Centerra Gold Inc. · TSX:CG
Centerra Gold — Q4 2020 Earnings Presentation
79 slides from Centerra Gold's earnings presentation, Feb 24, 2021
Slide 1: 2020 Fourth Quarter and Year-End Results
Kumtor BUILT FOR SUCCESS Mount Milligan 2020 Fourth Quarter and Year-End Results Conference Call - February 24, 2021 TSX: CG Öksüt 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
Slide 3: 2020 Fourth Quarter and Year-End Results – Scott Perry
Kumtor BUILT FOR SUCCESS Mount Milligan 2020 Fourth Quarter and Year-End Results Scott Perry – President & CEO TSX: CG Öksüt www.centerragold.com
Slide 4: Centerra: Built For Success
Centerra: Built For Success Corporate Highlights Retained Earnings Profile (US$) Exceeded 2020 gold production guidance with gold production of 824koz, 2020 copper production of 82.8Mlbs, 1,800 2,000 at AISC1 of $729 per ounce (AIC1 of $1,059 per ounce) 1,600 Sold our 50% interest in Greenstone Gold
Slide 5: 2020 ESG Operations Q4 Update
2020 ESG Operations Q4 Update Continued focus on safety leadership training/awareness. Maintained and strengthened our “Social Licence to Operate” at all operations with no interruptions for ~90 months. No reportable environmental incidents in Q4. Became a Silver Partner sponsor of International Wom
Slide 6: Corporate Highlights – Operational
Corporate Highlights Operational Highlights Safety – Öksüt achieved 4 million work hours without a lost time injury, all sites maintaining proactive COVID-19 measures Exceeded 2020 Gold Production Guidance, 824,059 oz of Gold Produced, includes 556,136 oz at Kumtor, 161,855 oz at Mount Milligan and
Slide 7: Corporate Highlights – Financial
Corporate Highlights Financial Highlights 2020 Net Earnings of $408.5MM or $1.39 per Share (basic) or Adjusted Net Earnings1 of $461.9MM or $1.57 per Share (basic) 2020 Cash Provided by Operations of $930MM ($3.14 per share), (Kumtor $661MM, Mount Milligan $185MM, Öksüt $146MM) 2020 Free Cash Flow1
Slide 8: Centerra: 2021 Guidance
Centerra: 2021 Guidance Mount 2021 Production Guidance Units Kumtor Öksüt Centerra Milligan(1) Gold Total Gold Payable Production(2) (Koz) 470-510 180-200 90-110 740-820 Copper Total Copper Payable Production(2) (Mlb) - 70-80 - 70-80 2021 All-in Sustaining Unit Costs(4) Units Kumtor Mount Milligan(1
Slide 9: Centerra: 2021-2023 Outlook
Centerra: 2021-2023 Outlook 2020 2021 2022 2023 Units Actual Guidance Outlook Outlook Gold Payable Production (Koz) Kumtor 556 470 - 510 540 - 590 550 - 600 Mount Milligan(1) 162 180 - 200 170 - 190 180 - 210 Öksüt 106 90 - 110 210 - 240 200 - 220 Consolidated Gold Payable Production (Koz) 824 740 -
Slide 10: Kumtor Mine Life Update
Kumtor Mine Life Update Dan Desjardins – VP & COO
Slide 11: Agenda
Agenda Introduction 2020 Performance Key Technical Report Highlights Stewardship of the Kumtor Mine Technical Highlights Reserves Mining Milling Financials Opportunities Kumtor Exploration Upside February 24, 2021 11
Slide 12: Kumtor Gold Mine - Introduction
Kumtor Gold Mine - Introduction • The Kumtor Mine is located in the Kyrgyz Republic, approximately 350 kilometres to the southeast of Bishkek, the capital city and about 60 kilometres to the north of the international boundary with the People’s Republic of China, in the Tien Shan Mountains. • Kumtor
Slide 13: Kumtor: Concession Area and Site Map
Kumtor: Concession Area and Site Map February 24, 2021 13
Slide 14: Kumtor: World Class Gold System
Kumtor: World Class Gold System • The Kumtor deposit is an orogenic gold system confined to structures of the Middle Tien Shan collision zone, which hosts other world-class gold deposits, such as Muruntau and Daugiztau in Uzbekistan and the Bakyrchik deposit in Kazakhstan. • Kumtor has been in opera
Slide 15: Kumtor: 2020 Performance
Kumtor: 2020 Performance 2018 2019 2020 2021E Gold Production (koz) 535 600 556 470-510 All-In Sustaining Costs ($/oz) (1) $694 $598 $741 $950-$1,000 All-In Costs ($/oz) (1) $913 $838 $1,042 $1,365-$1,420 Reserves(2) (Moz) 6.0 Au Grade (g/t) 2.66 Resources M&I(2) (Moz) 2.3 Au Grade (g/t) 2.78 World
Slide 16: Key Technical Report Highlights
Kumtor: Key Technical Report1 Highlights (as of July 1, 2020) Mineral reserves increased by 3.1 M contained ounces to 6.3 M contained ounces (73.3 million tonnes at 2.66 g/t gold). Ore mining and processing extended 5 years to 2031. Investing in 29 haul trucks to expand mining capacity. Life
Slide 17: Kumtor: Mineral Reserves & Resources
Kumtor: Mineral Reserves & Resources1 (Year-over-Year Change) Kumtor Open Pit Tonnes Ounces Kumtor Open Pit Tonnes Ounces Au (g/t) Au (g/t) 2019 Reserves (kt) (koz) 2020 Reserves (kt) (koz) Proven & Probable – Reserves 43,295 2.31 3,214 Proven & Probable – Reserves 70,306 2.66 6,013 Kumtor Open Pit
Slide 18: 2021 Tech Report – Net Cash Flow (@$1,350)
Kumtor: 2021 Tech Report1 – Net Cash Flow (@$1,350) Description Units 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Total Ounce Gold Sales 560 490 590 590 595 595 570 350 360 350 200 377 5,627 ('000) Gold Price $ 1,515 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1
Slide 19: Stewardship of the Kumtor Mine
Stewardship of the Kumtor Mine
Slide 20: Making a Positive Contribution
Kumtor: Making a Positive Contribution Through taxes, duties and mandatory payments, Centerra Gold’s Kumtor operation makes a direct and substantial contribution to the prosperity of the Kyrgyz Republic while helping protect national economic interests. We help support infrastructure, social service
Slide 21: Investing in Employees at Kumtor
Kumtor: Investing in Employees at Kumtor Centerra Gold is the largest private sector employer in the Kyrgyz Republic. As of the Kumtor Technical Report dated July 1, 2020: The majority of employees at our Kumtor operation are Kyrgyz citizens, most of whom come from local communities. Providing long-
Slide 22: Supporting Strategic Community Development
Kumtor: Supporting Strategic Community Development Taking a strategic approach to community development helps to ensure that our beneficial impact extends past, and endures beyond, our operations. Our focus in the Issyk-Kul region is helping foster favourable conditions for entrepreneurship, support
Slide 23: Buying Locally Builds Prosperity
Kumtor: Buying Locally Builds Prosperity Purchasing goods and services locally extends the economic benefits of our activities beyond the mine and helps to increase prosperity at a local, regional and national level. We are committed, whenever possible, to using local suppliers and contractors to me
Slide 24: Committed to Environmental Stewardship
Kumtor: Committed to Environmental Stewardship Our commitment to the environment, and the impact of that commitment, goes far past our operations and benefits the larger Issyk-Kul region. Kumtor is compliant with all environmental regulatory requirements in the Kyrgyz Republic and international stan
Slide 25: Mineral Reserves and Resources
Mineral Reserves and Resources
Slide 26: Kumtor: Mineral Reserves & Resources
Kumtor: Mineral Reserves & Resources1 (Year-over-Year Change) Kumtor Open Pit Tonnes Ounces Kumtor Open Pit Tonnes Ounces Au (g/t) Au (g/t) 2019 Reserves (kt) (koz) 2020 Reserves (kt) (koz) Proven & Probable – Reserves 43,295 2.31 3,214 Proven & Probable – Reserves 70,306 2.66 6,013 Kumtor Open Pit
Slide 27: Kumtor: Mineral Reserves
Kumtor: Mineral Reserves1 (December 31, 2020 vs July 1, 2020) Kumtor Open Pit Tonnes Ounces Kumtor Open Pit Tonnes Ounces Au (g/t) Au (g/t) July 1, 2020 Reserves2 (kt) (koz) December 31, 2020 Reserves1 (kt) (koz) Proven & Probable – Reserves 73,338 2.66 6,268 Proven & Probable – Reserves 70,306 2.66
Slide 28: Plan View of 2020 Resource Pit vs 2019 Resource Pit
Kumtor: Plan View of 2020 Resource Pit vs 2019 Resource Pit Central Pit Southwest Pit Sarytor Pit February 24, 2021 28
Slide 29: 2020 vs 2019 Resource Pits Section View
Kumtor: 2020 vs 2019 Resource Pits Section View February 24, 2021 29
Slide 30: Mining
centerraGoL_pD Mining centerraGoL_LD ~ .¢
Slide 31: Open Pit Design
Kumtor: Open Pit Design Central Pit Central Pit Southwest Pit Sarytor Pit February 24, 2021 31
Slide 32: Mobile Equipment Investment for LOM
Kumtor: Mobile Equipment Investment for LOM1 Equipment Units New Investment Replaced Equipment Total 789 Haul Trucks 71 29 - 100 785 Haul Trucks 30 - (5) 25 Liebherr Shovels 9 - (4) 5 Hitachi Shovels 5 4 - 9 Drills 9 3 (2) 10 Pre-Shear Drill 2 2 (2) 2 Track Dozers 18 5 (7) 16 Graders 8 - (2) 6 Grade
Slide 33: LOM Mining Schedule
Kumtor: LOM1 Mining Schedule Mining Summary Central Pit Mine Schedule Sub Low Grade (0.85 - 1.10 g/t) STK 20 Units LOM 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Tonnes (t) 6,607,431 - 507,465 1,644,922 - 708,904 788,104 1,377,767 - 926,841 - - 653,428 Au g/t (g/t) 0.97 - 0.96 0.97
Slide 34: 2020 YE Central Pit Development
Kumtor: 2020 YE Central Pit Development February 24, 2021 34
Slide 35: 2021 YE Central Pit, SW & Hockey Stick Development
Kumtor: 2021 YE Central Pit, SW & Hockey Stick Development February 24, 2021 35
Slide 36: 2022 YE Central Pit, SW & Hockey Stick Development
Kumtor: 2022 YE Central Pit, SW & Hockey Stick Development February 24, 2021 36
Slide 37: 2023 YE Central Pit, SW & Hockey Stick Development
Kumtor: 2023 YE Central Pit, SW & Hockey Stick Development February 24, 2021 37
Slide 38: 2021-2023 Projected Year End Stockpile Balances
Kumtor: 2021-2023 Projected Year End Stockpile Balances Stockpile Inventory Tonnes Grade Contained Oz EOY 2018 (Actual) 11,308,693 1.725 627,130 EOY 2019 (Actual) 16,310,722 1.827 957,851 EOY 2020 (Actual) 10,692,845 1.417 487,268 EOY 2021 (Tech Report)1 6,777,538 1.013 220,641 EOY 2022 (Tech Report
Slide 39: LOM Dump Plan
Kumtor: LOM1 Dump Plan February 24, 2021 1. Life of mine (LOM) effective date July 1, 2020, see NI 43-101 Technical Report on the Kumtor Mine dated February 24, 2021 and filed on SEDAR. 39
Slide 40: Milling
centerraGoL_pD Milling centerraGoL_LD ~ .¢
Slide 41: New Process Flow – as at October 2021
Kumtor: New Process Flow – as at October 2021 February 24, 2021 41
Slide 42: LOM Mill Statistics
Kumtor: LOM1 Mill Statistics Milling Summary Milling Summary Units LOM 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Days/Period days 4,383 366 365 365 365 366 365 365 365 366 365 365 365 Down Time hr 3,357 401.45 320.00 204.00 320.00 212.00 320.00 204.00 320.00 212.00 320.00 204.00 32
Slide 43: Tower Mill & Leach Tanks Investment
Kumtor: Tower Mill & Leach Tanks Investment 2021 43-1011 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Tower Mill 2,591 9,823 10,032 10,032 10,032 10,032 7,275 7,275 7,275 4,616 6,328 Installation, oz Leach Tanks, oz 6,096 8,128 8,128 8,128 8,128 8,128 8,128 8,128 8,128 8,128 8,128 Overall
Slide 44: Tailings Storage Facility
Kumtor: Tailings Storage Facility1 February 24, 2021 1. See NI 43-101 Technical Report on the Kumtor Mine dated February 24, 2021 with an effective date July 1, 2020 filed on SEDAR. 44
Slide 45: Tailings Dam Raise Plan
Kumtor: Tailings Dam Raise Plan1 Phased dam extension design from elevation 3674.0 to 3682.0 - Crest elevation from 3674.0 m to 3677.5 m - 2015 43-101. - Elevation up to a height of 3682.0 m, - Additional volume of tailings capacity of 22.0 M m³ total accumulation period tails until the end of 2031
Slide 46: Financials
centerraGoL_pD Financials centerraGoL_LD ~ .¢
Slide 47: Key Production & Financial Highlights
Kumtor: Key Production & Financial Highlights1 Production Highlights 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 LOM Mine Ore Mined (Mt) 0.58 2.86 12.63 5.46 4.60 7.43 8.02 7.25 6.81 - - 4.55 60.20 Waste Mined (Mt) 103.09 202.75 180.41 189.80 191.21 187.85 187.26 188.03 185.12 3.20 3
Slide 48: Net Cash Flow (@$1,350)
Kumtor: Net Cash Flow (@$1,350)1 Description Units 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Total Ounce Gold Sales 560 490 590 590 595 595 570 350 360 350 200 377 5,627 ('000) Gold Price $ 1,515 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,364 Gold Sales Rev
Slide 49: LOM Operating Costs
Kumtor: LOM1 Operating Costs By Activity LOM Cost ($M) $/t mined Drilling 175 0.10 Mining Opex Blasting 270 0.16 $1.39/t mined excludes sustaining capex of Loading 260 0.15 Hauling 1,089 0.64 $0.27/t mined, so $1.66/t mined with sustaining Crushing and Conveying 66 0.04 capex; Road and Dump 233 0.
Slide 50: LOM All-in Sustaining Cost
Kumtor: LOM1 All-in Sustaining Cost2 ($'000) Cost Description 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Total Mining 8,591 47,000 120,525 20,315 5,744 58,945 111,835 53,273 244,346 38,425 38,803 66,012 813,815 Milling 69,339 74,316 74,429 75,095 73,937 73,899 73,499 73,813 73,086 7
Slide 51: LOM Capital Expenditures
Kumtor: LOM1 Capital Expenditures ($'000) Capital Category 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Total Mining Capital Sustaining Mine Equipment Replacement 22,558 6,968 20,308 20,390 6,308 5,182 6,972 - - - - - 88,684 Equipment Component Replacement 31,574 32,720 28,645 34,918
Slide 52: Sensitivity Analysis
Kumtor: Sensitivity Analysis1 NPV Sensitivity at 5% Discount Rate $ ‘million 400 800 1,200 1,600 2,000 2,400 2,800 Gold $1,080/oz $1,215/oz $1,485/oz $1,620/oz SOM FX Operating Cost Capital Cost -20% -10% 20% 10% February 24, 2021 1. See NI 43-101 Technical Report on the Kumtor Mine dated February 2
Slide 53: Opportunities – The Golden Sunrise
Kumtor: Opportunities – The Golden Sunrise Process plant metallurgical studies and further recovery improvement Unconstrained pit optimisation with new process plant location Sulphide and oxide mineralisation exploration Waste rock storage alternatives Truck haulage alternatives / Conveyor belt Tail
Slide 54: Exploration Update
Exploration Update Malcolm Stallman – VP Exploration
Slide 55: Exploration 2018 – 2020
Kumtor: Exploration 2018 – 2020 - 2018 - 2019 drilling focused on the Hockey Kumtor Concession Area Petrov Stick Zone and confirmed gold mineralization outside the ultimate open pit - 2020 drilling focused on: Extending Southwest and Sarytor Deposits Lysii Gap resources Evaluating oxide gold min
Slide 56: 2021 Tech Report vs 2015 Tech Report
Kumtor: 2021 Tech Report1 vs 2015 Tech Report Mine Plan Reserves Contained Grade Gold Production Mine Plan Years Production Years (Tech Report) (Koz) (g/t) (Koz) 2015 2015 - 2023 6,126 2.80 2015 - 2026 4,857 Actual 2015 – 2019 2,769 2021 July 2020 - 2031 6,268 2.66 2020 - 2031 5,594 2015-2031 Total1
Slide 57: Exploration Objectives
Kumtor: Exploration Objectives Deposit Model and Exploration Stage SE • Orogenic style, world class deposit confined to Tien-Shan Suture Zone. Mining operations. Brownfield exploration; some targets – greenfield exploration Project Objectives: • Main objectives of exploration drilling are: To exte
Slide 58: Exploration Objectives
Kumtor: Exploration Objectives Sarytor Deposit - additional drilling in 2021 may add new resources, which will require resource updates, and additional infill drilling and permitting. It may be possible to eventually connect the Sarytor and SW deposits. Currently, oxide gold mineralization in the Sa
Slide 59: Updated Model for Gold Mineralization
Kumtor: Updated Model for Gold Mineralization Dispersed gold Downflow of mineralization in oxygenated Sulphide gold Tertiary sediments groundwater mineralization (conceptual (current ore targets; zones, main completely resources and outside of the reserves) ultimate open- pits) Oxide gold mineraliza
Slide 60: Exploration Potential
Kumtor: Exploration Potential N • Expand known sulphide gold mineralization - refinement of continuity of gold sulphide mineralization in less-developed blocks between well-established deposits along the Kumtor Trend • Define oxide gold mineralization resources - determination of overall continuity
Slide 61: Central Deposit – Cross Section Looking NE
Kumtor: Central Deposit – Cross Section Looking NE N Dispersed gold Sulphide gold mineralization mineralization (high grades consistent at depth – UG potential) 3.43 g/t @ 40.2 m 0.19 g/t @ 133 m 5.30 g/t @ 12.8 m 0.13 g/t @ 81 m Oxide gold mineralization potential not tested yet 10.78 g/t @ 6.0 m F
Slide 62: Southwest Deposit – Cross Section -138 Looking NE
Kumtor: Southwest Deposit – Cross Section -138 Looking NE Sulphide gold mineralization (outside ultimate SW open pit) Hope Zone 0.45 g/t @ 39.0 m 10.33 g/t @ 28.6 m Koshuluu Zone 1.57 g/t @ 21.5 m Deep Oxide Zone Dispersed gold 6.50 g/t @ 18.3 m mineralization 2.95 g/t @ 158 m Oxide gold mineralizat
Slide 63: Deep Oxide Zone – Cross Section -142, Looking NE
Kumtor: Deep Oxide Zone – Cross Section -142, Looking NE N Deep Oxide Zone 4.11 g/t @ 222 m February 24, 2021 Boris Kotlyar, a Member with the American Institute of Professional Geologists, is Centerra’s qualified person for the purpose of National Instrument 43-101. 63
Slide 64: Deep Oxide Zone – Cross Section -146, Looking NE
Kumtor: Deep Oxide Zone – Cross Section – 146, Looking NE 1.83 g/t @ 29 m Deep Oxide Zone 3.11 g/t @ 225 m February 24, 2021 Boris Kotlyar, a Member with the American Institute of Professional Geologists, is Centerra’s qualified person for the purpose of National Instrument 43-101. 64
Slide 65: Sarytor Deposit – Cross Section Looking NNE
Kumtor: Sarytor Deposit – Cross Section Looking NNE N Sulphide gold mineralization (under ultimate Sarytor open pit) 2.16 g/t @ 21.7 m Oxide gold 3.24 g/t @ 49.1 m mineralization 2.05 g/t @ 66.4 m February 24, 2021 Boris Kotlyar, a Member with the American Institute of Professional Geologists, is Ce
Slide 66: Northeast Deposit – Section Looking NE
Kumtor: Northeast Deposit – Section Looking NE Oxide and mixed gold mineralization 2.40 g/t @ 21.4 m 1.53 g/t @ 10.3 m Sulphide gold mineralization 0.95 g/t @ 76.0 m (not part of resources) 0.40 g/t @ 27.0 m 1.27 g/t @ 19.0 m 1.35 g/t @ 7.7 m Boris Kotlyar, a Member with the American Institute of Pr
Slide 67: District Exploration Potential
Kumtor: District Exploration Potential February 24, 2021 Boris Kotlyar, a Member with the American Institute of Professional Geologists, is Centerra’s qualified person for the purpose of National Instrument 43-101. 67
Slide 68: Exploration 2018 to 2020 and Beyond
Kumtor: Exploration 2018 to 2020 and Beyond • After restarting exploration in 2018, we Kumtor Concession Area Petrov successfully increased M&I resources by 112%, which is now reflected in the expanded reserve and longer mine life. • In 2020, drilling focused on further expanding sulphide and oxide
Slide 69: Summary – Scott Perry
Kumtor BUILT FOR SUCCESS Mount Milligan 2020 Fourth Quarter and Year-End Results Summary – Scott Perry TSX: CG Öksüt www.centerragold.com
Slide 70: Centerra: 2021-2023 Outlook
Centerra: 2021-2023 Outlook 2020 2021 2022 2023 Units Actual Guidance Outlook Outlook Gold Payable Production (Koz) Kumtor 556 470 - 510 540 - 590 550 - 600 Mount Milligan(1) 162 180 - 200 170 - 190 180 - 210 Öksüt 106 90 - 110 210 - 240 200 - 220 Consolidated Gold Payable Production (Koz) 824 740 -
Slide 71: Q & A and Appendix
centerraGoL_pD Q & A and Appendix centerraGoL_LD ~ .¢
Slide 72: 2020 Resource Estimate Highlights
72 Kumtor: 2020 Resource Estimate Highlights1 Mineralization domains re-interpreted. Stockwork and Saddle, manual interpretation. Final wireframing done in Leapfrog, interpreting domains on sections and snapping to intervals. Total 18 mineralization domains modelled (~0.5 g/t threshold) and
Slide 73: 2024 YE Central Pit & Hockey Stick Development
Kumtor: 2024 YE Central Pit & Hockey Stick Development February 24, 2021 73
Slide 74: 2025 YE Central Pit & Hockey Stick Development
Kumtor: 2025 YE Central Pit & Hockey Stick Development February 24, 2021 74
Slide 75: 2026 YE Central Pit & Sarytor Development
Kumtor: 2026 YE Central Pit & Sarytor Development February 24, 2021 75
Slide 76: 2027 YE Central Pit & Sarytor Development
Kumtor: 2027 YE Central Pit & Sarytor Development February 24, 2021 76
Slide 77: 2028 Central Pit
Kumtor: 2028 Central Pit February 24, 2021 77
Slide 78: 2031 Central Pit
Kumtor: 2031 Central Pit February 24, 2021 78
Slide 79: Built For Success
Kumtor BUILT FOR SUCCESS Mount Milligan TSX: CG Öksüt www.centerragold.com