Centerra Gold's Normal Course Issuer Bid Renewal Accepted by TSX
On November 5, 2024, Centerra Gold Inc. (TSX: CG) (NYSE: CGAU) announced that the Toronto Stock Exchange has accepted its renewal of a Normal Course Issuer Bid (NCIB). This renewal allows Centerra to purchase up to 18,800,929 of its common shares for cancellation over a twelve-month period starting November 7, 2024, until November 6, 2025. This amount represents approximately 8.9% of the company's total issued and outstanding shares.
Daily Purchasing Limits and Plans
Under the NCIB, the company may purchase up to 213,230 common shares daily, subject to block purchase exemptions. The precise number and timing of shares to be purchased will depend on prevailing market conditions. Centerra is not obligated to buy the shares and can halt purchases at any time if deemed necessary. All purchases will be conducted at the market price at that time through TSX or alternative trading systems, adhering to all applicable laws and regulations.
Previous NCIB Results
The previous NCIB authorized the repurchase of up to 18,293,896 common shares and is set to expire on November 6, 2024. By October 31, 2024, Centerra had successfully repurchased 5,799,800 shares under this NCIB at an average price of $8.74 per common share.
Automated Purchasing Approach
To streamline the purchasing process, Centerra plans to implement an automatic share purchase plan in relation with the renewed NCIB. This strategy will enable share purchases even during periods when the company cannot normally execute trades due to regulatory restrictions or internal blackout periods. Prior to a blackout period, Centerra may instruct its designated broker to buy shares based on pre-established guidelines.
Rationale Behind the NCIB
Centerra’s management believes that the current trading price of its common shares does not fully represent the underlying value of the shares, given the company's assets and future potential. The NCIB provides a strategic opportunity for the company to employ part of its cash reserves effectively and support shareholder value based on future share price movements while maintaining a robust balance sheet.
About Centerra Gold Inc.
Centerra Gold Inc. is recognized as a prominent Canadian mining company, primarily focused on gold mining activities. The company operates two major mines: the Mount Milligan Mine located in British Columbia and the Öksüt Mine in Turkey. Furthermore, Centerra holds several other key properties including the Goldfield District Project in Nevada, the Kemess Project in British Columbia, and a Molybdenum Business Unit across the United States and Canada. Its shares are actively traded on the TSX under the ticker symbol CG and on the NYSE under the symbol CGAU. The company is headquartered in Toronto, Ontario.
Contact Information
For additional details, please contact:
Lisa Wilkinson
Vice President, Investor Relations & Corporate Communications
(416) 204-3780
Email: Lisa.Wilkinson@centerragold.com
Frequently Asked Questions
What is a Normal Course Issuer Bid (NCIB)?
An NCIB is a program that allows a company to buy back its shares from the stock market to reduce the number of outstanding shares, which can benefit shareholders.
How many shares will Centerra Gold buy back this time?
Centerra Gold plans to repurchase up to 18,800,929 common shares during the renewal period of the NCIB.
What are the benefits of the NCIB to shareholders?
The NCIB provides a flexible mechanism for the company to enhance shareholder value by purchasing shares that it believes are undervalued.
Where can I find more information about Centerra Gold?
Further details about Centerra Gold can be found on their official website and through other financial information platforms.
What is the significance of the automatic share purchase plan?
The automatic share purchase plan allows Centerra Gold to consistently buy shares despite any trading restrictions that may be in place, ensuring efficiency in the repurchase process.
