domnicky
Introduction & Financials
Centerra Gold (CGAU) - a smaller-size gold miner expected to produce 270,000 to 310,000 ounces this year - had quite a bad year in 2024 after no processing at the mine in Türkiye and lower grades
Centerra Gold: Turkish Mine's Clock Is Ticking, But High Transition Potential Remains
Summary
- Centerra Gold is a strong buy thanks to its strong balance sheet, zero debt, and significant cash flow potential even after recent production setbacks.
- The company trades at a deep discount to net asset value and offers a combined 7.8% yield through dividends and buybacks, providing strong shareholder returns.
- Key risks include heavy reliance on two mines, especially the Turkish asset facing declining production and geopolitical risk, making diversification urgent.
- With gold and copper price tailwinds, ample liquidity, and a clear strategy, Centerra is well positioned for future growth.
As of 2025, I've got over 10 years of researching companies. In total, throughout my investing life, I estimate that I researched (in depth) well over 1000 companies, from commodities like oil, natural gas, gold and copper to tech like Google or Nokia and many emerging market stocks, which I believe could help me provide useful content for readers. After writing my own blog for about 3 years, I decided to switch to a value investing-focused YouTube channel, where I researched hundreds of different companies so far. I would say my favorite type of company to cover are metals and mining stocks, but I am comfortable with several other industries, such as consumer discretionary/staples, REITs and utilities.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of BTG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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