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  Title	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
  ID	7134744
  External ID	7567814769
  Author	Unknown
  Published Date	Feb. 20, 2025, 4:11 p.m.
  Summary	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
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  URL	https://www.juniorminingnetwork.com/junior-miner-news/press-releases/922-tsx/cg/175672-centerra-gold-reports-fourth-quarter-and-full-year-2024-results-and-2025-outlook-strong-cash-flow-from-operating-
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  Content ID	4465044
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  Content	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. 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 of $2,207 per ounce and copper sales were 16.4 million pounds at an average realized copper price of $2.88 per pound. Full year 2024 gold sales were 368,183 ounces at an average realized gold price of $2,078 per ounce and copper sales were 57.9 million pounds at an average realized copper price 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 were $1,296 per ounce. Full year 2024 consolidated gold production costs were $913 per ounce and AISC on by-product basis were $1,148 per ounce, in line with the 2024 guidance ranges. Capital expenditures : Fourth quarter 2024 additions to property, plant, and equipment (“PP&E”) and capital expenditures were $41.9 million and $46.5 million, respectively. Sustaining capital expenditures 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 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 were $174.8 million and $160.1 million, respectively. Sustaining capital expenditures 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 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 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 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 : In the fourth quarter 2024, cash provided by operating activities was $92.8 million and free cash flow was $47.0 million. This includes $77.0 million of cash provided by mine operations and $65.3 million of free cash flow at Mount Milligan and $51.8 million of cash provided by mine operations and $40.5 million of free cash flow at Öksüt. This is partially offset by capital expenditures at Thompson Creek. Full year 2024 cash provided by operating activities was $298.4 million and free cash flow was $138.6 million. This includes $248.4 million of cash provided by mine operations and $206.5 million of free cash flow at Öksüt and $176.3 million of cash provided by mine operations and $118.6 million of free cash flow at Mount Milligan. This is partially offset by cash used in operating activities and a free cash flow deficit 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 ”) 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 (“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 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 : In 2025, sustaining capital expenditures are expected to be $98 to $120 million, and non-sustaining capital expenditures 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 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 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 46.5 36.4 28 % 160.1 88.3 81 % Sustaining capital expenditures 19.5 34.5 (43 )% 101.6 83.5 22 % Non-sustaining capital expenditures 27.0 1.9 1321 % 58.5 4.8 1119 % Net (loss) earnings per common share - $/share basic (0.25 ) (0.13 ) (92 )% 0.38 (0.37 ) 202 % Adjusted net earnings per common share - $/share basic 0.17 0.28 (39 )% 0.72 0.05 1340 % Operating highlights Gold produced (oz) 73,224 129,259 (43 )% 368,104 350,317 5 % Gold sold (oz) 83,876 130,281 (36 )% 368,183 348,399 6 % Average market gold price ($/oz) 2,664 1,974 35 % 2,388 1,942 23 % Average realized gold price ($/oz ) 2,207 1,846 20 % 2,078 1,718 21 % Copper produced (000s lbs) 12,769 19,695 (35 )% 54,342 61,862 (12 )% Copper sold (000s lbs) 16,361 16,562 (1 )% 57,897 60,109 (4 )% Average market copper price ($/lb) 4.17 3.70 13 % 4.15 3.85 8 % Average realized copper price ($/lb) 2.88 3.00 (4 )% 3.25 3.01 8 % Molybdenum roasted (000 lbs) 2,884 2,247 28 % 10,164 11,377 (11 )% Molybdenum sold (000s lbs) 2,858 2,158 32 % 10,912 11,235 (3 )% Average market molybdenum price ($/lb) 21.71 18.64 16 % 21.30 24.19 (12 )% Average realized molybdenum price ($/lb) 22.67 20.35 11 % 22.05 25.39 (13 )% Unit costs Gold production costs ($/oz) 1,096 595 84 % 913 733 25 % All-in sustaining costs on a by-product basis ($/oz) 1,296 831 56 % 1,148 1,013 13 % Gold - All-in sustaining costs on a co-product basis ($/oz) 1,446 905 60 % 1,270 1,069 19 % Copper production costs ($/lb) 1.89 1.85 2 % 2.04 2.29 (11 )% Copper - All-in sustaining costs on a co-product basis ($/lb) 2.12 2.42 (12 )% 2.47 2.69 (8 )% Non-GAAP financial measure. See discussion under “Non-GAAP and Other Financial Measures”. As at December 31, 2024, the Company had 210,031,280 common shares issued and outstanding. 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. 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). 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 kozs 270 - 310368 Mount Milligan Mine kozs 165 - 185168 Öksüt Mine kozs 105 - 125201 Total copper production Mlbs 50 - 60 54 Unit Costs Gold production costs $/oz 1,100 - 1,200913 Mount Milligan Mine $/oz 1,075 - 1,1751,105 Öksüt Mine $/oz 1,100 - 1,200748 AISC on a by-product basis $/oz 1,400 - 1,5001,148 Mount Milligan Mine $/oz 1,100 - 1,2001,078 Öksüt Mine $/oz 1,475 - 1,5751,015 Capital Expenditures Additions to PP&E $M 105 - 130110.5 Mount Milligan Mine $M 75 - 90 55.8 Öksüt Mine $M 30 - 40 54.7 Total capital expenditures $M 105 - 13095.9 Sustaining capital expenditures $M 95 - 115 95.9 Mount Milligan Mine $M 65 - 75 54.0 Öksüt Mine $M 30 - 40 41.9 Non-sustaining capital expenditures $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 $M 35 - 42 87.5 Mount Milligan Mine $M 3 - 5 3.6 Öksüt Mine $M 32 - 37 83.9 Corporate and administration costs $M 28 – 32 $31.8 Consolidated Centerra figures. 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 $3.25 per pound in 2024, when factoring in the Mount Milligan Streaming Agreement and concentrate refining and treatment costs. Gold and copper production for 2025 at the Mount Milligan Mine assumes estimated recoveries of 64% to 66% for gold and 77% to 79% for copper compared to actual recoveries for gold of 62.8% and for copper of 74.8% achieved in 2024. Unit costs include a credit for forecasted copper sales treated as by-product for all-in sustaining costs. Production for copper and gold reflects estimated metallurgical losses resulting from handling of the concentrate and metal deductions levied by smelters. Units noted as ($/oz) relate to gold ounces. 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 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 $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 $M 132 - 150 63.1 Sustaining capital expenditures - Langeloth $M 2 - 4 5.2 Non-sustaining capital expenditures - 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 Amount does not include 2.3 million pounds of molybdenum toll roasted in 2024. 2025 guidance figure does not include any toll material roasted. 2025 Guidance – Global Exploration and Evaluation Projects Units 2025 Guidance 2024 Full Year Results Project Exploration and Evaluation Costs Exploration Costs $M 35 - 45 39.9 Brownfield Exploration $M 20 - 25 21.1 Greenfield and Generative Exploration $M 15 - 20 18.8 Evaluation Costs $M 8 - 12 29.8 Other Kemess Costs Care & Maintenance $M 13 - 15 12.9 Mount Milligan Mount Milligan produced 37,660 ounces of gold and 12.8 million pounds of copper in the fourth quarter of 2024. In the full year 2024, Mount Milligan produced 167,579 ounces of gold and 54.3 million pounds of copper, which was lower than planned primarily due to lower gold grades encountered in areas of phases 6 and 9 that are at the periphery of the ore body. During fourth quarter of 2024, a total of 9.6 million tonnes was mined from phases 5, 6, 7, 9 and 10 of the open pit. Process plant throughput for the fourth quarter of 2024 was 5.4 million tonnes, averaging 58,948 tonnes per day, slightly lower than planned primarily due to unscheduled ball mill downtime. Copper recovery in the fourth quarter was impacted by high levels of pyrite, partially oxidized ore and low-grade ore fed from the stockpile. Gold sales were 47,887 ounces and copper sales were 16.4 million pounds in the fourth quarter, up 4% and 15% respectively, compared to last quarter. The higher sales volumes were anticipated due to the timing of shipments. In 2025, Mount Milligan gold production is expected to be 165,000 to 185,000 ounces and copper production is expected to be 50 to 60 million pounds. In 2025, gold and copper grades are expected to be similar to those in 2024, and gold and copper recoveries in 2025 are expected to be higher than last year. A relative improvement in recoveries is expected to be driven by a reduction in the copper concentrate sales grade as well as other ongoing plant optimization projects. Mount Milligan’s processing plant is expected to operate at higher mill throughput levels in 2025 compared to 2024 due to materials handling improvements implemented in 2024. Gold production and sales are expected be relatively evenly weighted through 2025. Copper production is expected to be weighted to the second half of 2025 and copper sales are expected to track production closely. Gold production costs in the fourth quarter 2024 were $1,219 per ounce. AISC on a by-product basis was $1,114 per ounce, 14% lower than last quarter due to decreased sustaining capital expenditures. Full year gold production costs in 2024 were $1,105 per ounce and AISC on a by-product basis was $1,078 per ounce, at the low end of the AISC on a by-product basis guidance range. Gold production costs in 2025 at Mount Milligan are expected to be $1,075 to $1,175 per ounce and AISC on a by-product basis is expected to be $1,100 to $1,200 per ounce. AISC on a by-product basis per ounce is expected to fluctuate through 2025 due to timing of capital spending, most of which is expected in the first nine months of the year. In the fourth quarter 2024, sustaining capital expenditures at Mount Milligan were $7.8 million, focused on the tailings storage facility dam construction and water sourcing projects. Full year 2024 sustaining capital expenditures were $54 million, near the low end of the guidance range. In 2025, Mount Milligan additions to PP&E are expected to be $75 and $90 million, comprising $65 to $75 million in sustaining capital and $10 to $15 million in non-sustaining capital. Sustaining capital includes projects carried over from 2024, equipment rebuilds, a one-time purchase of large truck boxes to optimize payload and reduce future truck purchases, and annual capital related to the TSF. Non-sustaining capital includes purchases required for truck fleet expansion and exploration in-fill drilling targeting extensions beyond the current life of mine reserves. In the fourth quarter of 2024, Mount Milligan generated solid cash flow from mine operations of $77.0 million and $65.3 million of free cash flow. Full year cash flow from mine operations and free cash flow were $176.3 million and $118.6 million, respectively. The site-wide optimization program at Mount Milligan, initially launched in the fourth quarter 2023, continues to progress. This program covers all aspects of the operation to maximize the potential of the ore body, setting up Mount Milligan for long-term success for the current mine life and beyond. Notable achievements in 2024 include: an improved safety record, demonstrated by fewer significant incidents relative to 2023; increased fleet availability and productivity across different types of equipment; reduction in consumption and unit cost of grinding media; decrease in maintenance costs through a more efficient preventive maintenance schedule; and reduction in the copper concentrate grade, leading to steady gold recoveries despite lower head grades. As a result of the optimization program, Mount Milligan has reduced operating costs. The Company continues to see productivity improvements in the load-haul cycle at the mine, as well as improvements in the unit processing costs. In the full year 2024, milling costs were $5.33 per tonne processed, 11% lower than 2023 despite a slight decrease in throughput. In 2024, the Company identified an opportunity to accelerate the use of in-pit mine potential acid generating (“PAG”) waste storage, which increased the available capacity in the existing tailings facility. As a result, mine operating costs are expected to improve over the life of mine (“LOM”) and there was an increase in the stated proven and probable reserves as at December 31, 2024. This resulted in a LOM extension by approximately one year to 2036. In February 2024, Centerra announced that the Company entered into an additional agreement with Royal Gold relating to Mount Milligan, which resulted in a two-year life of mine extension and established favourable parameters for potential future mine life extensions. At Mount Milligan, work on technical studies to evaluate the substantial mineral resources to unlock additional value beyond its current mine life is progressing better than planned, and the Company has made the decision to move directly to a Pre-feasibility Study Technical Report (“PFS”). The Company is optimistic that the mine life can be extended beyond the current mine life of approximately 2036, which is based on the available space in the existing TSF. Centerra is evaluating options for additional tailings capacity by expanding the existing TSF or constructing a second one. It is also expected that the PFS will incorporate an increase of annual mill throughput in the range of 10% through ball mill motor upgrades and additional downstream flowsheet improvements at a modest overall capital expenditure, which may also provide the benefit of improved overall metal recovery. The PFS and associated updated mineral reserves estimate are expected to be announced in the third quarter of 2025. As Centerra looks to the future of Mount Milligan beyond 2036, the establishment of the new Mining and Critical Minerals Ministry is an encouraging step forward, demonstrating the Province of British Columbia’s commitment to streamlining permitting and regulatory processes for critical mineral projects, including Mount Milligan. Öksüt Öksüt produced 35,564 ounces of gold in the fourth quarter of 2024. Öksüt has completed processing the excess gold inventory that it had accumulated in 2022 and 2023, leading to elevated gold production levels. Full year production in 2024 was 200,525 ounces of gold which was at the mid-point of the guidance range. During the quarter, mining activities were focused on phase 5 and phase 4 of the Keltepe pit and in phase 2 of the Güneytepe pit. A total of 4.4 million tonnes were mined in the quarter, which was greatest number of tonnes moved in the mine’s history and 1.1 million tonnes were stacked at an average grade of 0.99 g/t. In 2025, gold production is expected to be 105,000 to 125,000 ounces, driven by a return to planned production levels. Gold production was elevated in the first nine months of 2024 as the inventory and stockpiles from an operations shutdown in 2022 and 2023 were being processed through the adsorption, desorption, and recovery (“ADR”) plant. As a result of mine sequencing, the grade profile of material mined and processed in 2025 is expected to be on average 20% lower than 2024. Gold production and sales are expected to be relatively evenly distributed throughout 2025. At Öksüt, gold production costs and AISC on a by-product basis for the fourth quarter 2024 were $933 per ounce and $1,327 per ounce, respectively. These costs were impacted by relatively lower gold production and higher royalty expense due to elevated gold prices, which also contributed to higher cash flows and margin. Full year gold production costs were $748 per ounce and AISC on a by-product basis was $1,015 per ounce, near the upper end of the cost guidance range. 2025 gold production costs at Öksüt are expected to be $1,100 to $1,200 per ounce, and AISC on a by-product basis is expected to be $1,475 to $1,575 per ounce, both higher than 2024 primarily due to a lower production profile and partially due to the impact of inflation in Türkiye, which was not fully offset by devaluation of the lira in 2024. The Company expects an impact of approximately 10% to 15% net inflation on Öksüt’s production costs due to higher contract mining and labour costs. These costs adjust at the start of every year in response to inflationary pressures and cost of living increases in the country. AISC on a by-product basis per ounce is expected to fluctuate through 2025 due to timing of capital spending, most of which is expected in the first nine months of the year. In the fourth quarter 2024, sustaining capital expenditures at Öksüt were $11.3 million, focused on capitalized stripping, heap leach pad expansion, and waste rock dump expansion. Full year 2024 sustaining capital expenditures were $41.9 million, in line with the guidance range. In 2025, Öksüt additions to PP&E are expected to be between $30 and $40 million, all of which is sustaining capital and includes capital stripping, heap leach construction, and some infrastructure improvements. In the fourth quarter of 2024, Öksüt delivered cash flow from mine operations of $51.8 million and free cash flow of $40.5 million. In the full year 2024, Öksüt generated $248.4 million of cash flow from mine operations and $206.5 million of free cash flow. The Turkish corporate income tax rate applicable to Öksüt is 25%. In 2025, Öksüt’s current income taxes paid are expected to be between $32 and $37 million, which includes withholding tax related to the repatriation of earnings. Cash flows at Öksüt in the second quarter of 2025 are expected to be impacted by the expected timing of tax and annual royalty payments. Molybdenum Business Unit In the fourth quarter of 2024, MBU used $12.3 million of cash for operations and had a free cash flow deficit of $35.1 million, which was primarily due to increased capital spending at Thompson Creek, following the restart decision in September 2024. Thompson Creek Mine On September 12, 2024, Centerra announced the results from its Thompson Creek feasibility study. The initial capital investment to restart Thompson Creek is approximately $397 million. The capital required is significantly de-risked due to an existing pit, significantly advanced equipment rebuilds and purchases, and an existing process plant that requires modest upgrades and refurbishments. The majority of the anticipated capital expenditures are expected to be focused on capitalized stripping, plant refurbishments and mine mobile fleet upgrades. At current metal prices, the capital investment to restart Thompson Creek is expected to be funded largely from Centerra’s cash flow from operations at Mount Milligan and Öksüt. Fourth Quarter 2024 Highlights of Thompson Creek Restart Activities Thompson Creek continued pre-stripping operations with 4.1 million tons moved; Detailed engineering work for the plant refurbishment was initiated with an engineering consulting firm, with a focus on engineering and procurement for long-lead items; Preliminary mill refurbishment activities commenced, with initial demolition of the copper cementation area and flotation cells completed; Mobile fleet refurbishment is on track and approximately 80% complete, with the majority of the work on trucks, shovels, dozers and road graders completed; and The project schedule is on track and in line with the feasibility study, targeting first production in the second half of 2027. In the fourth quarter of 2024, non-sustaining capital expenditures were $27.0 million. Since the restart decision, non-sustaining capital expenditures were $29.6 million, slightly lower than the feasibility study, mainly due to a slightly slower ramp-up of mining workforce and timing of mining equipment purchases. The project remains in line with the total initial capital expenditures estimate of $397 million as outlined in the feasibility study. In 2025 additions to PP&E, all of which are non-sustaining capital, are expected to be $130 to $145 million. The Company expects to commission the remaining haul trucks, shovels and drills to achieve planned mine production with a ramp-up of tons moved per month throughout 2025, and substantially complete detailed engineering work and procurement of long-lead mill equipment by the end of the third quarter of 2025. Centerra maintains a strong cash position of $624.7 million, ensuring sufficient liquidity to finance ongoing project activities. The Company continues to expect to finance the majority of 2025 expenditures from the cash flows provided by Mount Milligan and Öksüt. Since the restart decision in September 2024, Thompson Creek moved 4.7 million tons of waste. 14 haul trucks and 2 electric shovels are currently operating with 5 more haul trucks and 1 shovel expected to be placed in service by the end of the first quarter of 2025. Activities in the pit focused on development in the Union Gap area for electrical shovel access. By the end of 2024, Thompson Creek had 170 people on-site, including contractors and employees. Most of the key operations management positions have been filled and approximately 75% of the workforce was hired locally. Site infrastructure development, including local housing capacity, is underway with work expected to be completed by the end of 2025. Langeloth In the fourth quarter of 2024, Langeloth roasted and sold 2.9 million pounds of molybdenum and generated a loss from operations of $0.9 million and nil EBITDA. For the full year 2024, Langeloth roasted and sold 10.2 million and 10.9 million pounds of molybdenum, respectively. Loss from operations was $7.8 million in line with guidance and EBITDA was negative $5.2 million. In 2024, Langeloth operated below its previously disclosed breakeven capacity of approximately 14 million pounds. The Company has negotiated with molybdenum concentrate suppliers and customers at the end of 2024 to increase the volumes purchased and sold. As the operations ramp up, Langeloth is expected to generate positive EBITDA this year. In 2025, Langeloth is expected to generate between $3 million loss and $5 million earnings from operations and EBITDA of $2 to $8 million, which represents an improvement from 2024. As part of the previously disclosed commercial optimization plan, Langeloth is expected to commence a ramp-up of operations and increase roasting output from 10 million pounds in 2024 to between 13 to 15 million pounds in 2025. The Company expects to benefit from the current supply deficit in the molybdenum market and grow the business to meet market demand. The Company also expects the current production cost structure to remain relatively stable in 2025, which should allow for further improvements in profitability. In the fourth quarter of 2024, cash flow used in operations was $6.3 million, primarily due to an unfavorable working capital change due to timing of vendor payments and cash collections from customers. Cash provided by operations at Langeloth is dependent on working capital requirements, which are subject to market molybdenum prices. In 2024, additions to PP&E were $5.2 million, all of which were sustaining capital, and mainly included costs related to the extended shutdown of the acid plant, which is regular maintenance that is performed every few years. In 2025, additions to PP&E, all of which are sustaining capital, are expected to be $2 to $4 million. Kemess Project (“Kemess”) The Kemess property has substantial gold and copper resources in a highly prospective district with significant infrastructure already in place, including: a 300 kilometer, 230 kilovolt power line, one of the longest privately owned power lines in British Columbia; a 50,000 tonnes per day nameplate processing plant, which would require some refurbishment and equipment replacements; site infrastructure including a camp, administration facilities, truck shop and warehouse; and tailings storage through in-pit and an existing facility, which is capable of expansion. Centerra is currently working to update the Kemess resource model for the results from a drilling campaign conducted in 2024. The program included over 11,400 meters of core drilling for exploration, geotechnical, and metallurgical testing purposes. During 2024, Centerra commenced evaluation of technical concepts and engineering trade-off studies for potential restart options at Kemess. Early operating concepts include a combined open pit and conventional underground operation, which is expected to be less capital intensive and have a better cash flow profile than the previously permitted underground block cave concept. In addition to an exploration campaign in 2025 to further delineate the resource, the Company is planning on continuing to advance the technical studies that will include metallurgical testing for flowsheet optimization, mine plan optimization, materials handling infrastructure engineering, tailings design optimization, as well as initiation of environmental baseline studies. Early indications show potential for a long-life operation that takes advantage of the significant infrastructure already in place. The Company expects to provide an updated resource estimate and an accompanying update on the technical concept for Kemess in the second quarter of 2025. Care and maintenance costs are expected to be $13 to $15 million while project evaluation costs in 2025 are expected to be $4 to $6 million, in addition to exploration costs at the property of $4 to $6 million (included in the overall Global Exploration guidance outlined below). Global Exploration In 2025, exploration expenditures are expected to be $35 to $45 million, including $20 to $25 million of brownfield exploration and $15 to $20 million of greenfield and generative exploration programs. Over 80% of exploration expenditures are expected to be expensed. The exploration targets for brownfield projects include further drilling and testing work at Mount Milligan and Kemess. 2025 Material Assumptions Material assumptions or factors used to forecast production and costs for 2025, after giving effect to the hedges in place as at December 31, 2024, include the following: A market gold price of $2,400 per ounce and an average realized gold price at Mount Milligan of $1,712 per ounce after reflecting the streaming arrangement with Royal Gold (35% of Mount Milligan’s gold at $435 per ounce). A market copper price of $4.00 per pound and an average realized copper price at Mount Milligan of $3.36 per pound after reflecting the streaming arrangement with Royal Gold (18.75% of Mount Milligan’s copper at 15% of the spot price per metric tonne). A molybdenum price of $20.00 per pound. Exchange rates: $1USD:$1.35 Canadian dollar; $1USD:34.00 Turkish lira. Diesel fuel price assumption: $1.05 per litre (C$1.45 per litre) at Mount Milligan and $3.00 per US gallon at Thompson Creek. Other Material Assumptions Other material assumptions used in forecasting production and costs for 2025 can be found under the heading “Caution Regarding Forward-Looking Information” in this document. Production, cost, and capital forecasts for 2025 are forward-looking information and are based on key assumptions and subject to material risk factors that could cause actual results to differ materially and which are discussed under the heading “Risk Factors” in the Company’s most recent Annual Information Form. 2025 Sensitivities Centerra’s revenues, earnings and cash flows for 2025 are sensitive to changes in certain key inputs or currencies. The Company has estimated the impact of any such changes in the table below.
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