Centerra Gold Inc. · TSX:CG
Centerra Gold — Investor Presentation (September 2017)
31 slides from Centerra Gold's investor presentation, Sep 15, 2017
Slide 1: Investor Presentation September 2017
Investor Presentation September 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% Favourably Revised Guidance up to 845kozpa gold at AISC1 of $693 to $747 per ounce and 60M lbs of copper
Slide 4: Centerra: Q2 2017 Corporate Update
Centerra: Q2 - 2017 Corporate Update YTD - 2017: Internally Funded Business (US$) Balance Sheet (US$) 700 34 (as of June 30, 2017) 61 146 650 205 600 550 Cash1 25 US$ Millions 500 35 $401MM 33 Total Debt3 450 409 400 401 $447MM 350 300 250 200 1 2016 Cash Kumtor Ops Mt Milligan 2 Working Capital EBR
Slide 5: Robust Financial Margins in all Cycles
Centerra: Robust Financial Margins in all Cycles Cash Reserves1 Profile (US$) 2015 Free Cash Flow Profile (US$) 1,000 2,000 800 1,600 Gold Price (US$/oz) US$ Millions 600 1,200 Operating Cash Flows Cash Flows 400 800 Invested $334 MM $244 MM 200 400 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2
Slide 6: Favourable Full Year Guidance Revision
Centerra: Favourable Full Year Guidance Revision Mid-Point Gold Production (oz’s) Guidance Highlights 850,000 815,000 800,000 9 Gold Production – 7% Favourable Revision 755,000 750,000 700,000 9 All-In Sustaining Costs – 8% Favourable Revision 650,000 Orginal Guidance Revised Guidance 2017 Mid-Point
Slide 7: Financial Highlights
Centerra: Financial Highlights Both mines generating strong positive free cash flows YTD cash flow of $127.5MM from mine operating activities before changes in working capital1 and after capital expenditures: • $76.4MM from Kumtor; and, • $51.1MM from Mount Milligan Debt repayments YTD of $60MM, out
Slide 8: 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 9: Re-Rating Potential Continues
Centerra: Re-Rating Potential Continues Price / NAV(1) Centerra vs Intermediate Gold Peers P/NAV (5%) at Spot Median P/NAV (5%) at Spot 1.75x 1.44x Median: 1.13x 1.26x 1.25x 1.10x 1.07x 1.03x 0.95x 0.91x 0.86x 0.82x B2Gold IAMGOLD Detour Gold Centerra SSR Mining SEMAFO Resources Yamana Gold Kinross
Slide 10: Lower-Cost Asset Base
Centerra: Lower-Cost Asset Base ¾ 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$693-747/oz Au) $2,000 Mount Milligan Kumtor (US$457-508/oz) (US$
Slide 11: Mount Milligan: Long Life, Low Cost Gold Copper Mine
Mount Milligan: Long Life, Low Cost Gold Copper Mine 2017E 2016 Guidance Gold Production (koz) 205 260-290 Copper Production (MMlbs) 59 55-65 All-In Sustaining Costs (US$/oz)(1) $509 $457-$508 Sustaining Capital ($MM)(1) NA $26 Remaining reserve life (years) +20 Gold Copper P&P Reserves(2) 5.8Moz 2,
Slide 12: Kumtor: World Class Open Pit Gold Mine
Kumtor: World Class Open Pit Gold Mine 2017E 2015 2016 Guidance Gold Production (koz) 521 551 525-555 Adjusted Operating Costs ($/oz) (1) $326 $342 $326-$346 All-In Sustaining Costs ($/oz) (1) $758 $640 $751-$795 Sustaining Capital ($MM)(1) $51 $61 $68 Growth Capital ($MM)(1) $14 $15 $28 Projected A
Slide 13: Öksüt: Funded High Margin Gold Production
Öksüt: Funded High Margin Gold Production 2015 Feasibility Highlights Mine Type Open Pit, Heap Leach Avg. LOM Annual Production 110koz Au Avg. LOM AISC(1) (US$/oz) $490 Reserve Mine Life 8 years Development Capex (US$MM) $221 P&P Reserves(2)(Moz) 1.2 Au grade (g/t) 1.40 Öksüt Gold Project Life of Mi
Slide 14: Öksüt: Powerline Construction Complete
Öksüt: Powerline Construction Complete September 2017 14
Slide 15: Gatsuurt: Gold Development Project
Gatsuurt: Gold Development Project Highlights Boroo mill on care & maintenance awaiting Gatsuurt approval The Gatsuurt Project is ~90 km north of Ulaanbaatar Gatsuurt declared strategic January 2015 3% royalty (versus 34% ownership) approved by government Investment development agreement negotiation
Slide 16: Greenstone: One of Canada's Largest Undeveloped Open Pit Gold Mines
Greenstone: One of Canada’s Largest Undeveloped Open Pit Gold Mines Cornerstone Canadian Development Project Ontario: Top Tier Mining Jurisdiction 50:50 development partnership with Premier Gold Open pit reserves(1) (100%) 4.7Moz Au @ 1.02 g/t Historic gold production of 4.12M oz (~1934-1970) Large
Slide 17: Potential Upside Optionality: Molybdenum
Potential Upside Optionality: Molybdenum Molybdenum business Thompson Creek Mine Well-established molybdenum business ● Located in Idaho, is the world’s fourth largest open-pit primary molybdenum mine Consists of the Langeloth Metallurgical Facility and two mines: Thompson Creek Mine and Endako Mine
Slide 18: Strong Low-Cost Operating Platform
Centerra: Strong Low-Cost Operating Platform 2017 Gold Production Guidance (Koz)(1) 2017 All-In Sustaining Costs (US$/oz)(1) 2,600 1,200 1,075 1,140 1,040 955 965 975 940 900 910 845 860 815 875 865 720 815 575 570 415 405 400 383 287 225 Kinross Yamana Acacia IAMGOLD Centerra Detour B2Gold Alamos N
Slide 19: Built For Success
Centerra: Built For Success Kumtor: World Class Open Pit Gold Mine Cornerstone asset underpinning the Company’s growing production portfolio Producing Long life, low cost asset generating significant positive cash flow Mount Milligan: Long Life, Low Cost Open Pit Gold-Copper Mine in British Columbia
Slide 20: Appendices
Appendices TSX: CG www.centerragold.com
Slide 21: Centerra: Q2 2017 Corporate Update
Centerra: Q2 - 2017 Corporate Update ¾ Safety – Continue to roll out “Work Safe : Home Safe” Program Across the Company ¾ Q2 2017 Net Earnings $23MM or $0.08 Per Share, includes $41MM or $0.14 Per Share Impairment ¾ Strong Q2 Gold Production of 195,719 Ounces and Copper Production of 15.1 million po
Slide 22: Operating Highlights
Centerra: Operating Highlights Q2 2017 gold production - Kumtor 138,623 ounces, Mount Milligan 57,096 ounces1 Q2 2017 copper production - Mount Milligan 15,062,000 pounds1 Favourably revised guidance at Kumtor, increased gold production 525,000 – 555,000 oz, Lowered all-in sustaining costs per ounce
Slide 23: Financial Highlights
Centerra: Financial Highlights1 Quarter Ended Quarter Ended (in thousands, except ounces, per share amounts, and average realized price3) June 30, 2017 June 30, 20162 Revenue $279,218 $160,448 Total gold ounces sold 188,225 127,909 Total copper pounds sold (000’s) 14,358 - Operating cash flow before
Slide 24: 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 25: 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 525,000 – 555,000 - $751 – $795 Mount Milligan 260,000 – 290,000 55 – 65 $457 – $508 Centerra 785,000 – 845,000 55 –
Slide 26: 2017 Guidance Sensitivities
Centerra: 2017 Guidance Sensitivities Impact on Impact on ($ millions) ($ per ounce sold) Change Costs Revenues Cash flows Net Earnings AISC(2) on by- (after tax) product basis Gold Price $50/oz 3.2 - 3.4 17.7 – 19.4 15.6 – 16.0 15.6 – 16.0 0.1 Copper Price(3) 10% 0.2 – 0.8 0.7 – 2.9 0.5 – 2.1 0.5 –
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 Q2-2017 1. BMO Capital Markets Market Perform C$10.00 Neutral C$10.50 1. Blackrock 12.56% 2. BofA Merrill Lynch Hold C$7.00 2. Van Eck 8.65% 3. Canaccord G
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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