Centerra Gold Reports Third Quarter 2026 Results; Full-Year AISC Guidance on a By-Product Basis Lowered at Mount Milligan Following Continued Operational Execution; Record Quarterly Share Buybacks and Continued Advancement of Self-Funded North American Growth Strategy

Centerra Gold posts strong Q3 2026 results with robust cash flow and record share buybacks.

What the company is saying

Centerra Gold, led by President and CEO Paul Tomory, highlights consistent operational execution in Q3 2026, emphasizing that Mount Milligan delivered its fourth consecutive quarter on plan and remains on track for its 2026 production guidance. The company frames its narrative around strong copper by-product credits, which have allowed a reduction in Mount Milligan’s full-year all-in sustaining cost guidance, and asserts that Öksüt is performing in line with its updated production and cost targets. The announcement stresses cost discipline and capital returns, noting a record level of share repurchases ($53.0 million in Q3) and a quarterly dividend of C$0.07 per share ($9.8 million total). Management claims progress on growth projects, stating Thompson Creek is on track for first molybdenum production in mid-2027, Goldfield development is advancing, and the Kemess Pre-Feasibility Study is moving toward mid-2027 completion. The company signals confidence in its long-term outlook, reiterating its self-funded North American growth strategy and intention to renew its normal course issuer bid, subject to TSX approval.

What the data suggests

Q3 2026 revenue reached $500.3 million, with net earnings of $88.7 million ($0.46 per share) and adjusted net earnings of $71.8 million ($0.37 per share). Gold production totaled 75,429 ounces (Mount Milligan: 44,070 oz; Öksüt: 31,359 oz), and copper production at Mount Milligan was 12.8 million pounds. Realized gold and copper prices were $3,483/oz and $5.74/lb, respectively. Gold production costs were $1,505/oz, and all-in sustaining costs on a by-product basis were $1,775/oz, with full-year AISC guidance reaffirmed at $1,650–$1,750/oz. Cash provided by operating activities was $143.1 million, and free cash flow was $17.1 million. Liquidity stood at $998 million, including $398 million in cash and $600 million in undrawn credit. The company repurchased 2,584,600 shares for $53.0 million in Q3, totaling $125.2 million year-to-date. Capital expenditures were $150.9 million, with $26.1 million sustaining and $124.8 million non-sustaining, mainly for Thompson Creek and Goldfield. The company’s operational and financial disclosures are detailed and transparent for current operations, but quantitative progress on development projects is limited to narrative statements without milestone data.

Analysis

The announcement's tone is positive but proportionate to the substantial, detailed operational and financial results disclosed for Q3 2026. Key profitability metrics (net earnings $88.7M, adjusted EBITDA $137.6M, free cash flow $17.1M) are reported alongside production, sales, and cost data, supporting a strong_positive signal. While some forward-looking statements are present (e.g., project milestones at Thompson Creek, Goldfield, Kemess), the majority of the release focuses on realised, measurable results and guidance tracking. Capital expenditures are significant but are matched by immediate operational cash flow and profitability, with no indication that large outlays are paired with only long-dated, uncertain returns. The language around project development is factual and does not overstate progress. There is no evidence of narrative inflation or overstatement relative to the disclosed data.

Risk flags

• ●Development projects such as Thompson Creek, Goldfield, and Kemess carry execution risk, as timelines for first production and study completion extend into mid-2027 and the release does not provide quantitative progress metrics or detailed milestone tracking.
• ●Sustained profitability depends on maintaining current realized prices for gold and copper; a decline in commodity prices could pressure margins, especially given significant capital outlays ($150.9 million in Q3) and ongoing project investments.
• ●The company’s reliance on strong copper by-product credits to lower all-in sustaining costs at Mount Milligan introduces exposure to copper market volatility, which could impact future cost performance if copper prices weaken.

Bottom line

Centerra Gold’s Q3 2026 results demonstrate strong operational performance, with robust gold and copper production, healthy realized prices, and solid profitability ($88.7 million net earnings, $17.1 million free cash flow). The company is returning capital to shareholders through record share buybacks and a quarterly dividend, while maintaining high liquidity ($998 million). Operational guidance for 2026 remains on track, but the next phase of value creation depends on timely execution at Thompson Creek, Goldfield, and Kemess, where hard milestone data is currently lacking. The narrative is credible for current operations, but investors should monitor for concrete progress updates on development projects and be aware of commodity price risks. The most important takeaway is that Centerra is delivering immediate financial returns while investing heavily in future growth, but the realization of that growth will require continued operational discipline and successful project delivery.

Announcement summary

(TSX:CG, NYSE:CGAU) Centerra Gold Inc. reported its third quarter 2026 operating and financial results. President and CEO Paul Tomory stated that Mount Milligan delivered a fourth consecutive quarter on plan and remains on track to achieve its 2026 production guidance, with strong copper by-product credits enabling a reduction in Mount Milligan’s full-year guidance for all-in sustaining costs on a by-product basis. Öksüt continues to track in line with its previously increased full-year production guidance and original cost guidance ranges. In the third quarter of 2026, consolidated gold production was 75,429 ounces, including 44,070 ounces from Mount Milligan and 31,359 ounces from Öksüt. Copper production at Mount Milligan was 12.8 million pounds. The company remains on track to achieve its 2026 gold production guidance of 140,000 to 155,000 ounces at Mount Milligan and 120,000 to 135,000 ounces at Öksüt, as well as 50 to 60 million pounds of copper at Mount Milligan. Third quarter 2026 gold sales were 74,387 ounces at an average realized gold price of $3,483 per ounce, and copper sales were 13.2 million pounds at an average realized copper price of $5.74 per pound. Consolidated gold production costs were $1,505 per ounce and all-in sustaining costs on a by-product basis were $1,775 per ounce. The company’s 2026 guidance for consolidated AISC on a by-product basis is $1,650 to $1,750 per ounce. Third quarter 2026 additions to property, plant, and equipment were $139.3 million, and capital expenditures were $150.9 million. Sustaining capital expenditures were $26.1 million, mainly related to construction at the tailings storage facility, equipment replacements, and mill maintenance at Mount Milligan. Non-sustaining capital expenditures were $124.8 million, mainly for development at Thompson Creek and Goldfield. Net earnings for the quarter were $88.7 million, or $0.46 per share, and adjusted net earnings were $71.8 million, or $0.37 per share. Key adjustments to net earnings included $10.2 million of deferred income tax adjustments and $7.2 million of reclamation provision revaluation recovery. Cash provided by operating activities was $143.1 million, and free cash flow was $17.1 million. Cash provided by mine operations was $106.8 million at Mount Milligan and $68.3 million at Öksüt, with free cash flow of $62.8 million and $65.8 million, respectively. As of September 30, 2026, total liquidity was $998 million, including a cash balance of $398 million and $600 million available under a corporate credit facility. Under the normal course issuer bid, Centerra repurchased 2,584,600 common shares in the third quarter for a record total consideration of $53.0 million, and has completed $125.2 million of share repurchases in the first nine months of the year. A quarterly dividend of C$0.07 per common share was declared, totaling $9.8 million in the third quarter. The current NCIB expires on November 9, 2026, and Centerra intends to renew it, subject to TSX approval, to purchase for cancellation a number of shares representing the greater of 5% of issued and outstanding shares or 10% of the public float. As of October 29, 2026, Centerra had 193,499,721 issued and outstanding shares. For the three months ended September 30, 2026, revenue was $500.3 million, production costs were $290.8 million, depreciation, depletion, and amortization was $33.4 million, earnings from mine operations were $176.1 million, net earnings were $88.7 million, adjusted net earnings were $71.8 million, adjusted EBITDA was $137.6 million, cash provided by operating activities was $143.1 million, and free cash flow was $17.1 million. Additions to PP&E were $139.3 million, total capital expenditures were $150.9 million, sustaining capital expenditures were $26.1 million, and non-sustaining capital expenditures were $124.8 million. Net earnings per common share were $0.46, and adjusted net earnings per common share were $0.37. Gold produced was 75,429 ounces, gold sold was 74,387 ounces, average market gold price was $4,262 per ounce, and average realized gold price was $3,483 per ounce. Copper produced was 12,773,000 pounds, copper sold was 13,189,000 pounds, average market copper price was $6.40 per pound, and average realized copper price was $5.74 per pound. Molybdenum roasted was 2,784,000 pounds, molybdenum sold was 4,645,000 pounds, average market molybdenum price was $32.98 per pound, and average realized molybdenum price was $33.43 per pound. Gold production costs were $1,505 per ounce, all-in sustaining costs on a by-product basis were $1,775 per ounce, and gold all-in sustaining costs on a co-product basis were $2,205 per ounce. Copper production costs were $2.68 per pound, and copper all-in sustaining costs on a co-product basis were $3.32 per pound. The Mount Milligan Mine is subject to an arrangement with Royal Gold which entitles Royal Gold to purchase 35% of gold and 18.75% of copper produced, requiring Royal Gold to pay $435 per ounce of gold and 15% of the spot price per metric tonne of copper delivered. Using assumed market prices of $4,250 per ounce of gold and $6.25 per pound of copper for 2026, Mount Milligan’s average realized gold and copper prices for 2026 would be $2,915 per ounce and $5.25 per pound, respectively, compared to $2,608 per ounce and $3.96 per pound in 2025. Gold production for 2026 at Mount Milligan assumes estimated recoveries of 60% to 62%, compared to actual gold recovery of 60.3% for the nine months ended September 30, 2026. Copper production for 2026 assumes recovery of 75% to 77%, compared to actual copper recovery of 74.2% for the nine months ended September 30, 2026.

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