Centerra Gold Inc. · TSX:CG
Centerra Gold — Corporate Update (September 2024)
23 slides from Centerra Gold's corporate update, Sep 13, 2024
Slide 1: Building a Strong Platform for Future Growth
TSX CG NYSE CGAU BUILDING A STRONG PLATFORM FOR FUTURE GROWTH Strategic Plan for US Molybdenum Operations Conference Call & Webcast September 13, 2024
Slide 2: Caution Regarding Forward Looking Information
Caution Regarding Forward Looking Information Information contained in this document which is not a statement of historical fact, and the documents incorporated by reference herein, may be “forward-looking information” for the purposes of Canadian securities laws and within the meaning of the United
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 and non-GAAP ratios described below. Management believes that the use of these measures assists analysts, investo
Slide 4: Molybdenum: What Is It, How Is It Used?
Molybdenum: What Is It, How Is It Used? Molybdenum (Mo) is mainly a by-product of copper mining, with primary molybdenum mines like Centerra’s Thompson Creek mine yielding high-grade concentrate Concentrates are blended to meet metallurgical or chemical grade specifications and roasted Can be furthe
Slide 5: Molybdenum Demand: Steadily Growing
Molybdenum Demand: Steadily Growing Forecasted steady demand growth of 2% per year on par with historical demand growth from 1995-2023(1) MINERALS WITH RELEVANT DEMAND FOR MOLYBDENUM LOW-CARBON TECHNOLOGIES(3) MOLYBDENUM IS A CRITICAL IN STEEL IS GROWING COMPONENT FOR GREEN ENERGY Energy Storage Car
Slide 6: Molybdenum Supply: Potential Challenges Ahead
Molybdenum Supply: Potential Challenges Ahead Thompson Creek is a unique opportunity for Centerra to have a captive source of high-quality feed, which is becoming increasingly scarce and competitive to source Molybdenum by-product production from existing copper mines, particularly in South Molybden
Slide 7: Molybdenum Price: Strong Fundamentals
Molybdenum Price: Strong Fundamentals Centerra’s molybdenum price forecast of $20/lb is supported by: (1) persistent forecasted supply deficit and (2) sustained robust commodity price performance MOLYBDENUM SUPPLY-DEMAND FORECAST(1) HISTORICAL MOLYBDENUM PRICE(2) Average Mo Prices ($/lb) Jan 2024 –
Slide 8: Molybdenum Value Chain
Molybdenum Value Chain MOLYBDENUM SUPPLY MOLYBDENUM ROASTING MOLYBDENUM DEMAND Metallurgical Technical grade customers Mo oxide Chemical customers Mo Blend & Chemical grade Mo & by- Mining Processing concentrate roast Mo oxide products Global Mo markets Miners and concentrate producers Global Mo con
Slide 9: Molybdenum Business Unit
Molybdenum Business Unit US Molybdenum Operations ENDAKO THOMPSON CREEK MINE MINE THOMPSON CREEK LANGELOTH Located in Idaho, among the largest open-pit primary moly mines in the world MINE METALLURGICAL FACILITY 75% Has an existing open pit, on-site mill, established site facilities and equipment fl
Slide 10: Thompson Creek Mine Feasibility Study
Thompson Creek Mine Feasibility Study A restart of Thompson Creek Mine would result in a $185M after-tax NPV8% and 15% IRR based on $20/lb molybdenum price FEASIBILITY STUDY PRODUCTION PROFILE(1) CAPITAL EXPENDITURES otal Mined (M tons) Molybdenum roduction (Mlb) Grade of Ore rocessed ( Mo) Capital
Slide 11: Thompson Creek: De-risked Capital Project
Thompson Creek: De-risked Capital Project With infrastructure already in place, Thompson Creek initial capital investment is largely de-risked DE-RISKED CAPITAL PROJECT Capital investment is largely de-risked due to an existing pit, significantly advanced equipment rebuilds and equipment purchases a
Slide 12: Metallurgical Facilities Market
Metallurgical Facilities Market Langeloth is a strategic asset given its proximity to North American steel manufacturers LANGELOTH IS A UNIQUE AND STRATEGIC ASSET Given proximity to North American steel manufacturers, the business is important for the area Part of “made in America” story for re-onsh
Slide 13: Langeloth Metallurgical Facility
Langeloth Metallurgical Facility Langeloth can be ramped up to full capacity in a straightforward manner Roaster cleaning Ferromolybdenum production Roaster feed stock Finished products storage 13
Slide 14: Langeloth Attractive Economics
Langeloth Attractive Economics At full capacity, Langeloth is expected to generate approximately $50 million EBITDA(1) per year ROBUST INTEGRATED ECONOMICS Path to ~$50M EBITDA(1) per year ILLUSTRATIVE Strong economics due to synergies with the high-quality concentrate Current blend that could be ac
Slide 15: Langeloth Value Drivers: Capacity Utilization
Langeloth Value Drivers: Capacity Utilization Actively studying Demonstrated the to ability longer-term potential increase Mo at capacity roasting Mount Milligan to unlock additional in a straightforward manner value beyond 2035 HISTORICAL PRODUCTION VOLUME PATH TO INCREASING CAPACITY AT LANGELOTH U
Slide 16: Langeloth Value Drivers: Vertical Integration
Langeloth Value Drivers: Vertical Integration Vertical integration allows Langeloth to increase capacity utilization and realize synergies VERTICALLY INTEGRATED US MOLY OPERATIONS LANGELOTH SYNERGIES WITH THOMPSON CREEK Thompson Creek – a primary molybdenum mine – produces high 1 Increased capacity
Slide 17: Langeloth Commercial Model
Langeloth Commercial Model Langeloth dampens the volatility in the molybdenum market and remains profitable at lower Mo prices REVIEW OF COMMERCIAL MODEL AT LANGELOTH Langeloth pricing mechanism ILLUSTRATIVE Source concentrate (third-party offtake plus Thompson Creek Spread supply), process concentr
Slide 18: Questions?
Questions? Members of the management team available for the Q&A session Paul Tomory President and Chief Executive Officer Paul Chawrun Executive Vice President and Chief Operating Officer Ryan Snyder Executive Vice President and Chief Financial Officer Hélène Timpano Executive Vice President, Strate
Slide 19: Appendix
APPENDIX
Slide 20: Molybdenum BU Financial & Operating Highlights
Molybdenum BU Financial & Operating Highlights Financial Highlights ($M, except as noted) Q2 2024 Q2 YTD 2024 2023 2022 Total revenue 61.2 124.6 306.7 276.1 Production costs 61.3 127.4 312.9 284.5 Earnings (loss) from mine operations (0.9) (4.4) (10.5) (13.6) Care and maintenance costs – Molybdenum
Slide 21: Mineral Reserves & Resources – Molybdenum
Mineral Reserves & Resources – Molybdenum(1) Proven & Probable Molybdenum Mineral Reserves Proven Resources(2) Probable Resources(2) Total Proven & Probable Resources Property Tonnes Moly Grade Contained Tonnes Moly Grade Contained Tonnes Moly Grade Contained (Mt) (%) Moly (Mlbs) (Mt) (%) Moly (Mlbs
Slide 22: Mineral Reserves and Resources Additional Footnotes
Mineral Reserves and Resources Additional Footnotes Thompson Creek Mine Mineral Reserves stated in the table above are the economic portion of the Measured and Indicated Mineral Resource contained within the engineered pit design following the selected ultimate Pseudoflow pit shell. Mineral Reserves
Slide 23: Thank You!
TSX CG NYSE CGAU THANK YOU! 1 University Avenue, Suite 1800 phone 416-204-1953 Toronto, Ontario M5J 2P1 fax 416-204-1954 email info@centerragold.com