Centerra Gold Inc. · TSX:CG
Centerra Gold — Investor Presentation (January 2022)
30 slides from Centerra Gold's investor presentation, January 2022
Slide 1: Deliver on Results - Investor Presentation
Mount Milligan DELIVER ON RESULTS Investor Presentation Öksüt January 2022 TSX: CG NYSE: CGAU www.centerragold.com
Slide 2: Caution Regarding Forward-Looking Information
Caution Regarding Forward-Looking Information Information contained in this document which is not a statement of historical fact, and the documents incorporated by reference herein, may be “forward-looking information” for the purposes of Canadian securities laws and within the meaning of the United
Slide 3: Centerra: Built For Success
Centerra: Built For Success Q4 and FY 2021 Corporate Highlights (Continuing Operations Basis) Retained Earnings Profile (US$) Q4 & FY 2021 gold production of 91,197 and 308,141 ounces, 2,000 2,000 respectively and copper production of 17.0M and 73.3M pounds, respectively. 1,800 1,600 1,600 2021 Gold
Slide 4: Kyrgyz Republic Developments
Kyrgyz Republic Developments ➢ Kumtor Seized by Kyrgyz Government May 15, 2021 Under Pretext of Groundless Corruption, Tax, Environmental and Other Claims ➢ KR Government appointed an external manager for Kumtor on May 17, 2021, which is a clear violation of the 2009 Restated Project Agreements, Com
Slide 5: Q3 2021 ESG Update
Centerra: Q3 – 2021 ESG Update ESG Highlights Continued focus on safety leadership training/awareness. Maintained and strengthened our “Social Licence to Operate” at all operations with no interruptions for ~99 months. Completed our external assurance on our Scope 1 and Scope 2 greenhouse gas (GHG)
Slide 6: Q3 2021 Corporate Highlights
Centerra: Q3 – 2021 Corporate Highlights Operational Highlights Safety – Öksüt achieved two million work hours without a lost-time injury, Endako achieved eight years and the Thompson Creek Mine and Langeloth Facility each achieved one year without a lost-time injury All sites maintaining proactive
Slide 7: Q3 2021 Corporate Highlights
Centerra: Q3 – 2021 Corporate Highlights Financial Highlights Q3 2021 Net Earnings of $27.6MM or $0.09 per share (basic) Adjusted Net Earnings1 of $35.7MM or $0.12 per share (basic) Q3 2021 Cash Provided by Operating Activities of $62.4MM or $0.21 per share, (Mount Milligan $43.3MM, Öksüt $52.1MM) Q
Slide 8: Cash Flow
Centerra: Cash Flow Cash Flow From Operations including Kumtor 3,4 (US$MM’s) Consolidated Free Cash Flow including Kumtor 3,4 (US$MM’s) 2000 1806 1760 500 2000 1806 400 1760 1800 1620 1627 1571 450 1800 1620 1627 1487 1542 1571 1542 350 1600 1403 359 400 1600 1487 1374 1374 1403 281 1400 1237 350 14
Slide 9: Operational Results vs Guidance 2015-2021
Centerra: Operational Results vs Guidance 2015-2021 ▪ Centerra has a strong track record of beating gold production guidance Operating Statistics vs. Guidance (mid-point) (Koz Au) 900 800 824 795 785 783 780 748 700 730 685 Gold Production (Koz) 600 500 537 540 551 520 400 300 308 290 1 200 100 1 2
Slide 10: Industry FCF Generation
Centerra: Industry FCF Generation 9-Months ending September 30, 2021 FCF(a) (US$ MM) 1 Net Debt / (Cash) Balance as of September 30, 2021 (US$ MM) Source: Corporate disclosure, equity research and Capital IQ as of market close November 12, 2021 Note a: FCF calculated as net cash flow from operations
Slide 11: Updated 2022 Outlook
Centerra: Updated 2022 Outlook Mount Units Milligan(1) Öksüt Consolidated(2) Production Unstreamed gold production 123-136 210-240 333-376 Streamed gold production 67-74 - 67-74 Total gold production(3) (Koz) 190-210 210-240 400-450 Unstreamed copper production 57-65 - 57-65 Streamed popper producti
Slide 12: Compelling Valuation
Centerra: Compelling Valuation P / NAVPS (x) P / 2021E CFPS (x) P / 2021E EPS (x) Kirkland Lake 1.21x Kirkland Lake 8.6x Alamos 16.4x Endeavour 1.05x Alamos 7.2x Kinross 15.0x Centamin 0.93x Kinross 6.3x Eldorado 13.5x B2Gold 0.88x B2Gold 6.0x Yamana 13.3x Centerra 0.81x Endeavour 5.6x Kirkland Lake
Slide 13: Mount Milligan: Low-Cost Gold Copper Mine
Mount Milligan: Low-Cost Gold Copper Mine 2019 2020 2021 2022E Gold Production (koz) 183 162 196 190-210 Copper Production (Mlbs) 71 83 73 70-80 Production Costs ($/oz) $746 $744 $650-$700e $675-$725 All-In Sustaining Costs ($/oz)(1) $828 $541 $530-$580e $575-$625 All-In Costs ($/oz)(1) $849 $590 $5
Slide 14: Mount Milligan: 2022 Exploration
Mount Milligan: 2022 Exploration 2022 Exploration Plan #1-3 - final 2021 drilling results pending. 2. 3. 1. Test mineralization below 1. the 2020 ultimate pit in the MBX and 66 zones. 2. Test DWBX Zone/West Wall Breccia corridor. 3. Expand shallow mineralization at the Great Eastern Fault Zone. 5. 4
Slide 15: Öksüt: High Margin Gold Production
Öksüt: High Margin Gold Production 2020 2021 2022E Gold Production (koz) 106 112 210-240 Production Costs ($/oz) $356 $450-$500e $300-$350 All-In Sustaining Costs ($/oz) (1) $494 $680-$730e $425-$475 All-In Costs ($/oz) (1) $819 $740-$790e $450-$500 Sustaining Capital ($MM) $2 $15-25e $20-25 Öksüt G
Slide 16: Öksüt: 2022 Exploration
Öksüt: 2022 Exploration 2022 Exploration Plan 1. Expand near-surface Keltepe NW 2020 oxide gold 3c. Ultimate Pit 2. Keltepe N 2020 Ultimate Pit Keltepe 2020 mineralization around UltimatePit Keltepe and 1. Güneytepe pits 2. Expand near-surface oxide gold mineralization Keltepe N, NW and 3b. NNW pros
Slide 17: Potential Upside Optionality - Molybdenum
Centerra: Potential Upside Optionality - Molybdenum Molybdenum Price Movement Thompson Creek Mine ● Located in Idaho, is the world’s fourth largest open-pit primary molybdenum mine ● Operations began in 1983, using conventional open-pit mining and a on- site 25,500 tpd mill ● In December 2014 placed
Slide 18: Centerra: Built For Success
Centerra: Built For Success Q4 and FY 2021 Corporate Highlights (Continuing Operations Basis) Retained Earnings Profile (US$) Q4 & FY 2021 gold production of 91,197 and 308,141 ounces, 2,000 2,000 respectively and copper production of 17.0M and 73.3M pounds, respectively. 1,800 1,600 1,600 2021 Gold
Slide 19: Appendix
Mount Milligan DELIVER ON RESULTS Öksüt Appendix TSX: CG NYSE: CGAU www.centerragold.com
Slide 20: Committed to Responsible Gold Mining
Centerra: Committed to Responsible Gold Mining • Centerra is implementing the World Gold Council’s Responsible Gold Mining Principles (RGMP) across our operating sites. • RGMPs were designed to provide confidence to our investors and supply chain participants that our gold has been produced responsi
Slide 21: Hedging Programs
Centerra: Hedging Programs Canadian Dollar Hedging Diesel Hedging Program(1) Copper Hedging (1)(2) Program(1) Q4 2021 FY 2022 Q1 – Q3 2023 Hedge Rate Notional Derivative Q4 2021 2022 Q1 - Q3 2023 Q4 2021 2022 Q1 - Q3 2023 Total USD/CAD FX Collars $1.33/$1.39 $1.30/$1.37 $1.23/$1.29 $55.4 million $18
Slide 22: 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 20% Kirkland Lake 23% Kirkland Lake 21% Centamin 16% B2Gold 14% Centerra 13% Centerra 13% Centerra 14% Centamin 12% B2Gold 12% Centamin 11% B2Gol
Slide 23: 2021 Operations Key Focus
Centerra: 2021 Operations Key Focus ➢ Continue to Improve Safety Performance Company-wide ➢ Lowered Cost Guidance at Öksüt ➢ Mount Milligan Adequate Volumes of Stored Water to Run at Full Capacity for the Year ➢ Staged Flotation Reactors Installation on Track at Mount Milligan Aimed at Improving Rec
Slide 24: Kemess: C$1 Billion of Infrastructure
Kemess: C$1Billion of Infrastructure Fly-in, Fly-out Work Camp Permitted Open Pit Tailings Storage Facility Metallurgical Facility Kemess Proximity to Mount Milligan Kwadacha Kemess Project (Fort Ware) Kemess Omineca Resource Project Tsay Keh Access Road Forest Service Road 0 100 200 Kilometres Daws
Slide 25: Kemess: Large, Low-Cost Production
Kemess: Large, Low-Cost Production Kemess Underground – 2016 Feasibility Highlights(1) Kemess East– 2017 PEA Highlights(1) Mine Type Underground Block Cave Mine Type Underground Panel Cave Avg. LOM Gold Production (koz) 106 Avg. LOM Gold Production (koz) 80 Avg. LOM By-Product AISC (US$/oz)(2) $244
Slide 26: 2022 Guidance Sensitivities and Assumptions
Centerra: 2022 Guidance Sensitivities and Assumptions Impact on(1) Impact on(1) ($ millions) ($ per ounce sold) Production Capital Net Earnings AISC on by-product Revenues Cash flows Costs & Taxes Costs (after tax) basis per ounceNG Gold price $50/oz 1.5 - 4.0 - 16.5 – 19.0 12.5 – 17.5 12.5 – 17.5 4
Slide 27: 2021 Exploration - Map of Projects
Centerra: 2021 Exploration - Map of Projects 2016A 2017A 2018A 2019A 2020A 2021E 2022E Exploration spending ($MM) $11 $13 $21 $28 $39 $30 $35-45 27 January 2022
Slide 28: Investor Relations Highlights
Centerra: Investor Relations Highlights Research Analyst Coverage Top Ten (10) Institutional Shareholders Brokerage Firms Analyst Institution/Firm Sept. 30-2021 1. Bank of America Michael Jalonen 1. Blackrock 10.84% 2. Canaccord Genuity Dalton Baretto 2. Van Eck Associates 8.59% 3. CIBC World Market
Slide 29: Directors
Centerra: Directors Board of Directors Background MICHAEL S. PARRETT Chair 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 Direc
Slide 30: Deliver on Results
Mount Milligan DELIVER ON RESULTS Investor Presentation Öksüt January 2022 TSX: CG NYSE: CGAU www.centerragold.com