Centerra Gold Inc. · TSX:CG
Centerra Gold — Investor Presentation (November 2021)
37 slides from Centerra Gold's investor presentation, November 2021
Slide 1: Deliver on Results – Investor Presentation
Mount Milligan DELIVER ON RESULTS Investor Presentation Öksüt November 2021 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 Corporate Highlights (Continuing Operations Basis) Retained Earnings Profile (US$) 2021 estimated gold production guidance up to 310koz, and 2,000 2,000 copper production up to 80Mlbs; AISC1 of $700/oz to $750/oz; AIC1 of $850/oz to $900/oz 1,800 1,600 1,600 2021 estimate
Slide 4: 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 5: 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 6: 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 $52.1MM) Q
Slide 7: Cash Flow
Centerra: Cash Flow Cash Flow From Operations including Kumtor 3,4 (US$MM’s) Consolidated Free Cash Flow including Kumtor 3,4 (US$MM’s) 2000 1806 1760 500 2000 1806 400 1760 1800 1620 1627 1571 450 1800 1620 1627 1487 1542 1571 1542 350 1600 1403 359 400 1600 1487 1374 1374 1403 281 1400 1237 350 14
Slide 8: Operational Results vs Guidance 2013-2020
Centerra: Operational Results vs Guidance 2013-2020 Centerra has a strong track record of beating gold production guidance Operating Statistics vs. Guidance (mid-point) (koz Au) 1 (1) 2016 statistics and guidance excludes Mount Milligan (transaction closed in October 2016). November 2021 8
Slide 9: Industry FCF Generation
Centerra: Industry FCF Generation 9-Months ending September 30, 2021 FCF(a) (US$ 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 10: Updated 2021-2023 Outlook
Centerra: Updated 2021-2023 Outlook 2021 2022 2023 Units Guidance Outlook Outlook Gold Production(1) (Koz) Mount Milligan(2) 180 – 200 170 - 190 180 - 210 Öksüt 90 – 110 210 - 240 200 - 220 Consolidated Gold Production (Koz) 270 – 310 380 – 430 380 – 430 Copper Production(2) (Mlb) 70 – 80 90 – 100 7
Slide 11: 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 12: Mount Milligan: Low-Cost Gold Copper Mine
Mount Milligan: Low-Cost Gold Copper Mine 2018 2019 2020 2021E Gold Production (koz) 195 183 162 180-200 Copper Production (Mlbs) 47 71 83 70-80 Production Costs ($/oz) $672 $746 $744 $650-$700 All-In Sustaining Costs ($/oz)(1) $764 $828 $541 $530-$580 All-In Costs ($/oz)(1) $782 $849 $590 $590-$640
Slide 13: Mount Milligan: Exploration
Mount Milligan: Exploration 2021 Exploration Plan • Test mineralization below the 2020 ultimate pit in the MBX and 66 zones • Expand shallow mineralization at the Great Eastern Fault area • Expand HGLC resource in the South Boundary Zone • Infill drill Southern Star Zone and expand to the south • Te
Slide 14: Öksüt: High Margin Gold Production
Öksüt: High Margin Gold Production 2020 2021E Gold Production (koz) 106 90-110 Production Costs ($/oz) $356 $450-$500 All-In Sustaining Costs ($/oz) (1) $494 $680-$730 All-In Costs ($/oz) (1) $819 $740-$790 Sustaining Capital ($MM) $2 $15-25 Öksüt Gold Non-sustaining Capital ($MM) $30 - Project Rese
Slide 15: Öksüt: Exploration Targets
Öksüt: Exploration Targets Western Asia, Europe and West Africa Keltepe NW-Keltepe N 2021 Exploration Plan Oxide Au & Supergene Cu Target • Expand near-surface oxide gold Boztepe & Boztepe West mineralization around Keltepe Porphyry Cu/Au Target and Guneytepe. Keltepe Pit • Infill and step-out drill
Slide 16: Potential Upside Optionality - Molybdenum
Centerra: Potential Upside Optionality - Molybdenum Molybdenum Price Movement Thompson Creek Mine ● Located in Idaho, is the world’s fourth largest open-pit primary molybdenum mine ● Operations began in 1983, using conventional open-pit mining and a on- site 25,500 tpd mill ● In December 2014 placed
Slide 17: Centerra: Built For Success
Centerra: Built For Success Corporate Highlights (Continuing Operations Basis) Retained Earnings Profile (US$) 2021 estimated gold production guidance up to 310koz, and 2,000 2,000 copper production up to 80Mlbs; AISC1 of $700/oz to $750/oz; AIC1 of $850/oz to $900/oz 1,800 1,600 1,600 2021 estimate
Slide 18: Appendix
Mount Milligan DELIVER ON RESULTS Öksüt Appendix TSX: CG NYSE: CGAU www.centerragold.com
Slide 19: 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 20: 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 21: 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 22: 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 23: Kemess: C$1Billion of Infrastructure
Kemess: C$1Billion of Infrastructure Fly-in, Fly-out Work Camp Permitted Open Pit Tailings Storage Facility Metallurgical Facility Kemess Proximity to Mount Milligan Kwadacha Kemess Project (Fort Ware) Kemess Omineca Resource Project Tsay Keh Access Road Forest Service Road 0 100 200 Kilometres Daws
Slide 24: Kemess: Large, Low-Cost Production
Kemess: Large, Low-Cost Production Kemess Underground – 2016 Feasibility Highlights(1) Kemess East– 2017 PEA Highlights(1) Mine Type Underground Block Cave Mine Type Underground Panel Cave Avg. LOM Gold Production (koz) 106 Avg. LOM Gold Production (koz) 80 Avg. LOM By-Product AISC (US$/oz)(2) $244
Slide 25: 2021 Updated Guidance
Centerra: 2021 Updated Guidance Mount 2021 Production Guidance Units Kumtor(1) Öksüt Centerra(2) Milligan(2) Gold Total Gold Payable Production (Koz) - 180-200 90-110 270-310 Copper Total Copper Payable Production (Mlb) - 70-80 - 70-80 2021 All-in Sustaining Unit Costs(3) Units Kumtor(1) Mount Milli
Slide 26: 2021 Guidance Sensitivities and Assumptions
Centerra: 2021 Guidance Sensitivities and Assumptions Impact on Impact on ($ millions) ($ per ounce sold) Production Costs & Net Earnings (after AISC(2)(3) on by- Capital Costs Revenues Cash flows Taxes tax) product basis Gold price $50/oz 0.1 – 0.5 - 5.0 – 6.5 5.0 – 6.0 5.0 – 6.0 2.00 – 3.00 Copper
Slide 27: 2021 Exploration - Map of Projects
Centerra: 2021 Exploration - Map of Projects 2016A 2017A 2018A 2019A 2020A 2021E Exploration spending ($MM) $11 $13 $21 $28 $39 $30 27 November 2021
Slide 28: Stewardship of the Kumtor Mine
Stewardship of the Kumtor Mine
Slide 29: Kumtor: Making a Positive Contribution
Kumtor: Making a Positive Contribution November 2021 29
Slide 30: Kumtor: Committed to Environmental Stewardship
Kumtor: Committed to Environmental Stewardship Our commitment to the environment, and the impact of that commitment, goes far past our operations and benefits the larger Issyk-Kul region. Kumtor is compliant with all environmental regulatory requirements in the Kyrgyz Republic and international stan
Slide 31: Kumtor: Making a Positive Contribution
Kumtor: Making a Positive Contribution Through taxes, duties and mandatory payments, Centerra Gold’s Kumtor operation makes a direct and substantial contribution to the prosperity of the Kyrgyz Republic while helping protect national economic interests. We help support infrastructure, social service
Slide 32: Kumtor: Investing in Employees at Kumtor
Kumtor: Investing in Employees at Kumtor Centerra Gold is the largest private sector employer in the As of the Kumtor Technical Report dated July 1, Kyrgyz Republic. 2020: The majority of employees at our Kumtor operation are Kyrgyz PROJECTED EMPLOYEE citizens, most of whom come from local communiti
Slide 33: Kumtor: Supporting Strategic Community Development
Kumtor: Supporting Strategic Community Development Taking a strategic approach to community development helps to ensure that our beneficial impact extends past, and endures beyond, our operations. Our focus in the Issyk-Kul region is helping foster favourable conditions for entrepreneurship, support
Slide 34: Kumtor: Buying Locally Builds Prosperity
Kumtor: Buying Locally Builds Prosperity Purchasing goods and services locally extends the economic benefits of our activities beyond the mine and helps to increase prosperity at a local, regional and national level. We are committed, whenever possible, to using local suppliers and contractors to me
Slide 35: 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 36: 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 37: Deliver on Results
Mount Milligan DELIVER ON RESULTS Investor Presentation Öksüt November 2021 TSX: CG NYSE: CGAU www.centerragold.com
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