Centerra Gold (NYSE:CGAU) executives told investors the company finished 2025 with “strong operational performance” at both Mount Milligan and the Öksüt mine, delivering consolidated production of more than 275,000 ounces of gold and 50 million pounds of copper. President and CEO Paul Tomory said the company surpassed the midpoint of its gold production guidance range and ended the year with $529 million in cash, supporting continued investment in its growth pipeline while returning what management described as record capital to shareholders.
2025 production, costs, and capital returns
Tomory said consolidated all-in sustaining costs (AISC) on a byproduct basis were $1,614 per ounce for 2025, which he said outperformed the low end of guidance. The company returned $135 million to shareholders during the year, including $94 million in share buybacks and $41 million in dividends. CFO Ryan Snyder added that the buybacks equated to about 5% of shares outstanding.
Fourth-quarter sales totaled more than 68,000 ounces of gold and 12.5 million pounds of copper. The average realized prices were $3,415 per ounce of gold and $4.69 per pound of copper, which Snyder said reflected existing streaming arrangements at Mount Milligan. The company also sold about 3.6 million pounds of molybdenum in the quarter at an average realized price of $23.78 per pound through its Langeloth facility.
Mine-level operational performance
COO David Hendriks said Mount Milligan produced more than 44,000 ounces of gold and 13 million pounds of copper in the fourth quarter. For full-year 2025, Mount Milligan produced more than 147,000 ounces of gold and 50 million pounds of copper, which Hendriks said aligned with the recently published pre-feasibility study (PFS) mine plan.
At Mount Milligan, fourth-quarter AISC on a byproduct basis was $913 per ounce, which Hendriks said was 38% lower quarter-over-quarter due to higher ounces produced and sold. Full-year AISC was $1,194 per ounce, which he said was below the guidance range. For 2026, Centerra expects Mount Milligan AISC on a byproduct basis of $1,200 to $1,300 per ounce.
At Öksüt, fourth-quarter production exceeded 26,500 ounces of gold. Hendriks said heap leach tons stacked were lower during the quarter due to planned mine sequencing, with mining focused on waste stripping in the Keltepe pit to open new ore zones in line with the 2026 plan. Öksüt produced more than 127,700 ounces of gold in 2025, above the top end of guidance. Fourth-quarter AISC at Öksüt was $1,748 per ounce, which Hendriks attributed to lower gold ounces sold, higher sustaining capital expenditures, and higher royalty expense due to elevated gold prices. Full-year 2025 AISC at Öksüt was $1,613 per ounce, which he said outperformed guidance.
Growth projects: Kemess, Thompson Creek, Goldfield, and Mount Milligan permits
Management emphasized a “self-funded” growth strategy. Tomory highlighted the Mount Milligan PFS, which extends mine life by 10 years to 2045, and said the company commenced development of the Goldfield project in Nevada.
On Kemess in British Columbia, Tomory reviewed results from a preliminary economic assessment (PEA) released in January, alongside an updated mineral resource. He said the PEA outlines a restart plan leveraging existing infrastructure and based on a conventional open pit with long-haul open stoping underground mining. The study supports an initial 15-year mine life with average annual production of 171,000 ounces of gold and 61 million pounds of copper at an AISC on a byproduct basis of $971 per ounce.
Tomory said Kemess shows an after-tax net present value (NPV) of $1.1 billion and an internal rate of return (IRR) of 16% using long-term prices of $3,000 per ounce gold and $4.50 per pound copper. He added the NPV increases to $2.8 billion at $4,500 gold and $6 copper.
He also detailed the updated Kemess resource, which includes:
- Indicated: 3.3 million ounces of gold and 1.1 billion pounds of copper
- Inferred: 3.6 million ounces of gold and 1.2 billion pounds of copper
Tomory said the PEA only evaluates the Kemess Main and Kemess Underground areas, representing about 47% of total indicated and inferred resource tons, leaving potential for additional material to be incorporated in future studies. He said the company is advancing technical work toward a pre-feasibility study expected in 2027.
Kemess capital is structured in phases, Tomory said, with about $770 million in initial non-sustaining capital for first production from the open pit, plus an additional $277 million in expansionary non-sustaining capital over the following two years to start underground operations. The expansion plan includes a leach plant expected to improve gold recovery by about 14% and provide optionality to process ore from potential satellite deposits.
For the Thompson Creek restart in Idaho, Hendriks said about 27% of infrastructure refurbishment is complete. Non-sustaining capital expenditures were $51 million in the fourth quarter and $134 million for 2025, in line with guidance. Since the restart decision in September 2024, total capital expenditures have reached $164 million. Management increased the project’s total capital estimate by about 5% to 10% to a range of $425 million to $450 million, from $397 million in the 2024 feasibility study baseline, citing modest inflation, additional maintenance needs for certain mining equipment, and mine plan refinements. The company also pulled forward select activities, including a tailings dam toe buttress, to de-risk execution. Thompson Creek remains on track for production in mid-2027.
In sustainability and permitting, Tomory said Centerra received all required permits in January to continue Mount Milligan operations through 2035. The approvals include a 10% increase in plant throughput beginning in 2028 and expanded stockpile capacity.
2026 outlook and Langeloth update
Centerra’s 2026 consolidated guidance calls for gold production of 250,000 to 280,000 ounces and copper production of 50 million to 60 million pounds. Consolidated AISC is expected to be $1,650 to $1,750 per ounce. Mount Milligan gold production is expected to be 140,000 to 155,000 ounces, while Öksüt is expected to produce 110,000 to 125,000 ounces.
Öksüt costs are expected to rise year-over-year, with 2026 AISC projected at $1,850 to $1,950 per ounce. Hendriks said the increase is primarily driven by higher royalty rates tied to elevated gold prices and inflation in Türkiye that is not fully offset by lira devaluation. He said the royalty is expected to account for about $650 to $750 per ounce of costs in 2026. Hendriks also said Centerra is progressing a life-of-mine optimization study at Öksüt, including potential residual heap leaching and inclusion of low-grade oxide mineralization, with completion targeted by the end of 2026.
Snyder said sustaining capital expenditures in 2026 are expected to be $85 million to $105 million, with non-sustaining capital of $260 million to $350 million across the growth pipeline. That includes $190 million to $220 million for Thompson Creek, $30 million to $40 million for Goldfield, and $35 million to $45 million at Mount Milligan for haul truck additions and tailings facility buttress foundation construction. Exploration spending is expected to be $40 million to $50 million.
Management also addressed the temporary suspension of operations at the Langeloth metallurgical facility near Pittsburgh following a Jan. 29 explosion. Hendriks said there were no fatalities, serious injuries, or significant environmental releases, and the impact was contained near the acid plant area. Repairs are expected to cost $5 million to $10 million, with full operations expected to resume by May 2026. Snyder said working capital is expected to increase in the first quarter of 2026 as inventories build during the shutdown, and guidance for Langeloth will be provided later.
In response to questions, Snyder said the company expects to continue purchasing molybdenum concentrate during the shutdown period, resulting in inventory build, while management evaluates options with suppliers and customers. Separately, Tomory said the company’s current strategy for the Endako mill is to bring it online after Thompson Creek is mined out—“10 years” under the current plan—though he added Centerra would consider selling the mill “at the right price.”
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.
