Centerra Gold (TSX:CG) Is Up 8.6% After Mount Milligan Mine Life Extended to 2045

• Centerra Gold recently released an updated pre-feasibility study for its Mount Milligan mine, extending the operation's life by around ten years to 2045 and confirming higher gold and copper reserves with improved throughput potential.
• This considerable increase in expected mine life and resource base strengthens Centerra's outlook for long-term cash flow generation and asset value stability.
• Let's explore how the extended Mount Milligan mine life and expanded reserves may recalibrate Centerra Gold's investment outlook.

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Centerra Gold Investment Narrative Recap

To own Centerra Gold, I believe you need confidence in the company's ability to unlock long-term value from its core mines, particularly Mount Milligan and Öksüt, while efficiently managing capital and operational risks. The recent Mount Milligan mine life extension meaningfully strengthens Centerra’s medium-term outlook by bolstering resource certainty, but does not resolve the immediate concern of ore grade variability and production guidance risk at Mount Milligan, which remains the top short-term catalyst and risk for the business.

Most relevant to this development is the company’s August technical study on its Goldfield project, highlighting clear ambitions for multi-asset growth. While Goldfield offers a low-capex route to future production, Centerra’s credibility as a growth story still hinges on the predictability of output and cost stability at Mount Milligan, where infill drilling and geological confidence remain front and center for investors watching near-term performance.

By contrast, what investors should watch closely is the ongoing uncertainty around Mount Milligan’s future ore grades and the impact unpredictable geology could have on production and revenue...

Read the full narrative on Centerra Gold (it's free!)

Centerra Gold's outlook anticipates $1.6 billion in revenue and $106.3 million in earnings by 2028. This implies a 9.2% annual revenue growth rate and a $31 million increase in earnings from $75.3 million today.

Uncover how Centerra Gold's forecasts yield a CA$13.47 fair value, a 6% downside to its current price.

Exploring Other Perspectives

Seven Simply Wall St Community estimates place Centerra Gold’s fair value between CA$7.04 and CA$15.00, spanning a wide range of outlooks. But with Mount Milligan’s mine-life extension now in focus, attention turns to whether improved resource visibility can ease market uncertainty about future cash flows.

Explore 7 other fair value estimates on Centerra Gold - why the stock might be worth less than half the current price!

Build Your Own Centerra Gold Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Centerra Gold research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.
• Our free Centerra Gold research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Centerra Gold's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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