Why Centerra Gold (TSX:CG) Is Up 8.7% After Posting Strong Q2 Earnings Growth and Higher Profitability

• Centerra Gold Inc. has announced its second quarter 2025 financial results, revealing sales of US$288.34 million and net income of US$68.57 million, both representing year-over-year gains for the period ended June 30, 2025.
• The company saw a significant increase in basic earnings per share from continuing operations, reaching US$0.33 compared to US$0.18 a year earlier, highlighting improved profitability.
• We'll explore how Centerra Gold's improved second quarter profitability could influence its long-term growth narrative and operational outlook.

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Centerra Gold Investment Narrative Recap

To be a Centerra Gold shareholder, you need to believe in the long-term value of its gold and copper production, the ongoing optimization of major assets like Mount Milligan and Öksüt, and the company’s ability to control costs despite fluctuating production. This quarter’s improved net income and earnings per share are positive, but revised lower gold production guidance tempers the near-term catalyst of higher output, while risks tied to rising costs in Turkey and declining ore grades at key mines remain material.

Alongside these results, Centerra’s decision to complete a technical study for its Goldfield project, showing a US$245 million after-tax NPV and imminent construction, offers an interesting potential offset to production declines, though the benefits remain several years away. These ongoing project developments will be crucial in sustaining revenue and addressing future operational risks.

In contrast, investors should be mindful of rising all-in sustaining costs at Öksüt and how inflationary pressures in Turkey could...

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

Centerra Gold's outlook anticipates $1.4 billion in revenue and $384.2 million in earnings by 2028. This scenario assumes a 5.2% annual revenue growth rate and an increase in earnings of $339.8 million from the current $44.4 million.

Uncover how Centerra Gold's forecasts yield a CA$12.84 fair value, a 25% upside to its current price.

Exploring Other Perspectives

Seven members of the Simply Wall St Community estimate Centerra Gold’s fair value to range widely from US$5 to nearly US$40 per share. While some focus on long-term reserve growth, others caution about the company’s capital needs and cost risks, inviting you to explore these differing perspectives.

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 2 key rewards and 2 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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