&type=chunk) [Endako Mine](index=45&type=section&id=Endako%20Mine) Endako Mine reported **Q2 2025 earnings of $5.0 million** due to higher reclamation recovery, but H1 2025 saw a **$2.2 million loss**, with increased cash usage for reclamation payments - **Q2 2025 earnings from operations were $5.0 million** (vs. **$0.6 million loss in Q2 2024**), primarily due to higher reclamation recovery from increased risk-free interest rates[202](index=202&type=chunk) - **H1 2025 loss from operations was $2.2 million** (vs. **$0.8 million earnings in H1 2024**), primarily due to lower reclamation recovery from changes in discount rates[204](index=204&type=chunk) - **Cash used in operations and free cash flow deficit increased in both Q2 and H1 2025**, mainly due to reclamation payments for the closure of the Tailings Pond 2 spillway[203](index=203&type=chunk)[205](index=205&type=chunk) Quarterly Results – Previous Eight Quarters [Quarterly Results – Previous Eight Quarters Overview](index=45&type=section&id=Quarterly%20Results%20%E2%80%93%20Previous%20Eight%20Quarters%20Overview) Net earnings fluctuated over eight quarters due to impairment losses, reclamation adjustments, and financial instrument gains/losses, with Q2 2025 benefiting from higher prices and a Greenstone gain Quarterly Financial Data (Unaudited, $millions, except per share data) | Item | 2025 Q2 | 2025 Q1 | 2024 Q4 | 2024 Q3 | 2024 Q2 | 2024 Q1 | 2023 Q4 | 2023 Q3 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 288 | 299 | 302 | 324 | 282 | 306 | 340 | 344 | | Net earnings (loss) | 69 | 30 | (52) | 29 | 38 | 66 | (29) | 61 | | Basic earnings (loss) per share | 0.33 | 0.15 | (0.25) | 0.14 | 0.18 | 0.31 | (0.13) | 0.28 | | Adjusted earnings per share - basic | 0.26 | 0.13 | 0.17 | 0.19 | 0.23 | 0.15 | 0.28 | 0.20 | - **Net earnings in Q2 2025 were positively impacted by higher gold and copper prices** and a non-cash gain on the Greenstone Partnership sale, partially offset by lower sales and an unrealized loss on the Additional Royal Gold Agreement[205](index=205&type=chunk) - **Net losses in Q4 2024 and Q4 2023 were primarily due to non-cash impairment losses** at the Goldfield Project and Kemess Project, respectively[205](index=205&type=chunk) Accounting Estimates, Policies and Changes [Accounting Estimates](index=46&type=section&id=Accounting%20Estimates) Critical accounting estimates and judgments for Q2/H1 2025 are consistent with FY2024, with ongoing management review and revisions recognized in the affected period - **Critical accounting estimates and judgments for Q2/H1 2025 are consistent with FY2024**, except as disclosed in note 3 of the interim financial statements[206](index=206&type=chunk)[208](index=208&type=chunk) - Management reviews estimates and underlying assumptions on an ongoing basis, with changes recognized in the period of revision and any future affected periods[207](index=207&type=chunk) [Accounting Policies and Changes](index=46&type=section&id=Accounting%20Policies%20and%20Changes) Accounting policies applied in Q2/H1 2025 interim financial statements are consistent with those used in the FY2024 consolidated financial statements - **Accounting policies applied in Q2/H1 2025 interim financial statements are consistent with those used in the FY2024 consolidated financial statements**[209](index=209&type=chunk) Disclosure Controls and Procedures and Internal Control Over Financial Reporting [Disclosure Controls and Procedures and Internal Control Over Financial Reporting Overview](index=46&type=section&id=Disclosure%20Controls%20and%20Procedures%20and%20Internal%20Control%20Over%20Financial%20Reporting%20Overview) Management evaluated disclosure controls and internal control over financial reporting as of June 30, 2025, concluding effectiveness with no material changes during the period - Management, including the CEO and CFO, evaluated the effectiveness of **disclosure controls and internal control over financial reporting as of June 30, 2025**[210](index=210&type=chunk)[211](index=211&type=chunk) - It was concluded that controls are designed to provide **reasonable assurance regarding the reliability of information disclosed in filings**, including interim financial statements[211](index=211&type=chunk) - There has been **no material change in the Company's internal control over financial reporting** during the three and six months ended June 30, 2025[212](index=212&type=chunk) Non-GAAP and Other Financial Measures [Non-GAAP and Other Financial Measures Overview](index=47&type=section&id=Non-GAAP%20and%20Other%20Financial%20Measures%20Overview) Defines and reconciles specified financial measures, including non-GAAP metrics like AISC and Adjusted EBITDA, used by management to assess performance and assist stakeholders - The MD&A uses **'specified financial measures'** (non-GAAP financial measures, non-GAAP ratios, supplementary financial measures) to help stakeholders understand costs, economics, operating performance, and free cash flow[214](index=214&type=chunk) - These measures are **not standardized under IFRS** and may not be comparable to similar measures from other issuers; they should not be considered in isolation[214](index=214&type=chunk) - Key non-GAAP measures defined include **All-in sustaining costs**, **Sustaining and Non-sustaining capital expenditures**, **Adjusted net earnings**, **Adjusted EBITDA**, **Free cash flow**, and various unit costs[215](index=215&type=chunk)[216](index=216&type=chunk) Consolidated All-in Sustaining Costs on a By-Product Basis Reconciliation (Q2 & H1 2025 vs 2024) | (Unaudited - $millions, unless otherwise specified) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Production costs attributable to gold | 80.3 | 72.4 | 157.9 | 150.4 | | Production costs attributable to copper | 24.9 | 28.8 | 52.0 | 58.6 | | Total production costs excluding Molybdenum BU segment, as reported | 105.2 | 101.2 | 209.9 | 209.0 | | Adjust for: | | | | | | Third party smelting, refining and transport costs | 2.5 | 2.4 | 5.1 | 5.1 | | By-product and co-product credits | (46.5) | (46.5) | (95.1) | (97.0) | | Adjusted production costs | 61.2 | 57.1 | 119.9 | 117.1 | | Corporate general administrative and other costs | 9.5 | 10.8 | 20.0 | 20.4 | | Reclamation and remediation - accretion (operating sites) | 3.4 | 2.3 | 5.9 | 4.9 | | Sustaining capital expenditures | 25.3 | 26.3 | 43.2 | 42.0 | | Sustaining lease payments | 2.0 | 1.6 | 3.5 | 3.2 | | **All-in sustaining costs on a by-product basis** | **101.4** | **98.1** | **192.5** | **187.6** | | Ounces sold (000s) | 61.3 | 83.3 | 122.5 | 187.6 | | **All-in sustaining costs on a by-product basis ($/oz)** | **1,652** | **1,179** | **1,572** | **1,001** | Consolidated Adjusted Net Earnings Reconciliation (Q2 & H1 2025 vs 2024) | ($millions, except as noted) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net earnings | 68.6 | 37.7 | 99.0 | 104.1 | | Adjust for items not associated with ongoing operations: | | | | | | Unrealized gain on sale of Greenstone Partnership | (15.0) | — | (21.6) | — | | Unrealized loss on financial assets relating to the Additional Royal Gold Agreement | 12.1 | 7.4 | 13.5 | 8.9 | | Deferred income tax adjustments | (11.0) | 1.9 | (12.2) | (4.9) | | Reclamation recovery at the Molybdenum BU sites and the Kemess Project | (7.7) | (5.1) | (2.9) | (30.1) | | Unrealized foreign exchange loss (gain) | 6.2 | 5.5 | 2.9 | (3.4) | | Unrealized (gain) loss on marketable securities and other losses | (0.5) | (1.0) | 0.3 | 0.6 | | Transaction costs related to the Additional Royal Gold Agreement | — | — | — | 2.5 | | **Adjusted net earnings** | **52.7** | **46.4** | **79.0** | **77.7** | | Adjusted net earnings per share - basic | 0.26 | 0.23 | 0.38 | 0.36 | Consolidated Adjusted EBITDA Reconciliation (Q2 & H1 2025 vs 2024) | ($millions, except as noted) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net earnings | 68.6 | 37.7 | 99.0 | 104.1 | | Adjustments: | | | | | | Income tax (recovery) expense | (2.2) | 17.8 | 22.7 | 47.6 | | Depreciation, depletion and amortization ("DDA") | 26.9 | 29.0 | 51.7 | 63.7 | | Interest income | (5.7) | (7.9) | (11.1) | (16.0) | | Finance costs | 4.1 | 3.8 | 8.0 | 7.2 | | Unrealized gain on sale of Greenstone Partnership | (15.0) | — | (21.6) | — | | Unrealized loss on financial assets relating to the Additional Royal Gold Agreement | 12.1 | 7.4 | 13.5 | 8.9 | | Reclamation recovery at the Molybdenum BU sites and the Kemess Project | (7.7) | (5.1) | (2.9) | (30.1) | | Unrealized foreign exchange loss (gain) | 6.2 | 5.5 | 2.9 | (3.4) | | Unrealized (gain) loss on marketable securities and other losses | (0.5) | (1.0) | 0.3 | 0.6 | | Transaction costs related to the Additional Royal Gold Agreement | — | — | — | 2.5 | | **Adjusted EBITDA** | **86.8** | **87.2** | **162.5** | **185.1** | Qualified Person & QA/QC [Qualified Person & QA/QC Overview](index=53&type=section&id=Qualified%20Person%20%26%20QA%2FQC%20Overview) Christopher Richings and Richard Adofo are 'qualified persons' for scientific and technical information, adhering to NI 43-101 and industry QA/QC standards - **Christopher Richings (VP, Technical Services)** is the 'qualified person' for non-exploration scientific and technical information[225](index=225&type=chunk) - **Richard Adofo (VP, Exploration & Resource)** is the 'qualified person' for exploration and related scientific and technical information[226](index=226&type=chunk) - All qualified persons comply with **NI 43-101 Standards of Disclosure for Mineral Projects**, with QA/QC protocols consistent with industry standards, using independent certified assay labs[225](index=225&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk)

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].