Centerra Gold Maps Self-Funded Growth With Mine Extensions and Moly Restart

Centerra Gold NYSE: CGAU outlined a self-funded growth strategy centered on its operating mines, development projects and U.S. molybdenum business during the Midwest IDEAS Conference, with management emphasizing its cash position, planned capital spending sequence and potential mine-life extensions. Lisa Wilkinson, Centerra’s vice president of investor relations, said the Toronto-based miner produces gold, copper and molybdenum through operations in Canada, the United States and Turkey. Its producing assets include the Mount Milligan gold-copper mine in British Columbia and the Öksüt gold mine in Turkey. Centerra is pursuing self-funded growth with C$451 million in cash, more than C$1 billion in liquidity and no debt. It plans to repurchase C$200 million of shares while using operating cash flow to fund its development pipeline without issuing dilutive equity or taking on restrictive financing. Existing mines are supporting expansion: Mount Milligan’s mine life was extended to 2045 and has generated more than C$245 million in free cash flow since the study was released, while Öksüt is being evaluated for a one- to two-year extension beyond its expected 2029 closure. Growth projects are being sequenced to manage capital spending. Thompson Creek’s molybdenum restart is on schedule for first production in mid-2027, Goldfield is targeted for late-2028 production, and Kemess could begin production in late 2031 following further study and a construction decision. Mount Milligan is expected to produce 140,000 to 155,000 ounces of gold and 50 million to 60 million pounds of copper, while Öksüt is expected to generate 120,000 to 135,000 ounces of gold. Centerra also owns the Thompson Creek molybdenum mine in Idaho, the Endako molybdenum mine in British Columbia, and the Langeloth roasting facility near Pittsburgh. Centerra had C$451 million in cash at the end of June and more than C$1 billion in liquidity, including an undrawn C$600 million credit facility. The company has no debt. Centerra plans to repurchase C$200 million of shares during the year and has paid a quarterly dividend for the past six-and-a-half years. The company’s dividend yield was approximately 1% to 1.5%. Management argued that the shares trade at a discount to peers. Centerra was trading at roughly 0.5 times net asset value, compared with an average of 0.7 times for peers. The company’s 21.4 million gold-equivalent ounces of resources, 98% of which are located in Canada and the U.S. Centerra’s September 2025 pre-feasibility study for Mount Milligan included a second tailings dam and extended the mine life by 10 years to 2045. The plan also calls for a roughly 10% mill-throughput increase in 2028 and an anticipated recovery improvement of about 1%. Mount Milligan had generated more than C$245 million of free cash flow since the study was released. Addressing prior operating challenges, the mine’s complex geology requires improved visibility into grades and ore blending. Grade-control drilling is now providing a six- to 18-month outlook, enabling the company to create stockpiles and optimize mill feed. Past water shortages associated with drought conditions in northern British Columbia have been mitigated through additional water sources. At Öksüt, which is currently expected to operate through 2029, Centerra is studying a potential one- to two-year mine-life extension using lower-grade oxidized material at the bottom of the pit.