Centerra Gold (NYSE:CGAU) outlined a self-funded growth strategy centered on its operating mines, development projects and U.S. molybdenum business during the Midwest IDEAS Conference, with management emphasizing its cash position, planned capital spending sequence and potential mine-life extensions.
Lisa Wilkinson, Centerra’s vice president of investor relations, said the Toronto-based miner produces gold, copper and molybdenum through operations in Canada, the United States and Turkey. Its producing assets include the Mount Milligan gold-copper mine in British Columbia and the Öksüt gold mine in Turkey.
Balance Sheet and Shareholder Returns
Wilkinson said Centerra had C$451 million in cash at the end of June and more than C$1 billion in liquidity, including an undrawn C$600 million credit facility. The company has no debt, she said.
Centerra plans to repurchase C$200 million of shares during the year and has paid a quarterly dividend for the past six-and-a-half years. Wilkinson said the company’s dividend yield was approximately 1% to 1.5%.
Management argued that the shares trade at a discount to peers. Wilkinson said Centerra was trading at roughly 0.5 times net asset value, compared with an average of 0.7 times for peers. She also cited the company’s 21.4 million gold-equivalent ounces of resources, 98% of which are located in Canada and the U.S.
Mount Milligan Execution and Öksüt Extension Study
Centerra’s September 2025 pre-feasibility study for Mount Milligan included a second tailings dam and extended the mine life by 10 years to 2045. The plan also calls for a roughly 10% mill-throughput increase in 2028 and an anticipated recovery improvement of about 1%.
Wilkinson said Mount Milligan had generated more than C$245 million of free cash flow since the study was released. Addressing prior operating challenges, she said the mine’s complex geology requires improved visibility into grades and ore blending. Grade-control drilling is now providing a six- to 18-month outlook, enabling the company to create stockpiles and optimize mill feed.
She added that past water shortages associated with drought conditions in northern British Columbia have been mitigated through additional water sources.
At Öksüt, which is currently expected to operate through 2029, Centerra is studying a potential one- to two-year mine-life extension using lower-grade oxidized material at the bottom of the pit. The company also sees potential for residual leaching from existing pads. Wilkinson said an optimized mine plan is expected with year-end disclosures in February 2027.
Öksüt has generated C$780 million in free cash flow since June 2023, according to Wilkinson. She said the mine’s cash generation has helped fund development work at Thompson Creek and that Centerra’s strategy is to operate Öksüt through the end of its mine life rather than sell the asset.
Development Pipeline
- Thompson Creek: Centerra began a three-year restart program in 2024 and expects first molybdenum production in mid-2027. Wilkinson said the project remains on schedule and budget, with capital stripping and mill refurbishment among the main work items. Langeloth is being ramped up ahead of Thompson Creek’s restart.
- Goldfield: The Nevada open-pit heap-leach gold project is expected to begin production in late 2028. The project is projected to have a seven-year mine life, four peak-production years of about 100,000 ounces annually, and initial capital expenditures of C$252 million. Centerra said about C$233 million of capital remains to be spent.
- Kemess: The British Columbia gold-copper project has an initial 15-year mine life in its preliminary economic assessment, with projected annual production of about 171,000 ounces of gold and 61 million pounds of copper. Its pre-feasibility study is expected by mid-2027, while potential construction decisions are anticipated in 2028 and first production in late 2031.
Wilkinson said the projects’ timelines are designed to stagger capital requirements: Thompson Creek first, followed by Goldfield spending in 2027 and 2028, and then Kemess. Centerra believes existing liquidity and operating cash flow can fund this pipeline without dilutive equity financing, restrictive debt or streaming arrangements.
For planning purposes, Wilkinson said the Mount Milligan pre-feasibility study used a gold price of $2,500 per ounce, with sensitivities extending to $4,500 per ounce. Company guidance is based on a gold price of approximately $3,750 per ounce, she said.
Centerra also expects to spend C$40 million to C$50 million on exploration during the year, split roughly evenly between brownfield work near existing assets and greenfield or generative programs in Canada, the U.S. and Turkey. The company has made strategic equity investments in junior mining companies including Thesis Gold and Silver and Liberty Gold.
About Centerra Gold (NYSE:CGAU)
Centerra Gold Inc is a gold mining company incorporated in Canada and headquartered in Toronto. The company specializes in the exploration, development and operation of precious metals properties, with a focus on gold production. Centerra’s portfolio includes the Mount Milligan mine in British Columbia, Canada, and the Otjikoto mine in Namibia. Both operations produce gold and copper concentrates and employ modern mining methods and processing facilities to optimize recovery rates and minimize environmental impact.
In addition to its producing assets, Centerra is advancing the development of its Greenstone Gold Project in Ontario, Canada, which, upon completion, is expected to become one of Canada’s largest gold mines.
