Centamin — Investor Presentation (June 2012)
21 slides from Centamin's investor presentation, June 2012
Slide 1: Centamin plc: Positioned For Growth
Centamin plc Positioned For Growth Investor Presentation June 2012
Slide 2: Forward Looking Statements
2 Forward Looking Statements There are risks associated with an investment in the shares of Centamin. Recipients of this presentation should review the risk factors and other disclosures regarding Centamin contained in the preliminary prospectus of Centamin that has been filed with Canadian securiti
Slide 3: Overview of Centamin
3 Overview of Centamin • Rapidly growing FTSE 250 gold producer – 2012 guidance: 250,000oz at approx. $550/oz (with fuel subsidies) – Targeting 500,000oz/annum production rate • Fully funded expansion programme on track – Consistent processing capacity of 5Mtpa achieved and expansion to 10Mtpa progr
Slide 4: Egypt Update
4 Egypt Update Presidential • Commenced on 23 May Elections • Expected to conclude in mid June Concession • Centamin’s concession agreement unchanged since signing in 1994 – enshrined as Law 222 Agreement by National Assembly • Discussions ongoing regarding diesel subsidy • Paying international pric
Slide 5: Strategy: Positioning Centamin For Growth
5 Strategy: Positioning Centamin For Growth 1. Growth of Sukari • Focus on delivering ramp up of production to 500,000oz/annum run rate • Resources have grown materially from 1.3Moz in 2000 to 13.13Moz M&I, 2.3Moz Inferred today 1. Growth of Sukari • Stage 4 expansion on track for commissioning to b
Slide 6: A Major Deposit With Significant Upside Potential
6 A Major Deposit With Significant Upside Potential Sukari versus the world’s largest open pit gold deposits 10 mm oz 20 mm oz 5 mm oz 3.00 Sukhoi Log 2.50 Muruntau Open Pit Lihir Island Sukari: Donlin Creek 10.1Moz 277Mt @ 1.13 g/t Au 2.00 Reserve Grade (g/t) Pascua Lama Natalka 1.50 Tarkwa Las Cri
Slide 7: Optimised Mine Plan
7 Optimised Mine Plan Highlights: • Increased headgrade of open pit ore sent to the mill to 1-1.52g/t for the coming 5 years • Increased mining rates of ore in the open pit in years 2014 and 2015 • Reduced strip ratio in 2014 to 6.72:1 (previously 14.5:1) • Open pit mine life of 30 years at average
Slide 8: Stage 4 Expansion To 10Mtpa
8 Stage 4 Expansion To 10Mtpa • Conventional SAG and ball mill expansion – new plant will sit alongside the existing plant • Estimated capital cost of US$287m (excluding contingency) - US$99.3m expenditure as at 31 March 2012 • Detailed engineering of new plant is 84% complete • All major long lead
Slide 9: Secondary Decline Development
9 Secondary Decline Development • Development of Ptah decline commenced in October 2011 and due to be completed by end of 2012 • Budget of US$18m • Ptah decline will move towards the north of Sukari hill, as well as down dip of Amun, and provide access to the high grade Julius zone • Current decline
Slide 10: Further Exploration of Sukari Hill and Tenement Area
10 Further Exploration of Sukari Hill and Tenement Area Drilling of Pharaoh Zone, Sukari Hill • New drilling programme targeting Sukari hill from underground commenced in Q1 2011 • Three further rigs to join Pharaoh drilling programme from underground • Drilling with modified inclined diamond rig co
Slide 11: Growth Beyond Sukari: Strategic Investment in Ethiopia
11 Growth Beyond Sukari: Strategic Investment in Ethiopia Acquisition of Sheba • Sheba Exploration Plc acquired in Q3 2011 • 4 properties in highly prospective northern Tigray region • Plan to add value to the Sheba properties through exploration and development • First drilling results expected H2
Slide 12: Drilling Commenced in Ethiopia
12 Drilling Commenced in Ethiopia Una Deriam, northern Tigray • Drilling commenced in Q1 2012 • 8km long gold in soil anomaly • Major regional structure underlain by granite intrusives • 15km x 3km sericite/quartz alteration system • Ancient and colonial gold mining activity although underexplored i
Slide 13: Growth Strategy Fully Financed
13 Growth Strategy Fully Financed Cash Generation Stage 4 capex: UG capex: US$60.5m US$287m US$18m EBITDA (3 months to 31 Mar 2012) Cash Balance US$175m cash & Selective liquid assets M&A (as at 31 Mar 2012) Debt and Hedge Free Sustaining capex: 2012 Exploration: Fully funded by US$20-30m US$13-15m
Slide 14: Strong Growth Pipeline
14 Strong Growth Pipeline 2012 Near Term Medium Term Long Term Growth Growth Growth • Achieve 250,000oz • Deliver Stage 4 in 2013 • Regional exploration • Bring to production production in 2012 development further projects in the • Achieve continued Arabian-Nubian Shield • Continue to ramp up produc
Slide 15: Centamin plc: Contact Us
15 Centamin plc CONTACT US Josef El-Raghy, Chairman Katharine Sutton, Head of Investor Relations +44 (0) 20 569 1670 katharine.sutton@centamin.co.uk
Slide 16: Appendix
Centamin plc Positioned For Growth Investor Presentation Appendix June 2012
Slide 17: Market Information
17 Market Information Listing Information Significant Shareholders Shares Issued: 1,101,397,381 Management 6.5% Barings 5% Share Price: 65.15p Blackrock 5% Franklin Advisors 5% Market Capitalisation: £713m Threadneedle 5% Kames (AEGON) 4% Markets: London Stock Exchange (CEY) LGIM 4% Toronto Stock Ex
Slide 18: The Sukari Gold Mine
18 The Sukari Gold Mine • Open pit and underground mine located in the Resources and Reserves 15.5Moz / 10.1Moz* eastern desert of Egypt Production 2010: 150,289oz – 700km from Cairo 2011: 202,968oz – 25km from Red Sea Targeting 500,000oz/annum Life of Mine 20 years • Large scale, low cost producing
Slide 19: Concession Agreement
19 Concession Agreement Terms of the Concession Agreement: • No taxes and duties for 15 years and CENTAMIN PLC option to extend for further 15 years • 3% royalty rate • Full cost recovery prior to 50% profit sharing over a minimum period of 3 years 100% Capex spent to date: • US$450m to bring Sukari
Slide 20: Global Resources and Reserves
20 Global Resources and Reserves Sukari Global Resource Measured Indicated Total Inferred Measured + Indicated Cut-off Tonnes Grade Tonnes Grade Tonnes Grade Gold Tonnes Grade Gold g/t Au (Mt) (g/t Au) (Mt) (g/t Au) (Mt) (g/t Au) (Moz) (Mt) (g/t Au) (Moz) 0.3 150.04 1.00 238.90 1.08 388.9 1.05 13.13
Slide 21: Ethiopia: Country Overview
21 Ethiopia: Country Overview • Favourable government policies ― Corporate tax of 35% - negotiable breaks and holidays ― Royalty of 8% at discretion of the Minister • Modern Mining Act (Proclamation) effected in 2010 ― Demonstrates government’s support for mining industry ― 5% government free-carrie