Centerra Gold (TSX: CG) has cut its 2026 cost guidance at Mount Milligan after higher copper credits pushed the mine’s all-in sustaining costs below US$1,000 per ounce in the third quarter. The improvement didn’t carry through to the company’s adjusted earnings however, which fell from the prior quarter.
Revenue rose 13% from the second quarter to US$500.3 million. Net earnings climbed to US$88.7 million, or US$0.46 per share, from US$72.1 million, or US$0.37 per share. Adjusted net earnings went the other way, falling to US$71.8 million, or US$0.37 per share, from US$79.3 million, or US$0.40 per share. Adjusted EBITDA also dropped, to US$137.6 million from US$157.5 million, even though revenue was higher.
Cash flow was the stronger part of the quarter. Operating cash flow more than doubled to US$143.1 million. Free cash flow turned positive at US$17.1 million after a US$23.0 million deficit in the second quarter, while spending continued at the Thompson Creek and Goldfield projects.
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Cash fell to US$398 million from US$450.9 million after the company spent a record US$53.0 million on share buybacks during the third quarter. Its US$600 million credit facility is still undrawn, bringing total liquidity to US$998 million. Buybacks so far this year total US$125.2 million, against a US$200 million target for 2026.
Gold production rose 7% from the second quarter to 75,429 ounces. Mount Milligan produced 44,070 ounces, up 15%, while Öksüt slipped 4% to 31,359 ounces. Copper output eased to 12.8 million pounds from 13.1 million pounds.
Over the first 9 months, Centerra has produced 214,157 ounces of gold. That’s 82% of the low end of its 260,000 to 290,000 ounce guidance. Copper output reached 40.1 million pounds against a 50 to 60 million pound target, and the company said both mines remain on track.
Consolidated all-in sustaining costs rose to US$1,775 per ounce from US$1,707 per ounce. That’s above the top of the full year range of US$1,650 to US$1,750 per ounce, although management said the company is well positioned to finish within it. Gold production costs increased to US$1,505 per ounce from US$1,456 per ounce.
The two mines moved in opposite directions. Mount Milligan’s all-in sustaining costs fell to US$985 per ounce from US$1,269 per ounce, and the company lowered the mine’s full year guidance to US$1,100 to US$1,200 per ounce from US$1,200 to US$1,300 per ounce. Öksüt meanwhile came in at US$1,893 per ounce, within its unchanged range of US$1,850 to US$1,950 per ounce.
Centerra Gold last traded at $28.52 on the TSX.
