Strategic Plan For US Molybdenum Operations And Restart Of Thompson Creek Mine - Ramp-Up Of Langeloth

TORONTO - Centerra Gold Inc. reported on its Thompson Creek feasibility study, including a strategic, integrated business plan for its Molybdenum Business Unit (MBU) consisting of a restart of the Thompson Creek Mine and a commercially optimized plan for the Langeloth Metallurgical Facility, collectively the US Molybdenum Operations (US Moly).

President and CEO, Paul Tomory, commented, “Over the last year, we have developed a value-enhancing strategy for Centerra’s US molybdenum operations, centered around the vertical integration of Thompson Creek and Langeloth, and supported by strong molybdenum market fundamentals. The combined US Moly business is expected to produce an after-tax net present value (8%) (NPV8%) of $472 million. A key contributor to this value is Langeloth, which at full capacity, integrated with Thompson Creek, has the potential to generate robust annual EBITDA. We announced the decision to unlock significant value through the restart of operations at Thompson Creek and a progressive ramp-up of production at Langeloth. When Thompson Creek begins production, currently targeted for the second half of 2027, it will provide additional high-grade, high-quality feed to Langeloth, enabling a ramp-up of production towards Langeloth’s full annual capacity of 40 million pounds while improving operational flexibility to meet market demand.

We completed a feasibility study at Thompson Creek that has confirmed the capital estimate from the pre-feasibility study, while adding another year of production. Following significant progress on permitting efforts in the second quarter 2024, we have pivoted from a two-phased approval to a single-phase capital investment of $397 million over three years, from now through mid-2027. Our total project costs guidance at Thompson Creek for the second half of 2024 is expected to be $55 to $65 million. We will provide 2025 guidance for Thompson Creek with our annual guidance that is expected to be published early next year.

We are continuing to explore strategic options to unlock the full potential of our molybdenum business, in line with Centerra’s strategy to maximize the value of each asset in our portfolio. While Centerra expects to remain a gold-focused company, we acknowledge the significant value of our base metal assets.”