Denver Gold Forum September 2017...Denver Gold Forum September 2017 TSX: CG Caution Regarding...
Transcript of Denver Gold Forum September 2017...Denver Gold Forum September 2017 TSX: CG Caution Regarding...
Denver Gold Forum
September 2017
TSX: CGwww.centerragold.com
Caution Regarding Forward-Looking Information
2September 2017
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 securitieslaws. Such forward-looking information involves risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by suchforward looking information. The words “believe”, “expect”, “anticipate”, “contemplate”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule”, “understand” and similar expressions identify forward-looking information. These forward-looking statements relate to, among other things: the satisfaction of the conditions precedent to implement the provisions of the comprehensive settlement agreement (“StrategicAgreement”) with the Government of the Kyrgyz Republic; statements relating to the Company’s cash on hand, working capital, future cash flows and existing credit facilities being sufficient to fund anticipated operatingcash requirements; the timing and outcomes of projects initiated at the Mount Milligan mine aimed at improving metal recovery and other optimization opportunities; the continuation of negotiations with the MongolianGovernment on definitive agreements related to the Gatsuurt Project; expectations regarding updating a feasibility study for the Gatsuurt Project; timing for development of, and gold production, from the Öksüt Project; thetiming for the sale of the ATO licenses; mining plans at Kumtor, including timing for accessing ore; and statements found in the MD&A and news release under the heading, “2017 Outlook”, including forecast 2017production, cost and capital estimates, care and maintenance and reclamation activities at the Boroo mine, and the Company’s plans in 2017 for exploration expenditures, capital expenditures, corporate administrative andcommunity expenditures, and DD&A expenses for 2017.Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable by Centerra, are inherently subject to significant political, business, economic andcompetitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward looking information. Factors that could cause actual results orevents to differ materially from current expectations include, among other things: (A) strategic, legal, planning and other risks, including: political risks associated with the Company’s operations in the Kyrgyz Republic,Mongolia and Turkey; resource nationalism including the management of external stakeholder expectations; the impact of changes in, or to the more aggressive enforcement of, laws, regulations and government practices,including with respect to the environment, in the jurisdictions in which the Company operates including any delays or refusals to grant required permits and licenses, unjustified civil or criminal action against the Company,its affiliates or its current or former employees; risks that community activism may result in increased contributory demands or business interruptions; the impact of any actions taken by the Kyrgyz Republic Governmentand Parliament relating to the Kumtor Project Agreements which are inconsistent with the rights of Centerra and KGC under the Kumtor Project Agreements; that any of the conditions precedent to the Strategic Agreementwill not be satisfied in a timely manner or at all, particularly as the Government may not bind the General Prosecutor’s Office or the Parliament of the Kyrgyz Republic; a decision by the General Prosecutor’s Office, or itssuccessor the Anti-Corruption Service of the State Committee for National Security, to re-open at any time civil or criminal proceedings against Centerra, its subsidiaries or other stakeholders; the failure of the Governmentto comply with its continuing obligations under the Strategic Agreement, including the requirement that it comply at all times with its obligations under the Kumtor Project Agreements, allow for the continued operation ofthe Kumtor Mine by KGC and KOC and not take any expropriatory action; actions by the Government or any state agency or the General Prosecutor's Office that serve to restrict or otherwise interfere with the payment offunds by KGC and KOC to Centerra; a new claim by the Government, a state agency or the General Prosecutor’s Office for alleged unknown environmental damage; the terms pursuant to which the Mongolian Governmentwill participate in, or to take a special royalty rate in, the Gatsuurt Project; the impact of constitutional changes in Turkey; the impact of any sanctions imposed by Canada, the United States or other jurisdictions againstvarious Russian individuals and entities; the ability of the Company to negotiate a successful development agreement for the Gatsuurt Project; potential defects of title in the Company’s properties that are not known as ofthe date hereof; the inability of the Company and its subsidiaries to enforce their legal rights in certain circumstances; the presence of a significant shareholder that is a state-owned company of the Kyrgyz Republic; risksrelated to anti-corruption legislation; risks related to the concentration of assets in Central Asia; Centerra’s future exploration and development activities not being successful; Centerra not being able to replace mineralreserves; Aboriginal claims and consultative issues relating to the Company’s properties which are in proximity to Aboriginal communities; and potential risks related to kidnapping or acts of terrorism; (B) risks relating tofinancial matters, including: sensitivity of the Company’s business to the volatility of gold, copper and other mineral prices, the use of provisionally-priced sales contracts for production at Mount Milligan, reliance on a fewkey customers for the gold-copper concentrate at Mount Milligan, use of commodity derivatives, the imprecision of the Company’s mineral reserves and resources estimates and the assumptions they rely on, the accuracyof the Company’s production and cost estimates, the impact of restrictive covenants in the Company’s credit facilities which may, among other things, restrict the Company from pursuing certain business activities ormaking distributions from its subsidiaries, the Company’s ability to obtain future financing, the impact of global financial conditions, the impact of currency fluctuations, the effect of market conditions on the Company’sshort-term investments, the Company’s ability to make payments including any payments of principal and interest on the Company’s debt facilities depends on the cash flow of its subsidiaries; and (C) risks related tooperational matters and geotechnical issues and the Company’s continued ability to successfully manage such matters, including the movement of the Davidov Glacier, waste and ice movement and continued performanceof the buttress at the Kumtor Project; the occurrence of further ground movements at the Kumtor Project and mechanical availability; the ability of the Company to successfully ramp-up to design criteria of the secondarycrusher at Mount Milligan; the success of the Company’s future exploration and development activities, including the financial and political risks inherent in carrying out exploration activities; inherent risks associated withthe use of sodium cyanide in the mining operations; the adequacy of the Company’s insurance to mitigate operational risks; mechanical breakdowns; the Company’s ability to replace its mineral reserves; the occurrence ofany labour unrest or disturbance and the ability of the Company to successfully re-negotiate collective agreements when required; the risk that Centerra’s workforce may be exposed to widespread epidemic; seismicactivity in the vicinity of the Company’s properties; long lead times required for equipment and supplies given the remote location of some of the Company’s operating properties; reliance on a limited number of suppliersfor certain consumables, equipment and components; illegal mining on the Company’s Mongolian properties; the Company’s ability to accurately predict decommissioning and reclamation costs; the Company’s ability toattract and retain qualified personnel; competition for mineral acquisition opportunities; and risks associated with the conduct of joint ventures/partnerships; the Company’s ability to manage its projects effectively and tomitigate the potential lack of availability of contractors, budget and timing overruns and project resources. See section titled “Risks that can affect our business” in the 2016 Annual Information Form available on SEDAR atwww.sedar.com.Furthermore, market price fluctuations in gold and copper, as well as increased capital or production costs or reduced recovery rates may render ore reserves containing lower grades of mineralization uneconomic and mayultimately result in a restatement of reserves. The extent to which resources may ultimately be reclassified as proven or probable reserves is dependent upon the demonstration of their profitable recovery. Economic andtechnological factors which may change over time always influence the evaluation of reserves or resources. Centerra has not adjusted mineral resource figures in consideration of these risks and, therefore, Centerra cangive no assurances that any mineral resource estimate will ultimately be reclassified as proven and probable reserves. There can be no assurances that forward-looking information and statements will prove to be accurate,as many factors and future events, both known and unknown could cause actual results, performance or achievements to vary or differ materially, from the results, performance or achievements that are or may beexpressed or implied by such forward-looking statements contained herein or incorporated by reference. Accordingly, all such factors should be considered carefully when making decisions with respect to Centerra, andprospective investors should not place undue reliance on forward looking information. Centerra assumes no obligation to update or revise forward looking information to reflect changes in assumptions, changes incircumstances or any other events affecting such forward-looking information, except as required by applicable law. Except as otherwise noted herein, Gordon Reid, Professional Engineer and Centerra’s Vice President andChief Operating Officer, has reviewed and approved the scientific and technical information contained in this presentation. Mr. Reid is a Qualified Person within the meaning of NI 43-101. For more information, please referto the properties technical reports, which are available on SEDAR. All figures are in United States dollars unless otherwise stated.
1. 2017e AISC: Kumtor $751 to $795/oz, Mount Milligan $457 to $508/oz. All-in sustaining costs per ounce sold is a non-GAAP measures and is discussed under “Non-GAAP Measures” in the Company’s MDA & news release July 31, 2017.2. As at June 30, 2017; Cash includes cash, cash equivalents, restricted cash and short-term investments (KGC cash unrestricted as of September 11, 2017).
Corporate Highlights
Internationally Diversified Gold Producer
Two Cornerstone Lower-Cost Quartile Assets
Favourably Revised Guidance up to 845kozpa gold at AISC1
of $693 to $747 per ounce and 60M lbs of copper
Comprehensive Settlement Agreement Signed: Sept.11/17
Kumtor’s Cash Released
Significant Operational Cash Flow Profile
Solid Late-Stage Development Pipeline
Cash2 Position of US$401MM2
Trading at a Discount to Peers, Potential Re-Rating
Positive Retained Earnings of US$937MM2
3
Cash Reserves2 Profile (US$)
Consensus Asset NAV Breakdown
Centerra: Built For Success
Kyrgyzstan33%
Turkey11%Mongolia
10%
Canada46%
US0%
0
400
800
1,200
1,600
2,000
0
200
400
600
800
1,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q22017
Gol
d Pr
ice
(US$
/oz)
US$
Mill
ions
Cumulative Dividends Cash Balance Gold Price2
September 2017
4
Cash$542MM
Balance Sheet (US$)
Total Debt3
$447MM
(as of June 30, 2017)
Share Count
YTD - 2017: Internally Funded Business (US$)
Retained Earnings Profile (US$)
0
400
800
1,200
1,600
2,000
0
200
400
600
800
1,000
1,200
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q22017
Gol
d Pr
ice
(US$
/oz)
US$
Mill
ions
Retained Earnings Cumulative Dividends Gold Price1 Includes cash and cash equivalents, restricted cash and short-term investments at June 30, 2017. KGC cash unrestricted as of September 11, 2017. 2 Cash generated from operations before changes in working capital.3 Includes CAT lease of $32MM at June 30, 2017.
Centerra: Q2 - 2017 Corporate Update
Cash1
$401MM
216.2 216.3 216.3 226.7 235.5 236.1 236.4 236.4 236.4 237.9
291.3 291.3
0
50
100
150
200
250
300
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q22017
millions
409
205
61 34 146
25 35
33
401
200
250
300
350
400
450
500
550
600
650
700
2016 Cash Kumtor OpsCashflow
Mt MilliganOps Cashflow
Workingcapital
changes (MtMand KGC)
Capitalexpenditures
EBRD debtrepayment
Term debtrepayment
Other(Projects,G&A, etc)
Q2 2017 Cash
US$
Mill
ions
12 2
1
September 2017
Operating Cash Flows
$371MM
Cash Flows Invested $223MM
Operating Cash Flows $334 MM
Cash Flows Invested $244 MM
170U/G miners
240U/G miners
240U/G miners
YE target of 4,000tpd
2015 Free Cash Flow Profile (US$)
2016 Free Cash Flow Profile (US$)
5
Cash Reserves1 Profile (US$)
0
400
800
1,200
1,600
2,000
0
200
400
600
800
1,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q22017
Gol
d Pr
ice
(US$
/oz)
US$
Mill
ions
Cumulative Dividends Cash Balance Gold Price1
Retained Earnings Profile (US$)
September 2017 1. Cash reserves and cash balance includes cash, cash equivalents, restricted cash and short-term investments, KGC cash unrestricted as of September 11, 2017.
0
400
800
1,200
1,600
2,000
0
200
400
600
800
1,000
1,200
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q22017
Gol
d Pr
ice
(US$
/oz)
US$
Mill
ions
Retained Earnings Cumulative Dividends Gold Price
Centerra: Robust Financial Margins in all Cycles
Centerra: Favourable Full Year Guidance Revision
6
755,000
815,000
650,000
700,000
750,000
800,000
850,000
Orginal Guidance Revised Guidance
2017 Mid-Point All-In Sustaining Costs (US$/oz)
720 815 845 860 900 910 940 955 965 975
1,040 1,075
1,200
Centerra SEMAFO New Gold EldoradoGold
AcaciaMining
YamanaGold
AlamosGold
B2Gold SilverStandard
KinrossGold
IAMGOLD DetourGold
TahoeResources
Mid-Point Gold Production (oz’s)
Mid-Point All-In Sustaining Costs (US$/oz)
Guidance Highlights
Gold Production – 7% Favourable Revision
All-In Sustaining Costs – 8% Favourable Revision
784
720
650
700
750
800
Orginal Guidance Revised GuidanceSeptember 2017
Centerra: Financial Highlights
7
1 Non-GAAP measure and is discussed in the Company’s MD&A and News Release dated July 31, 20172 Includes CAT finance leases ($32MM at June 30, 2017)3 Includes restricted cash, KGC cash unrestricted as of September 11, 2017
505470 447
409
358
401
200
250
300
350
400
450
500
550
Dec31 2016 Mar31 2017 Jun30 2017
US$
Mill
ions
Total Debt Cash
Both mines generating strong positive free cash flows
YTD cash flow of $127.5MM from mine operating activities before changes in working capital1 and after capital
expenditures:
• $76.4MM from Kumtor; and,
• $51.1MM from Mount Milligan
Debt repayments YTD of $60MM, outstanding total debt $447MM2 at June 30, 2017
US$401MM3 Cash balance at June 30, 2017
Continue to accelerate debt repayments through 2017
Debt Reduction (US$)
2
September 2017
885
746
36 30 48
97
500
550
600
650
700
750
800
850
900
950
$ /O
z so
ld
YTD All-in Sustaining Costs (US$/oz)1
Kyrgyz Republic
33%
Turkey6%
Mongolia13%
Canada48%
Kyrgyzstan33%
Turkey11%Mongolia
10%
Canada46%
US0%
Producing70%
Development21%
Exploration9%
8
Kyrgyz Republic
32%
Turkey7%
Mongolia10%
Canada52%
Gold ReservesAsset NAV breakdown
Consensus Asset NAV by geography
Consensus Asset NAV by stage
Source: Company filings and analyst estimates.(1) Resources are shown inclusive of reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
P+P reserves by geography
M+I resources (inclusive) by geography(1)
September 2017
Diversified Portfolio With Balanced Geopolitical Profile
Centerra: Re-Rating Potential Continues
9
Source: Scotiabank GBM Equity Research(1) Price / Net Asset Value (“NAV”) is calculated using spot rates and prices as at September 15, 2017.
Price / NAV(1)
September 2017
1.75x
1.44x
1.26x 1.25x
1.10x 1.07x 1.03x
0.95x 0.91x 0.86x 0.82x
Ran
dgol
dR
esou
rces
Kin
ross
Gol
d
B2G
old
New
Gol
d
IAM
GO
LD
SS
R M
inin
g
Ala
mos
Gol
d
Det
our G
old
Yam
ana
Gol
d
SE
MA
FO
Cen
terr
a
Centerra vs Intermediate Gold Peers P/NAV (5%) at Spot
Median P/NAV (5%) at Spot
Median: 1.13x
$0
$250
$500
$750
$1,000
$1,250
$1,500
$1,750
$2,000
$2,250
$2,500
730 9,100 16,008 23,666 30,082 36,417 39,898 42,962
AIS
C, n
et (
US$
/oz
Au)
Cumulative Gold Production (koz Au)
75%
Centerra: Lower-Cost Asset Base
10
AISC Industry Curve (By-Product Basis)
100%50%25%0%
Kumtor(US$751-795/oz)
Centerra Gold(US$693-747/oz Au)
Based on industry-wide all-in sustaining costs, Centerra ranks in the bottom quartile of global gold producers
Source: SNL Metals.Note: Centerra AISC figures based on 2017 revised cost guidance, unless noted1. Öksüt AISC based on LOM plan as per the NI 43-101 technical report dated September 3, 2015
Mount Milligan(US$457-508/oz)
September 2017
Öksüt(US$490/oz)(1)
11
2016 2017E Guidance
Gold Production (koz) 205 260-290
Copper Production (MMlbs) 59 55-65
All-In Sustaining Costs (US$/oz)(1) $509 $457-$508
Sustaining Capital ($MM)(1) NA $26
Remaining reserve life (years) +20
Gold Copper
P&P Reserves(2) 5.8Moz 2,049Mlbs
Grade 0.4g/t 0.187%
Royal Gold Stream 35% @ US$435/oz
18.75% @ 15% of spot Cu price
+20 years of production from existing P&P reserves(2)
5.8M gold reserve ounces(2)
Low cost, long life production
Stable, mining-friendly jurisdiction
Restructured stream provides additional gold upside
Tax loss pools, no cash taxes until 2022/2023
September 2017
Mount Milligan: Long Life, Low Cost Gold Copper Mine
Significant Gold and Copper ProductionSignificant Open Pit Gold and Copper Production
218
275
59
71
60205
0
10
20
30
40
50
60
70
80
0
50
100
150
200
250
300
2015 2016 2017E 2015 2016 2017ECOPPER
Copp
er M
lbs
Gold ou
nces
GOLD(1) Non-GAAP measure and is discussed under “Non-GAAP Measures” in the Company’s MDA and news release July 31, 2017. 2016 AISC is for the period Oct.20 to Dec.31.(2) Refer to February 23, 2017 mineral reserves and resources news release.
170U/G miners
207U/G miners
240U/G miners
240U/G miners
2015 2016 2017EGuidance
Gold Production (koz) 521 551 525-555
Adjusted Operating Costs ($/oz) (1) $326 $342 $326-$346
All-In Sustaining Costs ($/oz) (1) $758 $640 $751-$795
Sustaining Capital ($MM)(1) $51 $61 $68
Growth Capital ($MM)(1) $14 $15 $28
Projected Asset Life (years) +9
Reserves (Moz) 5.1
Au Grade (g/t) 2.5
Resources M&I (Moz) 2.6
Au Grade (g/t) 2.8
World Class Cornerstone Asset Significant Open Pit Gold Production to 2026
YE target of 4,000tpd
20 years of uninterrupted profitable production
Over 11M ounces produced since 1997
More than 5M ounces remaining in open pit reserves
Low cost, long life production
Underground opportunity (inferred 3.4Moz @ 7.3 g/t)
Strong stable platform to grow Centerra
12September 2017
Kumtor: World Class Open Pit Gold Mine
(1) Non-GAAP measure and is discussed under “Non-GAAP Measures” in the Company’s MDA and news release July 31, 2017.
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
200,000
350,000
500,000
650,000
2014 2015 2016 2017 2018 2019 2020 2021 2022
grade g/t
Oun
ces
13
Mine Type Open Pit, Heap Leach
Avg. LOM Annual Production 110koz Au
Avg. LOM AISC(1) (US$/oz) $490
Reserve Mine Life 8 years
Development Capex (US$MM) $221
P&P Reserves(2)(Moz) 1.2
Au grade (g/t) 1.40
Life of Mine Recovery 77%
Life of Mine Strip Ratio (w:o) 2:1
First Gold Pour Late-2018
IRR (after tax) 43%
NPV(8%) - after tax (US$MM) >$240
2015 Feasibility Highlights
EIA approval received in November 2015
Forestry Permit & GSM License received July 2016
Major construction expected in 2017
Powerline construction completed
Bought back Stratex and Teck royalties
US$150MM low-cost +5-year financing in-place
Significant exploration potential
Projected Near-Term Gold Production
0.00
0.50
1.00
1.50
2.00
2.50
0
50
100
150
200
250
2016 2017 2018 2019 2020 2021 2022 2023 2024
Proc
ess
Gra
de (
g/to
nne)
Oun
ces
(000
's)
Catalyst Schedule
Öksüt Gold Project
(1) Non-GAAP measure see “Non-GAAP Measures” in the MDA and news release of July 31, 2017.(2) Company filings. Technical Report on the Öksüt Gold Project dated September 3, 2015.
0 +1 +2 +3 +4 +5 +6 +7 +8Years:
September 2017
Öksüt: Funded High Margin Gold Production
Öksüt: Powerline Construction Complete
14September 2017
15
Highlights
Boroo mill on care & maintenance awaiting Gatsuurt approval
Gatsuurt declared strategic January 2015
3% royalty (versus 34% ownership) approved by government
Investment development agreement negotiations underway
Potential production 12-18 months after approval
P&P Reserves(1) of 1.6M contained ounces of gold @ 2.9 g/tonne
Strip ratio of 6:1 and process recoveries in excess of 76%
Significant exploration upside
In-Place 5ktpd Processing Facility (Boroo)Boroo’s Historical Cumulative Net Cash Generation (US$MM)
(100)
0
100
200
300
400
500
600
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
US$
Mill
ions
(1) See mineral reserves news release February 23, 2017.
The Gatsuurt Project is ~90 km north of Ulaanbaatar
September 2017
Gatsuurt: Gold Development Project
16
Cornerstone Canadian Development Project
50:50 development partnership with Premier Gold
Open pit reserves(1) (100%) 4.7Moz Au @ 1.02 g/t
Historic gold production of 4.12M oz (~1934-1970)
Large land package covers 337km2, good infrastructure
Significant exploration and underground resource potential
Ontario: Top Tier Mining Jurisdiction
Greenstone GoldProperty Greenstone Development Project
Location: Ontario, Canada
September 2017
2016 Feasibility Highlights (100%)
Mine Type Open Pit, CIP Mill
Mill Throughput design 27,000 tpd
Avg. LOM Annual Production 288koz Au
Avg. LOM AISC(2) (US$/oz) $600
Reserve Mine Life 14.5 years
Development Capex (US$MM) $962
Sustaining Capital(2) (US$MM) $101
P&P Reserves(1)(Moz) 4.7
Au grade (g/t) 1.02
Life of Mine Recovery 90%
Life of Mine Strip Ratio (w:o) 3.87:1
IRR (after tax) 14.4%
NPV(5%) - after tax (US$MM) $545
Projected Gold Production (100%)
Greenstone: One of Canada’s Largest Undeveloped Open Pit Gold Mines
(1) See Technical Report on the Hardrock Project dated December 21, 2016. (2) Non-GAAP measure, see “Non-GAAP Measures” in MDA and news release July 31, 2017.
Potential Upside Optionality: Molybdenum
17
Molybdenum business
Well-established molybdenum business
Consists of the Langeloth Metallurgical Facility and two mines: Thompson Creek Mine and Endako Mine
Langeloth can produce a suite of premium molybdenum products that raise the average realized price
Significant defined resources and infrastructure in place
Ability to be one of the first movers upon moly market recovery
Lower cost to restart production compared to greenfield project
Molybdenum business well positioned to recover once market conditions and pricing improve
Thompson Creek Mine
Endako 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 on care and maintenance
● Endako Mine is a fully integrated molybdenum facility located in BC
● TCM is the operator and 75% owner; Sojitz owns 25%
● Endako consists of three adjoined pits and a fully integrated operation
with on-site mill and multiple hearth roasting facility
● New 55,000 tpd processing facility was completed in 2012 for~US$500MM
● In July 2015 placed on care and maintenance
Langeloth Metallurgical Facility
● Located 40 km west of Pittsburgh, Pennsylvania
● Operates both as a toll processor and as a purchaser of molybdenum
concentrates from third parties
● Cash flows from the Langeloth operations are expected to cover care and
maintenance expenses associated with the molybdenum mines for 2017
Historical Molybdenum Segment EBITDA(1)
$444
$126
$269 $265
$18
$126 $124
($21)
2008 2009 2010 2011 2012 2013 2014 2015
(US$MM)
(1) Prior to intersegment eliminations. Historical EBITDA not reported, therefore calculated based on historical segment disclosure.September 2017
18
Source: Company filings, FactSet, Available street research.(1) Guidance based on the midpoint of the guidance range.(2) Silver Standard gold guidance is from Marigold and Seabee.(3) Silver Standard AISC based on broker estimates as guidance estimates not provided.(4) Latest available as at February 23, 2017.
P+P Gold Reserves (Moz)(4)
2017 Gold Production Guidance (Koz)(1) 2017 All-In Sustaining Costs (US$/oz)(1)
(2)
September 2017
31
21
17 16 1615
8 8 76
43 3
Kinross Gold Eldorado Gold Yamana Gold Centerra Detour Gold New Gold IAMGOLD Acacia Mining B2Gold Alamos Gold Tahoe Resources SEMAFO Silver Standard
(3)
Centerra: Strong Low-Cost Operating Platform
720 815 845 860 900 910 940 955 965 975
1,040 1,075
1,200
Centerra SEMAFONew GoldEldoradoGold
AcaciaMining
YamanaGold
AlamosGold
B2Gold SilverStandard
KinrossGold
IAMGOLD DetourGold
TahoeResources
2,600
1,140
875 865
815
575 570
415 405 400 383 287
225
KinrossGold
YamanaGold
AcaciaMining
IAMGOLD Centerra DetourGold
B2Gold AlamosGold
New Gold TahoeResources
EldoradoGold
SilverStandard
SEMAFO
Kumtor: World Class Open Pit Gold Mine
Öksüt: High Margin Open Pit Heap Leach Gold Mine
Gatsuurt: Open Pit Gold Mine with established infrastructure
Cornerstone asset underpinning the Company’s growing production portfolio
Long life, low cost asset generating significant positive cash flow
Funded, late-stage gold development project
Near-term high margin gold production
Investment agreement negotiations underway; anticipated production ~12-18 months after approval
Surface processing infrastructure in-place
19
Mount Milligan: Long Life, Low Cost Open Pit Gold-Copper Mine in British Columbia
Large scale, low cost mine that recently ramped-up; expected to generate significant free cash flow
Amended gold stream positions Mount Milligan as a premier gold asset
Greenstone: Large Scale Open Pit Gold project
One of Canada’s largest undeveloped open pit gold deposits
Bankable feasibility study completed, final EIS/EA filed and mine permitting work underway
Pro
duci
ngD
evel
opm
ent
September 2017
Centerra: Built For Success
TSX: CGwww.centerragold.com
Appendices
Centerra: Q2 - 2017 Corporate Update
September 2017 21
Safety – Continue to roll out “Work Safe : Home Safe” Program Across the Company
Q2 2017 Net Earnings $23MM or $0.08 Per Share, includes $41MM or $0.14 Per Share Impairment
Strong Q2 Gold Production of 195,719 Ounces and Copper Production of 15.1 million pounds
Centerra’s Q2 2017 All-In Sustaining Cost1 on a by-product basis $742 Per Ounce
Mount Milligan achieved All-In Sustaining Cost1 on a by-product basis of $473 Per Ounce in Q2
Kumtor Generated $103 Million & Mt. Milligan Generated $30 Million Cash Before Working Capital1
YTD - Kumtor $205 Million & Mt. Milligan $61 Million
Cash Provided by Operations of $143 Million ($0.49 per share) & YTD $211 Million ($0.72 per share)
June 30, 2017 Cash Position of $401 Million2
Revised Favourably 2017 Production and Cost Guidance
1. Non-GAAP measure and is discussed under “Non-GAAP Measures” in the Company’s MD&A and News Release dated July 31, 2017.2. Includes cash, cash equivalents, restricted cash and short-term investments at June 30, 2017. KGC cash unrestricted September 11, 2017.
Centerra: Operating Highlights
September 2017 22
Q2 2017 Q2 20161
Gold ounces produced(1) 195,719 97,724
Copper produced (000’s payable lbs)(1) 15,062 -
Kumtor All-in Sustaining Costs per ounce sold(2) $780 $768
Mt. Milligan All-in Sustaining Costs on a by-product basis per ounce sold(1),(2) $473 -
Consolidated All-in Sustaining Costs on a by-product basis per ounce sold(1),(2) $742 $822
1. Mount Milligan numbers 100% basis, 2016 numbers for gold ounces produced excludes any ounces from the Boroo mine and results exclude Mt. Milligan, since the Company closed the Thompson Creek acquisition in October 2016, therefore no comparative numbers.
2. Non-GAAP measure and is discussed under “Non-GAAP Measures” in the Company’s MD&A and News Release dated July 31, 2017.3. Reflects $41.3 million pre-tax write-down ($39.7 million after tax) recorded in Q2, 2017.
Q2 2017 gold production - Kumtor 138,623 ounces, Mount Milligan 57,096 ounces1
Q2 2017 copper production - Mount Milligan 15,062,000 pounds1
Favourably revised guidance at Kumtor, increased gold production 525,000 – 555,000 oz,Lowered all-in sustaining costs per ounce sold2 to $751 - $795
Reduced carrying value of Mongolian assets to $60 million3
Value-added Continuous Improvement Initiatives Underway at Both Operations
Centerra: Financial Highlights1
September 2017 23
(in thousands, except ounces, per share amounts, and average realized price3)
Quarter EndedJune 30, 2017
Quarter EndedJune 30, 20162
Revenue $279,218 $160,448
Total gold ounces sold 188,225 127,909
Total copper pounds sold (000’s) 14,358 -
Operating cash flow before changes in working capital(3) $121,944 $59,198
Cash provided by operations $142,777 $57,247
Net earnings (including impairment charge) $23,440 $2,912
Earnings per share, basic $0.08 $0.01
Average realized gold price per ounce(3) $1,165 $1,264
1. U.S. dollars2. No comparative results from Thompson Creek operations presented.3. Non-GAAP measure and is discussed under “Non-GAAP Measures” in the Company’s MD&A and News Release dated July 31, 2017.
Centerra: Mineral Reserves - Proven & Probable1
Proven and Probable Gold Mineral Reserves Increase to 16 million ounces
Proven and Probable Copper Mineral Reserves are 2,049 million pounds
Copper Mineral Reserves
Proven Probable Total Proven and Probable
Property Tonnes Grade Contained Tonnes Grade Contained Tonnes Grade Contained(kt) (%) Copper (Mlbs) (kt) (%) Copper (Mlbs) (kt) (%) Copper (Mlbs)
Mt Milligan 256,847 0.187 1,059 239,362 0.188 991 496,209 0.187 2,049
September 2017 241) As at December 31, 2016, see Mineral Reserves and Resources News Release February 23, 2017.
Centerra: 2017 Revised Guidance
25
2017 Gold Production 2017 Copper Production2017 All-in Sustaining Costs on a By-product
basis1
(ounces) (millions pounds) (per ounce sold)
Kumtor Mine 525,000 – 555,000 - $751 – $795
Mount Milligan 260,000 – 290,000 55 – 65 $457 – $508
Centerra 785,000 – 845,000 55 – 65 $693-$747
1 Non-GAAP measure discussed under “Non-GAAP Measures” in the Company’s news release dated July 31, 2017.2 Greenstone growth capital includes capitalized amounts for Premier’s 50% share of the Greenstone costs funded in full by Centerra.
Projects 2017 Sustaining Capital1 2017 Growth Capital1
(millions) (millions)
Kumtor Mine $68 $28
Mount Milligan Mine $26 -
Öksüt Project - $11
Mongolia/Gatsuurt Project - $5
Greenstone Property2 - $8
Corporate and other $2 -
Consolidated Total $96 $52
2017
(millions)
Exploration $10.5
Corporate Administration $35
Community Investment $5
September 2017
1 Appreciation of currency against the U.S. dollar will result in higher costs and lower cash flow and earnings, depreciation of currency against the U.S. dollar results in decreased costs and increased cash flow and earnings.2 All-in sustaining costs per ounce sold (“AISC”) on a by-product basis is a non-GAAP measure discussed under “Non-GAAP Measures” in the Company’s news release July 31, 2017.3 The Company has recalculated the sensitivities for its revenues, earnings and cash flows for the remaining six months of 2017 to movements in copper price changes following the commencement in the first quarter of 2017 of a hedging program to mitigate copper price risk by purchasing fixed price forward sales contracts and zero-cost collar.
Centerra: 2017 Guidance Sensitivities
26
Material Assumptions and RisksMaterial assumptions or factors used to forecast production and costs for 2017 include the following:• a gold price of $1,200 per ounce,• a copper price of $2.60 per pound,• a molybdenum price of $7.50 per pound,• exchange rates:
• $1USD:$1.32 CAD,• $1USD:70.0 Kyrgyz som,• $1USD:0.89 Euro,
• diesel fuel price assumption: • $0.43/litre at Kumtor,• $0.65/litre at Mount Milligan.
Change
Impact on Impact on ($ millions) ($ per ounce sold)
Costs Revenues Cash flows Net Earnings(after tax)
AISC(2) on by-product basis
Gold Price $50/oz 3.2 - 3.4 17.7 – 19.4 15.6 – 16.0 15.6 – 16.0 0.1 Copper Price(3) 10% 0.2 – 0.8 0.7 – 2.9 0.5 – 2.1 0.5 – 2.1 0.7 – 2.5 Diesel Fuel 10% 1.0 - 4.1 1.1 4.9 – 5.2
Kyrgyz som(1) 1 som 0.2 - 0.8 0.2 0.9 – 1.0
Canadian dollar(1) 10 cents 11.9 - 14.5 11.9 17.2 – 18.5
September 2017
Greenstone: One of Canada’s Largest Undeveloped Open Pit Gold Mines
27
Cornerstone Canadian Development Project
50:50 development partnership with Premier Gold
Open pit reserves(1) (100%) 4.7Moz Au @ 1.02 g/t
Historic gold production of 4.12M oz (~1934-1970)
Large land package covers 337km2, good infrastructure
Significant exploration and underground resource potential
Bankable feasibility study completed in November 2016
Ontario: Top Tier Mining Jurisdiction
Greenstone GoldProperty Greenstone Development Project
Location: Ontario, Canada
Geraldton
Beardmore
JellicoeBrookbank
HardrockViper
11
Beardmore – Geraldton Greenstone Belt +110 km
Brookbank Deposit
Hardrock Deposit
September 2017 (1) Technical Report on the Hardrock Project dated December 21, 2016.
Centerra: Investor Relations Highlights
28
Research Coverage
Brokerage Firms Rating Target
1. BMO Capital Markets Market Perform C$10.00
2. BofA Merrill Lynch Neutral C$10.50
3. Canaccord Genuity Hold C$7.00
4. CIBC World Markets Neutral C$9.50
5. Cormark Securities Buy C$12.00
6. Credit Suisse Outperform C$9.50
7. Global Mining Research Speculative Buy C$10.70
8. Macquarie Capital Markets Outperform C$12.00
9. National Bank Financial Outperform C$8.25
10. RBC Capital Markets Sector Perform C$10.00
11. Scotiabank Sector Outperform C$11.00
12. TD Securities Hold C$10.00
Average C$10.04
Top Ten (10) Institutional Shareholders
Institution/Firm Q2-2017
1. Blackrock 12.56%
2. Van Eck 8.65%
3. Paulson & Co 7.80%
4. Franklin Advisors 2.57%
5. Dimensional 2.35%
6. Newton 1.58%
7. Vanguard Group 1.42%
8. USAA 1.36%
9. Kopernik Global 1.17%
10. Heartland Advisors 1.03%
TOTAL 40.49%
September 2017
Industry Experience Background
20 years• Appointed Chief Executive Officer in November, 2015
• Former Chief Executive Officer at AuRico Gold
25 years • Appointed President in November, 2015
• Joined Centerra in 2004
30 years• Appointed Chief Operating Officer in January, 2013
• Joined Centerra in 2004
18 years• Appointed Chief Financial Officer in April, 2016
• Joined Centerra in 2013
SCOTT PERRYChief Executive Officer
FRANK HERBERTPresident
GORDON REIDChief Operating Officer
Centerra: Senior Management
DARREN MILLMANChief Financial Officer
29September 2017
Board of Directors Background
STEPHEN A. LANG Chairman Appointed Director of Centerra’s Board, June 2008
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 Director Appointed Director of Centerra’s Board, June 2012
EDUARD KUBATOV Director Appointed Director of Centerra’s Board, March 2016
NURLAN KYSHTOBAEV Director Appointed Director of Centerra’s Board, May 2016
MICHAEL S. PARRETT Director Appointed Director of Centerra’s Board, May 2014
JACQUES PERRON Director Appointed Director of Centerra’s Board, October 2016
SHERYL K. PRESSLER Director Appointed Director of Centerra’s Board, May 2008
TERRY V. ROGERS Director Appointed Director of Centerra’s Board, February 2003
BEKTUR SAGYNOV Director Appointed Director of Centerra’s Board, March 2016
Centerra: Directors
30September 2017
TSX: CGwww.centerragold.com