Centerra Gold (NYSE:CGAU) said its third-quarter 2026 results reflected continued operating consistency at its Mount Milligan and Öksüt mines, while the company advanced development work at Goldfield and the restart of the Thompson Creek molybdenum operation.
President and Chief Executive Officer Paul Tomory said Mount Milligan delivered its fourth consecutive quarter in line with plan and remained on track to meet full-year production guidance. The company also completed a record $53 million of share repurchases during the quarter, bringing year-to-date buybacks to $125 million.
“Our third quarter results reflect continued consistent execution at our operations,” Tomory said, pointing to operating performance, cost control and progress across Centerra’s project pipeline.
Quarterly financial and operating performance
Chief Financial Officer Ryan Snyder said adjusted net earnings totaled $72 million, or $0.37 per share, in the third quarter. The company reported $143 million in operating cash flow and $17 million in free cash flow.
Centerra sold more than 74,000 ounces of gold and 13.2 million pounds of copper during the quarter. The average realized price was $3,483 per ounce of gold and $5.74 per pound of copper, including the impact of Mount Milligan’s existing streaming arrangements.
The company also sold about 4.6 million pounds of molybdenum through its Langeloth facility at an average realized price of $33.43 per pound.
Consolidated all-in sustaining costs, on a byproduct basis, were $1,775 per ounce in the quarter. Centerra said it remains positioned to achieve its full-year consolidated AISC guidance of $1,650 to $1,750 per ounce.
- Mount Milligan generated $107 million in operating cash flow and $63 million in free cash flow.
- Öksüt generated $68 million in operating cash flow and $66 million in free cash flow.
- U.S. Moly generated $2.9 million in operating cash flow and recorded a $54 million free-cash-flow deficit, primarily due to Thompson Creek restart spending.
At quarter-end, Centerra had total liquidity of $998 million, consisting of $398 million in cash and $600 million available under its corporate credit facility. The company also declared a quarterly dividend of $0.07 per share.
Mount Milligan costs improve on copper credits
Mount Milligan produced more than 44,000 ounces of gold in the third quarter, up 15% from the prior quarter, along with 12.8 million pounds of copper. Centerra maintained its full-year production outlook of 140,000 to 155,000 ounces of gold and 50 million to 60 million pounds of copper.
Third-quarter AISC at Mount Milligan was $985 per ounce on a byproduct basis, down 22% from the prior quarter. The company attributed the improvement to stronger gold production and sales as well as copper byproduct credits.
Centerra reaffirmed Mount Milligan’s full-year gold production cost guidance of $1,450 to $1,550 per ounce. However, it lowered full-year AISC guidance for the mine to $1,100 to $1,200 per ounce from $1,200 to $1,300 per ounce, citing strong year-to-date copper credits.
Tomory said the mine’s recent consistency has been supported by a stronger orebody model, additional infill and grade-control drilling, improved mine-to-mill understanding, and investments in operating and technical personnel.
At Öksüt, gold production exceeded 31,000 ounces, supported by higher grades, operating practices and solution management. The mine remains on track for its previously increased full-year guidance of 120,000 to 135,000 ounces of gold. Its third-quarter AISC was $1,892 per ounce, and Centerra maintained full-year AISC guidance of $1,850 to $1,950 per ounce.
Thompson Creek restart approaches commissioning
Centerra said refurbishment work at Thompson Creek was about 65% complete at the end of September and had risen to 75% by late October. The project remains on track for first molybdenum production in mid-2027.
Tomory said the company had received its final electrical switchgear and was moving into final structural, mechanical and electrical work. He said early commissioning activities are expected to begin late in the first quarter.
Non-sustaining capital expenditures at Thompson Creek were $81 million in the third quarter and $337 million year to date. Centerra maintained its total project capital estimate of $425 million to $450 million. Snyder said remaining spending should be allocated relatively evenly through the middle of 2027, though third-quarter spending was elevated due to mill refurbishment activity.
Management said molybdenum pricing remained constructive, but Tomory noted that there is no meaningful forward or hedging market for molybdenum, leaving the business exposed to spot pricing.
Centerra is continuing to prepare internally for a potential initial public offering or other separation of its U.S. Moly business, but Tomory said the company was “not in a hurry” to pursue such an option because management sees additional value to be recognized in the molybdenum assets.
Goldfield and other growth projects advance
At Goldfield, Centerra said all major permits are now in place for the Gemfield deposit, which accounts for roughly 80% of life-of-mine production. Work during the quarter included detailed engineering, long-lead equipment procurement and initial earthworks. First production is expected in late 2028.
The company also said an Öksüt life-of-mine optimization study is progressing, with results expected alongside year-end disclosures in early 2027. Tomory said the company expects the study to support an extension closer to the midpoint of a previously discussed one- to three-year range, while additional exploration drilling could create further opportunities.
At Kemess, Centerra continues engineering and technical work following a positive preliminary economic assessment released in January. A prefeasibility study is expected in mid-2027.
Looking ahead, management said its capital-allocation priorities remain funding growth projects, maintaining financial flexibility and repurchasing shares. Snyder said Centerra is comfortable holding roughly $100 million to $200 million of cash, with its credit facility available if needed.
About Centerra Gold (NYSE:CGAU)
Centerra Gold Inc is a Canadian-based mining company focused on the acquisition, exploration, development and operation of gold and copper properties. The company produces gold doré and copper-gold concentrate from its operating mines and manages related processing, infrastructure and exploration activities.
Centerra’s principal assets include the Mount Milligan copper-gold mine in British Columbia, Canada, and the Öksüt gold mine in Türkiye. The company also owns the Kemess project in British Columbia, which is being advanced as a potential copper-gold development project.
-limited-logo-1200x675.png){kind=logo}
