Centerra Gold (TSX: CG) reported Q1 2025 earnings where, despite beating analyst expectations on adjusted EPS and revenue, both figures declined from the prior year.
Revenue declined 2% YoY to $299.5 million from $305.8 million in Q1 2024 and dropped nearly 10% from $331.0 million in Q4 2024, reflecting the sharp fall in gold and copper sales volumes. This figure, however, topped forecast of $247.7 million.
Gross profit also shrank 22% YoY to $76.5 million. Production costs surged 14% YoY to $198.9 million, while DDA dropped 28% to $24.1 million. Notably, net earnings margin was compressed to just 10.2% in Q1 2025, compared to 21.7% a year earlier.
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Net earnings were slashed by more than half, dropping 54% YoY to $30.5 million from $66.4 million in Q1 2024. Adjusted net earnings also declined 16% to $26.4 million, or $0.13 per share, down from $31.3 million or $0.15 per share last year. The deterioration came despite a 39% rise in realized gold prices to $2,554 per ounce and a 22% increase in copper prices to $3.80 per pound.
Adjusted EPS came in at $0.13 per share, also topping forecasts, despite slipping from last year’s counterpart.
The company’s free cash flow plunged 88% YoY to $10.0 million from $81.2 million in Q1 2024, and also dropped 77% from $43.4 million in Q4 2024. Operating cash flow was $58.6 million, down 41% YoY and 35% sequentially. The collapse in free cash flow is directly linked to a 179% surge in capital expenditures to $46.9 million, driven by the $25.8 million non-sustaining capex associated with the restart of Thompson Creek Mine and $18 million in sustaining capex largely for Mount Milligan’s TSF and Öksüt’s heap leach pad.
Centerra ended the quarter with a cash position of $608.2 million and total liquidity of $1.0 billion. In Q1 alone, the firm repurchased $14.9 million worth of shares, with the board approving up to $75 million in buybacks for the year.
Gold production dropped 47% YoY to 59,379 ounces, and copper output fell 19% to 11.6 million pounds. The company sold 61,132 ounces of gold, down 41% YoY. AISC on a by-product basis soared 74% to $1,491 per ounce, with Öksüt carrying the notable surge to $1,563 per ounce, nearly doubling from $823 per ounce last year.
While molybdenum roasted volumes rose 5% YoY to 3.0 million pounds and sales jumped 44% to 4.2 million pounds, the segment posted a $1.0 million loss, with EBITDA of just $0.1 million. Meanwhile, costs continue to mount with consolidated additions to PP&E reaching $68.1 million—a 346% surge from Q1 2024—largely reflecting the Thompson Creek ramp-up.
Centerra’s 2025 production guidance remains unchanged at 270,000–310,000 ounces of gold and 50–60 million pounds of copper.
Centerra Gold last traded at $10.01 on the TSX.
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