Centerra Gold Reports Strong Fourth Quarter 2025 Results

In the fourth quarter of 2025, Centerra Gold showcased impressive operational and financial performance, underlining its strong market positioning and strategic growth initiatives. The company exceeded its gold production guidance, achieved lower all-in sustaining costs, and returned significant capital to shareholders. As the company gears up for 2026, its focus on organic growth and strategic investment continues to drive positive expectations among investors.

Financial Performance

Centerra Gold's fourth quarter results reveal a robust financial standing:

• Adjusted net earnings reached $83 million or $0.41 per share, buoyed by strong production levels and favorable metal prices.
• The company produced over 68,000 ounces of gold and 12.5 million pounds of copper in Q4, marking a strong finish to the year.
• For the full year 2025, adjusted net earnings totaled $229 million, or $1.12 per share.
• Cash flow from operations was strong, generating $103 million in Q4 and $349 million for the full year.

Centerra Gold ended the year with a cash balance of $529 million, demonstrating its financial resilience and ability to fund growth initiatives while returning capital to shareholders. The company returned $135 million to shareholders, including $94 million in share buybacks and $41 million in dividends throughout 2025.

The company's all-in sustaining costs on a byproduct basis were $1,614 per ounce for the full year, outperforming its guidance and reflecting strong operational efficiencies.

Strategic Initiatives

Centerra Gold is executing several significant strategic initiatives aimed at sustainable growth and enhanced operational performance:

• Mount Milligan Expansion: The company published a preliminary feasibility study (PFS) which extends the mine life of Mount Milligan by an additional 10 years to 2045. This move is expected to continue generating strong cash flows and bolster production.
• Goldfield Project Development: Centerra initiated development of the Goldfield project in Nevada, which will provide exposure to future gold production in a premier mining jurisdiction. This project is positioned as a key element of the company’s growth strategy.
• CMS Project Advancement: The preliminary economic assessment (PEA) for the CMS project highlighted a de-risked restart plan, leveraging existing infrastructure and focusing on a robust development strategy. The project is projected to yield an average annual production of 171,000 ounces of gold and 61 million pounds of copper, with an after-tax NPV of $1.1 billion.
• Sustainability Efforts: Centerra Gold successfully secured all necessary permits to continue Mount Milligan's operations through 2035, which includes a 10% increase in plant throughput starting in 2028. This reflects the company's commitment to responsible mining practices and community engagement.

Future Outlook

Looking ahead, Centerra Gold provided a strong outlook for 2026:

• Production Guidance: The company expects to produce between 250,000 and 280,000 ounces of gold and 50 to 60 million pounds of copper. The forecast is primarily based on executing its PFS mine plan at Mount Milligan.
• Cost Management: All-in sustaining costs for 2026 are projected to be between $1,650 and $1,750 per ounce, reflecting disciplined cost management despite anticipated inflation and increased royalty expenses.
• Investment in Growth: The company plans to invest $260 to $350 million across its growth pipeline, including significant expenditures for the restart of operations at Thompson Creek and the development of Goldfield.
• Exploration Commitment: Centerra is committed to spending between $40 and $50 million on exploration initiatives, focusing on both brownfield and greenfield projects, as it aims to enhance its mineral reserves and resources.

Paul Tumori, President and CEO, expressed confidence in the company's strong operational execution and capital allocation strategy, stating:

“Our balance sheet strength and consistent cash generation give us the flexibility to self-fund an attractive pipeline of low-risk, value-accretive growth.”

Conclusion

In summary, Centerra Gold's fourth quarter 2025 earnings call reinforced the company's strong financial performance, strategic growth initiatives, and optimistic outlook for 2026. With robust production metrics, disciplined cost management, and a commitment to returning capital to shareholders, Centerra Gold is well-positioned to continue delivering sustainable value. Investors can expect the company to execute its growth strategies effectively, ensuring that it remains a key player in the gold and copper production sectors. As the company navigates the evolving market landscape, its focus on operational excellence and strategic investments will be crucial in achieving long-term success.