How Mount Milligan’s Extended Mine Life and Production Shift at Centerra Gold (TSX:CG) Has Changed Its Investment Story

• Centerra Gold recently released a pre-feasibility study for the Mount Milligan mine, projecting a 10-year extension of mine life to 2045 and a planned 10% throughput increase from 2029, but also revised its 2025 gold production guidance to a lower range of 250,000 to 290,000 ounces.
• The company also announced strong technical results at its Goldfield project in Nevada, accelerating the asset's development as Centerra moves directly to detailed engineering and procurement stages.
• We'll examine how the extension of Mount Milligan’s mine life and revised production outlook shape Centerra Gold's investment narrative moving forward.

Rare earth metals are the new gold rush. Find out which 35 stocks are leading the charge.

Centerra Gold Investment Narrative Recap

To invest in Centerra Gold, you need confidence in its ability to translate mine life extensions and development projects into sustained output and cash flow, despite ongoing operational hurdles. The latest news extending Mount Milligan’s mine life to 2045 bolsters the long-term production narrative, but the downward revision to 2025 gold production reaffirms short-term risk from grade variability, there is no material change to the immediate risk that further resource or guidance disappointments could weigh on sentiment and financial results.

Among recent corporate updates, the release of the Mount Milligan pre-feasibility study is most directly relevant. It extends visibility on future output and supports the company’s multi-asset organic growth pipeline, serving as a foundational element for investors focused on catalysts tied to reserve life and mill throughput expansion.

Yet, despite these positive strides, what investors should watch for is how persistent geological uncertainty at Mount Milligan could still…

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 is based on a forecasted annual revenue growth rate of 9.2% and a projected earnings increase of $31 million from current earnings of $75.3 million.

Uncover how Centerra Gold's forecasts yield a CA$14.62 fair value, a 7% downside to its current price.

Exploring Other Perspectives

Eight fair value estimates from the Simply Wall St Community span from CA$6.78 to CA$17.05 per share, revealing a wide spectrum of opinions. With grade variability risks at Mount Milligan resurfacing in the latest news, it’s clear your view on future resource reliability may shape your expectations as much as any financial model, see how others in the community frame this debate.

Explore 8 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 4 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.

Ready To Venture Into Other Investment Styles?

Opportunities like this don't last. These are today's most promising picks. Check them out now:

• We've found 18 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
• Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.
• The end of cancer? These 28 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com