Centerra Gold's Kemess Project Shows Strong Economic Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 05 2025
0mins
Should l Buy CGAU?
Source: Globenewswire
Centerra Gold Inc. saw its stock price rise by 12.59% as it reached a 52-week high amid a broader market decline, with the Nasdaq-100 down 1.49% and the S&P 500 down 1.41%.
The significant price increase is attributed to the updated mineral resource at the Kemess project, which reveals 3.3 million ounces of gold and 1.1 billion pounds of copper, enhancing the project's long-term production potential. Additionally, the preliminary economic assessment indicates a robust after-tax net present value (NPV5%) of $1.1 billion and an internal rate of return (IRR) of 16%, reflecting strong economic leverage as metal prices rise.
This positive development not only supports Centerra's organic growth but also positions the company favorably in a volatile market, highlighting its potential for future profitability as it optimizes project execution and reduces risks.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CGAU?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CGAU
Wall Street analysts forecast CGAU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CGAU is 13.57 USD with a low forecast of 9.10 USD and a high forecast of 18.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
3 Buy
2 Hold
1 Sell
Moderate Buy
Current: 16.460
Low
9.10
Averages
13.57
High
18.00
Current: 16.460
Low
9.10
Averages
13.57
High
18.00
About CGAU
Centerra Gold Inc. is a Canada-based gold mining company focused on operating, developing, exploring and acquiring gold and copper properties in North America, Turkiye, and other markets worldwide. Centerra operates two mines: the Mount Milligan Mine in British Columbia, Canada, and the Oksut Mine in Turkiye. The Company also owns the Kemess Project in British Columbia, Canada, the Goldfield Project in Nevada, United States, and owns and operates the Molybdenum Business Unit in the United States and Canada. The Mount Milligan Mine is an open pit mine located in north central British Columbia, Canada producing a gold and copper concentrate. The Oksut Mine is located approximately 300 kilometers southeast of Ankara in Turkiye and 48 kilometers south of Kayseri, the provincial capital. The Molybdenum BU includes the Langeloth Facility in Pennsylvania and two North American molybdenum mines: the Thompson Creek Mine in Idaho and the 75%-owned Endako Mine in British Columbia.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Spot Silver Continues Decline, Currently Down 6% at $67 per Ounce
- Market Performance: Silver prices have experienced a decline, dropping 6% to $67 per ounce.
- Trend Analysis: The recent downturn in silver prices indicates a potential shift in market dynamics.
See More
Centerra Gold Suspends Operations After Explosion Incident
- Incident Impact: Centerra Gold's stock fell 12% on Friday following an explosion at its Langeloth metallurgical facility in Pennsylvania, which injured four workers, indicating market concerns over safety and operational risks.
- Operations Suspension: The facility's operations were halted due to an uncontrolled chemical reaction, and the company is currently assessing the extent of damage and the potential duration of the shutdown, which will directly impact its molybdenum business.
- Business Impact Assessment: The Langeloth plant is part of Centerra's molybdenum business unit in the U.S. and Canada, and the shutdown could affect production capacity and future earnings, especially against the backdrop of declining precious metal futures.
- Market Reaction: The overall decline in mining stocks, coupled with Centerra Gold's performance, reflects investor concerns regarding the company's operational stability, which may lead to decreased future financing and investor confidence.
See More
Centerra Gold (CGAU) Secures Amended Environmental Assessment for Mount Milligan Mine Operations Through 2035
- Environmental Approval Secured: Centerra Gold announced it has received an amended environmental assessment and related permits, allowing its Mount Milligan mine in British Columbia to operate through 2035, ensuring long-term production capacity and economic benefits.
- Capacity Expansion Plan: The authorization includes a 10% increase in plant throughput starting in 2028 and enhanced stockpile capacity, which will improve feed flexibility and further drive production efficiency and profitability at the mine.
- Expedited Permitting Support: Mount Milligan was selected by the British Columbia provincial government as one of four mining projects eligible for expedited permitting, reflecting the government's commitment to economic development and potentially leading to faster project advancement and investment returns for Centerra Gold.
- Future Development Plans: Centerra Gold is advancing engineering and other studies to support further permit authorizations aimed at extending the mine life to 2045, with a prefeasibility study indicating a $186 million growth capital plan, signaling strong potential for sustainable development in the future.
See More
Centerra Gold Secures Amended Environmental Assessment for Mount Milligan Mine Operations Through 2035
- Environmental Approval Secured: Centerra Gold's Mount Milligan Mine has received an amended environmental assessment and related permits, ensuring operations through 2035, highlighting the project's significance for regional economic development.
- Capacity Expansion Plan: A planned 10% increase in plant throughput starting in 2028, along with enhanced stockpile capacity, will provide greater flexibility in plant feed, thereby improving overall production efficiency.
- Expedited Permitting Project: In January 2025, the Province of British Columbia identified Mount Milligan as one of four mining projects eligible for expedited permitting, underscoring its contribution to local economies and likely attracting further investment.
- Future Development Strategy: Centerra is advancing engineering and other studies to support future permit authorizations, aiming to extend the mine life to 2045, aligning with the strategic goals outlined in the company's Pre-Feasibility Study.
See More
Centerra Gold Secures Extended Permits for Mount Milligan Mine Operations Through 2035 with 10% Capacity Increase
- Environmental Assessment Update: Centerra Gold's Mount Milligan Mine has received an amended environmental assessment and related permits, allowing operations to continue through 2035, ensuring the mine's long-term sustainability.
- Capacity Expansion Plan: Starting in 2028, Mount Milligan will achieve a 10% increase in throughput capacity, enhancing production efficiency and strengthening its competitive position in the market.
- Economic Impact: The extended mine life is expected to provide stable employment for over 1,000 workers and generate hundreds of millions of dollars in economic benefits for surrounding communities and the province, driving development in northern communities.
- Government Support: The British Columbia government expedited the project's permitting process, ensuring economic development while maintaining high environmental and safety standards, demonstrating a commitment to responsible resource development.
See More
Centerra Gold (CGAU) Rises 11.2% as BMO Upgrades to Outperform with $32 Target
- Stock Surge: Centerra Gold's shares rose 11.2% in Tuesday's trading, driven by soaring precious metals futures reaching all-time highs, indicating strong market optimism about its future performance.
- Rating Upgrade: BMO Capital upgraded Centerra's rating from Market Perform to Outperform, raising the price target from $20 to $32, reflecting positive expectations surrounding its Kemess gold-copper project.
- Economic Assessment Results: The preliminary economic assessment for the Kemess project outlines a potential hybrid open pit and underground mining operation with a 15-year life, initial capital of $771 million, an after-tax NPV of $1.1 billion, and an internal rate of return of 16%.
- Strong Financial Position: As of Q3 2025, Centerra holds a cash balance of $562 million with no debt, positioning the company well to internally fund all growth projects, showcasing robust financial health.
See More
Spot Silver Continues Decline, Currently Down 6% at $67 per Ounce
- Market Performance: Silver prices have experienced a decline, dropping 6% to $67 per ounce.
- Trend Analysis: The recent downturn in silver prices indicates a potential shift in market dynamics.
See More
Centerra Gold Suspends Operations After Explosion Incident
- Incident Impact: Centerra Gold's stock fell 12% on Friday following an explosion at its Langeloth metallurgical facility in Pennsylvania, which injured four workers, indicating market concerns over safety and operational risks.
- Operations Suspension: The facility's operations were halted due to an uncontrolled chemical reaction, and the company is currently assessing the extent of damage and the potential duration of the shutdown, which will directly impact its molybdenum business.
- Business Impact Assessment: The Langeloth plant is part of Centerra's molybdenum business unit in the U.S. and Canada, and the shutdown could affect production capacity and future earnings, especially against the backdrop of declining precious metal futures.
- Market Reaction: The overall decline in mining stocks, coupled with Centerra Gold's performance, reflects investor concerns regarding the company's operational stability, which may lead to decreased future financing and investor confidence.
See More
Centerra Gold (CGAU) Secures Amended Environmental Assessment for Mount Milligan Mine Operations Through 2035
- Environmental Approval Secured: Centerra Gold announced it has received an amended environmental assessment and related permits, allowing its Mount Milligan mine in British Columbia to operate through 2035, ensuring long-term production capacity and economic benefits.
- Capacity Expansion Plan: The authorization includes a 10% increase in plant throughput starting in 2028 and enhanced stockpile capacity, which will improve feed flexibility and further drive production efficiency and profitability at the mine.
- Expedited Permitting Support: Mount Milligan was selected by the British Columbia provincial government as one of four mining projects eligible for expedited permitting, reflecting the government's commitment to economic development and potentially leading to faster project advancement and investment returns for Centerra Gold.
- Future Development Plans: Centerra Gold is advancing engineering and other studies to support further permit authorizations aimed at extending the mine life to 2045, with a prefeasibility study indicating a $186 million growth capital plan, signaling strong potential for sustainable development in the future.
See More
Centerra Gold Secures Amended Environmental Assessment for Mount Milligan Mine Operations Through 2035
- Environmental Approval Secured: Centerra Gold's Mount Milligan Mine has received an amended environmental assessment and related permits, ensuring operations through 2035, highlighting the project's significance for regional economic development.
- Capacity Expansion Plan: A planned 10% increase in plant throughput starting in 2028, along with enhanced stockpile capacity, will provide greater flexibility in plant feed, thereby improving overall production efficiency.
- Expedited Permitting Project: In January 2025, the Province of British Columbia identified Mount Milligan as one of four mining projects eligible for expedited permitting, underscoring its contribution to local economies and likely attracting further investment.
- Future Development Strategy: Centerra is advancing engineering and other studies to support future permit authorizations, aiming to extend the mine life to 2045, aligning with the strategic goals outlined in the company's Pre-Feasibility Study.
See More
Centerra Gold Secures Extended Permits for Mount Milligan Mine Operations Through 2035 with 10% Capacity Increase
- Environmental Assessment Update: Centerra Gold's Mount Milligan Mine has received an amended environmental assessment and related permits, allowing operations to continue through 2035, ensuring the mine's long-term sustainability.
- Capacity Expansion Plan: Starting in 2028, Mount Milligan will achieve a 10% increase in throughput capacity, enhancing production efficiency and strengthening its competitive position in the market.
- Economic Impact: The extended mine life is expected to provide stable employment for over 1,000 workers and generate hundreds of millions of dollars in economic benefits for surrounding communities and the province, driving development in northern communities.
- Government Support: The British Columbia government expedited the project's permitting process, ensuring economic development while maintaining high environmental and safety standards, demonstrating a commitment to responsible resource development.
See More
Centerra Gold (CGAU) Rises 11.2% as BMO Upgrades to Outperform with $32 Target
- Stock Surge: Centerra Gold's shares rose 11.2% in Tuesday's trading, driven by soaring precious metals futures reaching all-time highs, indicating strong market optimism about its future performance.
- Rating Upgrade: BMO Capital upgraded Centerra's rating from Market Perform to Outperform, raising the price target from $20 to $32, reflecting positive expectations surrounding its Kemess gold-copper project.
- Economic Assessment Results: The preliminary economic assessment for the Kemess project outlines a potential hybrid open pit and underground mining operation with a 15-year life, initial capital of $771 million, an after-tax NPV of $1.1 billion, and an internal rate of return of 16%.
- Strong Financial Position: As of Q3 2025, Centerra holds a cash balance of $562 million with no debt, positioning the company well to internally fund all growth projects, showcasing robust financial health.
See More
