Centerra Gold Reports Second Quarter 2025 Results; Reinforced Balance Sheet Strength with Strong Operational Cash Flow Performance; Advancing the Goldfield Project and Accelerating a Self-Funded Gold Growth Strategy

2025-08-06

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This news release contains forward-looking information about expected future events that is subject to risks and assumptions set out in the “Cautionary Statement on Forward-Looking Information” below. All figures are in United States dollars. All production figures reflect payable metal quantities and are on a 100% basis, unless otherwise stated. For references denoted with NG, refer to the “Non-GAAP and Other Financial Measures” disclosure at the end of this news release for a description of these measures.

TORONTO, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Centerra Gold Inc. (“Centerra” or the “Company”) (TSX: CG and NYSE: CGAU) today reported its second quarter 2025 operating and financial results.

President and CEO, Paul Tomory, commented, “In the second quarter, both Mount Milligan and Öksüt contributed to a strong $98 million in cash flow from operations before changes in working capital and taxes paid, driven by high commodity prices. At Mount Milligan, we are updating our 2025 gold production and cost guidance ranges as a result of mining in lower grade zones and we are updating our 2025 cost guidance ranges at Öksüt due to higher royalty costs driven by elevated gold prices and an updated royalty structure that was approved by the Turkish government in July 2025. We maintained a robust financial position, which has enabled Centerra to increase share buybacks to $27 million in the second quarter, up 80% compared to last quarter. In the first half of 2025, in line with our disciplined capital allocation strategy, we have repurchased $42 million of shares, with up to $75 million approved for the full year, which reinforces our confidence in the long-term value of our growing business.”

Paul Tomory continued, “We are pleased to be advancing with development and construction at the Goldfield project. Over the last several months, Centerra has undertaken additional technical work and project optimizations that have significantly enhanced Goldfield’s value proposition and have de-risked the project. Favourable gold prices combined with these recent developments have improved the Project’s economics, enabling us to move forward with execution. We believe Goldfield is well positioned to deliver strong returns, including an after-tax net present value (5%) (“NPV 5% ”) of $245 million and an after-tax internal rate of return (“IRR”) of 30%, using a long-term gold price of $2,500 per ounce and including the impact of gold hedges. The project is expected to be funded from Centerra’s existing liquidity and is located in a top tier mining jurisdiction, with an approximate 7-year mine life, average annual production of 100,000 ounces in peak production years at an all-in sustaining cost NG of $1,392 per ounce, and a competitive initial capital cost of $252 million. First production from Goldfield is expected by the end of 2028, which would grow Centerra’s near-term gold production profile, generate robust cash flow and deliver significant value to shareholders. We believe Goldfield to be ideally positioned in our project development pipeline as we continue to advance development of the longer-life Mount Milligan and Kemess gold-copper assets in British Columbia.”

Second Quarter 2025 Highlights

Operations

Production: In the second quarter 2025, consolidated gold production was 63,311 ounces, including 35,058 ounces from the Mount Milligan Mine (“Mount Milligan”) and 28,253 ounces from the Öksüt Mine (“Öksüt”). Copper production in the quarter was 12.4 million pounds. Sales: Second quarter 2025 gold sales were 61,335 ounces at an average realized gold price NG of $2,793 per ounce and copper sales were 12.1 million pounds at an average realized copper price NG of $3.62 per pound. The average realized gold and copper prices include the impact of the Mount Milligan streaming agreement with RGLD Gold AG and Royal Gold, Inc. (collectively “Royal Gold”). Costs: Second quarter 2025 consolidated gold production costs were $1,308 per ounce and all-in sustaining costs (“AISC”) on a by-product basis NG were $1,652 per ounce. Capital expenditures NG : Second quarter 2025 additions to property, plant, and equipment (“PP&E”) and capital expenditures NG were $55.6 million and $53.9 million, respectively. Sustaining capital expenditures NG in the second quarter 2025 were $25.8 million and included construction at the tailings storage facility (“TSF”) and capitalized exploration at Mount Milligan, as well as capitalized stripping and expansion of the heap leach pad at Öksüt. Non-sustaining capital expenditures NG in the second quarter were $28.1 million related mainly to the restart of operations at the Thompson Creek Mine (“Thompson Creek”).

Financial

Net earnings: Second quarter 2025 net earnings were $68.6 million, or $0.33 per share, and adjusted net earnings NG were $52.7 million or $0.26 per share. Key adjustments to net earnings include $15.0 million of unrealized gain on the re-measurement of the sale of the Greenstone Partnership in 2021, $12.1 million of unrealized loss on the financial assets related to the additional agreement with Royal Gold Inc. (“Royal Gold”), and $11.0 million of deferred income tax adjustments arising from the impact of foreign exchange rate movement on deferred income taxes at Mount Milligan, partially offset by a drawdown on the deferred tax asset related to Mount Milligan. For additional adjustments refer to the “Non-GAAP and Other Financial Measures” disclosure at the end of this news release. Cash provided by operating activities and free cash flow NG : In the second quarter 2025, cash provided by operating activities before working capital and income taxes paid was $98.4 million, up 22% from last quarter. Cash provided by operating activities was $25.3 million and free cash flow deficit NG was $25.6 million, impacted mainly by statutory tax and royalty payments at Öksüt. This includes $57.2 million of cash provided by mine operations and $42.8 million of free cash flow NG at Mount Milligan, offset by $17.6 million of cash used in mine operations and $28.2 million of free cash flow deficit NG at Öksüt, and capital expenditures NG at Thompson Creek. Cash and cash equivalents: Total liquidity of $922.3 million as at June 30, 2025, comprising a cash balance of $522.3 million and $400.0 million under a corporate credit facility. Returning capital to shareholders : Quarterly dividend declared of C$0.07 per common share for a total of $10.5 million in the second quarter, and $20.6 million year-to-date. Under Centerra’s normal course issuer bid (“NCIB”) program, the Company repurchased 3,889,507 common shares (“Shares”) in the second quarter 2025, for total consideration of $27.0 million, up 80% compared to last quarter. The Company’s board of directors has approved the repurchase of up to $75 million of Centerra’s Shares through the NCIB in 2025, of which, the Company has completed $42.0 million year-to-date. Centerra believes that the NCIB will continue to provide the Company with a flexible tool to deploy cash pursuant to its capital allocation strategy, while preserving the financial flexibility to support investment in future growth.

Strategic Growth Initiatives

Advancing the Goldfield project: Centerra has completed a technical study of its Goldfield project (“Goldfield” or “the Project”), which confirms attractive economics for the Project, including an after-tax NPV 5% of $245 million and an after-tax IRR of 30%, using a long-term gold price of $2,500 per ounce. This includes the impact of gold hedges, with a gold price floor of $3,200 per ounce, on a portion of production in 2029 and 2030 to lock in strong margins, safeguard economics in the early years of the Project, and expedite the capital payback period. The initial capital investment at Goldfield is $252 million, including approximately $40 million in pre-production stripping and other costs, and the Project is expected to benefit from a short timeline to first production by the end of 2028 and low execution risk given its relatively simple process flow sheet. The Project is located in a historic mining district of Nevada, offering a stable regulatory environment, skilled workforce, and strong support for resource development. Over the last several months, Centerra has undertaken additional technical work and optimizations that have significantly enhanced Goldfield’s value proposition and de-risked the project. Favourable gold prices combined with these developments have improved the Project’s economics, enabling Centerra to move forward with execution. The Project is expected to provide an increase in gold production, which will help offset natural declines at Öksüt, and ensure continuity as Centerra advances its next phase of long-life, gold-copper, cornerstone organic growth projects in British Columbia at Mount Milligan and Kemess. For additional details on Goldfield, refer to the news release published on August 6, 2025 titled “ _Centerra Gold Announces Attractive Economics on the Goldfield Project; Proceeding with Project Development and Construction Activities _”. Two project studies supporting Centerra’s long-life gold-copper organic growth strategy in British Columbia are progressing positively toward completion in the second half of 2025: At Mount Milligan, work on a Pre-Feasibility Study (“PFS”) to evaluate the substantial mineral resources aimed at unlocking additional value beyond its current mine life of 2036 is on track to be completed in the third quarter of 2025. At the Kemess project (“Kemess”), the Company continues to successfully advance work on a Preliminary Economic Assessment (“PEA”), based on an open pit and longhole open stoping underground mining concept, which is expected to be completed by the end of 2025. Kemess has significant infrastructure already in place that will require some refurbishment. Complementing this existing infrastructure, it is anticipated that new crushing, conveying, and mine infrastructure will be required for the operations. Centerra expects the existing infrastructure to lower the execution risk for the project when compared with a typical greenfield project of this scale. These studies represent significant milestones in advancing the Company’s gold growth development pipeline and are focused on unlocking additional value from its assets in British Columbia, a top tier mining jurisdiction.

Overview of Consolidated Financial and Operating Highlights

| ($millions, except as noted) | Three months ended June 30, | Six months ended June 30, | | | | | | | | | | | | 2025 | | 2024 | | % Change | 2025 | | 2024 | % Change | | | | Financial Highlights | | | | | | | | | | | | | Revenue | 288.3 | | 282.3 | | 2 | % | 587.8 | | 588.2 | — | % | | Production costs | 174.9 | | 162.5 | | 8 | % | 373.7 | | 336.3 | 11 | % | | Depreciation, depletion, and amortization (“DDA”) | 26.0 | | 27.5 | | (5)% | 50.1 | | 60.8 | (18)% | | | | Earnings from mine operations | 87.4 | | 92.3 | | (5)% | 164.0 | | 191.0 | (14)% | | | | Net earnings | 68.6 | | 37.7 | | 82 | % | 99.0 | | 104.1 | 5 | % | | Adjusted net earnings (1) | 52.7 | | 46.4 | | 14 | % | 79.0 | | 77.7 | 2 | % | | Adjusted EBITDA (1) | 79.8 | | 46.3 | | 72 | % | 147.8 | | 171.3 | (14)% | | | Cash provided by operating activities | 25.3 | | 2.6 | | 873 | % | 83.9 | | 102.0 | (18)% | | | Free cash flow (deficit) (1) | (25.6 | ) | (27.0 | ) | 5 | % | (15.5 | ) | 54.1 | (129)% | | | Additions to property, plant and equipment (“PP&E”) | 55.6 | | 37.9 | | 47 | % | 123.7 | | 53.2 | 133 | % | | Capital expenditures - total (1) | 53.9 | | 36.3 | | 48 | % | 100.8 | | 53.1 | 90 | % | | Sustaining capital expenditures (1) | 25.8 | | 30.6 | | (16)% | 43.8 | | 46.8 | (6)% | | | | Non-sustaining capital expenditures (1) | 28.1 | | 5.7 | | 393 | % | 57.0 | | 6.3 | 805 | % | | Net earnings per common share - $/share basic (2) | 0.33 | | 0.18 | | 83 | % | 0.48 | | 0.49 | 1 | % | | Adjusted net earnings per common share - $/share basic (1)(2) | 0.26 | | 0.23 | | 13 | % | 0.38 | | 0.36 | 6 | % | | Operating highlights | | | | | | | | | | | | | Gold produced (oz) | 63,311 | | 89,828 | | (30)% | 122,690 | | 201,169 | (39)% | | | | Gold sold (oz) | 61,335 | | 83,258 | | (26)% | 122,466 | | 187,571 | (35)% | | | | Average market gold price ($/oz) | 3,280 | | 2,238 | | 47 | % | 3,070 | | 2,203 | 39 | % | | Average realized gold price ($/oz ) (3) | 2,793 | | 2,097 | | 33 | % | 2,674 | | 1,955 | 37 | % | | Copper produced (000s lbs) | 12,437 | | 13,549 | | (8)% | 24,084 | | 27,880 | (14)% | | | | Copper sold (000s lbs) | 12,103 | | 11,705 | | 3 | % | 24,244 | | 27,327 | (11)% | | | Average market copper price ($/lb) | 4.32 | | 4.42 | | (2)% | 4.28 | | 4.12 | 4 | % | | | Average realized copper price ($/lb) (3) | 3.62 | | 3.79 | | (4)% | 3.71 | | 3.41 | 9 | % | | | Molybdenum roasted (000 lbs) (5) | 3,165 | | 1,948 | | 62 | % | 6,199 | | 4,839 | 28 | % | | Molybdenum sold (000s lbs) | 3,076 | | 2,675 | | 15 | % | 7,320 | | 5,623 | 30 | % | | Average market molybdenum price ($/lb) | 20.72 | | 21.79 | | (5)% | 20.62 | | 19.93 | 3 | % | | | Average realized molybdenum price ($/lb) (3) | 21.43 | | 22.10 | | (3)% | 21.52 | | 21.25 | 1 | % | | | Unit costs | | | | | | | | | | | | | Gold production costs ($/oz) (4) | 1,308 | | 870 | | 50 | % | 1,290 | | 802 | 61 | % | | All-in sustaining costs on a by-product basis ($/oz) (1)(4) | 1,652 | | 1,179 | | 40 | % | 1,572 | | 1,001 | 57 | % | | All-in costs on a by-product basis ($/oz) (1)(4) | 1,901 | | 1,442 | | 32 | % | 1,811 | | 1,191 | 52 | % | | Gold - All-in sustaining costs on a co-product basis ($/oz) (1)(4) | 1,866 | | 1,260 | | 48 | % | 1,804 | | 1,125 | 60 | % | | Copper production costs ($/lb) (4) | 2.06 | | 2.46 | | (16)% | 2.15 | | 2.14 | — | % | | | Copper - All-in sustaining costs on a co-product basis ($/lb) (1)(4) | 2.53 | | 3.21 | | (21)% | 2.54 | | 2.55 | — | % | |

(1) Non-GAAP financial measure. See discussion under “Non-GAAP and Other Financial Measures”.

(2) As at June 30, 2025, the Company had 204,325,992 common shares issued and outstanding.

(3) This supplementary financial measure within the meaning of National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure (“NI 51-112”) is calculated as a ratio of revenue from the consolidated financial statements and units of metal sold and includes the impact from the Mount Milligan Streaming Agreement (defined below), copper hedges and mark-to-market adjustments on metal sold not yet finally settled. Under the Mount Milligan Streaming Agreement, the Company purchases refined gold and copper warrants and arranges for their delivery to Royal Gold and Royal Gold is entitled to 35% of gold ounces sold and 18.75% of copper pounds sold. Royal Gold paid $435 per ounce of gold delivered and 15% of the spot price per tonne of copper delivered in the periods presented.

(4) All per unit costs metrics are expressed on a metal sold basis.

(5) Amount does not include 0.2 million pounds of molybdenum roasted of toll material for the three and six months ended June 30, 2025 (nil in 2024).

2025 Guidance – Gold and copper producing assets

| | Units | 2025 Guidance- updated | Six Months Ended June 30, 2025 | 2025 Guidance- previous | | Production | | | | | | Total gold production (1) | kozs | 250 - 290 | 123 | 270 - 310 | | Mount Milligan Mine (2)(3)(4) | kozs | 145 - 165 | 71 | 165 - 185 | | Öksüt Mine | kozs | 105 - 125 | 52 | 105 - 125 | | Total copper production (2)(3)(4) | Mlbs | 50 - 60 | 24 | 50 - 60 | | Unit Costs (5) | | | | | | Gold production costs (1) | $/oz | 1,300 - 1,400 | 1,290 | 1,100 - 1,200 | | Mount Milligan Mine (2) | $/oz | 1,350 - 1,450 | 1,371 | 1,075 - 1,175 | | Öksüt Mine | $/oz | 1,200 - 1,300 | 1,181 | 1,100 - 1,200 | | AISC on a by-product basis NG(1)(3)(4) | $/oz | 1,650 - 1,750 | 1,572 | 1,400 - 1,500 | | Mount Milligan Mine | $/oz | 1,350 - 1,450 | 1,224 | 1,100 - 1,200 | | Öksüt Mine | $/oz | 1,675 - 1,775 | 1,665 | 1,475 - 1,575 | | Capital Expenditures | | | | | | Additions to PP&E | $M | 105 - 130 | 64.2 | 105 - 130 | | Mount Milligan Mine | $M | 75 - 90 | 40.3 | 75 - 90 | | Öksüt Mine | $M | 30 - 40 | 23.9 | 30 - 40 | | Total capital expenditures NG | $M | 105 - 130 | 47.9 | 105 - 130 | | Sustaining capital expenditures NG | $M | 90 - 110 | 43.2 | 95 - 115 | | Mount Milligan Mine | $M | 60 - 70 | 23.9 | 65 - 75 | | Öksüt Mine | $M | 30 - 40 | 19.3 | 30 - 40 | | Non-sustaining capital expenditures NG | $M | 15 - 20 | 4.7 | 10 - 15 | | Mount Milligan Mine | $M | 15 - 20 | 4.7 | 10 - 15 | | Other Items | | | | | | Depreciation and amortization | $M | 95 - 115 | 47.8 | 95 - 115 | | Mount Milligan Mine | $M | 60 - 70 | 30.8 | 60 - 70 | | Öksüt Mine | $M | 35 - 45 | 17.0 | 35 - 45 | | Current Income tax and BC mineral tax expense (1) | $M | 48 - 55 | 34.4 | 35 - 42 | | Mount Milligan Mine | $M | 3 - 5 | 2.2 | 3 - 5 | | Öksüt Mine | $M | 40 - 50 | 32.2 | 32 - 37 | | Corporate and administration costs (6) | $M | 28 – 32 | 16.7 | 28 - 32 |

(1) Consolidated Centerra figures.

(2) The Mount Milligan Mine is subject to an arrangement with RGLD Gold AG and Royal Gold Inc. (together, “Royal Gold”) which entitles Royal Gold to purchase 35% and 18.75% of gold and copper produced, respectively, and requires Royal Gold to pay $435 per ounce of gold and 15% of the spot price per metric tonne of copper delivered (“Mount Milligan Mine Streaming Agreement”). Using assumed market prices of $3,300 per ounce of gold and $4.00 per pound of copper for the remaining two quarters of 2025, the Mount Milligan Mine’s average realized gold and copper price for that period would be $2,297 per ounce and $3.36 per pound, respectively, compared to average realized prices of $2,371 per ounce and $3.71 per pound in the six months ended June 30, 2025, when factoring in the Mount Milligan Streaming Agreement and concentrate refining and treatment costs.

(3) Gold and copper production for 2025 at the Mount Milligan Mine assumes estimated recoveries of 63% to 65% for gold and 77% to 79% for copper, consistent with the previous guidance, and compared to the actual recoveries for gold of 62.0% and for copper of 77.3% achieved in the six months ended June 30, 2025.

(4) Unit costs include a credit for forecasted copper sales treated as by-product for all-in sustaining costs NG . Production for copper and gold reflects estimated metallurgical losses resulting from handling of the concentrate and metal deductions levied by smelters.

(5) Units noted as ($/oz) relate to gold ounces.

(6) Corporate and administration costs do not include stock-based compensation and corporate depreciation.

2025 Guidance – Molybdenum Business Unit

| | Units | 2025 Guidance | Six Months Ended June 30, 2025 | | Production | | | | | Total molybdenum roasted (1) | Mlbs | 13 - 15 | 6.2 | | Total molybdenum sold | Mlbs | 13 - 15 | 7.3 | | Costs and Profitability – Langeloth | | | | | (Loss) earnings from operations | $M | (3) - 5 | (2.0) | | Adjusted EBITDA NG | $M | 2 - 8 | 0.3 | | Capital Expenditures | | | | | Additions to PP&E | $M | 132 - 150 | 59.2 | | Thompson Creek Mine | $M | 130 - 145 | 58.6 | | Langeloth | $M | 2 - 4 | 0.6 | | Total capital expenditures NG | $M | 132 - 150 | 52.9 | | Sustaining capital expenditures NG – Langeloth | $M | 2 - 4 | 0.6 | | Non-sustaining capital expenditures NG – Thompson Creek Mine | $M | 130 - 145 | 52.3 | | Other Items | | | | | Depreciation and amortization | $M | 3 - 5 | 2.2 | | Langeloth | $M | 3 - 5 | 2.2 | | Care & Maintenance Cash Expenditures – Endako | $M | 6 - 8 | 2.9 | | Reclamation – Endako | $M | 4 - 7 | 3.8 |

(1) 2025 guidance figure does not include any toll material roasted.

2025 Guidance – Global Exploration and Evaluation Projects

| | Units | 2025 Guidance | Six Months Ended June 30, 2025 | | Project Exploration and Evaluation Costs | | | | | Exploration Costs | $M | 40 - 50 | 19.9 | | Brownfield Exploration | $M | 25 - 30 | 12.7 | | Greenfield and Generative Exploration | $M | 15 - 20 | 7.2 | | Evaluation Costs | $M | 8 - 12 | 2.9 | | Other Kemess Costs | | | | | Care & Maintenance | $M | 13 - 15 | 6.4 |