Centerra Gold Inc (CGAU) 2023 Q1 法說會逐字稿

Greetings, and welcome to the Q1 2023 Results Conference Call. (Operator Instructions) As a reminder, today's call is being recorded on Monday, May 15, 2023.

您好，歡迎參加 2023 年第一季度業績電話會議。 （操作員說明）謹此提醒，今天的通話錄音時間為 2023 年 5 月 15 日星期一。

I would now like to turn the conference over now to Toby Caron, Treasurer and Director of Investor Relations. Please go ahead.

我現在想將會議交給財務主管兼投資者關係總監托比·卡倫 (Toby Caron)。請繼續。

Thank you, operator. Welcome to Centerra Gold's First Quarter 2023 Results Conference Call. Please note that presentation slides are available on Centerra Gold's website to accompany each speaker's remarks. Today's call is open to all members of the investment community and media in listen-only mode. Following the formal remarks, the operator will give the instructions for asking a question, and then we'll open the phone line to questions. Please note that all figures are in U.S. dollars unless otherwise noted.

謝謝你，接線員。歡迎參加 Centerra Gold 2023 年第一季度業績電話會議。請注意，Centerra Gold 網站上提供了演示幻燈片，附有每位演講者的發言。今天的電話會議以僅供收聽的模式向投資界和媒體的所有成員開放。正式發言後，接線員將給出提問說明，然後我們將開通電話線路供提問。請注意，除非另有說明，所有數字均以美元為單位。

Joining me on the call today are Michael Parrett, Chair of the Board of Directors; Paul Tomory, President and Chief Executive Officer; Paul Wright, Director and former Interim President and Chief Executive Officer; and Darren Millman, Chief Financial Officer. Our Chief Operating Officer, Paul Chawrun, is traveling and unable to attend.

今天和我一起參加電話會議的是董事會主席 Michael Parrett；保羅·托莫里 (Paul Tomory)，總裁兼首席執行官； Paul Wright，董事、前臨時總裁兼首席執行官；和首席財務官達倫·米爾曼。我們的首席運營官 Paul Chawrun 正在出差，無法出席。

I would like to caution everyone that certain statements made today may be forward-looking statements and as such, are subject to known and unknown risks, which may cause our actual results to differ from those expressed or implied. Also, certain of the measures we will discuss today are non-GAAP measures. Please refer to the description of non-GAAP measures in our news release and MD&A issued this morning. For a more detailed discussion of the material assumptions, risks and uncertainties, please refer to our news release and MD&A along with the unaudited financial statements and notes and all of our other filings, which can be found on SEDAR, EDGAR and on the company's website at centerragold.com.

我想提醒大家，今天發表的某些陳述可能是前瞻性陳述，因此會受到已知和未知風險的影響，這可能導致我們的實際結果與明示或暗示的結果有所不同。此外，我們今天將討論的某些措施是非公認會計準則措施。請參閱我們今天上午發布的新聞稿和 MD&A 中對非 GAAP 措施的描述。有關重大假設、風險和不確定性的更詳細討論，請參閱我們的新聞稿和 MD&A 以及未經審計的財務報表和註釋以及我們所有其他文件，這些文件可以在 SEDAR、EDGAR 和公司網站上找到在centerragold.com。

And now I'll turn the call over to Mike.

現在我將把電話轉給邁克。

Thank you, Toby, and good morning, everyone, and thanks for joining our call this morning.

謝謝托比，大家早上好，感謝您今天早上加入我們的電話會議。

My purpose here today is twofold. First, on behalf of the Board and all shareholders, I'd like to express our appreciation to Paul Wright for his leadership of Centerra as the Interim President and CEO over the past 8 months. As you know, Paul was appointed to the position in September of last year. And since then, he's been extremely busy.

我今天來這裡的目的有兩個。首先，我謹代表董事會和所有股東，對 Paul Wright 在過去 8 個月裡作為臨時總裁兼首席執行官對 Centerra 的領導表示感謝。如您所知，保羅於去年九月被任命為該職位。從那時起，他就變得異常忙碌。

Under Paul's leadership at the Öksüt Mine, we completed the construction of the retrofit of the ADR plant. We've obtained several important outstanding permits. We filed a new environmental impact assessment, and we've advanced materially towards the restart of operations.

在 Öksüt 礦山 Paul 的領導下，我們完成了 ADR 工廠的改造建設。我們已經獲得了幾項重要的未決許可證。我們提交了新的環境影響評估，並在重啟運營方面取得了實質性進展。

At the Mount Milligan Mine, during his tenure, we completed a new life of mine plan, which extended the life of Mount Milligan by 4 years until 2033. From a business perspective, Paul streamlined the corporate organization. He's actively been engaged communicating with our shareholders, the approach to our near-term challenges and outlining the strategy of growth as we move forward. During this time, we also implemented a normal course issuer bid, which has provided us with a second option for returning cash to shareholders. And Paul also has provided great insight and assistance to our new CEO, while he goes through his onboarding process. Paul has now returned to his role as independent director of Centerra and shareholders will continue to benefit from his experience, insight and input at the Board.

在米利根山礦，在他任職期間，我們完成了礦山的新壽命計劃，將米利根山的壽命延長了4年，直到2033年。從商業角度來看，保羅精簡了公司組織。他積極與我們的股東溝通，討論我們應對近期挑戰的方法，並概述我們前進的增長戰略。在此期間，我們還實施了正常的發行人要約，這為我們向股東返還現金提供了第二種選擇。保羅在我們新任首席執行官的入職流程中也為他提供了深刻的見解和幫助。 Paul 現已重新擔任 Centerra 獨立董事，股東將繼續受益於他在董事會的經驗、洞察力和投入。

My second important duty this morning is to welcome Paul Tomory, as Centerra's new President and CEO. Paul started with Centerra on May 1 of this year. Many of you already know him. But for those who do not, he brings over 25 years of experience in mining, engineering, construction and corporate development. With his extensive technical background of proficiency, we are confident that Paul Tomory is the right leader for the company. This is an important stage for Centerra and its journey as a company, and we are delighted to have Paul join us at this time.

今天早上我的第二項重要職責是歡迎 Paul Tomory 擔任 Centerra 的新任總裁兼首席執行官。 Paul 於今年 5 月 1 日開始在 Centerra 工作。你們中的許多人已經認識他了。但對於那些不知道的人來說，他帶來了超過 25 年的採礦、工程、建築和企業發展經驗。憑藉其廣泛而熟練的技術背景，我們相信 Paul Tomory 是公司的正確領導者。這是 Centerra 及其公司發展歷程的重要階段，我們很高興 Paul 此時加入我們。

Welcome, Paul. And with that, I'll turn the call over to you.

歡迎，保羅。這樣，我會將電話轉給您。

Thanks very much, Mike, and good everyone. It's only been a couple of weeks but having spent time with our corporate and site teams and having had a chance to visit Mount Milligan, I'm excited for the future of the company. Over the weeks and months ahead, I look forward to visiting Öksüt and our U.S. assets as well as engaging with our many shareholders and other stakeholders.

非常感謝，邁克，大家好。雖然只有幾週時間，但與我們的公司和現場團隊共度了時光，並有機會參觀了米利根山，我對公司的未來感到興奮。在未來的幾周和幾個月裡，我期待著訪問 Öksüt 和我們的美國資產，並與我們的眾多股東和其他利益相關者進行接觸。

I know a lot of our investors and analysts are eager to hear what the strategy is going forward. And given my brief time in the seat, I can offer a road map of what the company's short-term focus will look like over the next 100 days or so, here's some of those highlights. First and foremost, our top priority will remain a focus on safe and environmentally responsible operations. Next, we will continue to drive operational and technical improvements in Mount Milligan with a focus on delivering the newly optimized life of mine plan. Finally, pending regulatory approval, we expect to ramp up safe and environmentally compliant operations at Öksüt and realize near-term cash flow through the drawdown of accumulated inventories.

我知道我們的很多投資者和分析師都渴望了解該戰略的未來發展。鑑於我任職的時間很短，我可以提供一份路線圖，說明公司在未來 100 天左右的短期重點將是什麼樣子，以下是其中的一些亮點。首先也是最重要的，我們的首要任務仍然是關注安全和對環境負責的運營。接下來，我們將繼續推動米利根山的運營和技術改進，重點是交付新優化的礦山計劃壽命。最後，在等待監管部門批准的過程中，我們預計將加強 Öksüt 的安全和環保合規運營，並通過減少累積庫存來實現近期現金流。

Shifting to our development assets in light of strong molybdenum prices and an assessment of profitability and cash flow potential in Langeloth. Our objective is to advance an articulated strategy for the entire molybdenum business. At Goldfield in Nevada, we will continue to advance technical studies and exploration work, with the objective of delivering an initial resource by the middle of 2023. And finally, we will advance study work at Kemess with the objective of determining the asset's position in the overall portfolio.

鑑於鉬價強勁以及對蘭格洛特盈利能力和現金流潛力的評估，轉向我們的開發資產。我們的目標是為整個鉬業務制定明確的戰略。在內華達州 Goldfield，我們將繼續推進技術研究和勘探工作，目標是在 2023 年中期之前提供初始資源。最後，我們將推進 Kemess 的研究工作，目標是確定該資產在整體投資組合。

Moving on to the quarter. The company reported a first quarter production of 33,000 ounces of gold and copper production of 13 million pounds. The production results were impacted by several factors, mainly driven by lower grade due to plant sequencing and mine, lower plant throughput due to a planned maintenance shutdown and issues surrounding the handling of material throughout the winter months. Darren will speak in more detail as to the Mount Milligan results and provide an update on the Öksüt Mine later in the call.

繼續看季度。該公司公佈第一季度黃金產量為 33,000 盎司，銅產量為 1,300 萬磅。生產結果受到多種因素的影響，主要是由於工廠排序和採礦導致的品位較低、計劃內的維護停工導致的工廠吞吐量降低以及整個冬季材料處理的問題。達倫 (Darren) 將更詳細地介紹 Mount Milligan 的結果，並在稍後的電話會議中提供 Öksüt 礦的最新情況。

The company continues to evaluate strategic options for the molybdenum business, including a potential restart of the Thompson Creek Mine based on the long-term outlook for strengthening molybdenum prices. As mentioned, I intend to visit the moly assets in the coming weeks and look forward to learning more about the operations. Meanwhile, the work being done on [PFS] for a potential restart of the Thompson Creek Mine is on track.

該公司繼續評估鉬業務的戰略選擇，包括根據鉬價格走強的長期前景重新啟動 Thompson Creek 礦。如前所述，我打算在未來幾週內參觀鉬資產，並期待了解有關運營的更多信息。與此同時，湯普森溪礦可能重新啟動的 [PFS] 工作正在按計劃進行。

At the Goldfield project, drilling was significantly advanced in the first quarter and the company expected to deliver an initial resource by midyear. There are a number of ESG initiatives that Centerra is working on as I continue to grow my knowledge and understanding of all the good work underway, I'll certainly be able to provide more detail. That said, today, I will touch on a few highlights. First, as mentioned, is safety. A number of sites achieved safety milestones this quarter. Mount Milligan achieved 1 million hours without an LTI and Thompson Creek achieved 1 year without a reportable. Second, after having completed the full rollout of the responsible gold mining principles last year, Centerra is on track to receive its full conformance report, which will be integrated into this year's annual ESG report. And finally, Centerra continues to make progress on the development of its climate strategy, aligned with the recommendations from the task force on climate change -- climate-related financial disclosures.

Goldfield 項目的鑽探工作在第一季度取得了顯著進展，該公司預計將在年中之前交付初始資源。 Centerra 正在開展許多 ESG 舉措，隨著我對正在進行的所有出色工作的了解和理解的不斷增長，我當然能夠提供更多細節。也就是說，今天我將談談一些亮點。首先，如前所述，是安全。本季度許多站點實現了安全里程碑。 Mount Milligan 在沒有 LTI 的情況下實現了 100 萬小時，而 Thompson Creek 在沒有報告的情況下實現了 1 年。其次，在去年全面推出負責任金礦開採原則後，Centerra 有望收到其完整的合規性報告，該報告將被納入今年的年度 ESG 報告中。最後，Centerra 根據氣候變化工作組的建議（與氣候相關的財務披露），繼續在製定其氣候戰略方面取得進展。

And with that, I'll pass the call over to Darren to walk through our operational and financial highlights.

接下來，我將把電話轉給達倫，讓他介紹一下我們的運營和財務亮點。

Thanks, Paul, and good morning, all. For those following on from the WebEx, we initially speak to Slide 8. The Mount Milligan Mine produced 33,215 gold ounces and 13.4 million pounds of copper. Due to mine sequencing, the first half of the year was expected to be lower-grade ore with Q1 being the lowest and higher grades are expected in the second half of the year.

謝謝保羅，大家早上好。對於那些關注 WebEx 的人，我們首先討論幻燈片 8。米利根山礦生產了 33,215 盎司金和 1340 萬磅銅。根據礦山排序，預計上半年礦石品位較低，其中 Q1 礦石品位最低，下半年礦石品位較高。

There were, however, several additional factors that impacted Mount Milligan's production in the first quarter. Phases 7 and 9 are on the outer edges of the ore body with the transitional zone between oxide and sulfide ore was larger than expected, resulting in lower grades and lower grade stockpile required in its place. The lower grade ore caused lower metal recoveries, and we encountered some material handling challenges in the plant throughput in the winter months. We are currently transitioning deeper in the transitional zone in these areas, we do not expect this to continue. There was also a planned mill shutdown in February, and our next major shut will occur in August.

然而，還有幾個其他因素影響了 Mount Milligan 第一季度的產量。第 7 期和第 9 期位於礦體的外邊緣，氧化物礦和硫化礦之間的過渡帶比預期大，導致其品位較低，且需要較低品位的礦堆。較低品位的礦石導致金屬回收率較低，我們在冬季的工廠吞吐量中遇到了一些材料處理挑戰。我們目前正在這些地區的過渡區進行更深層次的過渡，我們預計這種情況不會持續下去。 2 月份工廠還計劃停產，我們的下一次大規模停產將在 8 月份進行。

You will note in the bottom table, far right column, the column head grades was 0.17% in the quarter, a 10% decrease from the fourth quarter of 2022. The gold -- the gold head grades process was 0.34 grams per tonne, a 28% decrease in grade compared to the third quarter of 2022. On a positive note, the mine material movement was on plan, and as a result, we remain on track to access the higher-grade copper and gold ore in the second half of the year.

您會注意到，在底部表中，最右欄，本季度的欄頭品位為 0.17%，較 2022 年第四季度下降 10%。黃金——黃金頭品位過程為每噸 0.34 克，與 2022 年第三季度相比，品位下降 28%。從積極的方面來看，礦山材料的運輸正在按計劃進行，因此，我們仍有望在 2022 年下半年獲得更高品位的銅礦石和金礦石那一年。

In Q1, the Mount Milligan team mined 11.3 million tonnes of material, an 11% increase compared to Q4 2022. Due to lower than planned metal production during the first quarter, we now expect the 2023 gold production to be near the low end of guidance, while 2023 copper production is tracking towards the midpoint of guidance. As mentioned earlier, Mount Milligan Mine's 2023 gold production and copper production is expected to be back-end weighted, driving a higher proportion of concentrate sales in the fourth quarter of 2023. The company anticipates that approximately 30% to 35% of concentrate sales will occur in the fourth quarter of 2023.

第一季度，Mount Milligan 團隊開采了 1130 萬噸材料，與 2022 年第四季度相比增加了 11%。由於第一季度金屬產量低於計劃，我們現在預計 2023 年黃金產量將接近指導值的低端，而 2023 年銅產量正朝著指導值的中點前進。如前所述，Mount Milligan 礦 2023 年黃金產量和銅產量預計將進行後端加權，推動 2023 年第四季度精礦銷售比例提高。該公司預計約 30% 至 35% 的精礦銷售將發生在 2023 年第四季度。

In Q1, cash provided by -- and free cash flow from mine operations was $28 million and $25 million, respectively. Gold production cost was $1,124 per ounce and all-in sustaining costs on a byproduct basis was $914 per ounce. On the exploration front, we continued drilling and anticipate an updated resource this year that will include assay results from nearly 50,000 meters completed in 2022.

第一季度，礦山運營提供的現金和自由現金流分別為 2800 萬美元和 2500 萬美元。黃金生產成本為每盎司 1,124 美元，按副產品計算的總維持成本為每盎司 914 美元。在勘探方面，我們繼續鑽探，並預計今年會更新資源，其中將包括 2022 年完成的近 50,000 米的化驗結果。

I'll now be speaking to Slide 9. On Slide 9, we provide an operational update for the Öksüt Mine. The regulatory review of the Öksüt Mine's EIA remains on track. The company completed its technical review meeting with local authorities at the end of March and posted its EIA for public comment in late April with no significant comments received. With all the review steps now complete, the EIA has been submitted for final ministry approval. The mercury abatement retrofit at the ADR plant was completed in January. This system was tested in March under the supervision of Turkish authorities. 2023 mining activities at Öksüt will be focused on Phase 5 wall pushback to expand the Keltepe pit and continuation of mining in the Keltepe pit. Waste stripping was also restarted in the quarter, which is to be capitalized. As at March 2023, all processed into stored gold-in-carbon inventory is approximately 100,000 recoverable ounces with an estimate an additional 200,000 recoverable ounces on the heap leach pad and in stockpiles.

我現在將談論幻燈片 9。在幻燈片 9 上，我們提供了 Öksüt 礦的最新運營情況。 Öksüt 礦環境影響評估的監管審查仍在進行中。該公司於 3 月底完成了與地方當局的技術審查會議，並於 4 月底發布了環境影響評估以徵求公眾意見，但沒有收到任何重要意見。所有審查步驟現已完成，環境影響評估已提交給部門最終批准。 ADR 工廠的汞減排改造已於 1 月份完成。該系統於三月份在土耳其當局的監督下進行了測試。 Öksüt 2023 年的採礦活動將集中於第五階段的圍牆推回以擴大 Keltepe 礦坑並繼續在 Keltepe 礦坑採礦。本季度還重新啟動了廢物剝離，並將予以資本化。截至 2023 年 3 月，所有加工成儲存的碳包金庫存約為 100,000 盎司可回收盎司，估計堆浸墊和庫存中還有 200,000 盎司可回收盎司。

I'll be now speaking to Slide 11. Centerra recorded $226 million in net revenue during the quarter, consisting of the Mount Milligan Mine and Molybdenum Business Unit. No revenue was recorded at the Öksüt Mine. At the Mount Milligan Mine, gross gold sales and copper sales were $56 million and $52 million, respectively. In the quarter, Mount Milligan sold 38,990 ounces of gold and 15.3 pounds of copper. The average realized price was $1,446 per ounce of gold and $3.42 per pound of copper. This incorporates the existing stream over the Mount Milligan Mine. The cost associated with the Öksüt store gold-in-carbon inventory is approximately $450 per ounce, which has been capitalized to the current asset within inventory. At the Molybdenum Business Unit, approximately 3.3 million pounds of molybdenum was sold, generating $116 million with an average market price of $32.95 per pound of molybdenum.

我現在將在幻燈片 11 上發言。Centerra 在本季度錄得 2.26 億美元的淨收入，其中包括 Mount Milligan 礦山和鉬業務部門。 Öksüt 礦沒有記錄任何收入。 Mount Milligan 礦的黃金銷售總額和銅銷售總額分別為 5,600 萬美元和 5,200 萬美元。本季度，Mount Milligan 出售了 38,990 盎司黃金和 15.3 磅銅。黃金的平均實現價格為每盎司 1,446 美元，銅的平均實現價格為每磅 3.42 美元。這包括了米利根山礦上的現有溪流。 Öksüt 商店碳金庫存的相關成本約為每盎司 450 美元，已資本化為庫存中的流動資產。鉬業務部銷售了約 330 萬磅鉬，創收 1.16 億美元，平均市場價格為每磅鉬 32.95 美元。

I'll now be speaking to Slide 12. The net loss from continued operations was $73 million in the quarter with $53 million in adjusted net loss recorded. The earnings in the quarter attributable to operations were $9 million positive contribution from the Mount Milligan Mine. As noted earlier, lower production in Q1 as expected compared to preceding quarters and minimal operating capital expenditure to the construction tailing storage facility. A $10.8 million loss from the Mount Milligan Mine was recorded, including $7.8 million in standby costs, $26.3 million loss from Molybdenum Business Unit was recorded and $11.7 million in evaluation costs of gold was recorded with the front-end expenditure as we plan to deliver a mineral resource update midyear. For the quarter, there were 2 adjusting items, reclamation expense and care and maintenance costs of $15 million associated with underlying rehabilitation and discount rates applied, a $5 million tax expense resulting from the introduction of a onetime tax levered by the Turkish government on taxpayers eligible to certain investments -- significant benefits in 2022.

我現在將講幻燈片 12。本季度持續運營帶來的淨虧損為 7,300 萬美元，其中調整後淨虧損為 5,300 萬美元。本季度運營收益來自 Mount Milligan 礦的積極貢獻為 900 萬美元。如前所述，與前幾個季度相比，第一季度的產量低於預期，並且建設尾礦儲存設施的運營資本支出也降至最低。 Mount Milligan 礦的損失為 1,080 萬美元，其中包括 780 萬美元的備用成本，鉬業務部門的損失為 2,630 萬美元，黃金評估成本為 1,170 萬美元，計入前端支出，因為我們計劃交付年中礦產資源更新。本季度有 2 個調整項目，即與基礎修復和應用折扣率相關的 1500 萬美元的開墾費用以及護理和維護費用，由於土耳其政府對符合資格的納稅人引入一次性稅收而產生的 500 萬美元的稅收費用某些投資——2022 年將獲得顯著收益。

Production costs capitalized to the storage facility step out in the first quarter was only $300,000, which is on the lower end than usual quarter due to timing of step-out activities. The company expects total production costs capitalized to the TSF for the full year to be in the range of $12 million to $14 million as a step-out activity return to more normal levels in future quarters.

第一季度退出存儲設施的生產成本僅為 300,000 美元，由於退出活動的時間安排，該成本低於平常季度的水平。該公司預計，隨著未來幾個季度的逐步退出活動恢復到更正常的水平，全年 TSF 資本化的總生產成本將在 1200 萬至 1400 萬美元之間。

Now be speaking to Slide 13. Cash used in operating activities by operations was approximately $100 million for the quarter and $105 million free cash flow deficit in the quarter. During the quarter, the Molybdenum Business Unit used $76 million in cash. This was primarily a buildup of working capital of $66 million. The increase in working capital was driven by both an additional 0.8 million molybdenum pound held in inventory at the end of March together with an underlying average molybdenum price increasing to $32.95 in Q1 compared to $21.49 in Q4 2022, representing a 53% increase in underlying price.

現在看幻燈片 13。本季度運營活動中使用的現金約為 1 億美元，本季度自由現金流赤字為 1.05 億美元。本季度，鉬業務部門使用了 7600 萬美元現金。這主要是 6600 萬美元的營運資金積累。營運資金的增加是由於 3 月底庫存增加 80 萬磅，以及第一季度鉬的基本平均價格從 2022 年第四季度的 21.49 美元上漲至 32.95 美元，意味著基本價格上漲了 53% 。

As noted in the MD&A, the Mount Milligan Mine recognized $28 million in free -- in positive operating cash flow and $25 million in free cash flow for the quarter. Given those sales occurring in the Öksüt Mine in the quarter with operations using $24 million of treasury. This was in line with guidance of $7 million to $10 million in cash expenditures per month until operations recommenced. As you will see in the graph on the lower right table, total working capital balance at the end of the quarter was $255 million, a $60 million increase compared to the end of December 2022.

正如 MD&A 中所述，米利根山礦本季度確認了 2800 萬美元的自由現金流和 2500 萬美元的自由現金流。鑑於本季度 Öksüt 礦的銷售情況，運營使用了 2,400 萬美元的資金。這與重新開始運營之前每月 700 萬至 1000 萬美元現金支出的指導一致。正如您在右下表的圖表中看到的那樣，本季度末的總營運資金餘額為 2.55 億美元，比 2022 年 12 月末增加了 6000 萬美元。

As discussed earlier, this is a material -- this is materially driven by the increase in the Molybdenum Business Unit. We expect this to reduce to normalized levels if current molybdenum prices stay stable in Q2 and Q3 of this year. The company has exited Q1 with a cash balance of $412 million and over $800 million of liquidity. Given our strong financial position, the Board declared a quarterly dividend of $0.07 per share.

正如前面所討論的，這是一種材料——這在很大程度上是由鉬業務部門的增長推動的。如果當前鉬價在今年第二季度和第三季度保持穩定，我們預計這一價格將降至正常水平。截至第一季度，該公司的現金餘額為 4.12 億美元，流動資金超過 8 億美元。鑑於我們強勁的財務狀況，董事會宣布派發每股 0.07 美元的季度股息。

Finally, I would like to end by thanking Toby Caron, our Director of IR. At the start of 2022, Toby took on both Treasury and IR responsibilities. 2022 was extremely busy year at Centerra as the company transitioned away from the [KR]. His commitment to both the company and responsiveness to analysts and shareholders was highly commendable while continue to oversee treasury. Toby continues to be a key member of engagement team and now be focusing on treasury and risk management strategies of the company. At this time, I'd also like to welcome Lisa Wilkinson, our new VP of IR and Corporate Communications. That concludes our prepared remarks.

最後，我要感謝我們的 IR 總監 Toby Caron。 2022 年初，托比承擔了財務和投資者關係的職責。隨著公司從 [KR] 轉型，2022 年對 Centerra 來說是極其忙碌的一年。在繼續監督財務的同時，他對公司的承諾以及對分析師和股東的回應受到高度讚揚。托比仍然是參與團隊的關鍵成員，現在專注於公司的財務和風險管理策略。此時，我還要歡迎我們新任投資者關係和企業傳播副總裁麗莎·威爾金森 (Lisa Wilkinson)。我們準備好的發言到此結束。

Moderator, please open the call for questions.

主持人，請打開提問環節。

(Operator Instructions) And our first question on the line is from Mike Parkin with National Bank.

（操作員說明）我們的第一個問題來自國家銀行的邁克·帕金（Mike Parkin）。

Can you just speak to some of the moving parts that resulted in the OpEx reported at Langeloth being up significantly kind of $30-plus million quarter-over-quarter [while] noticing it was kind of like 88% in the fourth quarter. You've noticed it's been climbing. Is it -- just any kind of color in terms of what's driving that and where you would expect it to kind of trend going forward?

您能否談談導致 Langeloth 報告的運營支出環比大幅增長 30 多萬美元的一些變化因素，同時注意到第四季度運營支出增長了 88%。你已經註意到它一直在攀登。是不是任何一種顏色，就其驅動因素以及您期望它的未來趨勢而言？

Mike, it's Darren. Thanks for the question. When you look at Q4 2022, the same -- the inventory levels remain relatively the same. We did have a $0.8 million increase in inventory. But the big driver is purely price. For -- molybdenum topped in Q4, approximately $38 a pound. It's come down to [22]. We do a mark-to-market at the end of every quarter. So we see that being released in Q2 and in Q3. So we don't see it continuing on. We've given guidance in our disclosures for the Molybdenum Business Unit or the total business unit range between $45 million to $80 million. So that -- that large range represents basically gone from $20 to up to $35 a pound. So it's important just to highlight that Langeloth is really the business unit that has these swings. And unfortunately, we can't -- we can't lock in hedging for that. So as part of our -- it's great when moly prices are up, and obviously, it makes the economics more attractive looking at the underlying business unit of Thompson Creek, but it does impact our working capital at Langeloth itself. As part of the review that we're looking to present to the market in Q3, we'll be looking to see whether we need to make some changes also at Langeloth.

邁克，這是達倫。謝謝你的提問。當你看看 2022 年第四季度時，你會發現同樣的情況——庫存水平保持相對相同。我們的庫存確實增加了 80 萬美元。但最大的推動因素純粹是價格。鉬價在第四季度達到頂峰，約為每磅 38 美元。它歸結為[22]。我們在每個季度末按市值計價。所以我們看到它在第二季度和第三季度發布。所以我們看不到它繼續下去。我們在鉬業務部門或整個業務部門的披露中給出了指導，範圍在 4500 萬美元至 8000 萬美元之間。所以，這個大範圍基本上是從每磅 20 美元漲到了 35 美元。因此，重要的是要強調 Langeloth 確實是具有這些波動的業務部門。不幸的是，我們不能——我們不能為此鎖定對沖。因此，作為我們的一部分——當鉬價格上漲時，這很好，顯然，從湯普森溪的基礎業務部門來看，它使經濟更具吸引力，但它確實影響了我們在蘭格洛特本身的營運資金。作為我們希望在第三季度向市場展示的審查的一部分，我們將看看我們是否也需要在 Langeloth 做出一些改變。

Okay. And just in terms of some of the optimizations that you're discussing out Mount Milligan, is it kind of early days? Or is there any kind of color in terms of where you see some low-hanging fruit to nibble away at?

好的。就您在 Mount Milligan 討論的一些優化而言，現在還處於早期階段嗎？或者是否有某種顏色可以讓你看到一些低垂的果實可以啃掉？

I think the team, from an exploration perspective of it, I'll speak to that first. So we have 50,000 meters of drilling in 2022 that hasn't been incorporated into the technical we reported last fall. So whether we can -- what we've seen potentially can potentially increase the mine plan, does it -- does it allow us to bring forward some further high-grade zones. So that's something we're looking at in 2024 and 2025. At the moment, we're not looking at any significant capital expenditure for adjustments into the mill. As you know, we completed the [SFR] last year. We're seeing the benefit of that, and obviously looking to capture a full year of a potential increase in recoveries. But the team also is focusing on blend and ensuring we're getting that right blend of the high-grade copper, the high-grade -- high gold, low copper and the low copper, high gold. So we're just really focusing on those pieces at the moment. There's nothing over and above those items at the moment. But obviously, with Paul -- Paul T and Paul C working together, I'm sure there's some low-hanging fruit that we're getting after next year.

我認為團隊，從探索的角度來看，我會首先談論這一點。因此，我們在 2022 年有 50,000 米的鑽探，尚未納入我們去年秋天報告的技術中。因此，我們是否可以——我們所看到的可能會增加採礦計劃，是嗎——它是否能讓我們進一步推進一些高品位區域。這就是我們在 2024 年和 2025 年考慮的事情。目前，我們沒有考慮任何重大資本支出來調整工廠。如您所知，我們去年完成了 [SFR]。我們看到了這樣做的好處，並且顯然希望捕捉全年復甦的潛在增長。但該團隊還專注於混合，確保我們得到高品位銅、高品位——高金、低銅和低銅、高金的正確混合。所以我們目前只專注於這些作品。目前沒有什麼比這些項目更重要的了。但顯然，在 Paul、Paul T 和 Paul C 的共同努力下，我確信明年我們會取得一些唾手可得的成果。

Okay. And what's the word on Öksüt in terms of like is it the elections in the country that are kind of taking up Ministry time and you'd expect a response with the resolution of the elections? Or just any kind of additional color you can kind of provide on the process of getting that EIA approved.

好的。關於 Öksüt 的說法是什麼，比如該國的選舉在某種程度上佔用了部長的時間，您期望對選舉的解決方案做出回應嗎？或者只是您可以在獲得 EIA 批准的過程中提供的任何類型的附加顏色。

We'll pass that one on to Paul Wright, please.

請我們將此轉交給保羅·賴特。

Yes. Certainly, Paul. Yes, Michael, just -- I mean, very quickly, I mean, we've been making good progress as it relates to bringing Öksüt back online in terms of advancing the process, completing construction of the mercury abatement system having not tested and approved inspections by Minister environment.

是的。當然，保羅。是的，邁克爾，只是 - 我的意思是，很快，我的意思是，我們已經取得了良好的進展，因為這涉及到讓 Öksüt 重新上線，推進流程，完成尚未測試和批准的汞減排系統的建設環境部長檢查。

The EIA document, which is obviously an important document precursor to being able to obtained Ministry of approval was advanced the posting period, the public posting period concluded April 30, and it was a bit of a nonevent as last week, we received acceptance of the EIA report by the Ministry of Environment. And we're now into the point of basically attaining ministerial approval, which will conclude with the granting of a certificate. And as I described, the precursor of that was obviously the acceptance of the EIA, allowing us to move forward with the request from Ministry of approval. But that came up against the early elections, which were held yesterday. And as you can appreciate, the week before elections is difficult to get ministerial attention to these matters. We're optimistic with the first round of election behind us and with the government still in place pending second round that we will be able -- in the coming weeks to be able to complete the task and obtain the certificate and move forward with the local authorities to bring the mine online. Again, it's been a successful process as it relates to the EIA, and we can continue to have very strong local support for the restart.

環評文件，顯然是獲得部委批准的重要文件，提前了公示期，公示期於4月30日結束，這有點小事，因為上週我們收到了接受環境部環境影響評價報告。我們現在已經基本獲得部長級批准，最終將頒發證書。正如我所描述的，其先兆顯然是環境影響評估的接受，使我們能夠按照部委的批准請求繼續推進。但這與昨天舉行的提前選舉相悖。正如你所知，選舉前一周很難引起部長們對這些問題的關注。我們對第一輪選舉已經過去以及政府仍在等待第二輪選舉感到樂觀，我們將能夠在未來幾週內完成任務並獲得證書並與當地政府一起推進當局將礦山上線。再說一遍，這是一個成功的過程，因為它與環境影響評估有關，我們可以繼續為重啟提供非常強大的本地支持。

Yes. It definitely looks like you guys are making great progress, and there's seems to be a lot of opposition at all voice. Is there any in terms of just how the ministry works with respect to elections is the Ministry in place expected to stay in place? Or would there be a new Ministry appointed regardless of the outcome of the presidential elections?

是的。看起來你們確實取得了很大的進步，但似乎也有很多反對的聲音。該部在選舉方面的工作方式是否有任何預期，預計該部將繼續存在？或者無論總統選舉結果如何都會任命一個新的部委？

The -- look, I mean, I don't want to sort of speculate on the results of the election. If a ruling party, [act] party succeeds, the civil service will probably largely remain intact. You will see changes at ministerial level inevitably as it's fairly typical and then we see here in this instance where the minister is looking to take up a seat in parliament. So you would see some changes in terms of leadership of the Ministry. But in the event of a change in government, which looks unlikely given the results of yesterday, then you would have seen more changes. But I have to emphasize that what you have here is very good progress resulting in sort of acceptance of the EIA report, you have strong local support for the project. It's what we really have to deal with. We -- we just run out of runway given the call for early elections.

我的意思是，我不想猜測選舉結果。如果執政黨（行動黨）成功，公務員制度可能會基本保持不變。你將不可避免地看到部長級的變化，因為這是相當典型的，然後我們在這裡看到部長正在尋求在議會中佔據一席之地。所以你會看到該部領導層發生一些變化。但如果政府發生更迭（鑑於昨天的結果，這看起來不太可能），那麼你會看到更多的變化。但我必須強調，你們這裡取得了非常好的進展，環評報告已被接受，你們對該項目得到了當地的大力支持。這是我們真正必鬚麵對的。考慮到提前選舉的呼聲，我們已經超出了跑道。

(Operator Instructions) And our next question on the line is from Anita Soni with CIBC Markets. .

（操作員說明）我們的下一個問題來自 CIBC Markets 的 Anita Soni。 。

And firstly, Paul Tomory, congratulations on your new role as CEO, and I look forward to working with you. I think Mike asked most of the questions, and Paul Wright provided some good color on Turkey. So I guess my -- I'm just going to add more of a housekeeping item. I'm looking at the exploration cost for the Goldfield Project and you spent a lot there relative to the $10 million that you were forecasting. Do you anticipate an increase? Or are you just have finished your drilling campaign early?

首先，Paul Tomory，祝賀您擔任首席執行官，我期待與您合作。我認為邁克提出了大部分問題，而保羅·賴特則提供了一些有關土耳其的精彩內容。所以我想我的——我只是要添加更多的家務用品。我正在研究金礦項目的勘探成本，相對於您預測的 1000 萬美元，您在那里花費了很多。您預計會增加嗎？或者您剛剛提前完成了鑽探活動？

Anita, it's Darren. No, we're just purely front-end loaded the expenditure on Goldfield, and we're not expecting those expenditures to continue at that level.

安妮塔，我是達倫。不，我們只是純粹在前端加載 Goldfield 的支出，而且我們預計這些支出不會繼續保持在這個水平。

Okay. And then in terms of the cost guidance for Mount Milligan, that was reiterated, but you did guide that it seems like you're saying that you might be below the low end. I'm not sure exactly when you were saying. On the production side, you were saying it was near the low end, so I'm assuming that means below the low end of the guidance range. How is it that the costs are still okay going forward? Can you just give some color on that?

好的。然後就米利根山的成本指導而言，這一點得到了重申，但你確實指出，你似乎在說你可能低於低端。我不確定你具體什麼時候說的。在生產方面，您說它接近低端，所以我假設這意味著低於指導範圍的低端。未來的成本如何仍然可以？你能給點顏色嗎？

Yes. So we've got the benefit of copper hedging we've got in place. So we've obviously copper trading below the [3] or (inaudible) [4]. So we've got some offset there. We do the capitalization of costs associated with the TSF. So in Q1, we had 0 -- or basically 0 cost capitalized. When you look purely at production costs, it's kind of doesn't represent the right picture. We haven't had any increases in costs on a normalized basis. It's $10 million to $12 million or $12 million to $14 million will be a credit to cost as we go through to Q2 through Q4. So they're the bigger ones. Obviously, we've got some -- we may sort of shift around some nonessential capital, but at this stage, we feel where -- we'll be within the guidance provided.

是的。因此，我們已經獲得了銅對沖的好處。因此，我們的銅交易顯然低於 [3] 或（聽不清）[4]。所以我們在那裡有一些抵消。我們對與 TSF 相關的成本進行資本化。因此，在第一季度，我們的資本化成本為 0，或者說基本上為 0。當你純粹考慮生產成本時，你會發現它並不代表正確的情況。在正常化的基礎上，我們的成本沒有任何增加。當我們進入第二季度到第四季度時，1000 萬至 1200 萬美元或 1200 萬至 1400 萬美元將計入成本。所以他們是更大的。顯然，我們已經有了一些——我們可能會圍繞一些非必要的資本進行轉移，但在這個階段，我們覺得——我們將在所提供的指導範圍內。

Okay. And then in terms of capital expenditures, I'm looking at the cost -- sorry, the guidance that you provided and it says additions to PP&E and that's about $4 million out of the $65 million to $70 million that you're forecasting for the year. Could you just clarify what that is and how that may evolve over the course of the year? Would we expect Q2, Q3 to be the bulk of it? Or is it back-end weighted as well?

好的。然後就資本支出而言，我正在考慮成本——抱歉，您提供的指導中提到了 PP&E 的增加，這大約是您預測的 6500 萬至 7000 萬美元中的 400 萬美元。年。您能否澄清一下這是什麼以及在這一年中它會如何演變？我們預計第二季度、第三季度將佔其中的大部分嗎？或者它也是後端加權的？

Yes. We had minimal expenditure in Q1. So we do expect that to be incurred, I think it was delayed a major shut planned in August of this year. So you'll see a lot of that being incurred then and then remain will be minimal in probably Q2 and Q4.

是的。我們第一季度的支出很少。所以我們確實預計會發生這種情況，我認為今年八月計劃的重大關閉被推遲了。因此，您會看到當時發生了很多事情，然後在第二季度和第四季度留下來的可能會很少。

So what is that exactly?

那到底是什麼？

So it will be towards the shutdown. We've also got some -- or the maintenance plans that we make shutdown. There's also some replacement parts, as you'd expect on all the fleet and just up to the time line of refit. So nothing major. It is happening as normal course. Sorry, the other one to highlight, sorry, Anita, it is the -- so the Rainbow Creek. We are putting in place that long-term water solution, obviously, we've got all the permits in place. Now we're just building that as well. So that's the other one that will kind of be happening more in the back end of the year.

所以它將走向關閉。我們還有一些——或者說我們關閉的維護計劃。還有一些替換零件，正如您對所有機隊所期望的那樣，並且直到改裝時間為止。所以沒什麼大不了的。它正在正常發生。抱歉，還有一個要強調的，抱歉，安妮塔，它是彩虹溪。我們正在實施長期水解決方案，顯然，我們已經獲得了所有許可。現在我們也正在構建它。這是今年年底會發生更多的另一件事。

Okay. I ask some may actually I have another question. Last year, and I think in October, you put out the feasibility study for Mount Milligan, I guess, extending the reserves, but then also not moving forward on an expansion there. Could you just update me on where you think that stands now given, I guess, the current pricing environment and copper price and gold price environment?

好的。我問了一些，實際上我還有另一個問題。去年，我想是在十月份，你們提出了米利根山的可行性研究，我想，擴大了儲備，但隨後也沒有繼續進行那裡的擴建。我想，考慮到當前的定價環境以及銅價和金價環境，您能否向我介紹一下您認為目前的情況？

Well, I think the first step for us is going to be to update the market with the new resource statement. So as I said earlier, we've got 50,000 meters worth of drilling to be incorporated. So once that has occurred, I think then the team will then relook at the mine plans and sequencing. I don't see once -- what I know, but obviously, Paul T and Paul C will need to dig in further, but I don't see any large capital expenditure even at these current prices. But I think it's just going to be tweaking the mine plan, and obviously in an ideal world convert some of these potential resource updates into reserves. So nothing material coming at this stage.

嗯，我認為我們的第一步是用新的資源聲明更新市場。正如我之前所說，我們需要進行價值 50,000 米的鑽探。因此，一旦發生這種情況，我認為團隊將重新審視採礦計劃和排序。我一次也沒有看到——我所知道的，但顯然，Paul T 和 Paul C 需要進一步挖掘，但即使按照目前的價格，我也沒有看到任何大量的資本支出。但我認為這只是調整採礦計劃，顯然在理想的世界中將一些潛在的資源更新轉化為儲備。所以現階段沒有任何實質性進展。

Thank you very much. We have no further questions on the line. Please continue with the presentation or any closing remarks.

非常感謝。我們沒有其他問題了。請繼續進行演示或結束語。

Well, we'll conclude the conversation there, and thank you, everybody, for joining in, and we look forward to meeting you in person in the coming weeks and months, and we'll see you soon. Thank you.

好吧，我們將在那裡結束對話，感謝大家的加入，我們期待著在未來幾周和幾個月內與您見面，我們很快就會見到您。謝謝。

Thank you very much, and thank you, everyone. That does conclude the conference call for today. We thank you for your participation and ask that you disconnect your lines. Have a good day, everyone.

非常感謝，也謝謝大家。今天的電話會議到此結束。我們感謝您的參與，並要求您斷開線路。祝大家有美好的一天。