Centerra Gold's Q1 2025: Unpacking Contradictions in Mining Strategy and Infrastructure Plans

Generated by AI AgentEarnings Decrypt
Wednesday, May 7, 2025 2:43 am ET1min read
Kemess mining method and infrastructure utilization, molybdenum business strategy, operational flexibility and grade control drilling at Mount Milligan, Kemess project development and infrastructure are the key contradictions discussed in Gold's latest 2025Q1 earnings call.



Gold and Copper Production:
- generated positive free cash flow at both operations, with gold and copper production in Q1 being approximately 60,000 ounces and 12 million pounds, respectively.
- The production increase is expected in the second half of the year driven by increasing grades at Öksüt and Mount Milligan.
- The company maintains its 2025 production guidance and anticipates a strong second half.

Capital Allocation and Shareholder Returns:
- Centerra's Board approved the repurchase of up to $75 million of Centerra's shares in 2025.
- The company remains active in share buybacks, repurchasing 2.5 million shares in Q1 2025 for a total consideration of $15 million.
- This strategic move aligns with their capital allocation strategy to deploy cash effectively while retaining financial flexibility.

Infrastructure and Exploration Investments:
- Centerra published an updated resource at Kemess, demonstrating significant mineralization in the Toodoggone District of Northern BC.
- The updated resource estimates gold mineral resources to contain 2.7 million ounces of indicated and 2.2 million ounces of inferred, with copper mineral resources at 971 million pounds of indicated and 821 million pounds of inferred.
- The company doubled its 2025 exploration guidance at Kemess to between $10 million and $12 million, planning for 28,500 meters of drilling.

Sustainability and Permitting Initiatives:
- Centerra continues to advance its commitment to responsible mining and transparent reporting by progressing on its sustainability report.
- The company submitted an amended application for operating permits at Mount Milligan, which is expected to result in a streamlined permitting process as it is considered a critical mineral project.
- This focus on sustainability and responsible mining is part of the company's strategy to create long-term value for stakeholders.

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