Centerra Gold Inc. · TSX:CG
Centerra Gold — Investor Presentation (November 2018)
37 slides from Centerra Gold's investor presentation, November 2018
Slide 1: Investor Presentation November 2018
Investor Presentation November 2018 TSX: CG www.centerragold.com
Slide 2: 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 i
Slide 3: Centerra: Built For Success
Centerra: Built For Success Corporate Highlights Consensus Asset NAV Breakdown Two Cornerstone Lower-Cost Quartile Assets U.S. 2% Turkey 2017 Gold Production 785koz at AISC1 of $688 per ounce 10% and 53.6M lbs of copper Öksüt Construction on Track, Gold Pour Expected Q1, 2020 Canada Sold Royalty Por
Slide 4: Q3 2018 Corporate Update
Centerra: Q3 - 2018 Corporate Update 2018 YTD Cash Flow (US$MM’s) Liquidity Profile Sept.30, 2018 (US$MM’s) 700 600 155 246 500 249 417 400 27 22 126 US$545MM 300 195 195 200 101 100 3 0 Cash Reserves 2 Revolver Credit Facility 3 Oksut Credit Facility 1 1 2017 YE Cash Proceeds from AMI Acquisition M
Slide 5: Lower-Cost Asset Base
Centerra: Lower-Cost Asset Base AISC Industry Curve (By-P roduct Basis) $2,500 25% 50% 75% 100% $2,250 $2,000 Centerra Gold (US$782-829/oz Au) AISC, net (US$/oz Au) $1,750 Kemess Underground $1,500 (US$244/oz)(1) Kumtor $1,250 (US$700-750/oz) Mount Milligan (US$825-875/oz) $1,000 $750 Öksüt (US$490/
Slide 6: Q3 2018 Corporate Highlights
Centerra: Q3 - 2018 Corporate Highlights Safety – Continue to Roll Out Phase 2 of Work Safe – Home Safe Öksüt Project Construction Progressing On Time and On Budget Received Access to Additional Short-term Water Sources at Mount Milligan Made Applications for Medium-term (3-year) Additional/Ex
Slide 7: Leading Capital Efficiency and Profitability
Centerra: Leading Capital Efficiency and Profitability Last 3Y Return on Invested Capital (%) Last 3Y Return on Capital (%) Last 3Y Return on Equity (%) OceanaGold 11% OceanaGold 10% OceanaGold 12% Centerra 8% Centerra 8% Centerra 9% Alacer 5% Alacer 6% B2Gold 6% B2Gold 5% B2Gold 4% Alacer 5% Detour
Slide 8: 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 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) 205 223 175-195 Copper Production (Mlbs) 59 54 40-47 All-In Sustaining Costs $509 $505 $825-$875 (US$/oz)(1) Sustaining Capital ($MM)(1) NA $30 $52 Remaining reserve life (years) +20 Gold Copper P&P R
Slide 10: Kumtor: World Class Open Pit Gold Mine
Kumtor: World Class Open Pit Gold Mine 2018E 2016 2017 Guidance Gold Production (koz) 551 563 490-510 All-In Sustaining Costs ($/oz) (1) $640 $698 $700-$750 Sustaining Capital ($MM)(1) $61 $61 $41 Growth Capital ($MM)(1) $15 $18 $17 Projected Asset Life (years) +8 Reserves(2) (Moz) 4.5 Au Grade (g/t
Slide 11: Öksüt: Funded High Margin Gold Production
Öksüt: Funded High Margin Gold Production 2015 Feasibility Highlights Mine Type Open Pit, Heap Leach Avg. LOM Annual Production 110koz Au Avg. LOM AISC(1) (US$/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 - Q3-2018 Construction Update
Öksüt - Q3-2018 Construction Update Installing Road Barriers Crusher Area Construction Primary Crusher Retaining Wall Secondary Crusher Foundations ADR Plant Area Construction Electric Sub-Station Construction November 2018 12
Slide 13: Kemess: Site Layout – C$1Billion of Infrastructure
Kemess: Site Layout – C$1Billion of Infrastructure Fly-in, Fly-out Work Camp South Open Pit (Tailings Storage Facility) Metallurgical Facility Kemess Underground & East Deposits November 2018 13
Slide 14: Kemess: De-Risked Brownfield Project
Kemess: De-Risked Brownfield Project(1) • Established mining jurisdiction Kwadacha Kemess Project • (Fort Ware) Advanced-stage Kemess Omineca Resource Project Tsay Keh Access Road − EA Approved, IBA in hand, Amended Mines Act Forest Service Road Permit (construction permit) received, Effluent 0 100
Slide 15: Kemess: Large, Low-Cost Production
Kemess: Large, Low-Cost Production Kemess Underground – 2016 Feasibility Highlights(1) Kemess East– 2017 PEA Highlights(1) Mine Type Underground Block Cave Mine Type Underground Panel Cave Avg. LOM Gold Production (koz) 106 Avg. LOM Gold Production (koz) 80 Avg. LOM By-Product AISC (US$/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 Block Cave First Production Copper Ou
Slide 17: Potential Upside Optionality - Molybdenum
Centerra: Potential Upside Optionality - Molybdenum Molybdenum Price Movement Thompson Creek Mine ● Located in Idaho, is the world’s fourth largest open-pit primary 14.00 molybdenum mine 13.00 ● Operations began in 1983, using conventional open-pit mining and a on- 12.00 site 25,500 tpd mill 11.00 ●
Slide 18: Lower-Cost Asset Base
Centerra: Lower-Cost Asset Base AISC Industry Curve (By-P roduct Basis) $2,500 25% 50% 75% 100% $2,250 $2,000 Centerra Gold (US$782-829/oz Au) AISC, net (US$/oz Au) $1,750 Kemess Underground $1,500 (US$244/oz)(1) Kumtor $1,250 (US$700-750/oz) Mount Milligan (US$825-875/oz) $1,000 $750 Öksüt (US$490/
Slide 19: Appendix
Appendix TSX: CG www.centerragold.com
Slide 20: High-Quality Producing and Growth Assets
Centerra: High-Quality Producing and Growth Assets Greenstone Project Mount Milligan Mine Kumtor Mine (50%) Au, Cu Au Au Canada Kyrgyz Republic Canada Kemess Underground and East Projects Au, Cu Canada Operations Öksüt Project Development Au Molybdenum Asset Turkey November 2018 20
Slide 21: Greenstone: One of Canada's Largest Undeveloped Open Pit Gold Mines
Greenstone: One of Canada’s Largest Undeveloped Open Pit Gold Mines Cornerstone Canadian Development Project Ontario: Top Tier Mining Jurisdiction 50:50 development partnership with Premier Gold Greenstone Development Project Open pit reserves(1) (100%) 4.7Moz Au @ 1.02 g/t Location: Ontario, Canada
Slide 22: Asset Breakdown
Centerra: Asset Breakdown 2017 Free Cash Flow Consensus Asset NAV Consensus Asset NAV (US$MM’s)(1) (US$MM’s) Mount Milligan Mount Milligan Langeloth $1,001 2% $127 Greenstone 5% Kumtor Other 6% $916 Kumtor Mt. Milligan Öksüt 36% $188 9% Kemess $290 Kemess Öksüt 10% $256 Greenstone $140 Kumtor 32% La
Slide 23: 2017 Results
Centerra: 2017 Results 2017: Internally Funded Business (US$MM’s) Liquidity Profile (US$MM’s) 800 188 209 700 600 127 $417 98 500 409 417 400 US$752MM 300 $335 200 100 0 1 1 2016 Cash Mt Milligan Kumtor FCF Debt Other 2017 Cash FCF Repayments (Projects, 3 Cash Reserves 2 Undrawn Credit Facilities G&
Slide 24: Q3-2018 Operating Highlights
Centerra: Q3-2018 Operating Highlights Q3 2018 gold production - Kumtor 122,445 ounces, Mount Milligan 58,798 ounces Q3 2018 copper production - Mount Milligan 12,704,000 pounds Mount Milligan throughput averaged 40,805 tpd (55,000 tonnes per operating day) Increased gold production guidance at Kumt
Slide 25: Q3-2018 Mount Milligan - Update
Centerra: Q3-2018 Mount Milligan - Update Significant Improvement in Maintenance at Mount Milligan Operated Mill at roughly 55,000 tonnes per operating day during quarter Gold and Copper Recoveries Continue to Improve Year-to-date Received Access to Additional Short-term Water Sources at Mount Milli
Slide 26: Mount Milligan: Short-term Water Sources
Mount Milligan: Short-term Water Sources November 2018 26
Slide 27: Mount Milligan: Q3-2018 Exploration
Mount Milligan: Q3-2018 Exploration C. Paul Jago, a Member of the Engineers and Geoscientists British Columbia, is Centerra’s qualified person for the purpose of National November 2018 Instrument 43-101. 27
Slide 28: Mount Milligan: Q3-2018 Exploration
Mount Milligan: Q3-2018 Exploration C. Paul Jago, a Member of the Engineers and Geoscientists British Columbia, is Centerra’s qualified person for the purpose of National November 2018 Instrument 43-101. 28
Slide 29: Q3-2018 Financial Highlights
Centerra: Q3-2018 Financial Highlights1 Quarter Ended Quarter Ended (in thousands, except ounces, per share amounts, and average realized price2) Sept 30, 2018 Sept 30, 2017 Revenue $259,099 $276,237 Total gold ounces sold 166,716 174,099 Total copper pounds sold (000’s) 13,605 18,644 Operating cash
Slide 30: Q3-2018 Other Financial Highlights
Centerra: Q3-2018 Other Financial Highlights Gold Sales of 166,716 ounces / Copper Sales of 13.6 million pounds in Q3, 2018 Consolidated Third Quarter 2018 AISC1 of $698 per ounce Q3, 2018 AISC1 of $662 per ounce at Kumtor and $677 per ounce at Mount Milligan Liquidity of $545 Million Cash Provided
Slide 31: 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 $244/oz on a by-product basis • Environmental approvals and IBA received • Received Mines Act Permit • Awaiting normal course permits K
Slide 32: Q3 Revised 2018 Guidance
Centerra: Q3 Revised 2018 Guidance 2018 Production Guidance Units Kumtor Mount Milligan(1) Centerra Gold Total Gold Payable Production(2) (Koz) 490 – 510 175 – 195 665 – 705 Copper Total Copper Payable Production(3) (Mlb) – 40 – 47 40 – 47 2018 All-in Sustaining Unit Costs (5) Kumtor Mount Milligan(
Slide 33: 2018 Guidance Sensitivities
Centerra: 2018 Guidance Sensitivities Impact on Impact on ($ millions) ($ per ounce sold) Change Net Earnings AISC(3) on by-product Costs Revenues Cash flows (after tax) basis Gold price(1) $50/oz 1.7 – 2.0 10.2 – 11.8 8.5 – 9.8 8.5 – 9.8 - Copper price(1) 10% 0.5 – 1.0 2.0 – 3.6 1.5 – 2.6 1.5 – 2.6
Slide 34: 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 35: Investor Relations Highlights
Centerra: Investor Relations Highlights Research Coverage Top Ten (10) Institutional Shareholders Brokerage Firms Rating Target Buy C$7.50 Institution/Firm Sept.-2018 1. BMO Capital Markets 2. BofA Merrill Lynch Neutral C$6.50 1. Van Eck Associates 10.62% 3. Canaccord Genuity Buy C$6.50 2. Blackrock
Slide 36: 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 37: TSX: CG www.centerragold.com
TSX: CG www.centerragold.com
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