Q2 2024 Centerra Gold Inc Earnings Call Transcript
Key Points
- Centerra Gold Inc (CGAU) delivered solid operating performance and maintained consistent cash flow from operations before working capital and income taxes paid.
- Year-to-date production costs are in line with guidance ranges, and full-year 2024 consolidated guidance for production costs and CapEx remains unchanged.
- The company made significant progress on strategic initiatives, including an agreement with Royal Gold to assess Mount Milligan's potential as a multi-decade operation.
- Centerra Gold Inc (CGAU) achieved meaningful progress in ESG initiatives, including a 17% decrease in reportable incidents and surpassing gender diversity goals ahead of schedule.
- The company generated consistent cash flow from operations before working capital and income taxes paid of $94 million in the second quarter.
- Gold and copper sales at Mount Milligan were down quarter over quarter due to the timing of shipments, impacting overall revenue.
- All-in sustaining costs on a by-product basis were higher quarter over quarter at both Mount Milligan and Oksut due to lower sales and higher sustaining CapEx and royalty costs.
- Oksut experienced a free cash flow deficit of $11 million in the second quarter, impacted by routine statutory tax and royalty payments to the Turkish government.
- The molybdenum business unit had a free cash flow deficit of $13 million in the second quarter, primarily due to activities at the Thompson Creek mine.
- The company anticipates potentially exceeding cost guidance ranges if gold prices remain at current elevated levels, driven by higher royalty rates.
Good morning, everyone. Thank you for standing by. This is the conference operator. Welcome to the Centerra Gold second quarter 2024 conference call. As a reminder, all participants are in a listen-only mode and the conference is being recorded. (Operator Instructions)
At this time, I'd like to turn the conference call over to Lisa Wilkinson, Vice President, Investor Relations and Corporate Communications with Centerra Gold. Please go ahead.
Thank you, operator, and good morning, everyone. Welcome to Centerra Gold's second quarter 2024 results conference call. Joining me on the call today are Paul Tomory, President and Chief Executive Officer; Paul Chawrun, Chief Operating Officer; and Ryan Snyder, Chief Financial Officer.
Our release yesterday details our second quarter 2024 results. It should be read in conjunction with our MD&A and financial statements, both of which can be found on SEDAR, EDGAR and our websites. All figures are in US
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