CENTAMIN PLC - Mining News · Centamin plc (“ entamin”or “the ompany”). Recipients of this...
Transcript of CENTAMIN PLC - Mining News · Centamin plc (“ entamin”or “the ompany”). Recipients of this...
CENTAMIN PLCSukari Gold Mine Site Visit13-14 February 2019
CLEAR STRATEGY.
MATERIAL UPSIDE.
STAKEHOLDER RETURNS.
2
Forward Looking Statements: There are risks associated with an investment in the shares ofCentamin plc (“Centamin” or “the Company”). Recipients of this presentation should reviewthe risk factors and other disclosures regarding Centamin referred to in the section entitled“Principal risks affecting the Centamin Group” in (i) our most recent Annual InformationForm; and (ii) our Management Discussion & Analysis reports, in each case available atwww.sedar.com.
This presentation contains "forward-looking statements" (which include “forward-lookinginformation” within the meaning of Canadian securities legislation) which may include, butare not limited to, statements with respect to the future financial or operating performanceof the Company, its subsidiaries, affiliated companies, its projects (including the Sukarimine), the future price of gold, the estimation of mineral reserves and resources, therealisation of mineral reserve and resource estimates, the timing and amount of estimatedfuture production, revenues, margins, costs of production, estimates of initial capital,sustaining capital, operating and exploration expenditures, costs and timing of thedevelopment of new deposits, costs and timing of future exploration, requirements foradditional capital, foreign exchange risks, governmental regulation of mining and explorationoperations, timing and receipt of approvals, consents and permits under applicable minerallegislation, environmental risks, title disputes or claims, limitations of insurance coverageand regulatory matters.
These forward-looking statements are provided for the purposes of assisting the reader inunderstanding the Company’s financial position and results of operations as at and for theperiods ended on certain dates, and to present information about management’s currentexpectations and plans relating to the future. Readers are cautioned that forward-lookingstatements may not be appropriate for other purposes than outlined in this presentation.Often, but not always, forward-looking statements can be identified by the use of wordssuch as "plans", "hopes", “aims”, “assumes, “seeks”, “targets”, “projects”, "expects", "isexpected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or"believes" or variations (including negative variations) of such words and phrases, or may beidentified by statements to the effect that certain actions, events or results "may", "could","would", “should”, "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks, uncertainties and a variety ofmaterial factors (many of which are beyond the Company’s control) which may cause theactual results, performance or achievements of the Company, its subsidiaries and affiliatedcompanies to be materially different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such factors include, among others,future price of gold; general business, economic, competitive, political and socialuncertainties; the actual results of current exploration and development activities;conclusions of economic evaluations and studies; fluctuations in the value of the US dollarrelative to the local currencies in the jurisdictions of the Company’s key projects; changes inproject parameters as plans continue to be refined; possible variations of ore grade orprojected recovery rates; accidents, labour disputes or slow-downs and other risks of themining industry; climatic conditions; political instability, insurrection or war; civil unrest orarmed assault; labour force availability and turnover; delays in obtaining financing orgovernmental approvals or in the completion of exploration and development activities. Thereader is also cautioned that the foregoing list of factors is not exhaustive.
Although the Company has attempted to identify important factors that could cause actualactions, events or results to differ materially from those described in forward-lookingstatements, there may be other factors that cause actions, events or results to differ fromthose anticipated, estimated or intended. Forward-looking statements contained herein aremade as of the date of this presentation and, except as required by applicable law, theCompany disclaims any obligation to update any forward-looking statements, whether as aresult of new information, future events or results or otherwise, after the date on which thestatements are made or to reflect the occurrence of unanticipated events. There can be noassurance that forward-looking statements will prove to be accurate, as actual results andfuture events could differ materially from those anticipated in such statements. Accordingly,readers should not place undue reliance on forward-looking statements.
Competent Persons: Information in this presentation which relates to exploration, geology,sampling and drilling is based on information compiled by geologist, Mr Norm Baillie, who,as an accredited Chartered Professional Geologist and Manager through the GeologicalSociety of the United Kingdom and the Australasian Institute of Mining and Metallurgy, is an“Competent Person” for this purpose and a “Qualified Person” as defined in “NationalInstrument 43-101 of the Canadian Securities Administrators”.
Refer to the Company’s annual report for 2017, for further discussion of the extent to whichthe estimate of mineral resources/reserves may be materially affected by any knownenvironmental, permitting, legal, title, taxation, socio-political, or other relevant issues.
DISCLOSURESForward Looking Statements
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February 13 – 14, 2019
SAFETY INDUCTION Steve FuhriHealth, Safety and Environment
Manager
CORPORATE OVERVIEW Andrew Pardey Chief Executive Officer
SUKARI GOLD MINERaitt Marshall
Grahame Smith
General Manager, Sukari Gold Mine
Operations Director
EXPLORATION Norm Baillie
Ahmed Kamal El Deen
Group Exploration Manager
Senior Exploration Geologist
OPEN PITAhmed Ghaly
Lawrence Aboagye
Senior Engineer
Chief Open Pit Geologist
PROCESSING Mohamed Hadidy Metallurgical Superintendent
UNDERGROUND Jason Butler Chief Underground Geologist
PRESENTATION OVERVIEW
CORPORATE OVERVIEW
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OUR ASSETSWorld class mine; Active growth pipeline
Egypt Operating mine, Sukari Gold Mine
• Egypt’s largest gold producer
• 10th year of operation: Produced approximately 3.4Moz Au to date @ avg cash cost of $618/oz
• 2018A produced 472koz @ forecast AISC $890/oz
• 11.8Moz JORC resource, 8Moz reserve; orebody remains open at depth
• +20 year open pit LOM, with +5 year underground LOM
• Located 750km from Cairo in SE Desert, 31km from Marsa Alam (international airport) Red Sea resort town
Côte d’IvoireExploration
• 3,472km2 license holding
• Doropo: 1.35Moz Indicated and 0.9Moz Inferred resource; PEA on schedule for H1 2019
• ABC: highly prospective greenfield permits, targeting maiden resource Q1 2019
Burkina FasoExploration
• 1,258km2 license holding, including 1 exploitation permit
• Batie: 1.9Moz Indicated and 1.3Moz Inferred resource
* as of 30 June 2017
Operating Mine
Exploration Project
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Asset QualityTop 10 Tier One Assets by AISC, production and LOM
Lowest half cost curve, bulk tonnage operation
>10yrs LOM (vs gold sector avg ~10yrs*) with reserve and resource growth upside
Near term, near-mine / capex lite production upside
Financial FlexibilityUS$292m cash and liquid assets as at 30 Sept 2018
No debt
No hedging
No streaming
Stakeholder ReturnsMeaningful socio-economic contributor to our host country/partners
Reliable dividend policy, min 30% of FCF
Current 8.4% dividend yield, as at 26 Jan 2019
Maintain social license to operate
Active Growth PipelineSukari UG – Amun/Ptah reserve replacement
Sukari UG – Cleopatra exploration & development
Doropo – PEA underway
Batie West – scoping study underway
ABC – ongoing greenfield target generation
LSE:CEY / TSE:CEE
100% free float
FTSE 250
INVESTMENT CASESupported by strong fundamentals
* Referenced RBC Capital Markets
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0
0.5
1
1.5
0
25,000
50,000
75,000
100,000
125,000
150,000
175,000
Q1 2018 Q2 2018 Q3 2018 Q4 2018
FY 2018 - Quarterly Production (Actuals)
Production (oz) Feed Grade (g/t)
Creating a Stable Platform
⚫ Open pit: The sulphide ore will be the
primary source of production for at least
the next three years
⚫ Underground: Tighter controls,
appointed new personnel.
2018 PRODUCTION Improving operational efficiencies
Q3 – Q4: Production Improving
⚫ Open pit: Mining of the transitional
zone was completed in Q3 2018
⚫ Underground: significant
improvements realised
Q1 – Q2: Short-term Operational Issues
⚫ Open pit progressed through a
transitional zone to higher grade
sulphide ore
⚫ Underground mine suffered damage to
the Long-Hole Drill Rig (“LHDR”)
units Q4 2018 Q3 2018 % change FY 2018 FY 2017 % change
Gold production oz 137,600 117,720 17% 472,418 544,658 -13%
Cash costs of production US$/oz produced 619 (13%) 625-640(1,2) 554
All-in sustaining cost US$/oz sold 889 (17%) 875-890(2,3) 790
1. Full Year 2018 guidance as per Q3 2018 Preliminary Production Results, published 5 October 2018 2. Cash costs based on gold produced; AISC based on gold sold; Gold sold expected to be greater than or equal to produced.3. Expect full year AISC to come at the top end of the guidance range, US$875/oz – US$890/oz, as per the Q3 2018 Results, published on 1 November 2018
2019
8
800
(900)
520
1,180
2013 UndergroundReserves
2013-17 CumulativeProduction
2013-17 CumulativeReserves Replacement
2017 UndergroundReserves
7,200
(1,028)
7,700 528
2013 Open PitReserves
2013-17 CumulativeProduction
2013-17 CumulativeReserves Replacement
2017 Open PitReserves
LONG TERM VIABILITYSuccessful track record achieving resource expansion
1.5 1.7
3.1
4.6
7.5
9.0 9.4
11.0
13.1 13.1 13.4 13.4 13.0 13.0
11.7
1.9 1.9 2.2
3.3
0.0
0.2
0.4 0.6
1.0
1.3 1.8 2.4 2.9
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Sukari Resources West Africa Resources Cumulative Production
Sukari Open Pit Reserves Since 2013 (koz Au)
Sukari UG Reserves Since 2013 (koz Au)
Resource Evolution (Moz Au)
Cumulative production to date: 3,224 koz Au
Only a fraction of the Company’s resources have been extracted to date
(1)
Note: Resources are shown inclusive of reserves, but exclusive of inferred resources.1. Comprised of Konkera and Doropo. Konkerra & Doropo indicated resource of 34.2 mmt grading 1.75 g/t Au and 32.6 mmt grading 1.29 g/t Au, respectively.2. Based on average annual production rate of 500 koz Au.
~50% reserve replacement
8Moz Reserve mine life of >15 years(2)
~130% reserve replacement
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ROBUST FINANCIAL STRATEGY Managing the bottom line to maximise cash flow
1. Non-GAAP measures and are defined in the Financial Review of our Interim Results, announced 2 August 2018
2. Cash and liquid assets including cash and cash equivalents, bullion on hand at market price, gold sales receivable and financial assets at fair value through other comprehensive income of US$292.2m as at 30 Sept 2018
3. Board will propose final 2018 dividend for the year ending 31 December 2018 on 25 February 2019
• Maintain a strong, flexible balance sheet of a minimum US$250 million in cash
• As at 31 September 2018, US$292.2m cash and liquid assets(1,2) , after payment of US$28.9m interim dividend
• No debt, no hedging, no streaming
• Reliable returns for stakeholders
• Sustainable dividend stream; US$450 million distributed in dividends over 5 years(3)
• Material local direct and indirect employer
• Payments to government in excess of US$400 million in tax, rent, royalty and profit share agreements
• Stringent cost management and disciplined capital allocation
• Routine prioritising of capex programme
• Self-funded organic growth pipeline
• Re-investment to sustain the core business for the long term
• Continuous investment in exploration unlocking value from asset portfolio underpinning long term growth
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Dividend Policy
Source: Company filings
¢0.9 ¢1.0 ¢2.0 ¢2.5 ¢2.0 ¢2.0
¢13.5 ¢10.0 ¢2.9 ¢2.9
¢15.5 ¢12.5
¢2.5
2014 2015 2016 2017 H1 2018
Interim Final
$10 $11 $23 $29 $23 $23
$156 $115
$33 $34
$179 $144
$29
2014 2015 2016 2017 H1 2018
Interim Final
Free Cash Flow (US$ mm)
Dividend per Share
(¢/sh)
Total Dividends (US$ mm)
$38
$115
$242
$142
$36
2014 2015 2016 2017 H1 2018
PRIORITISING SHAREHOLDER RETURNSGenerating positive returns in the face of operational challenges
Excess Cash returned to shareholders as dividend build
Min dividend 30% of Sukari cash flow Maintain min $250m cash balance Growth capital investment
>75% of annual free cash flow
paid out in dividends
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NEAR TERM
Sukari Underground
Cleopatra Exploration Decline
Successful early stage results identifying good grades on the contact zone and internal geological structures
1m @ 111g/t; 1m @ 11.5g/t; 1.4 @ 12.8g/t
Self-funding exploration and development from pre-production revenue generation
SUSTAINABILITY
Sukari Underground
Amun/Ptah Decline
Resource extension drilling continued to return excellent results
3m @ 428g/t; 43m @8.2g/t, inc 15m @ 12g/t; 6m @ 26g/t
Underpinning the long term sustainability of Sukari underground
MEDIUM TERM
Doropo Project
Near resource, near surface extension drilling returned positive results
37m @ 6.4g/t; 40m @ 2.7g/t; 13m @ 11.2g/t; 15m @ 8.4g/t
Updated resource and reserve/PEA expected H1 2019
LONG TERM
ABC Project
Wide spaced drilling and geochem results indicate extensive gold mineralised system
Target maiden resource H1 2019
Sukari Regional Exploration
Undergoing petrophysics, 3D seismic, geophysics across 160km2 license area
Potential for truckable tonnes to existing plant
ACTIVE GROWTH PIPELINE Self funded, organic growth upside potential
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KEY OBJECTIVESNear term deliverables
Continue to optimise the performance at Sukari
❑ Deliver further operational improvements and driving production growth
❑ Return excess free cash flow generated to shareholders
❑ Deliver Sukari solar project feasibility study
Unlock potential of organic growth profile
❑ Sukari underground updated reserve and resource statement
❑ Doropo Project PEA, update resource and maiden reserve
❑ ABC Project maiden resource
❑ Significant exploration target generation across the portfolio
Governance and sustainability
❑ Continued downward trend in Group LTIFR
❑ Board succession programme: Appointment of three independent NEDs, one migrating to NEC
❑ Implement Board approved local community initiatives
❑ Propose a new Remuneration Policy to shareholders
SUKARI GOLD MINE
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Arab Republic of Egypt
▪ Stable government: President el Sisi re-elected for 2nd term; Undergoing economic reform as part of the $ 12bn IMF loan
▪ Strengthening economy: 2018 GDP grew 5.4%, inflation over halved to <12% and budget deficit below 10%.
▪ Ancient historic gold belt; Underexplored Arabian-Nubian Shield (ANS) runs north to south, along the east coast of the country
▪ Excellent infrastructure; Well educated, skilled workforce
▪ Sukari Gold Mine is Egypt’s first modern mechanized gold mine in Egypt
▪ Fair fiscal terms: the Concession Agreement was ratified by Egyptian parliament as law 222 of 1994.
▪ First mover advantage: Centamin explored 3,000km2 along the Egyptian ANS
EGYPTExcellent emerging market opportunities
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$493 $533
$588 $643 $661
$705 $709 $722 $749 $752
Cortez(Barrick)
Olimpiada(Polyus)
Sukari(Centamin)
Cadia(Newcrest)
Merian(Newmont -
75%)
Kumtor(Centerra)
Loulo-Gounkoto(Randgold -
80%)
Pueblo Viejo(Barrick - 60%)
Kalgoorlie(Barrick - 50%)
Kibali(Randgold -
50%)
Source: WoodMackenzie
Top 10 Global Tier One Assets by 2017 AISC (US$/oz)
Tier One Gold Assets (> 500 koz; > 10 year mine life; bottom half of cost curve)
WORLD CLASS ASSETBulk tonnage, long life, low cost mine
16
Mubarak Army Morsi Mansour Sisi Sisi
5
150
203
263
357 377
439
551 545
472
--
$300 /oz
$600 /oz
$900 /oz
$1,200 /oz
$1,500 /oz
$1,800 /oz
$2,100 /oz
0
100
200
300
400
500
600
700
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F
Production Cash Cost Average realised gold price All-in sustaining cash costs
PROVEN OPERATIONAL TRACK RECORDCommencing the 10th year of commercial production
(1) For further details on the mechanics of the Concession Agreement please refer to the 2017 Annual Report and Accounts and the License Overview found on the Company website:
http://www.centamin.com/production/sukari/licence-overview
Short-term issues being addressed
~US$1.2bn foreign capital investment and full cost recovery Profit Share with local partners, EMRA(1)
Commenced underground
mining
Fuel subsidy removed
Commissioned Stage 1, 4Mtpa
plant
Plant expansion to 10Mtpa
17
INVESTED IN OUR PEOPLEIndustry leading health and safety track record
Annual LTIFR (per 200,000 hours worked) ▪ People are our first asset and
therefore workplace health, safety
and wellbeing is our number one
priority
▪ 72% decrease in LTIFR YoY, with
two reported Lost Time Injuries in
6.45m hours worked
▪ Achieved zero-harm target for 4 yrs
and 2yrs consecutively in Cote
d’Ivoire and Burkina Faso,
respectively
▪ Health and safety training forms a
critical part of delivering
sustainable operations, along with
continued professional
development and wellbeing
training that ensures operational
excellence and career
advancement
0.39
0.200.24 0.22
0.06
-
0.10
0.20
0.30
0.40
0.50
2014 2015 2016 2017 2018
FY2018
Total hours worked
LTILTIFR
per 200,000 hours
GROUP 6,459,939 2 0.06
Sukari 5,784,130 2 0.07
Burkina Faso 139,241 0 0.00
Cote d’Ivoire 536,568 0 0.00
SUKARI GOLD MINES
CENTAMIN PLC(CEY LN;CEE CN)
100%
50%
PHARAOH GOLDMINES(Concession Agreement)
EGYPTIAN MINERAL
RESOURCES AUTHORITY
(“EMRA”)
CONCESSION AGREEMENTCorporate Structure
50%
License
160km2
30 year license granted in 2005, with option for a further 30 years
Royalty 3% NSR
Profit Share with EMRA
Profit Share was triggered in 2016, after full $1.2bn cost recovery.
Profit Share schedule:
1. 45% for next 2 years (to June 2020)
2. 50% of revenue net of all qualifying costs thereafter.
Cost Recovery
Growth capital expenditure is recovered over three years
Sustaining capital expenditure is recovered in the year it is incurred
Taxes No other direct or indirect taxes
Other
Early payments were made to EMRA in 2013, 2014, 2015 in line with returns made to shareholders by way of dividends. These early payments were later offset against the first profit share payments made in 2016.
18
19
10% Group workforce (outside of Egypt)
is female
93% Group workforce
is employed locally
95% workforce is Egyptian at
Sukari
CORPORATE SOCIAL RESPONSIBILITYContribution to our operating host country and local community
US$248.2m paid to EMRA in profit share to date
44% suppliers to Sukari are Egyptian
Q3: $10.6m (YTD: $49.9m) paid to EMRA in profit share
In addition to the above, we engage in various local community projects and initiatives to ensure we maintain our social license to operate, lead by strong relations with local stakeholders, as set out in the CSR report found on our website
*Arab Republic of Egypt (“ARE)
>270 Egyptian company suppliers
GROUP Total c.US$400m DIRECT
payments to government of host
countries
1,345 Egyptian employees
US$137.8m paid to ARE in royalties to date
Q3: $3.9m (YTD: $12.8m) in royalties to ARE*
1,670 Group workforce 33 women directly employed
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SUKARI OVERVIEWQuick facts
OperationsOpen pit (owner-operator) & underground (contractor)
Geology
Two parallel structures trending NNE & dipping E• Porphyry intrusive, hosting the low grade,
bulk tonnage open pit• High grade underground zones, located
along the contact zones of the structures
Resources 11.8Moz M&I
Reserves 8.0Moz P&P
LOMOpen pit: >20 yearsUnderground: >5 years
Plant 12.5Mt pa CIL
Production 2017A: 544.7koz Au2018A: 472koz Au
Unit AISC (US$/oz sold)
2017A: US$790/oz2018F: US$890/oz (YTD18A: US$917/oz)
Safety2017A: LTIFR 0.24 (2018A: LTIFR 0.06)
Access
8km gravel road off the Edfu/Marsa Alam paved highway
100km to Marsa Alam International Airport
Water
25km salt water pipeline Desalination plant
40-45% of processing water is recycled off the TSF
PowerHFO, 70MW capacity Solar feasibility underway
Tailings1 downstream tailings storage facility (TSF), with another under construction
21
SUKARI OVERVIEWSite layout
21
22
FY2018 RESULTS REVIEWSignificant operational turnaround; further improvements to come
INDENTIFY EVALUATE IMPLEMENT SOLUTIONS RESULTS & MONITORING
Factors impacting performance
Cause Response Outcome
Open pit grade• Transitional zone thicker than
expected with lower than expected grades
✓ Enhanced grade control drilling✓ Personnel change ✓ Increase mining rates and
volumes to access sulphides as efficiently (time and cost) as possible
✓ Stage 4 mining of the transitional zone completed in Q3
✓ 20% increase in ore tonnes, driving a significant increase in stockpile inventory
✓ Effective scheduling resulted in less trucks utilised to move record material
Underground stope tonnage
• Long hole drill rig ("LHDR") damaged, causing disruptions and temporary suspension of stoping
• Increased volume of cascade stoping (bulk tonnage mining method) leading to increased dilution
‐ Repaired LHDR‐ Deferred stoping sequence, did
not sterilise any stopes‐ Backup LHDR ordered‐ Assessed alternative mining
methods
✓ LHDR fully operational; No equipment utilisation or availability issues to report;
✓ Back-up LHDR on site✓ Reduction in total tonnage
impacted by cascading stoping
Underground development grade
• Increased development tonnages due to lower stoping production
‐ Personnel changes✓ Multiple new technical
appointments
Underground stope grade• Greater than expected dilution
from high-volume mining method (cascade stope mining)
‐ Reducing contribution from higher dilution mining methods
‐ Improved controls continue to be implemented
✓ Improvement in operational efficiencies
EXPLORATION SESSION
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UNLOCKING SUKARI’S FULL POTENTIALOrebody remains open at depth
▪ Underground exploration and development strategy remains:
‐ Reserve replacement
‐ Resource growth and improved classification
‐ Maintain development at >3yrs ahead of mining
‐ Reduce sensitivity to equipment downtime
▪ Q3 2018 9,286m drilled from Amun, Ptah, Cleo and ToH.
▪ Q4 2018 a further 10,000m drilled.
‐ 4 rigs targeting reserve and resource expansion:
1. Cleopatra2. Ptah deeps: Northern extensions;
Extensions along the Eastern Contact3. Ptah Keel: Infill drilling; Eastern and
Western resource extension 4. Top of Horus
AMUN CROSS SECTION LOOKING NORTH
25
UNLOCKING SUKARI’S FULL POTENTIALSukari long-section: Q3 2018 drill intercepts highlights
NEAR TERM
SUSTAINABILITY
26
UNLOCKING SUKARI’S FULL POTENTIALPtah cross-section
27
UNLOCKING SUKARI’S FULL POTENTIALAmun/Top of Horus cross-section
Excellent results:
➢ outside of the existing resource
➢ Near to current development
Sustainability:
➢ Future upside potential for UG mine
➢ Testing potential at depth to the South
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Q1 Q2 Q3 YTD
Tonnes 20,437 47,692 70,897 139,026
Au 2.8 1.77 1.6 1.85
Oz 1839.8 2714 3647 8,247
UNLOCKING SUKARI’S FULL POTENTIALCleopatra Q3 2018 exploration and development
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UNLOCKING SUKARI’S FULL POTENTIALCleopatra cross-section
V Shear
QuartzRidge
Kurdeman
SamiSouth
SukariMine
Sukari North Prospects
Shu
Tenement area: 160km2
N
RED SEA
30
5km Marsa Alam
300km Aswan
UNLOCKING SUKARI’S FULL POTENTIALRegional field exploration to identify the porphyry source
30
▪ Sukari is a world-class gold district(+15Moz) hosted on a major ANS terraneboundary, a NW verging, obducted,ophiolite thrust belt.
▪ Sukari Resources are currently drill definedaround the 2.5km by 0.6km deep SukariPorphyry which sits axially within a muchwider 17km long by 3.7km ophiolite shearzone known locally as the Sukari Domain(SDOSZ).
▪ There are 7 main surface prospects hostedalong 5 primary domain gold trends, withinthe mining permit. All surface prospects arewithin easy trucking distance to the existingprocessing plant and infrastructure.
▪ Q2 we successfully completed the firststage petrophysics for the application of 3DSeismics at Sukari.
▪ Q3 conducted a further DTH geophysicscombining Density and Full Wave-FormSonic data acquisition before starting 2DSeismic sections in Q1 2019
▪ Construct a robust district 3D geo-seismicarchitecture of the SDOSZ to depths>1.5km, targeting potential new blindSukari-style porphyries.
ARABIAN NUBIAN SHIELDStrategically positioned
▪ Sukari first modern mechanised gold mine
▪ Historic gold belt: 65 historic gold mines known across theANS
▪ Competitive advantage: Centamin’s operational trackrecord, country presence, skilled work force, local andgeologic understanding gives the Company a competitiveadvantage to look at further growth opportunities withinthe ANS.
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OPEN PIT TOUR
33
OPEN PIT MINELong life, low cost, bulk tonnage operation
Mining Owner-operator
Bulk tonnage operation▪ 2018A: 77.9Mt total
material moved
▪ 2018A: 23.1Mt total ore moved
▪ 2018A: 0.60g/t mined grade, inc DL, stockpile
Pit design7 stages; currently mining Stage 4: predominant source of ore for the next 3 years
Final Pit 2.7km long x 1.3km wide
Resource Sukari M&I resource: 11.8 Moz
ReserveOpen pit P&P reserve: 7.2Moz @ 0.93g/t, 239Mt
LOM > 20 years
ST4
ST5
ST6
ST7
31 Dec 2018
1010 RL
1040 RL
1200 RL
OPEN PITMining Stage 4
Open Pit Plan View: Sukari porphyry
Open Pit Plan View : 2018 Stage 4
3434
0.00
0.20
0.40
0.60
0.80
1.00
1.20
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Q32016
Q42016
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
Q42018
Open Pit Mined Grade Open Pit Feed Grade
▪ Record material moved of 77.9Mt
▪ Record ore tonnes mined of 23.1Mt @ 0.60 g/t, a 10%
decline YoY:
➢ 11.1Mt @ 0.76 g/t delivered to the mill
➢ 2.0Mt @ 0.37 g/t delivered to the dump leach
➢ 10.0Mt @ 0.47 g/t delivered to the stockpiles
▪ Q4 mined 5Mt of ore at 0.75g/t, an 18% increase QoQ,
delivering open pit feed grade of 0.92g/t, a 12%
increase QoQ
▪ Stage 4 sulphide material is the primary source of
open pit ore for at least the next 3 years
▪ Mined grades expected to continue to improve
throughout H1 towards the reserve grade, as mining
progresses into the Hapi Zone.
▪ Increased material moved; strip ratio expected to
return to LOM levels
2018 OPEN PIT
OPEN PITMining Stage 4
35
2019 OUTLOOK
OPEN PIT ORE MINED GRADE AND FEED GRADE
OPEN PIT TOTAL MATERIAL MOVED vs STRIP
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
0
5,000
10,000
15,000
20,000
25,000
Open Pit Ore Open Pit Waste Strip Ratio
PROCESSING TOUR
37
PROCESSINGAchieved record throughput
Capacity Plant throughput : 12.6Mt pa
Design
Sulphide flotation, fine grind, carbon-in-leach plant (CIL)
Conventional SAG and ball mills
First Pour 26 June 2009
Feed grade2017A: 1.57g/t2018A: 1.26g/t
Recovery2017A : 88.1%2018A : 88.7%
Construction4 stage build from 4.5Mtpa (2009) – 10Mtpa (2014)Fully funded from equity, on time and on budget
38
PROCESSING PLANTFlow sheet
39
0.13.1 3.6
4.5
5.7 5.8
10.611.6 12.0
12.6
2009.0 2010.0 2011.0 2012 2013 2014 2015 2016 2017 2018F
PLANT PERFORMANCE
ORE PROCESSED AND FEED GRADE
▪ Strong performance across the process plant
▪ Plant throughput of 12.6Mt
▪ Head grade of 1.26g/t, a 20% decrease YoY (inc Q4
feed grade of 1.45g/t, a 12% increase QoQ)
▪ Improved metallurgical recovery rates to 88.7%
▪ Cleopatra decline development in mineralised
material, produced 5,145 ounces
▪ Dump leach operations produced 12,522 ounces
PROCESSING PLANT THROUGHPUT (Mtpa)
PROCESSINGContinually optimising throughput and maximising recoveries
2018 PERFORMANCE
85.0%
86.0%
87.0%
88.0%
89.0%
90.0%
91.0%
92.0%
93.0%
0.70
0.90
1.10
1.30
1.50
1.70
1.90
Plant Feed Grade Recovery
0.50
0.70
0.90
1.10
1.30
1.50
1.70
1.90
0
1,000
2,000
3,000
4,000
Total Ore Processed Plant Feed Grade
DUMP LEACHLow cost ounces : Monetising marginal tonnes
2x dump leach pads
▪ South Dump Leach, located on the west of Sukari hill overapprox. 25ha and currently has 16.4Mt of ore stacked
▪ North Dump Leach, located at the north of Sukari overapprox. 15ha. North DL was constructed in Q2 2018 and has>1Mt of ore stacked to date. Irrigation began in Q3 2018.
▪ 2018A DL production: 12,525 ounces, a 46% increase YoY
▪ Increased oxide material and transitional ore delivered to thedump leach pads throughout 2018 as Stage 4 miningcommenced.
▪ Operational all year
▪ Head grade of ore: 0.3-0.4g/t
▪ Average recovery rate: ~60%
40
UNDERGROUND TOUR
42
Mining Contractor: BarmincoMethod: Long-hole stoping, room and pillar, avoca modified
Design Amun/Ptah decline engineered to 1.5Mtpa, optimal is 1.3Mtpa, to depth of c.600m vertical metres
2017A: 1.14Mt ore mined at 8.3g/t
2018A: 1.24Mt ore mined at 5.7g/t
Cleopatra exploration/development decline under construction: engineered to 1Mt pa
2,260 metres of decline development (185kt ore at 1.8g/t)
20,400 metres of exploration drilling completed
R & R 1.6Moz M&I @ 6.8g/t, inc 0.8Moz P&P @ 5.1g/t reserve (as per 31 Dec 2017 updated R&R)
LOM Current reserve supports > 5yr LOM, orebody open at depth
UNDERGROUNDShallow, high grade ounces, significant upside potential
Amun / Ptah Underground Long Section (looking east): 2018 stoping
43
0
500
1,000
1,500
2,000
2,500
3,000
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Q32016
Q42016
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
Q42018
Development Metres
UNDERGROUND ORE MINED AND AVERAGE GRADE
UDNERGROUND GRADE PROFILE
UNDERGROUNDSignificant operational turnaround; further improvements to come
▪ Total production 1.24Mt at 5.7g/t, a 31% decrease in
grade YoY
▪ Production from stoping, 739kt at 6.5g/t
▪ Ore from development 504kt at 4.5g/t
▪ ~60:40 stoping: development split
▪ Good equipment utilisation rates
▪ Spare LHDR arriving on site
2018 UNDERGROUND
0.0
2.0
4.0
6.0
8.0
10.0
12.0
0
50
100
150
200
250
300
350
Development Ore Stoping Ore Total UG Grade Mined (ex Cleo)
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
11.00
12.00
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Q32016
Q42016
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
Q42018
Stoping Grade Development Grade Total UG Grade Mined (ex Cleo)
TOTAL DEVELOPMENT METRES (MINERALISED + WASTE)
44
UNDERGROUNDAmun 680 Level Stoping
Plan View of the Amun 680 level showing the active stope on the eastern side of the Porphyry.
Section view 10365mN +/-2.5m of the Amun 680N4 stope shape near the eastern contact.
GEOLOGY: The active stope on the Amun 680 level is currently on the eastern side of the porphyry. In the 680 level, we will also see the stope extraction of the high-grade quartz vein on the western meta-sediment contact.
45
GEOLOGY: The P645E3 and P645W2
drives are developing adjacent to the
eastern contact of the Sukari
Porphyry. The stockwork mineralised
zone inside the porphyry is up to
20m wide and consists of gently east
and gently west dipping quartz veins
stacked in a steeply West Dipping ore
shoot.
The Ptah Eastern Stockworks Zone is
a new mining area in the
Underground with development just
starting on the top section.
UNDERGROUNDPtah - 645
Plan View of the Ptah P645 level showing the active development on the eastern side of the Porphyry.
APPENDIX
47
CONTINUED FOCUS ON COST CONTROL
0.00
0.50
1.00
1.50
2.00
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Q32016
Q42016
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
Open Pit Mining Cost per Tonne (US$/t)
0.0
5.0
10.0
15.0
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Q32016
Q42016
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
Processing Cost per Tonne (US$/t)
Mine production costs of US$81.5m, up 8% QoQ
$27M
$43M
$6M
$5M
$0M
Open pit mining
Processing
Underground mining
G&A
Refinery & transport
Q3 MINE PRODUCTION COSTS (US$M)
0
10
20
30
40
50
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Q32016
Q42016
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
Overall Underground Cost per Tonne (US$/t)
Q3 OPERATING COSTS PER TONNE (US$/t)
Consumables 37%
38%
Contractors25%
24%
Fuel 20% 19%
Labour 9% 9%
Other 9% 10%
Q3 2018 Q2 2018
48
COST BREAKDOWN
USD 50% 51%
EGP* 26% 24%
AUD 15% 15%
Other 9% 9%
Q3 2018 Q2 2018
GROUP Cost Centers**
* EGP includes fuel costs which are linked to USD prices** Group cost centre and FX breakdown incorporates all group expenditure including capex
GROUP FX Exposure**
▪ Fuel price remained flat Q2 2018 to Q3 2018; but volume of fuel increased
▪ Solar feasibility study:
▪ Detailed tender process near completion
▪ Labour inflation: with a salary increase effective from Q4 2018
▪ Negotiated improved commercial terms for some key long term supply contracts
▪ FX and split between cost centres remained largely flat QoQ
Q3 2018 PERFORMANCE
49
Sukari Open Pit Mineral Reserve
Sukari Underground Mineral Reserve
2017 2015
Tonnes(Mt)
Grade(g/t Au)
Gold(Moz)
Tonnes(Mt)
Grade(g/t Au)
Gold(Moz)
Proven 159 1.02 5.2 130 1.11 4.6
Probable 70 0.80 1.8 99 1.07 3.4
Stockpile 10 0.52 0.2 21 0.42 0.3
Total 239 0.93 7.2 250 1.03 8.3
• The effective date of the reserve and resource statement is 30 June 2017 or 30 June 2015 as relevant• Totals may not equal the sum of the components due to rounding adjustments• Based on mined surface as at 30 June 2017 and a gold price of US$1,300 per ounce
• The effective date of the reserve and resource statement is 30 June 2017 or 30 June 2015 as relevant• Totals may not equal the sum of the components due to rounding adjustments• Based on underground mine workings as at 30 June 2017• Long Hole Stopes for reserves estimation are designed using a 3.0g/t elevated cut-off and mining dilution applied at 15% @ 0.4g/t as all stopes are located in mineralised porphyry and 10% mining loss is then assumed to allow for stope bridges and materi al left in stopes after mining.
For shallow-dipping long hole stopes a 50% mining loss has been assumed• Room and Pillar Stopes for reserves estimation are designed using a 3.0g/t elevated cut-off and mining dilution applied at 10% @ 0.8g/t as all stopes are located in mineralised porphyry and 40% mining loss is then assumed to allow for non-recovered pillars and material left in stopes
after mining• Mineral Resources are reported inclusive of those resources converted to Proven and Probable Mineral Reserves
2017 2015
Tonnes(‘000 t)
Grade(g/t Au)
Gold(‘000 oz)
Tonnes(‘000 t)
Grade(g/t Au)
Gold(‘000 oz)
Proven 0.7 8.5 200 1.0 6.1 200
Probable 4.0 4.4 569 1.7 5.9 320
Sub-total 4.7 5.1 769 2.7 6.0 520
Development (Probable) 0.6 0.9 18
TOTAL 5.4 4.5 787 2.7 6.0 520
SUKARI RESERVESas at 30 June 2017
• Cut-off grades (gold): CIL oxide 0.35g/t, CIL transitional 0.35g/t, CIL sulphide 0.35g/t, Dump Leach oxide 0.2g/t• Designed underground reserves detailed below do not form part of the open pit reserve
50
Sukari Total Mineral Resource
Sukari Underground Mineral Resource (included within the total resource above)
Measured Indicated Total Measured + Indicated Inferred
Cut-off Tonnes Grade Tonnes Grade Tonnes Grade Gold Tonnes Grade Gold
g/t Au (Mt) (g/t Au) (Mt) (g/t Au) (Mt) (g/t Au) (Moz) (Mt) (g/t Au) (Moz)
0.3 240 1.02 145 0.84 385 0.95 11.75 25 0.80 0.64
0.4 199 1.15 114 0.97 313 1.09 10.95 19 0.90 0.58
0.5 167 1.29 92 1.10 259 1.22 10.17 15 1.1 0.52
0.7 121 1.55 62 1.34 183 1.48 8.72 10 1.3 0.43
1.0 80 1.92 36 1.70 116 1.85 6.90 6 1.7 0.31
• The effective date of the reserve and resource statement is 30 June 2017• Totals may not equal the sum of the components due to rounding adjustments• The Mineral Resource estimate is based on the open pit mined surface as at 30 June 2017 and adjusted for underground mine workings as at 30 June 2017• All available assays as at 30 June 2017• Resource data set comprises 311,419 two metre down hole composites and surface rock chip samples• Mineral Resources are reported inclusive of those resources converted to Proven and Probable Mineral Reserves• The resources are estimates of recoverable tonnes and grades using Multiple Indicator Kriging with block support correction• Measured Resources lie in areas where drilling is available at a nominal 25 x 25 metre spacing, Indicated resources occur in areas drilled at approximately 25 x 50 metre spacing and Inferred resources exist in areas of broader spaced drilling.• The resource model extends from 9700mN to 12200mN and to a maximum depth of 0mRL (a maximum depth of approximately 1,000 metres below wadi level)
2017 2015
Tonnes(‘000 t)
Grade(g/t Au)
Gold(‘000 oz)
Tonnes(‘000 t)
Grade(g/t Au)
Gold(‘000 oz)
Measured 1,947 8.9 554 1,850 6.5 390Indicated 5,492 6.0 1,065 2,820 7.0 630Total M&I 7,439 6.8 1,619 4,670 6.8 1,020Inferred 6,711 4.5 976 6,970 5.6 1,240
• The effective date of the reserve and resource statement is 30 June 2017 or 30 June 2015 as relevant• Totals may not equal the sum of the components due to rounding adjustments• The Mineral Resource is reported above 2g/t within interpreted mineralised domains• The Mineral Resource estimate is depleted by underground mine workings as at 30 June 2017• All available information has been used including mapping from underground mining and assays as at 30 June 2017• Available resource data resulted in 41,277 one metre down hole composites used for grade estimation
• The Mineral Resources were estimated utilising a single Indicator weighted Kriging method (IK) to estimate gold for each of the mineralisation domains
SUKARI RESOURCESas at 30 June 2017
• Measured Mineral Resources are defined by a drill spacing of at least 20m x 20m and confined to the interpreted mineralisation defined by underground mine development. Indicated Mineral Resources are defined as areas outside the Measured Mineral Resource and defined by approximately 20m x 20m drill spacing. Inferred Mineral Resources include all remaining estimated mineralisation defined by a drill spacing of approximately 50m x 50m
• Mineral Resources are reported inclusive of those resources converted to Proven and Probable Mineral Reserves.
• The underground resource is located within the boundaries of the total resource, and is included within that total
Contact:Alexandra Carse
Investor Relations
+44 7700 713 738
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