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
Executive Summary
- Centerra Gold reported Q2 2025 net earnings of $68.6 M ($0.33/share), a 82% increase year‑over‑year, with adjusted net earnings of $52.7 M.
- Consolidated gold production was 63,311 oz (Mount Milligan 35,058 oz; Öksüt 28,253 oz) and copper production 12.4 M lb; cash flow from operations before working‑capital changes was $98.4 M.
- The company updated 2025 gold production cost guidance for Mount Milligan ($1,350–$1,450/oz) and Öksüt ($1,200–$1,300/oz), raised the share‑repurchase target to $75 M (already $42 M repurchased), and highlighted attractive economics for the Goldfield project (NPV₅% $245 M; IRR 30%; first production expected end‑2028).
Key Details
- Financial Performance
- Net earnings: $68.6 M vs. $37.7 M in Q2 2024 (+82%).
- Adjusted net earnings (non‑GAAP): $52.7 M vs. $46.4 M prior year (+14%).
- Cash provided by operating activities before WC & taxes: $98.4 M (up 22% QoQ).
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Total liquidity as of June 30 2025: $922.3 M (cash $522.3 M + credit facility $400 M).
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Production & Sales
- Gold sold: 61,335 oz at average realized price $2,793/oz.
- Copper sold: 12.1 M lb at $3.62/lb.
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Consolidated gold production cost: $1,308/oz; AISC (by‑product basis) $1,652/oz.
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Capital Expenditures
- Total CAPEX Q2 2025: $53.9 M (sustaining $25.8 M, non‑sustaining $28.1 M).
- Mount Milligan sustaining CAPEX: $14.7 M (TSF dam construction, capitalized exploration).
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Öksüt sustaining CAPEX: $10.6 M (heap leach pad expansion, water‑treatment plant).
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Guidance Updates
- 2025 gold production guidance revised:
- Mount Milligan: 145–165 k oz (down from 165–185 k oz).
- Öksüt: unchanged at 105–125 k oz.
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Updated cost guidance (per‑ounce):
- Mount Milligan gold production cost $1,350–$1,450 (previous $1,075–$1,175).
- Mount Milligan AISC $1,350–$1,450 (previous $1,100–$1,200).
- Öksüt gold production cost $1,200–$1,300 (previous $1,100–$1,200).
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Shareholder Returns
- Quarterly dividend declared: C$0.07/share ($10.5 M for the quarter; $20.6 M YTD).
- NCIB repurchases Q2 2025: 3,889,507 shares for $27.0 M (up 80% QoQ).
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Board approved up to $75 M of share repurchases in 2025; $42 M already executed YTD.
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Project Development – Goldfield
- Technical study confirms NPV₅% $245 M, IRR 30% (using $2,500/oz long‑term gold price).
- Initial capital cost: $252 M (incl. ~$40 M pre‑production stripping).
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Expected first production: end of 2028; average peak output ~100 k oz/year; all‑in sustaining costNG $1,392/oz.
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Mount Milligan Pre‑Feasibility Study
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PFS on additional resources slated for Q3 2025 to evaluate life‑extension beyond 2036 and potential 10% mill throughput increase via ball‑mill motor upgrades.
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Kemess Project
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Preliminary Economic Assessment (PEA) targeted for completion by end‑2025; aims to leverage existing infrastructure to lower execution risk.
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Thompson Creek Restart
- Non‑sustaining CAPEX to date: $81.9 M; total project CAPEX target $397 M.
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First production anticipated in H2 2027.
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Molybdenum Business Unit (Langeloth)
- Q2 2025 roasted 3.2 M lb Mo, sold 3.1 M lb; adjusted EBITDA $0.2 M.
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Free cash flow deficit of $26.9 M reflecting capital spending for future cash‑flow generation.
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Conference Call
- Management webcast scheduled for Thursday, August 7 2025 at 09:00 ET (details provided).
Notable Quotes
“We maintained a robust financial position, which has enabled Centerra to increase share buybacks to $27 million in the second quarter… We are pleased to be advancing with development and construction at the Goldfield project.” – Paul Tomory, President & CEO
Materiality: Material – Positive (significant earnings improvement, updated guidance, major project economics disclosed).