Centerra Gold Reports Second Quarter 2024 Results; Consistent Operating Performance; Continued Return of Capital to Shareholders All figures are in United States dollars. All production figures reflect payable metal quantities and are on a 100% basis, unless
Centerra Gold Reports Second Quarter 2024 Results; Consistent Operating
Performance; Continued Return of Capital to Shareholders
All figures are in United States dollars. All production figures reflect payable metal quantities and are on a 100% basis, unless
otherwise stated. For references denoted with NG, refer to the “Non-GAAP and Other Financial Measures” disclosure at the
end of this news release for a description of these measures.
TORONTO, Aug. 01, 2024 -- Centerra Gold Inc. (“Centerra” or the “Company”) (TSX: CG and NYSE: CGAU) today reported its
second quarter 2024 operating and financial results.
President and CEO, Paul Tomory, commented, “Centerra delivered another quarter of solid operating performance and
maintained consistent cash flow from operations before changes in working capital and income taxes paid, with year-to-date
production and costs in line with our guidance. We ended the second quarter with cash and cash equivalents of $592 million
after making routine statutory tax and royalty payments in Türkiye totalling $105 million. We remained active on share
buybacks and declared a quarterly dividend, delivering on our disciplined approach of returning capital to shareholders.
“Looking ahead, later this summer we expect to announce our integrated strategy for the Molybdenum Business Unit,
including results of a feasibility study on the restart of the Thompson Creek mine and the details of an optimized commercial
model at Langeloth. Additionally, we expect to publish an initial resource estimate at Goldfield by the end of 2024 and a
preliminary economic assessment in the first half of 2025 illustrating future potential at Mount Milligan. Our production, cost
and capital expenditure guidance for 2024 is unchanged. We continue to deliver on our value maximizing strategy, focused on
realizing the full potential of each of Centerra’s assets,” concluded Mr. Tomory.
Second Quarter 2024 Highlights
Operations
• Production: Consolidated gold production of 89,828 ounces, including 38,609 ounces from the Mount Milligan Mine
(“Mount Milligan”) and 51,219 ounces from the Öksüt Mine (“Öksüt”). Copper production in the quarter was 13.5 million
pounds.
• Sales: Second quarter 2024 gold sales of 83,258 ounces at an average realized gold price NG of $2,097 per ounce and
copper sales of 11.7 million pounds at an average realized copper priceNG of $3.79 per pound. The average realized gold
and copper prices include the impact of the Mount Milligan streaming agreement.
• Costs: Consolidated gold production costs were $870 per ounce and all-in sustaining costs (“AISC”) on a by-product
basisNG were $1,179 per ounce for the quarter.
• Capital expenditures NG: Additions to property, plant, and equipment (“PP&E”) and sustaining capital expenditures NG
were $37.9 million and $30.6 million, respectively. Sustaining capital expenditures NG in the second quarter 2024
included step-out capital for the tailings storage facility, equipment overhauls, projects related to water sourcing and
access, and in-pit capital exploration at Mount Milligan, as well as capitalized stripping and expansions at the heap
leach pad and waste rock dump at Öksüt.
Financial
• Net earnings: Second quarter 2024 net earnings were $37.7 million, or $0.18 per share, and adjusted net earnings NG
were $46.4 million or $0.23 per share. Adjustments to net earnings included $7.4 million of unrealized loss on the
financial asset related to the additional agreement with Royal Gold, $5.5 million of unrealized foreign currency exchange
gains and $5.1 million of reclamation provision revaluation recovery. 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 second quarter 2024, cash provided by
operating activities before working capital and income taxes paid was $93.7 million, consistent with last quarter. Cash
provided by operating activities was $2.6 million and free cash flow NG deficit was $27.0 million, impacted mainly by
statutory tax and royalty payments at Öksüt.
• Cash and cash equivalents: Total liquidity of $992.4 million as at June 30, 2024, comprising a cash balance of $592.4
million and $400.0 million available under a corporate credit facility.
• Dividend: Quarterly dividend declared of C$0.07 per common share.
Other
• Share buybacks: Under Centerra’s normal course issuer bid (“NCIB”) program, the Company repurchased 1,439,700
common shares in the second quarter 2024, for the total consideration of $9.8 million.
• Thompson Creek Feasibility Study: In the second quarter of 2024, following environmental studies and regulatory
reviews, Centerra obtained authorizations for additional lands at Thompson Creek mine, which will enable a proposed pit
highwall layback. This approval is subject to a minor update to the reclamation plan and is a key first step in the overall
permitting process. Work is progressing on a feasibility study to evaluate the restart of mining operations at the
Thompson Creek mine. The Company expects to share results of the study in late summer of 2024, in conjunction with
details of an optimized commercial model for Langeloth.
Highlights Subsequent to Quarter End
• Environmental, Social and Governance (“ESG”) Report: On July 18, 2024, Centerra published its 2023 ESG
Report, which outlines the Company’s health, safety, environmental, social and governance performance for the year
ended December 31, 2023. The report can be accessed on Centerra’s website at www.centerragold.com/sustainability.
Table 1 - Overview of Consolidated Financial and Operating Highlights
($millions, except as noted) Three months ended June 30, Six months ended June 30,
2024 2023 %
Change 2024 2023 %
Change
Financial Highlights
Revenue 282.3 184.5 53% 588.2 411.0 43%
Production costs 162.5 153.5 6% 336.3 357.8 (6)%
Depreciation, depletion, and amortization ("DDA") 27.5 23.3 18% 60.8 41.8 45%
Earnings from mine operations 92.3 7.7 1099% 191.0 11.4 1575%
Net earnings (loss) 37.7 (39.7) 195% 104.1 (113.1) 192%
Adjusted net earnings (loss)(1) 46.4 (42.3) 210% 77.7 (95.1) 182%
Cash provided by (used in) operating activities 2.6 33.4 92% 102.0 (66.4) 254%
Free cash flow (deficit)(1) (27.0) 10.6 (355)% 54.1 (95.3) 157%
Additions to property, plant and equipment (“PP&E”) 37.9 20.8 82% 53.2 28.8 85%
Capital expenditures - total(1) 36.3 22.5 61% 53.1 27.4 94%
Sustaining capital expenditures(1) 30.6 20.7 48% 46.8 25.6 83%
Non-sustaining capital expenditures(1) 5.7 1.8 217% 6.3 1.8 250%
Net earnings (loss) per common share - $/share basic(2) 0.18 (0.18) 200% 0.49 (0.52) 195%
Adjusted net earnings (loss) per common share - $/share
basic(1)(2) 0.23 (0.20) 215% 0.36 (0.44) 182%
Operating highlights
Gold produced (oz) 89,828 61,622 46% 201,169 94,837 112%
Gold sold (oz) 83,258 48,155 73% 187,571 87,145 115%
Average market gold price ($/oz) 2,238 1,976 13% 2,203 1,932 14%
Average realized gold price ($/oz )(3) 2,097 1,532 37% 1,955 1,493 31%
Copper produced (000s lbs) 13,549 13,787 (2)% 27,880 27,142 3%
Copper sold (000s lbs) 11,705 12,831 (9)% 27,327 28,162 (3)%
Average market copper price ($/lb) 4.42 3.84 15% 4.12 3.95 4%
Average realized copper price ($/lb)(3) 3.79 2.56 48% 3.41 3.03 13%
Molybdenum sold (000s lbs) 2,675 3,030 (12)% 5,623 6,377 (12)%
Average market molybdenum price ($/lb) 21.79 21.23 3% 19.93 27.09 (26)%
Average realized molybdenum price ($/lb) 22.10 24.01 (8)% 21.25 29.08 (27)%
Unit costs
Gold production costs ($/oz) (4) 870 1,066 (18)% 802 1,085 (26)%
All-in sustaining costs on a by-product basis ($/oz) (1)(4) 1,179 1,711 (31)% 1,001 1,564 (36)%
All-in costs on a by-product basis ($/oz) (1)(4) 1,442 2,284 (37)% 1,191 2,205 (46)%
Gold - All-in sustaining costs on a co-product basis
($/oz)(1)(4) 1,260 1,656 (24)% 1,125 1,635 (31)%
Copper production costs ($/lb)(4) 2.47 2.28 8% 2.14 2.51 (15)%
Copper - All-in sustaining costs on a co-product basis –
($/lb)(1)(4) 3.21 2.77 16% 2.55 2.81 (9)%
(1) Non-GAAP financial measure. See discussion under “Non-GAAP and Other Financial Measures”.
(2) As at June 30, 2024, the Company had 213,175,964 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, copper
hedges and mark-to-market adjustments on metal sold not yet finally settled.
(4) All per unit costs metrics are expressed on a metal sold basis.
2024 Outlook
There has been no change to the Company’s 2024 guidance metrics except the expected Öksüt Mine current income taxes
were increased from a range of $54 to $60 million to a range of $64 to $70 million reflecting higher gold prices expected for the
year. The Company’s full year 2024 outlook, as adjusted, and comparative actual results for the six months ended June 30,
2024 are set out in the following table:
Units 2024
Guidance
Six months
ended
June 30, 2024
Production
Total gold production(1) (Koz) 370 - 410 201
Mount Milligan Mine(2)(3)(4) (Koz) 180 - 200 87
Öksüt Mine (Koz) 190 - 210 114
Total copper production(2)(3)(4) (Mlb) 55 - 65 28
Unit Costs(5)
Gold production costs (1) ($/oz) 800 - 900 802
Mount Milligan Mine(2) ($/oz) 950 - 1,050 1,017
Öksüt Mine ($/oz) 650 - 750 653
All-in sustaining costs on a by-product basis NG(1)(3)(4) ($/oz) 1,075 - 1,175 1,001
Mount Milligan Mine(4) ($/oz) 1,075 - 1,175 912
Öksüt Mine ($/oz) 900 - 1,000 879
Capital Expenditures
Additions to PP&E (1) ($M) 108 - 140 53.2
Mount Milligan Mine ($M) 55 - 65 19.6
Öksüt Mine ($M) 40 - 50 21.6
Total Capital ExpendituresNG(1) ($M) 108 - 140 53.1
Mount Milligan Mine ($M) 55 - 65 21.5
Öksüt Mine ($M) 40 - 50 20.1
Sustaining Capital ExpendituresNG(1) ($M) 100 - 125 46.8
Mount Milligan Mine ($M) 55 - 65 21.5
Öksüt Mine ($M) 40 - 50 20.1
Non-sustaining Capital ExpendituresNG(1) ($M) 8 - 15 6.3
Depreciation, depletion and amortization(1) ($M) 140 - 165 60.8
Mount Milligan Mine ($M) 90 - 100 32.4
Öksüt Mine ($M) 45 - 55 26.8
Income tax and BC mineral tax expense (1) ($M) 65 - 75 46.4
Mount Milligan Mine ($M) 1 - 5 1.6
Öksüt Mine ($M) 64 - 70 44.8
1. Consolidated Centerra figures.
2. The Mount Milligan Mine is subject to an arrangement with RGLD Gold AG and Royal Gold Inc. (together, “Royal Gold”)
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 (“Mount Milligan
Mine Streaming Agreement”). Using an assumed market gold price of $2,200 per ounce and a blended copper price of
$4.25 per pound for the second half of 2024, Mount Milligan Mine’s average realized gold and copper price for the
remaining two quarters of 2024 would be $1,578 per ounce and $3.32 per pound, respectively, compared to average
realized prices of $1,955 per ounce and $3.41 per pound in the six-month period ended June 30, 2024, when factoring in
the Mount Milligan Streaming Agreement and concentrate refining and treatment costs. The blended copper price of
$4.25 per pound factors in copper hedges in place as of June 30, 2024.
3. Gold and copper production for the second half of the year at the Mount Milligan Mine assumes estimated recoveries of
63% to 65% for gold and 76% to 78% for copper compared to actual recoveries for gold of 65.1% and for copper of
76.5% achieved in the first six months of 2024. The Company estimates full year recoveries of 64% for gold and 78% for
copper.
4. Unit costs include a credit for forecasted copper sales treated as by-product for all-in sustaining costs NG and all-in
costs NG. Production for copper and gold reflects estimated metallurgical losses resulting from handling of the
concentrate and metal deductions levied by smelters.
5. Units noted as ($/oz) relate to gold ounces and ($/lb) relate to copper pounds.
Molybdenum Business Unit
(Expressed in millions of United States dollars) 2024
Guidance
Six months
ended
June 30, 2024
Langeloth Facility
Loss from operationsNG(1) (5) - (15) (4.9)
DD&A Expense 5 - 10 1.6
Cash (used in) provided by operations before changes in working capital (5) - 0 (3.3)
Changes in Working Capital (20) - 20 5.0
Cash (Used in) Provided by Operations (25) - 20 1.7
Sustaining Capital ExpendituresNG (5) - (10) (3.7)
Free Cash Flow (Deficit) from OperationsNG(2) (30) - 10 (2.0)
Thompson Creek Mine (2)
Project Evaluation Expenses(3) (17) - (20) (13.7)
Care and Maintenance Expenses - Cash (1) - (3) (1.6)
Cash (used in) provided by operations before changes in working capital (18) - (23) (15.3)
Changes in Working Capital — 1.1
Cash Used in Operations (18) - (23) (14.2)
Non-sustaining Capital ExpendituresNG (7) - (12) (2.1)
Free Cash Flow (Deficit) from OperationsNG (25) - (35) (16.3)
Endako Mine
Care and Maintenance Expenses (5) - (7) (1.8)
Reclamation Costs (15) - (18) (0.4)
Cash Used in Operations (20) - (25) (2.2)
1. Additions to PP&E calculations for calculating Free Cash Flow (Deficit) from Operations NG include only cash
expenditures for PP&E additions.
2. Relates to the original outlook range for the Thompson Creek Mine for the first six months of 2024 only. The difference
between original guidance range and actual amount incurred for the six months ended June 30, 2024 is expected to be
spent in the third quarter of 2024.
3. Project evaluation expenses are recognized as expense in the consolidated statements of earnings (loss).
Project Evaluation, Exploration, and Other Costs
The Company’s 2024 outlook for the Goldfield Project, Kemess Project, corporate administration, and other exploration
projects and comparative actual results for the six months ended June 30, 2024 are set out in the following table:
(Expressed in millions of United States dollars) 2024
Guidance
Six months
ended
June 30, 2024
Project Exploration and Evaluation Costs
Goldfield Project 9 - 13 3.8
Thompson Creek Mine(1) 17 - 20 13.7
Total Project Evaluation Costs 26 - 33 18.4
Brownfield Exploration(2) 17 - 22 4.3
Greenfield and Generative Exploration 18 - 23 13.8
Total Exploration Costs(2) 35 - 45 18.1
Total Exploration and Project Evaluation Costs 61 - 78 36.5
Other Costs
Kemess Project (3) 19 - 25 6.3
Corporate Administration Costs 37 - 42 20.8
Stock-based Compensation 8 - 10 3.3
Other Corporate Administration Costs 29 - 32 17.5
1. Outlook range for the Thompson Creek Mine relates to the first six months of 2024 only.
2. Total exploration costs include capitalized exploration costs at the Mount Milligan Mine of $1.0 million for the six
months ended June 30, 2024.
3. Kemess Project costs include care and maintenance costs as well as reclamation costs included in the reclamation
provision as at June 30, 2024.
Mount Milligan
Mount Milligan produced 38,609 ounces of gold and 13.5 million pounds of copper in the second quarter of 2024. Mining
activities were carried out in phases 5, 6, 7, and 9 of the open pit. A total of 12.3 million tonnes were mined in the second
quarter of 2024. Process plant throughput for the second quarter of 2024 was 5.3 million tonnes, averaging 58,520 tonnes per
day. Gold sales were down 30% and copper sales were down 25% compared to last quarter. As previously disclosed, the
lower sales volumes were anticipated due to the timing of shipments. Both gold and copper sales are expected to increase in
the second half of 2024, contributing approximately 60% of annual sales. 2024 guidance metrics at Mount Milligan remain
unchanged.
Gold production costs in the second quarter 2024 were $1,102 per ounce. AISC on a by-product basis NG was $1,234 per
ounce, higher than last quarter due to lower sales (as noted above) and higher sustaining capital expenditures.
In the second quarter 2024, sustaining capital expenditures at Mount Milligan were $17.4 million, focused on the tailings
storage facility, equipment overhauls, projects related to water sourcing and access, and in-pit capital exploration.
Centerra continued to execute on its site-wide optimization program at Mount Milligan, initially launched in the fourth quarter
2023. The program is focused on a holistic assessment of occupational health and safety, as well as improvements in mine
and plant operations. This program covers all aspects of the operation to maximize the potential of the orebody, setting up
Mount Milligan for long-term success to 2035 and beyond. While the optimization program is still ongoing, year-to-date the
Company has started to see productivity improvements in the load-haul cycle at the mine, as well as the unit processing costs
related to recycling grinding media and maintenance efficiencies. In the first six months of 2024, milling costs were $5.60 per
tonne processed, 12% lower than the first six months of last year. Due to the longer-term nature of the mining optimization
initiatives, the Company expects to see improvements in mining costs per tonne in 2025.
In February 2024, Centerra announced that the Company has entered into an additional agreement with Royal Gold relating to
Mount Milligan, which has resulted in a life of mine extension to 2035 and established favourable parameters for potential
future mine life extensions. Work is progressing on a preliminary economic assessment (“PEA”) to evaluate the substantial
mineral resources at the Mount Milligan mine with a goal to unlock additional value beyond its current 2035 mine life. The PEA
is expected to be completed in the first half of 2025.
Öksüt
Öksüt produced 51,219 ounces of gold in the second quarter of 2024. Production was lower than last quarter due to
processing most of the gold inventory that had accumulated in the previous year and seasonally significant precipitation
leading to a minor amount of dilution to the pregnant gold solution which negatively affected gold recoveries. 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 3.9 million tonnes were
mined and 1.1 million tonnes were stacked at an average grade of 1.12 g/t. The 2024 production guidance at Öksüt is
unchanged, with approximately 40% to 45% of the annual production weighted to the second half of the year.
Gold production costs and AISC on a by-product basis NG for the second quarter 2024 at Öksüt were $729 per ounce and $943
per ounce, respectively. These costs were higher compared to last quarter primarily due to lower sales and higher royalty
costs resulting from higher average realized gold prices. Öksüt’s gold production costs guidance and AISC on a by-product
basisNG guidance for 2024 is unchanged. However, AISC on a by-product basis NG could exceed the guidance range if gold
prices remain at current levels, due to resulting higher royalty rates.
In the second quarter 2024, sustaining capital expenditures at Öksüt were $8.8 million, focused on capitalized stripping, heap
leach pad expansion and waste rock dump expansion.
In the second quarter of 2024, the Company made an annual royalty payment of $28.6 million and tax payments of $76.4
million to the Turkish government. However, cash flow from operations at Öksüt before statutory payments for tax and royalty
remained consistent quarter-over-quarter.
Molybdenum Business Unit
In the second quarter 2024, the Molybdenum Business Unit sold 2.7 million pounds of molybdenum, generating revenue of
$61.2 million with an average realized price of $22.10 per pound. As part of Centerra’s previously disclosed 2024 guidance,
Langeloth underwent an acid plant maintenance shutdown in the second quarter 2024, which was completed on time and on
budget. The site has returned to normal operations.
As part of Centerra’s strategy to maximize the value for each asset in its portfolio, the Company has recently completed a
commercial optimization plan at Langeloth, geared at increasing profitability and evaluating its future potential. Details of the
commercial optimization plan and the value potential at Langeloth will be announced in conjunction with the Thompson Creek
Mine feasibility study in late summer of 2024.
In the second quarter of 2024, Thompson Creek continued early works in the main open pit area that are expected to continue
through 2024. The costs of these activities are expected to be expensed until a limited notice to proceed is authorized by the
Board of Directors, a matter to be considered following completion of the feasibility study.
While the current Thompson Creek mine permit authorizations support early works and certain activities defined under the
limited notice to proceed, Centerra is advancing discussions with an inter-agency task force to obtain permit modifications for
the full scope of an optimized mine plan, which includes additional land for the pit highwall layback under the jurisdiction of the
U.S. Forest Service. This permitting work is building on the historical permits already in place. In the second quarter of 2024,
following environmental studies and regulatory reviews Centerra obtained authorizations for additional lands at Thompson
Creek, which will enable a proposed pit highwall layback. Due to strong collaboration and proactive support from federal and
Idaho state regulatory agencies, Centerra received authorizations, subject to a minor update to the reclamation plan. This is a
key first step in the overall permitting process. Thompson Creek is also proactively progressing environmental studies which
should support future permitting of a second mine plan modification for additional waste rock quantities which is not required
for several years.
Second Quarter 2024 Operating and Financial Results Webcast and Conference Call
Centerra invites you to join its 2024 second quarter conference call on Friday, August 2, 2024, at 9:00 a.m. Eastern Time.
Details for the webcast and conference call are included below.
Webcast
• Participants can access the webcast at the following webcast link.
• An archive of the webcast will be available until the end of day on November 2, 2024.
Conference Call
• Participants can register for the conference call at the following registration link. Upon registering, you will receive the
dial-in details and a unique PIN to access the call. This process will bypass the live operator and avoid the queue.
Registration will remain open until the end of the live conference call.
• Participants who prefer to dial in and speak with a live operator can access the call by dialing 1-844-763-8274 or 647-
484-8814. It is recommended that you call 10 minutes before the scheduled start time.
• After the call, an audio recording will be made available via telephone for one month, until the end of day September 2,
2024. The recording can be accessed by dialing 1-855-669-9658 or 412-317-0088 and using the access code 2059323.
In addition, the webcast will be archived on Centerra’s website at: www.centerragold.com/investors/webcasts.
• Presentation slides will be available on Centerra’s website at www.centerragold.com.
For detailed information on the results contained within this release, please refer to the Company’s Management’s Discussion
and Analysis ("MD&A") and financial statements for the quarter ended June 30, 2024, that are available on the Company’s
website www.centerragold.com or SEDAR+ at www.sedarplus.ca.
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 Goldfield Project in Nevada,
United States, the Kemess Project in British Columbia, Canada, and owns and operates the Molybdenum Business Unit in
the United States and Canada. Centerra's shares trade on the Toronto Stock Exchange (“TSX”) under the symbol CG and on
the New York Stock Exchange (“NYSE”) under the symbol CGAU. The Company is based in Toronto, Ontario, Canada.
For more information:
Lisa Wilkinson
Vice President, Investor Relations & Corporate Communications
(416) 204-3780
Lana Pisarenko
Senior Manager, Investor Relations
(416) 204-1957
Additional information on Centerra is available on the Company’s website at www.centerragold.com, on SEDAR+ at
www.sedarplus.ca and EDGAR at www.sec.gov/edgar.
Qualified Person
All scientific and technical information presented in this document has been prepared in accordance with the standards of the
Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 and has been reviewed, verified, and
compiled by Centerra’s geological and mining staff under the supervision of W. Paul Chawrun, Professional Engineer, member
of the Professional Engineers of Ontario (PEO) and Centerra’s Executive Vice President and Chief Operating Officer, the
qualified person for the purpose of National Instrument 43-101.
Caution Regarding Forward-Looking Information
This document contains or incorporates by reference “forward-looking statements” and “forward-looking information” as defined
under applicable Canadian and U.S. securities legislation. All statements, other than statements of historical fact, which
address events, results, outcomes or developments that the Company expects to occur are, or may be deemed to be, forward
-looking statements. 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. Forward-looking statements are generally, but not always, identified by the use of forward-looking terminology
such as “believe”, “continue”, “expect”, “evaluate”, “finalizing”, “forecast”, “goal”, “ongoing”, “plan”, “potential”, “preliminary”,
“project”, “restart”, “target” or “update”, or variations of such words and phrases and similar expressions or statements that
certain actions, events or results “may”, “could”, “would” or “will” be taken, occur or be achieved or the negative connotation of
such terms.
Such statements include, but may not be limited to: statements regarding 2024 guidance, outlook and expectations, including
production, cash flow, costs including care and maintenance and reclamation costs, capital expenditures, depreciation,
depletion and amortization, taxes and cash flows; exploration potential, budgets, focuses, programs, targets and projected
exploration results; gold and copper prices; the timing and amount of future benefits and obligations in connection with the
Additional Royal Gold Agreement; a Preliminary Economic Assessment at Mount Milligan Mine and any related evaluation of
resources or a life of mine beyond 2035; a feasibility study regarding a potential restart of the Thompson Creek Mine; an initial
resource estimate at the Goldfield Project including the success of exploration programs or metallurgical testwork; the
Company’s strategic plan; increased gold production at Mount Milligan and the success of any metallurgical reviews including
the blending of elevated pyrite bearing high-grade gold, low-grade copper ore and any recoveries thereof; the optimization
program at Mount Milligan including any improvements to occupational health and safety, the mine and the plant and any
potential costs savings resulting from the same; the expected gold production at Öksüt Mine in 2024; the new multi-year
contract with the existing mining and hauling services provider at Öksüt Mine; royalty rates and taxes, including withholding
taxes related to repatriation of earnings from Türkiye; project development costs at Thompson Creek Mine and the Goldfield
Project; the decommissioning of the Kemess South TSF sedimentation pond and associated works; financial hedges; and
other statements that express management’s expectations or estimates of future plans and performance, operational,
geological or financial results, estimates or amounts not yet determinable and assumptions of management.
The Company cautions that forward-looking statements are necessarily based upon a number of factors and assumptions
that, while considered reasonable by the Company at the time of making such statements, are inherently subject to
significant business, economic, technical, legal, political and competitive uncertainties and contingencies. Known and
unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and
undue reliance should not be placed on such statements and information.
Risk factors that may affect the Company’s ability to achieve the expectations set forth in the forward-looking statements in
this document include, but are not limited to: (A) strategic, legal, planning and other risks, including: political risks associated
with the Company’s operations in Türkiye, the USA and Canada; 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 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; risks related to anti-corruption legislation; 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, molybdenum and other mineral prices; the use of
provisionally-priced sales contracts for production at the Mount Milligan Mine; reliance on a few key customers for the gold-
copper concentrate at the Mount Milligan Mine; 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; persistent inflationary pressures on key input prices; 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; changes to tax regimes; the Company’s ability to obtain future financing; sensitivity to fuel
price volatility; 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, which depends on the cash flow of its subsidiaries; the ability to obtain adequate
insurance coverage; changes to taxation laws in the jurisdictions where the Company operates and (C) unanticipated ground
and water conditions; 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 the Company’s operations leading to structural
cave-ins, wall failures or rock-slides; the integrity of tailings storage facilities and the management thereof, including as to
stability, compliance with laws, regulations, licenses and permits, controlling seepages and storage of water, where applicable;
periodic interruptions due to inclement or hazardous weather conditions or operating conditions and other force majeure
events; the risk of having sufficient water to continue operations at the Mount Milligan Mine and achieve expected mill
throughput; changes to, or delays in the Company’s supply chain and transportation routes, including cessation or disruption in
rail and shipping networks, whether caused by decisions of third-party providers or force majeure events (including, but not
limited to: labour action, flooding, landslides, seismic activity, wildfires, earthquakes, COVID-19, or other global events such
as wars); lower than expected ore grades or recovery rates; 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 and
corporate risks; mechanical breakdowns; the occurrence of any labour unrest or disturbance and the ability of the Company
to successfully renegotiate collective agreements when required; the risk that Centerra’s workforce and operations may be
exposed to widespread epidemic or pandemic; seismic activity, including earthquakes; wildfires; long lead-times required for
equipment and supplies given the remote location of some of the Company’s operating properties and disruptions caused by
global events; 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; regulations regarding greenhouse gas emissions and climate change; significant volatility of
molybdenum prices resulting in material working capital changes and unfavourable pressure on viability of the molybdenum
business; the Company’s ability to accurately predict decommissioning and reclamation costs and the assumptions they rely
upon; the Company’s ability to attract and retain qualified personnel; competition for mineral acquisition opportunities; risks
associated with the conduct of joint ventures/partnerships; risk of cyber incidents such as cybercrime, malware or
ransomware, data breaches, fines and penalties; 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.
Additional risk factors and details with respect to risk factors that may affect the Company’s ability to achieve the
expectations set forth in the forward-looking statements contained in this document are set out in the Company’s latest 40-
F/Annual Information Form and Management’s Discussion and Analysis, each under the heading “Risk Factors”, which are
available on SEDAR+ (www.sedarplus.ca) or on EDGAR (www.sec.gov/edgar). The foregoing should be reviewed in conjunction
with the information, risk factors and assumptions found in this document.
The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether written or oral,
or whether as a result of new information, future events or otherwise, except as required by applicable law.
Non-GAAP and Other Financial Measures
This document contains “specified financial measures” within the meaning of NI 52-112, specifically the non-GAAP financial
measures, non-GAAP ratios and supplementary financial measures described below. Management believes that the use of
these measures assists analysts, investors and other stakeholders of the Company in understanding the costs associated
with producing gold and copper, understanding the economics of gold and copper mining, assessing operating performance,
the Company’s ability to generate free cash flow from current operations and on an overall Company basis, and for planning
and forecasting of future periods. However, the measures have limitations as analytical tools as they may be influenced by the
point in the life cycle of a specific mine and the level of additional exploration or other expenditures a company has to make to
fully develop its properties. The specified financial measures used in this document do not have any standardized meaning
prescribed by IFRS and may not be comparable to similar measures presented by other issuers, even as compared to other
issuers who may be applying the World Gold Council (“WGC”) guidelines. Accordingly, these specified financial measures
should not be considered in isolation, or as a substitute for, analysis of the Company’s recognized measures presented in
accordance with IFRS.
Definitions
The following is a description of the non-GAAP financial measures, non-GAAP ratios and supplementary financial measures
used in this document:
• All-in sustaining costs on a by-product basis per ounce is a non-GAAP ratio calculated as all-in sustaining costs on a
by-product basis divided by ounces of gold sold. All-in sustaining costs on a by-product basis is a non-GAAP financial
measure calculated as the aggregate of production costs as recorded in the condensed consolidated statements of
(loss) earnings, refining and transport costs, the cash component of capitalized stripping and sustaining capital
expenditures, lease payments related to sustaining assets, corporate general and administrative expenses, accretion
expenses, asset retirement depletion expenses, copper and silver revenue and the associated impact of hedges of by-
product sales revenue. When calculating all-in sustaining costs on a by-product basis, all revenue received from the
sale of copper from the Mount Milligan Mine, as reduced by the effect of the copper stream, is treated as a reduction of
costs incurred. A reconciliation of all-in sustaining costs on a by-product basis to the nearest IFRS measure is set out
below. Management uses these measures to monitor the cost management effectiveness of each of its operating
mines.
• All-in sustaining costs on a co-product basis per ounce of gold or per pound of copper , is a non-GAAP ratio calculated
as all-in sustaining costs on a co-product basis divided by ounces of gold or pounds of copper sold, as applicable. All-in
sustaining costs on a co-product basis is a non-GAAP financial measure based on an allocation of production costs
between copper and gold based on the conversion of copper production to equivalent ounces of gold. The Company
uses a conversion ratio for calculating gold equivalent ounces for its copper sales calculated by multiplying the copper
pounds sold by estimated average realized copper price and dividing the resulting figure by estimated average realized
gold price. For the second quarter ended June 30, 2024, 423 pounds of copper were equivalent to one ounce of gold. A
reconciliation of all-in sustaining costs on a co-product basis to the nearest IFRS measure is set out below.
Management uses these measures to monitor the cost management effectiveness of each of its operating mines.
• Sustaining capital expenditures and Non-sustaining capital expenditures are non-GAAP financial measures. Sustaining
capital expenditures are defined as those expenditures required to sustain current operations and exclude all
expenditures incurred at new operations or major projects at existing operations where these projects will materially
benefit the operation. Non-sustaining capital expenditures are primarily costs incurred at ‘new operations’ and costs
related to ‘major projects at existing operations’ where these projects will materially benefit the operation. A material
benefit to an existing operation is considered to be at least a 10% increase in annual or life of mine production, net
present value, or reserves compared to the remaining life of mine of the operation. A reconciliation of sustaining capital
expenditures and non-sustaining capital expenditures to the nearest IFRS measures is set out below. Management
uses the distinction of the sustaining and non-sustaining capital expenditures as an input into the calculation of all-in
sustaining costs per ounce and all-in costs per ounce.
• All-in costs on a by-product basis per ounce is a non-GAAP ratio calculated as all-in costs on a by-product basis
divided by ounces sold. All-in costs on a by-product basis is a non-GAAP financial measure which includes all-in
sustaining costs on a by-product basis, exploration and study costs, non-sustaining capital expenditures, care and
maintenance and other costs. A reconciliation of all-in costs on a by-product basis to the nearest IFRS measures is set
out below. Management uses these measures to monitor the cost management effectiveness of each of its operating