Centerra Gold Inc. 2026 Q3 Earnings Call

Please go ahead. Thank you, operator, and good morning, everyone.

Welcome to Centerra Gold's Third Quarter 2026 Results Conference Call. Joining me on the call today are Paul Tomory, President and Chief Executive Officer, Ryan Snyder, Chief Financial Officer, and Kelly Strong, our Chief Operating Officer. Other members of the executive team are available for the Q&A session. Our news release last night outlines our third quarter 2026 results and is complemented by our MD&A and financial statements, which are available on SEDAR+, EDGAR, and our website. All figures are in U.S. dollars unless otherwise noted. Presentation slides accompanying this webcast are available on Centerra's website. Following the prepared remarks, we will open the call for questions. Before we begin, I would like to remind everyone that today's discussion may include forward-looking statements, which are subject to risks that could cause our actual results to differ from those expressed or implied.

For more information, please refer to the cautionary statements in our presentation and the risk factors outlined in our Annual Information Form. We will also be referring to certain non-GAAP measures during today's discussion. For a detailed description of these measures, please see our news release and MD&A issued yesterday. I will now turn the call over to Paul Tomory.

Thank you, Lisa. Good morning, everyone. Our third quarter results reflect continued consistent execution at our operations. Mount Milligan delivered a fourth consecutive quarter on plan and remains on track to achieve its 2026 production guidance. Strong copper byproduct credits have enabled us to lower Mount Milligan's full-year guidance for all-in sustaining costs, while its production continues to track in line with its previously increased full-year production guidance and original cost guidance ranges. We are pleased with our cost performance in the quarter and year to date, particularly in an environment of continued industry cost pressures. In the third quarter, we completed a record $53 million in share buybacks, bringing our year-to-date total of share purchases to $125 million. This demonstrates our commitment to shareholder returns and reflects the strength of our balance sheet, our ability to generate cash flow, and our disciplined approach to capital allocation.

Our growth pipeline is moving closer to several important milestones. Goldfield has achieved an important permitting milestone in the third quarter, with all major permits now in place for the Gemfield deposit, which accounts for approximately 80% of the life-of-mine production. Development activities also advanced in the quarter, including detailed engineering, long-lead equipment procurement, and initial earthworks for stormwater diversion channels, overburden stockpiles, and borrow material excavation. Further construction site prep activities are planned for the remainder of 2026. The Goldfield project represents our next source of near-term gold production growth, with first production expected in late 2028. At Öksüt, work on our life-of-mine optimization study is well underway, with results expected in early 2027 alongside our year-end disclosures. Our focus remains on maximizing the value of what has already been a very strong operation in our portfolio.

Meanwhile, our team continues to advance engineering and technical work at Kemess, with a PFS expected mid-2027. Following the positive PEA released in January, Kemess represents a project with potential to become our second long-life gold-copper porphyry stone asset in British Columbia. Finally, at Thompson Creek, we remain on track for first molybdenum production in mid-2027, now less than one year away, and in a very constructive price environment. US Moly offers exposure to strategic minerals with the ability to generate robust cash flows, support balance sheet strength, and help build our gold-focused projects. Molybdenum prices are continuing to trend very well above the assumptions used in our feasibility study, reinforcing the attractive economics of the project. Together with the continued ramp-up at Langeloth, we see significant opportunity to create value through an integrated U.S. molybdenum business.

When we look across our portfolio, we see a high-quality asset base, a robust balance sheet, multiple organic growth opportunities across gold, copper, and molybdenum, and substantial exploration upside. We believe this positions the company to deliver meaningful long-term value for shareholders, and our key priorities remain on disciplined execution, advancing our growth projects, and delivering strong operational performance. I would now like to provide an update on our sustainability initiatives. Earlier this month, we held our annual Sustainability Summit in Vancouver, bringing together environmental and community relations teams from across our operations and corporate office. The summit provided an opportunity to share best practices, strengthen collaboration, and advance company-wide initiatives in support of Centerra's broader sustainability strategy.

By bringing together our sustainability leaders, we are working to ensure a consistent and coordinated approach to sustainability across our operations, supporting our long-term success and our commitment to creating lasting value for the communities in which we operate. During the third quarter, our teams also participated in several community initiatives across our operations. At Goldfield, our team participated in the Goldfield Days, an annual event celebrating the town's rich mining history. Alongside our partners, we had the opportunity to engage with community members, showcase our activities at Goldfield, and provide an up-close look at some of the equipment being used on site. At Langeloth, our team donated specialized vehicle stabilization equipment to the Slovan/Smith Township Volunteer Fire Department, supporting the department's emergency response capabilities and helping strengthen local emergency preparedness.

These initiatives reflect our ongoing commitment to being a responsible operator and supporting the communities where our employees live and work. With that, I will turn the call over to Kelly Strong for his first quarterly operating update as our new Chief Operating Officer.

Thanks, Paul. I want to say how pleased I am to have joined Centerra and be part of this team at an exciting time for the company. Since joining, I have had the opportunity to visit all of our mine sites and gain a deeper understanding of our operations and projects. I have been impressed by the quality of our assets and the depth of experience across the organization. I look forward to building on a strong operational foundation already in place, with a continued focus on safe, reliable operations and disciplined execution as we advance our growth projects. Turning now to our third quarter operating results, starting with Mount Milligan. Mount Milligan produced over 44,000 ounces of gold in the quarter, a 15% increase over the previous quarter and consistent with the production profile previously outlined.

Copper production totaled 12.8 million pounds, largely in line with the previous quarter, reflecting planned mine sequencing. Year-to-date gold and copper production remains aligned with the PFS mine plan and remain on track to achieve our full-year production guidance of 140,000-155,000 ounces of gold and 50 million-60 million pounds of copper. All-in sustaining costs on a byproduct basis were $985 per ounce in the third quarter, 22% lower quarter-over-quarter as a result of strong gold production and sales and copper byproduct credits. We reaffirm our full-year gold production cost guidance of $1,450-$1,550 per ounce at Mount Milligan, while strong year-to-date copper byproduct credits have enabled us to lower our full-year AISC guidance to $1,100-$1,200 per ounce from $1,200-$1,300 per ounce.

Moving on to Öksüt, third quarter gold production was over 31,000 ounces, driven by higher grades, enhanced operating practices, and solution management. We remain on track to achieve the previously increased full-year production guidance of 120,000-135,000 ounces of gold. AISC on a byproduct basis was $1,892 per ounce in third quarter, an improvement over the previous quarter, driven by lower royalty expense per ounce due to lower gold prices. We continue to expect Öksüt's full-year AISC on a byproduct basis to be within our guidance range of $1,850-$1,950 per ounce. At Thompson Creek, restart activities continue to advance as planned, with approximately 65% of the infrastructure refurbishment complete at the end of September, increasing to 75% complete as of late October. During the third quarter, the project progressed with most long-lead equipment shipped.

Installation of approximately two-thirds of flotation tanks and agitators are completed, and refurbishment of key mill equipment and electrical work advancing. In October, the final electrical equipment required for the mill refurbishment was delivered to site, and construction of the tailings toe dam was completed. Non-sustaining CapEx in the third quarter was $81 million, brought today capital expenditures at total of $337 million. The project remains in line with the total CapEx estimate of $425 million-$450 million and is on track for first production by mid-2027. I'll now pass it over to Ryan to walk through our financial highlights for the quarter.