Centerra Gold Inc. · TSX:CG
Centerra Gold — Q3 2006 Earnings Presentation
19 slides from Centerra Gold's earnings presentation, Nov 1, 2006
Slide 1: Q3 2006 Conference Call
November 1, 2006 Q3 2006 Conference Call
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements contained in this presentation and oral statements made, 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 t
Slide 3: Speakers
Speakers ¾ Len Homeniuk President and Chief Executive Officer ¾ George Burns Vice President and Chief Operating Officer ¾ David Petroff Executive Vice President and Chief Financial Officer ¾ Ian Atkinson Vice President, Exploration November 1, 2006 Q3 2006 Results Conference Call 3
Slide 4: Introduction
Introduction ¾ Len Homeniuk President and Chief Executive Officer November 1, 2006 Q3 2006 Results Conference Call 4
Slide 5: Operations Review - George Burns, COO
Operations Review - George Burns, COO z Q3 operations review z Revised mining plan at Kumtor z Boroo/Gatsuurt z Outlook for 2006 November 1, 2006 Q3 2006 Results Conference Call 5
Slide 6: Operations Review – Q3 Summary
Operations Review – Q3 Summary Kumtor Q3 2006 Q3 2005 Ounces poured 52,665 123,162 Cash Cost $719 $277 Average mill grade (g/t) 1.64 3.35 Recovery 64.4% 82.0% Boroo Q3 2006 Q3 2005 Ounces poured 73,365 70,734 Cash Cost $220 $187 Average mill grade (g/t) 4.15 4.05 Recovery 84.7% 90.3% November 1, 200
Slide 7: Revised Mining Plan at Kumtor
Revised Mining Plan at Kumtor z Mining and milling operation continuing per revised plan – Low grade stock piles being milled – Southwest Pit ore being milled – Accelerate access to SB zone high grade ore z Accelerate development of the Sarytor deposit – Resource conversion to reserves – Mine design
Slide 8: Boroo Heap Leach Project Progressing
Boroo Heap Leach Project Progressing z Internal Feasibility Study (Supported by consultants) – Three million tonnes per annum capacity – Capital cost of $20 million – Column and crib metallurgical test support good recovery – Cost effective Project – Adds value to Boroo z Fourth quarter activities –
Slide 9: 2006 Outlook – Production & Cash Cost
2006 Outlook – Production & Cash Cost 100% Basis 2006 Forecast Ounces Poured (‘000 oz gold) Kumtor 300 Boroo 270 - 275 Centerra Consolidated 570 - 575 Total Cash Cost per Ounce (USD) Kumtor $530 Boroo $210 - $215 Centerra Consolidated $370 - $380 November 1, 2006 Q3 2006 Results Conference Call 9
Slide 10: Financial Review – David Petroff, CFO
Financial Review – David Petroff, CFO Income Statement Highlights– Q3 2006 vs. Q3 2005 US$ millions Q3 2006 Q3 2005 Revenue 76 77 Cost of Sales 59 43 Exploration & Business Development 6 9 Interest and other income (16)* (4) Net Earnings 12* 9 Earnings per common share $0.05* $0.04 • Includes $13.6
Slide 11: Financial Review
Financial Review z Income Statement Highlights– YTD 2006 vs. YTD 2005 US$ millions 2006 2005 YTD YTD Revenue 276 264 Cost of Sales 170 143 Exploration & Business Development 19 21 Interest and other income (22)* (4) Net Earnings 59* 36 Earnings per common share $0.27* $0.17 • Includes $13.6 million
Slide 12: Financial Review (cont)
Financial Review (cont) Cash US$ millions Sept 30/06 Sept 30/05 Cash provided by Operations 12 17 Cash used in Investing Activities (19) (9) Increase/Decrease in Cash (7) 9 Cash at Beginning of Quarter 223 203 Cash Balance at end of Quarter 216 212 November 1, 2006 Q3 2006 Results Conference Call 12
Slide 13: 2006 Spending Outlook
2006 Spending Outlook US$ millions Sept 2006 30/06 YTD Outlook Exploration and Business Development 19 25 Administration 18 26 Capital Expenditures 54 125 Maintenance capital 17 25 Growth capital 36 100 November 1, 2006 Q3 2006 Results Conference Call 13
Slide 14: Sensitivity to the Gold Price
Sensitivity to the Gold Price US$ millions Q4 2006 Effect of $25 change in gold price: Revenues $3.4 Earnings $4.3 Cash flow $3.2 November 1, 2006 Q3 2006 Results Conference Call 14
Slide 15: Exploration Update - Ian Atkinson, VP Exploration
Exploration Update - Ian Atkinson, VP Exploration Kumtor ¾ Four drill holes completed to test targets at south end of Kumtor pit ¾ All holes intersected significant mineralization with returns from 2.24 to 27.73 g/t gold over down hole core lengths of 17.3 to 109.7 metres ¾ SB Zone now delineated ov
Slide 16: Exploration Update (cont)
Exploration Update (cont) REN (Nevada) ¾ Four RC pre-collars, six core tails and wedge core holes and one RC-only hole were completed in third quarter ¾ Three wedge holes were completed from RU-105C to follow up on the high-grade intercept obtained in Q2 2006 ¾ Two high-grade intercepts were obtaine
Slide 17: Exploration Update (cont)
Exploration Update (cont) Gatsuurt ¾ Continuing to develop additional near surface drill targets in immediate area ¾ Further trenching at Balj exposed additional gold bearing mineralization ¾ Drilling is planned for the fourth quarter for Balj target and other targets in the Gatsuurt area. Ian Atkin
Slide 18: Strategic Priorities for 2006
Strategic Priorities for 2006 ¾ Focus on accelerating access to SB zone at Kumtor and advancing Sarytor ¾ Develop new reserves and resources at Kumtor, Boroo, Gatsuurt and REN ¾ Explore growth opportunities in Central Asia, FSU and in other emerging markets November 1, 2006 Q3 2006 Results Conferenc
Slide 19: Question Period
Question Period November 1, 2006 Q3 2006 Results Conference Call 19