Centerra Gold Inc. (TSX: CG) (NYSE: CGAU) reported its first quarter 2025 operating and financial results.

President and CEO, Paul Tomory, commented, “In the first quarter, we generated positive free cash flow at both operations. Our 2025 production guidance is unchanged, and we expect strong production in the second half of 2025 driven by increasing grades. The restart of Thompson Creek is advancing, with approximately 14% of the total capital investment complete. We maintained a strong cash position of $608 million, ensuring financial flexibility to advance ongoing and prospective project activities. With a focus on returning capital to shareholders, we increased our share repurchases to $14.9 million in the first quarter, and the Board of Directors has approved the repurchase of up to $75 million of Centerra’s common shares in 2025.”

Paul Tomory continued, “We are pleased to be moving forward with a Preliminary Economic Assessment on the Kemess project, which is expected to be completed by the end of 2025. The updated mineral resource published today demonstrates the robust mineralization in the highly prospective Toodoggone district in the northern interior of British Columbia. We have doubled our 2025 exploration guidance at Kemess to between $10 and $12 million, which is expected to focus on infill drilling for the open pit and underground targets and also to test high grade mineralization in the deeper Kemess Offset zone. With Kemess, we are advancing the studies for a potential combined open pit and longhole open stoping underground gold-copper mine with a possible 15-year operation in a top tier mining jurisdiction. We are targeting a project with a potential average annual production of approximately 250,000 gold equivalent ounces, which along with Mount Milligan, would give Centerra two long-life gold-copper assets in British Columbia. The existing infrastructure already in place, is expected to lower the execution risk compared to typical greenfield projects of this scale.”

First Quarter 2025 Highlights

Operations

• Production: In the first quarter 2025, consolidated gold production was 59,379 ounces, including 35,880 ounces from the Mount Milligan Mine and 23,499 ounces from the Öksüt Mine. Copper production in the quarter was 11.6 million pounds.
• Sales: First quarter 2025 gold sales were 61,132 ounces at an average realized gold price^NG of $2,554 per ounce and copper sales were 12.1 million pounds at an average realized copper price^NG of $3.80 per pound. The average realized gold and copper prices include the impact of the Mount Milligan streaming agreement with RGLD Gold AG and Royal Gold, Inc.
• Costs: First quarter 2025 consolidated gold production costs were $1,271 per ounce and all-in sustaining costs (“AISC”) on a by-product basis^NG were $1,491 per ounce.
• Capital expenditures^NG: First quarter 2025 additions to property, plant, and equipment and capital expenditures^NG were $68.1 million and $46.9 million, respectively. Sustaining capital expenditures^NG in the first quarter 2025 were $18.0 million and included construction at the tailings storage facility at Mount Milligan, as well as capitalized stripping and expansions at the heap leach pad at Öksüt. Non-sustaining capital expenditures^NG in the first quarter were $25.8 million related mainly to the restart of operations at the Thompson Creek Mine.

Financial

• Net earnings: First quarter 2025 net earnings were $30.5 million, or $0.15 per share, and adjusted net earnings^NG were $26.4 million or $0.13 per share. Key adjustments to net earnings include $6.6 million of an incremental gain on the sale of the Greenstone Partnership, $4.8 million of reclamation provision revaluation expense, and $3.3 million of unrealized gain on foreign exchange at Öksüt. For additional adjustments refer to the “Non-GAAP and Other Financial Measures” disclosure at the end of this news release.
• Cash provided by operating activities and free cash flow^NG: In the first quarter 2025, cash provided by operating activities was $58.6 million and free cash flow^NG was $10.0 million. This includes $39.4 million of cash provided by mine operations and $27.4 million of free cash flow^NG at Mount Milligan and $50.3 million of cash provided by mine operations and $41.6 million of free cash flow^NG at Öksüt. This was partially offset by capital expenditures^NG at Thompson Creek.
• Cash and cash equivalents: Total liquidity of $1.0 billion as at March 31, 2025, comprising a cash balance of $608.2 million and $400.0 million under a corporate credit facility.
• Dividend: Quarterly dividend declared of C$0.07 per common share.
• Share buybacks: Under Centerra’s normal course issuer bid (“NCIB”) program, the Company repurchased 2,465,926 common shares (“Shares”) in the first quarter 2025, for the total consideration of $14.9 million. The Company’s Board of Directors has approved the repurchase of up to $75 million of Centerra’s Shares in 2025. Centerra believes that the NCIB will continue to provide the Company with a flexible tool to deploy cash pursuant to its capital allocation strategy, while preserving the financial flexibility to support investment in future growth.
• Tariff impact: The recent implementation of US tariffs had no impact on Centerra’s operations in the first quarter of 2025. While the Company continues to monitor the situation closely, no significant impact is expected on the mining operations at Mount Milligan and Öksüt, and restart activities at Thompson Creek moving forward. The Company is also assessing the potential impact of tariffs on the Langeloth Metallurgical Facility (“Langeloth”), however, Centerra does not currently anticipate any material impact at the Centerra level.

Growth Initiatives

• Updated mineral resource at Kemess and advancing project studies: In 2024, Centerra completed over 11,400 meters of core drilling for exploration, geotechnical, and metallurgical testing purposes. Those results have been included in the updated mineral resource as of April 15, 2025. Gold mineral resources at Kemess are estimated to contain 2.7 million ounces of indicated resources and 2.2 million ounces of inferred resources. Copper mineral resources are estimated to contain 971 million pounds of indicated resources and 821 million pounds of inferred resources. The updated resource is generally consistent with the Company’s previous understanding of the resource estimate. Centerra has increased 2025 exploration guidance at Kemess to between $10 and $12 million, up from $4 to $6 million previously, with a total of 28,500 meters of drilling planned. The focus is expected to be on infill drilling for the open pit and underground targets and also to test high grade mineralization in the deep Kemess Offset zone. The Company is moving forward with a Preliminary Economic Assessment on Kemess, using an open pit and longhole open stoping underground mining concept, which is expected to be completed by the end of 2025. Kemess has significant infrastructure already in place, including: a 380 kilometer, 230 kilovolt power line; a 50,000 tonne per day nameplate processing plant in need of some refurbishment; “mothballed” site infrastructure including a water treatment plant, camp, administration facilities, air strip, truck shop and warehouse which will require some refurbishment; and tailings storage using the previously mined pit as well as an existing tailings facility, which is capable of expansion. Complementing this existing infrastructure, it is anticipated that new crushing, conveying, and mine infrastructure will be required for the open pit and underground operations. The Company expects the existing infrastructure to lower the execution risk for the project when compared with a typical greenfield project of this scale. With the Kemess project, the Company is advancing the studies for a potential gold-copper mine with a possible 15-year operation in a top tier mining jurisdiction. The Company is targeting a project with a potential average annual production of approximately 250,000 gold equivalent ounces, which along with Mount Milligan, would give Centerra two long-life gold-copper assets in British Columbia. For additional details on Kemess, refer to the news release published on May 6, 2025 entitled “Centerra Gold Announces Updated Mineral Resources at Kemess; Advancing Studies on the Project”.

Overview of Consolidated Financial and Operating Highlights

• Non-GAAP financial measure. See discussion under “Non-GAAP and Other Financial Measures”.
  ⁽²⁾ As at March 31, 2025, the Company had 207,944,128 common shares issued and outstanding.
  ⁽³⁾ This supplementary financial measure within the meaning of National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure (“NI 51-112”) is calculated as a ratio of revenue from the consolidated financial statements and units of metal sold and includes the impact from the Mount Milligan Streaming Agreement (defined below), copper hedges and mark-to-market adjustments on metal sold not yet finally settled. Under the Mount Milligan Streaming Agreement, the Company purchases refined gold and copper warrants and arranges for their delivery to Royal Gold and Royal Gold is entitled to 35% of gold ounces sold and 18.75% of copper pounds sold. Royal Gold paid $435 per ounce of gold delivered and 15% of the spot price per tonne of copper delivered in the periods presented.
  ⁽⁴⁾ All per unit costs metrics are expressed on a metal sold basis.

2025 Guidance – Gold and copper producing assets

⁽¹⁾Consolidated Centerra figures.
⁽²⁾ The Mount Milligan Mine is subject to an arrangement with RGLD Gold AG and Royal Gold Inc. which entitles Royal Gold to purchase 35% and 18.75% of gold and copper produced, respectively, and requires Royal Gold to pay $435 per ounce of gold and 15% of the spot price per metric tonne of copper delivered. Using assumed market prices of $2,700 per ounce of gold and $4.00 per pound of copper for the remaining three quarters of 2025, the Mount Milligan Mine’s average realized gold and copper price for that period would be $1,902 per ounce and $3.36 per pound, respectively, compared to average realized prices of $2,554 per ounce and $3.80 per pound in the three month ended March 31, 2025, when factoring in the Mount Milligan Streaming Agreement and concentrate refining and treatment costs.
⁽³⁾ Gold and copper production for 2025 at the Mount Milligan Mine assumes estimated recoveries of 64% to 66% for gold and 77% to 79% for copper, consistent with the previous guidance, and compared to the actual recoveries for gold of 62.1% and for copper of 77.6% achieved in the three months ended March 31, 2025.
⁽⁴⁾ Unit costs include a credit for forecasted copper sales treated as by-product for all-in sustaining costs^NG. Production for copper and gold reflects estimated metallurgical losses resulting from handling of the concentrate and metal deductions levied by smelters.
⁽⁵⁾ Units noted as ($/oz) relate to gold ounces.
⁽⁶⁾ Corporate and administration costs do not include stock-based compensation and corporate depreciation.

2025 Guidance – Molybdenum Business Unit

• 2025 guidance figure does not include any toll material roasted.

2025 Guidance – Global Exploration and Evaluation Projects

Mount Milligan

Mount Milligan produced 35,880 ounces of gold and 11.6 million pounds of copper in the first quarter of 2025, which was lower than planned primarily due to lower gold grades encountered in areas of phases 6 and 9 that are at the periphery of the ore body. During the first quarter of 2025, a total of 11.1 million tonnes was mined from phases 5, 6, 7, 9 and 10 of the open pit. Process plant throughput for the first quarter of 2025 was 4.7 million tonnes, averaging 52,575 tonnes per day, which included a one-week long planned maintenance shutdown. The site-wide optimization program at Mount Milligan continues to progress. The Company has seen improvements in the mine with higher truck availability and increased operating hours. Gold sales were 36,627 ounces and copper sales were 12.1 million pounds in the first quarter. The Company maintains 2025 production guidance at Mount Milligan of 165,000 to 185,000 ounces of gold and 50 to 60 million pounds of copper. Both gold and copper production and sales are expected to be weighted towards the second half of the year.

Gold production costs in the first quarter 2025 were $1,384 per ounce. AISC on a by-product basis^NG was $1,168 per ounce, 5% higher than last quarter due to slightly increased sustaining capital expenditures and lower ounces sold during the quarter. 2025 Mount Milligan gold production costs and AISC on a by-product basis^NG guidance are unchanged.

In the first quarter 2025, sustaining capital expenditures^NG at Mount Milligan were $9.2 million, focused on the tailings storage facility dam construction.

In the first quarter of 2025, Mount Milligan generated $39.4 million of cash flow from mine operations and free cash flow^NG of $27.4 million.

At Mount Milligan, work on a Pre-feasibility Study to evaluate the substantial mineral resources to unlock additional value beyond its current mine life is on track to be completed in the third quarter of 2025. The Company is optimistic that the mine life can be extended beyond the current mine life of approximately 2036, which is based on the available space in the existing TSF. Centerra is evaluating options for additional tailings capacity. It is also expected that the PFS will incorporate an increase of annual mill throughput in the range of 10% through ball mill motor upgrades and additional downstream flowsheet improvements at a modest overall capital expenditure, which may also provide the benefit of improved overall metal recovery.

Öksüt

Öksüt produced 23,499 ounces of gold in the first quarter of 2025. Production in the quarter was lower than planned due to lower grades resulting from mine sequencing and impacts from unfavourable weather conditions. The Company expects to access higher grade areas of the mine in the second half of 2025. During the quarter, mining activities were focused on phase 5 and phase 6 of the Keltepe pit and in phase 2 of the Güneytepe pit. A total of 3.1 million tonnes of ore and waste were mined in the quarter and 1.0 million tonnes were stacked at an average grade of 0.73 g/t. Öksüt’s 2025 production guidance is maintained at 105,000 to 125,000 ounces and is expected to be weighted towards the second half of the year.

At Öksüt, gold production costs and AISC on a by-product basis^NG for the first quarter 2025 were $1,102 per ounce and $1,563 per ounce, respectively. These costs were higher compared to last quarter primarily due to lower gold production and sales and a higher royalty expense per ounce due to elevated gold prices. 2025 Öksüt gold production costs and AISC on a by-product basis^NG guidance are unchanged. However, AISC on a by-product basis^NG guidance could be impacted if gold prices remain at current elevated levels, due to resulting higher royalty expense.

In the first quarter 2025, sustaining capital expenditures at Öksüt were $8.7 million, focused on capitalized stripping, heap leach pad expansion, and waste rock dump expansion and Öksüt delivered cash flow from mine operations of $50.3 million and free cash flow^NG of $41.6 million.

In the second quarter of 2025, approximately $45 to $50 million of current income tax is expected to be paid at Öksüt. Additionally, the annual Turkish government royalty payment will be made in the second quarter 2025. This payment is expected to be approximately $40 million. Together, these cash payments will require a cash outflow in the second quarter 2025 of approximately $85 to $90 million, subject to steady exchange rates.

Molybdenum Business Unit

In the first quarter of 2025, MBU used $6.0 million of cash for operations and had a free cash flow deficit^NG of $33.9 million, which was primarily due to increased capital spending related to the restart of Thompson Creek.

Thompson Creek Mine

The restart of Thompson Creek is advancing, with approximately 14% of the total capital investment complete. Centerra maintains a robust cash position of $608.2 million, ensuring sufficient liquidity to finance ongoing project activities.

As expected during the ramp-up phase, tons moved in the first quarter 2025 were lower than planned, however, overall progress remains on track with first production expected in the second half of 2027.

In the first quarter of 2025, non-sustaining capital expenditures^NG were $25.8 million. Since the restart decision, non-sustaining capital expenditures^NG were $55.4 million. The 2025 guidance for additions to PP&E, all of which are non-sustaining capital^NG is unchanged at $130 to $145 million. The project remains in line with the total initial capital expenditures^NG estimate of $397 million as outlined in the feasibility study.

Langeloth

In the first quarter of 2025, Langeloth roasted and sold 3.0 million pounds and 4.2 million pounds of molybdenum, respectively, and generated a loss from operations of $1.0 million and a positive EBITDA^NG of $0.1 million.

In the first quarter of 2025, cash flow used in operations was $2.3 million, primarily due to a build up of working capital from the timing of cash collection on shipments, partially offset by positive EBITDA^NG.

About Centerra

Centerra Gold Inc. is a Canadian-based mining company focused on operating, developing, exploring and acquiring gold and copper properties in North America, Türkiye, and other markets worldwide. Centerra operates two mines: the Mount Milligan Mine in British Columbia, Canada, and the Öksüt Mine in Türkiye. The Company also owns the Kemess Project in British Columbia, Canada, the Goldfield Project in Nevada, United States, and owns and operates the Molybdenum Business Unit in the United States and Canada.