Centerra Gold Inc. · TSX:CG
Centerra Gold — Investor Presentation (November 2019)
33 slides from Centerra Gold's investor presentation, Nov 15, 2019
Slide 1: Investor Presentation November 15, 2019
Investor Presentation November 15, 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: Q3-2019 ESG Operations Update
Centerra: Q3-2019 ESG Operations Update Highlights Operations achieved lost time injury free milestones Continued focus on safety leadership training/awareness Maintained and strengthened our “Social Licence to Operate” at all operations with no interruptions for ~75 months No reportable environment
Slide 5: Committed to Responsible Gold Mining
Centerra: Committed to Responsible Gold Mining • Centerra will be implementing the World Gold Council’s Responsible Gold Mining Principles (RGMP) across our operations • RGMP was designed to provide confidence to our investors and supply chain participants that our gold has been produced responsibly
Slide 6: Q3-2019 Corporate Highlights
Centerra: Q3-2019 Corporate Highlights Safety – Öksüt and Mount Milligan Achieved 1 million Work Hours LTI Free, and Kumtor Achieved 1-year and Endako Achieved 6-years Without a Lost Time Injury Completed KR Strategic Agreement August 26, 2019 (Cash Payment of $62.6MM) Construction of Öksüt Pr
Slide 7: Delivering Results: Operations vs. Guidance
Centerra: Delivering Results Operations vs. Guidance Centerra has a strong track record of beating both production and AISC2 guidance Operating Statistics vs. Guidance (mid-point) (koz Au) 795 785 748 730 715 691 685 660 625 621 Guidance (mid-point) 537 540 551 520 Revised Guidance (mid-point) Act
Slide 8: Q3-2019 Corporate Update
Centerra: Q3-2019 Corporate Update YTD 2019 Cash Flow (US$MM’s) Liquidity Profile Sept. 30, 2019 (US$MM’s) 450 249 90 400 500 350 63 300 58 250 US$655MM 200 109 152 150 100 81 81 74 50 0 1 1 2018 YE Cash Kumtor + 5 Debt KR Settlement Oksut Spend Dev Projects, Q3 2019 Cash 2 3 3 MTM Adj FCF Repayment
Slide 9: AISC Comparison
Centerra: AISC1 Comparison H1 2019 AISC1 (US$/oz) YoY Change in AISC1 (%) Kirkland Lake $597 Centerra (27%) Alacer $692 Kirkland Lake (25%) Centerra $705 Alacer (11%) Endeavour $826 New Gold (10%) B2Gold $882 Alamos (3%) Kinross $925 Yamana (2%) Yamana $936 SSR Mining (1%) Centamin $940 Kinross (0%)
Slide 10: 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 11: Compelling Valuation
Centerra: Compelling Valuation P / NAVPS (x) P / 2019E CFPS (x) P / 2019E Earnings (x) Kirkland Lake 2.04x Centamin 11.4x Eldorado 49.2x B2Gold 1.23x Kirkland Lake 11.3x Yamana 34.9x Yamana 1.17x SSR Mining 10.3x Endeavour 30.7x SSR Mining 1.17x Coeur 9.7x Detour 29.5x Centamin 1.12x Detour 8.4x End
Slide 12: 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 18% Kirkland Lake 20% Kirkland Lake 21% Centamin 13% Centamin 13% Centerra 10% Centerra 9% Centerra 9% OceanaGold 10% OceanaGold 9% OceanaGold 8%
Slide 13: Kumtor: World Class Open Pit Gold Mine
Kumtor: World Class Open Pit Gold Mine 2019E 2016 2017 2018 Revised Guidance Gold Production (koz) 551 563 535 575-590 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 Reserves(2) (Moz) 4.0 Au Grade (g/t)
Slide 14: 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. November 2019 14
Slide 15: 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 $45 Gold Copper 35% @ 18.75% @ 15%
Slide 16: Öksüt: 2019 Construction Update
Öksüt: 2019 Construction Update Admin Offices and Crushing Area Keltepe Pit Mining Heap Leach Pads 1A and 1B Heap Leach Pad Piping Heap Leach Pad 1A+1B Overliner ADR Plant November 2019 16
Slide 17: Öksüt: Funded High Margin Gold Production
Öksüt: Funded High Margin Gold Production Project Highlights Mine Type Open Pit, Heap Leach Avg. LOM Annual Production 110koz Au Avg. LOM AISC(1) (US$/oz) $490 Development Capex (US$MM) $200 P&P Reserves(2)(Moz) 1.3 Öksüt Gold Au grade (g/t)(2) 1.4 Project Life of Mine Strip Ratio (w:o) 2:1 Construc
Slide 18: Kemess: C$1Billion of Infrastructure
Kemess: C$1Billion of Infrastructure Fly-in, Fly-out Work Camp Permitted Open Pit Tailings Storage Facility Metallurgical Facility Kemess Proximity to Mount Milligan Kwadacha Kemess Project (Fort Ware) Kemess Omineca Resource Project Tsay Keh Access Road Forest Service Road 0 100 200 Kilometres Daws
Slide 19: Kemess: Large, Low-Cost Production
Kemess: Large, Low-Cost Production Kemess Underground – 2016 Feasibility Highlights(1) Kemess East– 2017 PEA Highlights(1) Mine Type Underground Block Cave Mine Type Underground Panel Cave Avg. LOM Gold Production (koz) 106 Avg. LOM Gold Production (koz) 80 Avg. LOM By-Product AISC (US$/oz)(2) $244
Slide 20: Greenstone: One of Canada's Largest Undeveloped Open Pit Gold Mines
Greenstone: One of Canada’s Largest Undeveloped Open Pit Gold Mines Cornerstone Canadian Development Project Ontario: Top Tier Mining Jurisdiction 50:50 development partnership with Premier Gold Greenstone Development Project Open pit reserves(1) 4.7Moz Au @ 1.02 g/t (100%) Location: Ontario, Canada
Slide 21: Potential Upside Optionality - Molybdenum
Centerra: Potential Upside Optionality - Molybdenum Molybdenum Price Movement Thompson Creek Mine ● Located in Idaho, is the world’s fourth largest open-pit primary 14.0 molybdenum mine 13.0 ● Operations began in 1983, using conventional open-pit mining and a on- 12.0 site 25,500 tpd mill 11.0 ● In
Slide 22: Appendix
Appendix TSX: CG www.centerragold.com
Slide 23: 2019 Exploration - Map of Projects
Centerra: 2019 Exploration - Map of Projects 2016A 2017A 2018A 2019E Exploration spending ($MM) $11 $13 $21 $30 November 2019 23
Slide 24: 2019 Production, AISC, and Other Guidance
Centerra: 2019 Production, AISC1, and Other Guidance3 September 2019 FY 2019 FY 2019 Consolidated YTD Actuals New Guidance Prior Guidance Gold Production in Koz 589 Koz 730 - 765 Koz 705 - 750 Koz Kumtor 452 Koz 575 - 590 Koz 550 - 575 Koz MTM 137 Koz 155 - 175 Koz 155 - 175 Koz Copper Production in
Slide 25: 2019 Capex and Depreciation Guidance
Centerra: 2019 Capex and Depreciation Guidance1 Sept. 2019 FY 2019 FY 2019 (US $MM) YTD Actuals New Guidance Prior Guidance Total Capital, excluding capitalized stripping $172 $260 $275 Sustaining Capex 62 100 100 Kumtor 31 45 45 Mount Milligan 27 45 45 Others (Thompson Creek Mine, Endako Mine (75%)
Slide 26: Q3-2019 Operating Highlights
Centerra: Q3-2019 Operating Highlights Significant safety milestones achieved at the various operating sites Q3 2019 gold production - Kumtor 150,305 ounces, Mount Milligan 55,355 ounces Q3 2019 copper production - Mount Milligan 21,229,000 pounds Mount Milligan throughput 55,727 tonnes per calendar
Slide 27: Q3-2019 Financial Highlights
Centerra: Q3-2019 Financial Highlights1 Quarter Ended Quarter Ended (in thousands, except ounces, per share amounts, and average realized price2) Sept.30, 2019 Sept.30, 2018 Revenue $388,276 $259,099 Total gold ounces sold 216,023 166,716 Total copper pounds sold (000’s) 21,907 13,605 Cash provided
Slide 28: Mount Milligan: Short & Medium-term Water Sources
Mount Milligan: Short & Medium-term Water Sources November 2019 28
Slide 29: 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 30: 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 31: Investor Relations Highlights
Centerra: Investor Relations Highlights Research Coverage Top Ten (10) Institutional Shareholders Brokerage Firms Rating Target Institution/Firm Sept. 30-2019 1. BofA Merrill Lynch Buy C$14.50 1. Van Eck Associates 9.59% 2. Canaccord Genuity Buy C$12.50 3. CIBC World Markets Hold C$12.25 2. Blackroc
Slide 32: Directors
Centerra: Directors Board of Directors Background MICHAEL S. PARRETT Chairman Appointed Director of Centerra’s Board, May 2014 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 Di
Slide 33: TSX: CG www.centerragold.com
TSX: CG www.centerragold.com
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