Centerra Gold Inc. (NYSE:CGAU) Q3 2022 Earnings Call Transcript

Paul Wright: Yes. Look I couldn’t deal with the front part of those questions. And Darren, perhaps you can deal with the last element, because I am not quite familiar with Sojitz or these sorts of people. Look, I mean we are in the phase of really pulling together the information and generating additional information, identifying what additional work needs to be done as it relates to technical studies, to put ourselves in a position where we can critically assess the options that are available to us. Win the Moly business, particularly in the context of what we have seen as strengthening Moly prices. It is not €“ this is not an imminent decision making process. And certainly it would not be €“ it would be unlikely that we will be making any significant decisions on the Moly business prior to a new CEO, who would obviously take ownership of those decisions.

So, that’s the decision most likely made by my successor. But I think it behooves us at this point, to have a more fulsome understanding of what indeed are the options for the business and whether or not ultimately the company decides to push forward the ways off.

Darren Millman: And just to clarify a bunch of this. The Thompson Creek Mine is 100% owned by Centerra, which is the mine under review. The Endako mine is the 75% owned by Centerra and 25% owned by Endako and that isn’t being progressed to the same extent as the Thompson Creek Mine.

Brian MacArthur: Great. Thank you very much.

Operator: Thank you. Our next question comes from the line of Lawson Winder with Bank of America Securities. Please proceed with your question.

Lawson Winder: Hello. Good morning and thank you for the update. I first wanted to ask about the sustaining CapEx guidance, which was reiterated for 2022. With the implication being a pretty substantial step up in the fourth quarter, would be helpful if you could just walk through some of the items that are driving that spend. Thank you.

Darren Millman: Yes. Hi. So, it’s Darren here. I think we €“ if you look at the guidance, you actually know that it’s we do note that it’s going to be at the lower end. So, it’s, there is nothing significant individually on that. But we do expect to be more on the lower end. If you look at our disclosure in the outlook comparative between year-to-date and going forward, you will note that specific guidance, but there is nothing of real substance in there.

Lawson Winder: Okay. Even the low end is higher, but I guess what you are saying is just a mix of things?

Darren Millman: No. There is nothing one €“ there is no individual, Öksüt flagged as no. We did the big shutdown in Q3 for Mount Milligan. So, we are not expecting any large shutdowns in that quarter. So, yes, it’s just really just business as usual would sort of call it catch up from the 2022 guidance.

Lawson Winder: Okay. I also wanted to ask about the Mount Milligan costs. So, we are expecting an update on €˜23, 2025 operating costs when you release your guidance in January. Could you give us an idea of where cost per ton was in Q3, particularly, both on the mining side and on the milling side? And then sort of where you are seeing inflationary pressures and where there might be offsets, for example, like with the Canadian dollar? Thanks.