Centerra Gold Completes Study For Its Goldfield Project, Confirms Attractive Economics

Centerra Gold Inc. (NYSE:CGAU) is one of the Best Gold Mining Companies to Buy Now. On August 6, Centerra Gold Inc. (NYSE:CGAU) announced that it had completed a study for its Goldfield project in Nevada.

Centerra Gold’s study of its Goldfield project confirms attractive economics for the project. This includes an after-tax net present value of $245 million and an after-tax internal rate of return of 30%, considering a long-term gold price of $2,500 per ounce. The study also considered the impact of gold hedges on a portion of production in 2029 and 2030.

Aerial view of modern machinery operating in a gold mining site.

“Favourable gold prices combined with these recent developments have improved the Project’s economics, enabling us to move forward with execution. We believe Goldfield is well-positioned to deliver strong returns. The project is expected to be funded from Centerra’s existing liquidity and is located in a top tier mining jurisdiction, with an approximate 7-year mine life, average annual gold production of around 100,000 ounces in peak production years at an all-in sustaining cost (AISC) of approximately $1,392 per ounce, and a competitive initial capital cost of about $250 million,” said, President and CEO, Paul Tomory.

Centerra is proceeding with the project and will immediately initiate detailed engineering and procurement activities for construction. The company expects first production from Goldfield by the end of 2028.

Centerra Gold Inc. (NYSE:CGAU) is a gold mining company that engages in exploration, development, operation, and acquisition of gold and copper properties worldwide.

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Disclosure: None. This article is originally published at Insider Monkey.