Centerra Gold Reports Second Quarter Results and Provides Updated 2023 Guidance Including Öksüt All figures are in United States dollars. All production figures reflect payable metal quantities and are on a 100%-basis, unless
NEWS RELEASE
Centerra Gold Reports Second Quarter Results and
Provides Updated 2023 Guidance Including Öksüt
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, Canada, July 31, 2023: Centerra Gold Inc. (“Centerra” or the “Company”) (TSX: CG and NYSE:
CGAU) today reported its second quarter 2023 results.
Second Quarter Highlights
Operations:
• Production: Second quarter 2023 gold production of 61,622 ounces, including production from
Mount Milligan Mine (“Mount Milligan”), which achieved record throughput in May and June in the
process plant, and a partial month of production from the Öksüt Mine (“Öksüt”). Copper production
in the quarter was 13.8 million pounds.
• Sales: Second quarter 2023 gold sales of 48,155 ounces at an average realized market price of $ 1,532
per ounce and copper sales of 12.8 million pounds at an average realized copper price of $ 2.56 per
pound. Gold sales were 22% lower than gold production in the quarter due to timing related to
Turkish national holidays at the end of June 2023.
• Costs: Consolidated gold production costs were $ 1,066 per ounce and all-in sustaining costs
(“AISC”) on by-product basis NG were $ 1,711 per ounce for the quarter. Costs were primarily
impacted by mine sequencing and other timing factors, in addition to general inflation on labour and
consumable costs. In the quarter, the weakening of the Canadian dollar, which offset some of the cost
increases at Mount Milligan, was mitigated by a loss on the Company’s foreign exchange hedging
program.
• Capital expenditures NG: Additions to property, plant, equipment (“PPE”) and sustaining capital
expendituresNG of $20.8 million and $ 20.7 million, respectively. Sustaining capital expenditures NG in
the second quarter 2023 included costs for equipment overhauls and the tailings storage facility
(“TSF”) step out at Mount Milligan, as well as capitalized stripping costs at Öksüt.
• Updated production guidance: Centerra’s 2023 consolidated gold production guidance has been
updated following the resumption of operations at Öksüt and is now expected to be between 340,000
to 360,000 ounces, including estimated gold production of 180,000 to 190,000 ounces at Öksüt and
160,000 to 170,000 ounces at Mount Milligan. Although guidance for Mount Milligan is unchanged,
production is trending to near the low end of the range. Copper production guidance is unchanged and
is expected to be within the range of 60 to 70 million pounds.
• Updated cost guidance: Centerra’s 2023 consolidated gold production costs are expected to be $700
to $750 per ounce, reflecting the full restart of gold production at Öksüt, with lower unit costs
expected during the second half of 2023. Full year 2023 gold production costs at Öksüt are expected
to be $450 to $500 per ounce and the Company has increased full year gold production costs at
Mount Milligan which are now expected to be $1,000 to $1,050 per ounce, up from $900 to $950 per
ounce previously. Full year 2023 AISC on a by-product basis NG is expected to be $1,000 to $1,050
per ounce, including $650 to $700 per ounce at Öksüt and $1,125 to $1,175 per ounce at Mount
Milligan, an increase from previous guidance of $1,075 to $1,125.
Financial:
• Net loss: Net loss of $ 39.7 million or $ 0.18 per share and adjusted net loss NG of $ 42.3 million or
$0.20 per share. Adjustments include $ 8.3 million of reclamation provision revaluation recovery at
sites on care and maintenance and $ 5.7 million of deferred income tax expense resulting from the
effect of foreign exchange rate changes on monetary assets and liabilities in the determination of
taxable income related to the Öksüt and the Mount Milligan mines.
• Free cash flow NG: Cash provided by operating activities of $ 33.4 million and free cash flow NG of
$10.6 million, including a $35 million reduction in working capital from the Langeloth Metallurgical
Facility.
• Cash and cash equivalents: Total liquidity of $ 799.9 million, representing a cash balance of $ 401.8
million and $398.1 million available under a corporate credit facility as at June 30, 2023.
• Dividend: Quarterly dividend declared of C$0.07 per common share
Other:
• Öksüt: On May 31, 2023, the Turkish Ministry of Environment, Urbanization and Climate Change
(the “Ministry of Environment”) approved an amended Environmental Impact Assessment (“EIA”)
for Öksüt and the Company resumed full operations on June 5, 2023.
• Share buy-backs: Under Centerra’s Normal Course Issuer Bid (“NCIB”) program, the Company
repurchased and cancelled 1,271,900 common shares for the total consideration of $ 7.3 million
(C$9.7 million) in the second quarter 2023. The Company continued to make purchases via an
Automatic Share Purchase Plan in July 2023.
• Executive Appointment: In May 2023, the Company appointed Hélène Timpano as its new
Executive Vice-President, Strategy & Corporate Development.
President and CEO, Paul Tomory, commented, “The second quarter of 2023 was pivotal for Centerra, as we
achieved several milestones that should contribute to stronger performance in the second half of the year.
Most notably, at the end of May, we received approval from the Turkish Ministry of Environment for Öksüt’s
amended EIA. Having received these regulatory approvals, we restarted full operations at the mine in early
June and produced 20,503 ounces of gold within the month. Looking ahead, Öksüt’s gold production
guidance is between 180,000 and 190,000 ounces of gold in 2023. At Mount Milligan, we sequenced out of
the ore-waste transition zone of the mine and are on track to access higher grade copper and gold ore in the
second half of the year, which should help to bolster the production profile going forward.”
“We are in the process of evaluating all Centerra’s assets with the intent of developing a comprehensive value
maximizing strategic plan. Key aspects of this plan will include a view on the Molybdenum Business Unit,
with an assessment of the potential for a restart of operations at the Thompson Creek molybdenum mine in
Idaho, continuing to drive operational and technical improvements at Mount Milligan, repositioning our
approach at the Goldfield project to target higher returns, and assessing opportunities for growth in gold
production. This new strategy will focus on safe and sustainable operations while maximizing value for our
shareholders and our local stakeholders.”
Table 1 - Overview of Consolidated Financial and Operating Highlights
($millions, except as noted) Three months ended June 30, Six months ended June 30,
2023 2022 % Change 2023 2022 % Change
Financial Highlights
Revenue 184.5 167.7 10 % 411.0 462.9 (11) %
Production costs 153.5 140.4 9 % 357.8 284.6 26 %
Depreciation, depletion, and amortization ("DDA") 23.3 27.9 (16) % 41.8 65.4 (36) %
Earnings (loss) from mine operations 7.7 (0.6) (1383) % 11.4 112.9 (90) %
Net (loss) earnings (39.7) (2.6) 1427 % (113.1) 86.8 (230) %
Adjusted net (loss) earnings(1) (42.3) (36.2) 17 % (95.1) 20.2 (571) %
Cash provided by (used in) operating activities 33.4 (3.5) (1054) % (66.4) 24.8 (368) %
Free cash flow (deficit) 10.6 (31.2) (134) % (95.3) (22.1) 331 %
Additions to property, plant and equipment (“PP&E”) 20.8 25.3 (18) % 28.8 235.4 (88) %
Capital expenditures - total(1) 22.5 25.7 (12) % 27.4 41.7 (34) %
Sustaining capital expenditures(1) 20.7 24.7 (16) % 25.6 39.8 (36) %
Non-sustaining capital expenditures(1) 1.8 1.0 80 % 1.8 1.9 (5) %
Net (loss) earnings per common share - $/share basic(2) (0.18) (0.01) 1700 % (0.52) 0.29 (278) %
Adjusted net (loss) earnings per common share - $/share basic(1)(2) (0.20) (0.12) 67 % (0.44) 0.07 (729) %
Operating highlights
Gold produced (oz) 61,622 42,728 44 % 94,837 136,512 (31) %
Gold sold (oz) 48,155 41,597 16 % 87,145 136,505 (36) %
Average market gold price ($/oz) 1,890 1,879 1 % 1,890 1,879 1 %
Average realized gold price ($/oz )(3) 1,532 1,335 15 % 1,493 1,580 (6) %
Copper produced (000s lbs) 13,787 17,351 (21) % 27,142 37,910 (28) %
Copper sold (000s lbs) 12,831 18,923 (32) % 28,162 38,372 (27) %
Average market copper price ($/lb) 4.05 4.53 (11) % 4.05 4.53 (11) %
Average realized copper price ($/lb)(3) 2.56 2.19 17 % 3.03 2.99 1 %
Molybdenum sold (000s lbs) 3,030 3,229 (6) % 6,377 6,116 4 %
Average market molybdenum price ($/lb) 21.23 18.38 16 % 27.09 18.73 45 %
Unit costs
Gold production costs ($/oz)(4) 1,066 961 11 % 1,085 624 74 %
All-in sustaining costs on a by-product basis ($/oz)(1)(4) 1,711 1,660 3 % 1,564 780 101 %
All-in costs on a by-product basis ($/oz)(1)(4) 2,284 2,082 10 % 2,205 994 122 %
Gold - All-in sustaining costs on a co-product basis ($/oz)(1)(4) 1,656 1,699 (3) % 1,635 1,008 62 %
Copper production costs ($/lb)(4) 2.28 1.58 44 % 2.51 1.68 49 %
Copper - All-in sustaining costs on a co-product basis – ($/lb)(1)(4) 2.77 2.10 32 % 2.81 2.18 29 %
(1) Non-GAAP financial measure. See discussion under “Non-GAAP and Other Financial Measures”.
(2) As at June 30, 2023, the Company had 217,536,452 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
Arrangement, 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.
2023 Outlook
Centerra’s initial 2023 guidance was disclosed in January 2023, however, as a result of restarting activities at
Öksüt and changes in the unit costs and sustaining capital expenditures NG at Mount Milligan, the Company
has revised its outlook. The Company also updated costs relating to exploration activities, including the
Goldfield Project.
The Company’s updated 2023 outlook and comparative actual results for the six months ended June 30, 2023
are set out in the table below.
Units
2023
Guidance -
updated
Six Months
2023 results
2023
Guidance -
previous
Production
Total gold production(1) (Koz) 340 - 360 95 n/a
Mount Milligan Mine(2)(3)(4) (Koz) 160 - 170 74 160 - 170
Öksüt Mine (Koz) 180 - 190 21 n/a
Total copper production(2)(3)(4) (Mlb) 60 - 70 27 60 - 70
Unit Costs(5)
Gold production costs(1) ($/oz) 700 - 750 1,085 n/a
Mount Milligan Mine(2) ($/oz) 1,000 - 1,050 1,181 900 - 950
Öksüt Mine ($/oz) 450 - 500 404 n/a
All-in sustaining costs on a by-product basisNG(1)(3)(4) ($/oz) 1,000 - 1,050 1,564 n/a
Mount Milligan Mine(4) ($/oz) 1,125 - 1,175 1,250 1,075 - 1,125
Öksüt Mine ($/oz) 650 - 700 1,484 n/a
All-in costs on a by-product basisNG(1)(3)(4) ($/oz) 1,225 - 1,275 2,205 n/a
Mount Milligan Mine(4) ($/oz) 1,175 - 1,225 1,267 1,125 - 1,175
Öksüt Mine ($/oz) 750 - 800 2,896 n/a
All-in sustaining costs on a co-product basisNG(1) ($/oz) 1,050 - 1,100 1,635 n/a
Mount Milligan Mine ($/oz) 1,225 - 1,275 1,330 1,150 - 1,200
Öksüt Mine ($/oz) 650 - 700 2,896 n/a
Copper production costs ($/lb) 2.15 - 2.40 2.51 1.90 - 2.15
All-in sustaining costs on a co-product basisNG ($/lb) 2.90 - 3.15 2.81 2.75 - 3.00
Capital Expenditures
Additions to PP&E(1) ($M) 90 - 115 28.8 n/a
Mount Milligan Mine ($M) 50 - 60 16.1 65 - 70
Öksüt Mine ($M) 35 - 45 10.7 n/a
Total Capital ExpendituresNG(1) ($M) 90 - 115 27.4 n/a
Mount Milligan Mine ($M) 50 - 60 15.1 65 - 70
Öksüt Mine ($M) 35 - 45 10.4 n/a
Sustaining Capital ExpendituresNG(1) ($M) 90 - 110 25.6 n/a
Mount Milligan Mine ($M) 50 - 60 15.1 65 - 70
Öksüt Mine ($M) 35 - 45 10.4 n/a
Non-sustaining Capital ExpendituresNG(6) ($M) 2 1.8 n/a
Depreciation, depletion and amortization(1) ($M) 115 - 140 41.8 n/a
Mount Milligan Mine ($M) 65 - 80 37.2 65 - 80
Öksüt Mine ($M) 40 - 50 2.3 n/a
Income tax and BC mineral tax expense(1) ($M) 80 - 90 9.9 n/a
Mount Milligan Mine ($M) 1 - 3 0.9 1 - 3
Öksüt Mine ($M) 75 - 85 9.0 n/a
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 Streaming Arrangement”). Using an assumed market gold
price of $1,850 per ounce and a blended copper price of $3.85 per pound for the remaining six months ending December 31, 2023 ($1,750
per ounce and $3.85 per pound in the previous guidance), the Mount Milligan Mine’s average realized gold and copper price for the
remaining six months of 2023 would be $1,350 per ounce and $2.98 per pound, respectively, compared to average realized prices of $ 1,493
per ounce and $ 3.03 per pound in the six months ended June 30, 2023, when factoring in the Mount Milligan Streaming Arrangement and
concentrate refining and treatment costs. The blended copper price of $3.85 per pound factors in copper hedges in place as of June 30, 2023
and a market price of $3.70 per pound for the unhedged portion for the remainder of 2023.
3. Gold and copper production at the Mount Milligan Mine assumes recoveries of 66% and 81%, respectively, which is unchanged from the
previous guidance. Gold production at the Öksüt Mine assumes recoveries of approximately 72%. 2023 gold ounces and copper pounds sold
are expected to approximate production figures.
4. Unit costs include a credit for forecasted copper sales treated as by-product for all-in sustaining costs NG and all-in costs NG. Production for
copper and gold reflects estimated metallurgical losses resulting from handling of the concentrate and metal deductions levied by smelters.
5. Units noted as ($/oz) relate to gold ounces and ($/lb) relate to copper pounds.
6. Represents non-sustaining capital expendituresNG at the Goldfield Project.
Mount Milligan
Mount Milligan produced 41,119 ounces of gold, a 24% increase from last quarter, and 13.8 million pounds
of copper in the second quarter of 2023. Production in the quarter was impacted by lower than planned metal
recoveries due to mine sequencing, which resulted in more oxide ore than planned in an ore-waste transition
zone in Phase 9. Mount Milligan is now deeper in Phase 9 and has mostly mined through the ore-waste
transition zone. Copper head grades are expected to improve in the second half of the year as the mine
progresses deeper, which is expected to improve metal recoveries compared to the first half of the year.
During the second quarter of 2023, mining activities were carried out in phases 4, 5, 6, 7, and 9 of the open
pit, with phase 6 being mainly composed of top soil stripping and phase 5 waste being used to construct the
TSF. A total of 12.9 million tonnes were mined in the second quarter of 2023. Process plant throughput for
the second quarter of 2023 was 5.6 million tonnes and averaged 61,482 tonnes per day. The Mount Milligan
processing plant achieved record tonnes processed in the months of May and June 2023.
The Company remains on track to access the higher-grade copper and gold from phase 7 and phase 9 in the
second half of the year. Given the lower than planned production in the first quarter, the Company’s 2023
gold production guidance remains unchanged at 160,000 to 170,000 ounces, although trending near the low
end of the range. Copper production guidance is tracking towards the mid-point of 60 to 70 million pounds for
the year. Mount Milligan’s 2023 gold and copper production is expected to be back-end weighted. Full year
guidance includes a planned mill shutdown in the third quarter 2023. Mount Milligan is expected to have four
concentrate shipments in the third quarter, and another four shipments in the fourth quarter. The timing of
shipments and associated sales between quarters may be affected by logistical delays from the union strike in
the Port of Vancouver.
Gold production costs in the second quarter 2023 were $ 1,255 per ounce driven by higher mining costs and a
decrease in gold ounces sold. Mining costs in the quarter were impacted by mine sequencing and other timing
factors, in addition to general inflation on labour and consumable costs. The benefits of a weakening
Canadian dollar on costs in the quarter were offset by a loss on the Corporate foreign exchange hedge
program. AISC on a by-product basis NG was $1,599 per ounce was driven by slightly higher operating costs,
lower copper credits as a result of lower sales, partially offset by lower sustaining capital expenditures.
Full year 2023 gold production costs at Mount Milligan have been increased and are now expected to be
$1,000 to $1,050 per ounce, up from $900 to $950 per ounce previously. Full year 2023 AISC on a by-
product basisNG guidance at Mount Milligan has also been increased to be in the range of $1,125 to $1,175 per
ounce, up from $1,075 to $1,125 per ounce previously. This was driven by an increase in gold production
costs per ounce, partially offset by lower sustaining capital expenditures. Full year 2023 capital guidance at
Mount Milligan has been lowered to between $50 to $60 million, down from $65 to $70 million previously.
This was driven by lower capitalized costs for the TSF as a result of lower than planned TSF step-out tonnes
and a deferral of some capital projects to 2024.
Öksüt
Öksüt resumed its full operations in early June 2023 following an approval of the amended EIA. During the
month of June 2023, the mine started ramping up its crushing, stacking, and processing activities and
produced 20,503 ounces in the second quarter of 2023. As of June 30, 2023, there were approximately 80,000
recoverable ounces in stored gold-in-carbon inventory and approximately 20,000 ounces in the adsorption,
desorption and recovery (“ADR”) plant inventory. In addition, approximately 200,000 recoverable ounces of
gold remain in ore stockpiles and on the heap leach pad as at June 30, 2023. The mine stacked 0.3 million
tonnes at an average grade of 1.25 g/t, containing 10,546 ounces of gold in the second quarter.
Full year production guidance at Öksüt is expected to be within the range of 180,000 to 190,000 ounces of
gold and it is expected that production levels will continue to ramp up in the second half of the year, with gold
production approximately split 45% and 55% in the third and fourth quarters, respectively.
Gold production costs and AISC on a by-product basis NG for the quarter were $ 404 per ounce and $ 1,143 per
ounce, respectively, and full-year gold production costs are expected to be in the range of $450 to $500 per
ounce. Remaining cash processing costs associated with the 80,000 recoverable ounces in gold-in-carbon
inventory are expected to be less than $50 per ounce, while cash processing costs associated with the 200,000
recoverable ounces of gold in ore stockpiles and on the heap leach pad are expected to be less than $225 and
$100 per ounce, respectively.
On July 15, 2023, the Republic of Türkiye increased the corporate income tax rate applicable to Öksüt from
20% to 25%. The change applies to earnings beginning January 1, 2023 and subsequent taxation periods. The
Company estimated that this change will result in an incremental $0.9 million in cash taxes to be paid with
respect to the income earned in the first half 2023 at Öksüt. The Company will reflect the impact of the
change in tax law in subsequent reporting periods.
To manage gold price risk during an anticipated short-term concentrated gold sales period in Türkiye, the
Company purchased gold put option contracts in the second quarter totaling 75,000 ounces at an average
strike price of $ 1,942 per ounce. The options allow full participation to the upside price movements in the
gold price while protecting against downward movements in pricing for a portion of expected gold sales in the
period from July to October 2023.
Molybdenum Business Unit
In the second quarter 2023, the Molybdenum Business Unit sold approximately 3.0 million pounds of
molybdenum, generating revenue of $ 76.1 million with an average market price of $ 21.23 per pound. In the
first quarter of 2023, the Langeloth Facility required a $67 million investment in working capital to finance its
business. Approximately $35 million of the investment in working capital was released during the second
quarter of 2023. It is expected that additional releases from working capital will occur during the remaining
six months of 2023, provided molybdenum prices remain at their current levels.
Goldfield Project
As a result of a continuing strategic review of the Goldfield project, the Company has made the decision to
focus exploration activities only on oxide and transition material, principally in the Gemfield and nearby
deposits. The Company will take additional time to perform exploration activities in its large, under explored
land position, targeting oxide mineralization that could be incorporated into the initial resource estimate when
ready. As a result, the Company’s 2023 exploration guidance at Goldfield has been increased to $16 to $20
million, up from $10 million previously.
Exploration
Exploration expenditures in the quarter were $19.1 million and included surface sampling, geological
mapping, geophysical surveying, and drilling at the Company’s various projects and earn-in properties,
targeting gold and copper mineralization in Canada, Türkiye, and the United States of America. The activities
were primarily focused on drilling programs at the Goldfield Project, Mount Milligan, and at greenfield
projects in the USA and Türkiye.
Conference Call Details
Centerra invites you to join its 2023 second quarter conference call on Tuesday, August 1, 2023 at 9:00am
Eastern Time. The call is open to all investors and the media. To join the call, please use the dial-in details
found below. To access the webcast, please use the following link: https://services.choruscall.ca/links/
centerragold2023q2.html.
Presentation slides will be available on Centerra’s website at www.centerragold.com.
Conference Call Replay
Date & Time: August 1, 2023 at 9:00 am Eastern Toll-free: 1-855-669-9658
Toll-free NA: 1-800-319-4610 International: 412-317-0088
International: 604-638-5340 Passcode: 0325
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,
2023 that are available on the Company’s website www.centerragold.com or SEDAR at www.sedar.com.
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 Underground 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
Shae Frosst
Manager, Investor Relations
(416) 204-2159
Additional information on Centerra is available on the Company’s website at www.centerragold.com
and at SEDAR at www.sedar.com and EDGAR at www.sec.gov/edgar.
Caution Regarding Forward-Looking Information:
Information contained in this document which is not a statement of historical fact, and the documents
incorporated by reference herein, may be “forward-looking information” for the purposes of Canadian
securities laws and within the meaning of the United States Private Securities Litigation Reform Act of 1995.
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 “assume”, “anticipate”, “believe”, “budget”, “contemplate”,
“continue”, “de-risk”, “estimate”, “expand”, “expect”, “explore”, “forecast”, “future”, “in line”,
“intend”, “may”, “on track”, “optimize”, “plan”, "potential", “restart”, “result”, “schedule”, “seek”,
“subject to”, “target”, “understand”, “update”, “will”, and similar expressions identify forward-looking
information. These forward-looking statements relate to, among other things: statements regarding 2023
Outlook and 2023 Guidance, including production, costs, capital expenditures, depreciation, depletion and
amortization, taxes and cash flows; the expected profile of the Company’s future production and costs,
including expectations that the Mount Milligan Mine is on track to access higher grades in the second half of
2023, Mount Milligan Mine’s production will be weighted to the back end of 2023 and its shipment profile in
2023, plans and expectations for a ramp-up of gold processing at the Öksüt Mine, including cash processing
costs for Öksüt Mine’s gold in carbon inventory and gold in ore stockpiles and on the heap leach pad, the
release of working capital from the Molybdenum Business Unit, and ongoing evaluations of a restart of the
Thompson Creek 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 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 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; 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; 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; 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 the Company’s operations; the integrity of