38
1 Kumtor Gold Company “KGC” May 2019
1
KumtorGold Company
“KGC”May 2019
2
KGCBackground
3
Historical Safety TRIF Performance
10.82
2.29 2.2 2.05
4.544.91
3.26 3.57
2.22
1.23 1.04 1.110.38 0.24 0.35 0.31 0.19 0.2 0.23 0.21 0.39 0.14 0.19 0.00
0
2
4
6
8
10
12
1996 – 2017 TRIF(KGC + CONTRACTORS)
4
Historical Production & Net Earnings
22.5
9
31.7
7
41.1
6
43.2
8
52.4
7
54.3
2
77.7
1
84.8
6
81.0
4
85.4
2 114.
78
115.
55
115.
54
116.
47
150.
60
147.
61
176.
69
191.
72
169.
53
144.
40
181.
88
180.
33
0
50
100
150
200
Tonnes Mined ('Million)TOTAL TONNES MINED: 2,379.73
502
645 611 670
753
529
678 657
501
304 301
556 525 568 583
315
600 568 521 551 563 535
$19 $1 $(9) $4 $32 $(18) $14 $42 $23 $(15) $(8)
$93 $109
$303
$436
$(119)
$192 $129 $138
$225 $220 $188
(200)
(100)
0
100
200
300
400
500
600
700
800
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Ounces Poured & Net Earnings
Total Ounces Poured ('000) Net Earnings ('000)
TOTAL OUNCES POURED: 12.0 million TOTAL NET EARNINGS: $2.0 billion
5
Contribution to Kyrgyz Republic Economy
6
Tailings Management Facility
Kumtor River
Lysyi Pit Petrov Lake
Central PitSarytor Waste Dump
Central Valley Waste Dump
Northeast Waste Dump
Sarytor Pit SW Pit
Mill
Davydov Glacier
Mega Shop
5
Site Map
7
KGCLife of Mine
8
LOM – Estimated Production
2019e 2020 2021 2022 2023 2024 2025 2026 LOM
Total Tonnes Mined (kt) 170,020 157,010 168,017 132,652 85,552 713,251
Mining Rate (t/d) (millions) 0.46 0.42 0.46 0.36 0.23 - - - 0.19
Mill Tonnes (millions) 6.59 5.90 5.89 5.89 5.89 5.90 5.89 3.67 51.46
Mill Grade (g/t) 3.13 3.4 3.3 3.8 2.6 1.5 1.0 1.2 2.57
Contained Oz 663,895 647,662 621,555 727,677 497,921 289,288 183,783 136,990 3,768,770
Recovery % 81.7% 80.2% 82.5% 82.5% 74.7% 67.1% 54.3% 57.9% 77.4%
Recovered Oz 542,088 519,108 513,021 600,659 371,677 194,094 99,841 79,374 2,919,862
Carbon Fines Recovered Oz 18,000 3,932 3,932 3,932 3,932 3,932 3,932 3,932 45,525
Est. Total Recovered, Oz 560,088 523,040 516,953 604,591 375,609 198,026 103,773 83,306 2,940,393
9
LOM – Estimated Cash FlowMDP 2019e 2020 2021 2022 2023 2024 2025 2026
Gold Produced (oz) 560,087 523,118 516,063 607,965 400,477 200,335 133,702 107,446 Gold Price ($ US/ounce) 1,275 1,300 1,300 1,300 1,300 1,300 1,300 1,300 Total Gross Revenues ($ x 1000) 714,112 685,086 671,963 789,394 489,483 261,177 137,263 111,046
Operating, Exploration & Reclamation Costs ($ x 1000)
281,410 142,402 246,851 167,381 148,002 97,775 87,560 48,968 Capital Costs ($ x 1000) 146,436 274,776 134,389 126,245 74,210 1,300 800 400 14% Revenue Based Taxes ($ x 1000) 99,976 95,550 93,730 110,110 68,250 36,400 19,110 15,465 Total Cash Outflow ($ x 1000) 527,822 516,192 478,548 408,170 293,493 137,362 108,770 66,421 Net Cash Flow ($ x 1000) 186,290 168,894 193,416 381,223 195,990 123,815 28,493 44,626
186,290 168,894 193,416
381,223
195,990
123,815
28,493 44,626
2019 2020 2021 2022 2023 2024 2025 2026
Net Cash Flow ($'000)
LOM Cash Flow = $1.3 billion
10
Mine & Geology
11
Long Section/Cross SectionCentral Area Grade x Thickness Long Section
SB Zone
Hockey Stick
Central PitNortheast
Southwest
Sarytor
150
520406080
100120
NE
Area planned for drilling works
Potential targets for NE extensions
Potential targets for north extensions
Potential targets for SW extensions
Potential targets for northeast extensions
12
Exploration Opportunities -In-Pit vs Regional
Central Pit Northeast
SouthwestSarytor
NKumtor Trend Gold Distribution
Project holes
An $18 million exploration drilling program was planned for 2018-2019 years at the Kumtor mine. Planned exploration work is aimed at estimating the possible resources on the flanks of the South-West, Central Pit,
North-Eastern and Sarytor areas. The exploration drilling program was launched in June 2018. A total of 156 exploration holes are planned to be drilled. The total drilling will be 56,000 m. Infill drilling in Hockey Stick zone program has started since May 2019. Total drilling will be 20,000 м.
13
Exploration Opportunities -In-Pit vs Regional
GxTAu g/t*m
Current CentralPit Outline
Pit Shell 20
Southwest CB#3
Sarytor CB#2
Geological exploration areas
14
2018 YE Central Pit Development
15
2019 YE Central Pit Development
16
2020 YE Central Pit Development
17
2021 YE Central Pit Development
18
2022 YE Central Pit Development
19
2022 YE SW Pit Development
20
2023 YE Sarytor Pit Development
21
Dump Plan 2023
22
Mill Processing
23
Pit
Thickener Section
Tailings
Crushed Ore Stockpile
SAG Mill
Ball Mill
Grinding Section
Froth Flotation Section
Cyclones
Effluent Treatment
PlantKumtor River
Crushing Section
Carbon in Leach
Refining
Gold Dore Electro
Winning
13
Process Flow Sheet
24
Historical performance – Throughput, Grade and Recoveries
3.50
4.00
4.50
5.00
5.50
6.00
6.50
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
5.55
4.77
4.54
4.65
5.14
3.71
4.54
4.41
3.38
2.27
2.36
3.89
3.74
4.15
3.79
2.79
4.26
3.89
6
3.57
4
3.43
5
3.57
8
3.28
6
73.3
4%
78.5
0%
79.3
7%
81.5
0%
83.0
7%
78.1
3%
82.1
5%
72.9
5%
81.1
5%
72.7
2%
72.7
2%
79.6
6%
79.6
6%
79.5
3%
80.7
6%
75.6
2%
79.3
4%
78.0
0%
78.7
6%
79.2
4%
79.0
9%
79.3
4%
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
HISTORICAL
Grade(g/t) Recovery(%)
25
Expected LOM – Throughput, Grade and Recoveries
6,593 5,907 5,891 5,891 5,891 5,907 5,891
3,669
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2019 2020 2021 2022 2023 2024 2025 2026
TONNES OF ORE MILLED (000’s)
26
KGCSocial &
Closure Plan
27
Community & Social ProgramsProject 2013 2014 2015 2016 2017 2018 2019
planned Total
Karagat +project 301,372 226,230 284,427 101,202 913,231
Greenhouses 138,499 100,460 109,544 348,503
Microcredit agencies 1,040,066 851,808 198,385 104,745 70,000 69,535 70,000 2,404,538
"Youth Banks" 315,713 284,287 285,000 885,000
Repair of Bokonbaevo-Ton road 1,943,061 1,943,061
"One Village One Product" 174,022 89,150 80,000 127,650 115,000 585,822
Support for orphanage "Svetly Put" 91,193 74,220 74,060 239,473
Educational projects support 206,319 206,319
Rehabilitation of land (Lipenka and Ak-Dobo villages of Djety-Oguz region in 2013 and Svetlaya Polyana village of Djety-Oguz region in 2014) 200,000 242,000 442,000
Ecological camps , forums and other ecological initiatives 155,304 19,284 44,288 218,876
Donations 1,842,235 1,179,755 170,282 56,790 42,683 153,001 165,000 3,609,746
Karakol Zoo 84,301 49,701 22,972 20,400 177,374
Fruit dryers for youth regional committees 46,329 46,329
Heart surgery for children 90,313 7,960 98,273
Irrigation improvement in Djety-Oguz and Ton regions 173,546 188,800 86,200 171,248 200,000 819,794
"Youth Mean Business" project (support of small businesses of regional youth) 275,000 75,165 42,300 74,130 466,595
Potable water project 76,501 47,300 135,387 200,000 459,188
Community Owned projects (playgrounds, football fields and other initiatives) 136,745 31,944 90,000 344,422 300,000 903,111
"Bio.kg. Organic Aimaks" project 33,996 80,000 93,730 207,726
Ecological project "Green Point" 60,007 20,000 20,000 100,007
Issyk-Kul Education Improvement project 50,119 70,000 149,699 130,000 399,818
Biodiversity Conservation at Sarychat Eertash reserve 8,430 8,430
Local Business Initiatives 127,407 150,000 127,407
Emergency earthworks 60,000 60,000
Earthworks on rehabilitation of pastures 150,000 150,000
Project on introducing waste segregation in rural areas of Issyk-Kul oblast 60,000 60,000
Scholarship 30,000 30,000
DONATION FOR THE THIRD WORLD NOMAD GAMES 752,658 752,658 Total 6,407,784 3,198,987 1,885,440 814,890 648,883 2,227,298 1,630,000 16,663,281
28
Conceptual Closure Plan – Costs & Timing
Area / Activity Total Cost ($000's)
% of Total Cost
Waste Rock Dumps $7,046 12%Tailings Impoundment $20,607 36%Pits $6,544 12%Roads, Landfills, Waste Disposal $1,223 2%Buildings $2,572 5%Other Demolition & Equip Removal $1,197 2%Water Treatment $5,578 10%Decontamination, Other Miscellaneous Costs $1,044 2%Closure Plan Management $625 1%Construction Management $1,974 3%Monitoring & Maintenance $3,756 7%General & Administration $1,020 2%Human Resources $3,561 6%
LOM Direct Cost Total $56,747 100%
29
Conceptual Closure Plan – Key Assumptions
• Standardized Reclamation Cost Estimator (SRCE) Model used to estimatecosts (conservative assumptions where required)
• Mining finishes in 2023, and milling in 2026• Final waste rock dump footprints based on 2013 modelling which provide a
reasonable assessment of future movement• Topsoil stockpiled on site will be adequate for rehab requirements• Monitoring activities during closure/post-closure phases include water quality,
geotechnical stability & biodiversity• TMF spillway design based on Probable Maximum Flood event• Post closure land uses are accepted by stakeholders• Davidov glacier will continue to move toward the pit• The tailings dam cap can be placed by crushing rock in the Mill and depositing
via the tailings pipeline.• The TMF does not need to be revegetated (supported by GIIP)• A small number of buildings and roads will remain for a scientific research
centre
30
Risks & Continuous
Improvement
31
Major Production Risks
LOM Production Risks 2019 2020 2021 2022 2023 2024 2025 2026
SafetyOccurrence of LTI 13(H) 13(H) 13(H) 13(H) 13(H) 13(H) 13(H) 13(H)
Mine / MaintenancePitwalls Movement halting execution of planned Mine Plan 13(H) 13(H) 13(H) 13(H) 13(H) - - -
Waste Dumps Movement halting execution of planned Mine Plan 10(M) 10(M) 10(M) 10(M) 10(M) - - -
Pit Floods preventing ore mining 9(M) 6(M) 6(M) 9(M) 9(M) - - -Negative Block Model Reconciliation 9(M) 9(M) 9(M) 13(H) 13(H) - - -Equipment Mechanical Availability not meeting targets 6(M) 7(M) 8(M) 9(M) 7(M) - - -
Mill / Mill MaintenanceOre recoveries 5 (L) 5 (L) 8 (M) 8 (M) 8 (M) 8 (M) 8 (M) 8 (M)Equipment Mechanical Availability not meeting targets 13(H) 9(M) 9(M) 9(M) 9(M) 9(M) 9(M) 9(M)
Mill building foundation stabilization 22(E) 14(H) - - - - - -
EnvironmentMAC limit compliance 13(H) 13(H) 13(H) 13(H) 13(H) 13(H) 13(H) 13(H)MAD limit compliance 13(H) 13(H) 13(H) 13(H) 13(H) 13(H) 13(H) 13(H)
32
Continuous Improvement InitiativesImplemented CI Projects Date UOM Benefit
Mine1 Double tray extensions (ice movement) Jan-18 tonnes (mil) 0.22 New technology - Blast maker Implementation Mar-18 tonnes (mil) 7.33 Conveyor for ice transportation Apr-18 tonnes (mil) 0.44 Optimization of blast initiation systems Jan-19 $,(mil) 0.025 Mine sense dispatch system Jan-19 tonnes (mil) 0.76 Improve road conditions Mar-19 tonnes (mil) 0.2
Mill1 Increase Production Rates to 759 tpoh Jan-18 tpoh 7612 Flocculent Optimisation Jan-18 $,(mil) 0,07 3 Carbon fines processing Jan-18 Ounces 10,0434 FLT Cyclopack installation Sep-18 $,(mil) 0.15 Extraction of gold from tailings pond solution May-19 Ounces 350oz/y
Maintenance1 Tire repairs Jan-18 $,(mil) 0.72 Borusan Component Life Extension Jan-18 $,(mil) 0.63 3 Certified Rebuild of Dozers Jan-18 $,(mil) 1.74 Improve Liebherr shovel availability Jan-19 % 865 Own Component Rebuild in BMK Jan-19 $,(mil) 1.2
33
CI: Tower Mill & Leach Tanks
Current situation:
• Enumerated ore characteristics decrease Mill overall recovery, which affects to gold production
Conceptual Idea Add:• 2 Tower Mills to ultra grind flotation
concentrate fine-dispersed gold • 2 Leaching Tanks to increase extraction of gold
while leaching the flotation tails • The 2 Tower Mills and 2 Leaching Tanks are two
parts of one project
Key requirement:• Approval from Board of Centerra (possibly 2H
2019)Risk:• Permitting and licenses delays
• Approximate Capex: $18M• Potential overall recovery: 2-3%• Expected payback: <2 years
34
Headcount
35
Workforce
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (end of April)
Mine National 337 381 415 408 419 458 513 574 551 678 745 735 718 838 892 972 1023 979 943 976 1100 1088 1064Expatriate 25 23 18 13 10 9 6 7 4 4 4 2 6 8 8 6 4 7 7 6 1 0 0
Mill National 96 108 109 119 120 119 121 120 130 134 136 142 139 134 135 132 127 120 138 135 140 139 145Expatriate 27 26 25 17 18 16 14 13 13 10 3 3 2 2 1 1 1 2 1 1 5 0 0
Site Admin. National 415 397 488 453 456 438 433 434 449 528 542 650 595 645 652 656 678 676 650 640 662 679 640Expatriate 36 29 23 16 14 22 17 18 23 24 15 16 16 16 14 14 16 15 9 2 1 1 0
Maintenance National 178 200 209 218 224 226 227 226 247 280 344 441 429 471 489 529 547 548 540 553 558 564 572Expatriate 66 63 53 57 53 50 46 36 27 28 37 43 35 43 41 53 69 64 53 53 53 53 40
Bishkek Administration National 66 226 133 200 208 209 210 209 200 208 216 192 196 198 201 212 218 227 199 184 167 154 155Expatriate 3 15 8 9 7 10 9 9 9 11 10 9 9 9 9 8 10 11 10 9 6 7 6
Exploration National 0 0 0 0 0 0 0 0 58 61 52 53 53 109 109 103 4 0 0 0 0 27 62Expatriate 0 0 0 0 0 0 0 0 26 22 21 21 20 20 13 9 3 0 0 0 0 0 0
Underground National 0 0 0 0 0 0 0 0 0 0 0 4 76 87 95 40 0 0 0 0 0 0 0Expatriate 0 0 0 0 0 0 0 0 0 0 0 17 34 42 51 6 0 0 0 0 0 0 0National 1092 1312 1354 1398 1427 1450 1504 1563 1635 1889 2035 2217 2206 2482 2573 2644 2597 2550 2470 2488 2627 2651 2638Expatriate 157 156 127 112 102 107 92 83 102 99 90 111 122 140 137 97 103 99 80 71 66 61 46
Total 1249 1468 1481 1510 1529 1557 1596 1646 1737 1988 2125 2328 2328 2622 2710 2741 2700 2649 2550 2559 2693 2712 2684
10921312 1354 1398 1427 1450 1504 1563 1635
18892035
2217 22062482 2573 2644 2597 2550 2470 2488
2627 2651 2638
157 156 127 112 102 107 92 83 102 99 90 111 122 140 137 97 103 99 80 71 66 61 46
12491468 1481 1510 1529 1557 1596 1646 1737
1988 21252328 2328
2622 2710 2741 2700 2649 2550 2559 2693 2712 2684
0
500
1000
1500
2000
2500
3000
1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 ( E N D
O F A P R I L )
WORKFORCE TRENDNational Expatriate Total
36
Opportunities & Threats
37
Top 5 - Opportunities & Threats
Opportunites Threats1. Near Pit Exploration 1. Fuel Price2. Underground 2. Gold Price3. Continued CI Initiatives 3. Abnormal Hot Weather4. Concession Area Exploration 4. Control of Pit Walls5. Regional Exploration 5. Bulk Commodities Supplies Availability
38
Thank you
