Canadian miner Centerra Gold is systematically executing on its strategy by working through its portfolio to unlock value, reports president and CEO Paul Tomory.

The TSX-listed gold-focused company is moving to enhance the value of its base metals assets, with a recent announcement to restart molybdenum production at the Thompson Creek mine, in the US.

Centerra aims to vertically integrate Thompson Creek with the Langeloth metallurgical facility, which will allow for high-grade feed when production begins in the second half of 2027. This integration is expected to facilitate a ramp-up in production toward Langeloth's full capacity of 40-million pounds a year.

The initial capital investment to restart Thompson Creek is estimated to be about $397-million, with capital significantly de-risked owing to an existing pit, advanced rebuilds and purchases, and an existing process plant that requires minimal upgrades and refurbishments.

Centerra states that, at current metal prices, the capital investment to restart Thompson Creek is expected to be funded largely from the group’s cash flow from operations.

At the Mt Milligan gold and copper mine, in British Columbia, Centerra is progressing work on a preliminary economic assessment to illustrate the future potential of the mine.

Tomoroy says the study, which seeks to unlock value beyond the current 2035 mine life, will be completed towards the end of the first half of next year.

Mt Milligan produced 42 993 oz of gold and 13.7-million pounds of copper in the third quarter. For the full year, Mt Milligan will produce between 180 000 oz and 200 000 oz of gold and 55-million and 65-million pounds of copper.

The Öksüt mine, in Türkiye, produced 50 719 oz in the third quarter, and is on track for production of 190 000 oz to 210 000 oz in the full year.

Third-quarter 2024 gold sales were 96 736 oz at an average realized gold price of $2 206/oz and copper sales were 14.2-million pounds at an average realised copper price of $3.37/lb.

Third-quarter 2024 net earnings were $28.8-million, or $0.14 a share, and adjusted net earnings were $38.6-million, or $0.19 a share. 

Even after spending $32-million on the restart of operations at the Thompson Creek mine, Centerra grew its cash and cash equivalents to $604-million at the end of the third quarter. 

“Centerra continues to deliver consistent operating performance and is on track to meet our consolidated production and cost guidance for the year. We have benefited from margin expansion driven by stable cost performance in an elevated metal price environment,” says Tomory.