Centerra Gold Inc. 17th Annual Midwest IDEAS Conference

Good morning, everyone. Welcome to the 17th Annual Midwest IDEAS Conference. I am John McNamara with Three Part Advisors. Our first presentation of the morning is Centerra Gold. Centerra is a Canadian-based gold mining company with operations across Canada, the U.S., and Turkey. The shares are dual listed on the Toronto Stock Exchange under the symbol CG, and on the New York Stock Exchange under the symbol CGAU. With us for management is Lisa Wilkinson, VP of IR.

Lisa. Thank you so much, and good morning.

Thanks for joining today. My name is Lisa Wilkinson. I am the VP of IR at Centerra, and I have been with the company for just over three years. Actually, before I get started, we will be making forward-looking statements. Centerra is a mining company based in Toronto, and we mine gold, copper, and molybdenum. This slide here shows our assets on a map. Our first mine is our flagship operation is Mount Milligan in British Columbia. It is a gold copper asset that produces 140,000-155,000 ounces of gold and 50-60 million pounds of copper. Our second asset is Öksüt in Turkey. It is also in production, generating 120,000-135,000 ounces of gold. Aside from our producing assets, we also have a growth portfolio.

We have two growth projects that will bring us growth in gold and gold in copper. Goldfield in Nevada is our next asset to come online. It is going to come online in 2028. It is a gold heap leach project, open pit, fairly straightforward, and I will get into some of those details in a moment. Kemess is a gold copper project, very similar in size and scale to Mount Milligan. It is a little bit further out. We are in the study phase right now, but based on our preliminary economic assessment we published in January, we expect our production to start in late 2031. We also have a suite of molybdenum assets. Molybdenum is used as a strengthening agent in high-performance steel, so it has applications in pipelines, aerospace, defense, and green energy. We have two molybdenum mines, pure molybdenum mines, Thompson Creek in Idaho and Endako in British Columbia.

We also have a roaster based in Pittsburgh, which is where we will ship our concentrate from Thompson Creek to be roasted into final molybdenum products and sold to U.S. steel companies in and around the Pittsburgh area. That is the walkthrough of our assets. But again, we operate in very safe jurisdictions. Our focus is North America, our growth is in North America, and Öksüt in Turkey is a great place to operate. We have a very strong balance sheet. We have CAD 451 million of cash as at the end of June, and we have over CAD 1 billion of liquidity with no debt. We also are returning capital to shareholders. We have an active buyback program where we have said we would buy back CAD 200 million of shares this year, and we have been paying a quarterly dividend for the last six and a half years.

Our current dividend yield is about 1%, 1.5%. Our shares have done very well, so that has come down a little bit. Looking at the compelling value proposition, as I said, we have great operating assets producing gold and copper in good jurisdictions of North America and Turkey, with a strong management team and a lot of growth in the portfolio. However, we are trading at a discount to our peers. As you can see on the graph on this slide, we are trading at 0.5 times our net asset value compared to our peers, which are averaging 0.7 and some are even closer to one. But we believe that as we deliver on our operations, consistently execute, deliver on our growth plan, we believe we have the potential to rerate. Another way to look at our valuation is based on our resources in the ground.

You can see on the graph on the left, we have 21.4 million gold equivalent ounces of resource in the ground, which is fairly middle of the pack. However, 98% of our resources are based in Canada and the U.S., which are very safe jurisdictions. When you look at the graph on the right, you see that it is basically at the bottom in terms of a value on a per ounce basis. Again, we have a very attractive valuation in a safe jurisdiction. Three and a half years ago, we had a management turnover and we had a new management team come in place. At that point, we put in place a new strategy. We are now focused on maximizing the value of every asset in our portfolio.

Our management team systematically went through every asset in the portfolio to daylight value and show investors a path forward to realizing that value. I will walk you through each asset here as part of our strategic plan. First, at Öksüt in Turkey, it is a short mine life. It ends in 2029, but it is generating a lot of free cash flow. It has generated $780 million of free cash flow since June 2023. We are currently looking at trying to extend the mine life beyond 2029. We will have a study out later this year that is going to see what that could look like. We hope that it would be about one to two years. It is not going to be anything major like five to 10, but all of that, even the one to two years, will be very good cash flow addition for us.

At Mount Milligan, our flagship operation in British Columbia, in September of 2025, we published a pre-feasibility study that looked at adding a second tailings dam for additional capacity, which allowed us to extend our mine life by 10 years to 2045. Since that September PFS, we have delivered three consecutive quarters against that plan, and we have generated over CAD 245 million of free cash flow. The mine life extension strengthens Mount Milligan as a long-life gold copper asset in a very good jurisdiction. As part of the PFS, we are looking to increase throughput at our mill by about 10%, which should come online in 2028. Next, moving to our molybdenum assets. We published a strategic plan for our US Moly assets, which include Thompson Creek, which is the pure molybdenum mine in Idaho, and the roaster in Langeloth. We published a plan that looks at restarting Thompson Creek.

It's a past operating mine with infrastructure already in place. We look at restarting that and then shipping that concentrate to Langeloth to be roasted into final molybdenum product. There is strong synergies between the two, shipping the concentrate from the mine to the roaster in Pittsburgh, and the economics were very strong, and we moved forward with that plan. It's a three-year restart for Thompson Creek, which started in 2024, and we are only one year away from first production, starting in mid-2027. Now shifting to the rest of the portfolio, which is more of our growth. Last August, we announced our Goldfield project and that we were moving forward with that growth in gold. Goldfield is located in Nevada, which is a very mineral-rich jurisdiction. It has an attractive economics in a top-tier mining jurisdiction.

Seven-year mine life, so it's quite short, but there is a large land package that we own where we are continuing to explore, and there's a lot of junior mining companies in the area where we could look to consolidate the region. Production would be about 100,000 ounces for the peak years of, there's four peak years, with a fairly low all-in sustaining cost of $1,392. The key here is the initial CapEx is quite low at $252 million to bring this mine online. Again, first production is scheduled for late 2028, and this is going to be our first pure gold growth that we will be bringing online in our portfolio. The next project we have is Kemess.

As I said earlier, it is very similar in size and scale to Mount Milligan, and it's a strategic opportunity for us to build a second long-life gold copper asset in British Columbia. We published a preliminary economic assessment that shows an initial 15-year mine life, annual production of about 171,000 ounces of gold and 61 million pounds of copper at an all-in sustaining cost of $971, which is quite low for the industry peers. The initial CapEx to bring that mine online is $771 million. We are continuing to study Kemess. We have to go through a pre-feasibility study and then a feasibility study before we make a decision on starting construction. Our PFS is expected to be completed by mid-2027. We also have exploration in our portfolio to help us with growth.

We are focused on brownfield exploration around the assets we currently operate, Mount Milligan and then our project of Kemess. We've had very encouraging results, and we continue to explore in those areas. We also have a greenfield and generative exploration program that's focused on the jurisdictions we currently operate, which is Canada, the U.S., and Turkey, and we have had some good findings. We are quite positive that that will lead to some prospects in the future. We are making strategic equity investments in junior mining companies, including Thesis Gold and Silver and Liberty Gold, and these would complement our internal exploration programs and provide that longer-term prospectivity that we may be able to acquire one of those assets in the future. Our full exploration guidance is $40 million-$50 million for the year.

After walking through our strategic plan, this essentially is Centerra on a page. Mount Milligan, you can see, is our current operating asset, gold and copper, 20-year mine life. You can see the bar at the end, exploration potential. We believe there is mineralization in the ground for multiple decades of production beyond 2045. At Öksüt, again, I said it was a short mine life to 2029, but we are looking to see if we can extend that by one to two years, and there will also be residual leach, because with the leach pad, we believe there's gold still left on the pads, and if we can re-rinse that, we will get some additional production as well. At Goldfield, that's our project coming online. You can see it starts in late 2028. We have about CAD 233 million of CapEx remaining.