Saturday, September 26, 2026
MiningNewsTerminal
Saturday, September 26, 2026 Admin

CG.TO ·

Centerra Gold Records 2020 Net Earnings of $408.5 million or $1.39 per Common Share, Adjusted Net EarningsNG of $461.9 million or $1.57 per Common Share, Cash from Operations of $930.0 million and Free Cash FlowNG of $603.8 million

Financials

centerragold.com 1

NEWS RELEASE

Centerra Gold Records 2020 Net Earnings of $408.5 million or $1.39 per Common Share,

Adjusted Net EarningsNG of $461.9 million or $1.57 per Common Share,

Cash from Operations of $930.0 million and Free Cash FlowNG of $603.8 million

All figures are in United States dollars and all production figures are on a 100% basis unless otherwise

stated. This news release contains forward looking information regarding Centerra Gold’s business and

operations. See “Caution Regarding Forward-Looking Information”. All references in this document

denoted with NG, indicate a non-GAAP term which is discussed under “Non-GAAP Measures” and

reconciled to the most directly comparable GAAP measure.

Toronto, Canada, February 24, 2021: Centerra Gold Inc. (“Centerra” or the “Company”) (TSX: CG)

today reported its fourth quarter 2020 results. Key events and operating results of the fourth quarter and

year ended December 31, 2020 included:

• Net earnings and adjusted net earningsNG for the quarter of $95.2 million, $0.32 per common

share (basic), and $104.5 million, $0.35 per common share (basic), respectively. Net earnings and

adjusted net earningsNG for the year of $408.5 million, $1.39 per common share (basic) and $461.9

million, $1.57 per common share (basic), respectively.

• Cash flow from operations and free cash flowNG for the quarter of $182.0 million and $76.8

million, respectively. Cash flow from operations and free cash flowNG for the year of $930.0 million

and $603.8 million, respectively.

• Cash position of $545.2 million at year-end.

• Gold Production for the quarter of 172,446 ounces and gold production for the year of 824,059

ounces.

• Copper production for the quarter of 20.4 million pounds and copper production for the year of

82.8 million pounds.

• Gold production costs for the quarter and year were $474 per ounce and $419 per ounce,

respectively.

• Copper production costs for the quarter and year were $1.24 per pound and $1.18 per pound,

respectively.

• All-in sustaining costs on a by-product basisNG for the quarter and year were $974 per ounce and

$729 per ounce, respectively.

• All-in costs on a by-product basisNG for the quarter and year were $1,352 per ounce and $1,059

per ounce, respectively.

centerragold.com 2

• Kumtor mine mineral reserves increased by 107%(1) to 6.3 million contained ounces of gold(2)

as at July 1, 2020. A new Kumtor technical report details a new 11-year mine life; consistent annual

gold production averaging 590,000 ounces for five years commencing in 2022, and an average life

of mine all-in sustaining costs on a by-product basisNG of $828 per ounce and all-in costs on a by-

product basisNG of $1,044 per ounce.

• Mount Milligan achieved record throughput for the quarter and year, averaging 59,762 and

54,827 tonnes per calendar day, respectively.

• Greenstone property sale announced on December 15, 2020, subsequently closing on January 19,

2021 for final cash consideration received of $210 million and contingent consideration of

approximately $75 million(3).

• Quarterly Dividend declared of CAD$0.05 per common share.

(1) Reserve increase calculated by comparing the new 2021 Kumtor Technical Report effective as at July 1, 2020 compared to the December 31, 2019

reserve statement (less mine depletion from January 1, 2020 to June 30, 2020).

(2) 73.3 million tonnes at an average gold grade of 2.66 grams per tonne gold (g/t Au) using gold price of $1,350 per ounce.

(3) Assuming a gold price of $1,500 per ounce.

The Company also announced its full-year 2021 guidance and a three-year outlook. Highlights included:

2021 to 2023 Outlook Highlights

• Strong organic gold growth production profile:

• 2021: 740,000 to 820,000 ounces.

• 2022: 920,000 to 1,020,000 ounces.

• 2023: 930,000 to 1,030,000 ounces.

• Maintain robust copper production profile:

• 2021: 70 to 80 million pounds.

• 2022: 90 to 100 million pounds.

• 2023: 70 to 80 million pounds.

2021 Guidance Highlights

• Gold production guidance of 740,000 to 820,000 ounces.

• Copper production guidance of 70 to 80 million pounds.

• Gold production costs guidance of $475 to $525 per ounce.

• All-in sustaining costs on a by-product basisNG guidance of $850 to $900 per ounce is higher

than 2020 primarily due to Kumtor processing lower grade material from its stockpiles on surface.

• All-in costs on a by-product basisNG guidance of $1,175 to $1,230 per ounce.

• Total capital spending guidance of $430 to $480 million including capitalized stripping is higher

than 2020 due to increased spending at Kumtor and Mount Milligan.

• Total capitalized stripping guidance of $230 to $245 million including $220 to $230 million at

Kumtor primarily for mining cut-back 20 and $10 to $15 million at Öksüt.

• Cash provided by operations guidance of $750 to $800 million (assuming US$1,750 gold price).

• Free cash flowNG guidance of $350 to $400 million (assuming US$1,750 gold price).

• Exploration budget of $50 million with approximately 70% focused on brownfield exploration at

our three existing operations.

centerragold.com 3

Commentary

Scott Perry, President and Chief Executive Officer of Centerra stated, “During the fourth quarter, our Öksüt

operation continued to demonstrate very high safety performance, achieving the safety milestone of four

million consecutive hours without a lost time injury. Additionally, we continue to stay vigilant at all of our

operations with rigorous safety protocols to help prevent an outbreak and avoid the spread of the COVID-

19 virus.”

“In 2020, our three operating mines delivered solid performances, including Mount Milligan’s achievement

of its highest level of mill throughput and its highest level of concentrate production since the start of the

operations in 2014. The Company favourably exceeded its consolidated gold production and cost guidance,

delivering more than 824,000 ounces of gold at an all-in sustaining cost on a by-product basisNG of $729

per ounce sold, which was lower than the low-end of our all-in sustaining cost guidance. Kumtor had

another strong year where gold production was at the top end of guidance delivering 556,136 ounces of

gold at an all-in-sustaining cost on a by-product basisNG of $741 per ounce sold, which was lower than the

low-end of its all-in-sustaining cost guidance. In 2020, Mount Milligan exceeded the upper end of its gold

production guidance and achieved its copper production guidance, producing 161,855 ounces of gold and

82.8 million pounds of copper at an all-in-sustaining cost on a by-product basisNG of $541 per ounce sold,

which was lower than the low-end of its all-in-sustaining cost guidance. Our Öksüt mine, which only came

into commercial production May 31, 2020, favourably exceeded both its gold production and cost guidance,

achieving 106,068 ounces of gold production at an all-in-sustaining cost on a by-product basisNG of $494

per ounce, which was lower than the low-end of its all-in-sustaining cost guidance.”

“Financially, the Company generated $930.0 million of cash from operations for the year, Öksüt generated

$146.1 million, Mount Milligan generated $185.3 million and Kumtor generated $660.6 million. In 2020,

$603.8 million of free cash flowNG was generated Company-wide, including $437.9 million of free cash

flowNG from Kumtor, $150.2 million from Mount Milligan and $105.2 million from Öksüt. During the year,

the Company repaid its debt and ended the year with no debt and cash of $545.2 million. In January 2021,

we completed the sale of our 50% interest in the Greenstone Gold Mines Partnership and received a cash

payment of approximately $210 million (including adjustments) adding to our strong balance sheet.”

“Based on the Company’s financial position, recent strong operating results and cash flows, the Board

approved a quarterly dividend to CAD$0.05 per share on February 23, 2021.”

“Today, the updated Kumtor Mine Technical Report was filed showcasing an extended mine life for

Kumtor. The new Kumtor life -of-mine adds significantly to the open pit reserves and has extended

Kumtor’s mine life by 5 years. The new mine life is 11 years and milling operations are extended to 2031.

The new life of mine plan has consistent annual gold production averaging 590,000 ounces for 5 years

commencing in 2022 at an average life of mine all-in sustaining costs on a by-product basisNG of $828 per

ounce sold.”

“For 2021, we are estimating consolidated gold production to be in the range of 740,000 to 820,000 ounces

and 70 to 80 million pounds of copper production. Centerra’s consolidated all -in sustaining cost on a by-

product basisNG for 2021 is expected to be in the range of $850 to $900 per ounce. We also announced our

inaugural three-year outlook which reflects a growing gold production profile in 2022 and 2023. This

brings Centerra close to expected annual gold production of approximately one million ounces with a

centerragold.com 4

declining cost profile which is expected to generate significant diversified free cash flow NG from our

operations.”

COVID-19 Update

Centerra continues to prioritize the health, safety and well-being of its employees, contractors,

communities, and other stakeholders during the current outbreak of COVID-19 and to take steps to

minimize the effect of the pandemic on its business. The Company has established strict COVID-19

protocols at its mine sites to help prevent infection and reduce the potential transmission of COVID-19.

The company has also implemented travel restrictions and has temporarily closed various administration

offices including its head office in Toronto. In addition, operating mine sites continue to assess the

resiliency of their supply chains, increase mine site inventories of key materials and develop and implement

contingency plans to allow for continued operations.

COVID-19 has not materially affected Centerra’s operations as employee absences due to COVID-19 and

other illnesses have so far been successfully managed. The Company notes that the effects of COVID-19

on its business continue to change rapidly. The measures enacted to date reflect the Company’s best

assessment at this time but will remain flexible and be revised as necessary or advisable and/or as

recommended by the public health and governmental authorities.

To date, the Company has incurred incremental COVID-19 related costs of $3.0 million.

centerragold.com 5

About Centerra

Centerra Gold Inc. is a Canadian-based gold mining company focused on operating, developing, exploring

and acquiring gold properties in North America, Asia and other markets worldwide and is one of the largest

Western-based gold producer s in Central Asia. Centerra operates three mines, the Kumtor mine in the

Kyrgyz Republic, the Mount Milligan mine in British Columbia, Canada and the Öksüt mine in Turkey.

Centerra's shares trade on the Toronto Stock Exchange (TSX) under the symbol CG. The Company is based

in Toronto, Ontario, Canada.

Conference Call

Centerra invites you to join its 2020 fourth quarter conference call on Wednesday, February 24, 2021 at

9:00 AM Eastern Time. The call is open to all investors and the media. To join the call, please dial toll-free

in North America 1 (888) 754 -4430. International participants may access the call at +1 (416) 641 -6701.

Results summary slides are available on Centerra Gold’s website at www.centerragold.com. Alternatively,

an audio feed webcast will be broadcast live by Intrado and can be accessed live at Centerra Gold’s website

at www.centerragold.com. A recording of the call will be available on www.centerragold.com shortly after

the call and via telephone until midnight Eastern Time on March 3, 2021 by calling +1 (416) 626 -4100 or

1 (800) 558-5253 and using passcode 21989633.

For more information:

John W. Pearson

Vice President, Investor Relations

Centerra Gold Inc.

(416) 204-1953

[email protected]

Additional information on Centerra is available on the Company’s web site at

www.centerragold.com and at SEDAR at www.sedar.com.

centerragold.com 6

Management’s Discussion and Analysis

For the Period Ended December 31, 2020

This Management Discussion and Analysis (“MD&A”) has been prepared as of February 23, 2021 and is

intended to provide a review of the financial position and results of operatio ns of Centerra Gold Inc.

(“Centerra” or the “Company”) for the three and twelve months ended December 31, 2020 in comparison

with the corresponding periods ended December 31, 2019. This discussion should be read in conjunction

with the Company’s audited financial statements and the notes thereto for the year ended December 31,

2020 prepared in accordance with International Financial Reporting Standards (“IFRS”). The Company’s

audited financial statements and the notes thereto for the year ended December 31, 2020, are available at

www.centerragold.com and on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at

www.sedar.com. In addition, this discussion contains forward looking information regarding Centerra’s

business and operations. Such forward -looking statements involve risks, uncertainties and other factors

that could cause actual results to differ materially from those expressed or implied by such forward looking

statements. See “Caution Regarding Forward-Looking Information” in this discussion. All dollar amounts

are expressed in United States dollars (“USD”), except as otherwi se indicated. All references in this

document denoted with NG indicate a non -GAAP term which is discussed under “Non -GAAP Measures”

and reconciled to the most directly comparable GAAP measure.

Caution Regarding Forward-Looking Information

Information contained in this document which are not statements of historical facts, and the documents

incorporated by reference herein, may be “forward-looking information” for the purposes of Canadian

securities laws. Such forward-looking information involves risks, uncertainties and other factors that could

cause actual results, performance, prospects and opportunities to differ materially from those expressed or

implied by such forward looking information. The words “believe”, “expect”, “anticipate”,

“contemplate”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule”,

“understand” and similar expressions identify forward-looking information. These forward-looking

statements relate to, among other things: statements regarding 2021-2023 Outlook and 2021 Guidance,

including guidance on production, cost and capital spend in 2021, and the assumptions used in preparing;

the impact, if any, of the Kyrgyz Parliamentary election and the aftermath on the Kumtor mine; planned

exploration in 2021; possible impacts to its operations relating to COVID-19; the Company’s expectations

regarding having sufficient liquidity for 2021; the Company’s expectation regarding having sufficient water

at Mount Milligan in the medium term, and its plans for a long term solution; and expectations regarding

litigation involving the Company including the HRS litigation impacting the Mount Milligan mine.

Forward-looking information is necessarily based upon a number of estimates and assumptions that, while

considered reasonable by Centerra, are inherently subject to significant technical, political, business,

economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual

results to differ materially from those projected in the forward-looking information. Factors and

assumptions that could cause actual results or events to differ materially from current expectations include,

among other things: (A) strategic, legal, planning and other risks, including: political risks associated with

the Company’s operations in the Kyrgyz Republic, Turkey and Canada; the failure of the Kyrgyz Republic

Government to comply with its continuing obligations under the Strategic Agreement, including the

requirement that it comply at all times with its obligations under the Kumtor Project Agreements, allow for

the continued operation of the Kumtor mine by KGC and KOC and not take any expropriation action

centerragold.com 7

against the Kumtor mine; actions by the Kyrgyz Republic Government or any state agency or the General

Prosecutor's Office that serve to restrict or otherwise interfere with the payment of funds by KGC and KOC

to Centerra; resource nationalism including the management of external stakeholder expectations; the

impact of changes in, or to the more aggressive enforcement of, laws, regulations and government

practices, including unjustified civil or criminal action against the Company, its affiliates or its current or

former employees; risks that community activism may result in increased contributory demands or business

interruptions; the risks related to outstanding litigation affecting the Company; the impact of the delay by

relevant government agencies to provide required approvals, expertise and permits; potential impact on

the Kumtor Project of investigations by Kyrgyz Republic instrumentalities; the impact of constitutional

changes in Turkey; the impact of any sanctions imposed by Canada, the United States or other jurisdictions

against various Russian and Turkish individuals and entities; potential defects of title in the Company’s

properties that are not known as of the date hereof; the inability of the Company and its subsidiaries to

enforce their legal rights in certain circumstances; the presence of a significant shareholder that is a state-

owned company of the Kyrgyz Republic; risks related to anti-corruption legislation; risks related to the

concentration of assets in Central Asia; Centerra not being able to replace mineral reserves; Indigenous

claims and consultative issues relating to the Company’s properties which are in proximity to Indigenous

communities; and potential risks related to kidnapping or acts of terrorism; (B) risks relating to financial

matters, including: sensitivity of the Company’s business to the volatility of gold, copper and other mineral

prices, the use of provisionally-priced sales contracts for production at Mount Milligan, reliance on a few

key customers for the gold-copper concentrate at Mount Milligan and at Kumtor there is reliance on

Kyrgyzaltyn, as Centerra sells all of its gold doré produced from the Kumtor Mine to Kyrgyzaltyn pursuant

to the Restated Gold and Silver Sale Agreement; use of commodity derivatives, the imprecision of the

Company’s mineral reserves and resources estimates and the assumptions they rely on, the accuracy of the

Company’s production and cost estimates, the impact of restrictive covenants in the Company’s credit

facilities which may, among other things, restrict the Company from pursuing certain business activities or

making distributions from its subsidiaries, the Company’s ability to obtain future financing, the impact of

global financial conditions, the impact of currency fluctuations, the effect of market conditions on the

Company’s short-term investments, the Company’s ability to make payments including any payments of

principal and interest on the Company’s debt facilities depends on the cash flow of its subsidiaries; and

(C) risks related to operational matters and geotechnical issues and the Company’s continued ability to

successfully manage such matters, including the stability of the pit walls at our operations, the movement

of the Davidov Glacier, waste and ice movement and continued performance of the buttress at the Kumtor

mine; the occurrence of further ground movements at the Kumtor mine and mechanical availability; the

risk of having sufficient water to continue operations at the Mount Milligan mine and achieve expected mill

throughput; changes to, or delays in, transportation routes, including cessation or disruption in rail and

shipping networks whether caused by decisions of third party providers or force majeure events (including

COVID-19); the success of the Company’s future exploration and development activities, including the

financial and political risks inherent in carrying out exploration activities; inherent risks associated with

the use of sodium cyanide in the mining operations; the adequacy of the Company’s insurance to mitigate

operational risks; mechanical breakdowns; the Company’s ability to replace its mineral reserves; the

occurrence of any labour unrest or disturbance and the ability of the Company to successfully re-negotiate

collective agreements when required; the risk that Centerra’s workforce and operations may be exposed to

widespread epidemic including, but not limited to, the COVID-19 pandemic; seismic activity in the vicinity

of the Company’s properties; long lead times required for equipment and supplies given the remote location

of some of the Company’s operating properties; reliance on a limited number of suppliers for certain

consumables, equipment and components; the ability of the Company to address physical and transition

risks from climate change and sufficiently manage stakeholder expectations on climate-related issues; the

centerragold.com 8

Company’s ability to accurately predict decommissioning and reclamation costs; the Company’s ability to

attract and retain qualified personnel; competition for mineral acquisition opportunities; risks associated

with the conduct of joint ventures/partnerships; and the Company’s ability to manage its projects effectively

and to mitigate the potential lack of availability of contractors, budget and timing overruns and project

resources. For additional risk factors, please see section titled “Risks Factors” in the Company’s most

recently filed Annual Information Form available on SEDAR at www.sedar.com.

There can be no assurances that forward-looking information and statements will prove to be accurate, as

many factors and future events, both known and unknown could cause actual results, performance or

achievements to vary or differ materially from the results, performance or achievements that are or may be

expressed or implied by such forward-looking statements contained herein or incorporated by reference.

Accordingly, all such factors should be considered carefully when making decisions with respect to

Centerra, and prospective investors should not place undue reliance on forward looking information.

Forward-looking information is as of February 23, 2021. Centerra assumes no obligation to update or

revise forward-looking information to reflect changes in assumptions, changes in circumstances or any

other events affecting such forward-looking information, except as required by applicable law.