Third Quarter 2026 Financial Results Conference Call - CENTERRA GOLD INC

Explicit Guidance:

• Mount Milligan: Reaffirmed full-year 2026 gold production of 140,000–155,000 ounces; ASIC guidance lowered to $1,100–$1,200 per ounce (from $1,200–$1,300) due to strong copper by-product credits; original $1,450–$1,550 per ounce gold-only ASIC guidance remains.
• Oaks (Oxxo): Maintained increased full-year 2026 gold production guidance of 120,000–135,000 ounces; full-year 2026 ASIC on a by-product basis expected within $1,850–$1,950 per ounce.
• Thompson Creek: On track for first molybdenum production in mid-2027; total project CapEx estimate maintained at $425–$450 million (with ~$337 million spent as of late Q3 2026).
• Outsu: Anticipates tax rate reduction from 25% to 12.5% effective January 1, 2027, impacting all gold production (current and exploration-based) going forward.
• Langeloth: Updated full-year 2026 guidance to $17–$22 million EBITDA (material increase from prior years); expects to return to EBITDA-positive run rate in the foreseeable future.

Business-Segment Outlook:

• Goldfield Project: First production expected in late 2028; all major permits secured in Q3 2026 covering ~80% of life-of-mine production; detailed engineering and long-lead equipment procurement advanced in Q3; construction and site prep planned for remainder of 2026.
• Comes: Positive Preliminary Feasibility Study (PFS) expected mid-2027; represents potential second long-life gold-copper borderstone asset in British Columbia.
• Thompson Creek: Infrastructure refurbishment 75% complete as of late October 2026; final electrical equipment delivered; first commissioning works planned for late Q1 2027; production ramp-up expected to follow mid-2027 start.
• U.S. Molybdenum: Molybdenum prices trending significantly above feasibility study assumptions; full integration of Thompson Creek and Langeloth feed expected to create value through an integrated U.S. Molybdenum business; potential IPO or separation of U.S. Molybdenum monitored but no immediate timeline.
• Outsu Extension: Expecting a 1–3 year mine life extension announcement in February 2027 (midpoint anticipated); further exploration drilling ongoing to assess additional extensions beyond this phase.
• Langeloth Integration: Strategy to "feather in" Thompson Creek concentrate in 2027 alongside third-party concentrate; periodic maintenance outage planned for early 2027 to refresh platform for capacity ramp-up.

Market and Competitive Outlook:

• Molybdenum: Market viewed as constructive with supply constraints and strong demand driven by pipelines, energy, defense, and aerospace; spot market exposure remains (no hedging instruments available).
• Gold/Copper: Strong production volumes and by-product credits expected to continue offsetting absolute cost inflation at Mount Milligan; gold prices and copper credits expected to remain critical to cost performance.
• Turkey Operations: Net inflation (after currency devaluation offset) budgeted at 5–10% for 2027; absolute costs at Mount Milligan expected to rise ~5% due to labor and diesel inflation, but manageable via operational improvements.

Macro / Industry Outlook:

• Capital Allocation: Focus on driving NAV per share growth through project development (numerator) and share count reduction (denominator); minimum cash balance target set at $100–$200 million for operational flexibility.
• Regulatory/Tax: Implementation of Turkish government tax cuts (25% to 12.5%) starting 2027, applicable to mining sector, expected to improve margin profiles.
• Cost Environment: Industry-wide cost pressures noted, but company expects to offset inflation through strong by-product credits and operational efficiency.

Strategic Initiatives:

• Share Buybacks: Discussed repurchasing shares as accretive; year-to-date 2026 total reached $125 million; future buybacks remain contingent on share price and investment opportunities.
• Dividends: Quarterly dividend declared at $0.07 per share.
• Human Capital: New Chief Operating Officer (Kelly Strong) focusing on safe, reliable operations and smooth project-to-operation transitions; specific investments made at Mount Milligan (new GM, technical team).
• Exploration: Continued infill drilling at Outsu and Goldfield; next-generation studies for Goldfield (beyond current study) and potential roles for Indaco (molybdenum) under review.
• Sustainability: Ongoing community engagement and coordinated sustainability strategy across all operations; no specific financial impacts cited beyond operational compliance.

Risks and Headwinds to Outlook:

• Construction Risks: Thompson Creek remaining in budget range relies on equipment already on site; potential risks include cost inflation during final installations and mining stripping, though management expresses high confidence.
• Market Volatility: Molybdenum prices are fully spot-exposed with no hedging capability; gold and copper prices impact cost guidance via by-product credits.
• Regulatory Uncertainty: Turkish tax changes and macroeconomic conditions (inflation/currency) carry risk, though current guidance incorporates 5–10% net inflation.
• Operational: Production forecasts at Mount Milligan rely on updated ore-body models; any deviation in grade or recovery could impact cost performance.

Management Tone on the Future:

• Confidence Level: High confidence in delivery of 2026 production targets and cost guidance; expressed optimism regarding the strategic value of the molybdenum cycle and project milestones.
• Strategic Focus: Emphasis on "disciplined execution," "self-funded growth," and "meaningful long-term value" creation.
• Forward-Looking Adjustments: Lowered ASIC guidance at Mount Milligan indicates positive operational inflection; raised guidance at Langeloth reflects normalized operations; no changes to full-year guidance ranges for core gold assets.
• Hedging: Explicitly stated "not in a hurry" regarding U.S. Molybdenum monetization, indicating patience to capture further value upside.

Miscellaneous:

• Financial Liquidity: Total liquidity at end of Q3 2026 was $998 million ($398 million cash, $600 million credit facility); sufficient to fund entire North American organic growth pipeline while returning capital to shareholders.
• Q&A Highlights: Confirmed that Q3 2026 was a "high watermark" for Thompson Creek CapEx spend, with spending expected to taper into Q4 and early 2027.