Centerra Gold Inc. · TSX:CG
Centerra Gold — Scotia conference November 2005
32 slides from Centerra Gold's conference presentation, November 2005
Slide 1: David Petroff, Executive Vice President and Chief Financial Officer
David Petroff Executive Vice President and Chief Financial Officer
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
Slide 4: A Pure-Play Gold Producer
A Pure-Play 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 12 years of experience exploring, developing and operating in the region
Slide 5: Share and Ownership Profile
Share and Ownership Profile z Symbol CG on the TSX z Market capitalization of US$1.5B z 72,079,605 common shares issued Ownership Public Shareholders 31% Cameco 53% Kyrgyzaltyn 16%
Slide 6: Operating and Exploration Assets
Operating and Exploration Assets Kyrgyz Republic Mongolia Kumtor 100% Boroo Southwest Zone 95% Gatsuurt Property Sarytor 100% Nevada REN JV with Barrick Gold 62% Operating mines Exploration projects
Slide 7: Reserves and Resources
Reserves and Resources As at December 31, 2004 (000’s of contained ounces) 100% basis Reserves Kumtor 3,249 Boroo 1,172 Total 4,421 Resources Kumtor 1,914 Boroo 194 Gatsuurt(1) 1,277 Ren 791 Total 4,176 (1) As at April 29, 2005 • Assumptions: − Gold price of $375 − Cutoff grades range from 0.9 grams
Slide 8: Solid Earnings and Cash Flow Generation
Solid Earnings and Cash Flow Generation Nine Months ended September 30, 2005 Production – ozs 620,571 Earnings – US$ millions $36 EPS $0.50 Cash flow – US$ millions $79 CPS $1.09 Cash – US$ millions $212
Slide 9: Low-Cost Production
Low-Cost Production Nine Months Ended September 30, 2005 Estimated Industry Average Cash Cost = $260 $254 $225 $171 Boroo Kumtor Centerra Consolidated
Slide 10: 2005 Outlook
2005 Outlook Forecast 2005 Production – 100% basis 800,000 Production – beneficial ozs 785,000 Cash cost – US$ per oz $232 Exploration investment – US$ millions $24
Slide 11: Focused Growth Strategy
Focused Growth Strategy 3. Selective acquisitions 2. Advance later-stage exploration properties 1. New reserves existing mines
Slide 12: Two Exceptional Mines: Kumtor Highlights
Two Exceptional Mines: Kumtor Highlights Kumtor – 100% Kyrgyz Republic z Produced over five million ozs z On prolific Tien Shan gold belt z Long-life potential Kumtor z 2005 estimates: – production of 512,000 ozs – cash cost of $265 per oz z Reserves: 3.3M ozs z Additional resources: – 1.9M ozs meas
Slide 13: 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
Slide 14: New Reserves, Existing Mines
New Reserves, Existing Mines Lysi Glacier Over 5.0M ounces Gold produced by Dec31, 2004 NB Zone Including SB Zone Including grades averaging 3 to grades averaging 4 5 grams per tonne to 13 grams per Gold over widths of 26 tonne Gold over to 64 metres. widths of 26 to 68 metres. 2400m. 2800m.
Slide 15: Kumtor: Important to the Kyrgyz Republic
Kumtor: Important to the Kyrgyz Republic z New government established z Kyrgyz Republic is a shareholder in Centerra z Kumtor’s production accounts for – 7% of GDP – 40% of export earnings – 44% of total industrial production
Slide 16: Two Exceptional Mines: Boroo Highlights
Two Exceptional Mines: Boroo Highlights Boroo – 95% Mongolia z Second year of operation z 2005 estimates: – production of 285,000 ozs Boroo – cash cost of $173 per oz z Positive business climate z In 2nd year of three-year tax holiday z Reserves: 1.2M ozs z Additional resources: – 0.2M ozs measured
Slide 17: New Reserves, Existing Mines
New Reserves, Existing Mines z Testing periphery of the open pit z In-filling within the existing drill pattern z Replaced 2004 production
Slide 18: Feasibility Stage Project – Gatsuurt
Feasibility Stage Project – Gatsuurt z 35 kilometres east of Boroo mine Mongolia z Central Zone: – Indicated resources: – 11.3M tonnes @ 3.5 g/t for 1.3M oz Au Gatsuurt – Inferred resources: – 2.2M tonnes @ 3 g/t for 0.2M oz Au z Feasibility study in progress z Remains open at depth z Project owned
Slide 19: Main Zone – Potential to Add to Resources
Main Zone – Potential to Add to Resources
Slide 20: Summary of Successful Exploration Program
Summary of Successful Exploration Program Added one year of production to reserves at Kumtor, Boroo Gatsuurt deposit Kumtor – defined, upgraded – began feasibility study – identified new high-grade mineralization Average discovery cost of $10 per oz Increased budget by 60% to $24 million Boroo
Slide 21: Focused Growth Strategy
Focused Growth Strategy 3. Selective acquisitions 2. Advance later-stage exploration properties 1. New reserves existing mines
Slide 22: Our Approach to Acquisitions
Our Approach to Acquisitions z Later-stage projects and operating mines – >100,000 ounces of annual gold production – >1M ounces of reserves z Must have potential to add to shareholder value z All the resources to grow – $212M cash, no debt – extensive contacts and expertise z Geographic priorities
Slide 23: Home Court Advantage
Home Court Advantage Kyrgyz Republic Kumtor KYRGYZ REPUBLIC z Partner / investor of choice
Slide 24: Home Court Advantage
Home Court Advantage Mongolia RUSSIA Boroo Trans-Mongolian MONGOLIA MONGOLIA Trans-Manchurian Highways Rail CHINA Trans-China Beijing 200 0 200 400 CHI kilometres NA z Tremendous unlocked potential z Substantial land position
Slide 25: Russia: A Natural Market for Centerra
Russia: A Natural Market for Centerra z Under-capitalized exploration and mine development z More competition internally Russia Kazakhstan Mongolia Uzbekistan Azerbaijan Kyrgyz Turkmenistan Republic China
Slide 26: China: Within Centerra's Sphere
China: Within Centerra’s Sphere z More open to outsiders z Extension of favorable geology Russia Kazakhstan Mongolia Uzbekistan Kyrgyz Azerbaijan Republic Turkmenistan Tajikistan China Iran Afghanistan Pakistan India
Slide 27: Kazakhstan: Strong Familiarity
Kazakhstan: Strong Familiarity z Existing opportunities z Open for investment Russia Kazakhstan Mongolia Uzbekistan Kyrgyz Azerbaijan Republic Turkmenistan Tajikistan China Iran Afghanistan Pakistan India
Slide 28: Uzbekistan: Open to Opportunities
Uzbekistan: Open to Opportunities z Existing gold reserves z A more challenging environment Russia Kazakhstan Mongolia Azerbaijan Uzbekistan Kyrgyz Republic Turkmenistan Tajikistan China Iran Afghanistan Pakistan India
Slide 29: 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 Opportunities
Slide 30: Competitive Advantage in the Area
Competitive Advantage in the Area z 12 years experience in the region z Solid corporate citizen z Delivered on commitments z Strong working relationships
Slide 31: 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
Slide 32: David Petroff
1 University Ave. Suite 1500, Toronto, Ontario M5J 2P1 Phone: (416) 204-1953 www.centerragold.com Trading symbol: CG November, 2005 David Petroff Executive Vice President and Chief Financial Officer