Centerra Gold Inc. · TSX:CG
Centerra Gold — Investor Presentation (April 2020)
37 slides from Centerra Gold's investor presentation, April 2020
Slide 1: Built For Success – Investor Presentation April 2020
Kumtor BUILT FOR SUCCESS Mount Milligan Investor Presentation April 2020 TSX: CG Öksüt 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 2019 Cash Flow (US$MM’s) 600 2019 gold production 783koz, copper production 71Mlbs, at 329 111 500 AISC1 of $708 per ounce sold 400 63 87 300 Öksüt Mine first gold pour January 31, 2020 177 200 152 100 43 2020 estimated gold production up to 820koz, c
Slide 4: 2019 ESG Operations Update
Centerra: 2019 ESG Operations Update Highlights Continued focus on safety leadership training/awareness Maintained and strengthened our “Social Licence to Operate” at all operations with no interruptions for˜78 months. No reportable environmental incidents. B.C. and Kumtor successfully completed int
Slide 5: Committed to Responsible Gold Mining
Centerra: Committed to Responsible Gold Mining • Centerra is implementing the World Gold Council’s Responsible Gold Mining Principles (RGMP) across our operations • RGMP was designed to provide confidence to our investors and supply chain participants that our gold has been produced responsibly • In
Slide 6: Operational Results vs Guidance 2013-2019
Centerra: Operational Results vs Guidance 2013-2019 Centerra has a strong track record of beating both production and AISC2 guidance Operating Statistics vs. Guidance (mid-point) (koz Au) 850 900 878 863 851 800 850 795 852 785 783 750 805 818 748 800 814 730 700 691 744 685 750 728 Gold productio
Slide 7: 2019 Corporate Update
Centerra: 2019 Corporate Update 2019 Cash Flow (US$MM’s) Liquidity Profile (US$MM’s) 600 500 329 111 500 400 63 87 US$615MM 300 177 200 152 43 72 100 43 0 1 1 2 3 3 2018 YE Cash Kumtor + 5 Debt KR Settlement Oksut Spend Dev Projects, 2019 YE Cash Cash Reserves Corporate Credit Facility Oksut Credit
Slide 8: 2020 Year-to-Date Highlights
Centerra: 2020 Year-to-Date Highlights Improvement in Safety Performance is our First Priority Crisis Management Response Plan Activated in Response to COVID-19 Preventative Measures Active, Work Remotely Where Possible, Restricted Access to Mine Sites 2020 Production Guidance1 of 780,000 Ounces
Slide 9: AISC Comparison
Centerra: AISC1 Comparison 2019 AISC1 (US$/oz) YoY Change in AISC1 (%) Kirkland Lake $564 Kirkland Lake (18%) Alacer $713 Alamos (4%) Centerra $737 Centerra (2%) Endeavour $818 SSR Mining (0%) B2Gold $862 Yamana 0% Centamin $943 Alacer 1% Alamos $951 Kinross 2% Kinross $983 Eldorado 4% Yamana $999 I
Slide 10: Low-Cost Asset Base
Centerra: Low-Cost Asset Base 2020 estimated gold production up to 820koz, copper production up to 90Mlbs, AISC1 of $820 to $870 per ounce Au Positioned to generate meaningful cash flow through the price cycles AISC1 Industry Curve (By-P roduct Basis) $2,500 25% 50% 75% 100% $2,250 $2,000 Center
Slide 11: Compelling Valuation
Centerra: Compelling Valuation P / NAVPS (x) P / 2020E CFPS (x) P / 2020E EPS (x) Kirkland Lake 1.12x Alamos 6.9x Yamana 18.6x B2Gold 1.03x Kirkland Lake 6.6x Alamos 18.2x Centamin 0.96x SSR Mining 5.9x OceanaGold 13.4x Yamana 0.90x Centamin 5.3x IAMGOLD 13.4x Endeavour 0.84x B2Gold 4.4x Centamin 11
Slide 12: Leading Capital Efficiency and Profitability
Centerra: Leading Capital Efficiency and Profitability L3Y Return on Invested Capital (%) L3Y Return on Capital (%) L3Y Return on Equity (%) Kirkland Lake 21% Kirkland Lake 24% Kirkland Lake 17% Centamin 14% Centamin 14% Centerra 8% Alacer 10% Alacer 9% OceanaGold 8% Centerra 8% Centerra 8% Alacer 8
Slide 13: Kumtor: World Class Open Pit Gold Mine
Kumtor: World Class Open Pit Gold Mine 2017 2018 2019 2020E Gold Production (koz) 563 535 600 520-560 All-In Sustaining Costs ($/oz) (1) $698 $694 $598 $750-$800 Sustaining Capital ($MM) $61 $44 $39 $49 Growth Capital ($MM) $18 $17 $16 $18 Reserves(2) (Moz) 3.2 Au Grade (g/t) 2.31 Resources M&I(2) (
Slide 14: Kumtor: Exploration
Kumtor: Exploration 2019 drilling focused on the Hockey Stick Zone and continued to confirm gold mineralization outside the ultimate open pit Hockey Stick Zone Boris Kotlyar, a Member with the American Institute of Professional Geologists, is Centerra’s qualified person for the purpose of National I
Slide 15: Kumtor: Mineral Resources
Kumtor: Mineral Resources1 Exclusive of Reserves (Year-over-Year Change) Kumtor Open Pit Tonnes Ounces Kumtor Open Pit Tonnes Ounces Au (g/t) Au (g/t) 2018 Resources (kt) (koz) 2019 Resources (kt) (koz) Measured – SB & Stockwork 17,853 3.03 1,740 Measured – SB & Stockwork 21,308 4.10 2,807 Indicated
Slide 16: Mount Milligan: Low Cost Gold Copper Mine
Mount Milligan: Low Cost Gold Copper Mine 2017 2018 2019 2020E Gold Production (koz) 223 195 183 140-160 Copper Production (Mlbs) 54 47 71 80-90 All-In Sustaining Costs $505 $764 $828 $885-$935 (US$/oz)(1) Sustaining Capital ($MM) $30 $43 $36 $55 Gold Copper 35% @ 18.75% @ 15% of Royal Gold Stream U
Slide 17: Mount Milligan: Life-of-Mine Plan
Mount Milligan: Life-of-Mine Plan Cash Flow Summary1 1. Effective date December 31, 2019, see NI 43-101 Technical Report on the Mount Milligan Mine dated March 26, 2020 and filed on SEDAR. April 2020 17
Slide 18: Öksüt: Funded High Margin Gold Production
Öksüt: Funded High Margin Gold Production Project Highlights Mine Type Open Pit, Heap Leach Heap Leach Stacking Rate 11,000 tpd Life of Mine Strip Ratio (w:o) 2:1 Avg. LOM Annual Production 110koz Au 2020e Gold Production (koz) 80-100 Öksüt Gold 2020e All-in Sustaining Costs ($/oz)(1) $650-$700 Proj
Slide 19: Öksüt: 2019 Construction
Öksüt: 2019 Construction Admin Offices and Crushing Area Keltepe Pit Mining Guneytepe Open Pit Open Pit Mining Heap Leach Pad 1A+1B ADR Plant April 2020 19
Slide 20: Kemess: C$1Billion of Infrastructure
Kemess: C$1Billion of Infrastructure Fly-in, Fly-out Work Camp Permitted Open Pit Tailings Storage Facility Metallurgical Facility Kemess Proximity to Mount Milligan Kwadacha Kemess Project (Fort Ware) Kemess Omineca Resource Project Tsay Keh Access Road Forest Service Road 0 100 200 Kilometres Daws
Slide 21: Kemess: Large, Low-Cost Production
Kemess: Large, Low-Cost Production Kemess Underground – 2016 Feasibility Highlights(1) Kemess East– 2017 PEA Highlights(1) Mine Type Underground Block Cave Mine Type Underground Panel Cave Avg. LOM Gold Production (koz) 106 Avg. LOM Gold Production (koz) 80 Avg. LOM By-Product AISC (US$/oz)(2) $244
Slide 22: 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 23: 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 24: Appendix
Kumtor BUILT FOR SUCCESS Mount Milligan Appendix TSX: CG Öksüt www.centerragold.com
Slide 25: 2020 Guidance
Centerra: 2020 Guidance6 Mount 2020 Production Guidance Units Kumtor Öksüt Centerra Milligan(1) Gold Total Gold Payable Production(2) (Koz) 520-560 140-160 80-100 740-820 Copper Total Copper Payable Production(2) (Mlb) - 80-90 - 80-90 2020 All-in Sustaining Unit Costs Units Kumtor Mount Milligan(1)
Slide 26: 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 114,753 0.41 1,525 76,275 0.3
Slide 27: 2019 Corporate Highlights
Centerra: 2019 Corporate Highlights Safety – 2019 performance overshadowed by two tragic safety incidents at Kumtor in December 2019 and February 2020 Completed KR Strategic Agreement August 26, 2019 Construction of Öksüt Project Approximately 89% Complete Exceeded 2019 Gold Production Guidanc
Slide 28: 2019 Financial Highlights
Centerra: 2019 Financial Highlights1 Quarter Quarter Ended Ended Year Ended Year Ended (in thousands, except ounces, per share amounts, and Dec.31, Dec.31, Dec.31, Dec.31, average realized price2) 2019 2018 2019 2018 Revenue $312,503 $391,521 $1,375,328 $1,129,336 Total gold ounces sold 169,892 269,
Slide 29: 2020 Exploration - Map of Projects
Centerra: 2020 Exploration - Map of Projects 2016A 2017A 2018A 2019A 2020E Exploration spending ($MM) $11 $13 $21 $28 $50 29 April 2020
Slide 30: Mount Milligan: 2019 Exploration
Mount Milligan: 2019 Exploration North NPI (Resource) • 69 drill holes completed (25,961 m) • 6 zones (South Boundary, Southern Star, Saddle, GEF, MBX/WBX, Oliver) Brownfield • 26 drill holes completed (12,137 m) • 5 zones (North Slope, Goldmark, Goldmark- Oliver, Saddle West, South Boundary) Greenf
Slide 31: Öksüt: Exploration Targets
Öksüt: Exploration Targets Western Asia, Europe and West Africa Keltepe NW-Keltepe N Oxide Au & Supergene Cu Target Boztepe & Boztepe West Porphyry Cu/Au Target Keltepe Pit Büyüktepe Oxide Au Target Keltepe & Güneytepe Oxide Au Resource & Supergene Cu Target Güneytepe Pit Yelibelen Oxide Au Target M
Slide 32: Mount Milligan: Short & Medium-term Water Sources
Mount Milligan: Short & Medium-term Water Sources April 2020 32
Slide 33: 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 34: 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 35: Investor Relations Highlights
Centerra: Investor Relations Highlights Research Coverage Top Ten (10) Institutional Shareholders Brokerage Firms Rating Target Institution/Firm Dec. 31-2019 1. BofA Merrill Lynch Buy C$10.50 1. Van Eck Associates 9.92% 2. Canaccord Genuity Buy C$13.50 3. CIBC World Markets Hold C$12.25 2. Blackrock
Slide 36: 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 37: Built For Success
Kumtor BUILT FOR SUCCESS Mount Milligan Investor Presentation April 2020 TSX: CG Öksüt www.centerragold.com