Third Quarter 2026 Financial Results Conference Call - CENTERRA GOLD INC

Financial Performance:

• Adjusted net earnings for Q3 2026 were $72 million ($0.37/share), boosted by $10M in deferred tax adjustments and a $7M reclamation provision recovery.
• Consolidated revenues generated from sales of 74,000 oz gold, 13.2M lbs copper, and 4.6M lbs molybdenum; average realized prices were $3,483/oz gold, $5.74/lb copper, and $33.43/lb molybdenum.
• Cash flow from operations (CFO) was $143 million; Free Cash Flow (FCF) was $17 million, though U.S. Molybdenum (U.S. MOLLE) reported a $54M FCF deficit due to Thompson Creek restart CapEx.
• All-in sustaining costs (ASIC) on a by-product basis were $1,775/oz; full-year guidance revised to $1,650–$1,750/oz.
• Mount Milligan ASIC lowered to $1,100–$1,200/oz (from $1,200–$1,300) due to strong copper byproduct credits; sustained costs were $985/oz (22% QoQ decrease).
• Year-to-date share repurchases totaled $125 million, with a record $53 million executed in Q3; quarterly dividend set at $0.07/share.
• Total liquidity at quarter-end was $998 million ($398M cash, $600M available credit facility).

Guidance and Future Outlook:

• Mount Milligan remains on track for full-year guidance of 140k–155k oz gold and 50M–60M lbs copper; 2026 production guidance reaffirmed.
• OXCO (Oksu) guidance increased to 120k–135k oz gold for full-year 2026; ASIC expected within $1,850–$1,950/oz range.
• Thompson Creek first molybdenum production targeted for mid-2027; total CapEx estimate maintained at $425M–$450M (approx. $337M spent to date).
• Goldfield mine first production expected late 2028; life-of-mine optimization study at Oksu results expected early 2027.
• Comass PFS expected mid-2027, targeting a long-life gold-copper borderstone asset in BC.
• Management expects 5–10% net inflation in Turkey for 2027; Mount Milligan absolute costs projected ~5% higher in 2027, offset by production gains.
• Turkish tax rate reduction (25% to 12.5%) expected to apply to Oksu operations starting 2027.

Business Segments and Product Lines:

• Mount Milligan: Produced 44,000 oz gold (+15% QoQ) and 12.8M lbs copper; record share buybacks demonstrate strong cash generation.
• Oksu: Produced 31,000+ oz gold driven by higher grades and improved solution management; cost improvements attributed to lower royalty expenses per ounce.
• Thompson Creek (U.S. MOLLE): 75% infrastructure refurbishment complete as of late October; 65% at end of September; key mill equipment and electrical installations nearing completion.
• Goldfield: Achieved all major permitting milestones for the gem field deposit (80% of LOM production); detailed engineering and initial earthworks underway for late 2028 startup.
• Langlois (U.S. MOLLE): Expected to be EBITDA positive on a go-forward basis; Q3 results included outsized earnings from selling lower-cost inventory due to rising molybdenum prices.
• Comess: Engineering and technical work advancing toward a mid-2027 PFS for a potential second gold-copper asset.

Market and Competitive Landscape:

• Molybdenum prices remain well above feasibility study assumptions, driven by supply constraints and strong demand from defense, aerospace, and energy sectors.
• The company views the molybdenum market as "constructive" and is not in a hurry to monetize the U.S. MOLLE business via IPO despite strong pricing.
• Molybdenum is a spot market with no hedging instruments available, creating exposure to spot price fluctuations.
• Goldfield project represents a significant near-term growth catalyst for gold production; Comess could become a long-life borderstone asset.
• Turkey operations face inflationary pressures but benefit from partial offset by currency devaluation and lower government royalty rates.

Risks and Challenges:

• Cost Inflation: Exposure to labor, diesel, and freight cost inflation in British Columbia and Turkey; managed through production efficiencies and byproduct credits.
• Project Execution: Thompson Creek restart requires precise timing for commissioning; any delays could impact 2027 production targets.
• Market Volatility: No hedging capability for molybdenum exposes the company to spot price volatility.
• Regulatory/Tax: Reliance on Turkish government tax rates; while expected to drop to 12.5%, future policy changes remain a risk.
• Operational Complexity: Integrating Thompson Creek feed into Langlois requires careful capacity management and potential periodic outages for maintenance.

Management Commentary and Tone:

• Tone is confident and positive, emphasizing "consistent execution," "strong operational performance," and a "robust balance sheet."
• New COO Kelly Strong expressed confidence in the asset quality and team depth, focusing on safe operations and disciplined execution.
• Management highlighted a strategic focus on driving NAV per share growth through project development and share buybacks, reducing the share count to offset capital deployment.
• Leadership emphasized a "self-funded growth strategy" enabled by strong cash flows from existing assets.

Analyst Questions and Answers:

• Thompson Creek Critical Path: Confirmed that final structural, mechanical, and electrical work is the remaining path; early commissioning expected late Q1 2027.
• Capital Allocation: No minimum cash balance target set (current plan to hold $100M–$200M for operations); willing to deploy excess cash into projects or buybacks.
• CapEx Cadence: Thompson Creek spending is front-loaded; $337M spent to date, with remaining spend expected to be allocated evenly through mid-2027.
• Cost Guidance: Confirmed cost-to-complete for Thompson Creek remains within $425M–$450M range; confidence high as key equipment is on-site.
• U.S. MOLLE IPO: No timeline set; company sees further upside in molybdenum prices and prefers to wait before monetizing the asset.
• Langlois Utilization: Planning to integrate Thompson Creek feed gradually starting in 2027; no full shutdown required, but a planned outage is scheduled for early 2027 to prepare for higher utilization.
• Oksu Extension: New results to be released in February likely to support a 1–3 year mine life extension, leaning toward the midpoint of that range.
• Turkey Tax: Confirmed 12.5% tax rate likely applies to all Oksu production moving forward.

Other Key Points:

• Sustainability: Annual Sustainability Summit held in Vancouver; active community engagement at Goldfield (Goldfield Days) and Langlois (donations to volunteer fire department).
• Human Capital: Significant investment in team at Mount Milligan, including a new world-class General Manager and the appointment of Kelly Strong as COO.
• Exploration: Extensive drilling program underway at Goldfield and Oksu to support future extensions and grade control.
• Strategic Integration: Building an integrated U.S. Molybdenum business model where Thompson Creek provides secure, high-purity feed to optimize Langlois operations and margins.