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Introduction & Market Context
Centerra Gold Inc . (TSX:CG) (NYSE:CGAU) presented its first quarter 2025 results on May 6, showcasing solid operational performance across its mining portfolio while advancing several strategic growth initiatives. The gold and copper producer maintained its 2025 production guidance while reporting positive cash flow from its key operations and a robust balance sheet.
The company’s shares closed at $8.93 on May 5, 2025, representing a 1.25% increase, as investors anticipated the quarterly results. With gold prices remaining elevated, Centerra has capitalized on favorable market conditions while continuing to invest in future growth opportunities.
Quarterly Performance Highlights
Centerra reported gold production of 59,379 ounces and 11.6 million pounds of copper during the first quarter of 2025. The company achieved earnings per share of $0.15 and adjusted earnings per share of $0.13, supported by an average realized gold price of $2,554 per ounce.
As shown in the following quarterly summary slide, the company maintained its 2025 production guidance while returning $15 million to shareholders through buybacks, representing a 25% increase from the previous quarter:
The Mount Milligan operation in British Columbia contributed 35,880 ounces of gold and 11.6 million pounds of copper during Q1, with gold production costs of $1,384 per ounce and all-in sustaining costs (AISC) on a by-product basis of $1,168 per ounce. The company expects Mount Milligan to produce between 165,000-185,000 ounces of gold and 50-60 million pounds of copper in 2025.
The following slide details Mount Milligan’s operational metrics, including mining and processing data:
Meanwhile, the Öksüt Mine in Turkey produced 23,499 ounces of gold in Q1, with production costs of $1,102 per ounce and AISC of $1,563 per ounce. Management noted that Öksüt’s 2025 production guidance of 105,000-125,000 ounces is weighted toward the second half of the year.
The detailed operational metrics for the Öksüt Mine are presented in this slide:
Strategic Growth Initiatives
Centerra is advancing several growth initiatives, with particular focus on the Kemess project in British Columbia. The company increased its 2025 exploration guidance at Kemess to between $10-12 million, up from the previous $4-6 million, and plans to complete 28,500 meters of drilling.
The company provided this cross-section of the Kemess mineralization, highlighting the various zones targeted for exploration:
Centerra also announced plans to complete a Preliminary Economic Assessment (PEA) on the Kemess project by the end of 2025. The PEA will evaluate a combined open pit and underground operation with a potential 15-year mine life and target average annual production of approximately 250,000 gold equivalent ounces.
The Thompson Creek molybdenum mine restart is progressing as planned, with $26 million in non-sustaining capital expenditures during Q1 2025. This brings the total investment since the restart decision in September 2024 to $55 million, representing 14% of the total capital investment. The project remains in line with the initial capital estimate of $397 million, with 2025 non-sustaining capital guidance of $130-145 million.
Financial Position and Shareholder Returns
Centerra reported net earnings of $30.5 million and adjusted net earnings of $26.4 million for Q1 2025. The company sold 61,132 ounces of gold at an average realized price of $2,554 per ounce and 12,141 pounds of copper at an average price of $3.80 per pound.
The following slide provides a comprehensive overview of the company’s financial results:
Centerra maintained a strong balance sheet with cash and cash equivalents of $608 million as of March 31, 2025, and total liquidity of $1 billion. Both the Mount Milligan and Öksüt operations generated positive cash flow during the quarter.
The company’s cash generation and liquidity position are illustrated in this financial highlights slide:
The Board of Directors approved up to $75 million in share buybacks for 2025, underscoring Centerra’s commitment to returning capital to shareholders. The company repurchased $15 million in shares during Q1, representing a 25% increase from the previous quarter.
Outlook and Guidance
Centerra maintained its 2025 production guidance, with Mount Milligan expected to produce 165,000-185,000 ounces of gold and 50-60 million pounds of copper, while Öksüt is projected to contribute 105,000-125,000 ounces of gold. The company anticipates completing a pre-feasibility study for Mount Milligan in Q3 2025.
On the sustainability front, Centerra submitted an amended application for operating permits at Mount Milligan in March 2025 and continues to advance its commitment to responsible mining practices. The company’s 2024 Sustainability Report is currently in development.
With a strong cash position, positive operational performance, and strategic growth initiatives underway, Centerra appears well-positioned to deliver on its 2025 objectives while continuing to evaluate additional opportunities for expansion and shareholder returns.
Full presentation:
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