Centerra Gold Inc. · TSX:CG
Centerra Gold — Investor Presentation (August 2019)
37 slides from Centerra Gold's investor presentation, August 2019
Slide 1: Investor Presentation August 2019
Investor Presentation August 2019 TSX: CG 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 i
Slide 3: Centerra: Built For Success
Centerra: Built For Success Corporate Highlights Consensus Asset NAV Breakdown U.S. 2018 actual gold production 730koz, copper production 2% Turkey 47Mlbs, at AISC1 of $754 per ounce 10% 2018 Portfolio optimization2: • Sold royalty assets for $155MM; • Sold silver stream on Kemess Project for $45MM
Slide 4: 2019 ESG Operations Update
Centerra: 2019 ESG Operations Update Concluded ‘Leading from Within’ gender diversity program and conducted company-wide employee survey to measure internal engagement Maintained and strengthened our “Social Licence to Operate” at all operations with no social interruptions for ~72 consecutive month
Slide 5: Delivering Results: Operations vs. Guidance
Centerra: Delivering Results Operations vs. Guidance Centerra has a strong track record of beating both production and AISC2 guidance Operating Statistics vs. Guidance (mid-point) (koz Au) 795 785 730 691 685 660 625 621 540 551 537 520 1 2013 2014 2015 2016 2017 2018 Gold Production Guidance (mid
Slide 6: Q2 2019 Corporate Update
Centerra: Q2 - 2019 Corporate Update YTD 2019 Cash Flow (US$MM’s) Liquidity Profile June 30, 2019 (US$MM’s) 350 176 90 300 500 250 35 63 200 152 140 US$715MM 150 100 50 140 75 0 1 1 2018 YE Cash Kumtor + MTM Net Debt Oksut Spend Dev Projects, Q2 2019 Cash FCF Repayments G&A & Other 2 3 3 Cash Reserv
Slide 7: Q2 2019 Corporate Highlights
Centerra: Q2 - 2019 Corporate Highlights Safety – Kumtor Mine Contractor Workforce Achieved 1-year Without a Lost Time Injury Mount Milligan Mill Operated at 53,500 Tonnes Per Calendar Day During Q2 Q2 2019 Consolidated Gold Production of 199,578 Ounces and Copper Production of 20.4 Million Po
Slide 8: Low-Cost Asset Base
Centerra: Low-Cost Asset Base Positioned to generate free cash flow through the price cycles AISC Industry Curve (By-P roduct Basis) $2,500 25% 50% 75% 100% $2,250 $2,000 Centerra Gold AISC, net (US$/oz Au) $1,750 (US$713-743/oz Au) Kemess Underground $1,500 (US$244/oz)(1) Kumtor $1,250 (US$635-68
Slide 9: Compelling Valuation
Centerra: Compelling Valuation P / NAVPS (x) P / 2019E CFPS (x) P / 2019E Earnings (x) Kirkland Lake 2.14x Kirkland Lake 11.8x IAMGOLD 76.8x B2Gold 1.24x Centamin 11.1x Eldorado 44.4x Yamana 1.20x Coeur 9.6x Yamana 40.0x SSR Mining 1.19x SSR Mining 9.6x Alamos 33.2x Centamin 1.07x Alamos 9.1x Detour
Slide 10: 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 16% Kirkland Lake 22% Kirkland Lake 23% OceanaGold 9% OceanaGold 10% OceanaGold 12% Centerra 8% Centerra 10% Centerra 11% B2Gold 6% Alacer 5% B2G
Slide 11: Kumtor: World Class Open Pit Gold Mine
Kumtor: World Class Open Pit Gold Mine 2019E 2016 2017 2018 Revised Guidance Gold Production (koz) 551 563 535 550-575 All-In Sustaining Costs $640 $698 $694 $635-$685 ($/oz) (1) Sustaining Capital ($MM)(1) $61 $61 $44 $45 Growth Capital ($MM)(1) $15 $18 $17 $20 Projected Asset Life (years) +8 Reser
Slide 12: Kumtor: 2019 Exploration
Kumtor: 2019 Exploration Boris Kotlyar, a Member with the American Institute of Professional Geologists, is Centerra’s qualified person for the purpose of National Instrument 43-101. August 2019 12
Slide 13: Mount Milligan: Long Life, Low Cost Gold Copper Mine
Mount Milligan: Long Life, Low Cost Gold Copper Mine 2019E 2016 2017 2018 Guidance Gold Production (koz) 205 223 195 155-175 Copper Production (Mlbs) 59 54 47 65-75 All-In Sustaining Costs $509 $505 $764 $727-$821 (US$/oz)(1) Sustaining Capital ($MM)(1) NA $30 $43 $45 Remaining reserve life (years)
Slide 14: Mount Milligan: 2019 Exploration
Mount Milligan: 2019 Exploration W E 2018 drill program expanded the Resource Shell to the west and at depth, increasing Mineral Resources. 2019 Drilling: - In-pit & Infill drilling - 22,500 metres - Brownfield an Greenfield drilling - 12,000 metres C. Paul Jago, a Member of Engineers and Geoscienti
Slide 15: Öksüt: Q2-2019 Construction Update
Öksüt: Q2-2019 Construction Update Admin Area Construction Mine Haul Roads Crusher and Stockpile Area ADR Plant Heap Leach Pad 1A+1B Liner Install Chemical Storage Shed Construction August 2019 15
Slide 16: Öksüt: Funded High Margin Gold Production
Öksüt: Funded High Margin Gold Production Project Highlights Mine Type Open Pit, Heap Leach Avg. LOM Annual Production 110koz Au Avg. LOM AISC(1) (US$/oz) $490 Reserve Mine Life 8 years Development Capex (US$MM) $200 LOM Sustaining Capital(1) (US$MM) $10 Öksüt Gold Project P&P Reserves(2)(Moz) 1.3 A
Slide 17: Kemess: C$1 Billion of Infrastructure
Kemess: C$1Billion of Infrastructure Fly-in, Fly-out Work Camp Permitted Open Pit Tailings Storage Facility Metallurgical Facility Kemess Proximity to Mount Milligan Kwadacha Kemess Project (Fort Ware) Kemess Omineca Resource Project Tsay Keh Access Road Forest Service Road 0 100 200 Kilometres Daws
Slide 18: Kemess: Large, Low-Cost Production
Kemess: Large, Low-Cost Production Kemess Underground – 2016 Feasibility Highlights(1) Kemess East– 2017 PEA Highlights(1) Mine Type Underground Block Cave Mine Type Underground Panel Cave Avg. LOM Gold Production (koz) 106 Avg. LOM Gold Production (koz) 80 Avg. LOM By-Product AISC (US$/oz)(2) $244
Slide 19: 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 Greenstone Development Project Open pit reserves(1) (100%) 4.7Moz Au @ 1.02 g/t Location: Ontario, Canada
Slide 20: Potential Upside Optionality - Molybdenum
Centerra: Potential Upside Optionality - Molybdenum Molybdenum Price Movement Thompson Creek Mine 14.0 ● Located in Idaho, is the world’s fourth largest open-pit primary 13.0 molybdenum mine $11.77 12.0 ● Operations began in 1983, using conventional open-pit mining and a on- 11.0 site 25,500 tpd mil
Slide 21: Appendix
Appendix TSX: CG www.centerragold.com
Slide 22: 2019 Exploration - Map of Projects
Centerra: 2019 Exploration - Map of Projects 2016A 2017A 2018A 2019E Exploration spending ($MM) $11 $13 $21 $30 August 2019 22
Slide 23: 2019 Production, AISC, and Other Guidance
Centerra: 2019 Production, AISC1, and Other Guidance June 2019 FY 2019 FY 2019 Consolidated YTD Actuals New Guidance Prior Guidance Gold Production in Koz 383 Koz 705 - 750 Koz 690 - 740 Koz Kumtor 301 Koz 550 - 575 Koz 535 - 565 Koz MTM 82 Koz 155 - 175 Koz 155 - 175 Koz Copper Production in Mlb 32
Slide 24: 2019 Capex and Depreciation Guidance
Centerra: 2019 Capex and Depreciation Guidance June 2019 FY 2019 FY 2019 (US $M) YTD Actuals New Guidance Prior Guidance Total Capital, excluding capitalized stripping(1) $105 $275 $275 Sustaining Capex (1) 41 100 91 Kumtor 20 45 45 Mount Milligan 20 45 37 Others (Thompson Creek Mine, Endako Mine (7
Slide 25: 2018 Corporate Update
Centerra: 2018 Corporate Update 2018 YTD Cash Flow (US$MM’s) Liquidity Profile Dec.31, 2018 (US$MM’s) 700 600 155 247 389 500 131 105 417 400 44 155 300 US$641MM 200 152 100 152 100 0 2017 YE Royalty sale AMI Operations Net Debt Oksut Spend Dev 2018 YE 1 1 Cash Acquisition FCF Repayments Projects, C
Slide 26: Q2-2019 Operating Highlights
Centerra: Q2-2019 Operating Highlights Q2 2019 gold production - Kumtor 151,065 ounces, Mount Milligan 48,513 ounces Q2 2019 copper production - Mount Milligan 20,397,000 pounds Mount Milligan throughput 53,500 tonnes per calendar day (58,200 tonnes per operating day) On track to produce 55,000 tonn
Slide 27: Q2-2019 Financial Highlights
Centerra: Q2-2019 Financial Highlights1 Quarter Ended Quarter Ended (in thousands, except ounces, per share amounts, and average realized price2) June 30, 2019 June 30, 2018 Revenue $340,510 $243,315 Total gold ounces sold 198,287 140,427 Total copper pounds sold (000’s) 18,700 12,668 Cash provided
Slide 28: Q2-2019 Other Financial Highlights
Centerra: Q2-2019 Other Financial Highlights Gold Sales of 198,287 ounces / Copper Sales of 18.7 million pounds in Q2 2019 Q2 2019 AISC1 of $716 per ounce (Kumtor $562/oz. and Mount Milligan $938/oz.) Q2 2019 Cash Provided by Operations of $91MM ($0.31 per share) Q2 2019 Cash Provided Operations Bef
Slide 29: Mount Milligan: Short & Medium-term Water Sources
Mount Milligan: Short & Medium-term Water Sources August 2019 29
Slide 30: 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, Amended Mines Act Forest Service Road Permit (construction permit) received, Effluent 0 100
Slide 31: Kemess: Overview
Kemess: Overview Kemess Underground (Feasibility – 2016)(1) • Reserves of 1.9Moz Au and 0.6Blbs Cu(2) • LOM of 12 years at 106koz Au/p.a. and 47Mlbs/p.a. at AISC(3) of $244/oz on a by-product basis • Environmental approvals and IBA received • Received Mines Act Permit (construction permit) • Receive
Slide 32: Revised 2019 Guidance
Centerra: Revised 2019 Guidance 2019 Revised Production Guidance Units Kumtor Mount Milligan(1) Centerra Gold Total Gold Payable Production(2) (Koz) 550 – 575 155 – 175 705 – 750 Copper Total Copper Payable Production(3) (Mlb) – 65 – 75 65 – 75 2019 Revised All-in Sustaining Unit Costs (5) Kumtor Mo
Slide 33: 2019 Guidance Sensitivities
Centerra: 2019 Guidance Sensitivities Impact on Impact on ($ millions) ($ per ounce sold) Change Net Earnings AISC(2) on by-product Costs(3) Revenues Cash flows (after tax) basis Gold price $50/oz 1.8 – 2.0 14.4 – 16.4 12.6 – 14.4 12.6 – 14.4 2–3 Copper price 10% 0.3 – 0.4 7.5 – 9.7 7.2 – 9.3 7.2 –
Slide 34: 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 211,649 0.4 2,600 235,913 0.3
Slide 35: Investor Relations Highlights
Centerra: Investor Relations Highlights Research Coverage Top Ten (10) Institutional Shareholders Brokerage Firms Rating Target Institution/Firm June 30-2019 1. BofA Merrill Lynch Neutral C$11.75 1. Van Eck Associates 10.59% 2. Canaccord Genuity Buy C$11.50 3. CIBC World Markets Outperform C$11.50 2
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