Centamin — Corporate Update (March 2012)
37 slides from Centamin's corporate update, Mar 28, 2012
Slide 1: Centamin plc: Sukari Gold Mine Site Visit
Centamin plc Positioned For Growth Sukari Gold Mine Site Visit 28 March 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: Part 1: Overview & Mining
Part 1: Overview & Mining CENTAMIN
Slide 4: Overview of Centamin
4 Overview of Centamin • Rapidly growing FTSE 250 gold producer – FY2011 production: 202,698 ounces at $556/oz – 2012 guidance: 250,000oz at approx. $550/oz – Targeting 500,000oz/annum production rate • Fully funded multi-faceted expansion programme on track – Ramping up to consistent capacity of 5M
Slide 5: Focusing on Delivery: 2012 Targets
5 Focusing on Delivery: 2012 Targets • Deliver on guidance – Focused on FY2012 production target and maintaining tight control on cash costs • Continue to make solid progress on Sukari expansion – Ramp up construction effort on Stage 4 – Commissioning expected to begin in Q1 2013 • Continue construc
Slide 6: The Sukari Gold Mine
6 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 7: Q4 2011 Operational Review: A Record Quarter
7 Q4 2011 Operational Review: A Record Quarter Q4 2011 Q3 2011 Q4 2010 Open Pit Ore Mined (‘000 tonnes) 1,988 2,129 2,123 Total Mined (OP only) (‘000 tonnes) 7,701 5,847 5,975 Ore Processed (‘000 tonnes) 1,066 954 773 Head Grade (g/t) 2.02 1.82 2.3 Gold Recovery (%) 84 85.5 88.1 Gold Production (oun
Slide 8: Strong and Flexible Financial Position
8 Strong and Flexible Financial Position Cash Generation Stage 4 capex: UG capex: US$54.9m US$287m US$18m EBITDA (3 months to 31 Dec 2011) Cash Balance c.US$200m cash Selective (as at 31 Dec 2011) M&A Debt and Hedge Free Sustaining capex: 2012 Exploration: 100% exposure US$20-30m US$13-15m to high g
Slide 9: 5 Year Mine Plan As Per 43-101 Report
9 5 Year Mine Plan As Per 43-101 Report PROJECT YEAR Units 2012 2013 2014 2015 2016 OPEN PIT MINE PRODUCTION Ore t 9,063,320 11,267,856 4,412,209 9,007,943 19,584,848 Waste t 20,817,141 33,018,969 64,230,025 60,492,318 48,392,285 Total t 29,880,462 44,286,825 68,642,233 69,500,261 67,977,133 Strip R
Slide 10: Open Pit Development – Ultimate Pit
10 Open Pit Development – Ultimate Pit • Currently 7 stages of pit design – ultimate pit design will remove entire hill • Delivers 9.5Moz (Proven and Probable Reserves) over a 20 year mine life • Contains an additional 2.3Moz of inferred resources within ultimate pit design • Total pit size: 2.5km l
Slide 11: Open Pit Development - Schedule
11 Open Pit Development - Schedule Development Schedule 2011 23Mtpa 2012 30Mtpa 2013 44Mtpa 2014-2016 68Mtpa 2017 74Mtpa onwards
Slide 12: Underground Progressing Well
12 Underground Progressing Well • 2012 production budget: 300-350,000t @ 10-12g/t • Q4 Production: 70,000t @ 13.31g/t (Q3 2011: 58,000t @ 10.4g/t) • Good ground conditions with little groundwater • High average plant feed grade: ~10-12g/t • Updated grade controlled underground ore reserve: 1.1Mt @ 1
Slide 13: Secondary Decline Development
13 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 and provide access to the high grade Julius zone • Current decline is inside the pit shell – th
Slide 14: Dump Leach: Fast Tracking Production Ounces
14 Dump Leach: Fast Tracking Production Ounces • Q4 production: 2,302 ounces • 2012 production budget: 10-12,000 ounces • Low cost, low maintenance method of fast tracking production ounces • Material is left on the pad for approximately 18 months • Tonnes put onto the pad each quarter: 1Mt/quarter
Slide 15: Part 2: Exploration
15 Part 2: Exploration
Slide 16: Strategy: Positioning Centamin for Growth
16 Strategy: Positioning Centamin for Growth 1. Growth of Sukari • Continuing to grow existing resource base • Updated grade controlled underground ore 1. Growth of Sukari reserve of 1.1Mt @ 16.3g/t 2. Growth on existing licence • 160km2 tenement area around Sukari hill • Resources have grown materi
Slide 17: 1. Growth of Sukari Resources & Reserves
17 1. Growth of Sukari Resources & Reserves • New resources of 13.13Moz Measured & Indicated, 2.3Moz Inferred and reserves of 10.1Moz • In excess of 550,000m drilled at Sukari to date • Updated underground reserve of 1.1Mt @ 16.3g/t (approx. 600,000oz) • Drilling to the north of the hill: — Drilling
Slide 18: 2. Growth on Existing Licence: Regional Exploration
18 2. Growth on Existing Licence: Regional Exploration • Sukari tenement area: 160km2 • Seven other defined prospects on Sukari licence area besides Sukari hill • Exploration currently focused on Quartz Ridge and V Shear • Ore from all 7 currently defined prospects would be truckable to existing pla
Slide 19: Quartz Ridge
19 Quartz Ridge • Quartz Ridge and V Shear form part of a 6km long north south mineralising trend on Sukari tenement area that is being systematically investigated by the Sukari Exploration Team • RC drilling programme defines continuous mineralised structure over 150m strike length • Significant in
Slide 20: V Shear
20 V Shear • Rock chip samples of >100g/t • Diamond drilling campaign with 2 rigs commenced in September 2011 • The most significant diamond drilling intercepts to date are as follows: 10m @ 4.71 g/t (from 151m) 28m @ 2.98 g/t (from 11m) 4m @ 100.7 g/t (from 30m) • Drilling planned for 2012 to furth
Slide 21: 3. Growth Beyond Sukari: The Arabian-Nubian Shield
21 3. Growth Beyond Sukari: The Arabian-Nubian Shield • Arabian-Nubian Shield is recognised as an emerging mining region, particularly for precious metals • Geology in other areas of the Shield is similar to Sukari Bulghan Sukhaybarat • Limited exploration in the region using modern Mahd ad Dahab te
Slide 22: 3. Growth Beyond Sukari: Strategic Investment in Ethiopia
22 3. Growth Beyond Sukari: Strategic Investment in Ethiopia Acquisition of Sheba • Acquisition of Sheba is part of defined growth strategy into other countries in the Arabian-Nubian shield • Add value to the Sheba properties through exploration and development • Drill ready targets in a highly pros
Slide 23: Ethiopia: Country Overview
23 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
Slide 24: Sheba Licences Overview
24 Sheba Licences Overview Una Deriam: 95km2 / 100% ownership • 10 km long soil/rock chip gold anomaly Finarwa: 71km2 / 100 ownership • Recent artisanal activity supported by strong soil anomalies associated with strong NNE shear zone • Additional soil/rock chip sampling programme and structural map
Slide 25: Una Deriam
25 Una Deriam • 10km 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 • Extensive artisanal alluvial gold panning and pitting • 2 previous open hole percussion holes which r
Slide 26: Part 3: Processing
Part 3: Processing CENTAMIN
Slide 27: 2012 Processing Budget
27 2012 Processing Budget • 5Mtpa run rate • Availability: c.85% • Recovery rate: c. 85% • Head grade of blended ore processed: 1.8-2.2g/t • Production: 250,000 ounces (including 10-12,000oz from dump leach)
Slide 28: Stage 4: Doubling Capacity to 10Mtpa
28 Stage 4: Doubling Capacity to 10Mtpa • Conventional SAG and ball mill expansion – new plant will sit alongside the existing plant • GBM appointed as contractor and front end engineering complete • Estimated capital cost of US$287m (excluding contingency) - US$52.6m expenditure as at end of Dec 20
Slide 29: Improving Recoveries
29 Improving Recoveries • 2011 recovery rate: 84-87% • Targeting a recovery rate of 88-89% in 2012 • Recoveries expected to increase with improvements to plant automation and carbon management techniques: Plant Automation • Automating the lime addition valves has led to a more stable operating pH •
Slide 30: Operational Timeline: 2012-2013
30 Operational Timeline: 2012-2013 Activity Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Expansion of Sukari Construction of Stage 4 Stage 4 commissioning Construction of Ptah Decline Exploration Sukari resource update Sukari regional exploration results Drilling at Una Deriam, Et
Slide 31: Investment Summary: Positioned For Growth
31 Investment Summary: Positioned For Growth Production Growth • FTSE 250 gold producer rapidly ramping up to 500,000/oz run rate • FY2011 production of 202,698oz at cash cost of US$556/oz • FY2012 production guidance of 250,000oz at US$550/oz Resource Growth • Sukari is one of the largest gold reso
Slide 32: Centamin plc: Contact Us
32 Centamin plc CONTACT US Josef El-Raghy, Chairman Katharine Sutton, Head of Investor Relations +44 (0) 20 569 1670 katharine.sutton@centamin.com
Slide 33: Appendix
33 Appendix
Slide 34: Market Information
34 Market Information Listing Information Significant Shareholders Shares Issued: 1,096,297,381 Management 6.5% Fidelity 6% Share Price: 74.75p Franklin Advisors 5% LGIM 5% Market Capitalisation: £818m Threadneedle 4.75% Barings 4.75% Markets: London Stock Exchange (CEY) Acuity 4.5% Toronto Stock Ex
Slide 35: Egypt: Country Overview
35 Egypt: Country Overview • New parliament formed in January 2012 Politics • Presidential elections expected to begin by June 2012 Concession • Centamin’s concession agreement unchanged since signing in 1994 – enshrined as Law 222 Agreement by National Assembly • Rich gold deposits throughout the A
Slide 36: Concession Agreement
36 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 37: Global Resources and Reserves
37 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