Centerra Gold Inc. · TSX:CG
Centerra Gold — FY2017 Earnings Presentation
23 slides from Centerra Gold's earnings presentation, Feb 23, 2018
Slide 1: Q4 and Year-End 2017 Results Conference Call
Q4 and Year-End 2017 Results Conference Call February 23, 2018 TSX: CG www.centerragold.com
Slide 2: Senior Management Participants
Senior Management Participants Industry Background Experience SCOTT PERRY • Appointed Chief Executive Officer in November, 2015 President and Chief Executive +20 years • Former Chief Executive Officer at AuRico Gold Officer GORDON REID • Appointed Chief Operating Officer in January, 2013 +30 years C
Slide 3: Caution Regarding Forward-Looking Information
Caution Regarding Forward-Looking Information Information contained in this presentation 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 informati
Slide 4: Q4 and 2017 Year-end Results – Scott Perry, President & CEO
Q4 and 2017 Year-end Results – Feb. 23, 2018 Scott Perry - President & CEO TSX: CG www.centerragold.com
Slide 5: Q4 & 2017 Corporate Update
Q4 & 2017 Corporate Update Safety – “Work Safe : Home Safe” Program Rolled Out Across the Company Achieved 2017 Gold Production of 785,316 Ounces and Copper Production of 53.6 Million Pounds including 562,749 Ounces at Kumtor and 222,567 Ounces at Mount Milligan 2017 All-In Sustaining Cost (AISC
Slide 6: 2017 Corporate Update
2017 Corporate Update 2017: Internally Funded Business (US$MM’s) Liquidity Profile (US$MM’s) 800 188 209 700 600 127 98 500 409 417 $3353 400 US$630MM 300 $2952 200 100 0 1 1 2016 Cash Mt Milligan Kumtor FCF Debt Other 2017 Cash 3 FCF Repayments (Projects, 2 Cash Reserves Undrawn Credit Facilities G
Slide 7: Full Year vs Guidance Revision
Full Year vs Guidance Revision Mid-Point Gold Production (oz’s) Guidance Highlights 795,0001 785,000 755,000 750,000 Gold Production – 785,000 ounces exceeded 650,000 original guidance, within revised guidance range 550,000 450,000 All-In Sustaining Costs2 – Outperformed low-end of 350,000 revis
Slide 8: Lower-Cost Quartile Asset Base
Lower-Cost- Quartile Asset Base Based on industry-wide all-in sustaining costs, Centerra ranks in the bottom quartile of global gold producers AISC Industry Curve (By-Product Basis) 0% 25% 50% 75% 100% $2,500 $2,250 Kemess Centerra Gold Underground (US$688/oz Au) $2,000 (US$244/oz)(1) Öksüt Kumtor
Slide 9: Q4 and 2017 Operating Results – Gordon Reid, COO
Q4 and 2017 Operating Results – Feb. 23, 2018 Gordon Reid – COO TSX: CG www.centerragold.com
Slide 10: Operating Highlights
Operating Highlights 2017 gold production - Kumtor 562,749 ounces, Mount Milligan 222,567 ounces1 2017 copper production - Mount Milligan 53,596,000 pounds1 Kumtor received all the necessary permits and approvals for 2018 operations 2018 Company-wide guidance, 645,000 – 715,000 oz gold @ AISC3 $799
Slide 11: Mount Milligan - Update
Mount Milligan - Update Temporary suspension of mill processing operations late-December due to low water levels; Restarted milling at partial capacity Feb.5, 2018 ramping up to approximately 30,000 tpd; Expect to return to full capacity after spring melt; 2nd half 2018 expect to average 55,00
Slide 12: Mount Milligan Exploration Targets
Mount Milligan Exploration Targets February 2018 12
Slide 13: Centerra: Mineral Reserves - Proven & Probable
Centerra: Mineral Reserves - Proven & Probable1 Proven and Probable Gold Mineral Reserves Increase to 16.3 million ounces Proven and Probable Copper Mineral Reserves Increase to 2,568 million pounds Gold Mineral Reserves Proven Probable Total Proven and Probable Property Tonnes Grade Contained Tonne
Slide 14: Q4 and 2017 Financial Results – Darren Millman, CFO
Q4 and 2017 Financial Results – Feb. 23, 2018 Darren Millman – CFO TSX: CG www.centerragold.com
Slide 15: Financial Highlights
Financial Highlights1 Quarter Quarter Ended Ended Year Ended Year Ended Dec.31, Dec.31, Dec.31, Dec.31, (in thousands, except ounces, per share amounts, and average realized price4) 2017 2016 2017 2016 Revenue(2) $358,232 $305,723 $1,199,028 $757,723 Total gold ounces sold(3) 242,228 225,996 792,466
Slide 16: Other Financial Highlights
Other Financial Highlights Consolidated 2017 AISC1 of $688 per ounce; Outperform low-end of guidance by $17 per ounce Q4, 2017 AISC1 of $526 per ounce at Kumtor and $594 per ounce at Mount Milligan - Q4, 2017 sold all ounces which were temporarily held back at Kumtor in Q3, 2017 while Kyrgyzaltyn se
Slide 17: Other Financial Highlights
Other Financial Highlights Two High Cash Generating Mines - 2017 $562.9 Million cash provided from mine operating activities before changes in working capital1 and after capital expenditures of $311.6 Million (including $196.2 million from Kumtor and $115.4 million from Mount Milligan) Debt repaymen
Slide 18: Q4 and 2017 Year-end Results – Summary
Q4 and 2017 Year-end Results – Feb. 23, 2018 Summary – Scott Perry TSX: CG www.centerragold.com
Slide 19: Centerra: 2018 Guidance
Centerra: 2018 Guidance 2018 Production Guidance Units Kumtor Mount Milligan(1) Centerra Gold Total Gold Payable Production(2) (Koz) 450 – 500 195 – 215 645 – 715 Copper Total Copper Payable Production(3) (Mlb) – 47 – 52 47 – 52 2018 All-in Sustaining Unit Costs (5) Kumtor Mount Milligan(1) Centerra
Slide 20: Centerra: Built For Success
Centerra: Built For Success Corporate Highlights Consensus Asset NAV Breakdown Internationally Diversified Gold Producer Mongolia U.S. Australia 2% 2% 1% Turkey 9% Two Cornerstone Lower-Cost Quartile Assets 2017 Gold Production 785koz at AISC1 of $688 per ounce and 53.6M lbs of copper Canada Kyrgyz
Slide 21: Q & A Session and Appendix
Q4 and Year-end 2017 Results Feb. 23, 2018 Q & A Session and Appendix TSX: CG www.centerragold.com
Slide 22: Centerra: 2018 Guidance Sensitivities
Centerra: 2018 Guidance Sensitivities Impact on Impact on ($ millions) ($ per ounce sold) Change Net Earnings AISC(3) on by-product Costs Revenues Cash flows (after tax) basis Gold price(1) $50/oz 3.2 – 3.7 22.0 – 25.2 18.8 – 21.5 18.8 – 21.5 0-1 Copper price(1) 10% 1.9 – 2.3 6.6 – 7.9 4.7 – 5.6 4.7
Slide 23: TSX: CG www.centerragold.com
TSX: CG www.centerragold.com