Centerra Gold Inc. · TSX:CG
Centerra Gold — Investor Presentation (June 2017)
31 slides from Centerra Gold's investor presentation, June 2017
Slide 1: Investor Presentation June 2017
Investor Presentation June 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 Consensus Asset NAV Breakdown US Internationally Diversified Gold Producer 0% Kyrgyzstan 33% Closed Thompson Creek Acquisition Canada 46% Up to 795kozpa gold at AISC1 of $743 to $824 per ounce and 60M lbs of copper Turkey Significant operational cash
Slide 4: Centerra: Corporate Update
Centerra: Corporate Update 2016: Internally Funded Business (US$) June 2017 Balance Sheet (US$) 2 900 74 318 (as of March 31, 2017) 8 800 237 Unrestricted Cash 700 $81MM US$ Millions 600 111 542 Debt 500 23 $438MM 409 400 Restricted Cash $277MM 300 200 1 2015 Cash Kumtor Mt Milligan EBRD debt TCM Ot
Slide 5: Robust Financial Margins in all Cycles
Centerra: Robust Financial Margins in all Cycles Cash Reserves1 Profile (US$) 2015 Free Cash Flow Profile (US$) 1,000 2,000 800 1,600 Gold Price (US$/oz) US$ Millions 600 1,200 Operating Cash Flows Cash Flows 400 800 Invested $334 MM $244 MM 200 400 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2
Slide 6: Diversified Portfolio with Balanced Geopolitical Profile
Diversified Portfolio with Balanced Geopolitical Profile Asset NAV breakdown Au reserves & resources Consensus Asset NAV by geography P+P reserves by geography US 0% Kyrgyz Republic Kyrgyzstan 32% 33% Canada Canada 46% 52% Turkey Turkey 7% 11% Mongolia Mongolia 10% 10% Consensus Asset NAV by stage M
Slide 7: Re-Rating Potential Continues
Centerra: Re-Rating Potential Continues Price / NAV(1) Centerra vs Intermediate Gold Peers P/NAV (5%) at Spot Median P/NAV (5%) at Spot 1.44x 1.19x 1.13x 1.03x Median: 0.97x 0.95x 0.88x 0.85x 0.81x 0.74x 0.74x 0.66x New Gold SEMAFO Kinross Gold Standard Alamos Gold IAMGOLD Acacia B2Gold Detour Gold
Slide 8: Operational Excellence
Centerra: Operational Excellence 2016 GUIDANCE vs ACTUAL: GROWING PRODUCTION AND DECLINING COSTS Production increase: up to 7%; Costs decline: up to 26%; 2016 Gold Production exceeds mid-point of revised guidance, AISC lower than mid-point of revised guidance 2016 Kumtor Guidance Highlights Incr
Slide 9: Lower Cost Asset Base
Centerra: Lower Cost Asset Base • Based on industry-wide all-in sustaining costs, Centerra ranks in the bottom quartile of global gold producers AISC Industry Curve (By-Product Basis) 0% 25% 50% 75% 100% $2,500 Centerra Gold $2,250 (US$743-824/oz Au) $2,000 Mount Milligan Kumtor (US$457-508/oz) Kumt
Slide 10: Mount Milligan: Long Life, Low Cost Gold Copper Mine
Mount Milligan: Long Life, Low Cost Gold Copper Mine 2017E 2016 Guidance Gold Production (koz) 205 260-290 Copper Production (MMlbs) 59 55-65 All-In Sustaining Costs (US$/oz)(1) $509 $457-$508 Sustaining Capital ($MM)(1) NA $26 Remaining reserve life (years) +20 Gold Copper P&P Reserves(2) 5.8Moz 2,
Slide 11: Kumtor: World Class Open Pit Gold Mine
Kumtor: World Class Open Pit Gold Mine 2015 2016 2017E Gold Production (koz) 521 551 455-505 Adjusted Operating Costs ($/oz) (1) $326 $342 $359-$397 All-In Sustaining Costs ($/oz) (1) $758 $640 $836-$925 Sustaining Capital ($MM)(1) $51 $61 $68 Growth Capital ($MM)(1) $14 $15 $28 Projected Asset Life
Slide 12: Öksüt: Funded High Margin Gold Production
Öksüt: Funded High Margin Gold Production 2015 Feasibility Highlights Mine Type Open Pit, Heap Leach Avg. LOM Annual Production 110koz Au Avg. LOM AISC(1) (US$/oz) $490 Reserve Mine Life 8 years Development Capex (US$MM) $221 P&P Reserves(2)(Moz) 1.2 Au grade (g/t) 1.40 Öksüt Gold Project Life of Mi
Slide 13: Öksüt: Powerline Construction
Öksüt: Powerline Construction June 2017 13
Slide 14: Gatsuurt: Gold Development Project
Gatsuurt: Gold Development Project Highlights Boroo mill on care & maintenance awaiting Gatsuurt approval The Gatsuurt Project is ~90 km north of Ulaanbaatar Gatsuurt declared strategic January 2015 3% royalty (versus 34% ownership) approved by government Investment development agreement negotiation
Slide 15: Greenstone: One of Canada's Largest Undeveloped Open Pit Gold Mines
Greenstone: One of Canada’s Largest Undeveloped Open Pit Gold Mines Cornerstone Canadian Development Project Ontario: Top Tier Mining Jurisdiction 50:50 development partnership with Premier Gold Open pit reserves(1) (100%) 4.7Moz Au @ 1.02 g/t Historic gold production of 4.12M oz (~1934-1970) Large
Slide 16: Potential Upside Optionality: Molybdenum
Potential Upside Optionality: Molybdenum Molybdenum business Thompson Creek Mine Well-established molybdenum business ● Located in Idaho, is the world’s fourth largest open-pit primary molybdenum mine Consists of the Langeloth Metallurgical Facility and two mines: Thompson Creek Mine and Endako Mine
Slide 17: Strong Low-cost Operating Platform
Centerra: Strong Low-cost Operating Platform 2017 Gold production guidance (Koz)(1) 2017 All-in sustaining costs (US$/oz)(1) 2,600 1,200 1,075 1,140 1,040 955 965 975 940 900 910 845 860 815 875 865 785 755 575 570 415 405 400 383 287 225 Kinross Yamana Acacia IAMGOLD Centerra Detour B2Gold Alamos N
Slide 18: Built For Success
Centerra: Built For Success Kumtor: World Class Open Pit Gold Mine Cornerstone asset underpinning the Company’s growing production portfolio Producing Long life, low cost asset generating significant positive cash flow Mount Milligan: Long Life, Low Cost Open Pit Gold-Copper Mine in British Columbia
Slide 19: Appendices
Appendices TSX: CG www.centerragold.com
Slide 20: Centerra Q1 2017
Centerra Q1 2017 Corporate Update Safety – Continue to roll out “Work Safe : Home Safe” Program Across the Company Achieved Q1 2017 Net Earnings of $57 Million or $0.20 Cents Per Share, (basic) Strong Gold Production of 172,644 Ounces and Copper Production of 12.6 million pounds Centerra’s Q
Slide 21: Centerra Q1 - 2017 Corporate Update
Centerra Q1 - 2017 Corporate Update Q1 - 2017: June 2017 Internally Funded Business (US$) Balance Sheet (US$) 550 32 46 (as of March 31, 2017) 102 69 Unrestricted 500 Cash $81MM 450 25 409 13 US$ Millions 400 32 358 Debt 350 $438MM 300 Restricted Cash $277MM 250 200 1 2016 Cash Kumtor Mt Milligan Wo
Slide 22: Q1 2017 - Operating Highlights
Centerra: Q1 2017 - Operating Highlights Q1 2017 gold production - Kumtor 127,400 ounces, Mount Milligan 45,244 ounces1 Q1 2017 copper production - Mount Milligan 12,595,000 pounds1 Kumtor received the necessary permits to raise its tailings dam and the MAD approval for discharging treated effluent
Slide 23: Q1 2017 - Financial Highlights
Centerra: Q1 2017 - Financial Highlights1 Quarter Ended Quarter Ended (in thousands, except ounces, per share amounts, and average realized price4) March 31, 2017 March 31, 20162 Revenue(3) $220,267 $73,221 Total gold ounces sold(3) 187,914 61,744 Total copper pounds sold (000’s) 13,612 - Operating
Slide 24: Other Financial Highlights Q1 2017
Centerra: Other Financial Highlights Q1 2017 Debt repayments of US$37.5 Million, outstanding debt US$437.5 Million at March 31, 2017 Implemented a balanced copper hedging program Executed 19,000 gold ounces zero cost collar hedges for Mount Milligan gold production On Track to Achieve 2017 Productio
Slide 25: 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 26: 2017 Guidance
Centerra: 2017 Guidance 2017 All-in Sustaining 2017 Gold Production 2017 Copper Production Costs on a By-product basis1 (ounces) (millions pounds) (per ounce sold) Kumtor Mine 455,000 – 505,000 - $836 – $925 Mount Milligan 260,000 – 290,000 55 – 65 $457 – $508 Centerra 715,000 – 795,000 55 – 65 $743
Slide 27: Centerra 2017 Guidance: Sensitivities
Centerra 2017 Guidance: Sensitivities Impact on Impact on ($ millions) ($ per ounce sold) Change Costs Revenues Cash flows Net Earnings AISC(2) on by- (after tax) product basis Gold Price $50/oz 2.6 - 3.0 24.2 – 27.7 24.2 – 27.7 21.6 – 24.5 0.3 Copper Price(3) 10% 0.1 3.9 – 5.4 3.7 – 5.2 3.7 – 5.2 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: 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 30: 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 31: TSX: CG www.centerragold.com
TSX: CG www.centerragold.com