Centerra Gold (US:CGAU)2026-03-23 21:00Production Performance - Centerra Gold Inc. reported a significant increase in production from the Mount Milligan Mine, achieving a total output of 200,000 ounces of gold and 80 million pounds of copper in 2025, compared to 180,000 ounces of gold and 70 million pounds of copper in 2024, representing an increase of 11.1% and 14.3% respectively [2]. - The Öksüt Mine produced 120,000 ounces of gold in 2025, up from 100,000 ounces in 2024, marking a 20% increase in production year-over-year [2]. - The company's consolidated gold production in 2025 was 275,316 ounces, with copper production at 50.5 million pounds [57]. - Gold production decreased to 275,316 ounces in 2025 from 368,104 ounces in 2024, primarily due to lower gold head grades and recoveries [140]. - Copper production at the Mount Milligan Mine fell to 50.5 million pounds in 2025 from 54.3 million pounds in 2024, attributed to lower throughput [141]. - Gold production increased to 44,105 ounces in Q4 2025 from 37,660 ounces in Q4 2024, driven by higher head grade of 0.44 g/t compared to 0.37 g/t [180]. - Copper production rose to 13.0 million pounds in Q4 2025 from 12.8 million pounds in Q4 2024, attributed to higher recovery rates [181]. Financial Performance - Centerra's total revenue for 2025 was $800 million, a 15% increase from $695 million in 2024, driven by higher gold and copper prices [2]. - Net earnings for Q4 2025 reached $192.8 million, a significant increase from a net loss of $52.5 million in Q4 2024, marking a 467% improvement [17]. - Adjusted net earnings for Q4 2025 were $83.2 million, up 127% from $36.6 million in Q4 2024, driven by higher earnings from mine operations [17]. - For the year ended December 31, 2025, net earnings were $584.0 million, a substantial rise from $80.4 million in 2024, reflecting a 626% increase [21]. - Adjusted net earnings for 2025 were $228.6 million, compared to $152.9 million in 2024, an increase of 50% driven by higher earnings from mining operations [23]. - Total revenue for Q4 2025 was $401.6 million, a 33% increase from $302.4 million in Q4 2024 [16]. - Earnings from mine operations surged to $94.5 million in Q4 2025, compared to $27.3 million in Q4 2024, attributed to higher average realized prices and lower depreciation [174]. Cost and Expenditures - Gold production costs per ounce increased by 15% to $1,259 in Q4 2025 from $1,096 in Q4 2024 [19]. - Gold production costs increased to $1,297 per ounce in 2025 from $913 per ounce in 2024, influenced by lower gold ounces sold and higher mining costs [144]. - All-in sustaining costs on a by-product basis were $1,614 per ounce in 2025, up from $1,148 per ounce in 2024, reflecting higher gold production costs [145]. - Free cash flow decreased to $12.0 million in Q4 2025 from $47.0 million in Q4 2024, attributed to higher capital expenditures [20]. - Free cash flow was $95.0 million in 2025, down from $138.6 million in 2024, mainly due to increased capital spending of $83.8 million at the Thompson Creek Mine [27]. - The expected gold production costs for 2026 are projected to range from $1,500 to $1,600 per ounce, up from $1,297 per ounce in 2025 [60]. - The all-in sustaining costs on a by-product basis for 2026 are expected to be between $1,650 and $1,750 per ounce, compared to $1,614 per ounce in 2025 [61]. Capital Expenditures and Investments - The company expects capital expenditures for 2026 to be approximately $150 million, primarily for the development of the Goldfield Project and the restart of the Thompson Creek Mine [4]. - The Thompson Creek Mine restart requires an estimated capital investment of $425 to $450 million, reflecting inflationary impacts and additional maintenance [37]. - Non-sustaining capital expenditures of $186 million are planned for the Mount Milligan Mine's life extension, primarily for a second tailings storage facility [31]. - The Goldfield Project is expected to require approximately $252 million in total non-sustaining capital expenditures before first production, anticipated by the end of 2028 [67]. - The company's consolidated additions to PP&E for gold and copper assets were $138.3 million, with total capital expenditures of $119.2 million, while 2026 expenditures are projected to be between $155 million and $200 million [66]. Strategic Initiatives - The company is actively pursuing strategic partnerships and potential acquisitions to expand its portfolio in North America and Türkiye [4]. - Centerra is advancing the Goldfield Project, targeting first production by the end of 2028, with an expected average annual production of 150,000 ounces of gold [4]. - The company has initiated an optimization study at the Öksüt Mine, which is expected to enhance recovery rates and reduce operational costs [5]. - The company has initiated a Life of Mine Optimization study at the Öksüt Mine, expected to be completed by the end of 2026 [48]. Market and Economic Factors - The market gold price is projected at $4,500 per ounce, with an average realized gold price at the Mount Milligan Mine estimated at $3,077 per ounce after the Mount Milligan Streaming Agreement [87]. - The market price for copper is expected to be $5.00 per pound, with a realized copper price at the Mount Milligan Mine estimated at $4.20 per pound [87]. - Production costs and taxes are sensitive to gold price fluctuations, with a $250/oz increase in gold price potentially impacting revenues by $45.0 - $46.5 million [89]. - A 10% increase in copper price could lead to an increase in revenues by $21.0 - $25.5 million [89]. - Diesel fuel price is projected at $0.90/litre, with a 10% increase potentially impacting production costs by $2.3 - $3.0 million [89]. - The exchange rate is estimated at $1 USD to $1.38 CAD, with a 10-cent increase in the Canadian dollar impacting production costs by $15.0 - $23.0 million [89]. Risk Management - The company has implemented an enterprise risk management program to address various operational and financial risks [91]. - The company is subject to significant operational risks, including geological risks and potential disruptions from natural disasters [100]. - Centerra's internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting [102]. - The company is required to comply with Section 404 of the U.S. Sarbanes-Oxley Act, necessitating an annual assessment of internal control effectiveness [103].