Centerra Gold Inc. · TSX:CG
Centerra Gold — Q3 2020 Earnings Presentation
27 slides from Centerra Gold's earnings presentation, Nov 4, 2020
Slide 1: Built for Success: Third Quarter Results Conference Call
Kumtor BUILT FOR SUCCESS Mount Milligan Third Quarter Results Conference Call November 4, 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
Slide 4: Third Quarter Results – Scott Perry, President & CEO
Kumtor BUILT FOR SUCCESS Mount Milligan Third Quarter Results November 4, 2020 Scott Perry – President & CEO TSX: CG Öksüt www.centerragold.com
Slide 5: Q3 2020 ESG Operations Update
Q3 – 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 ~87 months. A Level III reportable environmental incident at the Kemess Underground Project (migratory bird
Slide 6: Centerra: Q3 2020 Corporate Highlights – Operational
Centerra: Q3 – 2020 Corporate Highlights Operational Highlights COVID-19 – Maintaining Proactive Measures, Hygiene Protocols, Social Distancing, Travel Restrictions and Separating Work Crews when on Site Safety – Öksüt achieved three million work hours without a lost time injury Mount Milligan Produ
Slide 7: Q3 2020 Corporate Highlights – Financial
Q3 – 2020 Corporate Highlights Financial Highlights Q3 2020 Net Earnings of $205.7MM or $0.70 per Common Share (basic) Cash Provided by Operations of $359MM ($1.21 per share), (Kumtor $208MM, Mount Milligan $70MM, Öksüt $85MM) Consolidated Free Cash Flow1 $281MM ($157MM from Kumtor, $63MM from Mount
Slide 8: Q3 2020 Corporate Update
Q3 – 2020 Corporate Update AISC Margin Expansion4 (US$/oz) Cash Flow From Operations 3,5 (US$MM’s) 450 1,806 2,000 1,400 1,278 400 1,620 1,800 1,487 359 1,200 1,374 1,403 1,600 350 1,237 1,400 1,000 300 268 1,200 775 816 250 800 708 1,000 604 200 582 560 800 600 521 150 121 427 95 600 91 92 345 100
Slide 9: Third Quarter Results – Dan Desjardins, VP & COO
Kumtor BUILT FOR SUCCESS Mount Milligan Third Quarter Results November 4, 2020 Dan Desjardins – VP & COO TSX: CG Öksüt www.centerragold.com
Slide 10: Q3 2020 Operating Highlights
Q3 – 2020 Operating Highlights Öksüt achieved three million work hours without a lost time injury Q3 2020 gold production - Kumtor 140,182 oz, Mount Milligan 49,854 oz, Öksüt 51,412 oz Q3 2020 copper production - Mount Milligan 23.3 million pounds Kumtor received permit to utilize Lysii Valley for p
Slide 11: 2020 Operations Key Focus
2020 Operations Key Focus Improve Safety Performance Company-wide Continue Ramp up Öksüt Gold Production, Complete Crusher Modifications 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 M
Slide 12: Mount Milligan: Available Water – Sept. 30, 2020
Mount Milligan: Available Water – Sept. 30, 2020 November 2020 12
Slide 13: 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 November 2020 13
Slide 14: Third Quarter Results – Darren Millman, VP & CFO
Kumtor BUILT FOR SUCCESS Mount Milligan Third Quarter Results November 4, 2020 Darren Millman – VP & CFO TSX: CG Öksüt www.centerragold.com
Slide 15: Q3 2020 Financial Highlights
Q3-2020 Financial Highlights1 Quarter Ended Quarter Ended (in thousands, except ounces, per share amounts, and average realized price2) Sept. 30, 2020 Sept. 30, 2019 Revenue $515,166 $388,276 Total gold ounces sold 238,069 216,023 Total copper pounds sold (000’s) 21,726 21,907 Cash provided by opera
Slide 16: Q3 2020 Other Financial Highlights
Q3-2020 Other Financial Highlights Gold Sales of 238,069 ounces / Copper Sales of 21.7 million pounds in Q3 2020 Q3 2020 Net Earnings and Adjusted1 Net Earnings of $205.7MM, $0.70 per common share (basic) Q3 2020 Production Costs of $386 per ounce sold (Kumtor $326/oz., Mount Milligan $612/oz. and Ö
Slide 17: Q3 2020 AISC Margin Expansion
Q3-2020 - AISC1 Margin2 Expansion Consolidated Kumtor Margin AISC Margin AISC 1400 1278 1400 1248 1200 1200 985 1000 1000 911 816 838 811 775 744 800 560 708 800 706 727 $/oz $/oz 582 604 600 521 600 533 427 400 400 200 200 0 0 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q3'18 Q4'18 Q1'19
Slide 18: Summary – Scott Perry
Kumtor BUILT FOR SUCCESS Mount Milligan Third Quarter Results November 4, 2020 Summary – Scott Perry TSX: CG Öksüt www.centerragold.com
Slide 19: Centerra: Built For Success
Centerra: Built For Success Corporate Highlights Retained Earnings Profile (US$) 20201 estimated gold production up to 820koz, copper production up to 90Mlbs, AISC2 of $740 to $790 per ounce 1,800 2,000 1,600 Q3 2020 gold production 241,448 oz, copper production 1,600 1,400 23.3Mlbs, at AISC2 of $52
Slide 20: Q & A and Appendix
Kumtor BUILT FOR SUCCESS Mount Milligan Third Quarter Results November 4, 2020 Q & A and Appendix TSX: CG Öksüt www.centerragold.com
Slide 21: Centerra: COVID-19 Update
Centerra: COVID-19 Update • Priority is the health, safety and well-being of employees, contractors, communities and other stakeholders, and to minimize spread of virus at operations and local communities • Working remotely successfully and where possible • Restrict access to mine sites continues •
Slide 22: Centerra: Committed to Responsible Gold Mining
Centerra: 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 • Ce
Slide 23: Centerra: Low-Cost Asset Base
Centerra: Low-Cost Asset Base 20201 estimated gold production up to 820koz, copper production up to 90Mlbs, AISC2 of $740 to $790 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 $2,000 Cente
Slide 24: Centerra: 2020 Guidance
Centerra: 2020 Guidance6 Mount 2020 Production Guidance Units Kumtor Öksüt Centerra Milligan(1) Gold Total Gold Payable Production(2) (Koz) 520-560 140-160 80-100 740-820 Copper Total Copper Payable Production(2) (Mlb) - 80-90 - 80-90 2020 All-in Sustaining Unit Costs Units Kumtor Mount Milligan(1)
Slide 25: 2020 Guidance Sensitivities and Assumptions
Centerra: 2020 Guidance5 Sensitivities and Assumptions Impact on Impact on ($ 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 0.6 – 1.1 - - 4.0 – 7.7 3.4 – 6.6 3.4 – 6.6
Slide 26: 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 27: Built for Success
Kumtor BUILT FOR SUCCESS Mount Milligan TSX: CG Öksüt www.centerragold.com