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    How Investors Are Reacting To Centerra Gold (TSX:CG) Expanding And Extending Its Undrawn Credit Facility

    Simply Wall St·07/21/2026 18:32:33
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    • Centerra Gold Inc. announced that it had amended its revolving credit facility, extending its maturity to July 15, 2030, increasing the size from US$400,000,000 to US$600,000,000, and lowering the SOFR-based interest margin to a range of 1.875%–3.000%, with no amounts drawn as of the announcement date.
    • This enlarged, undrawn facility gives Centerra additional financial flexibility to fund working capital, investments, possible acquisitions, and capital expenditures without immediately increasing leverage.
    • Now we’ll examine how this larger, lower-cost revolving credit facility shapes Centerra Gold’s investment narrative and future financial flexibility.

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    Centerra Gold Investment Narrative Recap

    To own Centerra Gold, you need to believe its existing mines and development projects can justify ongoing investment despite cost pressures and geological uncertainty, particularly at Mount Milligan and Öksüt. The enlarged, undrawn US$600,000,000 credit facility modestly strengthens the short term catalyst of advancing projects like Kemess and Goldfield without immediately adding debt, while partially offsetting the key risk that high capital spending or cost overruns could strain free cash flow and financial flexibility.

    Among recent announcements, the Kemess project update in January 2026 is most relevant here, since a larger, cheaper revolving facility could support the significant capital required if Kemess progresses from study stage into development. Together, Kemess, Goldfield and other projects form a core part of the growth pipeline that consensus views as critical to offsetting depletion at existing assets and managing all-in sustaining costs over time.

    However, against this extra liquidity, investors should still pay close attention to Centerra’s high all in sustaining costs and what they could mean if gold prices soften...

    Read the full narrative on Centerra Gold (it's free!)

    Centerra Gold’s narrative projects $1.6 billion revenue and $106.3 million earnings by 2028.

    Uncover how Centerra Gold's forecasts yield a CA$32.42 fair value, a 52% upside to its current price.

    Exploring Other Perspectives

    TSX:CG 1-Year Stock Price Chart
    TSX:CG 1-Year Stock Price Chart

    Some of the lowest ranked analysts were already assuming earnings could fall to about US$464.8 million by 2029, and see rising regulatory costs and resource nationalism as key threats, so this new credit flexibility might cause them to reassess how much protection Centerra really has if those margin pressures intensify.

    Explore 6 other fair value estimates on Centerra Gold - why the stock might be worth as much as 87% more than the current price!

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.