The Thompson Creek mine, which began operations in 1983, has significant existing
infrastructure. (Photo: Centerra)

“Over the last year, we have developed a value-enhancing strategy for U.S. Moly, centered around the vertical integration of Thompson Creek and Langeloth, and supported by strong molybdenum market fundamentals,” said Paul Tomory, president and CEO of Centerra Gold. “The combined U.S. Moly business is expected to produce an after-tax net present value (8%) (“NPV8%”) of $472 million. A key contributor to this value is Langeloth, which at full capacity, integrated with Thompson Creek, has the potential to generate robust annual EBITDA.

“We have decided to unlock significant value through the restart of operations at Thompson Creek and a progressive ramp-up of production at Langeloth,” he said. “When Thompson Creek begins production, currently targeted for the second half of 2027, it will provide additional high-grade, high-quality feed to Langeloth, enabling a ramp-up of production towards Langeloth’s full annual capacity of 40 million lb while improving operational flexibility to meet market demand.”

Following significant progress on permitting efforts in Q2 2024, Centerra pivoted from a two-phased approval to a single-phase capital investment of $397 million over three years, from now through mid-2027. The total project costs guidance at Thompson Creek for the second half of 2024 is expected to be $55 to $65 million.

The Thompson Creek mine and concentrator were placed on care and maintenance in December 2014 when the mining and processing of Phase 7 ore was completed.