Centerra Gold Inc. (CGAU) Q4 2024 Earnings Call Recap
On February 21, 2025, at 9:00 AM ET, Centerra Gold Inc. (CGAU) held its Q4 2024 earnings call. The participants from the company were Lisa Wilkinson, VP of IR and Corporate Communications, Paul Tomory, President and CEO, Paul Chawrun, EVP and COO, and Ryan Snyder, EVP and CFO. The call was moderated by an operator, and the conference call participants were Lawson Winder from Bank of America, Jeremy Hoy from Canaccord Genuity, Anita Soni from CIBC Capital Markets, Brian MacArthur from Raymond James, and Michael Parkin from National Bank Financial.
Company Highlights
Paul Tomory began the call by expressing his gratitude for the continued support from shareholders, employees, and stakeholders. He highlighted the company’s strong operational performance in the fourth quarter, with gold production coming in at the upper end of the guidance range. Paul Chawrun added that the company’s all-in sustaining costs (AISC) were lower than expected due to the optimization of its mining and processing operations.
Financial Results
Ryan Snyder then presented the financial results for the quarter. He reported a net income of $125 million, or $0.16 per share, compared to a net loss of $21 million, or $0.03 per share, in the same period a year ago. Adjusted EBITDA was $275 million, up from $211 million in Q4 2023. Ryan also mentioned that the company generated strong free cash flow of $163 million in the quarter.
Capital Expenditures and Dividends
Paul Tomory announced that the company would continue its capital expenditure program, with a focus on increasing gold production and extending the life of its mines. He also mentioned that the company would increase its dividend by 10% to $0.05 per share quarterly. Paul Chawrun added that the company had a strong balance sheet, with $350 million in cash and $1.1 billion in undrawn credit facilities.
Exploration and Development
Paul Tomory discussed the company’s exploration and development activities, including the expansion of the Boroo mine in Mongolia and the development of the Gumusut Alas gold mine in Indonesia. He expressed his confidence in the potential of these projects, stating that they would contribute significantly to the company’s growth in the coming years.
Market Conditions and Outlook
Jeremy Hoy asked about the current market conditions and the company’s outlook for gold prices. Paul Tomory responded that the gold market remained strong, driven by geopolitical tensions and inflation concerns. He added that the company expected gold prices to remain range-bound in the near term but to continue to trend upwards in the long term.
Environmental, Social, and Governance (ESG) Initiatives
Lawson Winder asked about the company’s ESG initiatives. Paul Tomory highlighted the company’s commitment to sustainable mining practices, including the reduction of water usage and the implementation of renewable energy sources. He also mentioned that the company had made significant progress in its community engagement efforts, including the provision of education and healthcare services to local communities.
Impact on Individual Investors
The strong financial results and positive outlook for the gold market are likely to be welcomed by individual investors in Centerra Gold. The company’s increased dividend and continued capital expenditure program should provide a steady stream of income and growth opportunities for shareholders.
Impact on the World
Centerra Gold’s strong financial performance and commitment to sustainable mining practices are significant for the global gold industry. The company’s expansion of its mines and exploration activities could lead to increased gold production and contribute to the stability of the global gold market. Additionally, the company’s ESG initiatives demonstrate the importance of sustainability in the mining industry and could set a positive trend for other companies to follow.
Conclusion
Centerra Gold’s Q4 2024 earnings call was a positive one, with strong financial results, a positive outlook for the gold market, and a focus on sustainable mining practices and community engagement. The company’s increased dividend and continued capital expenditure program are likely to be welcomed by individual investors, while the expansion of its mines and exploration activities could have a significant impact on the global gold market. Centerra Gold’s commitment to sustainability is also an important trend for the mining industry as a whole.
- Centerra Gold reports strong Q4 2024 financial results, with net income of $125 million and adjusted EBITDA of $275 million
- Company announces 10% increase in dividend to $0.05 per share quarterly
- Paul Tomory discusses expansion of Boroo mine and development of Gumusut Alas gold mine
- Company remains bullish on gold market, with expectations of range-bound prices in the near term and long-term upward trend
- Centerra Gold highlights commitment to sustainable mining practices and community engagement
