Centerra Gold Inc. · TSX:CG
Centerra Gold — Investor Presentation (November 2017)
47 slides from Centerra Gold's investor presentation, November 2017
Slide 1: Investor Presentation November 2017
Investor Presentation November 2017 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 Pro-forma Consensus Asset NAV Breakdown Mongolia U.S. Internationally Diversified Gold Producer Australia 1% 0% 2% Turkey 9% Two Cornerstone Lower-Cost Quartile Assets Gold Production up to 815kozpa gold at AISC1 of $705 to $741 per ounce and ~60M lbs
Slide 4: Q3 2017 Corporate Update
Centerra: Q3 - 2017 Corporate Update 2017 YTD: Internally Funded Business (US$MM’s) Liquidity Profile (US$MM’s)(2) 700 88 172 $50 600 $125 105 500 409 78 400 352 US$802MM $150 300 $352 200 100 $125 0 1 2016 Cash Mt Milligan Kumtor FCF Debt Other Q3 2017 Cash Reserves EBRD Revolver Credit Facility FC
Slide 5: Q3 Full Year Guidance Revision
Centerra: Q3 Full Year Guidance Revision 2017 Mid-Point Gold Production (oz’s) Guidance Mid-Point Highlights 850,000 815,000 795,000 800,000 Gold Production – 3% Downward Revision 755,000 750,000 700,000 All-In Sustaining Costs – Negligible Revision 650,000 Original Guidance Q2 Guidance Q3 Guida
Slide 6: AuRico Metals Transaction Rationale
Centerra: AuRico Metals Transaction1 Rationale Acquiring a de-risked brownfield project in British Columbia and cash flowing royalty portfolio • Enhances Centerra’s high-quality asset base in a world-class jurisdiction − Kemess can be a future cornerstone asset that will further bolster Centerra’s s
Slide 7: Pro-Forma High-Quality Producing and Growth Assets
Pro-Forma High-Quality Producing and Growth Assets Greenstone Project Mt. Milligan Mine Kumtor Mine (50%) Au, Cu Au Au Canada Kyrgyz Republic Canada Hemlo-Williams (0.25% NSR) Au Canada Eagle River Gatsuurt Project (0.5% NSR) Au Au Mongolia Canada Kemess Underground and East Projects Young-Davidson
Slide 8: High-Quality Free Cash Flowing Royalty Portfolio
High-Quality Free Cash Flowing Royalty Portfolio 4 19 4 Producing Total Countries Royalties Royalties Valued World-Class Top-Tier Operating Mining Assets Partners Jurisdictions Hemlo-Williams Canada 0.25% NSR (Barrick Gold) GJ & GJ Northern Block Eagle River 1.0% & 0.5% NSRs 0.5% NSR (Skeena Resourc
Slide 9: Diversified Portfolio with Balanced Geographical Profile
Diversified Portfolio with Balanced Geographical Profile Pro-forma Consensus Asset NAV by Geography(1) Pro-forma P+P Reserves by Geography(2) Mongolia U.S. Mongolia Australia 1% 0% 7% 2% Turkey Turkey 7% 9% Kyrgyz Canada Kyrgyz Canada Republic 55% Republic 57% 33% 29% Pro-forma Consensus Asset NAV b
Slide 10: Lower-Cost-Quartile Asset Base
Centerra: Lower-Cost-Quartile 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-Product Basis) 0% 25% 50% 75% 100% $2,500 Centerra Gold (US$705
Slide 11: Pro-Forma Asset Breakdown
Centerra: Pro-Forma Asset Breakdown Pro-Forma Free Cash Flow Pro-Forma Free Cash Flow by Asset (1) Consensus Asset NAV (US$MM’s)(1) Royalties (US$MM’s) 4% Mount Milligan Mount Milligan $138M $945M Kumtor 43% Kumtor $855M Mt. Milligan 53% Kemess $270M Kumtor Pro-Forma Consensus Asset NAV Öksüt Other
Slide 12: 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 13: Kemess: Site Layout – C$1 Billion of Infrastructure
Kemess: Site Layout – C$1Billion of Infrastructure Fly-in, Fly-out Work Camp South Open Pit (Tailings Storage Facility) Metallurgical Facility Kemess Underground & East Deposits 13
Slide 14: Kemess: Large, Low-Cost Production
Kemess: Large, Low-Cost Production Kemess Underground – 2016 Feasibility Highlights(1) Kemess East– 2017 PEA Highlights(1) Mine Type Underground Block Cave Mine Type Underground Panel Cave Avg. LOM Gold Production (koz) 106 Avg. LOM Gold Production (koz) 80 Avg. LOM By-Product AISC (US$/oz)(2) $244
Slide 15: Significant Leverage to Gold
Centerra: Significant Leverage to Gold Company Gold M&I Resources per US$1,000 Invested (Gold Ounces)(1) 16 16 13 11 11 11 9 7 6 6 6 2 Yamana Pro-Forma Centerra New Gold Detour Kinross IAMGOLD Alamos SEMAFO SSR Mining B2Gold Randgold Centerra Source: Company filings, AuRico Metals filings. (1) Calcu
Slide 16: Kemess: Timeline and Copper Outlook
Kemess: Timeline – And Copper Outlook Kemess Timeline Copper Outlook Deficit 25 Large ~6Mt deficit expected 20 by 2030 Mt 15 10 2015 2018 2021 2024 2027 2030 Source: Wood Mackenzie. Base Probable Projects Primary Demand November 2017 16
Slide 17: Enhanced Project Pipeline
Centerra: Enhanced Project Pipeline Öksüt: High Margin Open Pit Heap Leach Gold Project Funded, late-stage gold development project Near-term high margin gold production Kemess: Low-Cost Brownfield Gold-Copper Project in British Columbia Over C$1 billion of surface infrastructure, EIA and First Nati
Slide 18: Appendices
Appendices TSX: CG www.centerragold.com
Slide 19: AuRico Metals Transaction Summary
Centerra: AuRico Metals Transaction1 Summary Transaction • Total transaction value of C$310 million Summary • Each existing AuRico share outstanding at closing will be exchanged for C$1.80 in cash pursuant to a plan of arrangement Consideration • 38% premium to AuRico’s closing price on November 6,
Slide 20: Attractive Debt Repayment Capacity
Centerra: Attractive Debt Repayment Capacity Net Debt / 2017E EBITDA(1) 2.6x 2.7x 2.4x 0.7x 0.5x 0.4x (0.9x) (0.9x) (0.9x) (1.0x) (1.6x) SEMAFO IAMGOLD Randgold SSR Mining Alamos Pro-Forma Kinross Detour New Gold Yamana B2Gold Centerra Source: Company filings, S&P Capital IQ. (1) Consensus Net Debt
Slide 21: Kemess: De-Risked Brownfield Project
Kemess: De-Risked Brownfield Project(1) • Established mining jurisdiction Kwadacha Kemess Project (Fort Ware) Kemess • Advanced-stage Project Tsay Keh Omineca Resource Access Road − EA Approved, IBA in hand, FS complete Forest Service Road 0 100 200 • Low-risk brownfield development Kilometers Dawso
Slide 22: Kemess: Value Creation Opportunities
Kemess: Value Creation Opportunities • Optimization opportunities through the integration of KUG and KE − Economies of scale in ore processing, G&A, and site services − Optimize tailings management − Optimize mining and development of KUG and KE to access highest grade areas of both deposits during
Slide 23: Kemess: Reserves & Resources
Kemess: Reserves & Resources Kemess Underground Quantity Grade Contained Metal Classification (t) Gold (g/t) Copper (%) Silver (g/t) Gold (koz) Copper (klbs) Silver (koz) Proven and Probable Proven - - - - - - - Probable 107,381 0.54 0.27 1.99 1,868 629,595 6,878 Total P&P 107,381 0.54 0.27 1.99 1,8
Slide 24: Royalty Portfolio: Cornerstone Royalty Assets
Royalty Portfolio: Cornerstone Royalty Assets Young-Davidson (1.5% NSR) Fosterville (2.0% NSR) Mine Operator Alamos Gold Mine Operator Kirkland Lake Gold Mine Type Underground Mine Type Underground 2017 Production Guidance 200-210koz Gold 2017 Production Guidance 250-260koz Gold P&P Reserves 3,687ko
Slide 25: Producing Royalties
Producing Royalties Young-Davidson (1.5% NSR) Fosterville (2.0% NSR) Mine Operator Alamos Gold Mine Operator Kirkland Lake Gold Mine Type Underground Mine Type Underground 2017 Production Guidance 200-210koz Gold 2017 Production Guidance 250-260koz Gold P&P Reserves 3,687koz @ 2.7 g/t P&P Reserves 1
Slide 26: Non-Producing Royalties
Non-Producing Royalties Date Primary Asset Location NSR Rate Operator Notes Acquired(1) Metal Independence Boulevard Mar-17 Gold Yukon 1.00% Adjacent to Goldcorp’s Coffee project Gold Cumobabi Mar-17 Copper Mexico 0.50% Evrim Resources Under option to First Majestic Silver Kirkland Lake 19 near-mine
Slide 27: Mount Milligan: Long Life, Low Cost Gold Copper Mine
Mount Milligan: Long Life, Low Cost Gold Copper Mine 2017E 2016 Guidance Gold Production (koz) 205 235-255 Copper Production (Mlbs) 59 55-65 All-In Sustaining Costs (US$/oz)(1) $509 $483-$523 Sustaining Capital ($MM)(1) NA $26 Remaining reserve life (years) +20 Gold Copper P&P Reserves(2) 5.8Moz 2,0
Slide 28: Mount Milligan: Exploration Update
Mount Milligan: Exploration Update Q3 Drill hole Section; looking North within Ultimate Pit Boundary Mount Milligan Q3 Drill hole Plan Map Q3 2017 Exploration Update This information should be read together with our news release of October 31, 2017. C. Paul Jago, a Member of the Engineers and Geosci
Slide 29: Mount Milligan: Resource Expansion Potential
Mount Milligan: Resource Expansion Potential C. Paul Jago, a Member of the Engineers and Geoscientists British Columbia, is Centerra’s qualified person for the purpose of National Instrument 43-101. November 2017 29
Slide 30: Mount Milligan: Exploration Targets
Mount Milligan: Exploration Targets November 2017 30
Slide 31: Kumtor: World Class Open Pit Gold Mine
Kumtor: World Class Open Pit Gold Mine 2017E 2015 2016 Guidance Gold Production (koz) 521 551 540-560 Adjusted Operating Costs ($/oz) (1) $326 $342 $320-$331 All-In Sustaining Costs ($/oz) (1) $758 $640 $737-$764 Sustaining Capital ($MM)(1) $51 $61 $68 Growth Capital ($MM)(1) $14 $15 $28 Projected A
Slide 32: Öksüt: Funded High Margin Gold Production
Öksüt: Funded High Margin Gold Production 2015 Feasibility Highlights Mine Type Open Pit, Heap Leach Avg. LOM Annual Production 110koz Au Avg. LOM AISC(1) (US$/oz) $490 Reserve Mine Life 8 years Development Capex (US$MM) $221 P&P Reserves(2)(Moz) 1.2 Au grade (g/t) 1.40 Öksüt Gold Project Life of Mi
Slide 33: Öksüt: Powerline Construction Complete
Öksüt: Powerline Construction Complete November 2017 33
Slide 34: Gatsuurt: Gold Development Project
Gatsuurt: Gold Development Project 2017 Feasibility Highlights(1) Mine Type Open Pit The Gatsuurt Project is ~90 km north of Ulaanbaatar Avg. LOM Annual Production 111koz Au Avg. LOM AISC(1) (US$/oz) $870 Reserve Mine Life 10 years LOM Development Capex (US$MM) $245 LOM Sustaining Capital (US$MM) $3
Slide 35: 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 36: 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 37: Potential Upside Optionality - Molybdenum
Centerra: Potential Upside Optionality - Molybdenum Molybdenum business Thompson Creek Mine Well-established molybdenum business ● Located in Idaho, is the world’s fourth largest open-pit primary molybdenum mine Consists of the Langeloth Metallurgical Facility and two mines: Thompson Creek Mine and
Slide 38: Q3 2017 Corporate Update
Centerra: Q3 - 2017 Corporate Update Safety – Continue to roll out “Work Safe : Home Safe” Program Across the Company Q3 2017 Net Loss $0.8MM, includes $60MM one-time charge and $6.9MM gain Q3 2017 Adjusted Earnings1 $52.3MM or $0.18 Per Share Comprehensive Settlement Agreement Signed: September
Slide 39: Q3 2017 Operating Highlights
Centerra: Q3 – 2017 Operating Highlights Q3 2017 gold production - Kumtor 138,561 ounces, Mount Milligan 61,640 ounces1 Q3 2017 copper production - Mount Milligan 13,677,000 pounds1 Favourably revised guidance at Kumtor, increased gold production 540,000 – 560,000 oz, and lowered all-in sustaining c
Slide 40: Q3 2017 Financial Highlights
Centerra: Q3 – 2017 Financial Highlights1 Quarter Ended Quarter Ended September 30, September 30, (in thousands, except ounces, per share amounts, and average realized price3) 2017 20162 Revenue $276,237 $218,745 Total gold ounces sold 174,099 164,847 Total copper pounds sold (000’s) 18,644 - Operat
Slide 41: 2017 Revised Guidance – Q3
Centerra: 2017 Revised Guidance – Q3 2017 All-in Sustaining 2017 Gold Production 2017 Copper Production Costs on a By-product basis1 (ounces) (millions pounds) (per ounce sold) Kumtor Mine 540,000 – 560,000 - $737 – $764 Mount Milligan 235,000 – 255,000 55 – 65 $483 – $523 Centerra 775,000 – 815,000
Slide 42: 2017 Guidance Sensitivities
Centerra: 2017 Guidance Sensitivities Impact on Impact on ($ millions) ($ per ounce sold) Change Costs Revenues Cash flows Net Earnings AISC(2) on by- (after tax) product basis Gold Price $50/oz 1.3 – 1.6 8.9 – 10.5 7.6 – 8.9 7.6 – 8.9 - Copper Price(3) 10% 0.4 0.1 – 1.6 0.1 – 1.2 0.1 – 1.2 0.1 – 1.
Slide 43: Mineral Reserves - Proven & Probable
Centerra: Mineral Reserves - Proven & Probable1 Proven and Probable Gold Mineral Reserves Increase to 16 million ounces Proven and Probable Copper Mineral Reserves are 2,049 million pounds Copper Mineral Reserves Proven Probable Total Proven and Probable Tonnes Grade Contained Tonnes Grade Contained
Slide 44: Investor Relations Highlights
Centerra: Investor Relations Highlights Research Coverage Top Ten (10) Institutional Shareholders Brokerage Firms Rating Target Institution/Firm Q3-2017 1. BMO Capital Markets Market Perform C$10.50 2. BofA Merrill Lynch Neutral C$9.25 1. Blackrock 13.10% 3. Canaccord Genuity Hold C$8.50 2. Van Eck
Slide 45: Senior Management
Centerra: Senior Management Industry Background Experience • Appointed Chief Executive Officer in November, 2015 SCOTT PERRY 20 years Chief Executive Officer • Former Chief Executive Officer at AuRico Gold FRANK HERBERT 25 years • Appointed President in November, 2015 President • Joined Centerra in
Slide 46: 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 47: TSX: CG www.centerragold.com
TSX: CG www.centerragold.com
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