Investor Presentation November TSX: CG

Transcription

1 Investor Presentation TSX: CG

2 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 involves risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward 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, our expectations regarding: water availability at the Mount Milligan mine including sources and timing of availability, mill throughput levels expected for the remainder of 2018, the outcome and timing for receiving a response on the Company s submission for an amendment to the Mount Milligan environmental assessment certificate, including the Company s expectations that the sources will be available to 2021, and the Company s work with respect to an updated long-term water supply plan to be available from 2021 to the life-of-mine;; the closing of the Strategic Agreement entered into with the Kyrgyz Republic Government and the related resolution of outstanding matters which affect the Kumtor Project, including outstanding regulatory and court proceedings; the progress of development activities at the Öksüt Project, including expected dates of completion for various development activities, and expected costs and timing to first gold pour; expectations on receiving an amended/new air emissions permit for the Kemess project, and plans to develop the water treatment plant and water discharge system; expectations on receiving a draft report from the MECP for the Greenstone project; operational plans at Kumtor and Mount Milligan in 2018; the Company s cash on hand, working capital, future cash flows and existing credit facilities being sufficient to fund anticipated operating cash requirements; exploration plans for the remainder of 2018 and 2019, including the execution of the Kumtor drill program; and statements found under the heading, 2018 Outlook, including updated forecast 2018 production costs, capital and exploration expenditures and taxes. 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 and competitive 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 or events 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 and Canada; risks that any of the conditions precedent to the Strategic Agreement will 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 its successor 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 Government to 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 of the 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 of funds by KGC and KOC to Centerra; 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 Government and Parliament relating to the Kumtor Project Agreements which are inconsistent with the rights of Centerra and KGC under the Kumtor Project Agreements; any impact on the purported cancellation of Kumtor s land use rights at the Kumtor Project; the risks related to other outstanding litigation affecting the Company s operations; the impact of the delay by relevant government agencies to provide required approvals, expertises and permits; potential impact on the Kumtor Project of investigations by Kyrgyz Republic instrumentalities; the terms pursuant to which the Mongolian Government will 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 against various Russian individuals and entities; the ability of the Company to successfully negotiate agreements for the development of the Gatsuurt Project; potential defects of title in the Company s properties that are not known as of the 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; risks related 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 mineral reserves; Indigenous claims and consultative issues relating to the Company s properties which are in proximity to Indigenous communities; and potential risks related to kidnapping or acts of terrorism; (B) risks relating to financial 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 few key 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 accuracy of 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 or making 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 s short-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 to operational 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 performance of the buttress at the Kumtor Project; the occurrence of further ground movements at the Kumtor Project and mechanical availability; the risk of having sufficient water to continue operations, particularly at Mount Milligan and the ability of the Company to achieve expected mill throughput for the remainder of the year; 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 with the 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 of any 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; seismic activity 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 suppliers for 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 to attract 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 to mitigate 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 Company s most recently filed Annual Information Form available on SEDAR at 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 may ultimately 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 and technological 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 can give 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 be expressed 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, and prospective investors should not place undue reliance on forward looking information. Forward-looking information is as of November 1, Centerra assumes no obligation to update or revise forward looking information to reflect changes in assumptions, changes in circumstances 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 and Chief 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 For more information, please refer to the properties technical reports, which are available on SEDAR. All figures are in United States dollars unless otherwise stated. 2

3 Centerra: Built For Success Corporate Highlights Consensus Asset NAV Breakdown Two Cornerstone Lower-Cost Quartile Assets 2017 Gold Production 785koz at AISC 1 of $688 per ounce and 53.6M lbs of copper Öksüt Construction on Track, Gold Pour Expected Q1, 2020 Turkey 10% U.S. 2% Sold Royalty Portfolio for US$155MM and a US$45MM Silver Stream on Kemess Project 2 Received Mines Act Permit and Effluent Discharge Permit for Kemess Project Kyrgyz Republic 34% Canada 54% Sold Mongolian Business Unit 3 Profitably Growing Gold Production Significant Operational Cash Flow Profile Solid Late-Stage Development Pipeline Trading at a Discount to Peers, Potential for Re-Rating Ounces (000 s) 1,000 Positive Retained Earnings of US$1,124MM 4 Expected 2018 production of up to 705kozpa gold at AISC 1 of $782 to $829 per ounce and 40 to 47M lbs of copper 0 Kumtor Mt Milligan Oksut Kemess UG Greenstone Total 1. All-in sustaining costs per ounce sold (AISC) is a non-gaap measure discussed under Non-GAAP Measures in the Company s MD&A & News Release October 31, e AISC: Kumtor $700 to $750/oz, Mount Milligan $825 to $875/oz. 2. Refer to Company s news releases May 17, 2018 and June 27, Refer to Company s news release October 12, As at September 30,

4 Centerra: Q Corporate Update YTD Cash Flow (US$MM s) Liquidity Profile Sept.30, 2018 (US$MM s) US$545MM YE Cash Proceeds from sale of Royalties AMI Acquisition Mt Milligan Kumtor Dev Projects, G&A, Debt Repayments & Other Net Cash Position 1 (US$MM s) Q3 Cash 2 3 Cash Reserves Revolver Credit Facility Oksut Credit Facility Retained Earnings Profile (US$) (50) (100) (150) (200) (250) 119 (142) Q Retained Earnings Cumulative Dividends Gold Price 1 Includes cash and cash equivalents, short-term investments and excludes $27MM restricted cash at September 30, Represents the Company s cash position at September 30, 2018, excluding $27MM restricted cash. 3 Undrawn amounts of the $150MM Öksüt credit facility and the $500MM corporate credit facility as at September 30, US$ Millions 1,400 1,200 1, ,000 1,600 1, Gold Price (US$/oz) 4

5 Centerra: Lower-Cost Asset Base AISC Industry Curve (By-Product Basis) $2,500 25% 50% 75% 100% $2,250 AISC, net (US$/oz Au) $2,000 $1,750 $1,500 $1,250 $1,000 $750 $500 $250 Kemess Underground (US$244/oz) (1) Öksüt (US$490/oz) (2) Kumtor (US$ /oz) Centerra Gold (US$ /oz Au) Mount Milligan (US$ /oz) $ ,100 16,008 23,666 30,082 36,417 39,898 42,962 Cumulative Gold Production (koz Au) Source: SNL Metals. Notes: Centerra AISC figures based on 2018 cost guidance, unless noted. 1. Kemess Underground AISC based on LOM plan as per National Instrument technical report dated July 12, 2017 for Kemess Underground and Kemess East available in the AuRico Metals filings on SEDAR 2. Öksüt AISC based on LOM plan as per the NI Technical Report On The Öksüt Gold Project, Turkey dated September 3,

6 Centerra: Q Corporate Highlights Safety Continue to Roll Out Phase 2 of Work Safe Home Safe Öksüt Project Construction Progressing On Time and On Budget Received Access to Additional Short-term Water Sources at Mount Milligan Made Applications for Medium-term (3-year) Additional/Extended Water Sources Mount Milligan Achieved Average Throughput of 55,000 tonnes per operating day in Quarter Kemess Underground Project Received Effluent Discharge Permit Achieved Q Net Earnings of $6MM or 2 Cents Per Share, (basic) Adjusted Earnings 1 in Q $14.5MM or 5 Cents Per Share, (basic) Gold Production of 181,243 Ounces and Copper Production of 12.7 Million Pounds Centerra s Q All-In Sustaining Cost1 on a by-product basis $698 Per Ounce Cash Provided by Operations Before Working Capital Changes1 of $67.1MM ($0.23 per share) September 30, 2018 Total Liquidity $545 MM2 Increased 2018 Gold Production Guidance to 685,000 ounces (mid-point) Lowered Full Year All-in Sustaining Cost 1 on a by-product basis to $805 per ounce (mid-point) Sold Mongolian Business Unit for $35MM, closed October 11, Non-GAAP measure and is discussed under Non-GAAP Measures in the Company s MD&A and News Release dated October 31, Includes cash, cash equivalents of $195MM and excludes restricted cash of $27MM at September 30,

7 Centerra: Leading Capital Efficiency and Profitability Last 3Y Return on Invested Capital (%) Last 3Y Return on Capital (%) Last 3Y Return on Equity (%) OceanaGold 11% OceanaGold 10% OceanaGold 12% Centerra 8% Centerra 8% Centerra 9% Alacer 5% Alacer 6% B2Gold 6% B2Gold 5% B2Gold 4% Alacer 5% Detour 4% Detour 3% Detour 3% New Gold 3% Kinross 3% Kinross 2% Kinross 2% New Gold 2% Yamana 1% Yamana 2% Yamana 2% New Gold 1% Eldorado 0% IAMGOLD 1% Eldorado 1% Alamos 0% Eldorado (0%) IAMGOLD (0%) IAMGOLD (0%) Alamos (1%) Alamos (1%) (1) Source: Bloomberg as per Q

8 Centerra: Growing Intrinsic Value Shares Outstanding (MM's) Reserves Per 1,000 Shares Production Per 1,000 Shares , All-In Sustaining Cost (1) (US$/oz) (0.20) (0.40) Company-Wide After-Tax Earnings Per Share (US$) (0.19) Company-Wide Operating Cash Flow Per Share (US$) (0.60) (1) Non-GAAP measure and is discussed under Non-GAAP Measures in the Company s MD&A and News Release October 31,

9 Mount Milligan: Long Life, Low Cost Gold Copper Mine E Guidance Gold Production (koz) Copper Production (Mlbs) All-In Sustaining Costs (US$/oz) (1) $509 $505 $825-$875 Sustaining Capital ($MM) (1) NA $30 $52 Remaining reserve life (years) +20 Gold Copper P&P Reserves (2) 5.1Moz 1,938Mlbs Grade 0.3g/t 0.188% Royal Gold Stream US$435/oz 15% of spot Cu price Significant Open Pit Gold and Copper Production Significant Gold and Copper Production 2017 generated $127MM free cash flow (1) 20+ years of production from existing P&P reserves (2) 5.1M gold reserve ounces (2) Low cost, long life production Stable, mining-friendly jurisdiction Gold ounces (000 s) Copper M lbs Tax loss pools, no cash taxes until 2022/ E E GOLD COPPER (1) Non-GAAP measure and is discussed under Non-GAAP Measures in the Company s MD&A and News Release October 31, AISC is for the period Oct.20 to Dec.31, (2) Refer to February 8, 2018 mineral reserves and resources news release. 0 9

10 Kumtor: World Class Open Pit Gold Mine E Guidance Gold Production (koz) All-In Sustaining Costs ($/oz) (1) $640 $698 $700-$750 Sustaining Capital ($MM) (1) $61 $61 $41 Growth Capital ($MM) (1) $15 $18 $17 Projected Asset Life (years) +8 Reserves (2) (Moz) 4.5 Au Grade (g/t) 2.4 Resources M&I (2) (Moz) 2.6 Au Grade (g/t) 2.8 World Class Cornerstone Asset Significant Open Pit Gold Production to generated $188MM free cash flow (1) 21 years of uninterrupted profitable production U/G miners U/G miners More than 4M ounces remaining in open pit reserves 207 Low cost, YE long target of life production U/G miners 4,000tpd Underground 170opportunity (inferred 7.3 g/t) 2 U/G miners Ounces 650, , , grade g/t Strong stable platform to grow Centerra 200, (1) Non-GAAP measure and is discussed under Non-GAAP Measures in the Company s MD&A and News Release October 31, (2) Refer to February 8, 2018 mineral reserves and resources news release. 10

11 Öksüt: Funded High Margin Gold Production 2015 Feasibility Highlights Mine Type Avg. LOM Annual Production Open Pit, Heap Leach 110koz Au Avg. LOM AISC (1) (US$/oz) $490 Reserve Mine Life 8 years Development Capex (US$MM) $221 LOM Sustaining Capital (1) (US$MM) $10 P&P Reserves (2) (Moz) 1.2 Öksüt Gold Project Au grade (g/t) (2) 1.3 Life of Mine Strip Ratio (w:o) 2:1 First Gold Pour Q Catalyst Schedule Overview of Office Area EIA approval received in November 2015 Forestry Permit & GSM License received July 2016 Pastureland Permit received January 2018 Investment Incentive Certificate received February 2018 Construction on track for Q gold pour Bought back Stratex and Teck royalties US$150MM low-cost +5-year financing in-place (1) Non-GAAP measure see Non-GAAP Measures in the MD&A and News Release of October 31, (2) Refer to February 8, 2018 news release and Technical Report on Öksüt Gold Project dated September 3,

12 Öksüt - Q Construction Update Installing Road Barriers Crusher Area Construction Primary Crusher Retaining Wall Secondary Crusher Foundations ADR Plant Area Construction Electric Sub-Station Construction 12

13 Kemess: Site Layout C$1Billion of Infrastructure Fly-in, Fly-out Work Camp South Open Pit (Tailings Storage Facility) Metallurgical Facility Kemess Underground & East Deposits 13

14 Kemess: De-Risked Brownfield Project (1) Established mining jurisdiction Advanced-stage EA Approved, IBA in hand, Amended Mines Act Permit (construction permit) received, Effluent Discharge Permit received, FS complete Low-risk brownfield development C$1 billion of existing infrastructure 25,000 tpd mill, road, power, tailings, rail load-out, camp, airstrip Prince Rupert Terrace Kemess Project Smithers Takla Landing Endako Kwadacha (Fort Ware) Tsay Keh Mount Milligan Fort St. James Mackenzie Prince George Kemess Project Omineca Resource Access Road Forest Service Road Kilometers Dawson Creek Sizeable resource 1 Kemess Underground (2) : P&P of 1.9Moz gold and 0.6Blbs copper and M&I (including P&P) of 3.3Moz gold and 1.2Blbs copper Kemess East (3) : M&I of 1.7Moz Au and 1.0Blbs Cu Long life 12 years at Kemess Underground plus a further 12 years at Kemess East Highly marketable clean concentrate Kemess Underground significant upside Expected Catalyst Schedule Kemess Underground EA Approval Received Q First Nations IBA Received Q Kemess Underground Permit Received July 2018 Effluent Discharge Permit Received September 2018 Last Normal Course Permits Anticipated Q (1) Refer to National Instrument technical report dated July 12, 2017 Technical Report for the Kemess Underground and Kemess East Project, British Columbia, Canada, available in the AuRico Metals filings on SEDAR. Kemess East Project (KE) preliminary economic assessment (PEA) is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. (2) Kemess Underground P&P reserves are estimated using a gold price of $1,200 per ounce, copper price of $2.50 per pound, an exchange rate of 1USD:1.33CAD and an NSR cut-off of C$17.30 per tonne. M&I resources are estimated using a gold price of $1,275 per ounce, copper price of $3.20 per pound, an exchange rate of 1USD:1.33CAD and an NSR cut-off of C$15.00 per tonne. (3) Kemess East resources are estimated using a gold price of $1,275 per ounce, copper price of $3.20 per pound, an exchange rate of 1USD:1.32CAD and an NSR cut-off of C$17.30 per tonne. 14

15 Kemess: Large, Low-Cost Production Kemess Underground 2016 Feasibility Highlights (1) Mine Type Underground Block Cave Avg. LOM Gold Production (koz) 106 Avg. LOM By-Product AISC (US$/oz) (2) $244 Reserve Mine Life (years) 12 Development Capex (C$MM) (3) $604 P&P Au Reserves (Moz) (4) 1.9 P&P Au Reserve Grade (g/t) 0.54 P&P Cu Reserves (Mlbs) (4) P&P Cu Reserve Grade (%) 0.27% After-tax NPV 5% (C$MM) $258 Kemess East 2017 PEA Highlights (1) Mine Type Underground Panel Cave Avg. LOM Gold Production (koz) 80 Avg. LOM By-Product AISC (US$/oz) (2) ($69) Reserve Mine Life (years) 12 Development Capex (C$MM) $327 M&I Au Resource (Moz) (5) 1.7 M&I Au Grade (g/t) 0.46 M&I Cu Resource (Mlbs) (5) M&I Cu Grade (%) 0.38% After-tax NPV 5% (C$MM) $ KUG Gold and Copper Production (1) KE Gold and Copper Production (1) 80 Gold (koz) Copper (Mlbs) Gold (koz) Copper (Mlbs) -- Y-2 Y-1 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 -- Project Schedule Year Project Schedule Year Au Cu Au Cu (1) Refer to National Instrument technical report dated July 12, 2017 Technical Report for the Kemess Underground and Kemess East Project, British Columbia, Canada, available in the AuRico Metals filings on SEDAR. A preliminary economic assessment (PEA) is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. (2) AISC is a Non-GAAP measure (3) Includes pre-commercial net revenue and capitalized pre-production operating expenditures. (4) Kemess Underground reserves are estimated using a gold price of $1,200 per ounce, copper price of $2.50 per pound, an exchange rate of 1USD:1.33CAD and an NSR cut-off of C$17.30 per tonne. (5) Kemess East resources are estimated using a gold price of $1,275 per ounce, copper price of $3.20 per pound, an exchange rate of 1USD:1.32CAD and an NSR cut-off of C$17.30 per tonne Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 0

16 Kemess: Timeline And Copper Outlook Kemess Timeline Federal and Provincial EA Approvals KUG Impact Benefit Agreement Signed Normal Course Permitting Detailed Engineering Access Corridor Development Decline Development Develop Block Cave First Production Copper Outlook 25 Deficit 20 Large ~6Mt deficit expected by 2030 Mt 15 Source: Wood Mackenzie Base Probable Projects Primary Demand 16

17 Centerra: Potential Upside Optionality - Molybdenum Molybdenum Price Movement Thompson Creek Mine $ USD per Pound Jul-16 Sep-16 Nov-16 Jan-17 Mar-17May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18May-18 Jul-18 Sep-18 Historical Molybdenum Segment EBITDA (1) (US$MM) $444 $269 $265 $126 $126 $124 $18 ($21) 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 onsite 25,500 tpd mill In December, 2014 placed on care and maintenance Endako Mine 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, producing a suite of premium molybdenum products Cash flows from the Langeloth operations are expected to cover care and maintenance expenses associated with the molybdenum mines (1) Prior to intersegment eliminations. Historical EBITDA not reported, therefore calculated based on historical segment disclosure. 17

18 Centerra: Lower-Cost Asset Base AISC Industry Curve (By-Product Basis) $2,500 25% 50% 75% 100% $2,250 AISC, net (US$/oz Au) $2,000 $1,750 $1,500 $1,250 $1,000 $750 $500 $250 Kemess Underground (US$244/oz) (1) Öksüt (US$490/oz) (2) Kumtor (US$ /oz) Centerra Gold (US$ /oz Au) Mount Milligan (US$ /oz) $ ,100 16,008 23,666 30,082 36,417 39,898 42,962 Cumulative Gold Production (koz Au) Source: SNL Metals. Notes: Centerra AISC figures based on 2018 cost guidance, unless noted. 1. Kemess Underground AISC based on LOM plan as per National Instrument technical report dated July 12, 2017 for Kemess Underground and Kemess East available in the AuRico Metals filings on SEDAR 2. Öksüt AISC based on LOM plan as per the NI Technical Report On The Öksüt Gold Project, Turkey dated September 3,

19 Appendix TSX: CG

20 Centerra: High-Quality Producing and Growth Assets Mount Milligan Mine Au, Cu Canada Greenstone Project (50%) Au Canada Kumtor Mine Au Kyrgyz Republic Kemess Underground and East Projects Au, Cu Canada Operations Development Molybdenum Asset Öksüt Project Au Turkey 20

21 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 Open pit reserves (1) (100%) 4.7Moz 1.02 g/t Greenstone Development Project Location: Ontario, Canada Historic gold production of 4.12M oz (~ ) Large land package covers 337km 2, good infrastructure Significant exploration and underground resource potential 2017 final EIS/EA filed, mine permitting and IBA work underway Greenstone Gold Property Brookbank Deposit Geraldton Hardrock Deposit Beardmore Beardmore Geraldton Greenstone Belt +110 km 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) $101 P&P Reserves (1) (Moz) 4.7 Au grade (g/t) 1.02 Life of Mine Recovery 90% Life of Mine Strip Ratio (w:o) 3.87:1 NPV (5%) - after tax (US$MM) ~$545 Projected Gold Production (100%) (1) See Technical Report on the Hardrock Project dated December 21, (2) Non-GAAP measure, see Non-GAAP Measures in Company s MD&A and News Release October 31,

22 Centerra: Asset Breakdown 2017 Free Cash Flow (US$MM s) (1) Consensus Asset NAV Consensus Asset NAV (US$MM s) Mount Milligan $127 Kumtor $188 Öksüt 9% Other 6% Langeloth 2% Greenstone 5% Mt. Milligan 36% Mount Milligan $1,001 Kumtor $916 Kemess $290 Kemess 10% Öksüt $256 Greenstone Kumtor 32% $140 Langeloth $47 Source: Centerra Gold, analyst estimates. (1) Mount Milligan and Kumtor free cash flow figures are non-gaap measures discussed under Non-GAAP Measures in the Company s MD&A and News Release February 23,

23 Centerra: 2017 Results : Internally Funded Business (US$MM s) Positive Net Cash Position 1 (US$MM s) Cash Mt Milligan FCF Kumtor FCF Debt Repayments Other (Projects, G&A, etc) 2017 Cash Liquidity Profile (US$MM s) $417 US$752MM $335 Cash Reserves Undrawn Credit Facilities 2 3 Retained Earnings Profile (US$) (25) 119 Cash $542MM (50) 400 (75) (100) (96) 0 (125) Retained Earnings Cumulative Dividends Gold Price 1 Includes cash and cash equivalents, restricted cash and short-term investments at December 31, 2016 and at December 31, Represents the Company s cash position at December 31, 2017 of $417 million. 3 A combination of the $150MM undrawn Öksüt credit facility and the $185MM undrawn amount from the Centerra BC credit facility as at December 31, US$ Millions 1,400 1,200 1, ,000 1,600 1, Gold Price (US$/oz) 23

24 Centerra: Q Operating Highlights Q gold production - Kumtor 122,445 ounces, Mount Milligan 58,798 ounces Q copper production - Mount Milligan 12,704,000 pounds Mount Milligan throughput averaged 40,805 tpd (55,000 tonnes per operating day) Increased gold production guidance at Kumtor to 490, ,000 oz Revised Kumtor s all-in sustaining costs on a by-product basis per ounce sold 2 to $700 - $750 Öksüt Project construction 26% complete, progressing on time and budget Kemess Project received effluent discharge permit Q Q Gold ounces produced (1) 181, ,201 Copper produced (000 s payable lbs) (1) 12,704 13,677 Kumtor All-in Sustaining Costs per ounce sold (2) $662 $806 Mount Milligan All-in Sustaining Costs on a by-product basis per ounce sold (1),(2) $677 $442 Consolidated All-in Sustaining Costs on a by-product basis per ounce sold (1),(2) $698 $ Mount Milligan numbers 100% basis. 2. Non-GAAP measure and is discussed under Non-GAAP Measures in the Company s MD&A and News Release dated October 31,

25 Centerra: Q Mount Milligan - Update Significant Improvement in Maintenance at Mount Milligan Operated Mill at roughly 55,000 tonnes per operating day during quarter Gold and Copper Recoveries Continue to Improve Year-to-date Received Access to Additional Short-term Water Sources at Mount Milligan Made Applications for Medium-term (3-year) Additional/Extended Water Sources Applied to further extend pumping from Philip Lake for winter period As water flow rates decline in Q4 and balance of winter season, mill expected to reduce throughput to properly manage water balance until spring runoff Reaffirm annual production guidance 25

26 Mount Milligan: Short-term Water Sources 26

27 Mount Milligan: Q Exploration C. Paul Jago, a Member of the Engineers and Geoscientists British Columbia, is Centerra s qualified person for the purpose of National Instrument

28 Mount Milligan: Q Exploration C. Paul Jago, a Member of the Engineers and Geoscientists British Columbia, is Centerra s qualified person for the purpose of National Instrument

29 Centerra: Q Financial Highlights 1 (in thousands, except ounces, per share amounts, and average realized price 2 ) Quarter Ended Sept 30, 2018 Quarter Ended Sept 30, 2017 Revenue $259,099 $276,237 Total gold ounces sold 166, ,099 Total copper pounds sold (000 s) 13,605 18,644 Operating cash flow before changes in working capital (2) $67,083 $108,027 Cash provided by (used in) operations $37,569 $119,454 Net earnings (loss) $5,992 $(841) Adjusted earnings (2) $14,469 $52,298 Adjusted earnings per share, basic $0.05 $0.18 Average realized gold price per ounce (2) $1,123 $1,142 Average realized copper price per pound (2) $2.01 $ U.S. dollars 2. Non-GAAP measure and is discussed under Non-GAAP Measures in the Company s MD&A and News Release dated October 31,

30 Centerra: Q Other Financial Highlights Gold Sales of 166,716 ounces / Copper Sales of 13.6 million pounds in Q3, 2018 Consolidated Third Quarter 2018 AISC 1 of $698 per ounce Q3, 2018 AISC 1 of $662 per ounce at Kumtor and $677 per ounce at Mount Milligan Liquidity of $545 Million Cash Provided by Operations Before Working Capital Changes 1 $67.1 Million ($0.23 per share) Cash and Debt Profile Liquidity Profile Sept.30, 2018 US$MM US$ Millions $195 $545MM $350 0 Dec Mar Jun Sep Dec Mar Jun Sep Cash Reserves Undrawn Credit Facilities Total Debt Cash 2 1 Non-GAAP measure and is discussed under Non-GAAP Measures in the Company s MD&A and News Release dated October 31, Represents the Company s cash position excluding $27MM restricted cash at September 30, A combination of the $101MM undrawn Öksüt credit facility and the $249MM undrawn amount from the corporate credit facility as at September 30,

31 Kemess: Overview Kemess Underground (Feasibility 2016) (1) Reserves of 1.9Moz Au and 0.6Blbs Cu LOM of 12 years at 106koz Au/p.a. and 47Mlbs/p.a. at AISC (2) of $244/oz on a by-product basis Environmental approvals and IBA received Received Mines Act Permit Awaiting normal course permits Kemess East (PEA May 2017) (1) M&I resources of 1.7Moz and 1.0Blbs Cu LOM of 12 years at 80koz Au/p.a. and 57Mlbs/p.a. at AISC (2) of (US$69/oz) on a by-product basis Kemess South (Past Producer: ) ~C$1 billion of infrastructure in-place (including a 25,000 tpd mill, grid power, road, maintenance shop, etc.) Past production of 3.0Moz Au and 750Mlbs Cu Brownfields opportunity significantly reduces risk (1) Refer to National Instrument technical report dated July 12, 2017 Technical Report for the Kemess Underground and Kemess East Project, British Columbia, Canada, available in the AuRico Metals filings on SEDAR. A preliminary economic assessment (PEA) is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. (2) AISC is a Non-GAAP measure. 31

32 Centerra: Q3 Revised 2018 Guidance 2018 Production Guidance Units Kumtor Mount Milligan (1) Centerra Gold Total Gold Payable Production (2) (Koz) Copper Total Copper Payable Production (3) (Mlb) All-in Sustaining Unit Costs (5) Kumtor Mount Milligan (1) Centerra (1) Ounces sold forecast 490, , , , , ,000 All-in sustaining costs on a by-product basis (2), (5) $700 $750 $825 $875 $782 $829 Revenue-based tax (4) and taxes (4) All-in sustaining costs on a by-product basis including taxes (1), (4), (5) $874 $931 $842 $893 $913 $968 Gold - All-in sustaining costs on a co-product basis ($/ounce) (1),(5) $700 $750 $820 $914 $786 $833 Copper - All-in sustaining costs on a co-product basis ($/pound) (1),(5) $1.91 $2.24 $1.91 $2.24 Capital Expenditures 2018 Sustaining Capital (5) 2018 Growth Capital (5) ($ millions) ($ millions) Kumtor Mine Mount Milligan Mine 52 - Öksüt Project - 62 Kemess Underground Project - 33 Greenstone Gold Property - 11 Other (Thompson Creek mine, Endako mine (75%), Langeloth facility and Corporate) 1 - Consolidated Total $94 $123 1) Mount Milligan payable production and ounces sold are on a 100% basis (the Mount Milligan Streaming Arrangement entitles Royal Gold to 35% and 18.75% of gold and copper sales, respectively and Royal Gold will pay $435 per ounce of gold delivered and 15% of the spot price per metric tonne of copper delivered). The copper sales are based on a copper price assumption of $2.70 per pound sold for Centerra s 81.25% share of copper production and the remaining 18.75% of copper revenue at $0.41 per pound (15% of spot price, assuming spot at $2.70 per pound), representing the Mount Milligan Streaming Arrangement. Payable production for copper and gold reflects estimated metallurgical losses resulting from handling of the concentrate and payable metal deductions, subject to metal content, levied by smelters. 2) Gold production assumes 76% recovery at Kumtor and 61% recovery at Mount Milligan. 3) Copper production assumes 79% recovery for copper at Mount Milligan. 4) Includes revenue-based tax at Kumtor and the British Columbia mineral tax at Mount Milligan based on a forecast gold price assumption of $1,200 per ounce sold 5) Non-GAAP measures and are discussed under Non-GAAP Measures in the MD&A and News Release dated October 31,

33 Centerra: 2018 Guidance Sensitivities Change Impact on ($ millions) Costs Revenues Cash flows Net Earnings (after tax) Impact on ($ per ounce sold) AISC (3) on by-product basis Gold price (1) $50/oz Copper price (1) 10% Diesel fuel 10% Kyrgyz som (2) 1 som Canadian dollar (2) 10 cents Gold and copper price sensitivities include the impact of the hedging program set up in order to mitigate gold and copper price risks. 2 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. 3 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 Oct. 31, Material Assumptions and Risks 1 Material assumptions or factors used to forecast production and costs for 2018 include the following: a gold price of $1,200 per ounce, a copper price of $2.70 per pound, a molybdenum price of $12 per pound, exchange rates: $1USD:$1.27 CAD, $1USD:70.0 Kyrgyz som, $1USD:5.00 Turkish lira, $1USD:0.80 Euro, diesel fuel price assumption: $0.52/litre at Kumtor, $0.87/litre at Mount Milligan. 1 Other material assumptions and risks are discussed under Material Assumptions and Risks in the Company s MD&A and News Release dated October 31,

34 Centerra: Mineral Reserves - Proven & Probable 1 Proven and Probable Gold Mineral Reserves Increase to 16.3 million ounces Proven and Probable Copper Mineral Reserves are 2,568 million pounds Property Tonnes (kt) Gold Mineral Reserves Proven Probable Total Proven and Probable Grade (g/t) Contained Gold (koz) Tonnes (kt) 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) Mount Milligan 236, , , ,938 Kemess Underground , , Total 236, , , , , ) As at December 31, 2017, includes Kemess Project following the completion of the AuRico Metals acquisition, see Mineral Reserves and Resources News Release February 8, Grade (g/t) Contained Gold (koz) Tonnes (kt) Grade (g/t) Contained Gold (koz) Mount Milligan 236, , , , , ,138 Kumtor 10, , , , ,489 Öksüt , ,187 28, ,187 Gatsuurt , ,316 15, ,316 Hardrock Open Pit , ,324 70, ,324 Kemess Underground , , , ,868 Total 246, , , , , ,321

35 Centerra: Investor Relations Highlights Research Coverage Brokerage Firms Rating Target 1. BMO Capital Markets Buy C$ BofA Merrill Lynch Neutral C$ Canaccord Genuity Buy C$ CIBC World Markets Hold C$ Cormark Securities Buy C$ Global Mining Research Speculative Buy C$ Halyk Finance Buy C$ Macquarie Capital Markets Outperform C$ National Bank Financial Hold C$ Raymond James Market Perform C$ RBC Capital Markets Under Perform C$ Scotiabank Sector Perform C$ TD Securities Hold C$6.50 Average C$7.87 Top Ten (10) Institutional Shareholders Institution/Firm Sept Van Eck Associates 10.62% 2. Blackrock 10.24% 3. Dimensional Fund Advisors 3.34% 4. Franklin Advisors 2.24% 5. Kopernik Global 1.74% 6. Vanguard Group 1.68% 7. Ruffer LLP 1.38% 8. USAA 1.12% 9. Heartland Advisors 1.03% 10. Capital Research Global Investors 1.00% TOTAL 34.39% 35

36 Centerra: Directors 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 ASKAR OSKOMBAEV Director Appointed Director of Centerra s Board, May 2018 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 BEKTUR SAGYNOV Director Appointed Director of Centerra s Board, March 2016 SUSAN YURKOVICH Director Appointed Director of Centerra s Board, May

37 TSX: CG