Centerra Gold Inc. · TSX:CG
Centerra Gold — IPO Roadshow (August 2004)
27 slides from Centerra Gold's IPO roadshow presentation, Aug 17, 2004
Slide 1: Forward-Looking Statements
17-Aug-04 Forward-Looking Statements This This prospectus prospectus contains contains forward-looking forward-looking statements statements which which reflect reflect our our expectations expectations regarding regarding future future growth, growth, results results ofof operations operations (inc
Slide 2: Presenters
17-Aug-04 Presenters PAT JAMES CHAIRMAN LEN HOMENIUK PRESIDENT & CEO DAVID PETROFF EXECUTIVE VP & CFO Largest Western-based Gold Producer In Central Asia 6th Largest In North America 2
Slide 3: Pure Play Gold Company
17-Aug-04 Pure Play Gold Company Exceptional Producing Assets Solid Cash Flows & Earnings Attractive Expansion Prospects Debt-free Balance Sheet Proven Management Unhedged Growth Strategy Operating Portfolio OWNERSHIP KUMTOR BOROO 100% 79% 3
Slide 4: Operating and Exploration Portfolio
17-Aug-04 Operating Portfolio OWNERSHIP Produce 825,000 oz Gold (Share) Total Cash Cost $190 oz Deliver > $500 M Cash Flow @ $400 oz Exploration Portfolio OWNERSHIP REN GATSUURT 62% 73% 4
Slide 5: Growth Strategy
17-Aug-04 Centerra Gold Inc. Exploration Acquisition Development Growth Strategy Unlock Long-Term Potential Acquire, Develop & Operate Properties 5
Slide 6: Focus on Central Asia
17-Aug-04 Focus on Central Asia Altay Shan Gold Belt KYRGYZ MONGOLIA REPUBLIC China Gold Belt Tien Shan Gold Belt Gold deposit > 5 M oz 250km 0 500km Partnerships RUSSIA Irkutsk KAZAKHSTAN MONGOLIA Boroo ULAANBAATAR Kumtor Bishkek KYRGYZ REPUBLIC Beijing CHINA 200 200 00 200 200 400 400 kilometres k
Slide 7: Partnerships and Operations
17-Aug-04 Partnerships Cameco & Kyrgyzaltyn key shareholders Straighforward business environments Long-term investment stability agreements Operations Members of WTO Pro-mining Governments Stable Business Climate 7
Slide 8: Tools For Success Anywhere
17-Aug-04 Solid Track Record Kumtor Boroo Boroo Kumtor Tools For Success Anywhere Solid Track Record Tools For Success Anywhere 8
Slide 9: Competitive Advantages
17-Aug-04 Competitive Advantages Cash Flow Available for Growth Debt Free & Unhedged Practice Sustainable Development Our Time Has Arrived 9
Slide 10: Gold Opportunities Positioned For Growth
17-Aug-04 Gold Opportunities KYRGYZ REPUBLIC KYRGYZ REPUBLIC Positioned For Growth 10
Slide 11: High Return Investments
17-Aug-04 Proven Acquisition Capability KUMTOR BOROO REN REN Gatsuurt Gatsuurt High Return Investments Focus on Central Asia AVAILABLE UNDEVELOPED GOLD Eastern Europe 6% 2% Other Australia 4% Central Asia Africa 9% & FSU 40% North America 12% South & Central America 27% 11
Slide 12: Operations: Kumtor
17-Aug-04 Operations RUSSIA Irkutsk KAZAKHSTAN MONGOLIA ULAANBAATAR Bishkek KYRGYZ REPUBLIC Beijing CHINA 200 200 00 200 200 400 400 kilometres kilometres Operations KUMTOR Bishkek Kara Kul l syk-Ku Talas Balykchy Lake Is Kumtor Barskaun Kara-Say KYRGYZ REPUBLIC Osh Suluktu CHINA 200 200 00 200 200
Slide 13: Kumtor Operations and Reserves
17-Aug-04 Operations KUMTOR Total Production to YE 2003 4.4 M oz at $178/oz cost 2004E Production 650,000 oz at $200/oz cost Unit Mining Costs Reduced by 50% Proven & Probable Reserves 30.4 M t at 3.3 g/t (3.3 M oz total) Operations Reserve Sensitivity 5.0 M oz $450 3.3 M oz $325 Reserves 13
Slide 14: Boroo Operations
17-Aug-04 Operations BOROO RUSSIA Boroo ULAANBAATAR MONGOLIA Highways Rail CHINA 200 200 00 200 200 400 400 Beijing kilometres kilometres Operations BOROO Production Began March 2004 Exceeded Targets by 40% 2004E Production 220,000 oz at $152/oz cost Proven & Probable Reserves 10.2 M t at 3.5 g/t (1
Slide 15: Structure
17-Aug-04 Structure 100% Interest In Kumtor 3 Years Tax-Free Production at Boroo Hedge Remnant of < 4% of Reserves Removal of all Third-Party Debt Structure Strong Earnings & Cash Flow 15
Slide 16: Financial Review
17-Aug-04 Financial Review Net Mine Cash Flows* $900 $900 $300 $300 Au Au $800 $800 M) $400 $400 Au ($ M) Au $500 $500 Au Au Flow ($ $700 $700 Cash Flow $600 $600 Net Cash $500 $500 Cumulative Net $400 $400 Cumulative $300 $300 $200 $200 $100 $100 $0 $0 2004 2005 2006 2007 2008 2009 *Projected *Proj
Slide 17: Financial Review: Cost Curve and Use of Proceeds
17-Aug-04 Financial Review 2003 Gold Mining Cost Curve 450 400 Centerra Total Cash Cost ($/oz) 350 300 250 Industry Industry Avg. Avg. Cash Cash Cost Cost $216 $216 200 Placer Dome Cambior 150 Newmont Kinross Barrick 100 50 0 5 10 15 20 25 30 35 40 45 Cumulative Production (M oz) Source: Company Rep
Slide 18: Exploration: Kumtor
17-Aug-04 Financial Review KUMTOR Historically low exploration spending Added 460,000 oz to mineable reserves* Exploration finding cost of $4 per oz. *18 months ending Dec. 31/03 Exploration KUMTOR LONGITUDINAL SECTION ULTIMATE ULTIMATE PIT PIT @ $325/oz ACTUAL PIT (December 31, 2003) 400 Metres $45
Slide 19: Exploration: Kumtor Targets and Boroo
17-Aug-04 Exploration KUMTOR - 7 TARGETS Petrov Bedrock Outcrop SandKAZAKHSTAN and Gravel Glacier Northeast Structural Zone Kumtor Kara Kul Target Area Mill -Kuull Isssyykk-K Talas Balykchy LLaakkee Is Kumtor Kumtor Pit Barskaun 3.0 Km t ul KYRGYZ r Fa Kara-Say to umREPUBLIC K Sarytor OshSW Zone Sul
Slide 20: Boroo and Gatsuurt Land Position
17-Aug-04 Exploration BOROO Massive land position – BOROO MINE 314,000 hectares Gatsuurt Expanding Deposit 50 Kilometres Exploration GATSUURT Legend GT-54 > 1 g/t Au Shell GT-103 High Grade >5 g/t Au GT-48 GT-35 GT-85 BOROO MINE Oxide Transition Fresh 2004 Pre-Feasibility Study 20
Slide 21: 2004 Drill Targets
17-Aug-04 Exploration 2004 DRILL TARGETS BOROO MINE Gatsuurt Gatsuurt Deposit Deposit ARGAL ULAAN BULAG Exploration Target POTENTIAL RESERVES KUMTOR BOROO & GATSUURT 1-1.5 0.5-1 Million Ounces Million Ounces Over Next 12-24 Months 21
Slide 22: REN: Successful Program, JV with Barrick
17-Aug-04 Exploration REN - SUCCESSFUL PROGRAM Discovery Hole REN RU- RU-24c Property Reno Elko Elko Meikle (B) Reno (8.0 M oz) Betze-Post (B) Capstone JB Zone (35.0 M oz) Las Las 2.0 km Vegas Vegas REN Pit Genesis (N) (4.3 M oz) Bootstrap Carlin (N) (4.5 M oz) Banshee North-Carlin Tara + 8 M oz Tre
Slide 23: REN: Target of 3-4 Million Oz
17-Aug-04 Exploration REN Deep, high-grade gold mineralization discovered in 2000 by Centerra 1.9 M tonnes at 14.8 g/t inferred resource estimate (July, 2003) 900,000 oz in total Exploration REN JB Zone Resource Area 51- 51-W3 44- 44-W1 Discovery Hole RU- RU-24c 61M Dik eS Capstone war JB Zone 54- 5
Slide 24: Investor Highlights and IPO Summary
17-Aug-04 Investor Highlights Aggressive Acquisition Strategy Strong Organic Growth Prospects Strong, Debt-free Balance Sheet Solid Cash Flows & Earnings Proven Management IPO Summary Treasury: 5.0 M shares (approx C$ 80 M) Offering Size Secondary: 7.5 M shares (approx C$ 120 M) Total: 12.5 M shares
Slide 25: IPO Summary and Trading Comparables
17-Aug-04 IPO Summary Listing An application has been made to list the shares on the TSX under the symbol CG To fund exploration, terminate hedging Use of arrangements, repayment of outstanding indebtedness to EBRD and IFC and for Proceeds general corporate purposes including for working capital and
Slide 26: Trading Comparables: EV / Reserves
17-Aug-04 Trading Comparables ENTERPRISE ENTERPRISE VALUE VALUE // PROVEN PROVEN & & PROBABLE PROBABLE RESERVES RESERVES ($/oz) ($/oz) 509 509 406 406 404 404 340 340 280 280 279 279 225 225 211 211 175 175 162 162 132 132 123 123 77 77 37 37 a r t omm iccoo-- p coorrp miiss n diiaan aa n lddeen ool
Slide 27: Superior gold price leverage
17-Aug-04 Superior gold price leverage Superior quality cash flow Excellent long-term growth potential 27