Centerra Gold
Primary ticker: TSX:CG, NYSE:CGAU
Stage of development: Production
Primary minerals: Gold, Copper
Project to promote: Mount Milligan
Project location: Canada
Website: www.centerragold.com
Centerra Gold Inc. is a Canadian-based gold 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 District 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.
Cash: USD 592M
Debt: NIL
Major shareholders:
BlackRock Investment Management – 12%
Van Eck Associates Corporation – 9%
Dimensional Fund Advisors – 5%
Donald Smith & Company – 5%
Acadian Asset Management – 4%
Management ownership- <0.2%
Financials
Management Profile
Lisa Wilkinson, Vice President of Investor Relations & Corporate Communications
Lisa manages relationships with the capital markets community and acts as spokesperson to investors and analysts. She serves as a key liaison between the financial markets and Centerra’s senior leadership, providing insights on valuation trends and investor sentiment.
Lisa has over 20 years of experience in investor relations and communications, corporate development, and strategic capital planning and a track record of creating and leading best-in-class investor relations strategies and programs. Prior to joining Centerra in May 2023, she served as Vice President of Investor Relations at Eldorado Gold and TMAC Resources. Prior to that, she worked on capital allocation, business planning and capital projects at Kinross Gold and in equity research with RBC, Scotia, and Citigroup.
Lisa has a Bachelor of Applied Science (Chemical Engineering) from the University of Waterloo and a Master of Business Administration from the Rotman School of Management at the University of Toronto. Lisa maintains a Professional Engineer designation in Ontario and is a certified Project Management Professional.
What is your rationale for taking part in 121 Mining Investment?
Our objective is to expand and diversify our investor mix, building relationships and raising awareness of Centerra Gold. Looking to meet value and growth investors, both generalists and focused on mining. We are interested to meet investors of all sizes – institutional, family offices, brokers, retail.
What recent news would you like to highlight to investors attending?
September 2024 – Thompson Creek feasibility study and strategic plan for the US Molybdenum Operations (US Moly), including a restart of the Thompson Creek mine and ramp-up of the Langeloth metallurgical facility.
February 2024 – Mount Milligan Mine Life Extension and Additional Agreement with Royal Gold. Extending Mount Milligan’s mine life by two years is a key first step in our strategy to realize the full potential of this cornerstone asset in a top-tier mining jurisdiction.
September 2023 – Centerra Gold announced a new strategy, focused on maximizing value through unlocking the unrealized potential of each asset in the company’s portfolio.
What are your key goals in 3 months, 6 months, 12 months?
3 Months:
Announce completion of the feasibility study at Thompson Creek and commercial optimization plan at Langeloth.
6 Months:
Value realization via staged restart of Thompson Creek Mine. Strong synergy potential with Langeloth.
12 Months:
Preliminary Economic Assessment at the Mount Milligan mine in H1 2025.
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
Centerra is a gold-focused company with copper and molybdenum assets, currently trading at a discount to peers due to the misunderstood nature of our molybdenum assets. We are working on a path to value realization via restarting the Thompson Creek mine combined with the strong synergy potential with the Langeloth metallurgical facility. Additionally, Centerra has a strong cash balance and no debt. We are actively implementing a disciplined capital allocation strategy and regularly updating shareholders on how we are progressing (Active share buyback program since 2022; Quarterly dividend paid for the last 18 quarters).
What do you think makes your company such a compelling investment?
• Centerra Gold is a low-cost gold and copper producer, with a strong balance sheet, no debt, operating in favorable jurisdictions (Canada, USA, Turkey), led by a strong, technically-focused management team.
• However, we are trading at a discount to peers.
• As we deliver on our operational plans and execute on our value-maximizing strategy, we believe we have the potential to increase our valuation.
What are the top 3 key investor takeaways?
• Centerra’s strategic plan was released in September 2023. It focuses on maximizing the value for each asset in our portfolio and identifies the opportunities that will drive future value and growth for Centerra.
• The management team has already delivered on some aspects of the new strategy with increased production at the Öksüt mine and the additional agreement with Royal Gold, unlocking the potential of the Mount Milligan mine to become a multi-decade operation.
• Centerra’s 2024 gold production guidance is 370,000 to 410,000 ounces, and copper production guidance is 55 to 65 million pounds.