Centerra Gold Inc. Annual Report - How They Did This Year

Considering investing in Centerra Gold Inc.? This guide helps you understand their business, performance, and future. We'll explain their annual report simply.

This report uses information from their yearly filing, called an Annual Information Form. It covers the year ending December 31, 2025, and was filed on March 23, 2026. Centerra Gold Inc. trades on the New York Stock Exchange (NYSE) as CGAU. It also trades on the Toronto Stock Exchange (TSX) as CG. On that date, they had 199,806,355 shares available to investors.

Here's what we'll cover:

1. What does this company do, and how did they perform this year?

   • Centerra Gold Inc. is a Canadian mining company. They focus on gold and copper deposits in North America (Canada, USA) and Türkiye. They also explore other global markets. A mining company's future relies on its metal deposits, which drive production and future projects. Their sales depend directly on world prices for gold, copper, and molybdenum. These prices can change a lot.
   • They mainly mine gold and related minerals. But they also produce copper and molybdenum.
   • Their Main Operations:
     • Mount Milligan Mine (Canada): This mine produces copper and gold concentrate. It significantly contributes to Centerra's sales with its large-scale operations.
     • Öksüt Mine (Türkiye): This mine produces gold. An updated environmental review was approved in May 2023. The Öksüt Mine then fully restarted operations in early June 2023. This was a positive step, bringing a key gold asset back online after a temporary halt.
   • Their Molybdenum Business: This part of the company includes the Langeloth Metallurgical Facility in Pennsylvania, USA. This facility processes molybdenum from other companies into better products. They also own two molybdenum sites:
     • Thompson Creek Mine (USA): This mine is currently being prepared for a restart.
     • Endako Mine (Canada): They own 75% of this mine. It is currently not producing but is being maintained.
   • They also own the Kemess Project in Canada. This project explores gold, copper, and silver. The Goldfield Project in Nevada, USA, is currently being developed for gold. They have other exploration projects in Türkiye, Canada, and the USA.
   • Metal Prices Were Strong: Metal prices are very important for mining companies. Here's how average prices for their main metals changed, showing good market support:
     • Gold: The average price rose from $1,942 per ounce in 2023 to $2,386 in 2024. It then jumped to $3,439 per ounce in 2025. This greatly boosts potential sales.
     • Copper: Prices also increased. They went from $3.85 per pound in 2023 to $4.15 in 2024. By 2025, they reached $4.51 per pound.
     • Molybdenum: This metal saw a small dip. It went from $24.19 per pound in 2023 to $21.31 in 2024. It then recovered slightly to $22.16 per pound in 2025.
   • Higher gold and copper prices, plus the Öksüt Mine's full restart and Mount Milligan's longer life, suggest strong financial results for the year.
   • Centerra Gold employs about 1,500 people worldwide.

2. Major Wins and Challenges This Year

   • Higher gold and copper prices were a big market win for them this year!
   • Öksüt Mine Back in Action: The Öksüt Mine's updated environmental review was approved in May 2023. This allowed it to fully restart operations in early June 2023. This was crucial. Öksüt is a high-grade, low-cost gold mine. Its return boosts Centerra's gold output and profit.
   • Mount Milligan Mine Life Extended: This is great news! Studies and agreements extended the Mount Milligan Mine's expected life multiple times:
     • In February 2024, an agreement with RGLD Gold AG extended the mine's life to 2035. This related to their metal sales agreement.
     • They then announced a further extension to 2036 in February 2025.
     • Most recently, a study in September 2025 confirmed a huge 10-year extension. This pushes the mine's life to 2045! This gives the key asset a much longer future for production and cash flow.
     • In January 2026, they also received permits to continue Mount Milligan operations through 2035. This regulatory approval is vital for ongoing work.
   • Goldfield Project Moving Forward: Centerra announced they are proceeding with the Goldfield Project in August 2025. They immediately started detailed planning and buying for construction. This is a big step to bring a new gold project online. It diversifies their production and adds future growth.
   • Commitment to Responsible Mining: In 2025, Centerra Gold's operating sites met the Responsible Gold Mining Principles (RGMPs). An independent expert confirmed this. This means Centerra meets high standards for ethical, social, and environmental practices. They have worked on these principles since 2019. This 2025 confirmation is a big achievement. It shows their commitment to sustainable mining, which matters to investors.
   • Recent Operational Incident: An explosion caused a temporary halt at their Langeloth Metallurgical Facility in January 2026. Thankfully, no serious injuries or deaths occurred. This is a challenge. They expect full operations to resume by May 2026. It's a temporary setback, but they are still assessing the financial and operational impact. This shows the risks in mining and processing.

3. Financial Health: Cash, Debt, and Ability to Pay

   • This section shows how strong their finances are. It covers their cash, debt, and ability to pay short-term bills.
   • Credit Line Extended: They extended their $400 million credit line in September 2023. This pushed its due date to September 8, 2027. This gives them ongoing access to money. It also shows lenders trust the company's financial strength.
   • Share Buyback Program: Centerra has been buying back its own shares. The TSX approved renewals for their "Normal Course Issuer Bid" (NCIB) program:
     • In November 2023, they could buy back up to 18.3 million shares.
     • In November 2024, this renewed for up to 18.8 million shares.
     • Most recently, in November 2025, they could buy back up to 20.1 million shares by November 2026. This means management thinks the shares are undervalued. It also returns value to shareholders by reducing the number of shares, which can boost profit per share.
   • No Hidden Debts: The annual report confirms no "off-balance sheet arrangements." This is good news. It means no major hidden debts or complex deals could unexpectedly hurt their finances. This offers investors more clarity.
   • Strong Financial Checks: Management confirmed their internal financial reporting controls were effective last year. This means they have good systems for accurate and reliable financial numbers. Their Audit Committee oversees financial reports. It also approves major deals with related parties. This committee includes independent financial experts (Wendy Kei (Chair), Karen David-Green, Craig MacDougall, and Michael S. Parrett). This adds another layer of financial oversight.
   • Tight Control Over Subsidiaries: Centerra strongly controls its smaller companies (subsidiaries). Most are fully owned. For joint ventures like Endako Mine (75% owned), Centerra manages operations. It prepares budgets and oversees through a committee. This ensures tight control over global operations and finances.
     • How Money Moves: Funds transfer from subsidiaries to Centerra. This covers loan repayments, costs handled by the main company, or dividends from profitable subsidiaries. This shows a clear system for managing money within the company.
   • Smart Risk Management: Centerra has a company-wide risk management program. It covers all operations, projects, and offices. This program uses both "ground-level" and "leadership" approaches. It identifies and manages risks: technical, financial, social, environmental, and political. The Board of Directors oversees this program. Each Board committee handles risks in its specific area. This structured approach helps identify and manage risks early. This is good for investors.
   • Important Sales Agreements: Centerra Gold has a "streaming arrangement" for its Mount Milligan Mine with RGLD Gold AG. They sold a portion of future gold and silver production from that mine. In return, they received an upfront payment. This provides immediate cash. However, it means they give up some future sales from those metals. The agreement was extended in February 2024, linked to the mine's longer life.

4. Key Risks That Could Hurt the Stock Price

   • Different Rules for Metal Estimates: This is important for mining companies! Centerra Gold Inc. follows Canadian rules (NI 43-101) for reporting its metal deposits. These rules differ from U.S. SEC rules. So, their reported gold deposits might not compare directly to a U.S. company's.
     • What's the difference? They classify findings as "proven and probable reserves" (economically mineable). They also use "measured, indicated, and inferred resources."
     • The catch with 'resources': Mineral resources (measured, indicated, inferred) are not the same as reserves. They don't guarantee profit, even with "reasonable prospects for economic extraction."
       • Measured and Indicated Resources: These are better defined. They allow some mine planning. But they are not yet proven profitable. An "indicated" resource is less certain than a "measured" one.
       • Inferred Resources: These have the lowest confidence. They are educated guesses from limited geological data. They might never be profitable or legally mineable. For example, Mount Milligan mine has 27.9 million tonnes of inferred resources. These contain about 50,000 ounces of gold. Kemess Main Open Pit has 237 million tonnes of inferred resource. This holds an estimated 682,000 ounces of gold and 8.1 billion pounds of copper. These numbers sound big. But "inferred" means much uncertainty about profitable extraction.
     • Investor Tip: The SEC recognizes some categories. But be careful. Don't assume all reported metal will become profitable reserves. This isn't a red flag. But understand the differences when comparing Centerra to U.S. miners.
   • Differences in Company Management (Corporate Governance): Centerra Gold Inc. is a Canadian company listed on the NYSE. It follows Canadian corporate governance practices. These differ from typical U.S. company practices. So, some corporate oversight might work differently than U.S. investors expect.
     • Board & Management Review: Their Nominating and Corporate Governance Committee's charter does not specifically cover evaluating the Board and management. (The Human Resources and Compensation Committee handles Board evaluation in practice.)
     • Compensation Advisor Oversight: The Human Resources and Compensation Committee's charter does not explicitly state it sets goals for compensation advisors. (They can hire independent advisors.)
     • Audit Committee Charter: The Audit Committee's charter does not specifically mention overseeing financial statement accuracy. It also doesn't mention the independent auditor's work or reviewing financial data given to analysts.
     • Shareholder Meeting Quorum: Canadian rules allow a quorum with just two shareholders. This is less strict than the NYSE's suggestion of a majority of shares.
     • Shareholder Approval: They follow Canadian rules for things like approving stock plans or issuing many new shares. These might need shareholder approval under different circumstances than for a U.S. company.
   • Mine Safety: The company provides detailed mine safety violations and regulatory issues in Exhibit 99.10. Investors should know this. Safety incidents can affect operations, reputation, and finances. The explosion at Langeloth Metallurgical Facility in January 2026 is a real example. Even if quickly resolved, it shows operational risks.
   • Limits of Internal Controls: The company has strong internal controls. But they admit no control system is perfect. There's always a small risk of undetected errors or fraud. This is a general company risk, but their transparency is good.
   • Political, Legal, and Regulatory Risks: Mining companies often operate in many countries. Centerra Gold operates in Türkiye, the USA, and Canada. This means risks from:
     • Changes in government laws, rules, taxes, or political instability. Also, resource nationalism (countries wanting more control over natural resources).
     • Aggressive law enforcement or legal action against the company or its employees.
     • Problems with property ownership or difficulty enforcing legal rights.
     • Risks from anti-corruption laws.
     • Indigenous land claims and consultation issues near their properties.
     • Risks of kidnapping or terrorism.
     • Changes to tax laws in operating countries.
   • Community Relations and Activism: Local communities greatly impact mining. Community activism could lead to more demands or business halts. This is especially true near populated areas.
   • Failure to Replace Metal Deposits: Finding new gold, copper, or molybdenum deposits is vital for a mining company's long-term survival. If Centerra Gold cannot find and develop new deposits, future production could fall. This would hurt the stock price.
   • Metal Price Swings: Metal prices were strong in 2025. But they can change quickly. Centerra Gold's profits are very sensitive to these price changes. This is true for gold, copper, and molybdenum. They also use "provisionally-priced sales contracts" for some Mount Milligan production. This means the final price can change after the sale, adding uncertainty. They also use financial tools (commodity derivatives) which carry their own risks.
   • Reliance on Key Customers: Centerra Gold depends on a few key customers for copper/gold concentrate from Mount Milligan. If a customer has problems or buys elsewhere, Centerra's sales could suffer.
   • Inflation: Mine operating costs can rise due to inflation. These include fuel, labor, equipment, and supplies. If costs rise faster than metal prices, profit margins shrink. This also includes unstable fuel prices.
   • Operational Challenges: Running mines is complex and risky:
     • Unexpected ground and water conditions, or unstable pit walls (like rock-slides).
     • Managing tailings storage facilities (where waste is kept).
     • Halt in work due to bad weather, natural disasters (wildfires, earthquakes), or other major events (like pandemics).
     • Risk of not enough water for Mount Milligan operations.
     • Supply chain and transport problems (e.g., rail issues, labor strikes).
     • Lower metal content in rock (ore grades) or less metal extracted (recovery rates) than expected.
     • Risks from using sodium cyanide in mining.
     • Equipment breakdowns, fire, or explosions at processing plants.
     • Long waits for equipment and supplies due to remote locations or global events.
     • Reliance on few suppliers for certain items.
     • Human resource issues, like labor unrest or finding skilled workers.
     • Risk of widespread illnesses affecting their workforce.
     • Processing challenges.
     • Cyber incidents like cybercrime, malware, or data breaches.
     • Project management issues, including cost and time overruns.
   • Financial Restrictions: Rules in their loan agreements and the Mount Milligan Streaming Arrangement might limit business activities. These include paying dividends, buying back shares, or distributing money from subsidiaries.
   • Uncertainty of Estimates: The company's estimates for metal deposits, production, and costs are not always perfect. They rely on assumptions that can change.
   • Climate Change Risks: The company faces risks from physical climate impacts. They also need to manage expectations on climate issues, including rules on greenhouse gas emissions.
   • Molybdenum Price Swings: Big changes in molybdenum prices can greatly affect their working capital. This can also pressure their molybdenum business's survival.
   • Mine Closure Costs: Predicting costs to close mines and restore land is hard. These costs could be higher than expected.
   • Competition for New Mines: Competition to acquire new metal properties exists. This could make it harder for Centerra to grow.
   • Joint Venture Risks: Working in partnerships (like Endako Mine) carries risks. However, Centerra's strong control over its subsidiaries and joint ventures helps reduce some of these.
   • Insurance Coverage: Their insurance might not fully cover all operational and corporate risks.
   • Future Funding: Their ability to get new loans or funding could be affected by market conditions.
   • Debt Repayment: Their ability to pay back loans depends on cash generated by their subsidiaries.

5. Competitive Position

   • The mining industry is very competitive. Centerra constantly competes to find and acquire new metal deposits. They also compete for money, skilled workers, and government approvals. This competitive environment demands constant efficiency and smart exploration. This helps them keep and grow their market share.

6. Leadership or Strategy Changes

   • Leadership changes can greatly affect a company's future.
   • New CEO: Paul Tomory became President and CEO on May 1, 2023. This top-level change brings new leadership to guide the company's strategy.
   • New CFO: Ryan Snyder was promoted to Executive Vice President and CFO on April 8, 2024. This financial leadership change is key for managing the company's money and reports.
   • New COO: David Hendriks will replace Paul Chawrun as Executive Vice President and COO on April 15, 2025. The COO runs all operations, so this affects daily mine work.
   • New Board Chair: Paul Wright will replace Michael Parrett as Board Chair on January 1, 2026. These changes show a big refresh in senior leadership and board oversight. This could signal new company goals.

7. Future Outlook

   • Goldfield Project Development: The company plans to build the Goldfield project in Nevada, USA. They expect first production by end of 2028. This is a solid step toward a new producing mine. They have planned this in detail. This includes estimating rock processing costs ($3.03 to $7.02 per tonne, depending on crushing). They also estimate gold recovery rates (51% to 87%). They set 'cut-off grades' (0.10g/t to 0.16g/t). This is the minimum gold per tonne worth mining. These details show careful economic planning.
   • Mount Milligan Optimization: They are also improving the Mount Milligan mine plan. It now includes a much longer mine life, to 2045. A study confirmed this in September 2025. They also secured permits in January 2026 to operate through 2035. This extension provides long-term stability and money from a key asset.
   • Molybdenum Business Strategy: For molybdenum, they announced a new business plan in September 2024. It includes restarting the Thompson Creek Mine. It also plans a better ramp-up for the Langeloth Metallurgical Facility. This shows a new focus on this area and potential for future production.
   • Kemess Project Advancement: The Kemess Project in Canada is also moving forward. A first economic study was announced in January 2026. Technical work aims for a more detailed study by 2027. First production from Kemess is expected by end of 2031. It should have about a 15-year mine life. This is a big long-term growth project for gold, copper, and silver.
   • These projects show a plan to maintain and increase production. They are key areas for future growth and ongoing operations.

8. Market Trends or Regulatory Changes Affecting Them

   • Gold, copper, and molybdenum prices greatly impact their business. High gold and copper prices in 2025 boosted profits. But price swings or drops could hurt their financial results. Regulatory changes, especially in operating countries, are also key. These can affect permits, environmental rules, and operating costs. Global financial health and currency changes also matter. They impact costs and sales values.
   • A good regulatory change was the Öksüt Mine's updated environmental review approval in May 2023. This allowed full operations to restart. Also, securing permits for Mount Milligan through 2035 in January 2026 was a crucial regulatory win. It ensures long-term certainty for their biggest producing mine.