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CGAU Skyrockets 116% in 6 months: Buy, Hold or Sell the Stock?
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Key Takeaways
CGAU reported Q3 2025 revenue of $395.2M, up about 22% year over year, supported by gold and copper output.
Higher realized prices near $3,178/oz gold and $3.73/lb copper strengthened margins for CGAU.
Centerra Gold ended Q3 with $561.8M cash, a $400M undrawn credit facility and progress at Mount Milligan.
Centerra Gold Inc. (CGAU - Free Report) has gained 116.2% over the past six months compared with the Zacks Mining-Gold industry’s 74.9% increase and the S&P 500’s modest 13.7% rise. The stock surge was underpinned by stronger gold prices and improved operational performance, with a micro-level boost from solid output at the Mount Milligan mine and continued cost discipline.
Among its peers, Royal Gold Inc. (RGLD - Free Report) and Galiano Gold Inc. (GAU - Free Report) are up 51.3% and 97% in the past six months, respectively.
Price Performance of CGAU vs. Industry, S&P 500, RGLD & GAU
Image Source: Zacks Investment Research
Technical indicators show that CGAU has been trading above the 50-day and 200-day simple moving average (SMA). The 50-day SMA is reading higher than the 200-day SMA, indicating a bullish trend.
Image Source: Zacks Investment Research
Let’s look at the CGAU’s fundamentals to analyze the stock better.
Strong Metal Prices Drive Quarterly Gains for CGAU
Centerra Gold delivered a strong performance in the third quarter of 2025, reporting revenue of $395.2 million, up roughly 22% from a year earlier, supported by firm gold and copper prices. The company produced 81,773 ounces of gold, with about 49,234 ounces from Öksüt and 32,539 ounces from Mount Milligan, along with 13.4 million pounds of copper.
Higher realized prices of around $3,178 per ounce for gold and $3.73 per pound for copper, strong production, favorable pricing and efficient operations supported the company’s improved financial performance.
Operationally, CGAU maintained stable mining and processing rates at both sites, benefited from improved ore grades at Öksüt and managed plant availability at Mount Milligan effectively during the quarter. These operational strengths, coupled with reliable output from both metals, underpinned the year-over-year revenue growth and emphasized the resilience of Centerra Gold’s production platform.
Financial Position Bolstered by Cash Generation
In the third quarter of 2025, Centerra Gold demonstrated a robust financial position, driven by strong operational performance and favorable metal prices. The company generated $161.7 million in cash from operating activities, translating into free cash flow of $98.7 million, reflecting its ability to efficiently convert revenue into liquidity.
At the end of the quarter, Centerra held a cash balance of approximately $561.8 million, slightly lower than the $624.7 million reported at the end of 2024. Also, it had an undrawn credit facility of $400 million, giving total liquidity of nearly $962 million, which provides flexibility to fund operations, growth projects and potential strategic initiatives without the need for additional debt.
On the investment front, Centerra Gold spent $58.3 million on capital expenditures during the quarter. This included $25.7 million in sustaining capital, primarily for maintaining existing mine operations and processing facilities, and $32.6 million in growth or non-sustaining capital, largely directed toward expansion projects such as the Thompson Creek restart.
The company’s disciplined approach to capital allocation, combined with strong cash generation, ensures that operational needs are met while maintaining the ability to invest in long-term growth.
Project Milestones Strengthen Production Outlook
Centerra Gold has progressed several strategic growth projects and initiatives throughout 2025 and late 2024. In September 2025, the company filed a Pre-Feasibility Study (PFS) for its Mount Milligan mine in British Columbia, confirming a life of mine extension to 2045, significantly increasing mineral reserves and detailing planned throughput enhancements through plant upgrades and permitting activities expected to continue into 2026–2027.
The company is also advancing the Goldfield project in Nevada, completing a technical study in August 2025 that highlighted attractive economics, including a strong internal rate of return and net present value, demonstrating its potential as a future production contributor.
On the development side, Centerra Gold is moving forward with the restart of the Thompson Creek mine and the associated Langeloth facility, with the feasibility-driven restart plan approved and ramp-up work in progress, targeting first production in the second half of 2027.
Additionally, the firm strengthened its exploration portfolio through a strategic investment in Midland Exploration in July 2025, taking a significant equity stake to support early-stage resource development.
The Zacks Consensus Estimate for 2025 and 2026 earnings for CGAU has been revised higher over the past 90 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CGAU’s fiscal 2025 earnings is currently pegged at 99 cents per share, suggesting year-over-year growth of 39.44%. The same for 2026 is $1.27 per share, implying 28.1% growth year over year.
Image Source: Zacks Investment Research
CGAU is Trading Above Industry
CGAU is currently trading at a forward 12-month price-to-earnings multiple of 12.19X, above the peer group average of 11.19X and its five-year median.
Image Source: Zacks Investment Research
The forward 12-month price-to-earnings multiples for Royal Gold and Galiano Gold are 20.59X and 3.4X, respectively. CGAU and GAU currently have a Value Score of A, while RGLD has a score of E.
Final Thoughts: Hold CGAU for Now
Centerra Gold’s previous quarter performance reflects clear operational strength, with higher metal prices, stable production and solid cost discipline driving meaningful improvements in revenue and cash flow. The company’s strong liquidity position further enhances its financial flexibility.
However, the outlook is tempered by rising capital requirements tied to major projects such as Mount Milligan’s life extension, the Thompson Creek restart and the Goldfield development. These initiatives, while value-accretive in the long term, introduce execution risk and will weigh on free cash flow in the near to medium term. The risk-reward profile appears balanced, supporting a Hold stance on the stock.
Image: Bigstock
CGAU Skyrockets 116% in 6 months: Buy, Hold or Sell the Stock?
Key Takeaways
Centerra Gold Inc. (CGAU - Free Report) has gained 116.2% over the past six months compared with the Zacks Mining-Gold industry’s 74.9% increase and the S&P 500’s modest 13.7% rise. The stock surge was underpinned by stronger gold prices and improved operational performance, with a micro-level boost from solid output at the Mount Milligan mine and continued cost discipline.
Among its peers, Royal Gold Inc. (RGLD - Free Report) and Galiano Gold Inc. (GAU - Free Report) are up 51.3% and 97% in the past six months, respectively.
Price Performance of CGAU vs. Industry, S&P 500, RGLD & GAU
Technical indicators show that CGAU has been trading above the 50-day and 200-day simple moving average (SMA). The 50-day SMA is reading higher than the 200-day SMA, indicating a bullish trend.
Let’s look at the CGAU’s fundamentals to analyze the stock better.
Strong Metal Prices Drive Quarterly Gains for CGAU
Centerra Gold delivered a strong performance in the third quarter of 2025, reporting revenue of $395.2 million, up roughly 22% from a year earlier, supported by firm gold and copper prices. The company produced 81,773 ounces of gold, with about 49,234 ounces from Öksüt and 32,539 ounces from Mount Milligan, along with 13.4 million pounds of copper.
Higher realized prices of around $3,178 per ounce for gold and $3.73 per pound for copper, strong production, favorable pricing and efficient operations supported the company’s improved financial performance.
Operationally, CGAU maintained stable mining and processing rates at both sites, benefited from improved ore grades at Öksüt and managed plant availability at Mount Milligan effectively during the quarter. These operational strengths, coupled with reliable output from both metals, underpinned the year-over-year revenue growth and emphasized the resilience of Centerra Gold’s production platform.
Financial Position Bolstered by Cash Generation
In the third quarter of 2025, Centerra Gold demonstrated a robust financial position, driven by strong operational performance and favorable metal prices. The company generated $161.7 million in cash from operating activities, translating into free cash flow of $98.7 million, reflecting its ability to efficiently convert revenue into liquidity.
At the end of the quarter, Centerra held a cash balance of approximately $561.8 million, slightly lower than the $624.7 million reported at the end of 2024. Also, it had an undrawn credit facility of $400 million, giving total liquidity of nearly $962 million, which provides flexibility to fund operations, growth projects and potential strategic initiatives without the need for additional debt.
On the investment front, Centerra Gold spent $58.3 million on capital expenditures during the quarter. This included $25.7 million in sustaining capital, primarily for maintaining existing mine operations and processing facilities, and $32.6 million in growth or non-sustaining capital, largely directed toward expansion projects such as the Thompson Creek restart.
The company’s disciplined approach to capital allocation, combined with strong cash generation, ensures that operational needs are met while maintaining the ability to invest in long-term growth.
Project Milestones Strengthen Production Outlook
Centerra Gold has progressed several strategic growth projects and initiatives throughout 2025 and late 2024. In September 2025, the company filed a Pre-Feasibility Study (PFS) for its Mount Milligan mine in British Columbia, confirming a life of mine extension to 2045, significantly increasing mineral reserves and detailing planned throughput enhancements through plant upgrades and permitting activities expected to continue into 2026–2027.
The company is also advancing the Goldfield project in Nevada, completing a technical study in August 2025 that highlighted attractive economics, including a strong internal rate of return and net present value, demonstrating its potential as a future production contributor.
On the development side, Centerra Gold is moving forward with the restart of the Thompson Creek mine and the associated Langeloth facility, with the feasibility-driven restart plan approved and ramp-up work in progress, targeting first production in the second half of 2027.
Additionally, the firm strengthened its exploration portfolio through a strategic investment in Midland Exploration in July 2025, taking a significant equity stake to support early-stage resource development.
CGAU’s Rising Earnings Estimates Reflect Positive Sentiments
The Zacks Consensus Estimate for 2025 and 2026 earnings for CGAU has been revised higher over the past 90 days.
The Zacks Consensus Estimate for CGAU’s fiscal 2025 earnings is currently pegged at 99 cents per share, suggesting year-over-year growth of 39.44%. The same for 2026 is $1.27 per share, implying 28.1% growth year over year.
Image Source: Zacks Investment Research
CGAU is Trading Above Industry
CGAU is currently trading at a forward 12-month price-to-earnings multiple of 12.19X, above the peer group average of 11.19X and its five-year median.
The forward 12-month price-to-earnings multiples for Royal Gold and Galiano Gold are 20.59X and 3.4X, respectively. CGAU and GAU currently have a Value Score of A, while RGLD has a score of E.
Final Thoughts: Hold CGAU for Now
Centerra Gold’s previous quarter performance reflects clear operational strength, with higher metal prices, stable production and solid cost discipline driving meaningful improvements in revenue and cash flow. The company’s strong liquidity position further enhances its financial flexibility.
However, the outlook is tempered by rising capital requirements tied to major projects such as Mount Milligan’s life extension, the Thompson Creek restart and the Goldfield development. These initiatives, while value-accretive in the long term, introduce execution risk and will weigh on free cash flow in the near to medium term. The risk-reward profile appears balanced, supporting a Hold stance on the stock.
CGAU carries a Zacks Rank of #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.