The following is a summary of the Centerra Gold Inc. (CGAU) Q1 2024 Earnings Call Transcript:
Financial Performance:
Centerra Gold reported a Q1 net profit of $66 million or $0.31 per share.
Cash balance increased by $35 million to $648 million.
Mount Milligan and Öksüt generated cash from operations of $30 million and $101 million respectively, and free cash flow of $24 million and $90 million respectively.
Centerra remains on track to meet full-year production and unit cost metrics.
The Molybdenum business unit sold approximately 2.9 million pounds of molybdenum in Q1.
Predicted lower sales in Q2 due to shipping schedules and flat TC/RCs and refining costs.
Business Progress:
Key operational improvements proceeding at Mount Milligan and Öksüt.
At Mount Milligan, the site-wide optimization program is advancing and an agreement is in place with Royal Gold to evaluate the mine's potential to operate for multiple decades.
Centerra predicts higher production levels in the first half at Öksüt.
The company completed a commercial optimization plan at Langeloth to boost profitability.
Ongoing ESG initiatives include site-level investigations to understand climate and nature risks and a robust engagement in partnerships and local community projects.
A trial is ongoing for shipments of lower grade copper aimed at better recovery and potentially higher TC/RCs, logistics, and storage costs.
In Q2 and Q3, significant capital expenditure is expected at Mount Milligan, mainly on the tailings storage facility and a water pumping station, along with a scheduled Acid Plant shut down in the Molybdenum business unit.
More details: Centerra Gold IR
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