Centerra Gold Inc. · TSX:CG
Centerra Gold — Q1 2006 Earnings Presentation
21 slides from Centerra Gold's earnings presentation, May 1, 2006
Slide 1: Q1 2006 Conference Call
May 1, 2006 Q1 2006 Conference Call 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-Looking 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 t
Slide 3: Speakers
Speakers ¾ Len Homeniuk President and Chief Executive Officer ¾ Ian Atkinson Vice President, Exploration ¾ George Burns Vice President and Chief Operating Officer ¾ David Petroff Executive Vice President and Chief Financial Officer May 1, 2006 Q1 2006 Results Conference Call 3
Slide 4: Speaker: Len Homeniuk
Speaker ¾ Len Homeniuk President and Chief Executive Officer May 1, 2006 Q1 2006 Results Conference Call 4
Slide 5: Q1 2006 Results Highlights
Q1 2006 Results Highlights ¾ Continued exploration success – reserves announced at Gatsuurt; positive results from Kumtor ¾ Production down 8% on lower grade at Kumtor; Revenues flat at $93 million ¾ Net earnings increased 23% to $18 million or $0.25 per share ¾ Cash from operations $32 million; cas
Slide 6: Speaker: Ian Atkinson
Speaker ¾ Ian Atkinson Vice President, Exploration May 1, 2006 Q1 2006 Results Conference Call 6
Slide 7: Exploration Activities - Kumtor
Exploration Activities Kumtor ¾ Seven drill holes completed in Q1 2006 to test south end of pit ¾ Extended 40 metres to the south ¾ Intercepts at grade range 3.9 to 11.2 g/t gold over 13.7 to 71.0 metre cores ¾ Now delineated over 320 metre strike length and remains open along strike to the south an
Slide 8: Exploration Activities - Gatsuurt
Exploration Activities Gatsuurt ¾ Updated feasibility study completed including open pit in Main Zone and Central Zone ¾ Probable reserves identified – 9M tonnes at 3.4 g/t gold for 986,000 ounces of contained gold ¾ Planned exploration expenditures of $1.0 million in 2006 Note: Please refer to Cent
Slide 9: Reserves
Reserves Contained ounces at December 31, 2005 (100% basis) ¾ Kumtor – 5.0 M ounces ¾ Boroo – 1.2 M ounces ¾ Gatsuurt – 1.0 M ounces Reserves added since IPO ¾ Kumtor – 3.1 M ounces ¾ Boroo – 0.6 M ounces ¾ Gatsuurt – 1.0 M ounces May 1, 2006 Q1 2006 Results Conference Call 9
Slide 10: Speaker: George Burns
Speaker ¾ George Burns Vice President and Chief Operating Officer May 1, 2006 Q1 2006 Results Conference Call 10
Slide 11: Operations Review - Kumtor
Operations Review - Kumtor ¾ 88,848 ounces poured in Q1 2006 ¾ Average mill head grade vs Q1 2005 ¾ 2.36 g/t gold vs 3.68 g/t ¾ Cash cost of $427 per ounce ¾ Good environmental performance in the quarter; May 1, 2006 Q1 2006 Results Conference Call 11
Slide 12: Operations Review - Boroo
Operations Review - Boroo ¾ 63,698 ounces poured in Q1 2006 ¾ Average mill head grade vs Q1 2005 ¾ 3.87 g/t gold vs 4.98 g/t ¾ Cash cost of $215 per ounce ¾ Good safety and environmental performance May 1, 2006 Q1 2006 Results Conference Call 12
Slide 13: Gatsuurt
Gatsuurt ¾ Optimize by adding a bio-oxidation circuit to Boroo facility ¾ Extends life of Boroo to 2016 ¾ Estimate to realize the production at Gatsuurt is about $75 million May 1, 2006 Q1 2006 Results Conference Call 13
Slide 14: 2006 Outlook – Production & Cash Cost
2006 Outlook – Production & Cash Cost 100% Basis 2006 Forecast Ounces Poured (ooo oz gold) Kumtor 410 - 420 Boroo 270 - 275 Centerra Consolidated 680 - 695 Total Cash Cost per Ounce (USD) Kumtor $370 - $380 Boroo $210 - $215 Centerra Consolidated $305 - $315 May 1, 2006 Q1 2006 Results Conference Ca
Slide 15: Speaker: David Petroff
Speaker ¾ David Petroff Executive Vice President and Chief Financial Officer May 1, 2006 Q1 2006 Results Conference Call 15
Slide 16: Income Statement – Q1 2006 vs. Q1 2005
Income Statement – Q1 2006 vs. Q1 2005 US$ millions Q1 2006 Q1 2005 Revenue 93 92 Cost of sales 54 52 Depreciation, depletion & amortization 10 16 Accretion and reclamation (2) 0 Exploration & business development 7 5 Interest and other (2) (0) Administration 6 4 Income tax expense 0 2 Non-controlli
Slide 17: Cash
Cash US$ millions Mar 31/06 Mar 31/05 Cashflow from Operations 32 37 Cash used in Investing Activities (11) (4) Cash from Financing - - Increase/Decrease in Cash 21 32 Cash at Beginning of Quarter 202 153 Cash Balance at end of Quarter 223 185 May 1, 2006 Q1 2006 Results Conference Call 17
Slide 18: Sensitivity to the Gold Price
Sensitivity to the Gold Price US$ millions Q2/Q3/Q4 2006 Effect of $25 change in gold price: Revenues $14 Earnings $12 Cash flow $13 May 1, 2006 Q1 2006 Results Conference Call 18
Slide 19: Speaker: Len Homeniuk
Speaker ¾ Len Homeniuk President & Chief Executive Officer May 1, 2006 Q1 2006 Results Conference Call 19
Slide 20: Strategic Priorities for 2006
Strategic Priorities for 2006 ¾ Develop new reserves at Kumtor, Boroo, Gatsuurt and REN ¾ Explore growth opportunities in Central Asia, FSU and in other emerging markets May 1, 2006 Q1 2006 Results Conference Call 20
Slide 21: Question Period
Question Period May 1, 2006 Q1 2006 Results Conference Call 21