Centerra Gold (CGAU) - 2025 Q1 - Quarterly Report

Financial Performance - Centerra's revenue for the three months ended March 31, 2025, increased by 15% compared to the same period in 2024, driven by higher gold and copper prices[2] - Revenue for Q1 2025 was $299.5 million, a decrease of 2% from $305.8 million in Q1 2024[16] - Net earnings fell to $30.5 million in Q1 2025, down 54% from $66.4 million in Q1 2024[18] - Adjusted net earnings decreased to $26.4 million in Q1 2025, a 16% decline from $31.3 million in Q1 2024[19] - Free cash flow significantly declined to $10.0 million in Q1 2025, down 88% from $81.2 million in Q1 2024[23] - The company reported a net loss of $1.0 million in Q1 2025, an improvement from a net loss of $3.8 million in Q1 2024[169] Production and Operations - The Mount Milligan Mine produced 50,000 ounces of gold and 15 million pounds of copper in Q1 2025, representing a 10% increase in gold production year-over-year[2] - The Öksüt Mine achieved a production of 30,000 ounces of gold in Q1 2025, maintaining consistent output levels compared to Q1 2024[2] - Gold production dropped by 47% to 59,379 ounces in Q1 2025, while gold sold decreased by 41% to 61,132 ounces[16] - Copper production at the Mount Milligan Mine was 11.6 million pounds in Q1 2025, compared to 14.3 million pounds in Q1 2024, primarily due to lower head grades[84] - Gold production in Q1 2025 was 59,379 ounces, down from 111,341 ounces in Q1 2024, with the decrease attributed to lower processing and recovery rates[83] Cost Management - Gold production costs rose to $1,271 per ounce in Q1 2025 from $746 per ounce in Q1 2024, mainly due to lower ounces sold and higher cost allocations[87] - Consolidated all-in sustaining costs on a by-product basis were $1,491 per ounce in Q1 2025, with full year guidance of $1,400 to $1,500 per ounce[53] - The average realized gold price increased by 39% to $2,554 per ounce in Q1 2025, while the average realized copper price rose by 22% to $3.80 per pound[16] - Cost of sales increased to $223.0 million in Q1 2025 from $207.2 million in Q1 2024, driven by higher production costs at the Langeloth Facility[86] Capital Expenditures and Investments - Centerra plans to invest $50 million in exploration activities across its properties in Canada, the USA, and Türkiye in 2025[4] - For the full year 2025, total capital expenditures are planned to be in the range of $105 to $130 million, unchanged from previous guidance[54] - The Mount Milligan Mine's additions to PP&E in Q1 2025 were $23.7 million, with total capital expenditures of $12.3 million[55] - Additions to property, plant, and equipment surged to $32.3 million in Q1 2025, up from $0.4 million in Q1 2024, a 7975% increase[135] Cash Flow and Liquidity - Centerra's total cash and cash equivalents as of March 31, 2025, were reported at $150 million, providing a strong liquidity position for future investments[2] - As of March 31, 2025, the Company's total liquidity position was $1.0 billion, including a cash balance of $608.2 million[77] - The company repurchased approximately 2,465,926 common shares under its NCIB program for $14.9 million, contributing to a decrease in cash to $608.2 million from $624.7 million[96] Future Outlook and Guidance - Centerra expects to generate cash flow of approximately $100 million from operations in 2025, with a focus on reducing costs by 5% through operational efficiencies[4] - The company is targeting a production guidance of 200,000 ounces of gold and 60 million pounds of copper for the full year 2025[4] - The company's 2025 gold production guidance is between 270,000 and 310,000 ounces, with Q1 production of 59,379 ounces[41] Exploration and Development Projects - The company is advancing the Kemess Project with a pre-feasibility study expected to be completed by Q4 2025, which may lead to a potential increase in mineral resources[4] - The Kemess Project has an updated resource estimate of 2.7 million ounces of gold and 971 million pounds of copper, with a PEA expected by the end of 2025[26] - The Thompson Creek Mine restart involves an initial capital investment of approximately $397 million, with 14% completion status achieved as of Q1 2025[31][32] Molybdenum Business Unit - Centerra's Molybdenum Business Unit is expected to restart operations at the Thompson Creek Mine, aiming for a production of 2 million pounds of molybdenum in 2025[5] - Molybdenum revenue increased by 52% to $91.6 million in Q1 2025 compared to $60.3 million in Q1 2024[132] - Total revenue for the Molybdenum business unit rose to $94.7 million in Q1 2025, a 49% increase from $63.4 million in Q1 2024[132]