Centerra Gold Inc. (NYSE:CGAU) Q3 2023 Earnings Call Transcript

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Darren Millman: Yeah. So for Q3, Mike, we — all the inventory that was — previous cost built up and cash incurred in previous quarters, that was largely released in Q3. As we get into Q4, we will see some higher cost, processing costs, like true cash cost. But it’s still minimal in the context of the significant inventory buildup. So yeah, less — higher cost, cash cost to convert the inventory compared to the gold and carbon, but still relatively low, and we do expect a reduced overall all-in sustaining cost at Oksut for the final quarter given the — where we’re at year-to-date.

Mike Parkin: Do you have an idea of like in millions of dollars, what the working capital adjustment for Oksut would be roughly for fourth quarter?

Darren Millman: Yeah. If you refer the financials, it’s pretty much all that large increase from inventory level is coming from that movement in Oksut inventory.

Mike Parkin: Okay. Thanks very much, guy.

Operator: [Operator Instructions] Our next question comes from Brian MacArthur of Raymond James. Please go ahead.

Brian MacArthur: Hi. Good morning. So I’d just like to follow-up on the last question. Is there anything in Oksut? Obviously, it had a good quarter, but it looks to me you just got your 80,000 ounces out with the — less than $50 cash remaining costs, started to work through the 200,000. That’s low cost. But is there anything you’ve seen as you operationally start up and work things through that would cause you to be more positive or negative about what you’ve got it for 2024 as far as cash liberation from Oksut?

Darren Millman: Well, I’ll make a general comment and I’ll ask Paul to jump in on some of the more technical details. We remain very bullish on the cash generation potential in Q4 and Q1, Q2 as we draw down those inventories. Thus far, as we noted in our release, it is outperforming our expectations and we don’t have any major reasons to believe that there will be any hiccups. So Paul, you can perhaps elaborate on that.

Paul Chawrun: Yeah. I just think for your model, Brian, we’ve increased the guidance so you can take that for what it is and then we put out the life of mine plan for 2024. And for now, I think you can just use those numbers to run out your model. But we are — it was an excellent startup and we’re very pleased with the operations to date.

Brian MacArthur: Great. Thanks. I mean, just going — I mean, if I remember like the ADR has a capacity, what, 30,000 ounces a month or something. So I mean, obviously, you just liberated all that. But I just want to make sure everything behind that’s ramping up okay too.

Paul Chawrun: October was a very good month. We’re on track.

Brian MacArthur: Perfect. Thank you very much.

Paul Chawrun: The lead [ph] solution grades remain high and they’re going to be coming down as per the plan.

Brian MacArthur: Right. Right. Okay. Great. Thank you very much.

End of Q&A:

Operator: [Operator Instructions] This concludes the question-and-answer session as well as today’s conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

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