Centerra Gold Inc. · TSX:CG
Centerra Gold — Investor Presentation (February 2018)
43 slides from Centerra Gold's investor presentation, February 2018
Slide 1: Investor Presentation February 2018
Investor Presentation February 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 $688 per ounce and 53.6M lbs of copper Canada Kyrgyz
Slide 4: Centerra: 2017 Corporate Update
Centerra: 2017 Corporate Update 2017: Internally Funded Business (US$MM’s) Liquidity Profile (US$MM’s) 800 188 209 700 600 127 98 500 409 417 $3353 400 US$630MM 300 $2952 200 100 0 1 1 2016 Cash Mt Milligan Kumtor FCF Debt Other 2017 Cash FCF Repayments (Projects, 3 Cash Reserves 2 Undrawn Credit Fa
Slide 5: Full Year Actuals vs Guidance Revision
Centerra: Full Year Actuals vs Guidance Revision Mid-Point Gold Production (oz’s) Guidance Highlights 795,0001 785,000 755,000 750,000 650,000 Gold Production – 785,000 ounces exceeded original guidance, within revised guidance range 550,000 450,000 All-In Sustaining Costs2 – Outperformed low-en
Slide 6: Asset Breakdown
Centerra: Asset Breakdown 2017 Free Cash Flow Consensus Asset NAV Consensus Asset NAV (US$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 7: 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 8: 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 9: 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 10: 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 $44 Remaining reserve life (years) +20 Gold Copper P&P R
Slide 11: Kumtor: World Class Open Pit Gold Mine
Kumtor: World Class Open Pit Gold Mine 2018E 2016 2017 Guidance Gold Production (koz) 551 563 450-500 All-In Sustaining Costs ($/oz) (1) $640 $698 $733-$815 Sustaining Capital ($MM)(1) $61 $61 $49 Growth Capital ($MM)(1) $15 $18 $14 Projected Asset Life (years) +8 Reserves(2) (Moz) 4.5 Au Grade (g/t
Slide 12: Öksüt: Funded High Margin Gold Production
Öksüt: Funded High Margin Gold Production 2015 Feasibility Highlights Mine Type Open Pit, Heap Leach Avg. LOM Annual Production 110koz Au Avg. LOM AISC(1) (US$/oz) $490 Reserve Mine Life 8 years Development Capex (US$MM) $221 P&P Reserves(2)(Moz) 1.2 Au grade (g/t) 1.3 Öksüt Gold Project Life of Min
Slide 13: 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 14: Kemess: De-Risked Brownfield Project
Kemess: De-Risked Brownfield Project(1) • Established mining jurisdiction Kwadacha Kemess Project (Fort Ware) Kemess • Advanced-stage Project Tsay Keh Omineca Resource Access Road − EA Approved, IBA in hand, FS complete Forest Service Road 0 100 200 • Low-risk brownfield development Kilometers Dawso
Slide 15: Kemess: Site Layout – C$1Billion of Infrastructure
Kemess: Site Layout – C$1Billion of Infrastructure Fly-in, Fly-out Work Camp South Open Pit (Tailings Storage Facility) Metallurgical Facility Kemess Underground & East Deposits February 2018 15
Slide 16: Kemess: Large, Low-Cost Production
Kemess: Large, Low-Cost Production Kemess Underground – 2016 Feasibility Highlights(1) Kemess East– 2017 PEA Highlights(1) Mine Type Underground Block Cave Mine Type Underground Panel Cave Avg. LOM Gold Production (koz) 106 Avg. LOM Gold Production (koz) 80 Avg. LOM By-Product AISC (US$/oz)(2) $244
Slide 17: Kemess: Timeline – And Copper Outlook
Kemess: Timeline – And Copper Outlook Kemess Timeline Copper Outlook Deficit 25 Large ~6Mt deficit expected 20 by 2030 Mt 15 10 2015 2018 2021 2024 2027 2030 Source: Wood Mackenzie. Base Probable Projects Primary Demand February 2018 17
Slide 18: 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 19: 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-Product Basis) 0% 25% 50% 75% 100% $2,500 Centerra Gold (US$799-885/oz A
Slide 20: Appendices
Appendices TSX: CG www.centerragold.com
Slide 21: Enhanced Project Pipeline
Centerra: Enhanced Project Pipeline Öksüt: High Margin Open Pit Heap Leach Gold Project Funded, late-stage gold development project Near-term high margin gold production Kemess: Low-Cost Brownfield Gold-Copper Project in British Columbia Over C$1 billion of surface infrastructure, EIA and First Nati
Slide 22: Diversified Portfolio with Balanced Geographical Profile
Diversified Portfolio with Balanced Geographical Profile Consensus Asset NAV by Geography(1) P+P Reserves by Geography(2) Mongolia U.S. Australia Turkey 2% 2% 1% 7% Mongolia Turkey 8% 9% Canada 53% Kyrgyz Canada Kyrgyz Republic 57% Republic 28% 33% Consensus Asset NAV by Stage M+I Resource (Inclusiv
Slide 23: Centerra: Q4 & 2017 Corporate Update
Centerra: Q4 & 2017 Corporate Update Safety – “Work Safe : Home Safe” Program Rolled Out Across the Company Achieved 2017 Gold Production of 785,316 Ounces and Copper Production of 53.6 Million Pounds including 562,749 Ounces at Kumtor and 222,567 Ounces at Mount Milligan 2017 All-In Sustaining
Slide 24: Q4 & 2017 Operating Highlights
Centerra: Q4 & 2017 Operating Highlights 2017 gold production - Kumtor 562,749 ounces, Mount Milligan 222,567 ounces1 2017 copper production - Mount Milligan 53,596,000 pounds1 Kumtor received all the necessary permits and approvals for 2018 operations 2018 Company-wide guidance, 645,000 – 715,000 o
Slide 25: Mount Milligan: Update
Mount Milligan: Update Temporary suspension of mill processing operations late-December due to low water levels; Restarted milling at partial capacity Feb.5, 2018 ramping up to approximately 30,000 tpd; Expect to return to full capacity after spring melt; 2nd half 2018 expect to average 55,000
Slide 26: Mount Milligan: Exploration Targets
Mount Milligan: Exploration Targets February 2018 26
Slide 27: Mount Milligan: Resource Expansion Potential
Mount Milligan: Resource Expansion Potential C. Paul Jago, a Member of the Engineers and Geoscientists British Columbia, is Centerra’s qualified person for the purpose of National Instrument 43-101. February 2018 27
Slide 28: Q4 & 2017 Financial Highlights
Centerra: Q4 & 2017 Financial Highlights1 Quarter Quarter Ended Ended Year Ended Year Ended Dec.31, Dec.31, Dec.31, Dec.31, (in thousands, except ounces, per share amounts, and average realized price4) 2017 2016 2017 2016 Revenue(2) $358,232 $305,723 $1,199,028 $757,723 Total gold ounces sold(3) 242
Slide 29: Q4 & 2017 Other Financial Highlights
Centerra: Q4 & 2017 Other Financial Highlights Consolidated 2017 AISC1 of $688 per ounce; Outperform low-end of guidance by $17 per ounce Q4, 2017 AISC1 of $526 per ounce at Kumtor and $594 per ounce at Mount Milligan - Q4, 2017 sold all ounces which were temporarily held back at Kumtor in Q3, 2017
Slide 30: Q4 & 2017 Other Financial Highlights
Centerra: Q4 & 2017 Other Financial Highlights Two High Cash Generating Mines - 2017 $562.9 Million cash provided from mine operating activities before changes in working capital1 and after capital expenditures of $311.6 Million (including $196.2 million from Kumtor and $115.4 million from Mount Mil
Slide 31: Kemess: Value Creation Opportunities
Kemess: Value Creation Opportunities • Optimization opportunities through the integration of KUG and KE − Economies of scale in ore processing, G&A, and site services − Optimize tailings management − Optimize mining and development of KUG and KE to access highest grade areas of both deposits during
Slide 32: Gatsuurt: Gold Development Project
Gatsuurt: Gold Development Project 2017 Feasibility Highlights(1) Mine Type Open Pit The Gatsuurt Project is ~90 km north of Ulaanbaatar Avg. LOM Annual Production 111koz Au Avg. LOM AISC(1) (US$/oz) $870 Reserve Mine Life 10 years LOM Development Capex (US$MM) $245 LOM Sustaining Capital (US$MM) $3
Slide 33: Greenstone: One of Canada's Largest Undeveloped Open Pit Gold Mines
Greenstone: One of Canada’s Largest Undeveloped Open Pit Gold Mines Cornerstone Canadian Development Project Ontario: Top Tier Mining Jurisdiction 50:50 development partnership with Premier Gold Open pit reserves(1) (100%) 4.7Moz Au @ 1.02 g/t Historic gold production of 4.12M oz (~1934-1970) Large
Slide 34: Greenstone: One of Canada's Largest Undeveloped Open Pit Gold Mines
Greenstone: One of Canada’s Largest Undeveloped Open Pit Gold Mines Cornerstone Canadian Development Project Ontario: Top Tier Mining Jurisdiction 50:50 development partnership with Premier Gold Open pit reserves(1) (100%) 4.7Moz Au @ 1.02 g/t Historic gold production of 4.12M oz (~1934-1970) Large
Slide 35: Producing Royalties
Centerra: Producing Royalties Young-Davidson (1.5% NSR) Fosterville (2.0% NSR) Mine Operator Alamos Gold Mine Operator Kirkland Lake Gold Mine Type Underground Mine Type Underground 2018 Production Guidance 200-210koz Gold 2018 Production Guidance 260-300koz Gold P&P Reserves 3,467koz @ 2.6 g/t P&P
Slide 36: Non-Producing Royalties
Centerra: Non-Producing Royalties Date Primary Asset Location NSR Rate Operator Notes Acquired(1) Metal Independence Boulevard Mar-17 Gold Yukon 1.00% Adjacent to Goldcorp’s Coffee project Gold Cumobabi Mar-17 Copper Mexico 0.50% Evrim Resources Under option to First Majestic Silver Kirkland Lake 19
Slide 37: 2018 Guidance
Centerra: 2018 Guidance 2018 Production Guidance Units Kumtor Mount Milligan(1) Centerra Gold Total Gold Payable Production(2) (Koz) 450 – 500 195 – 215 645 – 715 Copper Total Copper Payable Production(3) (Mlb) – 47 – 52 47 – 52 2018 All-in Sustaining Unit Costs (5) Kumtor Mount Milligan(1) Centerra
Slide 38: 2018 Guidance Sensitivities
Centerra: 2018 Guidance Sensitivities Impact on Impact on ($ millions) ($ per ounce sold) Change Net Earnings AISC(3) on by-product Costs Revenues Cash flows (after tax) basis Gold price(1) $50/oz 3.2 – 3.7 22.0 – 25.2 18.8 – 21.5 18.8 – 21.5 0-1 Copper price(1) 10% 1.9 – 2.3 6.6 – 7.9 4.7 – 5.6 4.7
Slide 39: 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 40: Investor Relations Highlights
Centerra: Investor Relations Highlights Research Coverage Top Ten (10) Institutional Shareholders Brokerage Firms Rating Target Institution/Firm Q4-2017 1. BMO Capital Markets Hold C$10.00 2. BofA Merrill Lynch Neutral C$9.25 1. Blackrock 13.00% 3. Canaccord Genuity Hold C$7.00 2. Van Eck 8.64% 4. C
Slide 41: Senior Management
Centerra: Senior Management Industry Background Experience • Appointed Chief Executive Officer in November, 2015 SCOTT PERRY 20 years Chief Executive Officer • Former Chief Executive Officer at AuRico Gold GORDON REID • Appointed Chief Operating Officer in January, 2013 30 years Chief Operating Offi
Slide 42: 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 43: TSX: CG www.centerragold.com
TSX: CG www.centerragold.com
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