Centerra Gold Delivers Record Share Buybacks as Operating Cash Surges

2026-11-01 companies

Toronto, Saturday, 31 October 2026.
Centerra Gold achieved $143 million in quarterly operating cash flow and executed a record $53 million in share repurchases, driven by lower costs and strong copper production.

Strong Operational Performance Drives Cash Flow Surge

Centerra Gold Inc. (TSX: CG, NYSE: CGAU) reported a robust third-quarter 2026 performance with $143 million in operating cash flow, up from $329 million for the nine months ended September 30, 2026 [3]. This cash generation reflects the company’s ability to leverage operational consistency at its Mount Milligan and Öksüt mines, where gold production reached 75,429 ounces and copper production hit 12.8 million pounds in Q3 2026 [4][3]. CEO Paul Tomory highlighted that Mount Milligan delivered its fourth consecutive quarter in line with guidance, while Öksüt continued to track within its increased full-year production and cost guidance ranges [4].

The surge in cash flow enabled Centerra to execute a record $53 million in share repurchases during Q3 2026, bringing year-to-date buybacks to $125 million [2][3]. This aggressive capital return strategy underscores the company’s commitment to disciplined capital allocation and shareholder value creation. The repurchase activity was part of the company’s Normal Course Issuer Bid (NCIB) program, which was renewed by the Board of Directors on October 29, 2026, subject to TSX approval [3][5].

Cost Controls and Geopolitical Tailwinds Boost Profitability

Centerra’s cost management initiatives bore fruit in Q3 2026, with all-in sustaining costs (AISC) at Mount Milligan declining sequentially by 22% to $985 per ounce on a by-product basis [2]. The company also benefited from favorable geopolitical developments, particularly in Türkiye, where the corporate income tax rate for the Öksüt mine is set to decrease from 25% to 12.5% effective January 1, 2027 [4]. These factors contributed to adjusted net earnings of $71.8 million, or $0.37 per share, representing an 8% year-over-year increase [3][6].

Future Growth Pipeline Remains On Track

Looking ahead, Centerra’s growth strategy continues to advance with key milestones on the horizon. The Thompson Creek molybdenum restart project is 75% complete and remains on schedule for first production in mid-2027 [2][4]. Meanwhile, the Goldfield project in Nevada is advancing toward expected production in late 2028, with major permits secured for the Gemfield deposit in Q3 2026 [4]. The Kemess Pre-Feasibility Study and Öksüt Life of Mine Optimization study are also progressing, with results expected in mid-2027 and early 2027, respectively [4].

Sources

Gold mining Precious metals