Centerra Gold: Strong Cash Flow, $625 Million in Cash and Cash Equivalents, and 2025 Outlook

Centerra Gold Inc. (TSX: CG and NYSE: CGAU) reported its fourth quarter and full year 2024 results, along with its 2025 outlook, on February 20, 2025. The company's strong cash flow from operating activities and significant cash and cash equivalents position have positioned it well for future growth and investment opportunities. Here's a summary of the key takeaways from the report:

Fourth Quarter and Full Year 2024 Highlights

* Consolidated gold production of 73,224 ounces in the fourth quarter, including 37,660 ounces from the Mount Milligan Mine and 35,564 ounces from the Öksüt Mine.
* 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.
* Fourth quarter 2024 gold sales were 83,876 ounces at an average realized gold price NG of $2,207 per ounce, and copper sales were 16.4 million pounds at an average realized copper price NG of $2.88 per pound.
* Full year 2024 gold sales were 368,183 ounces at an average realized gold price NG of $2,078 per ounce, and copper sales were 57.9 million pounds at an average realized copper price NG of $3.25 per pound.
* Fourth quarter 2024 consolidated gold production costs were $1,096 per ounce, and all-in sustaining costs ("AISC") on a by-product basis NG were $1,296 per ounce.
* Full year 2024 consolidated gold production costs were $913 per ounce, and AISC on a by-product basis NG were $1,148 per ounce, in line with the 2024 guidance ranges.
* Capital expenditures NG in the fourth quarter 2024 were $41.9 million, and sustaining capital expenditures NG were $19.5 million.

2025 Outlook

* The company expects to produce between 370,000 and 410,000 ounces of gold in 2025, with Öksüt returning to normal production levels after processing excess inventory in 2024.
* Copper production is expected to be between 55 and 65 million pounds in 2025.
* Centerra forecasts continued strong free cash flow generation at its operations in 2025, allowing it to fund the restart of Thompson Creek and continue to return capital to shareholders while preserving cash for strategic opportunities.
* The company is focused on upcoming catalysts in 2025 at Mount Milligan and Kemess, which are the foundations for its future growth.

Centerra Gold's strong cash flow from operating activities and significant cash and cash equivalents position have set the stage for a promising 2025. The company's focus on consistent, inflation-protected income and disciplined capital allocation has positioned it well to capitalize on growth opportunities and return value to shareholders. As an investor, keeping an eye on Centerra Gold's progress and potential catalysts in 2025 can be an attractive strategy for generating long-term returns.