© Reuters.
Centerra Gold Inc. (CG) has reported a blended monetary efficiency within the fourth quarter of 2023, with a internet lack of $28.8 million however an adjusted internet earnings of $61.2 million. The corporate met its manufacturing and value steering for the yr and generated vital free money circulation. With a stable money steadiness of $613 million on the finish of the yr, Centerra Gold is positioned for future progress, anticipating increased gold manufacturing in 2024. The corporate has additionally introduced preliminary plans to increase the lifetime of its Mount Milligan mine and is progressing with different key initiatives.
Key Takeaways
- Centerra Gold met its manufacturing and value steering for 2023.
- The corporate reported a internet lack of $28.8 million in This fall however had adjusted internet earnings of $61.2 million.
- Vital free money circulation was generated, with $111 million in This fall and $160 million for the total yr.
- Centerra Gold ended the yr with a robust money steadiness of $613 million.
- An settlement with Royal Gold (NASDAQ:) was introduced to evaluate the potential for extending the lifetime of Mount Milligan mine past 2035.
- The corporate expects to provide extra gold in 2024 with projected sturdy money circulation from operations.
Firm Outlook
- Centerra Gold anticipates increased gold manufacturing in 2024, between 370,000 and 410,000 ounces.
- Gold manufacturing prices are anticipated to vary from $800 to $900 per ounce.
- All-in sustaining prices are projected to be $1,075 to $1,175 per ounce.
- The corporate plans to speculate $35 million to $45 million in exploration, with a deal with each brownfield and greenfield targets.
Bearish Highlights
- The corporate reported a internet lack of $28.8 million within the fourth quarter.
- The Molybdenum Enterprise Unit skilled a free money circulation deficit of $9 million.
Bullish Highlights
- Adjusted internet earnings for This fall reached $61.2 million.
- Centerra Gold generated $146 million from working actions and $111 million in free money circulation in This fall.
- The Mount Milligan and Öksüt mines produced vital money circulation in This fall.
- Money steadiness elevated by $121 million, offering complete liquidity of over $1 billion.
Misses
- The web loss in This fall displays challenges regardless of sturdy operational efficiency.
Q&A highlights
- Paul Chawrun mentioned ongoing efforts to optimize the Goldmark mine plan and decrease the strip ratio.
- Paul Tomory highlighted long-term enhancements at Mount Milligan, together with potential course of plant modifications to boost gold restoration.
Centerra Gold’s fourth-quarter efficiency demonstrated a strong operational functionality, balanced by monetary challenges. The corporate’s forward-looking statements point out confidence of their skill to extend gold manufacturing and keep sturdy money circulation within the coming yr. With strategic investments in exploration and undertaking growth, Centerra Gold is charting a course for sustained progress and profitability. The transition of the CFO position from Darren Millman to Ryan Snyder in April marks a brand new chapter within the firm’s monetary management, because it continues to navigate the complexities of the worldwide mining trade.
InvestingPro Insights
Centerra Gold Inc.’s (CG) current monetary efficiency and future outlook current a blended image, with vital operational strengths underscored by some monetary challenges. The InvestingPro Insights gleaned from real-time knowledge and skilled evaluation spotlight key components that buyers ought to take into account when evaluating the corporate’s potential.
InvestingPro Information signifies a market capitalization of roughly $1.1 billion, suggesting a notable presence within the mining sector. The corporate’s P/E ratio stands at -6.18, reflecting its current internet loss, whereas the adjusted P/E ratio for the final twelve months as of This fall 2023 is -20.34. Regardless of the unfavorable earnings, Centerra Gold has demonstrated sturdy income progress, with a 28.78% improve during the last twelve months and a formidable 63.2% quarterly income progress in This fall 2023. This progress factors to the corporate’s skill to develop its operations efficiently and generate increased gross sales.
Among the many “InvestingPro Suggestions,” it is price noting that Centerra Gold’s administration has been actively partaking in share buybacks, which could be a signal of confidence within the firm’s future efficiency and a possible worth proposition for shareholders. Moreover, the corporate holds additional cash than debt on its steadiness sheet, offering monetary flexibility and a stable basis for future progress initiatives. That is notably related given the corporate’s plans to spend money on exploration and lengthen the lifetime of its Mount Milligan mine.
Buyers fascinated with a deeper evaluation can discover further “InvestingPro Suggestions” on Centerra Gold, with a complete of 8 ideas accessible. The following tips can present additional insights into the corporate’s monetary well being and future prospects. For entry to those beneficial ideas, go to https://www.investing.com/professional/CGAU and bear in mind to make use of coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Professional and Professional+ subscription.
The corporate’s outlook for elevated gold manufacturing and projected sturdy money circulation from operations in 2024 aligns with the constructive indicators from the “InvestingPro Suggestions,” such because the expectation of internet earnings progress this yr and a excessive shareholder yield. These components, mixed with the corporate’s strategic investments in exploration and undertaking growth, counsel that Centerra Gold is positioning itself for sustained progress and profitability within the mining trade.
Full transcript – Centerra Gold NYQ (CGAU) This fall 2023:
Operator: Thanks for standing by. That is the convention operator. Welcome to the Centerra Gold Fourth Quarter 2023 Convention Name. As a reminder, all individuals are in listen-only mode, and the convention is being recorded. After the presentation, there can be a possibility to ask questions. [Operator Instructions] I’d now like to show the convention over to Lisa Wilkinson, Vice President, Investor Relations and Company Communications with Centerra Gold. Please go forward.
Lisa Wilkinson: Thanks, operator, and good morning, everybody. Welcome to Centerra Gold’s fourth quarter 2023 outcomes convention name. Becoming a member of me on the decision at present are Paul Tomory, President and Chief Govt Officer; Paul Chawrun, Chief Working Officer; and Darren Millman, Chief Monetary Officer. Our launch yesterday particulars our fourth quarter 2023 outcomes. It ought to be learn along with our MD&A and monetary statements, each of which may be discovered on SEDAR, EDGAR and our web site. All figures are in U.S. {dollars}, until in any other case famous. Presentation slides accompanying this webcast can be found on Centerra’s web site. Following the ready remarks, we’ll open the decision for questions. Earlier than we start, I want to warning everybody that sure statements made at present could also be forward-looking and are topic to dangers which can trigger our precise outcomes to vary from these expressed or implied. Please check with the cautionary statements included within the presentation in addition to the chance components set out in our annual info kind. Sure measures we’ll focus on are non-GAAP measures. Please check with the outline of non-GAAP measures in our information launch and MD&A issued yesterday. I’ll now flip the decision over to Paul Tomory.
Paul Tomory: Thanks, Lisa, and good morning, everybody. To start out, I would like to precise my sympathy and help to everybody impacted because of a current slip of the heap leach pad on the mine in Türkiye. We have now despatched a mine rescue staff to help within the restoration efforts and our ideas and prayers are with the affected people. Transferring on to Centerra’s efficiency, we delivered a robust end to 2023, reaching each manufacturing and value steering for the yr. Fourth quarter was our second consecutive quarter of serious free money circulation, and we ended the yr with over $600 million in money and money equivalents. I would additionally like to focus on annual file efficiency at Mount Milligan in each the mine and the plant. Our lately introduced further settlement with Royal Gold permits us to have a look at the Mount Milligan copper-gold porphyry deposit rather more broadly and to evaluate its potential to be a multi-decade operation. It is a key first step in our technique to understand the total potential of this cornerstone asset in a top-tier mining jurisdiction. Trying forward at Mount Milligan, we have initiated a preliminary financial evaluation to guage the potential of a mine life extension past 2035. The PEA is predicted to be accomplished within the first half of 2025. We will even proceed to spend money on exploration drilling to unlock the big mineral endowment in Mount Milligan, setting the stage for potential future useful resource additions. And at last, we’re persevering with to advance site-wide optimization program, assessing all facets of the operation to maximise the potential of the ore physique to set Mount Milligan up for long-term success to 2035 and past. Along with our strategic method on Mount Milligan, we’re additionally centered on a number of key areas in 2024. We count on to finish the feasibility examine for the Thompson Creek restart in the course of 2024 in addition to an preliminary useful resource estimate of the Goldfield Mission by the tip of 2024. Within the yr forward, we count on to proceed to ship on our strategic plan to maximise the worth of the belongings in our portfolio. Lastly, I would like to the touch on a current ESG achievement. In 2020, Öksüt joined the Worldwide Cyanide Administration Institute as a signatory. Over a span of three years, the positioning underwent a certification program to align with the Institute’s rules and requirements observe. In early January, Öksüt efficiently attained certification for the Institute, confirming full adherence to the Worldwide Cyanide Administration Code. This was a collaborative effort with staff members from ESG, occupational well being and security, course of, upkeep and building departments working collectively to attain this vital milestone. And with that, I am going to move the decision over to Paul Chawrun to stroll us by our operational efficiency for the quarter.
Paul Chawrun: Thanks, Paul. On Slide 5, we present working highlights at Mount Milligan for the quarter. The Mount Milligan mine produced over 40,000 ounces of gold and nearly 20 million kilos of within the fourth quarter, reaching 2023 manufacturing steering ranges for each gold and copper. For 2023, Mount Milligan achieved annual information for complete tonnes mined and plant throughput at over 50 million tonnes mined and 21.7 million tonnes processed, respectively. Trying forward, in 2024, we count on Mount Milligan to provide 180,000 to 200,000 ounces of payable gold, which is 23% increased than final yr, primarily as a consequence of mine sequencing and better gold grade. 2024 payable copper manufacturing is predicted to be between 55 million to 65 million kilos. Each gold and copper manufacturing are anticipated to be evenly weighted all year long, however gross sales within the second half of 2024 are anticipated to contribute roughly 55% of the annual gross sales. Within the fourth quarter, gold manufacturing prices had been $946 per ounce and all-in sustaining prices on a by-product foundation had been $946 per ounce. Full yr 2023 gold manufacturing price at Mount Milligan had been $1,088 per ounce, which was according to the steering vary. Full yr all-in sustaining prices had been $1,156 per ounce, beating the steering vary. Trying forward, Mount Milligan’s 2024 all-in sustaining prices are anticipated to be $1,075 to $1,175 per ounce. Within the fourth quarter, we launched into a site-wide optimization program at Mount Milligan centered on an built-in holistic evaluation of occupation and well being and security, mine and plant operations. We’re inspired by the preliminary money circulation enchancment estimates from the primary part of labor on this program, and we count on to start out realizing the advantages of this system later this yr. Consequently, the potential price financial savings usually are not included within the Mount Milligan’s 2024 price steering ranges. On Slide 6, as Paul talked about earlier, we’re assessing Mount Milligan’s potential to be a multi-decade operation. We now have 250 million tonnes of reserves at Mount Milligan, extending our mine life out to 2035. As well as, we’ve got considerably elevated our useful resource to 260 million tonnes, most of which is assessed as measured or indicated. And lastly, we’ve got further drilled stock, which has not been included into the assets, the place we intend to proceed drilling with the target of additional will increase to the assets. We intend to include these further assets into an optimized mine plan in help of a preliminary financial evaluation. On Slide 7, to supply extra element, we’re focusing on deposits to the west and southwest of the primary pit throughout the present mining lease. At Goldmark and South Boundary, there are prospects for close to floor additions. At North Slope, DWBX and Saddle West, we proceed to check for depth extension. And at last, I commend the Mount Milligan website staff for embracing the positioning optimization program. The staff has been absolutely engaged and is devoted to enhancing the tradition for steady enchancment by this necessary initiative. Thus far, we began to see proof of this regularly improved security efficiency within the fourth quarter and year-to-date. On Slide 8 are the working highlights at Öksüt. Öksüt closed out the yr with a second consecutive quarter of sturdy efficiency. Fourth quarter manufacturing was…
