Centerra Gold Inc. · TSX:CG
Centerra Gold — Investor Presentation (August 2018)
36 slides from Centerra Gold's investor presentation, August 2018
Slide 1: Investor Presentation August 2018
Investor Presentation August 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 Internationally Diversified Gold Producer Mongolia U.S. 2% 2% Turkey 9% Two Cornerstone Lower-Cost Quartile Assets 2017 Gold Production 785koz at AISC1 of $688 per ounce and 53.6M lbs of copper Canada Kyrgyz 55% Öksüt Con
Slide 4: Q2 2018 Corporate Update
Centerra: Q2 - 2018 Corporate Update 2018 YTD Cash Flow (US$MM’s) Liquidity Profile June 30, 2018 (US$MM’s) 700 600 155 246 $251 500 417 400 35 4 300 107 188 $188 200 $135 100 0 1 1 2 3 3 2017 YE Cash Proceeds from AMI Acquisition Mt Milligan Kumtor Dev Projects, G&A, 2018 Q2 Cash Cash Reserves Revo
Slide 5: Lower-Cost Asset Base
Centerra: Lower-Cost Asset Base • Kemess Underground represents a potential additional Centerra mine in the bottom quartile of global gold producers AISC Industry Curve (By-P roduct Basis) 0% 25% 50% 75% 100% $2,500 Centerra Gold (US$812-903/oz Au) $2,250 $2,000 Kemess Underground (US$244/oz)(1) Kum
Slide 6: Q2 2018 Corporate Highlights
Centerra: Q2 - 2018 Corporate Highlights Safety – Kumtor achieved 1-Year & 6 million man-hours without a lost time injury April 11, 2018 Sold Royalty Portfolio for $155MM (Plus: $45MM Silver Stream on Kemess) Closed Öksüt Credit Facility with an Initial Draw of $15MM Öksüt Project Constructi
Slide 7: Asset Breakdown
Centerra: Asset Breakdown 2017 Free Cash Flow Consensus Asset NAV Consensus Asset NAV (US$MM’s)(1) (US$MM’s) Mount Milligan Mount Milligan Langeloth $1,001 2% Gatsuurt $127 Greenstone 1% 5% Kumtor Other 6% $916 Kumtor Mt. Milligan Öksüt 35% $188 Kemess 9% $290 Kemess Öksüt 10% $256 Greenstone $140 K
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 $834-$929 (US$/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 Main Access Road Main Access Road Construction Site Road Construction Crusher Area Excavation Heap Leach Pad Construction Boundary Fence Construction August 2018 12
Slide 13: Kemess: Site Layout – C$1 Billion of Infrastructure
Kemess: Site Layout – C$1Billion of Infrastructure Fly-in, Fly-out Work Camp South Open Pit (Tailings Storage Facility) Metallurgical Facility Kemess Underground & East Deposits August 2018 13
Slide 14: Kemess: De-Risked Brownfield Project
Kemess: De-Risked Brownfield Project(1) • Established mining jurisdiction Kwadacha Kemess Project • (Fort Ware) Advanced-stage Kemess Omineca Resource Project Tsay Keh Access Road − EA Approved, IBA in hand, FS complete Forest Service Road • Low-risk brownfield development 0 100 200 Kilometers Dawso
Slide 15: Kemess: Large, Low-Cost Production
Kemess: Large, Low-Cost Production Kemess Underground – 2016 Feasibility Highlights(1) Kemess East– 2017 PEA Highlights(1) Mine Type Underground Block Cave Mine Type Underground Panel Cave Avg. LOM Gold Production (koz) 106 Avg. LOM Gold Production (koz) 80 Avg. LOM By-Product AISC (US$/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 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 • Kemess Underground represents a potential additional Centerra mine in the bottom quartile of global gold producers AISC Industry Curve (By-P roduct Basis) 0% 25% 50% 75% 100% $2,500 Centerra Gold (US$812-903/oz Au) $2,250 $2,000 Kemess Underground (US$244/oz)(1) Kum
Slide 19: Appendix
Appendix TSX: CG www.centerragold.com
Slide 20: High-Quality Producing and Growth Assets
Centerra: High-Quality Producing and Growth Assets Greenstone Project Mount Milligan Mine Kumtor Mine (50%) Au, Cu Au Au Canada Kyrgyz Republic Canada Gatsuurt Project Au Mongolia Kemess Underground and East Projects Au, Cu Canada Operations Öksüt Project Development Au Molybdenum Asset Turkey Augus
Slide 21: 2017 Results
Centerra: 2017 Results 2017: Internally Funded Business (US$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 22: Q2-2018 Operating Highlights
Centerra: Q2-2018 Operating Highlights Q2 2018 gold production - Kumtor 83,803 ounces, Mount Milligan 46,380 ounces Q2 2018 copper production - Mount Milligan 16,449,000 pounds Mount Milligan throughput averaged 47,000 tpd (52,000 tonnes per operating day) Lowered gold and copper guidance at Mount M
Slide 23: Mount Milligan: 2Q-2018 Update
Mount Milligan: 2Q-2018 Update Significant Improvement in Maintenance at Mount Milligan, Achieved Target of 80% Planned and 20% Unplanned Operated Mill for 30 Consecutive Days at Greater Than 60,000 tpd Gold and Copper Recoveries Continue to Improve Year-to-date Water Balance Low in Tailing Storage
Slide 24: Mount Milligan: Short-term Water Sources
Mount Milligan: Short-term Water Sources August 2018 24
Slide 25: Mount Milligan: Q2-2018 Exploration
Mount Milligan: Q2-2018 Exploration C. Paul Jago, a Member of the Engineers and Geoscientists British Columbia, is Centerra’s qualified person for the purpose of National August 2018 Instrument 43-101. 25
Slide 26: Q2-2018 Financial Highlights
Centerra: Q2-2018 Financial Highlights1 Quarter Ended Quarter Ended (in thousands, except ounces, per share amounts, and average realized price2) June 30, 2018 June 30, 2017 Revenue $243,315 $279,218 Total gold ounces sold 140,427 188,225 Total copper pounds sold (000’s) 12,668 14,358 Operating cash
Slide 27: Q2-2018 Other Financial Highlights
Centerra: Q2-2018 Other Financial Highlights Gold Sales of 140,427 ounces / Copper Sales of 12.7 million pounds in Q2, 2018 Consolidated Second Quarter 2018 AISC1 of $996 per ounce Q2, 2018 AISC1 of $1,071 per ounce at Kumtor and $700 per ounce at Mount Milligan Increase in Liquidity to $574 Million
Slide 28: 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 $244/oz on a by-product basis • Environmental approvals and IBA received • Received Mines Act Permit • Awaiting normal course permits K
Slide 29: Gatsuurt: Gold Development Project
Gatsuurt: Gold Development Project 2017 Feasibility Highlights(1) Mine Type Open Pit The Gatsuurt Project is ~90 km north of Ulaanbaatar Avg. LOM Annual Production 111koz Au Avg. LOM AISC(1) (US$/oz) $870 Reserve Mine Life 10 years LOM Development Capex (US$MM) $245 LOM Sustaining Capital (US$MM) $3
Slide 30: Greenstone: One of Canada's Largest Undeveloped Open Pit Gold Mines
Greenstone: One of Canada’s Largest Undeveloped Open Pit Gold Mines Cornerstone Canadian Development Project Ontario: Top Tier Mining Jurisdiction 50:50 development partnership with Premier Gold Greenstone Development Project Open pit reserves(1) (100%) 4.7Moz Au @ 1.02 g/t Location: Ontario, Canada
Slide 31: Revised 2018 Guidance
Centerra: Revised 2018 Guidance 2018 Production Guidance Units Kumtor Mount Milligan(1) Centerra Gold Total Gold Payable Production(2) (Koz) 450 – 500 175 – 195 625 – 695 Copper Total Copper Payable Production(3) (Mlb) – 40 – 47 40 – 47 2018 All-in Sustaining Unit Costs (5) Kumtor Mount Milligan(1)
Slide 32: 2018 Guidance Sensitivities
Centerra: 2018 Guidance Sensitivities Impact on Impact on ($ millions) ($ per ounce sold) Change Net Earnings AISC(3) on by-product Costs Revenues Cash flows (after tax) basis Gold price(1) $50/oz 2.7 – 3.2 15.7 – 18.8 13.0 – 15.6 13.0 – 15.6 0-1 Copper price(1) 10% 1.5 – 2.0 5.4 – 7.0 3.9 – 5.0 3.9
Slide 33: 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 34: Investor Relations Highlights
Centerra: Investor Relations Highlights Research Coverage Top Ten (10) Institutional Shareholders Brokerage Firms Rating Target Buy C$10.00 Institution/Firm Q2-2018 1. BMO Capital Markets 2. BofA Merrill Lynch Neutral C$8.45 1. Blackrock 10.74% 3. Canaccord Genuity Hold C$6.75 2. Van Eck Associates
Slide 35: 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 36: TSX: CG www.centerragold.com
TSX: CG www.centerragold.com