Centerra Gold (CGAU) reported strong third-quarter 2026 results, driven by production growth at its Mount Milligan and ksut operations. Adjusted net earnings reached $71.8 million, or $0.37 per share, while revenue surged 27% year-over-year to $500.2 million. Mount Milligan saw a 15% increase in gold production to 44,070 ounces and a 22% reduction in all-in sustaining costs (AISC) to $985 per ounce, thanks to higher production and copper credits. The company lowered its AISC guidance for Mount Milligan to $1,100 to $1,200 per ounce, down from the previous range of $1,200 to $1,300.
The ksut operation produced over 31,000 ounces of gold, benefiting from higher grades and improved operating practices. The Thompson Creek project is now 75% complete, with $337 million invested so far toward a total budget of $425 million to $450 million. The company also repurchased 2.6 million shares for $53 million in the quarter, bringing the year-to-date total to $125 million. Total liquidity stands at $998 million, supporting the company's self-funded growth strategy.
Centerra Gold secured all major permits for the Gemfield deposit at its Goldfield project, which accounts for 80% of the project's life-of-mine production. First production at Goldfield is expected in late 2028. The company is also preparing for a potential initial public offering or separation of its molybdenum business. CFO Ryan Snyder noted cost pressures at Mount Milligan due to labor inflation in British Columbia and higher costs for consumables and diesel.
President Paul Tomory highlighted the strategic importance of the molybdenum business, stating, 'U.S. Moly offers exposure to strategic minerals with the ability to generate robust cash flows to support balance sheet strength.' The company is continuing preparations for the Thompson Creek mill refurbishment, with commissioning works expected to begin in late Q1 2027.