Centerra Gold Inc. · TSX:CG
Centerra Gold — Investor Presentation (November 2017)
31 slides from Centerra Gold's investor presentation, November 2017
Slide 1: Investor Presentation November 2017
Investor Presentation November 2017 TSX: CG www.centerragold.com
Slide 2: Caution Regarding Forward-Looking Information
Caution Regarding Forward-Looking Information Information contained in this presentation which are not statements of historical facts, and the documents incorporated by reference herein, may be “forward-looking information” for the purposes of Canadian securities laws. Such forward-looking informati
Slide 3: Centerra: Built For Success
Centerra: Built For Success Corporate Highlights Consensus Asset NAV Breakdown US Internationally Diversified Gold Producer 0% Kyrgyzstan 33% Two Cornerstone Lower-Cost Quartile Assets Canada 46% Gold Production up to 815kozpa gold at AISC1 of $705 to $741 per ounce and ~60M lbs of copper Significan
Slide 4: Q3 2017 Corporate Update
Centerra: Q3 - 2017 Corporate Update 2017 YTD: Internally Funded Business (US$MM’s) Liquidity Profile (US$MM’s) 700 (as of September 30, 2017) 88 172 600 $50 105 500 409 78 352 Cash 400 $125 $401MM 300 $352 US$677MM 200 100 $150 0 1 2016 Cash Mt Milligan Kumtor FCF Debt Other Q3 2017 FCF Repayments
Slide 5: Q3 Full Year Guidance Revision
Centerra: Q3 Full Year Guidance Revision 2017 Mid-Point Gold Production (oz’s) Guidance Mid-Point Highlights 850,000 815,000 795,000 800,000 Gold Production – 3% Downward Revision 755,000 750,000 700,000 All-In Sustaining Costs – Negligible Revision 650,000 Original Guidance Q2 Guidance Q3 Guida
Slide 6: Financial Highlights
Centerra: Financial Highlights Both mines generating strong positive free cash flows, $193MM YTD: • $88MM from Kumtor • $105MM from Mount Milligan Increased MTM revolving credit facility to $125 Million from $75 Million • Entered into 2-year strategic hedging program, primarily zero-cost collars in
Slide 7: Diversified Portfolio With Balanced Geopolitical Profile
Diversified Portfolio With Balanced Geopolitical Profile Asset NAV breakdown Gold Reserves Consensus Asset NAV by geography P+P reserves by geography US 0% Kyrgyz Republic Kyrgyzstan 32% 33% Canada Canada 46% 52% Turkey Turkey 7% 11% Mongolia Mongolia 10% 10% Consensus Asset NAV by stage M+I resourc
Slide 8: Lower-Cost-Quartile Asset Base
Centerra: Lower-Cost-Quartile Asset Base Based on industry-wide all-in sustaining costs, Centerra ranks in the bottom quartile of global gold producers AISC Industry Curve (By-Product Basis) 0% 25% 50% 75% 100% $2,500 Centerra Gold $2,250 (US$705-741/oz Au) $2,000 Mount Milligan Kumtor (US$483-523
Slide 9: Mount Milligan: Long Life, Low Cost Gold Copper Mine
Mount Milligan: Long Life, Low Cost Gold Copper Mine 2017E 2016 Guidance Gold Production (koz) 205 235-255 Copper Production (Mlbs) 59 55-65 All-In Sustaining Costs (US$/oz)(1) $509 $483-$523 Sustaining Capital ($MM)(1) NA $26 Remaining reserve life (years) +20 Gold Copper P&P Reserves(2) 5.8Moz 2,0
Slide 10: Mount Milligan: Resource Expansion Potential
Mount Milligan: Resource Expansion Potential C. Paul Jago, a Member of the Engineers and Geoscientists British Columbia, is Centerra’s qualified person for the purpose of National Instrument 43-101. November 2017 10
Slide 11: Mount Milligan: Exploration Update
Mount Milligan: Exploration Update Q3 Drill hole Section; looking North within Ultimate Pit Boundary Mount Milligan Q3 Drill hole Plan Map Q3 2017 Exploration Update This information should be read together with our news release of October 31, 2017. C. Paul Jago, a Member of the Engineers and Geosci
Slide 12: Mount Milligan: Exploration Targets
Mount Milligan: Exploration Targets November 2017 12
Slide 13: Kumtor: World Class Open Pit Gold Mine
Kumtor: World Class Open Pit Gold Mine 2017E 2015 2016 Guidance Gold Production (koz) 521 551 540-560 Adjusted Operating Costs ($/oz) (1) $326 $342 $320-$331 All-In Sustaining Costs ($/oz) (1) $758 $640 $737-$764 Sustaining Capital ($MM)(1) $51 $61 $68 Growth Capital ($MM)(1) $14 $15 $28 Projected A
Slide 14: Öksüt: Funded High Margin Gold Production
Öksüt: Funded High Margin Gold Production 2015 Feasibility Highlights Mine Type Open Pit, Heap Leach Avg. LOM Annual Production 110koz Au Avg. LOM AISC(1) (US$/oz) $490 Reserve Mine Life 8 years Development Capex (US$MM) $221 P&P Reserves(2)(Moz) 1.2 Au grade (g/t) 1.40 Öksüt Gold Project Life of Mi
Slide 15: Öksüt: Powerline Construction Complete
Öksüt: Powerline Construction Complete November 2017 15
Slide 16: Gatsuurt: Gold Development Project
Gatsuurt: Gold Development Project Highlights Boroo mill on care & maintenance awaiting Gatsuurt approval The Gatsuurt Project is ~90 km north of Ulaanbaatar Gatsuurt declared strategic January 2015 3% royalty (versus 34% ownership) approved by government Investment & development agreements outstand
Slide 17: Greenstone: One of Canada's Largest Undeveloped Open Pit Gold Mines
Greenstone: One of Canada’s Largest Undeveloped Open Pit Gold Mines Cornerstone Canadian Development Project Ontario: Top Tier Mining Jurisdiction 50:50 development partnership with Premier Gold Open pit reserves(1) (100%) 4.7Moz Au @ 1.02 g/t Historic gold production of 4.12M oz (~1934-1970) Large
Slide 18: Potential Upside Optionality: Molybdenum
Potential Upside Optionality: Molybdenum Molybdenum business Thompson Creek Mine Well-established molybdenum business ● Located in Idaho, is the world’s fourth largest open-pit primary molybdenum mine Consists of the Langeloth Metallurgical Facility and two mines: Thompson Creek Mine and Endako Mine
Slide 19: Strong Low-Cost Operating Platform
Centerra: Strong Low-Cost Operating Platform 2017 Gold Production Guidance (Koz)(1) 2017 All-In Sustaining Costs (US$/oz)(1) 2,600 1,200 1,075 1,140 1,040 955 965 975 940 900 910 845 860 815 875 865 723 795 575 570 415 405 400 383 287 225 Kinross Yamana Acacia IAMGOLD Centerra Detour B2Gold Alamos N
Slide 20: Appendices
Appendices TSX: CG www.centerragold.com
Slide 21: Q3 2017 Corporate Update
Q3 - 2017 Corporate Update Safety – Continue to roll out “Work Safe : Home Safe” Program Across the Company Q3 2017 Net Loss $0.8MM, includes $60MM one-time charge and $6.9MM gain Q3 2017 Adjusted Earnings1 $52.3MM or $0.18 Per Share Comprehensive Settlement Agreement Signed: September 11, 2017
Slide 22: Q3 2017 Operating Highlights
Q3 – 2017 Operating Highlights Q3 2017 gold production - Kumtor 138,561 ounces, Mount Milligan 61,640 ounces1 Q3 2017 copper production - Mount Milligan 13,677,000 pounds1 Favourably revised guidance at Kumtor, increased gold production 540,000 – 560,000 oz, and lowered all-in sustaining costs on a
Slide 23: Q3 2017 Financial Highlights
Q3 – 2017 Financial Highlights1 Quarter Ended Quarter Ended September 30, September 30, (in thousands, except ounces, per share amounts, and average realized price3) 2017 20162 Revenue $276,237 $218,745 Total gold ounces sold 174,099 164,847 Total copper pounds sold (000’s) 18,644 - Operating cash f
Slide 24: 2017 Revised Guidance
Centerra: 2017 Revised Guidance 2017 All-in Sustaining 2017 Gold Production 2017 Copper Production Costs on a By-product basis1 (ounces) (millions pounds) (per ounce sold) Kumtor Mine 540,000 – 560,000 - $737 – $764 Mount Milligan 235,000 – 255,000 55 – 65 $483 – $523 Centerra 775,000 – 815,000 55 –
Slide 25: 2017 Guidance Sensitivities
Centerra: 2017 Guidance Sensitivities Impact on Impact on ($ millions) ($ per ounce sold) Change Costs Revenues Cash flows Net Earnings AISC(2) on by- (after tax) product basis Gold Price $50/oz 1.3 – 1.6 8.9 – 10.5 7.6 – 8.9 7.6 – 8.9 - Copper Price(3) 10% 0.4 0.1 – 1.6 0.1 – 1.2 0.1 – 1.2 0.1 – 1.
Slide 26: Mineral Reserves - Proven & Probable
Centerra: Mineral Reserves - Proven & Probable1 Proven and Probable Gold Mineral Reserves Increase to 16 million ounces Proven and Probable Copper Mineral Reserves are 2,049 million pounds Copper Mineral Reserves Proven Probable Total Proven and Probable Tonnes Grade Contained Tonnes Grade Contained
Slide 27: Greenstone: One of Canada's Largest Undeveloped Open Pit Gold Mines
Greenstone: One of Canada’s Largest Undeveloped Open Pit Gold Mines Cornerstone Canadian Development Project Ontario: Top Tier Mining Jurisdiction 50:50 development partnership with Premier Gold Open pit reserves(1) (100%) 4.7Moz Au @ 1.02 g/t Historic gold production of 4.12M oz (~1934-1970) Large
Slide 28: Investor Relations Highlights
Centerra: Investor Relations Highlights Research Coverage Top Ten (10) Institutional Shareholders Brokerage Firms Rating Target Institution/Firm Q3-2017 1. BMO Capital Markets Market Perform C$10.50 2. BofA Merrill Lynch Neutral C$10.50 1. Blackrock 13.10% 3. Canaccord Genuity Hold C$10.00 2. Van Ec
Slide 29: Senior Management
Centerra: Senior Management Industry Background Experience • Appointed Chief Executive Officer in November, 2015 SCOTT PERRY 20 years Chief Executive Officer • Former Chief Executive Officer at AuRico Gold FRANK HERBERT 25 years • Appointed President in November, 2015 President • Joined Centerra in
Slide 30: Directors
Centerra: Directors Board of Directors Background STEPHEN A. LANG Chairman Appointed Director of Centerra’s Board, June 2008 BRUCE V. WALTER Vice Chair Appointed Director of Centerra’s Board, May 2008 SCOTT G. PERRY Director Appointed Director of Centerra’s Board, January 2016 RICHARD W. CONNOR Dire
Slide 31: TSX: CG www.centerragold.com
TSX: CG www.centerragold.com
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