Saturn Oil & Gas Inc. Announces Second Quarter 2025 Results Highlighted by $119MM Net Debt Reduction Over Q1/25 and Record Free Funds Flow
'Saturn has continued to deliver results from our blueprint strategy, with net debt (1) reduction of nearly $120 million between Q1/25 and Q2/25 exceeding the original expectations mentioned during our Q1/25 earnings conference call. This outperformance was achieved through scheduled quarterly principal repayments, an opportunistic open-market purchase of our bonds below par, and the benefit of foreign exchange rates. This debt reduction, combined with our steady return of capital through Saturn's share buybacks, represents accretion for equity holders while also enhancing our per share metrics,' said John Jeffrey, Chief Executive Officer. 'Our strong operational performance is evidenced by quarterly production exceeding the high end of our guidance range for another consecutive quarter; operating costs coming in below the low end of guidance; and several Saturn wells being ranked among the highest performers in Saskatchewan, all of which supports our long-term sustainability.'
Q2 2025 HIGHLIGHTS
EVENTS SUBSEQUENT TO QUARTER END
FINANCIAL AND OPERATING HIGHLIGHTS
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SATURN'S BLUEPRINT IN ACTION
The ongoing execution of Saturn's blueprint strategy proved effective in Q2/25 as our results showcase the strength of the underlying asset base that we have assembled, along with our technical team's ability to optimize production with minimal capital spending in the quarter leading to record Free Funds Flow. Our quarterly results further demonstrate our commitment to debt reduction and continuous per unit cost improvement which supports our robust cash flow. Consistent with Saturn's opportunistic approach to managing the business, during Q2/25, we elected to terminate certain 2026 and 2027 punitive WTI swap contracts that had an average Canadian dollar price of $81.35/bbl (equivalent to WTI prices under US$60/bbl) for $2.3 million.
The Saskatchewan Government's recent decision to eliminate carbon tax in the province underpins Saturn's ability to generate incremental AFF. The Company stands to realize substantial savings across several cost centres within our business – including electricity, services, transportation and fuel. As a result of the carbon tax elimination, we are forecasting annual operating cost savings of up to $20 million, which can be reinvested back into Saskatchewan through capital expenditures, production optimization or tuck-in acquisitions, all of which support future AFF generation. This represents another example of the many benefits of operating in Saskatchewan.
Upon closing of our SIB on July 16, 2025, the Company automatically restarted Common Share repurchases under our NCIB, which had been paused during the duration of the SIB. We intend to continue maximizing our daily purchase limits under the NCIB, with a view to maximizing the 11.3 million Shares available to be purchased under the NCIB by August 26, 2025 (as at the date of this release, we have repurchased 9.6 million), as we believe it offers an efficient means to enhance per share metrics while supporting equity value.
ASSET OUTPERFORMANCE
Saturn continues to benefit from the underlying strength of our asset base, our team's technical expertise and operational acumen, enabling the Company to extend our track record of effective and efficient capital deployment. Average production volumes of 40,417 boe/d for the second quarter exceeded both previous guidance and analyst consensus.
This outperformance is highlighted by the Company's 15-21 Viewfield Bakken open-hole multi-lateral ('OHML') well ranking among the top four best-performing liquids wells in Saskatchewan in June, according to third-party reports, and by having three of our extended reach horizontal wells in the top 15 best-performing wells in the Alberta Cardium. Since being fully cleaned up, each of these Cardium wells have demonstrated reverse declines, with volumes increasing after the initial 30-day production rate, which is not common with well declines. In addition, we have continued to keep Saturn's per boe net operating expenses (1) well under our guidance range of $20.00 to $20.60 per boe to date in 2025, although we anticipate trending closer to guidance in the second half of the year as capital expenditure (1)(3) activities increase.
OUTLOOK
Saturn returned to the field in the latter half of July to commence our high return, OHML Bakken and Mississippian drilling programs. For Q3/25, the Company's capital expenditures (1)(3) are anticipated to range between $80 and $90 million, assuming WTI prices remain within expectations, with activities directed to the planned drilling of approximately 21 wells, production optimization initiatives, and further development at our Creelman Bakken field to initiate Saturn's first Viewfield waterflood project by the end of July. The project includes a new water source well, infrastructure, and five successful injector conversions to date, which will provide pressure support to increase ultimate oil recovery to current producers, and re-pressurize multiple 2026 development wells. This is the first stage of a larger multi-year waterflood program over the greater Viewfield area, which we expect to reduce declines and translate into material future booked reserves.
Production in Q3/25 is expected to average between 37,000 to 38,000 boe/d (2), reflecting the impact of minimal capital spending during Q2/25 and in line with our original 2025 annual guidance.
CONFERENCE CALL AND WEBCAST
The Company plans to host a conference call on Thursday, July 31, 2025, at 8:00 am Mountain Time (10:00 am Eastern Time), which will include a discussion with Saturn's leadership team, who will provide an overview of our Q2 2025 results, followed by a question-and-answer session with attendees.
An audio replay of the webcast will be available one hour after the end of the call at the link above and will remain accessible for 12 months. The replay link will also be posted on Saturn's website.
NOTES
(1) See reader advisory: Non-GAAP and Other Financial Measures.
(2) See reader advisory: Supplemental Information Regarding Product Types.
(3) Includes capitalized G&A.
ABOUT SATURN
Saturn is a returns-driven Canadian energy company focused on the efficient and innovative development of high-quality, light oil weighted assets, supported by an acquisition strategy targeting accretive and complementary opportunities. The Company's portfolio of free-cash flowing, low-decline operated assets in Saskatchewan and Alberta provide a deep inventory of long-term economic drilling opportunities across multiple zones. With an unwavering commitment to building an entrepreneurial and ESG-focused culture, Saturn's goal is to increase per Share reserves, production and cash flow at an attractive return on invested capital. The Company's Shares are listed for trading on the TSX under ticker 'SOIL' and on the OTCQX under the ticker 'OILSF'. Further information and our corporate presentation are available on Saturn's website at www.saturnoil.com.
INVESTOR & MEDIA CONTACTS
John Jeffrey, MBA - Chief Executive Officer
Tel: +1 (587) 392-7900
www.saturnoil.com
Cindy Gray, MBA - VP Investor Relations
Tel: +1 (587) 392-7900
[email protected]
READER ADVISORIES
Non-GAAP and Other Financial Measures
Throughout this news release and in other materials disclosed by the Company, Saturn employs certain measures to analyze financial performance, financial position and cash flow. These non-GAAP and other financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other entities. The non-GAAP and other financial measures should not be considered to be more meaningful than GAAP measures which are determined in accordance with IFRS, such as net income (loss), cash flow from operating activities, and cash flow used in investing activities, as indicators of Saturn's performance.
The disclosure under the section 'Non-GAAP and Other Financial Measures' in our MD&A, including non-GAAP financial measures and ratios, capital management measures and supplementary financial measures in the Company's Financial Statements and MD&A are incorporated by reference into this news release.
This news release may use the terms 'Adjusted EBITDA', 'Adjusted Funds Flow', 'Net Debt', 'Free Funds Flow', 'Net Debt to Annualized Adjusted EBITDA' and 'Net Debt to Annualized AFF' which are capital management financial measures. See the disclosure under 'Capital Management' in our Financial Statements for the three and six months ended June 30, 2025, for an explanation and composition of these measures, how these measures provide useful information to an investor, the additional purposes, if any, for which management uses these measures, and, where applicable, a reconciliation of the Company's historical non-GAAP financial measures to the most directly comparable measure calculated in accordance with GAAP for the applicable period then ended.
Capital Expenditures
Saturn uses capital expenditures to monitor its capital investments relative to those budgeted by the Company on an annual basis. Saturn's capital budget excludes acquisition and disposition ('A&D') activities as well as the accounting impact of any accrual changes or payments under certain lease arrangements. The most directly comparable GAAP measure for capital expenditures is cash flow used in investing activities. The following table reconciles capital expenditures and capital expenditures, net A&D to the nearest GAAP measure, cash flow used in investing activities.
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Free Funds Flow and Free Funds Flow per Share
Saturn uses free funds flow as an indicator of the efficiency and liquidity of its business, measuring its funds after capital investment available to manage debt levels, pursue acquisitions and gauge optionality to pay dividends and/or and return capital to shareholders through activities such as share repurchases. Saturn calculates free funds flow as adjusted funds flow in the period less capital expenditures. By removing the impact of current period capital expenditures from adjusted funds flow, management monitors its free funds flow to inform its capital allocation decisions. Free funds flow is also presented on a per share basis as a non-GAAP financial ratio. The following table reconciles adjusted funds flow to free funds flow.
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Adjusted Funds Flow per Share
Adjusted funds flow per share is a non-GAAP ratio by management to better analyze the Company's performance against prior periods on a more comparable basis. Adjusted funds flow per share is calculated as adjusted funds flow from operations divided by weighted average shares outstanding during the applicable period on a basic or diluted basis.
Gross Petroleum and Natural Gas Sales
Gross petroleum and natural gas sales is calculated by adding oil, natural gas and NGLs revenue, before deducting certain gas processing expenses in arriving at petroleum and natural gas revenue as required under IFRS-15. These processing expenses associated with the processing of natural gas and NGLs revenue are a result of the Company transferring custody of the product at the terminal inlet and, therefore, receiving net prices. This metric is used by management to quantify and analyze the realized price received before required processing deductions, against benchmark prices. The calculation of the Company's gross petroleum and natural gas sales is shown within the petroleum and natural gas sales section of the MD&A.
Royalties as a Percentage of Gross Petroleum and Natural Gas Sales
Royalties as a percentage of gross petroleum and natural gas sales is calculated as royalties divided by gross petroleum and natural gas sales. This metric is used by management to quantify the Company's royalty costs as they relate to revenue before deducting certain processing expenses and to better analyze how royalty rates change over time and compare to prior periods.
Net Operating Expenses
Net operating expense is calculated by deducting processing income primarily generated by processing third party production at processing facilities where the Company has an ownership interest, from operating expenses presented on the statement of income (loss). Where the Company has excess capacity at one of its facilities, it will process third-party volumes to reduce the cost of ownership in the facility. The Company's primary business activities are not that of a midstream entity whose activities are focused on earning processing and other infrastructure-based revenues, and as such third-party processing revenue is netted against operating expenses in the MD&A. This metric is used by management to evaluate the Company's net operating expenses on a unit of production basis. Net operating expense per boe is a non-GAAP financial ratio and is calculated as net operating expense divided by total barrels of oil equivalent produced over a specific period of time. The calculation of the Company's net operating expenses is shown within the net operating expenses section of the MD&A.
Operating Netback and Operating Netback, Net of Derivatives
The Company's operating netback is determined by deducting royalties, net operating expenses and transportation expenses from petroleum and natural gas sales. The Company's operating netback, net of derivatives, is calculated by adding or deducting realized financial derivative commodity contract gains or losses from the operating netback. The Company's operating netback and operating netback, net of derivatives are used in operational and capital allocation decisions. Presenting operating netback and operating netback, net of derivatives on a per boe basis is a non-GAAP financial ratio and allows management to better analyze performance against prior periods on a per unit of production basis. The calculation of the Company's operating netbacks and operating netback, net of derivatives are summarized as follows.
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(1) Includes early termination payment on certain WTI oil derivative contracts for the three and six months ended June 30, 2025 of $2.3 million.
Capital Management Measures
National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure ('NI 52-110") defines a capital management measure as a financial measure that: (i) is intended to enable an individual to evaluate an entity's objectives, policies and processes for managing the entity's capital; (ii) is not a component of a line item disclosed in the primary financial statements of the entity; (iii) is disclosed in the notes to the financial statements of the entity; and (iv) is not disclosed in the primary financial statements of the entity. Please refer to note 13 'Capital Management' in Saturn's Financial Statements for the three and six months ended June 30, 2025, for additional disclosure on: adjusted working capital, net debt, adjusted EBITDA, adjusted funds flow, free funds flow, annualized quarterly adjusted funds flow and net debt to annualized quarterly adjusted funds flow each of which are capital management measures used by the Company in this news release.
Supplementary Financial Measures
NI 52‐112 defines a supplementary financial measure as a financial measure that: (i) is, or is intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of an entity; (ii) is not disclosed in the financial statements of the entity; (iii) is not a non‐GAAP financial measure; and (iv) is not a non‐GAAP ratio. The supplementary financial measures used in this news release are either a per unit disclosure of a corresponding GAAP measure, or a component of a corresponding GAAP measure, presented in the financial statements. Supplementary financial measures that are disclosed on a per unit basis are calculated by dividing the aggregate GAAP measure (or component thereof) by the applicable unit for the period. Supplementary financial measures that are disclosed on a component basis of a corresponding GAAP measure are a granular representation of a financial statement line item and are determined in accordance with GAAP.
Supplemental Information Regarding Product Types
References to gas or natural gas and NGLs in this press release refer to conventional natural gas and natural gas liquids product types, respectively, as defined in National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities, except where specifically noted otherwise. The Company's aggregate average production for the past eight quarters and the references to 'crude oil', 'NGLs', and 'natural gas' reported herein consist of the following product types, as defined in NI 51-101 and using a conversion ratio of 1 Bbl : 6 Mcf where applicable:
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Initial Production Rates
References in this press release to initial production rates relating to wells are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will maintain production or decline thereafter, and are not indicative of long-term performance or ultimate recovery. Readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company.
Boe Presentation
Boe means barrel of oil equivalent. All boe conversions in this press release are derived by converting gas to oil at the ratio of six thousand cubic feet ('Mcf') of natural gas to one barrel ('Bbl') of oil. Boe may be misleading, particularly if used in isolation. A boe conversion rate of 1 Bbl : 6 Mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio of oil compared to natural gas based on currently prevailing prices is significantly different than the energy equivalency ratio of 1 Bbl : 6 Mcf, utilizing a conversion ratio of 1 Bbl : 6 Mcf may be misleading as an indication of value.
Forward-Looking Information and Statements
Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as 'anticipate', 'believe', 'expect', 'plan', 'intend', 'estimate', 'propose', 'project', 'scheduled', 'will' or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release may include, but is not limited to, the Company's drilling, completion and development plans, the planned multi-year waterflood project and the anticipated operational and reserve based benefits, the strength and sustainability of the Company's asset base and expertise of its personnel, expectations concerning the Q3 capital program, expected returns from OHML drilling programs, the liquidity of the Company and available credit, expectations regarding netbacks, hedging strategy, operating costs, return of capital, Share buyback and debt reduction strategies, the Company's intent to maximize purchases under the NCIB and the expected benefits to shareholders, the effect the Company's capital strategy on per share metrics and equity accretion, the business plan, cost model and strategy of the Company, changes in legislation and the associated benefits the Company expects, including operational cost savings and deployment of funds to support AFF generation, the benefits of operating in certain jurisdictions, per boe operating costs, anticipated production levels and related product types, and expectations regarding anticipated pricing trends, growth opportunities and market conditions.
The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Saturn which may prove to be incorrect. Although Saturn believes that the expectations reflected in its forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because Saturn can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this press release, assumptions have been made regarding and are implicit in, among other things, expectations and assumptions concerning: the timing of and success of future drilling, commodity prices, development and completion activities, the performance of existing wells, the performance of new wells, the availability and performance of facilities and pipelines, the ability to allocate capital to pay down debt and grow or maintain production, debt repayment plans, capital return strategies and future growth plans, the impact of our hedging strategy, the geological characteristics of Saturn's properties, drilling inventory and booked locations, production and revenue guidance, the application of regulatory and licensing requirements, the availability of capital, labour and services, the creditworthiness of industry partners and the ability to integrate acquisitions.
Although Saturn believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Saturn can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), constraints in the availability of services, commodity price and exchange rate fluctuations, actions of OPEC and OPEC+ members, changes in legislation impacting the oil and gas industry, adverse weather or break-up conditions and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. These and other risks are set out in more detail in Saturn's Annual Information Form for the year ended December 31, 2024, available on SEDAR+ at sedarplus.ca.
The forward-looking information in this news release reflects the Company's current expectations, assumptions and/or beliefs based on information currently available to the Company. The forward-looking information contained in this press release is made as of the date hereof and Saturn undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.
All dollar figures included herein are presented in Canadian dollars, unless otherwise noted.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/260724
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CORRECTING and REPLACING - Inotiv Reports Third Quarter Financial Results for Fiscal 2025 and Provides Business Update
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Revenue by Segment (in millions of USD) Three Months Ended June 30, % change (1) Nine Months Ended June 30, % change (1) 2025 2024 2025 2024 DSA (Discovery & Safety Assessment) $ 48.2 $ 44.2 8.9 % $ 136.3 $ 135.5 0.6 % RMS (Research Models & Services) $ 82.5 $ 61.6 34.1 % $ 238.6 $ 224.8 6.1 % Total (1) $ 130.7 $ 105.8 23.5 % $ 374.9 $ 360.3 4.0 % (1) Table may not foot and percentages may not recalculate due to rounding. Management Commentary Robert Leasure Jr., President and Chief Executive Officer, commented, 'During the third quarter of fiscal 2025, we continued to make progress towards the financial goals we outlined during our investor day in May. We were pleased that revenue and margins improved over the second quarter, and the year over year quarterly revenue increase of 23.5% was in line with our expectations. "Our DSA net awards for the third quarter of fiscal 2025 increased 25% versus the same period last year, following a 27% year over year improvement in the second quarter. Much of this was driven by the benefits of the integration, optimization and start up investments we have implemented over the last two years. In particular, our Discovery, Medical Device, Biotherapeutics and Genetic Toxicology businesses have seen strong growth in quoting and awards over the last two quarters. "As we experience this growth in revenue and awards, we remain highly focused on client satisfaction and delivery of on-time, high quality products and services. We consistently monitor operational data and client metrics to help build a strong recurring client base. "This quarter's results demonstrate continued progress in the execution of our strategic plans. We look forward to our future and want to thank all of our employees, shareholders and partners for their support and trust." 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Recently, the Company has requested a draw of $3.0 million on its revolving credit facility. Webcast and Conference Call Management will host a conference call on Wednesday, August 6, 2025, at 4:30 pm ET to discuss third fiscal quarter of 2025 parties may participate in the call by dialing: (800) 245-3047 (Domestic) (203) 518-9765(International) "INOTIV" (Conference ID) The live conference call webcast will be accessible in the Investors section of the Company's web site and directly via the following link: For those who cannot listen to the live broadcast, an online replay will be available in the Investors section of Inotiv's web site at: Note on Non-GAAP Financial Measures This press release contains financial measures that are not calculated in accordance with generally accepted accounting principles in the United States ("GAAP:), including Adjusted EBITDA and Adjusted EBITDA as a percentage of total revenue for the three and nine months ended June 30, 2025 and 2024 and selected business segment information for those periods. Adjusted EBITDA as reported herein refers to a financial measure that excludes from consolidated net loss statements of operations line items interest expense, net and income tax benefit, as well as non-cash charges for depreciation and amortization, stock compensation expense, startup costs, restructuring costs, unrealized foreign exchange (gain) loss, amortization of inventory step up, loss (gain) on disposition of assets, amounts received from the legal settlement with FNI, other unusual, third party costs and the charge in connection with the Resolution Agreement and Plea Agreement. The adjusted business segment information excludes from operating loss and unallocated corporate operating expenses for these same expenses. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this press release. The Company believes that these non-GAAP measures provide useful information to investors. Among other things, they may help investors evaluate the Company's ongoing operations. They can assist in making meaningful period-over-period comparisons and in identifying operating trends that would otherwise be masked or distorted by the items subject to the adjustments. Management uses these non-GAAP measures internally to evaluate the performance of the business, including to allocate resources. Investors should consider these non-GAAP measures as supplemental and in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. Management has chosen to provide this supplemental information to investors, analysts, and other interested parties to enable them to perform additional analyses of our results and to illustrate our results giving effect to the non-GAAP adjustments. Management strongly encourages investors to review the Company's condensed consolidated financial statements and publicly filed reports in their entirety and cautions investors that the non-GAAP measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures. About the Company Inotiv, Inc. is a leading contract research organization dedicated to providing nonclinical and analytical drug discovery and development services and research models and related products and services. The Company's products and services focus on bringing new drugs and medical devices through the discovery and preclinical phases of development, all while increasing efficiency, improving data, and reducing the cost of taking new drugs and medical devices to market. Inotiv is committed to supporting discovery and development objectives as well as helping researchers realize the full potential of their critical research and development projects, all while working together to build a healthier and safer world. Further information about Inotiv can be found here: This release contains forward-looking statements that are subject to risks and uncertainties including, but not limited to, statements regarding our intent, belief or current expectations with respect to (i) our strategic plans; (ii) trends in the demand for our services and products; (iii) trends in the industries that consume our services and products; (iv) market and company-specific impacts of NHP supply and demand matters; (v) compliance with the Resolution Agreement and Plea Agreement and the expected impacts on the Company related to the compliance plan and compliance monitor, and the expected amounts, timing and expense treatment of cash payments and other investments thereunder; (vi) our ability to service our outstanding indebtedness and to comply or regain compliance with financial covenants, including those established by the Seventh Amendment to our Credit Agreement; (vii) our current and forecasted cash position; (viii) our ability to make capital expenditures, fund our operations and satisfy our obligations; (ix) our ability to manage recurring and unusual costs; (x) our ability to execute on and realize the expected benefits related to our restructuring and site optimization plans; (xi) our expectations regarding the volume of new bookings, pre-sales, pricing, cost savings initiatives, expansion of services, operating income or losses and liquidity; (xii) our ability to effectively fill the recent expanded capacity or any future expansion or acquisition initiatives undertaken by us; (xiii) our ability to develop and build infrastructure and teams to manage growth and projects; (xiv) our ability to continue to retain and hire key talent; (xv) our ability to market our services and products under our corporate name and relevant brand names; (xvi) our ability to develop new services and products; (xvii) our ability to negotiate amendments to the Credit Agreement or obtain waivers related to the financial covenants defined within the Credit Agreement; (xviii) the potential outcome of litigation against us, including any settlement and amounts accrued or recoverable; and (xix) the impact of macroeconomic factors, including but not limited to tariffs, including those detailed in the Company's filings with the U.S. Securities and Exchange Commission. Further discussion of these risks, uncertainties, and other matters can be found in the Risk Factors detailed in our Annual Report on Form 10-K as filed on December 4, 2024, as well as other filings we make with the Securities and Exchange Commission. Company Contact Investor Relations Inotiv, Inc. LifeSci Advisors Beth A. Taylor, Chief Financial Officer Steve Halper (765) 497-8381 (646) 876-6455 shalper@ CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share amounts)(unaudited) Three Months EndedJune 30, Nine Months EndedJune 30, 2025 2024 2025 2024 Service revenue $ 59,579 $ 54,364 $ 169,264 $ 165,188 Product revenue 71,104 51,422 205,618 195,134 Total revenue $ 130,683 $ 105,786 $ 374,882 $ 360,322 Costs and expenses: Cost of services provided (excluding depreciation and amortization of intangible assets) 42,983 39,622 125,719 117,362 Cost of products sold (excluding depreciation and amortization of intangible assets) 53,778 45,083 161,212 161,728 Selling 5,530 5,030 15,745 15,781 General and administrative 17,879 16,782 54,183 56,505 Depreciation and amortization of intangible assets 13,985 14,119 41,988 42,524 Other operating expense 2,203 5,902 155 39,661 Operating loss $ (5,675 ) $ (20,752 ) $ (24,120 ) $ (73,239 ) Other (expense) income: Interest expense, net (13,606 ) (12,116 ) (40,890 ) (34,568 ) Other income (expense) 519 (82 ) 464 1,092 Loss before income taxes $ (18,762 ) $ (32,950 ) $ (64,546 ) $ (106,715 ) Income tax benefit 1,185 6,863 4,473 16,721 Consolidated net loss $ (17,577 ) $ (26,087 ) $ (60,073 ) $ (89,994 ) Less: Net loss attributable to noncontrolling interests — — — (440 ) Net loss attributable to common shareholders $ (17,577 ) $ (26,087 ) $ (60,073 ) $ (89,554 ) Loss per common share Net loss attributable to common shareholders: Basic $ (0.51 ) $ (1.00 ) $ (1.89 ) $ (3.46 ) Diluted $ (0.51 ) $ (1.00 ) $ (1.89 ) $ (3.46 ) Weighted-average number of common shares outstanding: Basic 34,353 25,993 31,811 25,862 Diluted 34,353 25,993 31,811 25,862 INOTIV, CONSOLIDATED BALANCE SHEETS(in thousands, except share amounts) June 30, September 30, 2025 2024 Assets Current assets: Cash and cash equivalents $ 6,215 $ 21,432 Trade receivables and contract assets, net of allowances for credit losses of $6,445 and $6,931, respectively 78,745 73,560 Inventories, net 45,074 18,173 Prepaid expenses and other current assets 43,535 50,248 Assets held for sale 2,016 — Total current assets 175,585 163,413 Property and equipment, net 182,335 188,328 Operating lease right-of-use assets, net 44,930 49,165 Goodwill 94,286 94,286 Other intangible assets, net 248,930 274,396 Other assets 13,671 11,773 Total assets $ 759,737 $ 781,361 Liabilities and shareholders' equity Current liabilities: Accounts payable $ 45,373 $ 33,526 Accrued expenses and other current liabilities 35,921 28,218 Fees invoiced in advance 40,251 41,986 Current portion of long-term operating lease 8,845 11,774 Current portion of long-term debt 6,206 3,538 Total current liabilities 136,596 119,042 Long-term operating leases, net 40,085 40,010 Long-term debt, less current portion, net of debt issuance costs 390,336 389,801 Other long-term liabilities 27,566 34,963 Deferred tax liabilities, net 21,369 27,041 Total liabilities 615,952 610,857 Shareholders' equity: Common shares, no par value: Authorized 74,000,000 shares at June 30, 2025 and at September 30, 2024; 34,354,251 issued and outstanding at June 30, 2025 and 26,015,129 at September 30, 2024 8,550 6,466 Additional paid-in capital 754,723 724,789 Accumulated deficit (622,261 ) (562,163 ) Accumulated other comprehensive income 2,773 1,412 Total equity 143,785 170,504 Total liabilities and shareholders' equity $ 759,737 $ 781,361 INOTIV, CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)(unaudited) Nine Months EndedJune 30, 2025 2024 Operating activities: Consolidated net loss $ (60,073 ) $ (89,994 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 41,988 42,524 Employee stock compensation expense 4,644 5,118 Changes in deferred taxes (5,835 ) (17,407 ) Provision for expected credit losses (451 ) (1,282 ) Amortization of debt issuance costs and original issue discount 3,862 2,575 Non-cash interest and accretion expense 9,176 5,553 Other non-cash operating activities 1,083 (711 ) Changes in operating assets and liabilities: Trade receivables and contract assets (4,338 ) 24,876 Inventories (26,846 ) 17,520 Prepaid expenses and other current assets 6,877 942 Operating lease right-of-use assets and liabilities, net 1,382 1,092 Accounts payable 11,384 (4,931 ) Accrued expenses and other current liabilities 3,340 2,254 Fees invoiced in advance (1,868 ) (17,017 ) Other asset and liabilities, net (9,085 ) 24,455 Net cash used in operating activities (24,760 ) (4,433 ) Investing activities: Capital expenditures (13,938 ) (17,015 ) Proceeds from sale of property and equipment 1,522 5,432 Net cash used in investing activities (12,416 ) (11,583 ) Financing activities: Payments on revolving credit facility (20,000 ) — Payments on senior term notes and delayed draw term loans (4,254 ) (2,073 ) Borrowings on revolving credit facility 20,000 — Issuance of common shares 27,524 — Other financing activities, net (1,187 ) (2,816 ) Net cash provided by (used in) financing activities 22,083 (4,889 ) Effect of exchange rate changes on cash and cash equivalents (124 ) (153 ) Net decrease in cash and cash equivalents (15,217 ) (21,058 ) Cash and cash equivalents at beginning of period 21,432 35,492 Cash and cash equivalents at end of period $ 6,215 $ 14,434 Supplemental disclosure of cash flow information: Cash paid for interest 30,950 $ 27,398 Income taxes paid, net 714 $ 1,517 INOTIV, OF GAAP TO NON-GAAPSELECT BUSINESS SEGMENT INFORMATION(In thousands)(Unaudited) Three Months Ended June 30, Nine Months Ended June 30, 2025 2024 2025 2024 DSA Revenue 48,150 44,219 136,304 135,548 Operating income 2,149 2,325 4,039 6,771 Operating income as a % of total revenue 1.6 % 2.2 % 1.1 % 1.9 % Add back: Depreciation and amortization 4,444 4,488 13,543 13,260 Restructuring costs (1) — 205 — 341 Startup costs (2) 591 772 1,708 2,569 Total non-GAAP adjustments to operating income 5,035 5,465 15,251 16,170 Non-GAAP operating income 7,184 7,790 19,290 22,941 Non-GAAP operating income as a % of DSA revenue 14.9 % 17.6 % 14.2 % 16.9 % Non-GAAP operating income as a % of total revenue 5.5 % 7.4 % 5.1 % 6.4 % RMS Revenue 82,533 61,567 238,578 224,774 Operating income (loss) 6,378 (7,447 ) 16,625 (32,973 ) Operating income (loss) as a % of total revenue 4.9 % (7.0 %) 4.4 % (9.2 %) Add back: Depreciation and amortization 9,365 9,401 27,953 28,781 Restructuring costs (1) 145 252 1,378 2,518 Amortization of inventory step up — 49 — 209 Legal Settlement (3) — — (7,550 ) — Other unusual, third party costs (4) 966 2,270 3,444 4,628 Resolution Agreement and Plea Agreement — 2,000 — 28,500 Total non-GAAP adjustments to operating income (loss) 10,476 13,972 25,225 64,636 Non-GAAP operating income 16,854 6,525 41,850 31,663 Non-GAAP operating income as a % of RMS revenue 20.4 % 10.6 % 17.5 % 14.1 % Non-GAAP operating income as a % of total revenue 12.9 % 6.2 % 11.2 % 8.8 % Unallocated Corporate Operating Loss (14,202 ) (15,630 ) (44,784 ) (47,037 ) Unallocated corporate operating loss as a % of total revenue (10.9) % (14.8) % (11.9) % (13.1) % Add back: Depreciation and amortization 176 230 492 483 Stock compensation expense 1,439 1,337 4,644 5,118 Acquisition and integration costs — — — 70 Total non-GAAP adjustments to operating loss 1,615 1,567 5,136 5,671 Non-GAAP operating loss (12,587 ) (14,063 ) (39,648 ) (41,366 ) Non-GAAP operating loss as a % of total revenue (9.6) % (13.3) % (10.6) % (11.5) % Total Revenue 130,683 105,786 374,882 360,322 Operating loss (5,675 ) (20,752 ) (24,120 ) (73,239 ) Operating loss as a % of total revenue (4.3) % (19.6) % (6.4) % (20.3) % Add back: Depreciation and amortization 13,985 14,119 41,988 42,524 Stock compensation expense 1,439 1,337 4,644 5,118 Restructuring costs (1) 145 457 1,378 2,859 Acquisition and integration costs — — — 70 Amortization of inventory step up — 49 — 209 Startup costs (2) 591 772 1,708 2,569 Legal Settlement (3) — — (7,550 ) — Other unusual, third party costs (4) 966 2,270 3,444 4,628 Resolution Agreement and Plea Agreement (5) — 2,000 — 28,500 Total non-GAAP adjustments to operating loss 17,126 21,004 45,612 86,477 Non-GAAP operating income 11,451 252 21,492 13,238 Non-GAAP operating income as a % of total revenue 8.8 % 0.2 % 5.7 % 3.7 % Adjustments to certain GAAP reported measures for the three and nine months ended June 30, 2025 and 2024 include, but are not limited to, the following: (1) For the three and nine months ended June 30, 2025, primarily represents non-cash impairment charges incurred in connection with the exit of multiple sites. For the three and nine months ended June 30, 2024, primarily represents costs incurred in connection with the exit of multiple sites and the enablement of the in-house integration of Inotiv's North American transportation operations.(2) For the three and nine months ended June 30, 2025 and 2024, primarily represents costs related to the development and initiation of new service offerings that are not yet revenue generating for the respective periods.(3) For the nine months ended June 30, 2025, represents the settlement payment we received from FNI.(4) For the three and nine months ended June 30, 2025, primarily represents third party and legal costs incurred in connection with the Resolution Agreement and Plea Agreement and fees incurred in connection with the FNI settlement discussed above. For the three and nine months ended June 30, 2024, primarily represents legal costs incurred in connection with the DOJ investigation and certain remediation costs. (5) For the three and nine months ended June 30, 2024, represents a charge related to the Resolution Agreement and Plea Agreement related to the DOJ investigation. INOTIV, OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA(In thousands)(Unaudited) Three Months EndedJune 30, Nine Months EndedJune 30, 2025 2024 2025 2024 GAAP Consolidated Net Loss $ (17,577 ) $ (26,087 ) $ (60,073 ) $ (89,994 ) Adjustments Interest expense, net 13,606 12,116 40,890 34,568 Income tax benefit (1,185 ) (6,863 ) (4,473 ) (16,721 ) Depreciation and amortization 13,985 14,119 41,988 42,524 Stock compensation expense 1,439 1,337 4,644 5,118 Startup costs (1) 591 772 1,708 2,569 Restructuring costs (2) 145 457 1,378 2,859 Unrealized foreign exchange (gain) loss (527 ) 33 (43 ) (576 ) Amortization of inventory step up — 49 — 209 Loss (gain) on disposition of assets 133 (79 ) 230 (938 ) Legal Settlement (3) — — (7,550 ) — Other unusual, third party costs (4) 966 2,270 3,444 4,698 Resolution Agreement and Plea Agreement (5) — 2,000 — 28,500 Adjusted EBITDA $ 11,576 $ 124 $ 22,143 $ 12,816 GAAP consolidated net loss as a percent of total revenue (13.5 )% (24.7 )% (16.0 )% (25.0 )% Adjustments as a percent of total revenue 22.3 % 24.8 % 21.9 % 28.5 % Adjusted EBITDA as a percent of total revenue 8.9 % 0.1 % 5.9 % 3.6 % Adjustments to certain GAAP reported measures for the three and nine months ended June 30, 2025 and 2024 include, but are not limited to, the following: (1) For the three and nine months ended June 30, 2025 and 2024, primarily represents costs related to the development and initiation of new service offerings that are not yet revenue generating for the respective periods.(2) For the three and nine months ended June 30, 2025, primarily represents non-cash impairment charges incurred in connection with the exit of multiple sites. For the three and nine months ended June 30, 2024, primarily represents costs incurred in connection with the exit of multiple sites and the enablement of the in-house integration of Inotiv's North American transportation operations.(3) For the nine months ended June 30, 2025, represents the settlement payment we received from FNI.(4) For the three and nine months ended June 30, 2025, primarily represents third party and legal costs incurred in connection with the Resolution Agreement and Plea Agreement and fees incurred in connection with the FNI settlement discussed above. For the three and nine months ended June 30, 2024, primarily represents legal costs incurred in connection with the DOJ investigation and certain remediation costs. (5) For the three and nine months ended June 30, 2024, represents a charge related to the Resolution Agreement and Plea Agreement related to the DOJ in to access your portfolio
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North American Construction Group Ltd. Announces $2.0 Billion, Five-Year Contract in Queensland, Australia
ACHESON, Alberta, Aug. 06, 2025 (GLOBE NEWSWIRE) — North American Construction Group Ltd. ('NACG' or 'the Company') (TSX: today announced that the MacKellar Group ('MacKellar'), a wholly owned subsidiary of NACG, has been awarded an amended and extended five-year contract by an existing client, a leading coal producer in the state of Queensland, Australia. The extended mine services contract has an expiry date of April 30, 2030, provides total backlog of approximately $2.0 billion and is the largest contract signed in the Company's history. The extension results in an $800 million increase to backlog in relation to the original contract. The amendments introduce certain risk and reward mechanisms that contractually align NACG with the producer to consistently operate effectively. The contract does not contemplate growth capital with backlog values generally based on the existing run-rate of the mine. This incremental value results in total contractual backlog for the Company of $4.0 billion as of March 31, 2025, on a proforma basis, compared to the $3.2 billion reported in the 2025 Q1 MD&A. This level of backlog sets another Company record, surpassing the previous record of $3.5 billion reported on December 31, 2024. The contractual backlog in place for the Australian operations, $3.0 billion as at March 31, 2025, on a proforma basis, now provides full top-line visibility to 2029 at current levels. 'Signing the largest contract in our history is a testament to the consistent execution and trusted partnerships we've built,' stated Joe Lambert, President and CEO of NACG. 'With record-high backlog, including over $3.0 billion from Australia alone, we have exceptional revenue visibility through the decade and a rock-solid foundation for long-term growth.' 'This is an exciting extension for the MacKellar Group with it being a tangible demonstration of the successful and productive relationship we've had with this customer since inception in 2022,' stated Barry Palmer, COO of NACG. 'We are devoted to and aligned with this customer's continued success and look forward to delivering tangible results on site.' About the MacKellar Group Operating since 1966, and as a wholly owned subsidiary of NACG since 2023, MacKellar has an enviable reputation in Australia for performance and reliability. MacKellar specializes in heavy earthmoving equipment solutions and has a proud history of working on major mining and civil earthwork projects. About NACG NACG is one of Australia and Canada's largest providers of heavy construction and mining services. For over 70 years, NACG has provided services to mining, resource, and infrastructure construction markets. Jason Veenstra, CPA, CAChief Financial OfficerP: 780.960.7171 E: [email protected]
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Centerra Gold Announces Attractive Economics on the Goldfield Project; Proceeding with Project Development and Construction Activities
By GlobeNewswire Published on August 7, 2025, 02:00 IST The Goldfield Project is expected to have after-tax NPV 5% of $245M and IRR of 30% This news release contains forward-looking information about expected future events that is subject to risks and assumptions set out in the 'Cautionary Statement on Forward-Looking Information' below. All figures are in United States dollars unless otherwise stated. All production figures reflect payable metal quantities and are on a 100% basis, unless otherwise stated. For references denoted with NG, refer to the 'Non-GAAP Financial Measures' disclosures at the end of this news release for a description of these measures. TORONTO, Aug. 06, 2025 (GLOBE NEWSWIRE) — Centerra Gold Inc. ('Centerra' or the 'Company') (TSX: CG) (NYSE: CGAU) is pleased to announce that it has completed a technical study of its Goldfield project ('Goldfield' or 'the Project') in Nevada, which confirms attractive economics for the Project, including an after-tax net present value (5%) ('NPV 5% ') of $245 million and an after-tax internal rate of return ('IRR') of 30%, using a long-term gold price of $2,500 per ounce and includes the impact of gold hedges on a portion of production in 2029 and 2030. Centerra is proceeding with the project and will immediately commence detailed engineering and early procurement activities for construction. President and CEO, Paul Tomory, commented, 'We are pleased to be advancing with development and construction at the Goldfield project. Over the last several months, Centerra has undertaken additional technical work and project optimizations that have significantly enhanced Goldfield's value proposition and have de-risked the project. Favourable gold prices combined with these recent developments have improved the Project's economics, enabling us to move forward with execution. We believe Goldfield is well positioned to deliver strong returns. The project is expected to be funded from Centerra's existing liquidity and is located in a top tier mining jurisdiction, with an approximate 7-year mine life, average annual gold production of around 100,000 ounces in peak production years at an all-in sustaining costNG ('AISC') of approximately $1,392 per ounce, and a competitive initial capital cost of about $250 million. First production from Goldfield is expected by the end of 2028, which would grow Centerra's near-term gold production profile, generate robust cash flow and deliver significant value to shareholders. We believe Goldfield to be ideally positioned in our project development pipeline, bringing gold production online as we continue to advance development of the longer-life Mount Milligan and Kemess gold-copper assets in British Columbia.' Goldfield Highlights Attractive economics with low execution risk in a top tier mining jurisdiction. Goldfield is expected to yield an after-tax NPV 5% of $245 million and after-tax IRR of 30%, using a long-term gold price of $2,500 per ounce, which includes the impact of gold hedges on a portion of production in 2029 and 2030 to lock in strong margins, safeguard project economics in the early years of the project, and expedite the capital payback period. The initial capital investment at Goldfield is $252 million, including approximately $40 million in pre-production stripping and other costs, and the Project is expected to benefit from a short timeline to first production by the end of 2028 and low execution risk given its relatively simple process flowsheet. The Project is located in a historic mining district of Nevada, one of the most reliable mining jurisdictions, offering a stable regulatory environment, skilled workforce, and strong support for resource development. Goldfield is expected to yield an after-tax NPV of $245 million and after-tax IRR of 30%, using a long-term gold price of $2,500 per ounce, which includes the impact of gold hedges on a portion of production in 2029 and 2030 to lock in strong margins, safeguard project economics in the early years of the project, and expedite the capital payback period. The initial capital investment at Goldfield is $252 million, including approximately $40 million in pre-production stripping and other costs, and the Project is expected to benefit from a short timeline to first production by the end of 2028 and low execution risk given its relatively simple process flowsheet. The Project is located in a historic mining district of Nevada, one of the most reliable mining jurisdictions, offering a stable regulatory environment, skilled workforce, and strong support for resource development. Supportive gold price environment has enhanced project returns. Since the start of 2025, the gold price has increased by 30%. As a result, long-term gold price estimates have increased to $2,500 per ounce, which is the gold price assumption for Goldfield's economics. In addition, Centerra has implemented a targeted gold hedging strategy on 50% of production in 2029 and 2030, with a gold price floor of $3,200 per ounce and an average gold price cap of $4,435 per ounce in 2029 and $4,705 per ounce in 2030, at no cost to the Company. This hedging strategy is expected to allow Centerra to lock in strong margins to safeguard project economics and support predictable cash flow during the ramp-up period, while maintaining exposure to rising gold prices for the life of mine ('LOM'). For the LOM, almost 80% of the planned production remains unhedged and fully exposed to market gold prices. Since the start of 2025, the gold price has increased by 30%. As a result, long-term gold price estimates have increased to $2,500 per ounce, which is the gold price assumption for Goldfield's economics. In addition, Centerra has implemented a targeted gold hedging strategy on 50% of production in 2029 and 2030, with a gold price floor of $3,200 per ounce and an average gold price cap of $4,435 per ounce in 2029 and $4,705 per ounce in 2030, at no cost to the Company. This hedging strategy is expected to allow Centerra to lock in strong margins to safeguard project economics and support predictable cash flow during the ramp-up period, while maintaining exposure to rising gold prices for the life of mine ('LOM'). For the LOM, almost 80% of the planned production remains unhedged and fully exposed to market gold prices. Additional technical work on crushing strategy optimization resulted in a positive impact on project economics. Over the last several months, Centerra advanced technical work to evaluate hybrid processing alternatives which led to an optimized process flowsheet. High-grade material is expected to be processed through a three-stage semi-portable crushing circuit to maximize recovery, and lower-grade material is expected to be processed as run-of-mine to maintain low capital intensity. The selective routing of mineralized material to the most economically appropriate path substantially improved average recoveries, from mid-60% to approximately 76%, and resulted in a positive impact to the overall project returns. Over the last several months, Centerra advanced technical work to evaluate hybrid processing alternatives which led to an optimized process flowsheet. High-grade material is expected to be processed through a three-stage semi-portable crushing circuit to maximize recovery, and lower-grade material is expected to be processed as run-of-mine to maintain low capital intensity. The selective routing of mineralized material to the most economically appropriate path substantially improved average recoveries, from mid-60% to approximately 76%, and resulted in a positive impact to the overall project returns. Goldfield is expected to grow Centerra's near-term gold production profile, making it a strategic asset as the Company continues to advance its longer-life gold-copper growth pipeline. The Project is expected to provide an increase in gold production, which will help offset natural declines at Öksüt, and ensure continuity as Centerra advances its next phase of long-life, gold-copper, cornerstone organic growth projects in British Columbia at Mount Milligan and Kemess. Goldfield Project Summary Goldfield is a conventional open-pit, heap leach project located in Nevada, a top tier mining jurisdiction. Centerra has completed a technical study which demonstrated a NPV 5% of $245 million and IRR of 30%, using an assumed long-term gold price of $2,500 per ounce as well as gold hedges on a portion of production in 2029 and 2030. The technical study includes a mine life of approximately seven years, average annual gold production of 100,000 ounces for the peak production years between 2029 and 2032, at an AISCNG of $1,392 per ounce, and an initial capital cost of $252 million, which can be funded from Centerra's existing liquidity. First production is expected by the end of 2028, and will come from four open pits on the property, of which the Gemfield pit is approximately 80% of total LOM production. A summary of the production and cost profile is included in the table below. Goldfield Production and Cost Profile Total Mined(3) (kt) Grade (g/t) Gold Production (koz) Production Cost ($/oz) AISCNG ($/oz) 2028(1) 18,633 0.70 22 – – 2029 20,592 0.87 114 1,003 1,419 2030 19,958 0.77 120 965 1,194 2031 18,717 0.76 106 1,040 1,269 2032 14,697 0.48 90 1,023 1,306 2033 5,488 0.38 47 1,169 1,325 2034 996 0.30 29 1,000 1,144 2035(2) – – 6 1,596 1,833 Total LOM 99,079 0.66 533 1,077 1,392 (1) 2028 is a partial year of operation with first production expected by the end of the year. (2) 2035 is a partial year of operation with residual leaching. (3) Total tonnes mined includes both ore and waste. The strip ratio is 1.97. Goldfield Gold Hedging Strategy Centerra has implemented a targeted gold hedging strategy on 50% of gold production in 2029 and 2030, at no cost to the Company. This hedging strategy is expected to allow Centerra to lock in strong margins to safeguard project economics and support predictable cash flow during the ramp-up period, while maintaining exposure to rising gold prices for the LOM. For the LOM, almost 80% of the planned production remains unhedged and fully exposed to market gold prices. The table below outlines the hedging strategy. Hedged Production (kozs) Unhedged Production (kozs) Hedge Floor Price ($/oz) Average Hedge Ceiling Price ($/oz) 2029 57 57 3,200 4,435 2030 60 60 3,200 4,705 Capital ExpendituresNG Goldfield is expected to require an investment of approximately $252 million in total initial non-sustaining capital expendituresNG. A breakdown of the initial capital is included in the table below. Goldfield Initial Non-Sustaining CapitalNG Breakdown Total ($M) Mine 10 Crushing 22 Processing 34 Power Supply and Electrical 26 Heap Leach 17 Site General 27 Subtotal Infrastructure Directs 136 Indirects 40 Contingency 35 Subtotal Infrastructure 211 Pre-production Stripping and Other Costs 41 Total Initial Non-Sustaining CapitalNG 252 In 2025, following approval of the Project, Centerra expects to spend between $2 to $5 million on study costs and field campaigns to advance upcoming detailed engineering, which is not included in initial non-sustaining capitalNG. In 2026, the focus for initial non-sustaining capital expendituresNG is expected to be on finalizing engineering studies, launching long-lead procurement and initiating site establishment works. Major construction will advance in 2027, including the heap leach pad, crushing and processing circuits. Construction and pre-commissioning will be finalized in 2028, before commissioning works are initiated to meet first production by the end of 2028. With major construction advancing in 2027, approximately 85% of the initial non-sustaining capitalNG is expected to be evenly weighted across 2027 and 2028. Sustaining capital expendituresNG following first production are expected to be approximately $136 million, of which approximately $100 million is related to capitalized deferred stripping and the remainder is primarily related to the heap leach pad expansion, haul road development and processing maintenance. Sustaining capital expendituresNG are included in the AISCNG figures throughout the mine's operating period. Centerra is expected to use contract mining at Goldfield to benefit from several strategic and economic advantages that align with the Project's scale and development timeline. By leveraging third-party mining contractors, Centerra's plan has optimized initial capital requirements and mobilization timelines, and is expected to mitigate the execution risks during the early phases of operation. Figure 1: Main Site Infrastructure and Gemfield Overview Mineral Reserve and Mineral Resource Estimate Four mineralized zones have been outlined as part of the mine plan: Goldfield Main, Gemfield, Jupiter, and McMahon Ridge, from which the Company is targeting oxide and transition material. In February 2025, Centerra published an initial measured and indicated gold mineral resource of 706,000 ounces as of December 31, 2024. Mineral resources, inclusive of reserves at the Project have increased due to changes in metal price, recoveries and processing assumptions. The table below outlines the mineral reserve and resource at Goldfield as of June 30, 2025. Goldfield Gold Mineral Reserve and Resource Estimate (June 30, 2025) Tonnes (kt) Gold Grade (g/t) Contained Gold (koz) Mineral Reserves Proven 9,944 1.04 334 Probable 23,404 0.49 372 Total Proven and Probable Reserves 33,348 0.66 706 Mineral Resources (inclusive of Mineral Reserves) Measured 10,418 1.08 363 Indicated 26,616 0.50 432 Measured and Indicated Resources 37,034 0.67 794 Inferred Resources 2,121 0.33 23 NOTE: Refer to 'Reserve and Resource Additional Footnotes' at the end of this news release. Totals may not sum due to rounding. Figure 2: Plan view of the four mineralized zones – Goldfield Main, Gemfield, Jupiter, McMahon Ridge Figure 3: Cross section view of the Gemfield deposit, looking north Permitting and Community Relations Centerra continues to advance permitting activities for Goldfield in alignment with its staged development approach. The Project has existing permits for the Gemfield deposit, which will require minor amendments. The Modified Plan of Operations for the Gemfield deposit was submitted in early August 2025, with associated air and water pollution and control permits to follow shortly. Permit applications for Goldfield and McMahon Ridge are expected to be submitted in accordance with the approved mine plan sequence and align with projected development timelines. The Goldfield project benefits from strong support from local communities, underpinned by an executed Development Agreement with Esmeralda County that reinforces Centerra's commitments to community partnership and responsible development. The Project is expected to deliver substantial long-term benefits to the local communities and the broader region over the life of the mine. Centerra expects to invest over $300 million on labour, supplies and services over the life of the mine. The construction and operations will support a range of local employment opportunities, with a target to prioritize Nevada-based hiring and procurement where feasible. The company expects to create approximately 300 to 400 jobs during construction, and 250 to 300 jobs during operations. In addition, the Project will contribute approximately $100 million in direct taxes over its life. This includes state mining-specific taxes, federal income taxes, local property tax, sales tax on equipment and materials, and other operational levies. Strategic investments in community initiatives will also further enhance regional development, ensuring that the benefits of the project are shared broadly and sustainably through the life of the mine. Sensitivity Analysis Goldfield demonstrates attractive economics at an assumed long-term gold price of $2,500 per ounce. The sensitivity to changes in gold prices is illustrated in the table below. Project Economics Gold Price ($/oz) $2,000 (unhedged / hedged) $2,500 (unhedged / hedged) $3,000 (unhedged / hedged) $3,400 $3,800 NPV 5% $5M / $111M $184M / $245M $362M / $380M $486M $605M IRR 5% / 18% 24% / 30% 37% / 39% 47% 55% Project Assumptions The economic analysis of the Project was performed using the following assumptions and basis: Economic assessment of the project uses a discounted cash flow approach. Cash flows are taken to occur at the mid-year of each period. NPV is calculated by discounting LOM cash flows from 2026 to the end of mine life to December 31, 2035, using 5% discount rate, and includes the impact of gold hedges on a portion of production in 2029 and 2030. Refer to the 'Goldfield Gold Hedging Strategy' section above for details. Project economics are based on a valuation date of January 1, 2026. A flat price of $2,500/oz of gold is assumed throughout the LOM. All costs presented are in constant US dollars as of June 30, 2025 with no price inflation or escalation factors applied. No salvage values are assumed for the capital equipment at the end of mine life. Reclamation and closure costs for the site were estimated at a total of $31 million. Reserve and Resource Additional Footnotes General A conversion factor of 31.1035 grams per troy ounce of gold and 0.9072 metric tonnes per short ton are used in the mineral reserve and resource estimates. Samples were prepared and analyzed by independent, ISO-accredited laboratories. Quality control programs include the insertion of blanks, certified reference materials, duplicate samples, internal and external reviews and checks by umpire laboratories. Development of geological and mineralized domains, geostatistical analysis, block model construction and grade estimates were done using industry standard methods and commercially available software packages. Assays were composited and capped; block grades were estimated using ordinary kriging. The following formula was used to calculate cut-off grade for each mineralized zone: [Processing cost + G&A cost] / [Recovery * (Gold Price * Payability Factor * (1- Royalty%) – Selling Cost)] where G&A cost is $0.55/t, payability factor is 99.9% and selling cost is $5/oz. Reserves Mineral reserves are reported in metric tonnes based on a gold price of $2,000/oz. Mineral reserve estimates are supported by mineable pit designs, detailed LOM plan, equipment simulations, capital and operating cost estimates, and financial analysis. The Gemfield pit includes a volume of 'must take' mineralized material (662,157 tonnes and 6,469 contained ounces) for permitting and closure purposes which lies outside the optimized pit shell. This material is included in the Gemfield reserve pit and economic analysis. Lersch-Grossman (LG) pit shells were generated for each mineralized zone that guided pit design. Pit shell inputs include average mining cost, incremental haulage cost, overall pit slope angles, metallurgical recoveries, processing costs and costs of sales. Metallurgical testing for each mineralized zone was used to determine recoveries and processing costs. Pit shell optimization inputs are shown below. Mining Cost: A base mining cost of $3.47/t was applied with an incremental haulage costs of $0.31/t and $0.35/t applied to Goldfield Main and McMahon Ridge respectively. A general and administrative ('G&A') cost of $0.55/t was applied for constraining the pit shell. A base mining cost of $3.47/t was applied with an incremental haulage costs of $0.31/t and $0.35/t applied to Goldfield Main and McMahon Ridge respectively. A general and administrative ('G&A') cost of $0.55/t was applied for constraining the pit shell. Pit Slope Angles: Overall slope angles were assumed to be 35 degrees for all mineralized zones, except Goldfield Main which varied between 25 and 35 degrees depending on slope orientation. Inter-ramp pit slope used in designs are variable by rock type and were determined by drilling, laboratory testing, and geotechnical evaluations of the different zones. Overall slope angles were assumed to be 35 degrees for all mineralized zones, except Goldfield Main which varied between 25 and 35 degrees depending on slope orientation. Inter-ramp pit slope used in designs are variable by rock type and were determined by drilling, laboratory testing, and geotechnical evaluations of the different zones. Processing Costs: Processing costs were estimated based on crushing and metallurgical testing to determine sizing of equipment, reagent consumption, placement of material, and leaching operations. Gemfield: run-of-mine ('ROM') $3.95/t, crushed $5.97/t; Goldfield Main: ROM $4.87/t, crushed $6.90/t; Jupiter: ROM $3.03/t, crushed $5.06/t; McMahon Ridge: ROM $3.43/t for oxide and $4.99/t for transition, crushed $5.46/t for oxide and $7.02/t for transition material. Processing costs were estimated based on crushing and metallurgical testing to determine sizing of equipment, reagent consumption, placement of material, and leaching operations. Gemfield: run-of-mine ('ROM') $3.95/t, crushed $5.97/t; Goldfield Main: ROM $4.87/t, crushed $6.90/t; Jupiter: ROM $3.03/t, crushed $5.06/t; McMahon Ridge: ROM $3.43/t for oxide and $4.99/t for transition, crushed $5.46/t for oxide and $7.02/t for transition material. Recovery: Recoveries were estimated by laboratory testing of representative samples including bottle roll and column leach tests. Gemfield (0.1-0.8 g/t Au): ROM 69%, crushed 87%; Gemfield (>0.8 g/t Au): ROM 54%, crushed 78%; Goldfield Main: ROM 61%, crushed 51% for transition or 82% for oxide material; Jupiter: ROM 56%, crushed 77%; McMahon Ridge: ROM 56%, crushed 61% for transition or 77% for oxide material. Recoveries were estimated by laboratory testing of representative samples including bottle roll and column leach tests. Gemfield (0.1-0.8 g/t Au): ROM 69%, crushed 87%; Gemfield (>0.8 g/t Au): ROM 54%, crushed 78%; Goldfield Main: ROM 61%, crushed 51% for transition or 82% for oxide material; Jupiter: ROM 56%, crushed 77%; McMahon Ridge: ROM 56%, crushed 61% for transition or 77% for oxide material. Cut-off Grades: Gemfield: ROM 0.11 g/t, crushed 0.12 g/t; Goldfield Main: ROM 0.16 g/t, crushed 0.15 g/t for oxide or 0.24 g/t for transition material; Jupiter: ROM 0.10 g/t, crushed 0.12 g/t; McMahon Ridge: ROM 0.10 g/t, crushed 0.12 g/t for oxide or 0.20 g/t for transition material. Gemfield: ROM 0.11 g/t, crushed 0.12 g/t; Goldfield Main: ROM 0.16 g/t, crushed 0.15 g/t for oxide or 0.24 g/t for transition material; Jupiter: ROM 0.10 g/t, crushed 0.12 g/t; McMahon Ridge: ROM 0.10 g/t, crushed 0.12 g/t for oxide or 0.20 g/t for transition material. No dilution factor was applied as the selective mining unit ('SMU') is expected to account for operational dilution and reflects the equipment sizing and capabilities. Royalties applied: Gemfield 5%, Goldfield Main 4%, Jupiter 2.9%, McMahon Ridge 3% Resources Mineral resources are reported in metric tonnes based on a gold price of $2,400/oz. The open pit mineral resources are constrained by a pit shell and are reported based on cut-off grades reported below that take into consideration metallurgical recoveries and selling costs. Mineral resources are reported inclusive of reserves. Mining Cost: A base mining cost of $3.43/t was used with an incremental haulage costs of $0.31/t and $0.35/t applied to Goldfield Main and McMahon Ridge respectively. A G&A cost of $0.55/t was applied for constraining the pit shell. A base mining cost of $3.43/t was used with an incremental haulage costs of $0.31/t and $0.35/t applied to Goldfield Main and McMahon Ridge respectively. A G&A cost of $0.55/t was applied for constraining the pit shell. Processing Costs: Processing costs were estimated based on crushing and metallurgical testing to determine sizing of equipment, reagent consumption, placement of material, and leaching operations. Goldfield Main: ROM $3.95/t, crushed $6.27/t; Goldfield: ROM $4.87/t, crushed $7.20/t; Jupiter: ROM $3.03/t, crushed $5.36/t; McMahon Ridge: ROM $3.43/t, crushed $5.75/t for oxide and $7.32/t for transition material. Processing costs were estimated based on crushing and metallurgical testing to determine sizing of equipment, reagent consumption, placement of material, and leaching operations. Goldfield Main: ROM $3.95/t, crushed $6.27/t; Goldfield: ROM $4.87/t, crushed $7.20/t; Jupiter: ROM $3.03/t, crushed $5.36/t; McMahon Ridge: ROM $3.43/t, crushed $5.75/t for oxide and $7.32/t for transition material. Cut-off Grades: Gemfield: ROM 0.08 g/t, crushed 0.10 g/t; Goldfield Main: ROM 0.12 g/t, crushed 0.12 g/t for oxide and 0.20 g/t for transition material; Jupiter: ROM 0.08 g/t, crushed 0.10 g/t; McMahon Ridge: ROM 0.09 g/t, crushed 0.11 g/t for oxide and 0.17 g/t for transition material. Gemfield: ROM 0.08 g/t, crushed 0.10 g/t; Goldfield Main: ROM 0.12 g/t, crushed 0.12 g/t for oxide and 0.20 g/t for transition material; Jupiter: ROM 0.08 g/t, crushed 0.10 g/t; McMahon Ridge: ROM 0.09 g/t, crushed 0.11 g/t for oxide and 0.17 g/t for transition material. No royalty costs were applied to the resource estimate. Sulphide Resources: Laboratory testing has shown that material classified as sulphide can be recovered from the Goldfield and McMahon Ridge zones with crushing. Sulphide material contained in the constraining pit shell is included in the resource. Processing costs, recoveries and cut-off grades for sulphide materials as follows – Goldfield Main: Crushed processing cost $9.59/t, recovery 51%, cut-off grade 0.26 g/t; McMahon Ridge: Crushed processing cost $7.89/t, recovery 37%, cut-off grade 0.30 g/t. Mineral reserve and mineral resource estimates are forward-looking information and are based on key assumptions and are subject to material risk factors. If any event arising from these risks occurs, the Company's business, prospects, financial condition, results of operations or cash flows, and the market price of Centerra's shares could be adversely affected. Additional risks and uncertainties not currently known to the Company, or that are currently deemed immaterial, may also materially and adversely affect the Company's business operations, prospects, financial condition, results of operations or cash flows, and the market price of Centerra's shares. See the section entitled 'Risk That Can Affect Centerra's Business' in the Company's Management's Discussion and Analysis (MD&A) for the three months ended June 30, 2025, available on SEDAR+ at and EDGAR at and see also the discussion below under the heading 'Cautionary Statement on Forward-Looking Information'. Qualified Person – Mineral Reserves and Resources Christopher Richings, Professional Engineer, member of the Engineers and Geoscientists British Columbia and Centerra's Vice President, Technical Services, has reviewed and approved the scientific and technical information contained in this news release. Mr. Richings is a Qualified Person within the meaning of NI 43-101. All mineral reserve and resources have been estimated in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and NI 43-101. About Centerra Gold Centerra Gold Inc. is a Canadian-based gold mining company focused on operating, developing, exploring and acquiring gold and copper properties in North America, Türkiye, and other markets worldwide. Centerra operates two mines: the Mount Milligan Mine in British Columbia, Canada, and the Öksüt Mine in Türkiye. The Company also owns the Kemess Project in British Columbia, Canada, the Goldfield Project in Nevada, United States, and owns and operates the Molybdenum Business Unit in the United States and Canada. Centerra's shares trade on the Toronto Stock Exchange ('TSX') under the symbol CG and on the New York Stock Exchange ('NYSE') under the symbol CGAU. The Company is based in Toronto, Ontario, Canada. For more information: Lisa WilkinsonVice President, Investor Relations & Corporate Communications(416) 204-3780 [email protected] Additional information on Centerra is available on the Company's website at on SEDAR+ at and EDGAR at Cautionary Statement on Forward-Looking Information All statements, other than statements of historical fact contained or incorporated by reference in this news release, which address events, results, outcomes or developments that the Company expects to occur are, or may be deemed to be, forward looking information or forward-looking statements within the meaning of certain securities laws, including the provisions of the Securities Act (Ontario) and the provisions for 'safe harbor' under the United States Private Securities Litigation Reform Act of 1995 and are based on expectations, estimates and projections as of the date of this news release. Such forward-looking information involves risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking statements are generally, but not always, identified by the use of forward-looking terminology such as 'assume', 'believes', 'commenced', 'continue', 'estimate', 'evaluate', 'expect', 'finalizing', 'focus', 'forecast', 'future', 'ongoing', 'optimize', 'plan', 'potential', 'project', 'target' or 'update', or variations of such words and phrases and similar expressions or statements that certain actions, events or results 'may', 'could', 'would' or 'will' be taken, occur or be achieved or the negative connotation of such terms. Such statements include but may not be limited to: the development and construction of Goldfield and the ability of the Company to enhance its value proposition including delivering strong returns; Goldfield's life of mine, average annual production and costs including its initial capital costs and the expectation to fund this from the Company's existing liquidity; the timing of first production at Goldfield and the impact it would have on Centerra's production profile, cash flow and value to shareholders; the economics for the Goldfield Project and the ability of gold hedges to lock in strong margins, safeguard project economics and expedite the capital payback period; the capital investment required at Goldfield and any benefits realized from its short timeline to first production and its flowsheet; the results and cost of any further studies and field campaigns; the ability to procure long-lead items required to construct and develop Goldfield; the ability of the Company to economically source skilled contract miners; the estimation of mineral reserves and resources, including inferred mineral resources, at Goldfield and the potential of eventual economic extraction of minerals from the project; the identification of future mineral reserves or resources at the project; the Company's ability to convert existing mineral resources into categories of mineral resources or mineral reserves of increased geological confidence; future exploration potential; and the future success of Goldfield. The Company cautions that forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by the Company at the time of making such statements, are inherently subject to significant business, economic, technical, legal, political and competitive uncertainties and contingencies, which may prove to be incorrect, include but are not limited to: there being no significant disruptions affecting the activities of the Company whether due to extreme weather events and other or related natural disasters, labour disruptions, supply disruptions, power disruptions, damage to equipment or otherwise; permitting and development of the project being consistent with the Company's expectations; political and legal developments being consistent with its current expectations; the accuracy of the current mineral resource estimates of the Company; certain price assumptions for gold and foreign exchange rates; the Company's future relationship with Indigenous groups being consistent with the Company's expectations; and inflation and prices for diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent with anticipated levels. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information. Market price fluctuations in gold and other metals, as well as increased capital or production costs or reduced recovery rates may render ore reserves containing lower grades of mineralization uneconomic and may ultimately result in a restatement of mineral reserves. The extent to which mineral resources may ultimately be reclassified as proven or probable mineral reserves is dependent upon the demonstration of their profitable recovery. Economic and technological factors, which may change over time, always influence the evaluation of mineral reserves or mineral resources. Centerra has not adjusted mineral resource figures in consideration of these risks and, therefore, Centerra can give no assurances that any mineral resource estimate will ultimately be reclassified as proven and probable mineral reserves. Mineral resources are not mineral reserves, and do not have demonstrated economic viability, but do have reasonable prospects for economic extraction. Measured and indicated mineral resources are sufficiently well defined to allow geological and grade continuity to be reasonably assumed and permit the application of technical and economic parameters in assessing the economic viability of the resource. Inferred mineral resources are estimated on limited information not sufficient to verify geological and grade continuity or to allow technical and economic parameters to be applied. Inferred mineral resources are too speculative geologically to have economic considerations applied to them to enable them to be categorized as mineral reserves. There is no certainty that mineral resources of any category can be upgraded to mineral reserves through continued exploration. Centerra's mineral reserve and mineral resource figures are estimates, and Centerra can provide no assurances that the indicated levels of gold will be produced, or that Centerra will receive the metal prices assumed in determining its mineral reserves. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results, and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While Centerra believes that these mineral reserve and mineral resource estimates are well established, and the best estimates of Centerra's management, by their nature mineral reserve and mineral resource estimates are imprecise and depend, to a certain extent, upon analysis of drilling results and statistical inferences, which may ultimately prove unreliable. If Centerra's mineral reserve or mineral reserve estimates for its properties are inaccurate or are reduced in the future, this could have an adverse impact on Centerra's future cash flows, earnings, results, or operations and financial condition. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those made in our other filings with the securities regulators of Canada and the United States including, but not limited to, those set out in the Company's latest 40-F/Annual Information Form and Management's Discussion and Analysis, each under the heading 'Risk Factors', which are available on SEDAR+ ( or on EDGAR ( The foregoing should be reviewed in conjunction with the information, risk factors and assumptions found in this news release. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether written or oral, or whether as a result of new information, future events or otherwise, except as required by applicable law. Other Information Christopher Richings, Professional Engineer, member of the Engineers and Geoscientists British Columbia and Centerra's Vice President, Technical Services, has reviewed and approved the scientific and technical information contained in this news release. Mr. Richings is a 'qualified person' within the meaning of the Canadian Securities Administrator's NI 43-101 Standards of Disclosure for Mineral Projects. Non-GAAP Financial Measures This document contains 'specified financial measures' within the meaning of NI 52-112, specifically the non-GAAP financial measures, non-GAAP ratios and supplementary financial measures described below. Management believes that the use of these measures assists analysts, investors and other stakeholders of the Company in understanding the costs associated with producing gold and copper, understanding the economics of gold and copper mining, assessing operating performance, the Company's ability to generate free cash flow from current operations and on an overall Company basis, and for planning and forecasting of future periods. However, the measures have limitations as analytical tools as they may be influenced by the point in the life cycle of a specific mine and the level of additional exploration or other expenditures a company has to make to fully develop its properties. The specified financial measures used in this document do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers, even as compared to other issuers who may be applying the World Gold Council ('WGC') guidelines. Accordingly, these specified financial measures should not be considered in isolation, or as a substitute for, analysis of the Company's recognized measures presented in accordance with IFRS. Definitions The following is a description of the non-GAAP financial measures, non-GAAP ratios and supplementary financial measures used in this document: All-in sustaining costs on a by-product basis per ounce is a non-GAAP ratio calculated as all-in sustaining costs on a by-product basis divided by ounces of gold sold. All-in sustaining costs on a by-product basis is a non-GAAP financial measure calculated as the aggregate of production costs as recorded in the consolidated statements of earnings, refining and transport costs, the cash component of capitalized stripping and sustaining capital expenditures, lease payments related to sustaining assets, corporate general and administrative expenses, accretion expenses, asset retirement depletion expenses, copper and silver revenue and the associated impact of hedges of by-product sales revenue. When calculating all-in sustaining costs on a by-product basis, all revenue received from the sale of copper from the Mount Milligan Mine, as reduced by the effect of the copper stream, is treated as a reduction of costs incurred. A reconciliation of all-in sustaining costs on a by-product basis to the nearest IFRS measure is set out below. Management uses these measures to monitor the cost management effectiveness of each of its operating mines. Sustaining capital expenditures and Non-sustaining capital expenditures are non-GAAP financial measures. Sustaining capital expenditures are defined as those expenditures required to sustain current operations and exclude all expenditures incurred at new operations or major projects at existing operations where these projects will materially benefit the operation. Non-sustaining capital expenditures are primarily costs incurred at 'new operations' and costs related to 'major projects at existing operations' where these projects will materially benefit the operation. A material benefit to an existing operation is considered to be at least a 10% increase in annual or life of mine production, net present value, or reserves compared to the remaining life of mine of the operation. A reconciliation of sustaining capital expenditures and non-sustaining capital expenditures to the nearest IFRS measures is set out below. Management uses the distinction of the sustaining and non-sustaining capital expenditures as an input into the calculation of all-in sustaining costs per ounce and all-in costs per ounce. Photo accompanying this announcement are available athttps:// Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same. Ahmedabad Plane Crash GlobeNewswire provides press release distribution services globally, with substantial operations in North America and Europe.
