CA - Centerra Gold: Valuation Improving After The Drop
2024-02-20 13:49:59 ET
Summary
- Centerra Gold had a strong finish in 2023, with significant free cash flow generation despite a transition year for Mount Milligan.
- Looking ahead to 2024, it should be another solid year with higher gold production from Oksut and Mount Milligan, and reserve growth was positive as well.
- In this update, we'll dig into Centerra's Q4 and FY2023 preliminary results, the 2024 outlook, and how the stock looks relative to peers from a valuation standpoint.
While several sectors finished 2023 on a high note and have added to their gains this year, the Gold Miners Index ( GDX ) has been an anomaly, giving up all of its Q4 gains. This is especially disappointing given that the gold price is a mere 4% off its highs on a daily closing basis, and one has to go back nearly a year to find sentiment as despondent sector-wide. Unfortunately, some of this underperformance can be attributed to weaker than planned production from some of the larger miners and stickier than expected inflationary pressures haven't helped. However, other names like Centerra Gold ( CGAU ) have been quietly adding to already strong balance sheets and working to identify the next project to develop or potentially acquire for their portfolio....
Centerra Gold: Valuation Improving After The Drop