Centerra Gold Inc. · TSX:CG
Centerra Gold — Q3 2005 Earnings Presentation
23 slides from Centerra Gold's earnings presentation, Nov 1, 2005
Slide 1: 2005 Third Quarter Conference Call
2005 Third Quarter Conference Call November 1, 2005
Slide 2: Speakers
Speakers ¾ Len Homeniuk President and Chief Executive Officer ¾ George Burns Vice President and Chief Operating Officer ¾ David Petroff Executive Vice President and Chief Financial Officer
Slide 3: Forward-Looking Statements
Forward-Looking Statements Statements contained in this presentation which are not historical facts are forward looking statements that involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed o
Slide 4: Speakers
Speakers ¾ Len Homeniuk President and Chief Executive Officer
Slide 5: Commitment to Growth
Commitment to Growth z Changes to management team – Rob Chapman Director, Mergers and Acquisitions – Ian Atkinson Vice President, Exploration – Ron Colquhoun Vice President, Project Development and Engineering
Slide 6: Building Track Record
Building Track Record z Earnings of $9 million, $0.12 per share z Cash flow of $17 million z Seventh consecutive quarter of solid earning and cash flow since Centerra’s inception in June, 2004 z Invested $9.5 million in growth initiatives in the third quarter
Slide 7: Encouraging Exploration Results
Encouraging Exploration Results Kumtor z Confident of meeting reserve addition objective z Encountering thicker zones of mineralization than anticipated in southern and northern portions of the pit z Zones remain open; require further drilling z $2 million investment in drilling forecast in fourth q
Slide 8: Encouraging Exploration Results
Encouraging Exploration Results Sarytor z Located five kilometres from Kumtor mill z In-fill drilling at early-stage target z Confirmed thicker part of mineralization z Drilling continuing
Slide 9: Update on Kyrgyz Republic
Update on Kyrgyz Republic z President and Prime Minister have assumed office z New government has been formed
Slide 10: Speakers
Speakers ¾ George Burns Vice President and Chief Operating Officer
Slide 11: Operations Review
Operations Review Kumtor z Good operating quarter z Production of 123,000 ounces of gold – 4% over forecast z Cash cost of $277 per ounce – on forecast z Average mill head grades of 3.4g/t
Slide 12: Operations Review
Operations Review Kumtor z Major profitability improvement projects on track – ultra-fine grinding mill installed and performing well – expansion of mining fleet nearly completed z Outlook - 2005 – fourth quarter production estimate of 110,000 ounces at $307 per ounce – year production estimate of 5
Slide 13: Operations Review
Operations Review Boroo z Excellent operating quarter z Production of 71,000 ounces of gold – 12% over forecast z Average mill head grades of 4.1 g/t z Cash operating cost of $187 per ounce
Slide 14: Operations Review
Operations Review Boroo z Outlook – 2005 – fourth quarter production estimate of 67,000 ounces at $178 per ounce – year production estimate of 285,000 ounces at $173 per ounce
Slide 15: Speakers
Speakers ¾ David Petroff Executive Vice President and Chief Financial Officer
Slide 16: Centerra's Ownership Interest
Centerra’s Ownership Interest* * As Reflected in the Net Earnings of the Company 2005 2004 Q3 Q2 Q1 Q2 Q3 Kumtor 100% 100% 100% 33% 100% Boroo (1) 95% 95% 95% 53% 95% (1) began commercial operations on March 1, 2004
Slide 17: Income Statement
Income Statement Third Quarter Nine Months US$ millions 2005 2004 2005 2004 Revenue 77 87 264 159 Cost of sales 43 37 144 68 Depreciation, depletion and reclamation 14 18 48 33 Exploration 7 4 18 8 Interest and other (3) (5) (4) (6) Administration 6 4 15 7 10 29 43 49 Other expenses - - 8 Income tax
Slide 18: Balance Sheet
Balance Sheet US$ millions Sep. 30 Dec. 31 2005 2004 Assets Cash 212 153 Accounts receivable 4 3 Inventories 20 22 Supplies and prepaid expenses 58 47 294 225 Property, plant and equipment 240 268 Long-term receivables, investments and other 8 12 Goodwill 156 155 Total Assets 698 660 Liabilities and
Slide 19: Cash Flows
Cash Flows Third Quarter Nine Months US$ millions 2005 2004 2005 2004 Cash provided (used) by operations 17 29 79 64 Investing activities ( 8) ( 3) ( 19) 17 Financing activities - 20 - 40 Increase (decrease) in cash 9 46 60 121 Cash at the beginning of the period 203 85 152 10 Cash at the end of the
Slide 20: 2005 Forecast
2005 Forecast z Fourth quarter forecast – Production of 177,000 ounces – Average cash cost of $258 per ounce z Year Forecast – Production of 800,000 ounces – Average cash cost of $232 per ounce – Exploration investment of $24 million – Administration cost of $22 million – Capital requirements of $32
Slide 21: Speakers
Speakers ¾ Len Homeniuk President & CEO
Slide 22: Question Period
Question Period centerraGoL_op
Slide 23: 2005 Third Quarter Conference Call
2005 Third Quarter Conference Call November 1, 2005