Centerra Gold Inc. · TSX:CG
Centerra Gold — Q2 2020 Earnings Presentation
26 slides from Centerra Gold's earnings presentation, Jul 31, 2020
Slide 1: Second Quarter Results Conference Call
Kumtor BUILT FOR SUCCESS Mount Milligan Second Quarter Results Conference Call July 31, 2020 TSX: CG Öksüt www.centerragold.com
Slide 2: Senior Management Participants
Senior Management Participants Industry Background Experience • Appointed Chief Executive Officer in November 2015 SCOTT PERRY President and Chief Executive +23 years • President and Chief Executive Officer in January 2018 Officer • Former Chief Executive Officer at AuRico Gold DAN DESJARDINS • Appo
Slide 3: Caution Regarding Forward-Looking Information
Caution Regarding Forward-Looking Information Information contained in this document 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 information i
Slide 4: Second Quarter Results – Scott Perry, President & CEO
Kumtor BUILT FOR SUCCESS Mount Milligan Second Quarter Results July 31, 2020 Scott Perry – President & CEO TSX: CG Öksüt www.centerragold.com
Slide 5: Q2 – 2020 Corporate Highlights: Operational
Q2 – 2020 Corporate Highlights Operational Highlights COVID-19 – Implemented and Maintained Proactive Measures, Increased Hygiene Protocols, Social Distancing, Extended Mine Site Rotations, Separated Work Crews when on Site Safety – Öksüt recently achieved three million work hours without a lost tim
Slide 6: Q2 – 2020 Corporate Highlights: Financial
Q2 – 2020 Corporate Highlights Financial Highlights Q2 2020 Net Earnings of $80.7MM or $0.27 per Common Share (basic) Adjusted Net Earnings1 of $97.8MM or $0.33 per Common Share (basic) Cash Provided by Operations of $268MM ($0.91 per share) Consolidated Free Cash Flow1 of $169MM ($157MM from Kumtor
Slide 7: Q2 - 2020 Corporate Update
Q2 - 2020 Corporate Update YTD - 2020 Cash Flow (US$MM’s) Cash Flow From Operations 5 (US$MM’s) 1,620 1,800 400 300 1,487 1,600 294 57 1,374 1,403 268 350 1,237 1,400 250 300 17 1,200 51 200 250 212 1,000 200 150 121 800 150 91 95 92 600 100 100 400 43 50 50 200 0 0 0 2019 YE Cash 2 Kumtor + Drawdow
Slide 8: Second Quarter Results – Dan Desjardins, VP & COO
Kumtor BUILT FOR SUCCESS Mount Milligan Second Quarter Results July 31, 2020 Dan Desjardins – VP & COO TSX: CG Öksüt www.centerragold.com
Slide 9: Q2-2020 Operating Highlights
Q2-2020 Operating Highlights Kumtor’s contractor group achieved two full years without a lost time injury and July 19th Öksüt achieved three million work hours without a lost time injury Q2 2020 gold production - Kumtor 173,245 oz, Mount Milligan 35,656 oz, Öksüt 10,791 oz Q2 2020 copper production
Slide 10: 2020 Operations Key Focus
2020 Operations Key Focus Improve Safety Performance Company-wide Ramp up Öksüt Gold Production Adequate Volumes of Stored Water at Mount Milligan to Run at Full Capacity for the Year Focus on Consistent and Improved Production at the Mount Milligan Mine Cost Control with a Prominent Focus
Slide 11: Mount Milligan: Available Water - June 30, 2020
Mount Milligan: Available Water - June 30, 2020 July 2020 11
Slide 12: Öksüt: Site Photos
Öksüt: Site Photos Admin Offices and Crushing Area Open Pit Mining Open Pit Mining Heap Leach Pads Stacked Ore on Heap Leach Pad Irrigating Stacked Ore July 2020 12
Slide 13: Second Quarter Results – Darren Millman, VP & CFO
Kumtor BUILT FOR SUCCESS Mount Milligan Second Quarter Results July 31, 2020 Darren Millman – VP & CFO TSX: CG Öksüt www.centerragold.com
Slide 14: Q2-2020 Financial Highlights
Q2-2020 Financial Highlights1 Quarter Ended Quarter Ended (in thousands, except ounces, per share amounts, and average realized price3) June 30, 2020 June 30, 2019 Revenue $412,654 $340,510 Total gold ounces sold(2) 217,539 198,287 Total copper pounds sold (000’s) 19,352 18,700 Cash provided by oper
Slide 15: Q2-2020 Other Financial Highlights
Q2-2020 Other Financial Highlights Gold Sales1 of 217,539 ounces / Copper Sales of 19.4 million pounds in Q2 2020 Q2 2020 Net Earnings of $80.7MM, $0.27 per common share (basic), Adjusted Net Earnings2 for Q2 2020 of $97.8MM, $0.33 per common share (basic) Q2 2020 Production Costs of $410 per ounce
Slide 16: Summary – Scott Perry
Kumtor BUILT FOR SUCCESS Mount Milligan Second Quarter Results July 31, 2020 Summary – Scott Perry TSX: CG Öksüt www.centerragold.com
Slide 17: Centerra: Built For Success
Centerra: Built For Success Corporate Highlights Retained Earnings Profile (US$) 20201 estimated gold production up to 820koz, copper production up to 90Mlbs, AISC2 of $820 to $870 per ounce 1,600 2,000 1,400 Q2 2020 gold production 219,6923 oz, copper production 1,600 19.1Mlbs, at AISC2 of $804 per
Slide 18: Q & A and Appendix
Kumtor BUILT FOR SUCCESS Mount Milligan Second Quarter Results July 31, 2020 Q & A and Appendix TSX: CG Öksüt www.centerragold.com
Slide 19: COVID-19 Update
COVID-19 Update • Priority is the health and safety and well-being of employees, contractors, communities and other stakeholders, and to minimize spread of virus • Working remotely where possible • Restrict access to mine sites • Increased cleaning and hygiene protocols at all sites, including tempe
Slide 20: Q2-2020 ESG Operations Update
Q2-2020 ESG Operations Update Continued focus on safety leadership training/awareness. Maintained and strengthened our “Social Licence to Operate” at all operations with no interruptions for ~84 months. No reportable environmental incidents. Formed a global Diversity and Inclusion Steering Committee
Slide 21: Committed to Responsible Gold Mining
Committed to Responsible Gold Mining • Centerra is implementing the World Gold Council’s Responsible Gold Mining Principles (RGMP) across our operations • RGMP was designed to provide confidence to our investors and supply chain participants that our gold has been produced responsibly • Centerra has
Slide 22: Centerra: Low-Cost Asset Base
Centerra: Low-Cost Asset Base 20201 estimated gold production up to 820koz, copper production up to 90Mlbs, AISC2 of $820 to $870 per ounce Au Positioned to generate meaningful cash flow through the price cycles AISC2 Industry Curve (By-P roduct Basis) $2,500 25% 50% 75% 100% $2,250 $2,000 Cente
Slide 23: Centerra: 2020 Guidance
Centerra: 2020 Guidance6 Mount 2020 Production Guidance Units Kumtor Öksüt Centerra Milligan(1) Gold Total Gold Payable Production(2) (Koz) 520-560 140-160 80-100 740-820 Copper Total Copper Payable Production(2) (Mlb) - 80-90 - 80-90 2020 All-in Sustaining Unit Costs Units Kumtor Mount Milligan(1)
Slide 24: Centerra: 2020 Guidance Sensitivities and Assumptions
Centerra: 2020 Guidance5 Sensitivities and Assumptions Impact on Impact on ($ per ounce ($ millions) sold) Production Costs Net Earnings AISC(2)(3) on Capital Costs Financing Costs Revenues Cash flows & Taxes (after tax) by-product basis Gold price $50/oz 2.2 – 2.7 - 0.7 – 0.8 15.4 – 19.1 12.5 – 15.
Slide 25: Centerra: Mineral Reserves - Proven & Probable
Centerra: Mineral Reserves - Proven & Probable1 Gold Mineral Reserves Proven Probable Total Proven and Probable Property Tonnes Grade Contained Tonnes Grade Contained Tonnes Grade Contained (kt) (g/t) Gold (koz) (kt) (g/t) Gold (koz) (kt) (g/t) Gold (koz) Mount Milligan 114,753 0.41 1,525 76,275 0.3
Slide 26: BUILT FOR SUCCESS
Kumtor BUILT FOR SUCCESS Mount Milligan TSX: CG Öksüt www.centerragold.com