Centerra Gold Inc. · TSX:CG
Centerra Gold — Investor Presentation (February 2024)
44 slides from Centerra Gold's investor presentation, Feb 14, 2024
Slide 1: Building a Strong Platform for Future Growth
TSX CG NYSE CGAU BUILDING A STRONG PLATFORM FOR FUTURE GROWTH Investor Presentation FEBRUARY 14, 2024
Slide 2: Caution Regarding Forward Looking Information
Caution Regarding Forward Looking Information This document contains or incorporates by reference “forward-looking statements” and “forward-looking information” as defined under applicable Canadian and U.S. securities legislation. All statements, other than statements of historical fact, which addre
Slide 3: Use of Non-GAAP and Other Specified Financial Measures
Use of Non-GAAP and Other Specified Financial Measures This document contains “specified financial measures” within the meaning of NI 52-112, specifically the non-GAAP financial measures, non-GAAP ratios and supplementary financial measures described below. Management believes that the use of these
Slide 4: Building a Strong Platform for Future Growth
Building a Strong Platform for Future Growth KEMESS PROJECT | BC, CANADA MOUNT MILLIGAN MINE | BC, CANADA ÖKSÜT | TÜRKIYE 2023 Production: 154kozs Au; 62Mlbs Cu 2023 Production: 196Koz Au 2023 Cost Guidance: 2023 Cost Guidance: MOLYBENDUM BUSINESS UNIT Gold production costs $1,050 – $1,100/oz Gold p
Slide 5: Compelling Value Proposition
Compelling Value Proposition Robust balance sheet, attractive jurisdictions, polymetallic exposure, with a technical management team Low-Cost Peer-Leading Favourable Polymetallic Technical Producer Balance Sheet Jurisdictions Exposure Management Team 2023E(1) AISC(2,3) of No Debt and $613M of cash F
Slide 6: Centerra's Strategic Plan
Centerra’s Strategic Plan Initiated a full asset optimization review that is expected MOUNT to drive incremental improvements in operations MILLIGAN Increase mine life with initial focus on release of MINE Preliminary Economic Assessment in H1 2025 Updated LOM to reflect restart of operations and ot
Slide 7: Strong Balance Sheet
Strong Balance Sheet Centerra has no debt, $613M of Centerra’s dividend yield is Centerra’s balance sheet strength cash, and $1.0B of total among the highest in the peer stands out among its peers liquidity(1) group NET CASH (US$B) NET DEBT / 2023 EBTIDA DIVIDEND YIELD (%) DPM $0.5 DPM -2.1x B2Gold
Slide 8: Capital Allocation
Capital Allocation Create shareholder value with a focus Shareholder Opportunities to on responsibly returns grow the business preserving organically Dividends and and deploying share buybacks Pillars of the Invest in internal projects and the balance sheet capital allocation exploration strategy Ex
Slide 9: Upcoming Value Drivers
Upcoming Value Drivers Late 2024: Complete site optimization program focused on OH&S, productivity, & cost efficiency opportunities MOUNT H1 2025: Preliminary Economic Assessment to study MILLIGAN MINE longer-term potential beyond current 2035 mine life Ongoing: Investment in exploration drilling pr
Slide 10: 2024 Exploration Strategy
2024 Exploration Strategy Investing in exploration for future growth $17-22M $18-23M Brownfields Exploration Greenfield and Generative Exploration Programs Mount Milligan (British Columbia) Canada • Infill drilling and resource expansion programs • British Columbia – JV projects Copley, Milly, withi
Slide 11: ESG Highlights
ESG Highlights Our Vision: Ensure a safe and respectful workplace for our employees and contractors, protect the natural environment, and create a positive impact in the communities where we operate ENVIRONMENTAL SOCIAL GOVERNANCE Continue to progress in our Climate and In September 2023, Öksüt mine
Slide 12: Mount Milligan Mine | BC, Canada
Mount Milligan Mine | BC, Canada ASSET DETAILS Central British Columbia, Canada 100% owned 2035 Conventional open pit copper and gold mine; 60ktpd copper flotation plant 35% gold stream, and MINE LIFE 155km NW of Prince George (Reserves only) Commercial production achieved in February 2014 18.75% co
Slide 13: Mount Milligan Mine Life Extension
Mount Milligan Mine Life Extension Mutually beneficial additional agreement with Royal Gold, results in a mine life extension at Mount Milligan ADDITIONAL AGREEMENT WITH ROYAL GOLD STRATEGY TO FURTHER INCREASE MINE LIFE A mutually beneficial, additional agreement, which provides an Strategy to furth
Slide 14: Mount Milligan Preliminary Economic Assessment
Mount Milligan Preliminary Economic Assessment Actively studyingthe PEA to evaluate thesubstantial longer-term potential resource at Mount with a goal Milligan to unlocktovalue unlock additional beyond value beyond the current 2035life 2035 mine PRELIMINARY ECONOMIC ASSESSMENT (“PEA”) Includes signi
Slide 15: Exploration Drilling at Mount Milligan
Exploration Drilling at Mount Milligan Exploration drilling program aimed at potentially significantly expanding the mineral resource base MOUNT MILLIGAN EXPLORATION PROGRAM 2024 exploration spending guidance at Mount Milligan: $5 - $7 million 2023 Mount Milligan exploration activities 80% of the dr
Slide 16: Mount Milligan: Site Optimization Program
Mount Milligan: Site Optimization Program Site-wide optimization program with a focus on enhanced safety performance and cash flow improvement COMPREHENSIVE SITE OPTIMIZATION PROGRAM Starting in Q4 2023, Centerra has focused on looking at all aspects of the operation to maximize the potential of the
Slide 17: Highlights of Additional Royal Gold Agreement
Highlights of Additional Royal Gold Agreement(1) Additional agreement with Royal Gold unlocks incremental mineral reserves & resources at Mount Milligan TRANSACTION HIGHLIGHTS Gold and Copper Payments Received from Royal Gold(3) Immediately extends the mine life to 2035; Potential for future Gold Co
Slide 18: Öksüt Mine | Türkiye
Öksüt Mine | Türkiye DETAILS ON OPERATION Kayseri Province, 100% owned 2029 Open pit heap leach gold mine operation Türkiye Sliding scale NSR MINE LIFE Commercial production achieved in May 2020 295km SE of Ankara royalty to Turkish (Reserves only) Government 2023 OPERATIONAL PERFORMANCE Gold produc
Slide 19: Öksüt's Strategic Plan
Öksüt’s Strategic Plan Updated life of mine plan will generate positive free cash flow and the mine remains a strategic asset Öksüt Life of Mine Plan STRATEGIC PLAN Elevated production is expected through mid-2024 as the Additions to inventory and stockpiles are processed through the ADR plant, at G
Slide 20: Molybdenum Business Unit
Molybdenum Business Unit THOMPSON CREEK ENDAKO LANGELOTH THOMPSON CREEK MINE MINE MINE METALLURGICAL FACILITY Located in Idaho, among the largest open-pit primary moly mines in the world 100% 75% 100% Operations began in 1983 using open-pit mining and on-site 25.5ktpd mill owned owned owned Placed o
Slide 21: Thompson Creek Mine Prefeasibility Study
Thompson Creek Mine Prefeasibility Study A restart of Thompson Creek Mine, vertically integrated with operations at Langeloth, would result in a combined $373M after-tax NPV5% and 16% IRR based on $20/lb molybdenum price Thompson Creek PFS Production & Cost Profile THOMPSON CREEK MINE – CAPITAL EXPE
Slide 22: Goldfield Project | Nevada, USA
Goldfield Project | Nevada, USA ACQUISITION Acquired in Esmeralda County, 100% 2022 Purchased for $207 million in February 2022 Nevada Owned(1) Large land package located in a prolific mining district which has historically 30km south of Tonopah produced over 4 million ounces of gold PROJECT DETAILS
Slide 23: Goldfield Project – Exploration Targets
Goldfield Project – Exploration Targets Focus exploration activities on oxide & transition material, principally in the Gemfield and nearby deposits Gemfield McMahon Ridge Callisto 3,000 m Exploration Jupiter 4,000 m Definition NE Zone Eastern Domain 3,000 m Exploration Diamondfield 2,000 m Explorat
Slide 24: Kemess Project | BC, Canada
Kemess Project | BC, Canada ACQUISITION North Central British Columbia, 100% Acquired in Purchased for C$310 million(2) in January 2018 Canada owned 2018 Kemess has several permits in place and an impact benefit agreement with 430km NW of Prince George 100% silver royalty the First Nation partner wi
Slide 25: Appendix
APPENDIX
Slide 26: Capital Markets Information
Capital Markets Information SHARE PRICE PERFORMANCE 100% 80% 60% Price Return (%) 40% 20% 0% -20% -40% 1-Nov-22 1-Dec-22 1-Jan-23 1-Feb-23 1-Mar-23 1-Apr-23 1-May-23 1-Jun-23 1-Jul-23 1-Aug-23 1-Sep-23 1-Oct-23 Centerra Gold Peer Average S&P/TSX Global Gold Source: S&P Capital IQ Capital Structure(1
Slide 27: Leadership Team
Leadership Team Paul Tomory Paul Chawrun Darren J. Millman President and Chief Executive Vice President Executive Vice President Executive Officer and Chief Operating Officer and Chief Financial Officer Joined Centerra in May 2023. Joined Centerra in September 2022. He was promoted to CFO at Centerr
Slide 28: Board of Directors
Board of Directors Michael S. Parrett Richard W. Connor Wendy Kei Jacques Perron Chair and Director Director Director Director Has been a director of Centerra since May 2014. Has been a director since June 2012. Has been a director since May 2022. Has been a director since October 2016. Appointed Ch
Slide 29: Molybdenum Market – Strong Fundamentals
Molybdenum Market – Strong Fundamentals MOLYBDENUM SUPPLY MARKET SUPPLY-DEMAND BALANCE AND PRICE MOLYBDENUM DEMAND Molybdenum market expected to be in Forecast steady demand growth deficit until the end of the decade of 2% per year Molybdenum by-product production A primary molybdenum use is in from
Slide 30: 2023-2024 Production & Cost Guidance
2023-2024 Production & Cost Guidance 2023-2024 Production Guidance (Koz) FY 2023 Actuals 2023 Guidance 2024 Guidance Consolidated Gold Production 350 340 – 360 370 – 410 Mount Milligan(1,2) 154 150 – 160 180 – 200 Öksüt 196 190 – 200 190 – 210 Total Copper Production(1,2) (Mlb) 62 60 – 70 55 – 65 20
Slide 31: 2023-2024 Capital Expenditures and Other Guidance
2023-2024 Capital Expenditures and Other Guidance 2023-2024 Capital Expenditures Guidance ($M) Q3 2023 YTD 2023 Guidance 2024 Guidance Consolidated Additions to PP&E 53.8 90 – 115 108 – 140 Mount Milligan 25.4 50 – 60 55 – 65 Öksüt 23.4 35 – 45 40 – 50 Consolidated Sustaining Capital Expenditures(1)
Slide 32: 2023-2024 Project and Molybdenum Business Unit Guidance
2023-2024 Project and Molybdenum Business Unit Guidance Project Development & Exploration Costs(1) ($M) Q3 2023 YTD 2023 Guidance 2024 Guidance Goldfield – Project Development Costs 12.5 12 – 17 9 – 13 Thompson Creek Mine – Project Development Costs 7.6 12 – 13 17 - 20 Total Exploration Costs 42.9 4
Slide 33: Consolidated Financial & Operating Highlights
Consolidated Financial & Operating Highlights Financial Highlights ($M, except as noted) Q3 2023 YTD 2023 2022 2021 Revenue $343.9 $754.9 $850.2 $900.1 Production costs $186.8 $544.6 $574.6 $487.7 Gold production costs ($/oz) $643 $820 $681 $604 All-in sustaining costs on a by-product basis(1) ($/oz
Slide 34: Mount Milligan Financial & Operating Highlights
Mount Milligan Financial & Operating Highlights Financial Highlights ($M, except as noted) Q3 2023 YTD 2023 2022 2021 Gold revenue $58.3 $167.5 $248.6 $267.9 Total revenue $106.3 $304.8 $472.5 $505.9 Production costs $80.4 $241.3 $269.0 $256.8 Gold production costs ($/oz) $1,050 $1,134 $767 $683 All
Slide 35: Öksüt Financial & Operating Highlights
Öksüt Financial & Operating Highlights Financial Highlights ($M, except as noted) Q3 2023 YTD 2023 2022 2021 Revenue $170.0 $190.9 $101.6 $199.4 Production costs(1) $39.2 $43.5 $21.1 $51.1 Gold production costs ($/oz) $445 $440 $386 $457 All-in sustaining costs on a by-product basis(2) ($/oz) $582 $
Slide 36: Molybdenum BU Financial & Operating Highlights
Molybdenum BU Financial & Operating Highlights Financial Highlights ($M, except as noted) Q3 2023 YTD 2023 2022 2021 Total revenue $67.7 $259.3 $276.1 $194.8 Production costs $67.2 $259.8 $284.5 $179.7 Earnings (loss) from mine operations ($0.7) ($4.0) ($13.6) $8.7 Care and maintenance costs – Molyb
Slide 37: 2023 Sensitivities and Material Assumptions
2023 Sensitivities and Material Assumptions 2023 SENSITIVITIES Impact on Impact on ($M) ($/oz) Production Costs Capital Cash AISC on a by-product & Taxes Costs Flows basis per ounce(4) -$50/oz 1.5 – 1.8 -- 3.5 – 4.5 9 – 10 Gold price(1,2) +$50/oz 1.0 – 1.2 -- 6.5 – 7.5 1–2 -10% 0.1 – 0.3 -- 2.5 – 5.
Slide 38: 2024 Sensitivities and Material Assumptions
2024 Sensitivities and Material Assumptions 2024 SENSITIVITIES Impact on Impact on ($M) ($/oz) Production Capital Cash AISC on a by-product Revenues Costs & Taxes Costs Flows basis per ounce(4) -$50/oz 8.5 – 10.5 -- 15.5 – 17.0 7.0 – 8.5 10 – 12 Gold price(1) +$50/oz 8.5 – 10.5 -- 15.5 – 17.0 7.0 –
Slide 39: Mineral Reserves & Resources – Gold
Mineral Reserves & Resources – Gold(1) (as of December 31, 2023) Proven Gold Reserves Probable Gold Reserves Total Proven & Probable Gold Reserves Property Tonnes Grade Contained Grade Contained Grade Contained Tonnes (kt) Tonnes (kt) (kt) (g/t) Gold (koz) (g/t) Gold (koz) (g/t) Gold (koz) Mount Mil
Slide 40: Mineral Reserves & Resources – Copper
Mineral Reserves & Resources – Copper(1) (as of December 31, 2023) Proven Copper Reserves Probable Copper Reserves Total Proven & Probable Copper Reserves Property Tonnes Copper Contained Tonnes Copper Contained Tonnes Copper Grade Contained (kt) Grade (%) Copper (Mlbs) (kt) Grade (%) Copper (Mlbs)
Slide 41: Mineral Reserves & Resources – Molybdenum
Mineral Reserves & Resources – Molybdenum(1) (as of December 31, 2023) Measured & Indicated Molybdenum Mineral Resources Measured Resources(2) Indicated Resources(2) Total Measured & Indicated Resources Property Tonnes Moly Grade Contained Tonnes Moly Grade Contained Tonnes Moly Grade Contained (kt)
Slide 42: Mineral Reserves & Resources Additional Footnotes
Mineral Reserves & Resources Additional Footnotes General A conversion factor of 31.1035 grams per troy ounce of gold is used in the mineral reserve and mineral resource estimates. Mount Milligan Mine The mineral reserves have been estimated based on a gold price of $1,500 per ounce, copper price of
Slide 43: Mineral Reserves & Resources Additional Footnotes
Mineral Reserves & Resources Additional Footnotes Qualified Person – Mineral Reserves and Resources Jean-Francois St-Onge, Professional Engineer, member of the Professional Engineers of Ontario (PEO) and Centerra’s Senior Director, Technical Services, has reviewed and approved the scientific and tec
Slide 44: Thank You!
TSX CG NYSE CGAU THANK YOU! 1 University Avenue, Suite 1500 phone 416-204-1953 Toronto, Ontario M5J 2P1 fax 416-204-1954 email info@centerragold.com
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