CAGDF - Centerra Gold: A Softer Guide For FY2021

• Centerra Gold released its Q4 and FY2020 results last week, reporting a 5% increase in gold production to 824,100~ ounces.
• Given the stronger gold price in the period, all-in sustaining cost margins soared to $941/oz, driving significant growth in free cash flow year-over-year.
• Looking ahead, FY2021 is expected to be a softer year for the company, but growth should resume with Oksut mining much higher grades, and benefiting an expanded heap-leach facility.
• There's no question that Centerra is one of the cheapest miners in the sector trading at barely 7x FY2021 free cash flow estimates, but with nearly 60% of gold production from the Kyrgyz Republic, I continue to see the stock as high-risk, high-reward.

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