Monday, September 15, 2025

Canaccord Reduces Centerra Gold’s Price Target To $21 Following Sale of Hardrock Project

On December 15th, Centerra Gold Inc (TSX: CG) agreed to sell its 50% stake in the Hardrock project to Orion Mine Finance for $225 million in cash. There is also a milestone payment of $25 million within the 24 months following a positive mine construction.

Centerra Gold currently has ten analysts covering the company with a weighted 12-month price target of C$19.23. This is down from the average one month ago, which was C$20.40. Three analysts have strong buy ratings, and four analysts have buy ratings. The other three have hold ratings.

Dalton Baretto headlines “A less-than-Premier transaction,” in his note to investors on December 15th. He downgrades Centerra Gold’s 12-month price target to C$21 but reiterates their buy rating on the company.

Baretto says that they understand and recognize the value in Centerra Gold exiting “a difficult partnership and realizing value in the near term,” but he doesn’t understand the price placed on the asset. He says that the total sale price is $316 million. This compares to Canaccord’s carrying value of the 50%, which is $649 million. The price provided on the transaction essentially amounts to a $1,385 per ounce value on the asset.

Baretto says that he is unsure why they would sell their stake in the company at $1,385/ounce. He says that based on their conversation with management, they gather that the selling price was based on the 10-year trailing average gold price, which is $1,385/ounce.

He adds that during their conversations with management, they have no immediate plan for the proceeds but says, “we believe M&A is a possibility. We had previously viewed Premier Gold (the other 50% partner in Hardrock) as a potential acquisition target.”

Baretto writes, “We have updated our estimates to reflect the transaction as described above, and our NAV has declined by C $1.78/sh (8%) to C$19.23/sh.” He says that there are no near-term EBITDA estimates.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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