Centerra Gold Inc. · TSX:CG
Centerra Gold — Q3 2017 Earnings Presentation
25 slides from Centerra Gold's earnings presentation, Nov 1, 2017
Slide 1: Q3 2017 Results
Q3 2017 Results Conference Call – November 1, 2017 TSX: CG www.centerragold.com
Slide 2: Senior Management Participants
Senior Management Participants SCOTT PERRY Chief Executive Officer FRANK HERBERT President GORDON REID Chief Operating Officer DARREN MILLMAN Chief Financial Officer 2
Slide 3: 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 4: Q3 2017 Results – Scott Perry, CEO
Q3 2017 Results – November 1, 2017 Scott Perry – CEO TSX: CG www.centerragold.com
Slide 5: Q3 2017 Corporate Update
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 $0.18 Per Share Strong Q3 Gold Production of 200,201 Ounces and Copper Produ
Slide 6: Q3 2017 Corporate Update: Liquidity and Cash Profile
Centerra: Q3 - 2017 Corporate Update 2017 YTD: Internally Funded Business (US$MM’s) Liquidity Profile (US$MM’s) 700 (as of September 30, 2017) 88 172 600 $50 105 500 409 78 352 Cash 400 $125 $401MM 300 $352 US$677MM 200 100 $150 0 2016 Cash Mt Milligan Kumtor FCF Debt Other Q3 2017 FCF Repayments (P
Slide 7: Q3 Full Year Guidance Revision
Centerra: Q3 Full Year Guidance Revision 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 Guidance 2
Slide 8: Centerra: Lower-Cost-Quartile Asset Base
Centerra: Lower-Cost- Quartile 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$705-741/oz Au) $2,000 Mount Milligan Kumtor (US$483-52
Slide 9: Q3 2017 Operating Results – Gordon Reid, COO
Q3 2017 Operating Results – Nov. 1, 2017 Gordon Reid – COO TSX: CG www.centerragold.com
Slide 10: Q3 Operating Highlights
Q3 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 costs on a by-prod
Slide 11: Mount Milligan - Update
Mount Milligan - Update September mill throughput impacted by lower availability of pebble crusher and other supporting or auxiliary equipment, including premature failure of SAG discharge liners and scheduled 4.5 days planned maintenance of SAG mill Gold and copper recoveries 3% better than plan, G
Slide 12: 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 Geosc
Slide 13: Mount Milligan Exploration Targets
Mount Milligan Exploration Targets 13
Slide 14: Q3 2017 Financial Results – Darren Millman, CFO
Q3 2017 Financial Results – Nov. 1, 2017 Darren Millman – CFO TSX: CG www.centerragold.com
Slide 15: Financial Highlights
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 - Operating cash flow before
Slide 16: Other Financial Highlights
Other Financial Highlights Increased MTM revolving credit facility to $125 Million from $75 Million - New revolving facility required the Company to enter into 2-year strategic hedging program for Mount Milligan un-streamed gold and copper production, heavily weighted to zero-cost collars for price
Slide 17: Other Financial Highlights: Debt Reduction
Other Financial Highlights Two High Cash Generating Mines - YTD $195.2 Million cash provided from mine operating activities before changes in working capital1 and after capital expenditures (including $102.4 million from Kumtor and $92.8 million from Mount Milligan) Debt repayments YTD of $172 Milli
Slide 18: Q3 2017 Results – Summary, Scott Perry, CEO
Q3 2017 Results – November 1, 2017 Summary – Scott Perry, CEO TSX: CG www.centerragold.com
Slide 19: Centerra: Built For Success
Centerra: Built For Success Corporate Highlights Consensus Asset NAV Breakdown US 0% Internationally Diversified Gold Producer Kyrgyzstan 33% Two Cornerstone Lower-Cost Quartile Assets Canada 46% Producing up to 815kozpa gold at AISC1 of $705 to $741 per ounce and ~60M lbs of copper Turkey Mongolia
Slide 20: Centerra: Lower-Cost-Quartile Asset Base
Centerra: Lower-Cost- Quartile 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$705-741/oz Au) $2,000 Mount Milligan Kumtor (US$483-52
Slide 21: Question and Answer Session & Appendix
Q3 2017 Results – November 1, 2017 Question and Answer Session & Appendix TSX: CG www.centerragold.com
Slide 22: Centerra: 2017 Revised Guidance
Centerra: 2017 Revised 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 540,000 – 560,000 - $737 – $764 Mount Milligan 235,000 – 255,000 55 – 65 $483 – $523 Centerra 775,000 – 815,000 55 –
Slide 23: 2017 Guidance: Sensitivities
2017 Guidance: Sensitivities Impact on Impact on ($ 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 – 1.9 Diesel
Slide 24: Mineral Reserves: Proven & Probable Dec. 31, 2016
Mineral Reserves: Proven & Probable Dec.31, 2016 Proven and Probable Gold Mineral Reserves Increased 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 Contain
Slide 25: TSX: CG www.centerragold.com
TSX: CG www.centerragold.com