Centerra Gold Inc. · TSX:CG
Centerra Gold — Shareholder Meeting (May 2005)
17 slides from Centerra Gold's shareholder meeting presentation, May 10, 2005
Slide 1: Annual Shareholders Meeting
Annual Shareholders Meeting May 10, 2005 1
Slide 2: Annual Shareholders Meeting - Patrick M. James, Chairman
Annual Shareholders Meeting May 10, 2005 Patrick M. James Chairman 2
Slide 3: Board of Directors
Board of Directors Ian Austin John S. Auston Gerald W. Grandey Leonard A. Homeniuk Patrick M. James Ularbek Mateyev Terry Rogers Josef Spross Anthony J. Webb Patrick M. James Chairman 3
Slide 4: Agenda
Leonard A. Homeniuk President & CEO Agenda z Review of 2004 performance z Update on strategy z Financial highlights 4
Slide 5: An Excellent First Year; Two Exceptional Mines
An Excellent First Year z Fifth largest IPO on TSX in 2004 z Largest gold offering since 1994 z Delivering on our commitments – excellent safety record – gold production exceeded expectations > 900,000 oz. – strong financial performance Two Exceptional Mines Kumtor Kyrgyz Republic z Produced five-mi
Slide 6: Two Exceptional Mines; Committed to Sustainable Development
Two Exceptional Mines Boroo Mongolia z First year of operation z Surpassed targets Boroo – production ahead 10% – $149 per oz. z 500 employees – one of best work forces z Positive business climate Committed to Sustainable Development z Safe, healthy workplace z Sound environmental practices z Suppor
Slide 7: Sustainable Development Initiatives – Example
Sustainable Development Initiatives – Example z International Snow Leopard Trust z Protecting endangered species z Only 6,000 left in world z Support in reducing reliance on poaching Sustainable Development Initiatives – Example z Collaboration with World Vision Canada – Mongolia Nutrition Program z
Slide 8: Our Strategy Remains Consistent; Progress on the Exploration Front
Our Strategy Remains Consistent 3. Selective acquisitions 2. Advance REN & Gatsuurt properties 1. New reserves existing mines Progress on the Exploration Front Aggressive drilling program Added one years production to reserves at Kumtor, Boroo Gatsuurt deposit – defined, upgraded – feasibility study
Slide 9: Progress Towards Reserve Addition Goals
Progress Towards Reserve – Addition Goals Kumtor 1.5M oz. Mongolia 1.0M oz. Acquisitions – Continuing to Evaluate z Later-stage projects and operating mines z Central Asia, FSU and other emerging markets z Continue to evaluate z Must meet investment criteria 9
Slide 10: Growing Interest in Our Area; The Political Environment
Growing Interest in Our Area z Increase in investment activity z Centerra’s competitive advantages – 12 years experience – solid corporate citizen – delivered on commitments – strong working relationships The Political Environment Kyrgyz Republic Mongolia 10
Slide 11: Political Environment – Mongolia and Kyrgyz Republic
Political Environment – Mongolia z Presidential election – May 22 z Current coalition government ahead in polls z Civil unrest not expected Political Environment – Kyrgyz Republic z Parliamentary elections precipitated events – President for past 15 years resigned – Presidential elections scheduled
Slide 12: Strong 2004 Earnings
David M. Petroff Executive VP and CFO Strong 2004 Earnings Net earnings EPS $0.91 $51M $0.24 $9M 2003 2004 2003 2004 12
Slide 13: Solid Cash Flow; Breakdown of Assets
Solid Cash Flow Cash from operations • Cash on hand = $153M $88M • Ample liquidity $24M 2003 2004 Breakdown of Assets $M Kyrgyz Republic $240 Mongolia $132 N. America $132 Goodwill $156 Total $660 13
Slide 14: Q1, 2005 Results; Leveraged to Gold Prices
Q1, 2005 Results Net earnings $12M $8M Q1 04 Q1 05 Leveraged to Gold Prices z Gold price increase in Q1, 2005 Up 5% z Realized price Q1, 2005 $417 Up 9% 14
Slide 15: Q1, 2005 Highlights; Cash Position Remains Strong
Q1, 2005 Highlights Total production 213,450 oz. Kumtor production 141,558 oz. Boroo production 71,892 oz. Cash cost per oz. amongst lowest $211 Cash Position Remains Strong Cash from operations $37M • Cash on hand = $185M • No debt $3M Q1 04 Q1 05 15
Slide 16: 2005 Outlook
2005 Outlook Actual Forecast 2004 2005 Production (oz) 903,030 790,000 Cash cost (per oz) $189 $229 Capital requirements $12M $35M Leonard A. Homeniuk President & CEO 16
Slide 17: Centerra is Well-Positioned
Centerra is Well-Positioned Two low-cost operating mines Excellent exploration projects Geographic focus – a competitive advantage Balanced growth strategy Strong financial resources Annual Shareholders Meeting May 10, 2005 17