Centerra Gold Reports Solid Q2 2024 Results with Strong Production and Strategic Advancements

Centerra Gold has announced its second-quarter 2024 financial and operational results, demonstrating strong performance and strategic progress across its key projects. President and CEO Paul Tomory highlighted the company's continued solid operating performance and consistent cash flow from operations, aligning with the company's guidance for the year.

Operational Highlights

• Production: Centerra achieved consolidated gold production of 89,828 ounces in Q2 2024, with 38,609 ounces from the Mount Milligan Mine and 51,219 ounces from the Oksut Mine. The company also produced 13.5 million pounds of copper during the quarter.
• Sales: Gold sales totaled 83,258 ounces at an average realized price of $2,097 per ounce, while copper sales were 11.7 million pounds at an average realized price of $3.79 per pound. These prices reflect the impact of the Mount Milligan streaming agreement.
• Costs: Consolidated gold production costs were $870 per ounce, with all-in sustaining costs (AISC) on a by-product basis at $1,179 per ounce.
• Capital Expenditures: Investments in property, plant, and equipment (PP&E) reached $37.9 million, with sustaining capital expenditures totaling $30.6 million. Key investments included tailings storage facility enhancements, equipment overhauls, water sourcing projects, and exploration at Mount Milligan, alongside expansions at the heap leach pad and waste rock dump at Oksut.

Financial Highlights

• Net Earnings: Centerra reported net earnings of $37.7 million, or $0.18 per share, for Q2 2024. Adjusted net earnings were $46.4 million, or $0.23 per share, accounting for adjustments related to financial asset losses, foreign currency gains, and reclamation provision recoveries.
• Cash Flow: The company generated $93.7 million in cash from operating activities before working capital and tax payments. Overall cash flow from operations was $2.6 million, with a free cash flow deficit of $27.0 million, primarily due to statutory tax and royalty payments at Oksut.
• Liquidity: Centerra's total liquidity as of June 30, 2024, was $992.4 million, including a cash balance of $592.4 million and $400.0 million available under a corporate credit facility.
• Dividend: A quarterly dividend of C$0.07 per common share was declared.