Kemess PEA Values Centerra Gold Project at $1.1B NPV and 16% IRR
Centerra Gold’s Kemess PEA reports a $1.1B NPV at 5% and a 16% IRR using $3,000/oz gold and $4.50/lb copper assumptions. It forecasts average annual production of 171,000 ounces of gold and 61 million pounds of copper at an AISC of $971/oz.
1. Permit Amendments Extend Mount Milligan Operations to 2035
Centerra Gold has secured amended environmental assessment approvals and related permits for its Mount Milligan Mine in central British Columbia, authorizing continuous operations through 2035. The amendments include a 10% increase in plant throughput capacity scheduled for commissioning in 2028, and expanded stockpile capacity to enhance plant feed flexibility. These permits were granted under an expedited review process initiated by the Province of British Columbia in January 2025, one of four projects selected to benefit from accelerated timelines without compromising environmental standards or First Nations consultation.
2. Economic and Employment Impacts of Life-of-Mine Extension
The extended mine life at Mount Milligan is projected to sustain more than 1,000 direct jobs and generate significant business opportunities for First Nations and local communities. Based on the company’s Pre-Feasibility Study released in September 2025, the mine life extension to 2045 is supported by a fully funded, disciplined US$186 million growth capital plan. Centerra’s management expects consistent annual production of gold and copper through 2035, with potential upside pending future studies and permitting for the 2045 extension.
3. Strong Economics Underpin Kemess Preliminary Economic Assessment
Centerra’s Kemess project in northern British Columbia reports an after-tax NPV(5%) of US$1.1 billion and an IRR of 16%, based on long-term assumptions of US$3,000/oz gold and US$4.50/lb copper. The 15-year mine plan forecasts average annual output of 171,000 ounces of gold and 61 million pounds of copper (approximately 267,000 gold equivalent ounces) at an all-in sustaining cost of US$971/oz. At current spot metal prices (approximately US$4,500/oz gold and US$6.00/lb copper), the NPV rises to US$2.8 billion with an IRR of 29%.
4. Integrated Development Strategy Reduces Execution Risk
The Kemess PEA outlines a staged open pit to underground development, leveraging existing infrastructure to optimize capital deployment and accelerate first production targeted for late 2031. Initial non-sustaining capital of US$771 million covers pit stripping, plant refurbishment and conveyor construction, followed by US$277 million in expansionary capital for underground works and a leach plant that boosts gold recovery by roughly 14%. Key critical-path items include a BC Hydro substation upgrade and permit approvals, while ongoing exploration in the Nugget zone and Kemess East trend offers upside potential for future technical studies.