Centerra Gold Reports Fourth Quarter and Full Year 2024 Results and 2025 Outlook; Strong Cash Flow from Operating Activities and $625 Million in Cash and Cash Equivalents

2025-02-20

TSXV - TSX Venture Exchange · Lithium · Copper · Gold · Silver · Molybdenum · Nickel · Cobalt · Canada

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, Feb. 20, 2025 (GLOBE NEWSWIRE) -- Centerra Gold Inc. (“Centerra” or the “Company”) (TSX: CG and NYSE: CGAU) today reported its fourth quarter 2024 operating and financial results, and issued 2025 guidance.

President and CEO, Paul Tomory, commented, “In the fourth quarter, we had steady gold and copper production and ended 2024 near the low end of our production guidance range. At Öksüt, we benefited from elevated production in 2024 by processing inventory that was accumulated during the shutdown in 2022 and 2023 to achieve over 200,000 ounces. Since the restart of operations in June 2023, Öksüt generated close to $550 million in cash provided from operations and over $480 million in free cash flow NG . We generated strong free cash flow at both operations in the fourth quarter, driven by robust contributions from Mount Milligan, which increased our cash and cash equivalents to $625 million. We ended the year with a strong cash balance even after returning close to $90 million to shareholders and initiating capital spending at Thompson Creek, which remains on track with the feasibility study”.

“Looking ahead to 2025, our production guidance reflects Öksüt returning to normal production levels, as previously planned, after two years of processing excess inventory, which in turn has impacted unit costs. We remain disciplined to protect margins through initiatives at our sites including at Mount Milligan through the site optimization program which will continue in 2025. We forecast continued strong free cash flow generation at our operations in 2025, allowing us to fund the restart of Thompson Creek and continue to return capital to shareholders, while preserving our cash for strategic opportunities.”

“We are also focused on upcoming catalysts in 2025 at Mount Milligan and Kemess, which are the foundations for our future growth. At Mount Milligan, the technical studies are progressing better than planned, and we have made the decision to move straight to completing a Prefeasibility Study for the mine. This upgrade, together with an extensive drill program planned for this year, has the objective of significantly increasing proven and probable reserves at Mount Milligan once the study results are announced in the third quarter 2025. We remain optimistic about Mount Milligan’s potential to operate for multiple decades into the future. At Kemess, we are evaluating technical concepts for this large mineral endowment, after investing in a large drill campaign to upgrade resources along a five-kilometer mineralized trend, and expect to provide an updated resource estimate and an accompanying update on the technical concept for Kemess in the second quarter of 2025. We are also active on our exploration program, building on our success in 2024 at our existing brownfield and greenfield sites and looking to expand our current asset base in 2025”.

Fourth Quarter and Full Year 2024 Highlights

Operations

Production: In the fourth quarter 2024, consolidated gold production was 73,224 ounces, including 37,660 ounces from the Mount Milligan Mine (“Mount Milligan”) and 35,564 ounces from the Öksüt Mine (“Öksüt”). Copper production in the quarter was 12.8 million pounds. Full year 2024 consolidated production was 368,104 ounces of gold, near the low end of the guidance range, including production of 167,579 ounces of gold from Mount Milligan and 200,525 ounces of gold from Öksüt. Copper production for the full year was 54.3 million pounds, near the low end of the production guidance range. Sales: Fourth quarter 2024 gold sales were 83,876 ounces at an average realized gold price NG of $2,207 per ounce and copper sales were 16.4 million pounds at an average realized copper price NG of $2.88 per pound. Full year 2024 gold sales were 368,183 ounces at an average realized gold price NG of $2,078 per ounce and copper sales were 57.9 million pounds at an average realized copper price NG of $3.25 per pound. The average realized gold and copper prices include the impact of the Mount Milligan streaming agreement with Royal Gold. Costs: Fourth quarter 2024 consolidated gold production costs were $1,096 per ounce and all-in sustaining costs (“AISC”) on a by-product basis NG were $1,296 per ounce. Full year 2024 consolidated gold production costs were $913 per ounce and AISC on by-product basis NG were $1,148 per ounce, in line with the 2024 guidance ranges. Capital expenditures NG : Fourth quarter 2024 additions to property, plant, and equipment (“PP&E”) and capital expenditures NG were $41.9 million and $46.5 million, respectively. Sustaining capital expenditures NG in the fourth quarter 2024 were $19.5 million and included construction at the tailings storage facility (“TSF”) and water sourcing projects at Mount Milligan, as well as capitalized stripping and expansions at the heap leach pad and waste rock dump at Öksüt. Non-sustaining capital expenditures NG in the fourth quarter were $27.0 million related mainly to the restart of operations at the Thompson Creek Mine (“Thompson Creek”). Full year 2024 additions to PP&E and capital expenditures NG were $174.8 million and $160.1 million, respectively. Sustaining capital expenditures NG for the full year were at the low end of the 2024 guidance range as a result of the deferral of some capital spending to 2025. Non-sustaining capital expenditures NG were in line with the 2024 guidance range.

Financial

Net earnings: Fourth quarter 2024 net loss was $52.5 million, or $0.25 per share, and adjusted net earnings NG were $36.6 million or $0.17 per share. Key adjustments to net loss include $193.6 million of non-cash impairment loss related to the Goldfield Project, $63.1 million of an incremental gain on the sale of Greenstone Partnership and $33.9 million of unrealized gain on the financial asset related to the additional agreement with Royal Gold Inc. (“Royal Gold”). Full year 2024 net earnings were $80.4 million or $0.38 per share and adjusted net earnings NG were $152.9 million or $0.72 per share. Key adjustments to net earnings include $193.6 million of non-cash impairment loss related to the Goldfield Project, $63.1 million of an incremental gain on the sale of Greenstone Partnership, $23.5 million of unrealized gain on the financial asset related to the additional agreement with Royal Gold and $25.4 million of reclamation provision revaluation recovery. 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 fourth quarter 2024, cash provided by operating activities was $92.8 million and free cash flow NG was $47.0 million. This includes $77.0 million of cash provided by mine operations and $65.3 million of free cash flow NG at Mount Milligan and $51.8 million of cash provided by mine operations and $40.5 million of free cash flow NG at Öksüt. This is partially offset by capital expenditures NG at Thompson Creek. Full year 2024 cash provided by operating activities was $298.4 million and free cash flow NG was $138.6 million. This includes $248.4 million of cash provided by mine operations and $206.5 million of free cash flow NG at Öksüt and $176.3 million of cash provided by mine operations and $118.6 million of free cash flow NG at Mount Milligan. This is partially offset by cash used in operating activities and a free cash flow deficit NG from Thompson Creek expenditures. Cash and cash equivalents: Total liquidity of over $1.0 billion as at December 31, 2024, comprising a cash balance of $624.7 million and $400.0 million under a corporate credit facility. Dividend: Quarterly dividend declared of C$0.07 per common share. In 2024, the Company paid $43.5 million in dividends.

Other

Share buybacks: Under Centerra’s normal course issuer bid (“NCIB”) program, the Company repurchased 1,766,130 common shares in the fourth quarter 2024, for the total consideration of $12.2 million. In the full year 2024, Centerra repurchased and cancelled 6,731,430 common shares under its NCIB program for a total consideration of $44.1 million. Renewal of NCIB: In November 2024, Centerra renewed its NCIB to purchase for cancellation up to an aggregate of 18,800,929 common shares in the capital of the Company, representing 10% of the public float. Mount Milligan mine additional agreement with Royal Gold and mine life extension: In February 2024, Centerra announced an additional agreement with Royal Gold related to Mount Milligan, which resulted in a life of mine extension and established favourable parameters for potential future mine life extensions. This agreement was a key first step in the Company’s strategy to realize the full potential of this cornerstone asset in a top-tier mining jurisdiction. In conjunction with the 2024 year-end mineral reserves and mineral resources update, the Company has successfully extended the life of mine at Mount Milligan to 2036 by accelerating the use of mined-out areas of the open pit for waste storage. This approach has increased available storage capacity in the existing tailings facility and extended the overall mine life for the current reserves estimate, while the Company continues with technical work to extend the reserves mine life beyond. Thompson Creek feasibility study results and strategic plan for US Molybdenum Operations: In September 2024, Centerra announced a strategic, integrated business plan for its Molybdenum Business Unit (“MBU”) consisting of a restart of Thompson Creek and a commercially optimized ramp up plan for the Langeloth Metallurgical Facility (“Langeloth”), collectively the US Molybdenum Operations (“US Moly”). The US Moly business is expected to produce an after-tax net present value (“NPV 8% ”) of $472 million. A key contributor to this value is Langeloth, which at full capacity, integrated with Thompson Creek, has the potential to generate robust annual earnings before interest, taxes, depreciation and amortization NG (“EBITDA”).

2025 Guidance Highlights

Production: In 2025, consolidated gold production is expected to be 270,000 to 310,000 ounces, driven by Öksüt returning to normal production levels, as planned, after processing inventory that was accumulated during the shutdown of operations prior to restart in early June 2023. Copper production in 2025 is expected to be 50 to 60 million pounds. Costs: In 2025, consolidated gold production costs are expected to be $1,100 to $1,200 per ounce and AISC on a by-product basis NG is expected to be $1,400 to $1,500 per ounce. Costs are projected to be higher in 2025 compared to 2024 driven mainly by lower gold production at Öksüt and the impact of net inflation in Türkiye. Capital Expenditures NG : In 2025, sustaining capital expenditures NG are expected to be $98 to $120 million, and non-sustaining capital expenditures NG are expected to be $140 to $160 million, mainly driven by the re-start of operations at Thompson Creek. Molybdenum Roasting: In 2025, the Company expects to roast 13 to 15 million pounds of molybdenum, driven by the execution of the commercial optimization plan at Langeloth to ramp up to its full capacity of approximately 40 million pounds per year over the next several years, as previously announced in September 2024.

Overview of Consolidated Financial and Operating Highlights

| ($millions, except as noted) | Three months ended December 31, | Years ended December 31, | | | | | | | | | | | | 2024 | | 2023 | | % Change | 2024 | 2023 | | % Change | | | | Financial Highlights | | | | | | | | | | | | | Revenue | 302.4 | | 340.0 | | (11 | )% | 1,214.5 | 1,094.9 | | 11 | % | | Production costs | 190.6 | | 161.3 | | 18 | % | 710.3 | 706.0 | | 1 | % | | Depreciation, depletion, and amortization ("DDA") | 32.5 | | 40.6 | | (20 | )% | 126.2 | 124.9 | | 1 | % | | Earnings from mine operations | 79.3 | | 138.1 | | (43 | )% | 378.0 | 264.0 | | 43 | % | | Net (loss) earnings | (52.5 | ) | (28.8 | ) | (82 | )% | 80.4 | (81.3 | ) | 199 | % | | Adjusted net earnings (1) | 36.6 | | 61.2 | | (40 | )% | 152.9 | 10.5 | | 1356 | % | | Cash provided by operating activities | 92.8 | | 145.4 | | (36 | )% | 298.4 | 245.6 | | 21 | % | | Free cash flow (1) | 47.0 | | 111.0 | | (58 | )% | 138.6 | 160.2 | | (13 | )% | | Additions to property, plant and equipment (“PP&E”) | 41.9 | | 67.9 | | (38 | )% | 174.8 | 121.7 | | 44 | % | | Capital expenditures - total (1) | 46.5 | | 36.4 | | 28 | % | 160.1 | 88.3 | | 81 | % | | Sustaining capital expenditures (1) | 19.5 | | 34.5 | | (43 | )% | 101.6 | 83.5 | | 22 | % | | Non-sustaining capital expenditures (1) | 27.0 | | 1.9 | | 1321 | % | 58.5 | 4.8 | | 1119 | % | | Net (loss) earnings per common share - $/share basic (2) | (0.25 | ) | (0.13 | ) | (92 | )% | 0.38 | (0.37 | ) | 202 | % | | Adjusted net earnings per common share - $/share basic (1)(2) | 0.17 | | 0.28 | | (39 | )% | 0.72 | 0.05 | | 1340 | % | | Operating highlights | | | | | | | | | | | | | Gold produced (oz) | 73,224 | | 129,259 | | (43 | )% | 368,104 | 350,317 | | 5 | % | | Gold sold (oz) | 83,876 | | 130,281 | | (36 | )% | 368,183 | 348,399 | | 6 | % | | Average market gold price ($/oz) | 2,664 | | 1,974 | | 35 | % | 2,388 | 1,942 | | 23 | % | | Average realized gold price ($/oz ) (3) | 2,207 | | 1,846 | | 20 | % | 2,078 | 1,718 | | 21 | % | | Copper produced (000s lbs) | 12,769 | | 19,695 | | (35 | )% | 54,342 | 61,862 | | (12 | )% | | Copper sold (000s lbs) | 16,361 | | 16,562 | | (1 | )% | 57,897 | 60,109 | | (4 | )% | | Average market copper price ($/lb) | 4.17 | | 3.70 | | 13 | % | 4.15 | 3.85 | | 8 | % | | Average realized copper price ($/lb) (3) | 2.88 | | 3.00 | | (4 | )% | 3.25 | 3.01 | | 8 | % | | Molybdenum roasted (000 lbs) (4) | 2,884 | | 2,247 | | 28 | % | 10,164 | 11,377 | | (11 | )% | | Molybdenum sold (000s lbs) | 2,858 | | 2,158 | | 32 | % | 10,912 | 11,235 | | (3 | )% | | Average market molybdenum price ($/lb) | 21.71 | | 18.64 | | 16 | % | 21.30 | 24.19 | | (12 | )% | | Average realized molybdenum price ($/lb) (3) | 22.67 | | 20.35 | | 11 | % | 22.05 | 25.39 | | (13 | )% | | Unit costs | | | | | | | | | | | | | Gold production costs ($/oz) (5) | 1,096 | | 595 | | 84 | % | 913 | 733 | | 25 | % | | All-in sustaining costs on a by-product basis ($/oz) (1)(5) | 1,296 | | 831 | | 56 | % | 1,148 | 1,013 | | 13 | % | | Gold - All-in sustaining costs on a co-product basis ($/oz) (1)(5) | 1,446 | | 905 | | 60 | % | 1,270 | 1,069 | | 19 | % | | Copper production costs ($/lb) (5) | 1.89 | | 1.85 | | 2 | % | 2.04 | 2.29 | | (11 | )% | | Copper - All-in sustaining costs on a co-product basis ($/lb) (1)(5) | 2.12 | | 2.42 | | (12 | )% | 2.47 | 2.69 | | (8 | )% |

| (1) | Non-GAAP financial measure. See discussion under “Non-GAAP and Other Financial Measures”. | | (2) | As at December 31, 2024, the Company had 210,031,280 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, 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 metric tonne of copper delivered in the periods presented. | | (4) | Amount does not include 0.8 million pounds of molybdenum roasted of toll material for the three months ended December 31, 2024 (2023 - 1.0 million) and 2.3 million pounds of molybdenum roasted of toll material in 2024 (2023 - 1.7 million). | | (5) | All per unit costs metrics are expressed on a metal sold basis. | | | |

2025 Guidance – Gold and copper producing assets

| | Units | 2025 Guidance | 2024 Full Year Results | | Production | | | | | Total gold production (1) | kozs | 270 - 310 | 368 | | Mount Milligan Mine (2)(3)(4) | kozs | 165 - 185 | 168 | | Öksüt Mine | kozs | 105 - 125 | 201 | | Total copper production (2)(3)(4) | Mlbs | 50 - 60 | 54 | | Unit Costs (5) | | | | | Gold production costs (1) | $/oz | 1,100 - 1,200 | 913 | | Mount Milligan Mine (2) | $/oz | 1,075 - 1,175 | 1,105 | | Öksüt Mine | $/oz | 1,100 - 1,200 | 748 | | AISC on a by-product basis NG (1)(3)(4) | $/oz | 1,400 - 1,500 | 1,148 | | Mount Milligan Mine | $/oz | 1,100 - 1,200 | 1,078 | | Öksüt Mine | $/oz | 1,475 - 1,575 | 1,015 | | Capital Expenditures | | | | | Additions to PP&E | $M | 105 - 130 | 110.5 | | Mount Milligan Mine | $M | 75 - 90 | 55.8 | | Öksüt Mine | $M | 30 - 40 | 54.7 | | Total capital expenditures NG | $M | 105 - 130 | 95.9 | | Sustaining capital expenditures NG | $M | 95 - 115 | 95.9 | | Mount Milligan Mine | $M | 65 - 75 | 54.0 | | Öksüt Mine | $M | 30 - 40 | 41.9 | | Non-sustaining capital expenditures NG | $M | 10 - 15 | — | | Mount Milligan Mine | $M | 10 - 15 | — | | Other Items | | | | | Depreciation and amortization | $M | 95 - 115 | 122.8 | | Mount Milligan Mine | $M | 60 - 70 | 72.8 | | Öksüt Mine | $M | 35 - 45 | 50.0 | | Income tax and BC mineral taxes paid (1) | $M | 35 - 42 | 87.5 | | Mount Milligan Mine | $M | 3 - 5 | 3.6 | | Öksüt Mine | $M | 32 - 37 | 83.9 | | Corporate and administration costs (6) | $M | 28 – 32 | $31.8 |

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 an assumed market gold price of $2,400 per ounce and an assumed market copper price of $4.00 per pound for 2025, the Mount Milligan Mine’s average realized gold and copper price for 2025 would be $1,712 per ounce and $3.36 per pound, respectively, compared to average realized prices of $1,761 per ounce and $3.25 per pound in 2024, when factoring in the Mount Milligan Streaming Agreement and concentrate refining and treatment costs. 3. Gold and copper production for 2025 at the Mount Milligan Mine assumes estimated recoveries of 64% to 66% for gold and 77% to 79% for copper compared to actual recoveries for gold of 62.8% and for copper of 74.8% achieved in 2024. 4. Unit costs include a credit for forecasted copper sales treated as by-product for all-in sustaining costs NG . Production for copper and gold reflects estimated metallurgical losses resulting from handling of the concentrate and metal deductions levied by smelters. 5. Units noted as ($/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 | 2024 Full Year Results | | Production | | | | | Total molybdenum roasted (1) | Mlbs | 13 - 15 | 10.2 | | Total molybdenum sold | Mlbs | 13 - 15 | 10.9 | | Costs and Profitability – Langeloth | | | | | (Loss) earnings from operations | $M | (3) - 5 | (7.8) | | EBITDA NG | $M | 2 - 8 | (5.2) | | Capital Expenditures | | | | | Additions to PP&E | $M | 132 - 150 | 62.3 | | Thompson Creek Mine | $M | 130 - 145 | 57.0 | | Langeloth | $M | 2 - 4 | 5.2 | | Total capital expenditures NG | $M | 132 - 150 | 63.1 | | Sustaining capital expenditures NG - Langeloth | $M | 2 - 4 | 5.2 | | Non-sustaining capital expenditures NG - Thompson Creek Mine | $M | 130 - 145 | 57.8 | | Other Items | | | | | Depreciation and amortization | $M | 3 - 5 | 3.4 | | Langeloth | $M | 3 - 5 | 3.4 | | Care & Maintenance – Endako | $M | 6 - 8 | 5.0 | | Reclamation – Endako | $M | 4 - 7 | 9.5 |