Centerra Gold Inc. · TSX:CG
Centerra Gold — Investor Presentation (April 2021)
48 slides from Centerra Gold's investor presentation, April 2021
Slide 1: Built for Success: Investor Presentation April 2021
Kumtor BUILT FOR SUCCESS Mount Milligan Investor Presentation April 2021 TSX: CG NYSE: CGAU 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: 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 4: 2020 ESG Update
Centerra: 2020 ESG 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 2020. Became a Silver Partner sponsor of International Wo
Slide 5: Committed to Responsible Gold Mining
Centerra: Committed to Responsible Gold Mining • Centerra is implementing the World Gold Council’s Responsible Gold Mining Principles (RGMP) across our operating sites. • RGMPs were designed to provide confidence to our investors and supply chain participants that our gold has been produced responsi
Slide 6: Corporate Highlights
Centerra: 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 Mil
Slide 7: Operational Results vs Guidance 2013-2020
Centerra: Operational Results vs Guidance 2013-2020 Centerra has a strong track record of beating gold production guidance Operating Statistics vs. Guidance (mid-point) (koz Au) 1 (1) 2016 statistics and guidance excludes Mount Milligan (transaction closed in October 2016). April 2021 7
Slide 8: Corporate Highlights: Financial Highlights
Centerra: 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 $146MM) 2020 Free C
Slide 9: Superior Cash Flow
Centerra: Superior Cash Flow Cash Flow From Operations 3,4 (US$MM’s) Consolidated Free Cash Flow 3,4 (US$MM’s) 1,806 2,000 1,806 2,000 450 1,760 1,760 1,620 1,800 -350 1,620 1,800 400 1,487 359 1,487 1,374 1,403 1,600 -300 1,374 1,403 281 1,600 350 1,237 1,400 1,237 1,400 300 268 -250 1,200 1,200 25
Slide 10: 2021-2023 Outlook
Centerra: 2021-2023 Outlook 2020 2021 2022 2023 Units Actual Guidance Outlook Outlook Gold Payable Production (Koz) Kumtor 556 470 - 510 540 - 590 550 - 600 Mount Milligan(1) 162 180 - 200 170 - 190 180 - 210 Öksüt 106 90 - 110 210 - 240 200 - 220 Consolidated Gold Payable Production (Koz) 824 740 -
Slide 11: 2021 Guidance
Centerra: 2021 Guidance Mount 2021 Production Guidance Units Kumtor Öksüt Centerra Milligan(1) Gold Total Gold Payable Production(2) (Koz) 470-510 180-200 90-110 740-820 Copper Total Copper Payable Production(2) (Mlb) - 70-80 - 70-80 2021 All-in Sustaining Unit Costs(4) Units Kumtor Mount Milligan(1
Slide 12: Industry Leading FCF Generation
Centerra: Industry Leading FCF Generation 2020 FCF (US$ MM) $604 $598 $472 $344 $284 $268 $235 $179 $122 $56 $44 $11 1 Centerra B2Gold Endeavour Yamana Pan American Pretium Eldorado SSR Alamos IAMGOLD Equinox New Gold Net Debt / (Cash) Balance as of December 31, 2020 (US$ MM) $364 $277 $200 $88 $16
Slide 13: Compelling Valuation
Centerra: Compelling Valuation P / NAVPS (x) P / 2021E CFPS (x) P / 2021E EPS (x) Centamin 1.04x Alamos 6.3x OceanaGold 15.1x Kirkland Lake 0.94x Kirkland Lake 6.0x Alamos 12.7x B2Gold 0.87x B2Gold 5.9x Centamin 12.4x Yamana 0.79x Centamin 5.8x Eldorado 12.2x Kinross 0.76x OceanaGold 5.0x Yamana 11.
Slide 14: Kumtor: World Class Open Pit Gold Mine
Kumtor: World Class Open Pit Gold Mine 2018 2019 2020 2021E Gold Production (koz) 535 600 556 470-510 Production Costs ($/oz) $394 $381 $342 $400-$450 All-In Sustaining Costs ($/oz) (1) $694 $598 $741 $950-$1,000 All-In Costs ($/oz) (1) $913 $838 $1,042 $1,365-$1,420 Sustaining Capital ($MM) $44 $39
Slide 15: Kumtor: 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 16: 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 17: Kumtor: Life-of-Mine Plan
Kumtor: Life-of-Mine Plan Cash Flow Summary1 2 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 1,36
Slide 18: Kumtor: Exploration Potential
Kumtor: Exploration Potential N Expand known sulphide gold mineralization along the Kumtor Trend. Define oxide gold mineralization resources - determine overall continuity parameters, grade, and morphology of oxide gold mineralization along the Kumtor Trend, as well as intensity of oxidation, re
Slide 19: Kumtor: Southwest Deposit – Oxide Mineralization
Kumtor: Southwest Deposit – Oxide Mineralization 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 O
Slide 20: Kumtor: Deep Oxide Zone – Cross Section -142
Kumtor: Deep Oxide Zone – Cross Section -142, Looking NE N Deep Oxide Zone 4.11 g/t @ 222 m April 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. 20
Slide 21: Kumtor: Opportunities – The Golden Sunrise
Kumtor: Opportunities – The Golden Sunrise Process plant metallurgical studies and further recovery improvement Unconstrained pit optimization with new process plant location Sulphide and oxide mineralization exploration Waste rock storage alternatives Truck haulage alternatives / Conveyor belt Tail
Slide 22: Mount Milligan: Low-Cost Gold Copper Mine
Mount Milligan: Low-Cost Gold Copper Mine 2018 2019 2020 2021E Gold Production (koz) 195 183 162 180-200 Copper Production (Mlbs) 47 71 83 70-80 Production Costs ($/oz) $672 $746 $744 $650-$700 All-In Sustaining Costs ($/oz)(1) $764 $828 $541 $530-$580 All-In Costs ($/oz)(1) $782 $849 $590 $590-$640
Slide 23: Mount Milligan: Available Water – Dec. 31, 2020
Mount Milligan: Available Water – Dec. 31, 2020 April 2021 23
Slide 24: Öksüt: High Margin Gold Production
Öksüt: High Margin Gold Production 2020 2021E Gold Production (koz) 106 90-110 Production Costs ($/oz) $356 $500-$550 All-In Sustaining Costs ($/oz) (1) $494 $730-$780 All-In Costs ($/oz) (1) $819 $790-$840 Sustaining Capital ($MM) $2 $5-10 Öksüt Gold Non-sustaining Capital ($MM) $30 $2-4 Project Re
Slide 25: Öksüt: Site Photos
Öksüt: Site Photos Admin Offices and Crushing Area Open Pit Mining Open Pit Mining Heap Leach Pads Stacked Ore on Heap Leach Pad Irrigating Stacked Ore April 2021 25
Slide 26: Kemess: C$1Billion of Infrastructure
Kemess: C$1Billion of Infrastructure Fly-in, Fly-out Work Camp Permitted Open Pit Tailings Storage Facility Metallurgical Facility Kemess Proximity to Mount Milligan Kwadacha Kemess Project (Fort Ware) Kemess Omineca Resource Project Tsay Keh Access Road Forest Service Road 0 100 200 Kilometres Daws
Slide 27: Kemess: Large, Low-Cost Production
Kemess: Large, Low-Cost Production Kemess Underground – 2016 Feasibility Highlights(1) Kemess East– 2017 PEA Highlights(1) Mine Type Underground Block Cave Mine Type Underground Panel Cave Avg. LOM Gold Production (koz) 106 Avg. LOM Gold Production (koz) 80 Avg. LOM By-Product AISC (US$/oz)(2) $244
Slide 28: Centerra: Built For Success
Centerra: Built For Success Corporate Highlights Retained Earnings Profile (US$) 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 29: Appendix
Kumtor BUILT FOR SUCCESS Mount Milligan Appendix TSX: CG NYSE: CGAU Öksüt www.centerragold.com
Slide 30: Stewardship of the Kumtor Mine
Stewardship of the Kumtor Mine
Slide 31: Kumtor: 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 32: Kumtor: 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 33: Kumtor: 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 34: Kumtor: 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 35: Leading Capital Efficiency and Profitability
Centerra: Leading Capital Efficiency and Profitability L3Y Return on Invested Capital (%) L3Y Return on Capital (%) L3Y Return on Equity (%) Kirkland Lake 24% Kirkland Lake 28% Kirkland Lake 22% Centamin 13% B2Gold 14% B2Gold 11% B2Gold 12% Centamin 11% Centerra 11% Centerra 11% Centerra 10% SSR Min
Slide 36: Potential Upside Optionality - Molybdenum
Centerra: Potential Upside Optionality - Molybdenum Molybdenum Price Movement Thompson Creek Mine ● Located in Idaho, is the world’s fourth largest open-pit primary molybdenum mine ● Operations began in 1983, using conventional open-pit mining and a on- site 25,500 tpd mill ● In December 2014 placed
Slide 37: Hedging Programs
Centerra: Hedging Programs Canadian Dollar Hedging Strategic Copper Diesel Hedging Program(1) Program(1) Hedging(2) Unhedged 9% Unhedged 2021 Unhedged 30% Hedged 42% Hedged 70% 58% Hedged 91% Hedged Hedged Unhedged 35% 37% 65% Unhedged 63% 2022 Hedge Rate Notional Derivative 2021 2022 2021 2022 Tota
Slide 38: Operations 2021 Outlook
Centerra: Operations 2021 Outlook • Kumtor • 2021 expected gold production to rise steadily throughout the year with the first quarter of 2021 contributing approximately 15% of annual gold production rising to approximately 35% in the fourth quarter of 2021 as we access the high-grade ore. • Total t
Slide 39: 2021 Operations Key Focus
2021 Operations Key Focus Continue to Improve Safety Performance Company-wide Adequate Volumes of Stored Water at Mount Milligan to Run at Full Capacity for the Year Complete Construction of Phase 2 Heap Leach Pad at Öksüt Expand Leach Circuit and Add a Tower Mill at Kumtor Focus on Consis
Slide 40: Mineral Reserves - Proven & Probable
Centerra: Mineral Reserves - Proven & Probable1 Gold Mineral Reserves Proven Probable Total Proven and Probable Property Tonnes Grade Contained Tonnes Grade Contained Tonnes Grade Contained (kt) (g/t) Gold (koz) (kt) (g/t) Gold (koz) (kt) (g/t) Gold (koz) Mount Milligan 125,179 0.40 1,613 45,397 0.3
Slide 41: 2021 Guidance Sensitivities and Assumptions
Centerra: 2021 Guidance Sensitivities and Assumptions Impact on Impact on ($ millions) ($ per ounce sold) Production Costs & Net Earnings (after AISC(2)(3) on by- Capital Costs Revenues Cash flows Taxes tax) product basis Gold price $50/oz 5.5 – 6.0 - 34.0 – 37.5 28.5 – 31.5 28.5 – 31.5 2.50 – 3.00
Slide 42: 2021 Exploration - Map of Projects
Centerra: 2021 Exploration - Map of Projects 2016A 2017A 2018A 2019A 2020A 2021E Exploration spending ($MM) $11 $13 $21 $28 $39 $50 42 April 2021
Slide 43: Kumtor: 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 Lysyi Gap resources Evaluating oxide gold min
Slide 44: Mount Milligan: Exploration
Mount Milligan: Exploration 2021 Exploration Plan • Test mineralization below the 2020 ultimate pit in the MBX and 66 zones • Expand shallow mineralization at the Great Eastern Fault area • Expand HGLC resource in the South Boundary Zone • Infill drill Southern Star Zone and expand to the south • Te
Slide 45: Öksüt: Exploration Targets
Öksüt: Exploration Targets Western Asia, Europe and West Africa Keltepe NW-Keltepe N 2021 Exploration Plan Oxide Au & Supergene Cu Target • Expand near-surface oxide gold Boztepe & Boztepe West mineralization around Keltepe Porphyry Cu/Au Target and Guneytepe. Keltepe Pit • Infill and step-out drill
Slide 46: Investor Relations Highlights
Centerra: Investor Relations Highlights Research Analyst Coverage Top Ten (10) Institutional Shareholders Brokerage Firms Analyst Institution/Firm Dec.31-2020 1. Bank of America Michael Jalonen 1. Blackrock 13.19% 2. Canaccord Genuity Dalton Baretto 2. Van Eck Associates 9.16% 3. CIBC World Markets
Slide 47: Directors
Centerra: Directors Board of Directors Background MICHAEL S. PARRETT Chairman Appointed Director of Centerra’s Board, May 2014 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 TENGIZ BOLTURUK Dire
Slide 48: Built for Success
Kumtor BUILT FOR SUCCESS Mount Milligan Investor Presentation April 2021 TSX: CG NYSE: CGAU Öksüt www.centerragold.com