Centerra Gold Inc. · TSX:CG
Centerra Gold — Q2 2005 Earnings Presentation
25 slides from Centerra Gold's earnings presentation, Jul 29, 2005
Slide 1: 2005 Second Quarter Conference Call
2005 Second Quarter Conference Call July 29, 2005
Slide 2: Speakers
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
Slide 3: 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 4: Speakers
Speakers ¾ Len Homeniuk President and Chief Executive Officer
Slide 5: Building Track Record
Building Track Record z Good operating performance z Solid earnings and cash flows z Encouraging exploration results
Slide 6: Encouraging Exploration Results
Encouraging Exploration Results z Kumtor Pit – southern part – Encountered thicker and higher grade mineralized zone than anticipated – Down hole intercepts varies from 26 metres to 68 metres – Average grades in the 4 g/t to 13 g/t Au range – Open at depth and to the south
Slide 7: Encouraging Exploration Results
Encouraging Exploration Results z Kumtor Pit – north end part – Thick mineralized zone delineated over a 200 metre strike length and an addition 120 metres down dip – Down hole intercepts varies from 26 metres to 64 metres – Average grades in the 3 g/t to 5 g/t Au range – Open in several directions
Slide 8: Encouraging Exploration Results
Encouraging Exploration Results z Gatsuurt Central Zone – Feasibility study started – Completion by year end 2005 – In-fill drilling confirmed block model interpretation z Gatsuurt Main Zone – Located 400 metres from the Central Zone – Higher grade mineralization identified – Potential to add to res
Slide 9: Encouraging Exploration Results
Encouraging Exploration Results z REN – Confirmed continuation of high grade mineralization at JB Zone near eastern boundary – Extending drilling program into fourth quarter, 2005 z Sarytor – Good intercepts – Following up with more in-fill drilling
Slide 10: Speakers
Speakers ¾ George Burns Vice President and Chief Operating Officer
Slide 11: Operations Review
Operations Review Kumtor z Strong operating quarter z Production of 138,000 ounces of gold – 2% over forecast z Cash operating cost of $253 per ounce – on forecast z Average mill head grades of 3.7g/t
Slide 12: Operations Review
Operations Review Kumtor z Major profitability improvement projects on track – untra-fine grinding mill to improve gold recoveries online by year-end – expanding mine fleet for development of Southwest pit and main Kumtor pit z Outlook - 2005 – third quarter production estimate of 118,000 ounces at
Slide 13: Operations Review
Operations Review Boroo z Good operating quarter z Production of 75,000 ounces of gold – 2% over forecast z Average mill head grades of 4.2 g/t z Mining rate of 20,000 bcms per day z Cash operating cost of $162 per ounce
Slide 14: Operations Review
Operations Review Boroo z Outlook – 2005 – third quarter production estimate of 63,000 ounces at $200 per ounce – year production estimate of 275,000 ounces at $176 per ounce
Slide 15: Operations Review
Operations Review z Continuous improvement projects partially offsetting the effects of globally higher cost of consumables and SOX implementation z Second half production expected lower than first half as a result of lower forecasted ore grades
Slide 16: Speakers
Speakers ¾ David Petroff Executive Vice President and Chief Financial Officer
Slide 17: Centerra's Ownership Interest
Centerra’s Ownership Interest* * As Reflected in the Net Earnings of the Company 2005 2004 Q2 Q1 Q1 Q2 Q3 Kumtor 100% 100% 33% 33% 100% Boroo (1) 95% 95% 53% 53% 95% (1) began commercial operations on March 1, 2004
Slide 18: Income Statement
Income Statement Second Quarter First Half US$ millions 2005 2004 2005 2004 Revenue 95 47 187 73 Cost of sales 49 19 100 31 Depreciation, depletion and reclamation 17 11 34 15 Exploration 6 2 12 4 Interest and other - 1 - 1 Administration 5 1 9 1 18 13 32 21 Other expenses - 9 9 Income tax expense 1
Slide 19: Balance Sheet
Balance Sheet US$ millions June 30 Dec. 31 2005 2004 Assets Cash 204 153 Accounts receivable 8 3 Inventories 12 22 Supplies and prepaid expenses 53 47 277 225 Property, plant and equipment 246 268 Long-term receivables, investments and other 10 12 Goodwill 155 155 Total Assets 688 660 Liabilities an
Slide 20: Cash Flows
Cash Flows Second Quarter First Half US$ millions 2005 2004 2005 2004 Cash provided (used) by operations 25 31 61 34 Investing activities ( 6) ( 6) ( 10) 21 Financing activities - 51 - 20 Increase (decrease) in cash 19 76 51 75 Cash at the beginning of the period 185 9 153 10 Cash at the end of the
Slide 21: Second Half 2005 Forecast
Second Half 2005 Forecast z Production – 13% lower than first half due to lower grades at Kumtor z Total operating cash costs – Flat; unit cash operating cost $229 per ounce of gold z Exploration budget – $12 million; total budget increased to $24 million for the year z Administration – $13 million;
Slide 22: Speakers
Speakers ¾ Len Homeniuk President & CEO
Slide 23: Centerra – First Year Results
Centerra – First Year Results z Earnings of $71 million or $0.99 per common share z Cash flow of $116 million or $1.61 per common share z Produced over 860,000 ounces of gold
Slide 24: Question Period
Question Period centerraGo._.op
Slide 25: Annual Shareholders Meeting
Annual Shareholders Meeting July 29, 2005