Centerra Gold (CG) Investor Update summary

Strategic plan and project overview

• Restart of Thompson Creek Mine and ramp-up at Langeloth aim for full integration by 2028, targeting a combined after-tax NPV8% of $472 million and 22% IRR for US molybdenum operations.

• Langeloth is expected to generate $50 million annual EBITDA and $45 million in annual earnings at full capacity, with significant synergies from blending high-quality Thompson Creek concentrate.

• The integrated plan improves on the 2023 pre-feasibility study, adding 12 million pounds of molybdenum, an extra year of mine life, and de-risked capital estimates.

• Project economics are based on a flat $20/lb molybdenum price, with robust fundamentals due to growing demand and constrained supply, supporting a market deficit through the decade.

• Thompson Creek is one of three primary molybdenum mines outside China, and Langeloth is one of three U.S. conversion facilities, providing a unique integrated value chain advantage.

Market dynamics and operational details

• Molybdenum demand is forecast to grow 2% annually, reaching 750 million pounds by 2030, driven by industrial and energy transition uses.

• Supply is constrained as most molybdenum is a byproduct of copper mining, with few new primary mines expected; Thompson Creek is set to start production in H2 2027.

• Langeloth will ramp up to 40 million pounds annual capacity by 2028, sourcing one third of feed from Thompson Creek and two thirds from third parties.

• Facility offers flexibility with six roasters and the ability to produce various high-margin molybdenum products, including ferromolybdenum and pure oxide.

• Strategic location near North American steel markets and major ports supports efficient logistics for both imports and exports.

Financials, capital allocation, and risk management

• Thompson Creek's capital estimate is $397 million through mid-2027, with 2024 project costs guided at $75–$85 million and $55–$65 million to be spent in H2 2024.

• Langeloth's EBITDA is resilient to molybdenum price fluctuations due to contract structures, with profitability even at lower prices and significant fixed cost leverage.

• Working capital at Langeloth is expected to double to about $200 million at full ramp-up, included in NPV/IRR analysis.

• Funding for Thompson Creek will come from ongoing cash flow, preserving cash for gold-focused growth and M&A, as the company remains strategically focused on gold for future capital allocation.

• Reclamation and closure costs are estimated at $202 million, with transportation and treatment costs to Langeloth at $29 million and $118 million, respectively, over LOM.