Centerra Gold Inc. · TSX:CG
Centerra Gold — Denver Gold Forum 2004
20 slides from Centerra Gold's conference presentation, Sep 27, 2004
Slide 1: Denver Gold Forum / Forward-Looking Statements
Denver Gold Forum September 27, 2004 Forward-Looking Statements Statements contained in this presentation 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 to dif
Slide 2: Centerra Gold: Pure Play Gold Company
Centerra Gold Largest Western-based Gold Producer In Central Asia 5th Largest In North America June 30 IPO 22 Pure Play Gold Company Exceptional Producing Assets Solid Cash Flows & Earnings Debt-free Balance Sheet Proven Management Unhedged Growth Strategy Attractive Expansion Prospects 33
Slide 3: Operating Portfolio
Operating Portfolio Ownership KUMTOR BOROO 100% 95% 44 Operating Portfolio Ownership Produce 880,000 oz Gold (Share) Total Cash Cost $190 oz Deliver > $500 M Cash Flow @ $400 oz 55
Slide 4: Expansion Portfolio and Growth Strategy
Expansion Portfolio Ownership REN GATSUURT 62% 100% 66 Growth Strategy Unlock Existing Long-Term Potential Acquire, Develop & Operate New Properties 77
Slide 5: Ownership of Centerra / Partnerships
Ownership of Centerra Cameco 53% Kyrgyzaltyn 16% 88 Partnerships RUSSIA Irkutsk KAZAKHSTAN MONGOLIA Boroo ULAANBAATAR Kumtor Bishkek KYRGYZ REPUBLIC Beijing CHINA 200 0 200 400 kilometres 99
Slide 6: Partnerships: Uninterrupted Production
Partnerships Members of WTO Pro-mining Governments Stable Business Climate 10 10 Uninterrupted Production RUSSIA MONGOLIA CHINA Middle East KYRGYZ INDIA REPUBLIC 250km 0 500km 11 11
Slide 7: Positioned For Growth: Proven Acquisition Capability
Positioned For Growth 12 12 Proven Acquisition Capability KUMTOR BOROO High Return Investments 13 13
Slide 8: Focus on Central Asia
Focus on Central Asia Available Undeveloped Gold Eastern Europe 6% 2% Other Australia 4% Central Asia Africa 9% & FSU 40% North America 12% South & Central America 27% 14 14 Operations Kumtor Bishkek ul Kara Kul Talas Balykchy Lake Issyk-K Kumtor Barskaun Kara-Say KYRGYZ REPUBLIC Osh Suluktu CHINA 2
Slide 9: Operations: Kumtor
Operations Kumtor Total Production to YE 2003 4.4 M oz at $178/oz cost 2004E Production 655,000 oz at $200/oz cost Unit Mining Costs Reduced by 50% Proven & Probable Reserves 30.4 M t at 3.3 g/t (3.3 M oz total) 16 16 Operations Reserve Sensitivity 5.0 M oz $450 3.3 M oz $325 Reserves 17 17
Slide 10: Operations: Boroo
Operations Boroo Boroo Trans- Trans-Mongolian Trans- Trans-Manchurian Highways Rail CHINA 200 0 200 400 kilometres Trans- Trans-China 18 18 Operations Boroo Production Began March 2004 Exceeded Targets by 40% 2004E Production 225,000 oz at $146/oz cost Proven & Probable Reserves 10.2 M t at 3.5 g/t
Slide 11: Financial Review
Financial Review 100% of Kumtor, 95% of Boroo Hedge Remnant of < 4% of Reserves Removal of All Third-Party Debt $85 Million+ In Cash 20 20 Financial Review Q2 Results Production, Revenues Tripled EPS of $0.10 Average Realized Price of $360/oz Total Cash Cost of $164/oz 21 21
Slide 12: Financial Review: Net Mine Cash Flows
Financial Review Net Mine Cash Flows* $MM $900 $500/oz Au $800 $400/oz Au $700 $300/oz Au $600 $500 $400 $300 $200 $100 $0 2004 2005 2006 2007 2008 2009 *Projected Cumulative Kumtor & Boroo Net Mine Cash Flows Attributable To Centerra 22 22 Financial Review 2004e Cash Margin (per oz.) Average Spot P
Slide 13: Financial Review: 2003 Gold Mining Cost Curve
Financial Review 2003 Gold Mining Cost Curve $/oz 450 400 Centerra Total Cash Cost 350 300 250 Industry Avg. Cash Cost $216 Placer Dome 200 Cambior Newmont Kinross 150 Barrick 100 50 0 5 10 15 20 25 30 35 40 45 Cumulative Production (M oz) Source: Company Reports Publicly Listed Primary Gold Produce
Slide 14: Exploration: Kumtor
Exploration Kumtor Longitudinal Section ULTIMATE PIT @ $325/oz ACTUAL PIT (December 31, 2003) $450/oz PIT SHELL Northend Target Drilling Drilling Below Pit 26 26 Exploration Kumtor - 7 Targets Bedrock Outcrop Petrov Sand and Gravel Glacier Northeast Structural Zone KumtorMill Target Area Kumtor Pit
Slide 15: Exploration: Boroo
Exploration Boroo PIT PIT 22 PIT PIT 33 Boroo MONGOLIA Boroo Mill PIT PIT 55 28 28 Exploration Boroo Massive land position – BOROO 314,000 hectares MINE Gatsuurt Expanding Deposit 29 29
Slide 16: Exploration: Gatsuurt
Exploration Gatsuurt Legend GT-54 GT-103 > 1 g/t Au Shell High Grade >5 g/t Au GT-48 GT-35 GT-85 Oxide Transition Fresh 30 30 Exploration 2004 Budget of $2.6 M BOROO MINE Gatsuurt Gatsuurt Deposit Deposit ARGAL ULAAN BULAG 31 31
Slide 17: Exploration Target Over Next 12-24 Months
Exploration Target Additional Reserves KUMTOR BOROO & GATSUURT 1-1.5 1 Million Ounces Million Ounces Over Next 12-24 Months 32 32 Exploration REN - Successful Program Elko Reno Discovery Hole RU- RU-24c Las REN Vegas Property Meikle (B) Capstone JB Zone (8.0 M oz) Betze- Betze-Post (B) REN Pit (35.0
Slide 18: Exploration: REN JV with Barrick Gold
Exploration REN – JV w/Barrick Gold Roaster Complex Meikle Shaft Rodeo Shaft REN Property 34 34 Exploration REN Deep, high-grade gold mineralization discovered in 2000 by centerra 1.9 M tonnes at 14.8 g/t inferred resource estimate (july, 2003) 900,000 oz in total 35 35
Slide 19: Exploration: REN, Solid Track Record
Exploration REN JB Zone Resource Area 51- 51-W3 44- 44-W1 Discovery Hole RU- RU-24c 61M Dik eS Capstone wa JB Zone 54- 54-W1 rm REN Pit 65C Bootstrap 57- 57-W1 REN Fault Banshee Tara Target of 3-4 Million Oz + 8 M oz 63 63- 63-W2 Meikle METERS100 0 200 Newmont Barrick E. Griffin 36 36 Solid Track Re
Slide 20: Investor Highlights
Investor Highlights Strong, Debt-free Balance Sheet Solid Cash Flows & Earnings Proven Management Aggressive Acquisition Strategy Strong Organic Growth Prospects 38 38