Centerra Gold Announces Attractive Economics on the Goldfield Project; Proceeding with Project Development and Construction Activities
Executive Summary
- Centerra Gold completed a technical study of the Nevada‑based Goldfield Project, confirming after‑tax NPV5% of $245 million and IRR of 30 %, based on a $2,500/oz long‑term gold price.
- The company will fund the project from existing liquidity and has begun detailed engineering, early procurement, and contract‑mining arrangements; first production is targeted for end‑2028.
- Initial capital cost is estimated at $252 million (including $40 M pre‑production stripping), with a 7‑year mine life delivering ~100,000 oz/year peak gold output at an AISC of ≈ $1,392/oz.
Key Details
- Economic Highlights
- After‑tax NPV5%: $245 M
- After‑tax IRR: 30 %
- Long‑term gold price assumption: $2,500/oz (includes hedging impact).
- Initial capital cost: $252 M (incl. $40 M pre‑production stripping).
- Peak annual production: ~100,000 oz (2029‑2032).
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All‑in sustaining cost (AISC): ≈ $1,392/oz.
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Gold Hedging Strategy
- Hedge 50 % of production in 2029 & 2030 at no cost to the company.
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Hedge floor price: $3,200/oz; average ceiling prices: $4,435/oz (2029) and $4,705/oz (2030).
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Capital Expenditure Breakdown
- Mine – $10 M, Crushing – $22 M, Processing – $34 M, Power & Electrical – $26 M, Heap Leach – $17 M, Site General – $27 M.
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Indirects – $40 M, Contingency – $35 M, Pre‑production stripping/other – $41 M.
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Production & Cost Profile (selected years) | Year | Gold Production (koz) | AISC ($/oz) | |------|-----------------------|-------------| | 2029 | 114 | $1,419 | | 2030 | 120 | $1,194 |
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First production in partial 2028 year (22 koz).
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Mineral Reserves & Resources (June 30 2025)
- Proven & Probable Reserves: 706 koz (33.3 Mt @ 0.66 g/t).
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Measured & Indicated Resources (incl. reserves): 794 koz (37.0 Mt @ 0.67 g/t).
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Development Timeline
- 2025: $2‑$5 M study/field work.
- 2026: Final engineering, long‑lead procurement.
- 2027: Major construction (heap leach pad, crushing & processing).
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2028: Construction & pre‑commissioning; commissioning to meet first production by year‑end.
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Employment & Community Impact
- Construction jobs: 300‑400; Operations jobs: 250‑300.
- Expected local spend: >$300 M over life of mine; direct taxes ≈ $100 M.
Notable Quotes
“We are pleased to be advancing with development and construction at the Goldfield project… The project is expected to be funded from Centerra’s existing liquidity and will deliver strong returns.” – Paul Tomory, President & CEO
All forward‑looking statements are subject to risks and uncertainties detailed in the release.