Centerra Gold Inc. · TSX:CG
Centerra Gold — Investor Presentation (May 2019)
34 slides from Centerra Gold's investor presentation, May 2019
Slide 1: Investor Presentation May 2019
Investor Presentation May 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 $45MM
Slide 4: Delivering Results: Operations vs. Guidance
Centerra: Delivering Results Operations vs. Guidance Centerra has a strong track record of beating both production and AISC2 guidance Operating Statistics vs. Guidance (mid-point) (koz Au) 795 785 730 691 685 660 625 621 540 551 537 520 1 2013 2014 2015 2016 2017 2018 Gold Production Guidance (mid
Slide 5: 2019 Corporate Update
Centerra: 2019 Corporate Update Q1 2019 Cash Flow (US$MM’s) Liquidity Profile March 31, 2019 (US$MM’s) 300 91 21 250 15 430 27 200 180 152 150 US$685MM 100 180 50 75 0 1 1 2018 YE Cash Operations FCF Net Debt Oksut Spend Dev Projects, Q1 2019 Cash Repayments G&A & Other 2 3 3 Cash Reserves Corporate
Slide 6: Q1 2019 Corporate Highlights
Centerra: Q1 - 2019 Corporate Highlights Safety – Thompson Creek Mine achieved 5 full years without a lost time injury Received Approvals for Mount Milligan to Access Water From Philip Lake 1, Rainbow Creek and Meadows Creek until November 2021 Mount Milligan Mill Operated at 32,000 tonnes per
Slide 7: 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$723-775/oz Au) Kemess Underground $1,500 (US$244/oz)(1) Kumtor $1,250 (US$666-70
Slide 8: Compelling Valuation
Centerra: Compelling Valuation P / NAVPS (x) P / 2019E CFPS (x) P / 2019E Earnings (x) Kirkland Lake 1.52x Kirkland Lake 9.4x IAMGOLD 57.8x OceanaGold 1.22x SSR Mining 8.9x SSR Mining 48.3x B2Gold 1.17x Centamin 8.1x Detour 29.6x SSR Mining 1.06x Alamos 7.9x Alamos 29.5x Coeur 0.98x Pretium 7.7x Eld
Slide 9: 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 14% Kirkland Lake 14% Kirkland Lake 14% OceanaGold 10% OceanaGold 9% OceanaGold 10% Centerra 8% Centerra 8% Centerra 8% B2Gold 6% IAMGOLD 6% IAMG
Slide 10: Kumtor: World Class Open Pit Gold Mine
Kumtor: World Class Open Pit Gold Mine 2019E 2016 2017 2018 Guidance Gold Production (koz) 551 563 535 535-565 All-In Sustaining Costs $640 $698 $694 $666-$703 ($/oz) (1) Sustaining Capital ($MM)(1) $61 $61 $44 $45 Growth Capital ($MM)(1) $15 $18 $17 $14 Projected Asset Life (years) +8 Reserves(2) (
Slide 11: 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. May 2019 11
Slide 12: 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 $37 Remaining reserve life (years)
Slide 13: Mount Milligan: 2019 Exploration
Mount Milligan: 2019 Exploration W E 2018 drill program expanded the Resource Shell to the west and at depth, increasing Mineral Resources. 2019 Drilling: - In-pit & Infill drilling - 22,500 metres - Brownfield an Greenfield drilling - 12,000 metres C. Paul Jago, a Member of Engineers and Geoscienti
Slide 14: Öksüt: Q1-2019 Construction Update
Öksüt: Q1-2019 Construction Update Admin Area Construction Haul Road and Keltepe Pit Location Primary Crusher Steel Work ADR Plant Construction ADR Plant – Carbon Tanks Stacker-Conveyor Construction May 2019 14
Slide 15: Öksüt: Funded High Margin Gold Production
Öksüt: Funded High Margin Gold Production Project Highlights Mine Type Open Pit, Heap Leach Avg. LOM Annual Production 110koz Au Avg. LOM AISC(1) (US$/oz) $490 Reserve Mine Life 8 years Development Capex (US$MM) $221 LOM Sustaining Capital(1) (US$MM) $10 Öksüt Gold Project P&P Reserves(2)(Moz) 1.3 A
Slide 16: Kemess: C$1 Billion of Infrastructure
Kemess: C$1Billion of Infrastructure Fly-in, Fly-out Work Camp Permitted Open Pit Tailings Storage Facility 50ktpd Metallurgical Facility Kemess Proximity to Mount Milligan Kwadacha Kemess Project (Fort Ware) Kemess Omineca Resource Project Tsay Keh Access Road Forest Service Road 0 100 200 Kilometr
Slide 17: Kemess: Large, Low-Cost Production
Kemess: Large, Low-Cost Production Kemess Underground – 2016 Feasibility Highlights(1) Kemess East– 2017 PEA Highlights(1) Mine Type Underground Block Cave Mine Type Underground Panel Cave Avg. LOM Gold Production (koz) 106 Avg. LOM Gold Production (koz) 80 Avg. LOM By-Product AISC (US$/oz)(2) $244
Slide 18: Greenstone: One of Canada's Largest Undeveloped Open Pit Gold Mines
Greenstone: One of Canada’s Largest Undeveloped Open Pit Gold Mines Cornerstone Canadian Development Project Ontario: Top Tier Mining Jurisdiction 50:50 development partnership with Premier Gold Greenstone Development Project Open pit reserves(1) (100%) 4.7Moz Au @ 1.02 g/t Location: Ontario, Canada
Slide 19: Potential Upside Optionality - Molybdenum
Centerra: Potential Upside Optionality - Molybdenum Molybdenum Price Movement Thompson Creek Mine ● Located in Idaho, is the world’s fourth largest open-pit primary molybdenum mine ● Operations began in 1983, using conventional open-pit mining and a on- site 25,500 tpd mill ● In December, 2014 place
Slide 20: Appendix
Appendix TSX: CG www.centerragold.com
Slide 21: 2019 Exploration - Map of Projects
Centerra: 2019 Exploration - Map of Projects 2016A 2017A 2018A 2019E Exploration spending ($MM) $11 $13 $21 $30 May 2019 21
Slide 22: 2018 Corporate Update
Centerra: 2018 Corporate Update 2018 YTD Cash Flow (US$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 23: Q1-2019 Operating Highlights
Q1-2019 Operating Highlights Q1 2019 gold production - Kumtor 150,308 ounces, Mount Milligan 33,255 ounces Q1 2019 copper production - Mount Milligan 11,440,000 pounds Mount Milligan throughput 32,000 tonnes per operating day (27,000 tonnes per calendar day) On track to produce 55,000 tonnes per cal
Slide 24: Q1-2019 Financial Highlights
Q1-2019 Financial Highlights1 Quarter Ended Quarter Ended (in thousands, except ounces, per share amounts, and average realized price2) March 31, 2019 March 31, 2018 Revenue $334,040 $235,399 Total gold ounces sold 196,451 132,432 Total copper pounds sold (000’s) 12,522 4,506 Operating cash flow bef
Slide 25: Q1-2019 Other Financial Highlights
Q1-2019 Other Financial Highlights Gold Sales of 196,451 ounces / Copper Sales of 12.5 million pounds in Q1 2019 Q1 2019 AISC1 of $669 per ounce (Kumtor $553/oz. and Mount Milligan $842/oz.) Q1 2019 Cash Provided Operations Before Working Capital Changes1 $114MM ($0.39 per share) Q1 2019 Cash Provid
Slide 26: Mount Milligan: Short & Medium-term Water Sources
Mount Milligan: Short & Medium-term Water Sources May 2019 26
Slide 27: 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 28: 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 $244/oz on a by-product basis • Environmental approvals and IBA received • Received Mines Act Permit (construction permit) • Receive
Slide 29: 2019 Guidance
Centerra: 2019 Guidance 2019 Production Guidance Units Kumtor Mount Milligan(1) Centerra Gold Total Gold Payable Production(2) (Koz) 535 – 565 155 – 175 690 – 740 Copper Total Copper Payable Production(3) (Mlb) – 65 – 75 65 – 75 2019 All-in Sustaining Unit Costs (5) Kumtor Mount Milligan(1) Centerra
Slide 30: 2019 Guidance Sensitivities
Centerra: 2019 Guidance Sensitivities Impact on Impact on ($ millions) ($ per ounce sold) Change Net Earnings AISC(3) on by-product Costs Revenues Cash flows (after tax) basis Gold price(1) $50/oz 4.8 – 5.5 29.5 – 31.0 24.4 – 25.7 24.4 – 25.7 2–3 Copper price(1) 10% 4.7 – 5.3 17.0 – 19.0 12.5 – 13.5
Slide 31: 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 32: Investor Relations Highlights
Centerra: Investor Relations Highlights Research Coverage Top Ten (10) Institutional Shareholders Brokerage Firms Rating Target Institution/Firm Mar.31-2019 1. BofA Merrill Lynch Neutral C$8.00 1. Van Eck Associates 10.62% 2. Canaccord Genuity Buy C$9.00 3. CIBC World Markets Hold C$9.00 2. Blackroc
Slide 33: 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 34: TSX: CG www.centerragold.com
TSX: CG www.centerragold.com