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Centerra lifts 2022 gold guidance, drops copper

Toronto-listed gold miner Centerra Gold has lifted its 2022 gold production guidance, and dropped copper guidance, due to planned changes in mine sequencing at its Mount Milligan mine in British Columbia.
Centerra lifts 2022 gold guidance, drops copper Centerra lifts 2022 gold guidance, drops copper Centerra lifts 2022 gold guidance, drops copper Centerra lifts 2022 gold guidance, drops copper Centerra lifts 2022 gold guidance, drops copper

Centerra's Mount Milligan mine in Canada

Centerra increased gold guidance to 400-450,000oz from previous guidance of 380-430,000oz. Copper production guidance fell to 70-80 million pounds, from 90-100Mlbs.

"In the year ahead, we expect to see continued strong operational performance at Mount Milligan and Öksüt, with increased gold production levels and significant generation of cash provided by operating activities and free cash flow," Centerra chief executive Scott Perry said.

The company guided for 2022 an all-in sustaining cost on a by-product basis per ounce of US$600-650/oz, compared to previous guidance of US$450-500/oz.

"On a consolidated basis, gold production as well as cost guidance is in line with our estimates," Canaccord Genuity said in a note.

Guidance for Mount Milligan mine in 2022 was lifted to 190,000 to 210,000 oz, compared to previously issued guidance of 170,000 to 190,000 ounces, due to "planned mine sequence changes" - the same factor that weighed on copper guidance.

Guidance for 2022 gold production at the Öksüt, mine in Turkey was maintained at 210,000-240,000oz.

"Gold production is expected to be back-end weighted in 2022, with the first half of the year representing 40% or more of the 2022 annual gold production total while the second half of the year will represent up to 60% of the 2022 annual gold production total," Centerra said.

Full-year 2021 gold production was 308,141 ounces, at the upper end of guidance, with copper production at 73.3 million pounds for the full year 2021, within the guidance range.

2021 gold production costs are expected to be at the lower end of the previously guided range of $600-650 per oz.

Centerra in January 2022 offered to relinquish its claim to the Kumtor gold mine in Kyrgyzstan, which was seized by the government in in 2021 over alleged worker right violations, in exchange for receiving back shares in the company held by the Kyrgyz state-owned gold miner.

"The costs and cashflow impact associated with continued litigation and/or potential settlement of the Kumtor Mine dispute has not been incorporated into the 2022 guidance," Centerra said.