Centerra Gold Inc. · TSX:CG
Centerra Gold — Conference Presentation (February 2006)
22 slides from Centerra Gold's conference presentation, February 2006
Slide 1: Len Homeniuk, President and Chief Executive Officer
Len Homeniuk President and Chief Executive Officer February 2006
Slide 2: 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 3: Agenda
Agenda z Background z Operations and exploration projects z Growth strategy February 2006
Slide 4: A Growth-Oriented Gold Producer
A Growth-Oriented Gold Producer z Operating and focused on growing in Central Asia, the former Soviet Union, and other emerging markets z Largest western-based gold producer z Market Capitalization = $2.3 billion z Actively exploring, developing and operating since 1992 February 2006
Slide 5: Reserves and Resources (as at December 31, 2005 – 100% basis)
Reserves and Resources (as at December 31, 2005 – 100% basis) Tonnes (M) Grade (g/t) Ounces (M) Reserves: Kumtor 40.2 3.8 5.0 Boroo 13.4 2.8 1.2 Total 53.6 3.6 6.2 Resources(1): Kumtor 24.0 3.9 3.0 Boroo 2.7 2.4 0.2 Gatsuurt 18.6 3.1 1.8 REN 2.8 13.6 1.2 Total 48.0 4.1 6.3 (1) • Assumptions: Measure
Slide 6: Solid Earnings and Cash Flow Generation
Solid Earnings and Cash Flow Generation Twelve Months ended December 31, 2005 Production (ounces) 787,275 Cash Cost (per ounce)(1)(2) $241 Earnings (millions) $42 EPS $0.59 Cash Flow from Operations $83 (millions) CPS(1) $1.16 Cash (millions) $202 (1)non GAAP (2)Gold Institute Standard February 2006
Slide 7: 2006 Outlook
2006 Outlook Forecast 2006 Production (100% Basis) 729,000 Total Cash Cost $294 (per ounce) Exploration Investment $21 (millions) February 2006
Slide 8: Production Forecast: Then and Now
Production Forecast: THEN AND NOW Centerra Production - Gold Poured 1200 Ounces Gold Poured 1000 (000s of ounces) 800 600 400 200 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year Actual Gold Poured January 31, 2006, Forecast June 22, 2004, IPO Forecast
Slide 9: Two Exceptional Mines: Kumtor Highlights
Two Exceptional Mines: Kumtor Highlights Kumtor – 100% Kyrgyz Republic z On prolific Tien Shan gold belt z Produced over 5.5 M ozs Kumtor z 2005 operating statistics: – production of 501,000 ozs – cash cost of $274 per oz z Reserves: 5.0 M ounces (41.2 Mt @ 3.8 g/t) z Resources(1): 3.0 M ounces (24.
Slide 10: Kumtor – Substantial Reserves Addition
Kumtor – Substantial Reserves Addition Proven & Probable Reserves - Kumtor (thousands of contained ounces) 2005 2005 Dec 31, 2004 Production Addition Dec 31, 2005 3,249 614 2,318 4,953 z Assumptions: – Gold price of $400 versus $375 in 2004 – Minimal increase attributed to gold price – Cutoff grade
Slide 11: Kumtor Inclined Longitudinal Section
Kumtor Inclined Longitudinal Section 330 February 2006
Slide 12: Kumtor – SB Zone – Section 26
Kumtor – SB Zone – Section 26 February 2006
Slide 13: Kumtor Longitudinal Section
Kumtor Longitudinal Section INCREASE OF 2.1 MOZ +5.5 MOZ MINED TD UNTESTED NE AREA SW KS-6 BLOCK MODEL NORTH END TARGET Potential Reserve Expansion N O TI C SE ORIGINAL KS – 5 PIT EXPLORATION NG L O TOPOGRAPHY DESIGN TARGETS PRESENT PIT KS-6 PIT TOPOGRAPHY DESIGN KUMTOR PIT February 2006
Slide 14: Exploration Targets – Kyrgyz Republic
Exploration Targets – Kyrgyz Republic Bedrock Outcrop Petrov Sand and Gravel Glacier Northeast Target Area Kumtor Mill Kumtor Pit 3.0 Km t a ul rF to m Ku SW Zone Sarytor Bordoo Akbel February 2006
Slide 15: Two Exceptional Mines: Boroo Highlights
Two Exceptional Mines: Boroo Highlights Boroo – 95% Mongolia z Second year of operation z 2005 operating statistics (@100%): Boroo – production of 286,000 ozs – cash cost of $183 per oz z Reserves: 1.2 M ozs (13.4 Mt @ 2.8 g/t) February 2006
Slide 16: Feasibility Stage Project – Gatsuurt
Feasibility Stage Project – Gatsuurt z 35 kilometres east of Boroo mine Mongolia z 100% owned by Centerra z Resources: Gatsuurt – Indicated resources: – 18.6 M tonnes @ 3.1 g/t for 1.9 M oz Au – Inferred resources: – 4.0 M tonnes @ 3.0 g/t for 0.4 M oz Au z Feasibility Study completed z Remains open
Slide 17: Gatsuurt Resources and Mineralized Zones
Gatsuurt Resources and Mineralized Zones February 2006
Slide 18: Focused Growth Strategy
Focused Growth Strategy 3. Selective acquisitions 2. Advance late-stage exploration properties 1. New reserves existing mines February 2006
Slide 19: Our Approach to Acquisitions
Our Approach to Acquisitions z Later-stage projects and operating mines – >150,000 ounces of annual gold production – >1M ounces of reserves z Must have potential to add to shareholder value z All the ingredients to grow – $202 M cash, no debt, unhedged – extensive contacts and expertise z Geographi
Slide 20: Why We Like Central Asia and FSU
Why We Like Central Asia and FSU Relatively unexplored using modern technologies - highly prospective geology Fragmented industry - opportunity to be a consolidator Mining culture - experienced skilled labour available Experience - active in area since 1992 Opportunities February 2006
Slide 21: Centerra is Well-Positioned
Centerra is Well-Positioned Two low-cost operating mines Excellent exploration projects at various stages Competitive advantage in target area Balanced growth strategy Strong financial resources February 2006
Slide 22: Len Homeniuk
1 University Ave. Suite 1500, Toronto, Ontario M5J 2P1 Phone: (416) 204-1953 www.centerragold.com Trading symbol: CG February, 2006 Len Homeniuk President and Chief Executive Officer
Centerra Gold — Conference Presentation (February 2006) on 6ix