Centerra Gold Inc. · TSX:CG
Centerra Gold — Investor Presentation (May 2018)
37 slides from Centerra Gold's investor presentation, May 2018
Slide 1: Investor Presentation May 2018
Investor Presentation May 2018 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 Internationally Diversified Gold Producer Mongolia U.S. Australia 2% 2% 1% Turkey 9% Two Cornerstone Lower-Cost Quartile Assets 2017 Gold Production 785koz at AISC1 of $688 per ounce and 53.6M lbs of copper Canada Kyrgyz
Slide 4: 2017 Results
Centerra: 2017 Results 2017: Internally Funded Business (US$MM’s) Liquidity Profile March 31, 2018 (US$MM’s) 800 188 209 700 600 127 98 $3353 500 409 417 400 US$458MM 300 200 2 100 $123 0 1 1 2016 Cash Mt Milligan Kumtor FCF Debt Other 2017 Cash FCF Repayments (Projects, 2 3 Cash Reserves Undrawn Cr
Slide 5: Asset Breakdown
Centerra: Asset Breakdown 2017 Free Cash Flow Consensus Asset NAV Consensus Asset NAV (US$MM’s)(1) (US$MM’s) Mount Milligan Langeloth Mount Milligan $1,001 Royalties 1% Gatsuurt $127 3% 1% Greenstone 5% Kumtor Other 7% Mt. Milligan $916 Kumtor 34% $188 Öksüt Kemess 8% $290 Öksüt Kemess 10% $256 Gree
Slide 6: High-Quality Free Cash Flowing Royalty Portfolio
High-Quality Free Cash Flowing Royalty Portfolio 4 19 4 Producing Total Countries Royalties Royalties Valued World-Class Top-Tier Operating Mining Assets Partners Jurisdictions Hemlo-Williams Canada 0.25% NSR (Barrick Gold) GJ & GJ Northern Block Eagle River 1.0% & 0.5% NSRs 0.5% NSR (Skeena Resourc
Slide 7: 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) 205 223 195-215 Copper Production (Mlbs) 59 54 47-52 All-In Sustaining Costs $509 $505 $806-$888 (US$/oz)(1) Sustaining Capital ($MM)(1) NA $30 $44 Remaining reserve life (years) +20 Gold Copper P&P R
Slide 8: Kumtor: World Class Open Pit Gold Mine
Kumtor: World Class Open Pit Gold Mine 2018E 2016 2017 Guidance Gold Production (koz) 551 563 450-500 All-In Sustaining Costs ($/oz) (1) $640 $698 $733-$815 Sustaining Capital ($MM)(1) $61 $61 $49 Growth Capital ($MM)(1) $15 $18 $14 Projected Asset Life (years) +8 Reserves(2) (Moz) 4.5 Au Grade (g/t
Slide 9: Öksüt: Funded High Margin Gold Production
Öksüt: Funded High Margin Gold Production 2015 Feasibility Highlights Mine Type Open Pit, Heap Leach Avg. LOM Annual Production 110koz Au Avg. LOM AISC(1) (US$/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 10: Öksüt: Construction
Öksüt: Construction Mobilizing Construction Equipment Site Safety Protocol Main Access Road Construction Pre-Shift Safety Meeting Main Access Road Construction Site Road Construction May 2018 10
Slide 11: Kemess: Site Layout – C$1Billion of Infrastructure
Kemess: Site Layout – C$1Billion of Infrastructure Fly-in, Fly-out Work Camp South Open Pit (Tailings Storage Facility) Metallurgical Facility Kemess Underground & East Deposits May 2018 11
Slide 12: Kemess: De-Risked Brownfield Project
Kemess: De-Risked Brownfield Project(1) • Established mining jurisdiction Kwadacha Kemess Project • (Fort Ware) Advanced-stage Kemess Omineca Resource Project Tsay Keh Access Road − EA Approved, IBA in hand, FS complete Forest Service Road • Low-risk brownfield development 0 100 200 Kilometers Dawso
Slide 13: Kemess: Large, Low-Cost Production
Kemess: Large, Low-Cost Production Kemess Underground – 2016 Feasibility Highlights(1) Kemess East– 2017 PEA Highlights(1) Mine Type Underground Block Cave Mine Type Underground Panel Cave Avg. LOM Gold Production (koz) 106 Avg. LOM Gold Production (koz) 80 Avg. LOM By-Product AISC (US$/oz)(2) $244
Slide 14: 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 Panel Cave First Production Copper Ou
Slide 15: Potential Upside Optionality - Molybdenum
Centerra: Potential Upside Optionality - Molybdenum Molybdenum Price Movement Thompson Creek Mine 14.00 ● Located in Idaho, is the world’s fourth largest open-pit primary 13.00 molybdenum mine 12.00 ● Operations began in 1983, using conventional open-pit mining and a on- site 25,500 tpd mill 11.00 ●
Slide 16: Lower-Cost Asset Base
Centerra: Lower-Cost Asset Base • Kemess Underground represents a potential fourth Centerra mine in the bottom quartile of global gold producers • Royalty cash flow provides additional margin enhancement AISC Industry Curve (By-P roduct Basis) 0% 25% 50% 75% 100% $2,500 Centerra Gold (US$799-885/oz
Slide 17: Appendix
Appendix TSX: CG www.centerragold.com
Slide 18: High-Quality Producing and Growth Assets
Centerra: High-Quality Producing and Growth Assets Greenstone Project Mt. Milligan Mine Kumtor Mine (50%) Au, Cu Au Au Canada Kyrgyz Republic Canada Hemlo-Williams (0.25% NSR) Au Canada Eagle River Gatsuurt Project (0.5% NSR) Au Au Mongolia Canada Kemess Underground and East Projects Young-Davidson
Slide 19: Q1 - 2018 Corporate Highlights
Centerra: Q1 - 2018 Corporate Highlights Safety – Kumtor achieved 1 full year & 6 million man-hours without a lost time injury Apr 11, 2018 Closed AuRico Metals Acquisition and Fully Integrated Assets Mount Milligan Mill Operating Both Ball Mill Circuits Averaging 40,000 tpd Started Construc
Slide 20: Q1-2018 Operating Highlights
Q1-2018 Operating Highlights Q1 2018 gold production - Kumtor 100,220 ounces, Mount Milligan 29,544 ounces Q1 2018 copper production - Mount Milligan 6,143,000 pounds Mount Milligan operating both ball mills averaging 40,000 tpd throughput Kumtor achieved 1 full year & 6 million man-hours without a
Slide 21: Q1-2018 Mount Milligan - Update
Q1-2018 Mount Milligan - Update Restarted milling at partial capacity Feb.5, 2018 ramping up to approximately 30,000 tpd; Second ball mill started March 23, 2018, throughput averaging 40,000 tpd; Expect to return to full capacity after spring melt; 2nd half 2018 expect to average 55,000 tpd Go
Slide 22: Mount Milligan: Q1-2018 Exploration
Mount Milligan: Q1-2018 Exploration C. Paul Jago, a Member of the Engineers and Geoscientists British Columbia, is Centerra’s qualified person for the purpose of National May 2018 Instrument 43-101. 22
Slide 23: Q1-2018 Financial Highlights
Q1-2018 Financial Highlights1 Quarter Ended Quarter Ended (in thousands, except ounces, per share amounts, and average realized price2) March 31, 2018 March 31, 2017 Revenue $235,399 $285,342 Total gold ounces sold 132,432 187,914 Total copper pounds sold (000’s) 4,506 13,612 Operating cash flow bef
Slide 24: Q1-2018 Other Financial Highlights
Q1- 2018 Other Financial Highlights Gold Sales of 132,432 ounces / Copper Sales of 4.5 million pounds in Q1, 2018 Consolidated First Quarter 2018 AISC1 of $932 per ounce Q1, 2018 AISC1 of $758 per ounce at Kumtor and $1,554 per ounce at Mount Milligan March 31, 2018 Total Liquidity $458 Million Succ
Slide 25: 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 $244/oz on a by-product basis • Environmental approvals and IBA received • Awaiting receipt of permit application Kemess East (PEA – Ma
Slide 26: Gatsuurt: Gold Development Project
Gatsuurt: Gold Development Project 2017 Feasibility Highlights(1) Mine Type Open Pit The Gatsuurt Project is ~90 km north of Ulaanbaatar Avg. LOM Annual Production 111koz Au Avg. LOM AISC(1) (US$/oz) $870 Reserve Mine Life 10 years LOM Development Capex (US$MM) $245 LOM Sustaining Capital (US$MM) $3
Slide 27: 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 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: Centerra Royalty Portfolio: Cornerstone Royalty Assets
Centerra Royalty Portfolio: Cornerstone Royalty Assets Young-Davidson (1.5% NSR) Fosterville (2.0% NSR) Mine Operator Alamos Gold Mine Operator Kirkland Lake Gold Mine Type Underground Mine Type Underground 2018 Production Guidance 200-210koz Gold 2018 Production Guidance 260-300koz Gold P&P Reserve
Slide 30: Producing Royalties
Centerra: Producing Royalties Young-Davidson (1.5% NSR) Fosterville (2.0% NSR) Mine Operator Alamos Gold Mine Operator Kirkland Lake Gold Mine Type Underground Mine Type Underground 2018 Production Guidance 200-210koz Gold 2018 Production Guidance 260-300koz Gold P&P Reserves 3,467koz @ 2.6 g/t P&P
Slide 31: Non-Producing Royalties
Centerra: Non-Producing Royalties Date Primary Asset Location NSR Rate Operator Notes Acquired(1) Metal Independence Boulevard Mar-17 Gold Yukon 1.00% Adjacent to Goldcorp’s Coffee project Gold Cumobabi Mar-17 Copper Mexico 0.50% Evrim Resources Under option to First Majestic Silver Kirkland Lake 19
Slide 32: 2018 Guidance
Centerra: 2018 Guidance 2018 Production Guidance Units Kumtor Mount Milligan(1) Centerra Gold Total Gold Payable Production(2) (Koz) 450 – 500 195 – 215 645 – 715 Copper Total Copper Payable Production(3) (Mlb) – 47 – 52 47 – 52 2018 All-in Sustaining Unit Costs (5) Kumtor Mount Milligan(1) Centerra
Slide 33: 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 3.7 – 4.3 21.5 – 24.7 17.8 – 20.4 17.8 – 20.4 0-1 Copper price(1) 10% 2.1 – 2.5 7.5 – 8.7 5.4 – 6.2 5.4
Slide 34: 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 35: Investor Relations Highlights
Centerra: Investor Relations Highlights Research Coverage Top Ten (10) Institutional Shareholders Brokerage Firms Rating Target Buy C$10.00 Institution/Firm Q1-2018 1. BMO Capital Markets 2. BofA Merrill Lynch Neutral C$8.75 1. Blackrock 12.03% 3. Canaccord Genuity Hold C$8.00 2. Van Eck Associates
Slide 36: 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 37: TSX: CG www.centerragold.com
TSX: CG www.centerragold.com