Centerra Gold Inc. · TSX:CG
Centerra Gold — Investor Presentation (June 2018)
35 slides from Centerra Gold's investor presentation, June 2018
Slide 1: Investor Presentation June 2018
Investor Presentation June 2018 TSX: CG www.centerragold.com
Slide 2: Caution Regarding Forward-Looking Information
Caution Regarding Forward-Looking Information Information contained in this presentation 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 informati
Slide 3: Centerra: Built For Success
Centerra: Built For Success Corporate Highlights Consensus Asset NAV Breakdown Internationally Diversified Gold Producer Mongolia U.S. 2% 2% Turkey 9% Two Cornerstone Lower-Cost Quartile Assets 2017 Gold Production 785koz at AISC1 of $688 per ounce and 53.6M lbs of copper Canada Kyrgyz 54% January 2
Slide 4: 2017 Results
Centerra: 2017 Results 2017: Internally Funded Business (US$MM’s) Liquidity Profile March 31, 2018 (US$MM’s) 800 188 209 700 600 127 98 $3353 500 409 417 400 US$458MM 300 200 2 100 $123 0 1 1 2016 Cash Mt Milligan Kumtor FCF Debt Other 2017 Cash FCF Repayments (Projects, 2 3 Cash Reserves Undrawn Cr
Slide 5: Lower-Cost Asset Base
Centerra: Lower-Cost Asset Base • Kemess Underground represents a potential fourth Centerra mine in the bottom quartile of global gold producers • Royalty cash flow provides additional margin enhancement AISC Industry Curve (By-P roduct Basis) 0% 25% 50% 75% 100% $2,500 Centerra Gold (US$799-885/oz
Slide 6: Asset Breakdown
Centerra: Asset Breakdown 2017 Free Cash Flow Consensus Asset NAV Consensus Asset NAV (US$MM’s)(1) (US$MM’s) Mount Milligan Langeloth Mount Milligan $1,001 Royalties3 1% Gatsuurt $127 3% 1% Greenstone 5% Kumtor Other 7% Mt. Milligan $916 Kumtor 34% $188 Öksüt Kemess 8% $290 Öksüt Kemess 10% $256 Gre
Slide 7: Growing Intrinsic Value
Centerra: Growing Intrinsic Value Shares Outstanding (MM's) Reserves Per 1,000 Shares Production Per 1,000 Shares 350 70.00 2.80 63.49 292 2.69 300 60.00 55.82 2.70 2.63 252 236 237 2.60 250 50.00 2.50 200 40.00 35.44 32.63 2.38 2.40 150 30.00 2.30 2.27 100 20.00 2.20 50 10.00 2.10 0 0.00 2.00 2014
Slide 8: High-Quality Producing and Growth Assets
Centerra: High-Quality Producing and Growth Assets Greenstone Project Mount Milligan Mine Kumtor Mine (50%) Au, Cu Au Au Canada Kyrgyz Republic Canada Gatsuurt Project Au Mongolia Kemess Underground and East Projects Au, Cu Canada Operations Öksüt Project Development Au Molybdenum Asset Turkey June
Slide 9: Mount Milligan: Long Life, Low Cost Gold Copper Mine
Mount Milligan: Long Life, Low Cost Gold Copper Mine 2018E 2016 2017 Guidance Gold Production (koz) 205 223 195-215 Copper Production (Mlbs) 59 54 47-52 All-In Sustaining Costs $509 $505 $806-$888 (US$/oz)(1) Sustaining Capital ($MM)(1) NA $30 $44 Remaining reserve life (years) +20 Gold Copper P&P R
Slide 10: Kumtor: World Class Open Pit Gold Mine
Kumtor: World Class Open Pit Gold Mine 2018E 2016 2017 Guidance Gold Production (koz) 551 563 450-500 All-In Sustaining Costs ($/oz) (1) $640 $698 $733-$815 Sustaining Capital ($MM)(1) $61 $61 $49 Growth Capital ($MM)(1) $15 $18 $14 Projected Asset Life (years) +8 Reserves(2) (Moz) 4.5 Au Grade (g/t
Slide 11: Öksüt: Funded High Margin Gold Production
Öksüt: Funded High Margin Gold Production 2015 Feasibility Highlights Mine Type Open Pit, Heap Leach Avg. LOM Annual Production 110koz Au Avg. LOM AISC(1) (US$/oz) $490 Reserve Mine Life 8 years Development Capex (US$MM) $221 LOM Sustaining Capital(1) (US$MM) $10 Öksüt Gold Project P&P Reserves(2)(M
Slide 12: Öksüt: Construction
Öksüt: Construction Mobilizing Construction Equipment Site Safety Protocol Main Access Road Construction Pre-Shift Safety Meeting Main Access Road Construction Site Road Construction June 2018 12
Slide 13: Kemess: Site Layout – C$1Billion of Infrastructure
Kemess: Site Layout – C$1Billion of Infrastructure Fly-in, Fly-out Work Camp South Open Pit (Tailings Storage Facility) Metallurgical Facility Kemess Underground & East Deposits June 2018 13
Slide 14: Kemess: De-Risked Brownfield Project
Kemess: De-Risked Brownfield Project(1) • Established mining jurisdiction Kwadacha Kemess Project • (Fort Ware) Advanced-stage Kemess Omineca Resource Project Tsay Keh Access Road − EA Approved, IBA in hand, FS complete Forest Service Road • Low-risk brownfield development 0 100 200 Kilometers Dawso
Slide 15: Kemess: Large, Low-Cost Production
Kemess: Large, Low-Cost Production Kemess Underground – 2016 Feasibility Highlights(1) Kemess East– 2017 PEA Highlights(1) Mine Type Underground Block Cave Mine Type Underground Panel Cave Avg. LOM Gold Production (koz) 106 Avg. LOM Gold Production (koz) 80 Avg. LOM By-Product AISC (US$/oz)(2) $244
Slide 16: Kemess: Timeline – And Copper Outlook
Kemess: Timeline – And Copper Outlook Kemess Timeline 2016 2017 2018 2019 2020 2021 2022 Federal and Provincial EA Approvals KUG Impact Benefit Agreement Signed Normal Course Permitting Detailed Engineering Access Corridor Development Decline Development Develop Panel Cave First Production Copper Ou
Slide 17: Potential Upside Optionality - Molybdenum
Centerra: Potential Upside Optionality - Molybdenum Molybdenum Price Movement Thompson Creek Mine 14.00 ● Located in Idaho, is the world’s fourth largest open-pit primary 13.00 molybdenum mine 12.00 ● Operations began in 1983, using conventional open-pit mining and a on- site 25,500 tpd mill 11.00 ●
Slide 18: Lower-Cost Asset Base
Centerra: Lower-Cost Asset Base • Kemess Underground represents a potential fourth Centerra mine in the bottom quartile of global gold producers • Royalty cash flow provides additional margin enhancement AISC Industry Curve (By-P roduct Basis) 0% 25% 50% 75% 100% $2,500 Centerra Gold (US$799-885/oz
Slide 19: Appendix
Appendix TSX: CG www.centerragold.com
Slide 20: Q1 - 2018 Corporate Highlights
Centerra: Q1 - 2018 Corporate Highlights Safety – Kumtor achieved 1 full year & 6 million man-hours without a lost time injury Apr 11, 2018 Closed AuRico Metals Acquisition and Fully Integrated Assets Mount Milligan Mill Operating Both Ball Mill Circuits Averaging 40,000 tpd Started Construc
Slide 21: Q1-2018 Operating Highlights
Q1-2018 Operating Highlights Q1 2018 gold production - Kumtor 100,220 ounces, Mount Milligan 29,544 ounces Q1 2018 copper production - Mount Milligan 6,143,000 pounds Mount Milligan operating both ball mills averaging 40,000 tpd throughput Kumtor achieved 1 full year & 6 million man-hours without a
Slide 22: Q1-2018 Mount Milligan - Update
Q1-2018 Mount Milligan - Update Restarted milling at partial capacity Feb.5, 2018 ramping up to approximately 30,000 tpd; Second ball mill started March 23, 2018, throughput averaging 40,000 tpd; Expect to return to full capacity after spring melt; 2nd half 2018 expect to average 55,000 tpd Go
Slide 23: Mount Milligan: Q1-2018 Exploration
Mount Milligan: Q1-2018 Exploration C. Paul Jago, a Member of the Engineers and Geoscientists British Columbia, is Centerra’s qualified person for the purpose of National June 2018 Instrument 43-101. 23
Slide 24: Q1-2018 Financial Highlights
Q1-2018 Financial Highlights1 Quarter Ended Quarter Ended (in thousands, except ounces, per share amounts, and average realized price2) March 31, 2018 March 31, 2017 Revenue $235,399 $285,342 Total gold ounces sold 132,432 187,914 Total copper pounds sold (000’s) 4,506 13,612 Operating cash flow bef
Slide 25: Q1-2018 Other Financial Highlights
Q1- 2018 Other Financial Highlights Gold Sales of 132,432 ounces / Copper Sales of 4.5 million pounds in Q1, 2018 Consolidated First Quarter 2018 AISC1 of $932 per ounce Q1, 2018 AISC1 of $758 per ounce at Kumtor and $1,554 per ounce at Mount Milligan March 31, 2018 Total Liquidity $458 Million Succ
Slide 26: Kemess: Overview
Kemess: Overview Kemess Underground (Feasibility – 2016)(1) • Reserves of 1.9Moz Au and 0.6Blbs Cu • LOM of 12 years at 106koz Au/p.a. and 47Mlbs/p.a. at AISC(2) of $244/oz on a by-product basis • Environmental approvals and IBA received • Awaiting receipt of permit application Kemess East (PEA – Ma
Slide 27: Gatsuurt: Gold Development Project
Gatsuurt: Gold Development Project 2017 Feasibility Highlights(1) Mine Type Open Pit The Gatsuurt Project is ~90 km north of Ulaanbaatar Avg. LOM Annual Production 111koz Au Avg. LOM AISC(1) (US$/oz) $870 Reserve Mine Life 10 years LOM Development Capex (US$MM) $245 LOM Sustaining Capital (US$MM) $3
Slide 28: Greenstone: One of Canada's Largest Undeveloped Open Pit Gold Mines
Greenstone: One of Canada’s Largest Undeveloped Open Pit Gold Mines Cornerstone Canadian Development Project Ontario: Top Tier Mining Jurisdiction 50:50 development partnership with Premier Gold Open pit reserves(1) (100%) 4.7Moz Au @ 1.02 g/t Historic gold production of 4.12M oz (~1934-1970) Large
Slide 29: Greenstone: One of Canada's Largest Undeveloped Open Pit Gold Mines
Greenstone: One of Canada’s Largest Undeveloped Open Pit Gold Mines Cornerstone Canadian Development Project Ontario: Top Tier Mining Jurisdiction 50:50 development partnership with Premier Gold Open pit reserves(1) (100%) 4.7Moz Au @ 1.02 g/t Historic gold production of 4.12M oz (~1934-1970) Large
Slide 30: 2018 Guidance
Centerra: 2018 Guidance 2018 Production Guidance Units Kumtor Mount Milligan(1) Centerra Gold Total Gold Payable Production(2) (Koz) 450 – 500 195 – 215 645 – 715 Copper Total Copper Payable Production(3) (Mlb) – 47 – 52 47 – 52 2018 All-in Sustaining Unit Costs (5) Kumtor Mount Milligan(1) Centerra
Slide 31: 2018 Guidance Sensitivities
Centerra: 2018 Guidance Sensitivities Impact on Impact on ($ millions) ($ per ounce sold) Change Net Earnings AISC(3) on by-product Costs Revenues Cash flows (after tax) basis Gold price(1) $50/oz 3.7 – 4.3 21.5 – 24.7 17.8 – 20.4 17.8 – 20.4 0-1 Copper price(1) 10% 2.1 – 2.5 7.5 – 8.7 5.4 – 6.2 5.4
Slide 32: Mineral Reserves - Proven & Probable
Centerra: Mineral Reserves - Proven & Probable1 Proven and Probable Gold Mineral Reserves Increase to 16.3 million ounces Proven and Probable Copper Mineral Reserves are 2,568 million pounds Gold Mineral Reserves Proven Probable Total Proven and Probable Property Tonnes Grade Contained Tonnes Grade
Slide 33: Investor Relations Highlights
Centerra: Investor Relations Highlights Research Coverage Top Ten (10) Institutional Shareholders Brokerage Firms Rating Target Buy C$10.00 Institution/Firm Q1-2018 1. BMO Capital Markets 2. BofA Merrill Lynch Neutral C$8.75 1. Blackrock 12.03% 3. Canaccord Genuity Hold C$8.00 2. Van Eck Associates
Slide 34: Directors
Centerra: Directors Board of Directors Background STEPHEN A. LANG Chairman Appointed Director of Centerra’s Board, June 2008 BRUCE V. WALTER Vice Chair Appointed Director of Centerra’s Board, May 2008 SCOTT G. PERRY Director Appointed Director of Centerra’s Board, January 2016 RICHARD W. CONNOR Dire
Slide 35: TSX: CG www.centerragold.com
TSX: CG www.centerragold.com