Centerra Gold Records Net Earnings of $20.0 million or $0.07 per Common Share, Adjusted Net EarningsNG of $46.4 million or $0.16 per Common Share and Cash from Operations of $121.1 million All figures are in United States dollars and all production figures are on a 100% basis unless otherwise
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NEWS RELEASE
Centerra Gold Records Net Earnings of $20.0 million or $0.07 per Common Share,
Adjusted Net EarningsNG of $46.4 million or $0.16 per Common Share and Cash from Operations
of $121.1 million
All figures are in United States dollars and all production figures are on a 100% basis unless otherwise
stated. This news release contains forward looking information regarding Centerra’s business and
operations. See “Caution Regarding Forward-Looking Information”.
Toronto, Canada, May 1, 2020: Centerra Gold Inc. (“Centerra” or the “Company”) (TSX: CG) today
reported first quarter 2020 results. Key events and operating results of the first quarter included:
• Net earnings of $20.0 million and adjusted net earningsNG of $46.4 million, $0.07 and $0.16 per
common share, respectively.
• Cash flow from operations was $121.1 million.
• Production totalled 190,474 ounces of gold, including pre-commercial ounces from Öksüt, and
20.1 million pounds of copper.
• Production costs per ounce of gold sold were $423 per ounce.
• Production costs per pound of copper sold were $1.34 per pound.
• All-in sustaining costs on a by-product basis per ounce soldNG were $712 per ounce.
• Cash net of debt position of $57.8 million at quarter end, includes cash of $193.8 million. As at
March 31, 2020, the Company had $136 million drawn on its Corporate credit facility with total
liquidity of $557.8 million.
• COVID-19 update: Kumtor operating at targeted levels for both mill and mining production,
Öksüt open pit mining recommenced mid- April after a two -week period of reduced manpower,
Mount Milligan expected to return to targeted levels in the first half of May after reducing
manpower on April 6 and completing a scheduled two-week shutdown for process plant
maintenance. The Company continues to comply with government regulations relating to COVID-
19 as well as take steps to ensure safety of personnel and continuity of operations, including supply
chains.
• No change to 2020 guidance. To date the COVID-19 pandemic has not resulted in any material
impact on Centerra’s operations and the Company currently does not expect it will impact its 2020
production. However, the potential effects of COVID-19 are unpredictable, and the Company
continues to monitor the situation at each of its sites and take steps to prevent or minimize any
effects the pandemic may have.
• Dividend of C$0.04 per common share approved April 30, 2020, payable on June 4, 2020 to
shareholders of record on May 21, 2020.
All references in this document denoted with NG, indicate a non-GAAP term which is discussed under
“Non-GAAP Measures” and reconciled to the most directly comparable GAAP measure.
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Commentary
Scott Perry, President and Chief Executive Officer of Centerra stated, “ During the current outbreak of
COVID-19, we are consciously taking the necessary precautionary measures to prevent the spread and
ensure the health, safety and well -being of our employees, contractors and communities. We have also
celebrated a recent safety milestone, when on April 19, 2020, Öksüt achieved one year without a lost time
injury. Our continued commitment to Work Safe Home Safe is a driving force behind achieving such
milestones.”
“The strong operating performance at Kumtor and Mount Milligan in the fourth quarter of 2019 has carried
over into the first quarter of 2020. These two operations delivered consolidated gold production of 185,988
ounces at all-in sustaining costsNG on a by-product basis of $712 per ounce sold in the quarter. Kumtor had
another strong quarter producing 152,307 ounces of gold production at all-in-sustaining costsNG on a by-
product basis of $644 per ounce sold. Mount Milligan produced 33,681 ounces of gold and 20.1 million
pounds of copper at all-in-sustaining costsNG on a by-product basis of $901 per ounce sold. Öksüt poured
its first gold in January and produced 4,486 ounces in the quarter as it transitioned from construction into
operations. In aggregate our three operations delivered consolidated gold production of 190,474 ounces.”
“During the quarter, Kumtor continued to operate at its planned production rates, with the process plant
continuing to operate at approximately 18,000 tonnes per day processing stockpiled ore. In response to
COVID-19, the site has extended the crew rotation schedule from the usual two-week rotation up to four
weeks, replacement crews are brought in early and segregated; they are thoroughly screened prior to a crew
change and the various crews are separated by department when on site.”
“At Mount Milligan, we did announce a two-week reduction in process plant throughput with a significant
reduction in manpower related to mining activities as a precautionary action related to preventing the spread
of COVID- 19. The process plant continued to process stockpiled material before we commenced a
scheduled two-week maintenance shutdown of the process plant. We have completed the scheduled mill
maintenance and are ramping back up to full capacity . The spring melt has now commenced which will
facilitate a significant water draw and is expected to provide more than sufficient levels of water to run at
full capacity through the year as planned.”
“In Turkey, at Öksüt, we ceased mining activities on March 31, 2020, in response to the Turkish
Government initiatives aimed at reducing the spread of COVID-19. During that time, we continued to stack
ore onto the heap leach pad, continued to irrigate the pad and operated the ADR plant. After a two-week
period, in compliance with Turkish Government requirements, we brought back the mining crew to re-
commence mining and to continue ramping-up the site to full operations.”
“Presently, we are experiencing favourable currency exchange rates in the countries we operate in, as well
as low diesel prices which are expected to benefit the cost structure at our operations. In late April 2020,
the hedging committee approved an expansion of the Company’s hedging policies for both diesel and
Canadian dollar hedging for a period up to 24 months, previously limited to a 12-month period. This
increased coverage will enable our Kumtor and Mount Milligan operations to continue to benefit in the
medium term from current diesel prices and the Canadian exchange rate.”
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“Financially, the Company generated $121.1 million of cash from operations for the first three months of
2020, which includes $134.3 million from Kumtor and $27.2 million from Mount Milligan. During the first
three months of 2020, Kumtor and Mount Milligan delivered free cash flowNG of $96 million and $22
million, respectively. Company-wide, free cash flow NG in the first quarter of 2020 was $77 million and we
finished the quarter with a cash net of debt position of $57.8 million and liquidity of $557.8 million.”
“Based on the Company’s financial position, recent strong operating results and cash flows, the Board
approved on April 30, 2020 a dividend of C$0.04 per share.”
COVID-19 Update
Centerra continues to prioritize the health, safety and well -being of its employees, contractors,
communities, and other stakeholders during the current outbreak of COVID -19 and to take steps to
minimize the effect of the pandemic on its business.
The Company undertook a significant reduction of manpower and operations at the Öksüt Project on March
31, 2020 for a two- week period. This decision was taken in response to Turkish government initiatives
aimed at reducing the spread of COVID -19. The reduction result ed in the suspension of open pit mining
activities, though limited crews remained on site to place ore on the heap leach pad, to operate the
Adsorption-Desorption-Recovery (“ADR”) plant and to perform essential site services. Mining operations
recommenced in mid-April 2020, though operating on the weekend is subject to weekly approvals (which
have been obtained to date).
At Mount Milligan, as a precautionary measure, the mine reduced its activities and subsequently the process
plant undertook a two- week planned maintenance shutdown. Operations of the process plant restarted in
late April and mine operations are expected to ramp up production in mid-May.
Kumtor operations have continued with the support of the Kyrgyz Republic Government . Kumtor has
implemented a number of proactive measures to prevent the spread of COVID-19 such as extending mine
site crew rotations to four-weeks compared to two-weeks and separating key process plant personnel from
mining crews.
All other sites have also implemented a number of measures to prevent the spread of COVID-19 and ensure
the safety of their respective employees, contractors, communi ties and other stakeholders, including
developing detailed plans in case a reduction in or cessation of operations becomes necessary. Centerra’s
sites are complying with all government regulation relating to COVID-19.
On April 28, 2020, a Kemess employee informed the Company they had tested positive for COVID-19
while on break from site. The employee was last present at the Kemess site on April 16, 2020. As an
immediate measure, Kemess employees and relevant health authorities, including the Northern Health
Authority of British Columbia, have been informed and the Company has activated protocols to limit the
spread of the virus. The Company is also investigating when the employee may have contracted the virus
and whether other individuals may have been exposed.
To date, there are limited confirmed cases of COVID-19 in the Issyk-Kul district of the Kyrgyz Republic,
and the Kayseri province of Turkey, where the Kumtor Mine and the Öksüt Mine are located, and from
where they source their main workforce. To date, there ha ve been limited reported cases in the Prince
George area of British Columbia from which the Mount Milligan Mine sources some of its workforce. To
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ensure appropriate social distancing, the Company has temporarily closed it s head office in Toronto,
Ontario and regional offices in Bishkek, Kyrgyz Republic, Prince George, British Columbia and Ankara,
Turkey and has asked its workforce to operate remotely. The Company is continuously monitoring
information published by the Publ ic Health Agency of Canada, U.S. Centers for Disease Control and
Prevention (CDC), the World Health Organization (WHO) and other guidance released from relevant
government agencies.
In addition, Centerra has taken a series of measures to provide its empl oyees with accurate information,
help prevent infection and reduce the potential transmission of COVID -19. These include activation of a
global crisis management team, frequent communication with and compassionate support of all our people,
a complete prohibition on employee travel, strict protocols for access to and from work at operating sites,
including temperature checks and interviews upon entry, increased cleaning and hygiene protocols,
modifications to work shifts and accommodations at site.
In addition to the above precautionary measures, operating mine sites continue to assess the resiliency of
their supply chains, increasing mine site inventories of key materials and developing contingency plans to
allow for continued operations.
The Company notes that the situation is fluid and has been changing rapidly. The measures enacted reflect
the Company’s best assessment at this time but will remain flexible and be revised as necessary or advisable
and/or as recommended by the public health and governmental authorities. There can be no assurance that
future events or circumstances relating to COVID -19 will not disrupt ongoing operations or affect 2020
guidance.
Exploration Update
Exploration activities in the first quarter of 2020 included drilling, surface sampling, geological mapping
and geophysical surveying at the Company’s various projects (including earn-in properties), targeting gold
and copper mineralization in Canada, Mexico, Turkey, Finland, USA and Kyrgyzstan. Exploration
expenditures totaled $7.8 million in the first quarter of 2020 compared to $5.0 million in the same quarter
of 2019. The Company’s 2020 exploration program is primarily focused on brownfield exploration at
Kumtor, Mount Milligan, and Öksüt.
Drill programs at Mount Milligan and Kumtor were suspended in March and early April, respect ively, to
reduce manpower at sites in response to COVID-19. The Company expects the drilling (including at Öksüt)
to resume later in the second quarter of 2020.
Brownfield Exploration
Kumtor Mine
The drilling program for 2020 includes 55,000 metres of exploration and 15,000 metres of infill drilling,
which are focused on priority and high potential targets. Primary targets include various zones of the
Central, Southwestern and Sarytor pits where a recently updated Kumtor resource block model, based on
enhanced geological modelling and positive drilling results between 2018 and 2019, demonstrated
substantial growth in measured, indicated and inferred resources.
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In addition, exploration drilling is expected to resume in the underexplored segments of the Kumtor Gold
Trend – the NE Targets, Bordoo, Akbel and conceptual targets (Hope Zone and others).
During the first quarter of 2020, exploration drilling programs continued with the completion of fifty-three
diamond drill holes for 13,816 metres and eighteen reverse circulation (RC) drill holes for 2,037 metres.
Exploration drilling focused on testing zones of sulfide and oxide mineralization near the surface for
additional open pit resources, at the corridor between the Central and Southwest pits ( Hockey Stick and
Kosholuu zones), on the periphery of the Sarytor Pit , Northeast targets, Muzdusuu area and also on the
northeast side of the Central Pit.
Central Pit
In the Hockey Stick Zone, four exploration drill holes for 885 metres were completed. The best intercepts
are as follows:
D2009 7.2 metres @ 1.86 g/t Gold (“Au”) from 101.8 metres
1.0 metres @ 2.32 g/t Au from 120.5 metres
10.2 metres @ 1.00 g/t Au from 136.0 metres
9.8 metres @ 1.06 g/t Au from 159.4 metres
In the northeast wall of the Central Pit, six exploration drill holes for 1,472 metres were completed in the
quarter. Significant intersections are reported below:
D2039A 9.0 metres @ 1.04 g/t Au from 63.2 metres
Southwest Area
In the first quarter of 2020, a total of twenty-one diamond drill holes were completed in the Southwest area
for a total of 5,230 metres.
Seventeen drill holes have been completed between Southwest and Central pits on the Hope Zone for a total
of 3,195 metres. Results from recent drilling have delineated a lens-shaped oxide gold mineralization. This
mineralization extends along the hanging wall of the Kumtor lower thrust for more than 400 metres. The
mineralization is partially eroded in the eastern direction and is still open to the west. Maximum thickness
of the oxide mineralization is around 25 metres. Recent drilling results indicate new potential oxide areas
that require further exploration. Results for most of the first quarter of 2020 drilling is pending and selected
intercepts to date are highlighted below:
SW-19-295 29.2 metres @ 4.76 g/t Au from 165.8 metres
Including 13.0 metres @ 9.61 g/t Au from 175.8 metres
SW-19-301 28.6 meters @ 10.33 g/t Au from 61.4 metres
Including 6.3 metres @ 21.49 g/t Au from 71.1 metres
In the Kosholuu Zone, four drill holes were completed for a total of 2,035 metres. Assay results are not yet
available. Several pervasive alteration zones were intersected in hole SW-20-320. The combined width of
the mineralized intervals is about 50 meters.
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Sarytor Area
In the Sarytor Area, eleven drill holes were completed for a total of 3,426 metres. Drilling has intersected
strong mineralization in all holes. Selected best intersections are reported below.
SR-19-229 30.6 metres @ 2.01 g/t Au from 341.3 metres
Including 7.6 metres @ 4.27 g/t Au from 264.3 metres
SR-19-230 50.3 metres @ 1.46 g/t Au from 176.7 metres
Including 3.7 metres @ 3.00 g/t Au from 222.3 metres
6.0 metres @ 1.66 g/t Au from 256.0 metres
SR-19-231 5.7 metres @ 1.56 g/t Au from 181.4 metres
36.5 metres @ 2.47 g/t Au from 193.6 metres
Including 9.7 metres @ 5.13 g/t Au from 220.4 metres
SR-20-234 41.2 metres @ 2.69 g/t Au from 197.7 metres
Including 3.8 metres @ 5.68 g/t Au from 13.2 metres
SR-20-238 24.3 metres @ 3.34 g/t Au from 200.5 metres
Including 5.0m @ 8.96 g/t Au from 217.1 metres
17.3 metres @ 3.49 g/t Au from 230.8 metres
5.0 metres @ 2.55 g/t Au from 253.2 metres
SR-20-239 36.1 metres @ 2.51 g/t Au from 226.1 metres
Including 4.2m @ 5.54 g/t Au from 226.1 metres
SR-20-240 49.1 metres @ 3.24 g/t Au from 229.0-278.1 metres
Including 7.8m @ 6.69 g/t Au from 231.2 metres
Northeast Area
In the Northeast Area, one diamond drill hole for 345 metres and eighteen reverse circulation (RC) drill
holes for 2,037 metres were completed in the quarter. Results of RC drilling has revealed several intervals
of gold mineralization. The most significant results were found in the north-western part of the area where
drilling intersected oxide gold mineralization confined to tectonic mélange zone. Selected best intercepts
are listed below, but most of the results are not yet available. Further drilling in the Northeast Area will be
planned after obtaining results from the holes drilled in the quarter.
DNR2024 76.0 metres @ 0.95 g/t Au from 0.0 metres
Including 32.0 metres @ 1.90 g/t Au from 25.0 metres
DNR2031A 19.0 metres @ 1.27 g/t Au from 30.0 metres
Including 7.0 metres @ 2.94 g/t Au from 30.0 metres
Muzdusuu Area
Eleven diamond drill holes were completed in the Muzdusuu A rea for a total of 2,458 metres. Drilling in
the Muzdusuu A rea (outside Central Pit) is designed to explore for oxide gold mineralization along the
Kumtor lower thrust. Several drill holes intersected broad intervals (up to 34 metres) of oxidized limestone,
which carry low Au values.
DM2043 34.1 metres @ 0.63 g/t Au from 67.4 metres
Including 10.8m @ 1.28 g/t Au from 77.2 metres
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The above mineralized intercept was calculated using a cut -off grade of 1.0 g/t Au for sulfide and 0.1 g/t
Au for oxide mineralization, minimum interval of 4.0 metres and a maximum internal dilution interval of
5.0 metres. Drill collar locations and associated graphics are available at the following link:
https://pr.globenewswire.com/FileDownloader/DownloadFile?source=ml&fileGuid=628538a
8-5aa1-42a4-9bbf-ee8625f76863
Mount Milligan Mine
The 2020 in-pit infill/expansion drilling program at Mount Milligan began in February. Four drill holes
were completed during the first quarter totalling 1,659 metres. This included two drill holes in the Rainbow
Fault Extension Zone south of the Southern Star deposit, one drill hole in the Saddle Gap between the
Saddle and 66 zones, and one drill hole in the Great Eastern Fault Zone. Best assay results returned during
the quarter for the first two drill holes are reported below. Results for the remaining drill holes are pending.
Rainbow Fault Extension Zone
20-1235 96.9 metres @ 0.29 g/t Au, 0.13% Copper (“Cu”) from 232.0 metres
Including 2.0 metres @ 3.04 g/t Au, 0.86% Cu from 240.0 metres
20-1236 17.2 metres @ 0.23 g/t Au, 0.08% Cu from 237.0 metres
DDH 20-1235 represents a 210 metre step-out to the south of recent drilling (DDH19-1129) at the southern
margin of the Southern Star deposit. The 2020 in-pit infill/expansion and brownfield skid drilling programs
are being undertaken within and marginal to the 2017 ultimate pit boundary. The in-pit program consists of
approximately forty drill holes (17,500 metres) in five target zones (Southern Star, Saddle, DWBX, WBX
and GE Fault). The brownfield program consists of approximately twenty-five drill holes (10,000 metres)
in six target zones (South Boundary, RF Extension, SS West, King Richard, Goldmark-Oliver and North
Slope/Zone 4).
The above mineralized intercepts were calculated using a cut-off grade of 0.1 g/t Au and a maximum
internal dilution interval of 4 metres. Drill collar locations and associated graphics are available at the
following link:
https://pr.globenewswire.com/FileDownloader/DownloadFile?source=ml&fileGuid=628538
a8-5aa1-42a4-9bbf-ee8625f76863
A listing of the drill results, drill hole locations and plan map for the Mount Milligan Mine have been filed
on the System for Electronic Document Analysis and Retrieval (‘SEDAR’) at www.sedar.com and
are available at the Company’s web site www.centerragold.com.
Öksüt Mine
At the Öksüt Mine, planning for the 2020 diamond drilling program was completed in the first quarter of
2020. Subject to the continuing impact of COVID-19, the drilling program is expected to commence in the
second quarter of 2020 with three drilling rigs.
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Qualified Person & QA/QC – Exploration
Exploration information and other related scientific and technical information in this document regarding
the Kumtor Mine were prepared in accordance with the standards of NI 43-101 and were prepared,
reviewed, verified and compiled by Boris Kotlyar, a member with the American Institute of Professional
Geologists (AIPG), Chief Geologist, Global Exploration with Centerra, who is the qualified person for the
purpose of NI 43-101. Sample preparation, analytical techniques, laboratories used and quality assurance-
quality control protocols used during the exploration drilling programs are done as described in the Kumtor
Technical Report dated December 31, 2014. The Kumtor deposit is described in the 2019 Annual
Information Form and the Kumtor Technical Report, which are both filed on SEDAR at www.sedar.com.
Exploration information and other related scientific and technical information in this document regarding
the Mount Milligan Mine were prepared in accordance with the standards of NI 43-101 and were prepared,
reviewed, verified and compiled by C. Paul Jago, Member of the Engineers and Geoscientists British
Columbia, Exploration Manager at Centerra’s Mount Milligan Mine, who is the qualified person for the
purpose of NI 43-101. Sample preparation, analytical techniques, laboratories used and quality assurance
quality control protocols used during the exploration drilling programs are done consistent with industry
standards and independent certified assay labs are used. The Mount Milligan deposit is described in the
2019 Annual Information Form and a technical report dated March 26, 2020 (with an effective date of
December 31, 2019) prepared in accordance win NI 43-101, both of which are available on SEDAR at
www.sedar.com.
Exploration information and other related scientific and technical information in this document regarding
the Öksüt Mine were prepared, reviewed, verified and compiled in accordance with NI 43-101 by Mustafa
Cihan, Member of the Australian Institute of Geoscientists (AIG), Exploration Manager Turkey at
Centerra’s Turkish subsidiary Centerra Madencilik A.Ş., who is the qualified person for the purpose of NI
43-101. Sample preparation, analytical techniques, laboratories used and quality assurance-quality control
protocols used during the exploration drilling programs are done consistent with industry standards and
independent certified assay labs are used. The Öksüt deposit is described in Centerra’s most recently filed
Annual Information Form and in a technical report dated September 3, 2015 (with an effective date of June
30, 2015) prepared in accordance with NI 43-101 both of which are available on SEDAR at
www.sedar.com.
About Centerra
Centerra Gold Inc. is a Canadian-based gold mining company focused on operating, developing, exploring
and acquiring gold properties in North America, Asia and other markets worldwide and is the largest
Western-based gold producer in Central Asia. Centerra operates two flagship assets, the Kumtor Mine in
the Kyrgyz Republic, the Mount Milligan Mine in British Columbia, Canada and now has a third operating
gold mine, the 100%-owned Öksüt Mine in Turkey, which began production in January 2020. Centerra's
shares trade on the Toronto Stock Exchange (TSX) under the symbol CG. The Company is based in
Toronto, Ontario, Canada.
Conference Call
Centerra invites you to join its 2020 first quarter conference call on Friday, May 1, 2020 at 8:30 AM Eastern
Time. The call is open to all investors and the media. To join the call, please dial toll-free in North America
1 (800) 895-8003. International participants may access the call at +1 (212) 231- 2909. Results summary
slides are available on Centerra Gold’s website at www.centerragold.com. Alternatively, an audio feed