Centerra Gold Inc. · TSX:CG
Centerra Gold — Q1 2005 Earnings Presentation
14 slides from Centerra Gold's earnings presentation, Apr 29, 2005
Slide 1: 2005 First Quarter Conference Call
2005 First Quarter Conference Call April 29, 2005 1 Speakers ¾ Len Homeniuk President and Chief Executive Officer ¾ George Burns Vice President and Chief Operating Officer ¾ David Petroff Executive Vice President and Chief Financial Officer 2 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements contained in this presentation which are not historical facts are forward looking statements that involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed o
Slide 3: Strong, Steady First Quarter
Strong, Steady First Quarter z 213,450 ounces of gold produced – 10% higher than forecast z Cash operating cost of $211 per ounce z Expanded resource base at Gatsuurt – 1.3 million ounces of indicated resources at 3.5 grams per tonne 5 Strong, Steady First Quarter z Net earnings of $12 million; $0.1
Slide 4: Growth Projects
Growth Projects Gatsuurt z Resource estimate significantly upgraded and expanded – 1,277,000 ounces of indicated resources – 210,000 ounces of inferred resources – feasibility study to begin in second quarter – mine could be in operation within two years of results of feasibility study zKumtor z Nin
Slide 5: Political Situation in the Kyrgyz Republic
Political Situation in the Kyrgyz Republic Background z Politically active year – Parliamentary elections (held in February and March) – Presidential elections (originally scheduled for October) z Fallout from Parliamentary elections – Resignation of President Akayev – Formation of interim governmen
Slide 6: The Kumtor Agreement
The Kumtor Agreement z Reviewed by various international organizations – European Bank for Reconstruction and Development (EBRD) – International Finance Corporations (IFC) z Received legal opinion of Minister of Justice z Received assurances from interim President that the Kyrgyz Republic will honou
Slide 7: Operations Review: Kumtor
Operations Review Kumtor z Strong operating quarter z Production of 141,558 ounces of gold – 8% over forecast z Cash operating cost of $235 per ounce – lower than forecast z Average mill head grades of 3.7g/t 13 Operations Review Kumtor z Major profitability improvement projects on track – untra-fin
Slide 8: Operations Review: Boroo
Operations Review Boroo z Good operating quarter z Production of 71,892 ounces of gold – 15% over forecast z Average mill head grades of 5g/t z Cash operating cost of $165 per ounce – lower than forecast 15 Operations Review Boroo z Outlook – 2005 – second quarter production estimate of 74,000 ounce
Slide 9: 2005 Forecast
Forecast 2005 Forecast 2nd Qtr Year Production – 100% - ozs 209,000 790,000 Operating cash cost - $/oz 224 229 17 Operations Review z Continuous improvement projects partially offsetting the effects of globally higher cost of consumables and SOX implementation – Boroo: improved mine productivity; in
Slide 10: Centerra's Ownership Interest
Speakers ¾ David Petroff Executive Vice President and Chief Financial Officer 19 Centerra’s Ownership Interest* * As Reflected in the Net Earnings of the Company 2005 2004 Q1 Q1 Q2 Q3 Q4 Kumtor 100% 33% 33% 100% 100% Boroo (1) 95% 53% 53% 95% 95% (1) began commercial operations on March 1, 2004 20 1
Slide 11: Income Statement and Balance Sheet
Income Statement First Quarter US$ millions 2005 2004 Revenue 92 26 Cost of sales 51 11 Depreciation, depletion and reclamation 17 5 Exploration 5 1 Interest and other - - Administration 4 1 15 8 Income tax expense 2 - Minority interest 1 - Net earnings 12 8 Earnings per common share $0.17 $ 0.20 21
Slide 12: Cash Flows and Sensitivity to the Gold Price
Cash Flows First Quarter US$ millions 2005 2004 Cash provided (used) by operations 37 3 Investing activities ( 5) 27 Financing activities - ( 31) Increase (decrease) in cash 32 ( 1) Cash at the beginning of the period 153 10 Cash at the end of the period 185 9 23 Sensitivity to the Gold Price US$ mi
Slide 13: Centerra: Closing Remarks
Speakers ¾ Len Homeniuk President & CEO 25 Centerra z Very strong financial position z Steady operations from both mine z Well positioned to grow organically and through acquisitions and joint-ventures 26 13
Slide 14: Question Period
Question Period centerraGo.o centerracorto 27 14