BofA-Centerra Gold Q125 results：EPS in-line to consensus and 2025 guidance held despite softer Q1-20250506

Kemess a potential capital allocation priority

Centerra Gold (CG) reported Q1’25 adjusted EPS that was in line with consensus. Reportedproduction numbers were below forecasts (though sales exceeded production), and cashcosts skewed higher. Full-year 2025 guidance was maintained despite a soft start. Netcash declined as capital return (via the dividend and share buybacks) was prioritized. Anupdated resource estimate on the Kemess property increased the total (measured andindicated + inferred) contained gold resource by 9% to nearly 5 million ounces (Moz);contained copper was unchanged at 813 thousand tonnes. A preliminary economicassessment (PEA) on a potential restart is to be complete by year-end. Grades are very low(at 0.38 grams per tonne gold and 0.20% copper) but current commodity prices, existinginfrastructure, and cheap power could make it work. We maintain our Underperform ratingwhich considers CG’s short reserve life and light relative project pipeline in gold.