21st annual bmo capital markets global metals & …...global metals & mining conference,...

21st

Annual BMO Capital Markets

Global Metals & Mining Conference, February 2012

Steve LangPresident and Chief Executive Officer

Caution Regarding Forward-Looking InformationThis presentation and the documents referred to herein contain statements which are not statements of current or historical facts and are “forward-looking information”

within the meaning of applicable 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”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule”

and similar expressions identify forward-looking information. These forward-looking statements relate to, among other things, the Company’s expectations regarding future growth, results of operations, future production and sales, operating capital expenditures, and performance; expected trends in the gold market, including with respect to costs of gold production; capital and operational expenses for 2012 and the ability to fund them from cash flow or to access public markets (and its ability to do so successfully); exploration plans for 2012 and the success thereof; mining plans at each of the Company’s operations; the receipt of permitting and regulatory approvals

at the Company’s Gatsuurt development property; the impact of the Water and Forest Law on the Company’s Mongolian activities; the application of the new graduated royalty fee regime under the 2006 Mongolian Minerals Law to the Company’s Mongolian properties; permitting of the Company’s heap leach activities at the Boroo mine; anticipated delays and approvals and regulatory commissioning of the Company’s Gatsuurt development property as a result of the Water and Forest Law; the continued success with

the management of ice and water movement at Kumtor; the Company’s business and political environment and business prospects; and the timing and development of new deposits.

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. Material assumptions used to forecast production and costs include those described under the heading “2012 Outlook”

in the news release of February 23, 2012. Factors that could cause actual results or events to differ materially from current

expectations include, among other things: the sensitivity of the Company’s business to the volatility of gold prices; the political risks

associated with the Company’s principal operations in the Kyrgyz Republic and Mongolia; the impact of changes in, or more oppressive enforcement of, laws, regulations and government practices in the jurisdictions in which the Company operates; the effect of the 2006 Mongolian Minerals Law; the effect of the November 2010 amendments to the 2006 Mongolian Minerals Law on the royalty payments payable in connection with the Company’s Mongolian operations; the effect of the Water and Forest Law on the Company’s operations in Mongolia; the impact of continued scrutiny from Mongolian regulatory authorities; the impact of changes to, or the increased enforcement of, environmental laws and regulations relating to the Company’s operations; the Company’s ability to replace its reserves; ground movements at the Kumtor Mine; waste and ice movement at the Kumtor Mine;

any labour unrest and disturbances at the Company’s mines;

any difficulties in renegotiating collective labour agreements on terms satisfactory

to the Company; litigation; the accuracy of the Company’s reserves and resources estimate; the accuracy of the Company’s production and cost estimates; the success of the Company’s future exploration and development activities; competition for

mineral acquisition opportunities; the adequacy of the Company’s insurance; environmental, health and safety risks; defects in title in connection with the Company’s properties; the impact of restrictive covenants in the Company’s revolving credit facility; the Company’s ability to successfully renew any collective agreements and to

avoid any labour disturbances; the Company’s ability to obtain all necessary permits and commissions needed

to commence mining activity at the Gatsuurt development property; seismic activity in the vicinity of the Company’s operations in the Kyrgyz Republic and Mongolia; long lead times required for equipment and supplies given the remote location of the Company’s properties; illegal mining on the Company’s Mongolian properties; the Company’s ability to enforce its legal rights; the Company’s ability to accurately predict decommissioning and reclamation costs; the Company’s ability to obtain future financing; the impact of current global financial conditions; the impact of currency fluctuations; the effect of recent market conditions on

the Company’s short-term investments; the Company’s ability to attract and retain qualified personnel; the Company’s ability to make payments including payments of principal and interest on the Company’s debt facilities; risks associated with the conduct of joint ventures; risks associated with the Company’s largest shareholder, the Kyrgyz government; and possible director conflicts of interest. There may be other factors that cause results,

assumptions, performance, achievements, prospects or opportunities in future periods not to be as anticipated, estimated or intended. See “Risk Factors”

in the Company’s most recently filed AIF available on SEDAR at www.sedar.com.

Furthermore, market price fluctuations in gold, 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 February 23, 2012. 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.

All figures are in United States dollars unless otherwise stated.February 2012 2

http://www.sedar.com/

Kyrgyz Republic Mongolia

●

2011 gold production 642,380 oz●

2012 expected gold production of 635,000 to 685,000 oz @ cash costs of $465 to $500/oz

Russian Federation

China

Kazakhstan Mongolia

BorooGatsuurt

Ulaanbaatar

Russian Federation

Mongolia

China

Kazakhstan

Kumtor

Kyrgyz Republic

Two Solid Growth Platforms

ATO

February 2012 3

Share and Ownership Profile

●

Symbol CG on the TSX, 236,339,041 common shares issued

●

Market capitalization approximately CDN$5.2 Billion

●

Strong financial position, no debt

●

Annual dividend CDN$0.10 + 2011 special dividend CDN$0.30

Share Ownership

Kyrgyzaltyn JSC

33%

Retail shareholders

19%

Institutional shareholders

48%

February 2012 4

Strong Operating Performance

679642

635-685

Kumtor

Boroo

2010 2011 2012E

2011 Production:–

Kumtor –

583,156 oz–

Boroo –

59,224 oz

2012 Estimated Production:–

Kumtor 575,000 –

625,000 oz–

Boroo 60,000 oz

Gold Production(‘000 oz)

February 2012 5

February 2012 6

Strong Financial Performance in 2011

Gold production (‘000 oz)

642 679Total cash cost ($/oz)

$502 $440Average realized gold price ($/oz)

$1,569 $1,236

Revenues

$1,020M $850MNet Earnings $371M $322MNet Earnings per share

$1.57 $1.37

Cash from operations

$435M $281M

Cash and Short-term investments

$568M $413M

Dec. 31

2011

Dec. 31

2010

Please refer to February 23, 2012 news release, MD&A and audited

Financial Statements and Notes for the year-ended December 31, 2011 and 2010 and Caution Regarding Forward-Looking Information

Centerra –

Reserves and Ounces MinedA

u O

un

ces

( ‘0

00’s

)

Reserves

7.0 million Cumulative

Ounces Mined Since

2004

8.1 millionounces

Ian Atkinson is the Qualified Person for purposes of NI 43-101 please see Centerra’s AIF and technical reports filed on SEDAR.February 2012 7

February 2012 8

Robust Financial Metrics

Source Bloomberg, February 23, 2012

Return on Assets

Return on Equity

Return on Capital

Centerra Gold Inc. 24.01 26.49 26.50

Agnico

Eagle Mines Ltd. 6.81 10.35 9.51Barrick Gold Corp. 10.74 20.94 13.98Goldcorp Inc. 6.60 9.21 8.89Kinross Gold Corp. -12.09 -15.40 NANewmont Mining Corp. 9.50 18.94 17.75Iamgold Corp. 8.62 10.78 11.35Eldorado Gold Corp. 5.71 7.35 7.61Yamana Gold Inc. 4.51 6.45 6.50Osisko Mining Corp. -1.14 -1.45 NAAlacer Gold Corp. -14.39 -29.65 NA

Average 4.44 5.82 12.76

2011 Exploration Results

●

Spent $40 million in 2011

●

Replaced Kumtor reserves mined in 2011–

No change in pit design or cut-off grade

●

Added 400,000 oz. to Kumtor underground inferred resource

●

Initial resource statements for Kara Beldyr

(Russia) and ATO (Mongolia)

●

Strong drill results for Ortacam

(Turkey)

●

Added 2.4 million contained oz. to Reserves + M&I resources and an additional 600,000 contained oz. to Inferred resources

–

Excludes silver and base metals at ATO

February 2012 9Ian Atkinson is the Qualified Person for purposes of NI 43-101please see Centerra’s AIF and technical reports filed on SEDAR.

Expand Our Exploration

$25

$31

$40

$45

2009 2010 2011 2012E

●

Over 50% of 2012 exploration budget on our land holdings

–

Kumtor: $15M–

Mongolia: $8M–

JV’s in Russia, Turkey, and China: +$12M

●

Kumtor focus–

SB and Stockwork

Zones–

Regional drilling

●

Mongolia focus–

ATO and other land holdings

Exploration Expenditures

$M

February 2012 10

Kyrgyz Republic MongoliaRussian Federation

China

Kazakhstan Mongolia

BorooGatsuurt

Ulaanbaatar

Russian Federation

Mongolia

China

Kazakhstan

Kumtor

Kyrgyz Republic


Kumtor Reserves and ResourcesDec. 31, 2011

●

P & P –

open pit

6.3 m oz●

M & I

–

open pit

4.8 m oz●

Inferred –

open pit

0.7 m oz●

Inferred –

underground

2.4 m oz

Ian Atkinson is the Qualified Person for purposes of NI 43-101 please see Centerra’s AIF and technical reports filed on SEDAR.

●


2012 expected gold production of 575,000 to 625,000 oz @ cash costs of $430 to $465/oz

February 2012 11

K U M T O R

Concession Area

●

Area of 26,300 hectares

●

Concession expires 2042

●

14% revenue-based tax

●

2 portals in place

●

Declines advancing

1st Decline Portal2nd Decline Portal

February 2012 12

December 31st 2009

K U M T O R

Central Pit -

Longitudinal Section

Ian Atkinson is the Qualified Person for purposes of NI 43-101 please see Centerra’s AIF and technical reports filed on SEDAR.February 2012 13

December 31th 2011

KS10 Pit Design

KS11 / KS12 Pit Design

Decline 1

Decline 2StockworkDecline

Decline 1 December 31st, 2011

Decline 2 December 31st, 2011

Stockwork DeclineDecember 31st, 2011

No Data

No Data

K U M T O R

Underground Development

February 2012 14

560m

475m

620m max strike length beneath pit

width up to 50m, average approx. 20m




Approx. 1.5 kilometresApprox. 1 kilometre

Decline1 PositionDec. 31, 2011

Stockwork Decline Position

Dec. 31, 2011

Decline2 PositionDec. 31, 2011

560m

475m





1st

Portal

2nd

Portal

North

SB Underground High-Grade Zone

1.8M oz Inferred @ 13.6 g/t

Stockwork Underground Zone

0.6M oz Inferred @ 12.0 g/t

KS12 Final Pit

K U M T O R

New Exploration Areas

0 5 10kilometres

February 2012 15

Kumtor Concession 263 km2

Kumtor Central Pit

Southwest Design Pit

Sarytor Design Pit

Karasay License 125 km2

Koendy License 134 km2


25 26 km242320 21 2218 1915 16 1711 12 14138 9 104 5 6 71 2 30

3800

3400

SSEBESHMOYNOK

RIDGE

KARASAYVALLEY

KARASAYPROSPECT

TARGET

SCHEMATIC GEOLOGICAL CROSS-SECTION - LINE A-A'(vertical exaggeration 1:2)

AKSHYRAKRIDGE

KARASAYGLACIER

KUMTORDEPOSIT

4600NNW

KUMTORVALLEY

4200

NIK

OLA

EVLI

NE

ATB

ASH

I-IN

ILC

HEK

FAU

LT

S2-D1C2

S1?C3S2-D1Pg-N

D2-3S1?

VPR1?sr

C1-2 V R3-VPR1?sr

Pg-N C1

5.000

kilometers

0

Known mineralization zone

Other major Paleozoic faults

Supposed mineralization zone

Major Alpine steep faults

Recent sediments (QIII-QIV)

Major Alpine thrust

Major Paleozoic thrust

Glacier

Ophiolitic melange (O?)

Sericitic shale (S2-D1); hornfels

Basalt (S2-D1); hornfels

Specled shale (O3-S1?)

Quartz-biotite schist, metabasalt (O-S1?)

Limestone (C1-2); sandstone (C1)

Red clay, conglomerate-breccia (Pg-N) Red-brown conglomerate (C2)

Marblized limestone with gypsum (D2-3)

Arkoses, tuffs, basalts, rhyolites (R3-V) Granite, granodiorite (C3)

Middle Tien-Shan South Tien-Shan

Gneiss, marble, schists (PR1)

Alpine tectonic melange

Ore-bearing rocks - phyllites (Cm-V)

Black cherty, limestone (Cm2-O1)

Granite, diorite (PR?sr)

Aulerolite (O1-2)

Sandstone (O2-3)

Legend:

5SCHEMATIC GEOLOGICAL CROSS-SECTION, LINE A-A’

KUMTORDEPOSIT

KARASAYPROSPECT

TARGET

K U M T O R

Karasay Prospect

February 2012 16Ian Atkinson is the Qualified Person for purposes of NI 43-101 please see Centerra’s AIF and technical reports filed on SEDAR.

Kyrgyz Republic MongoliaRussian Federation

China

Kazakhstan Mongolia

BorooGatsuurt

Ulaanbaatar

Russian Federation

Mongolia

China

Kazakhstan

Kumtor

Kyrgyz Republic


Mongolian Reserves and ResourcesDec.31, 2011

●

Proven & Probable Reserves–

Boroo

0.3 m oz–

Gatsuurt

1.5 m oz

●

Measured & Indicated Resources–

Boroo

0.24 m oz–

Gatsuurt

0.43 m oz–

ATO

0.82 m oz

●

Inferred Resources–

Boroo

0.23 m oz–

Gatsuurt

0.49 m oz–

ATO

0.03 m oz


●


2012 expected gold production of 60,000 oz @ cash costs of $810/oz

ATO

February 2012 17

M O N G O L I A

Gatsuurt Deposit

Dulaahhaan

Suhbaatar

BatsumberBornuur

Mandal

Dzuunharaa

Sharingol

Dzuunmod

Nalayh

ULAANBAATAR

Bayanchandmani

Darhan

Yoroo

ShaamarDzuunburen

Jargalant

Barunnharaa

Orhon

Sant

AltanbulagArhust

Bayandelger

SonginoLun

BayantsogtDumdaUrtaiin

Bayshing

Ugtaaltsaydam

GATSUURTDEPOSIT

BOROO MINE

ULAAN BULAGDEPOSIT

RUSSIA

MONGOLIA

50°N

50°N

49 °N

49°N

48°N

48°N

108°E

108°E

107°E

107°E

106°E

106°E

Drawing modified after Strathcona 2004.

Lambert Conformal Conic ProjectionDatum: Pulkovo 1942, Russia

0 50

kilometres

MONGOLIA

Detailed Map Area

February 2012 18

M O N G O L I A

Mongolia Update

●

Boroo Heap Leach permit pending –

Potential to add about 2,000 oz per month

●

Gatsuurt road construction and site prep complete

●

Gatsuurt approvals pending–

Ready to begin production of oxide ore on receipt of final approvals

●

Expand processing options, add bio-oxidation facility

February 2012 19

Prov ince boundary

Mining license

Exploration license

Railway

Main road

LEGEND

20 0 20 40

Kilometers

ULAANBULAG PROJECT

DARKHAN PROJECT

BOROO PROJECT

GATSUURT PROJECT

YALBAG PROJECT

KHUDER PROJECT

TOLGOIT PROJECT

MUNKH KHAAN PROJECT

UUL BAYAN PROJECT

46.5

°

106 °

48 °

49.5

°

109 °107.5 °

106 ° 107.5 ° 109 °

110.5 ° 112 ° 113.5 °

113.5 °110.5 ° 112 °

48 °49.5 °

46.5 °

0 50kilometres

100

Darkhan-Uul

Selenge

Sukhbaatar

Tuv

Khentii

Dornod

Darkhan-Uul

Selenge

Sukhbaatar

Tuv

Khentii

Dornod

Microsoft Bing © 2010 Microsoft CorporationMicrosoft Bing © 2010 Microsoft CorporationMicrosoft Bing © 2010 Microsoft CorporationMicrosoft Bing © 2010 Microsoft CorporationMicrosoft Bing © 2010 Microsoft CorporationMicrosoft Bing © 2010 Microsoft CorporationMicrosoft Bing © 2010 Microsoft CorporationMicrosoft Bing © 2010 Microsoft CorporationMicrosoft Bing © 2010 Microsoft Corporation

Province boundary

Mining license

Exploration license

Railway

Main road

LEGEND

M O N G O L I A

ATO Location and Land Holdings in Mongolia

YeroogolAu Trend

Onon Au–AgBase metal Trend

480 km

UlaanbaatarChoibalsan

Russia

ATO Project

February 2012 20

100 kilometres

ATO

DavkharTolgoi

BayanMunkh

HighLand

BayanGol

DuutNuur

5 kilometresFebruary 2012 21

M O N G O L I A

ATO District Targets

Pipe 4

Pipe 1

Pipe 2Pipe 3

M O N G O L I A

Altan Tsagaan Ovoo (ATO)

February 2012 22

M O N G O L I A

ATO Prospect, Drillhole Location Plan Map

February 2012 Ian Atkinson is the Qualified Person for purposes of NI 43-101 please see Centerra’s AIF and technical reports filed on SEDAR. 23

Expand Exploration; Significant Potential in Asia

Peschanka-Chukotskiy2.7 M oz

Chang Shan Hao 217 8.0 M oz

Oyu Tolgoi26.4 M oz

Ereen2.6 M oz

Olon Ovoot1.9 M oz

Sukoi Log44.8 M oz

Lugokanskoye5.3 M oz

Brystrinskoye8.9 M oz

Chertovo Koryto5.6 M oz

Kuranakh6.8 M oz

Golets Visochaishiy2.6 M oz

Baleyskoe5.1 M oz

Taseyevskoe4.6 M oz

Itakinskoye3.2 M oz

Copler6 M oz

Vasilkovskoe11 M oz

Bakyrchik13 M oz

Muruntau180 M oz

Amantaytau3.5 M oz

Kuru-Tegerek3.1 M oz

Jerooy3.3 M oz

Arxi5.6 M oz

Taldybulak L.1.0 M oz

Varvarinskoye5 M oz

Taldybulak6.2 M oz

Charaat4 M oz

Maoling7.6 M oz

Golden Hills1.1 M oz

Olympiada13 M oz

Titimukhta2.6 M oz

Bobolyubovo2.2 M oz

Vorontosovskoe2.6 M oz

Blagodatnoe8.4 M oz

Svetlinskoye1.5 M oz

Yubileyniy- Bashkortostan

5.1 M oz

Efemcukuru2 M oz

Daugyztau6 M oz

Kochbulak3 M oz

Jilau3 M oz

Zarmitan8 M oz

Unkurtask5 M oz

Kisladag8 M oz

Ovacik1 M oz

Jinfeng8.2 M oz

Laizhou10.7 M oz

Yingezhuang5.2 M oz

Zenyuan5.2 M oz

Anba2.9 M oz

Dachang2.9 M oz

Baguamiao2.8 M oz

Zijinshan2.8 M oz

Jinling2.7 M oz

Chongli Zijin2.3 M oz

Natalka68.6 M oz

Nezdaninskoye13.8 M oz

Kupol4.3 M oz

Kubaka2.6 M oz

Malomyr5.3 M oz

Pioneer5.3 M oz

Bamskoe (Chulbango)

3.1 M oz

Makmal1.7 M oz

Mnogovershinnoe2.3 M oz

Overnovskoe3.3 M oz

Veduga4.8 M oz

Centerra brings unique expertise

OksutSTI JV

ElmaliEMX JV

AkarcaEMX JV

Kara BeldyrCAG JV

ATO

Boroo2.5 M oz

Gatsuurt2 M oz

Kumtor19 M oz

Centerra Property

Centerra JV

Gold Deposit > 2M oz

Known Gold Deposit

AltunhisarSTI JV

LaogouxiHDS JV

DvoinoyeJV

February 2012 24

Kara Beldyr

Sakhtakhan(Dvoinoy)

February 2012 25

R U S S I A

Jvs in Russia –

Kara Beldyr & Sakhtakhan

26

Looking west

>2,500 m

Ezen Prospect

Kara Beldyr Placer

Gord Prospect

Drilling Summary:

2009 – 15 DDH – 2,418 m

2010 – 38 DDH – 6,045 m

2011 – 66 DDH – 12,173 m

Total – 119 DDH – 20,636 m

Camp & Baran Zones

February 2012 26

R U S S I A –

Q4 2011

Kara Beldyr Valley

Stratex JV -

Ortacam

North Geology Map and Drillhole Locations

500 metres

NORTHKizilagil Zone

Ortacam

North Zone

Ortacam

Zone

Kucukmese

Zone

Buyukmese

Zone

10 kilometres

Oksut

Property BoundaryNORTH

Ortacam North

Ortacam

Kucukmese

Buyukmese

Kizilagil

February 2012 27

1

2

3

Our Focus is on Growth

Maximize existing operations

Expand our exploration

Acquisitions or JV’s

Growth

February 2012 28

21st annual bmo capital markets global metals & …...global metals & mining conference,...

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