Growth Through Cash Flow. Investor Presentation May 2016

Transcription

1 Growth Through Cash Flow Investor Presentation May 2016

2 Disclosures 2 Forward Looking Statements: There are risks associated with an investment in the shares of Centamin. Recipients of this presentation should review the risk factors and other disclosures regarding Centamin contained in the preliminary prospectus and subsequent annual reports and Management Discussion and Analysis reportsof Centamin that have been filed with Canadian securities regulators and are available at It should be specifically noted that the potential quantity and grade from the Sukari underground mine is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource. This presentation contains "forward looking information" (or "forward looking statements") which may include, but are not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects (including the Sukari Project), the future price of gold, the estimation of mineral reserves and resources,the realization of mineral reserve estimates, the timing and amount of estimated future production, revenues, margins, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of construction, costs and timing of future exploration, the timing for delivery of plant and equipment, requirements for additional capital, foreign exchange risk, government regulation of mining and exploration operations, environmental risks, reclamation expenses, title disputes or claims, insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Often, but not always, forward looking statements can be identified by the use of words such as "plans", "hopes", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of suchwords and phrases, or statethatcertain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward looking information involves and is subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward looking information. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities and feasibility studies; assumptions in economic evaluations which prove to be inaccurate; fluctuations in the value of the United States dollar and the Canadian dollar relative to each other, to the Australian dollar and to other local currencies in the jurisdictions in which the Company operates; changes in project parameters as plans continue to be refined; future prices of gold and other metals; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes or slow downs and other risks of the mining industry; climatic conditions; political instability, insurrection or war; arbitrary decisions by governmental authorities; delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Discovery of archaeological ruins of historical value could lead to uncertain delays in the development of the mine at the Sukari Project. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward looking information contained herein is made as of the date of this presentation and the Company disclaims any obligation to update any forward looking information, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward looking information or statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information or statements. Accordingly, readers should not place undue reliance on forward looking statements. Competent Persons: Information in this presentationwhich relates to resource, reserve, exploration, geology, sampling and drilling is based on information prepared and approved by geologist Mr Richard Osman who is a full time employee of the Company, and is a member of the Australasian Institute of Mining and Metallurgy with more than five years experience in the fields of activity being reported on, and is a Competent Person for this purpose and is a Qualified Person as defined in National Instrument of the Canadian Securities Administrators. Refer also to the technical report entitled Mineral Resource and Reserve Estimate for the Sukari Gold Project, Egypt dated 30 January 2014 and filedonsedaratwww.sedar.com, for further discussion of the extent to which the estimate of mineral resources/reserves may be materially affected by any known environmental, permitting, legal, title, taxation, socio political, or other relevant issues.

3 3 Our Strategic Priorities 1. CASH FLOW GENERATION 2016 guidance 470koz Au at US$680/oz cash cost of production & US$900/oz AISC Production growth to c.500koz in 2017 at AISC <US$900/oz Further production upside / lower cash costs at Sukari for no material capex 2. SHAREHOLDER RETURNS US$276m in cash and liquid assets at 31 March 2016 No debt, no hedging and Sukari capex complete Dividend a priority: competitive yield 3. LONG TERM GROWTH Exploration /development to be funded from cash reserves after dividend Significant Sukari reserve expansion potential, especially via high grades from underground Advanced exploration in Burkina Faso; highly prospective tenements in Côte D Ivoire

4 4 Our Assets Burkina Faso Sukari Gold Mine, Egypt Advanced exploration 2,200km 2 licence holding 3.2Moz resource at Konkera Multiple further prospects along >100km regional structure Systematic drill program Focus on high grades near surface Operating mine Production since Moz resource 8.8Moz reserve koz Au p.a. target production Expected +20 year mine life Advanced exploration Focus on high grade underground Côte D Ivoire Early stage exploration 1,520km 2 licence holding +1,800km 2 licences under application Highly prospective region across the border from Burkina Faso Early stage exploration Multiple prospects around Sukari Hill

5 5 Production Growth and Cost Reduction AISC expected to reduce below US$900/oz in Sukari production upside (no capex) US$/oz* year mine life Production* ('000 ounces) F 2017F 2018F 2019F 0 Cash Cost of Production AISC * Total gold production includes estimated production from the underground mine. Note that the potential quantity and grade of the forecast underground production is conceptual in nature. There has been insufficient exploration to fully define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. Production and cost forecasts for were first provided in the May 2015 Capital Markets Day presentation see company website

6 6 Long Reserve Life, Low Costs and Growth Potential AISC (US$/oz)* $1,250 $1,150 Bubble size = Production* IMG PRU ACA $1,050 BTO $950 $850 EDV RRS TGZ RSG CEY Significant reserve growth potential through exploration $750 $650 ASR SMF Further upside to Sukari production & lower costs (no additional capex) $ Source: Company reports * Production and costs are based on 2016 company guidance where available, otherwise AISC for RRS based on Canaccord Genuity, GMP Europe, Investec, Nomura, Numis, RBC consensus Implied Reserve Life (reserves of producing assets/forecast annual production)*

7 7 Sukari Gold Mine 8.8Moz reserve and 14Moz resource, with significant upside from exploration An expected +20 year mine life No further expansion capex required Expanded production rate of ,000 oz p.a. achieved Optimisation process continues to target production rates in excess of base case

8 8 Sukari: Production Upside Through Optimisation Plant throughput target c.12mtpa vs. current 11Mtpa forecast Plant recovery target 90% vs. current 88% forecast Underground infrastructure capacity of c.1.5mt p.a. ore vs. current mining rate of Mtpa Open pit fleet capacity in excess of forecast 66Mtpa mining rate

9 9 Sukari Underground: Adding High Grade Reserves Recent results from underground drilling (subsequent to June 2015 reserve estimate) 17.9g/t 6.8g/t 111g/t 6.7g/t 13.6g/t 9.1g/t 50.8g/t 12.5g/t 2.5 km 258g/t 150g/t 48.2g/t Stopes mined 2010 to date 289g/t 78g/t 39.8g/t 46.1g/t 108g/t N Final open pit c.1,550mt ore + waste UG grade (g/t Au) Ptah Life of mine access to depth extents. Amun Initial focus area for mining. Amun Looking North

10 Amun Zone (Looking North) Focus of Current Mining 10

11 11 Ptah Zone (Looking North) Focus of Reserve Growth Cross sections 450 metres apart

12 12 Ensuring a Safe and Productive Workforce Lost Time Injury Frequency Rate (LTIFR)* *per 200,000 hours worked % Injury rates are trending towards our zero harm target Labour costs in US$ per ounce gold produced % 77 Labour productivity has improved with Sukari expansion

13 13 Growth Beyond Sukari: Focus on Exploration Limited high quality acquisition targets within our focus regions (Africa & Arabian Nubian Shield) Centamin s exploration strategy is focused on: - Significant land holdings in prospective regions - Operating in stable jurisdictions with attractive fiscal regimes - Becoming a multi asset gold producer maintaining lowest quartile cost profile 2016 exploration budget (outside Sukari) of US$25m Metres drilled by CEY (post acquisition) Burkina Faso Côte D'Ivoire Diamond 14,097 RC 255,425 24,492 Air Core 121,431 40,446 Auger 97,590 72,911

14 14 West Africa: District Scale Exploration c.2,200km 2 in Burkina Faso c.1,520km 2 in Côte D Ivoire + c.1,800km 2 under application Existing 3.2Moz resource* at Konkera Multiple high grade areas (focus on Wadaradoo and Napelapera) *1.9Moz Indicated & 1.3Moz Inferred Resource at Konkera prospect

15 15 Burkina Faso: Wadaradoo One of Several Emerging Prospects Numerous high grade targets along a +5km trend Mineralisation along main shear and secondary structures Potential porphyry and granitoid hosted areas Positive preliminary metallurgical testwork

16 16 Burkina Faso: Napelapera Broad and consistent mineralised zones over 4km open along strike Higher grade zones intersected in the south Hosted in granodiorite Positive preliminary metallurgical testwork

17 17 Côte D Ivoire Initial results support exploration model within granitoids Similar geology and structural trends as the Napelapera prospect in Burkina Faso

18 18 Industry leading Dividend Yield 2014 dividend US2.86 cents/share (c.us$33m payout) 2015 dividend US2.94 cents/share (c.us$34m payout) 4% 3% Dividend Yield 2% 1% >100 further gold producers that do not pay a dividend 0% Source: SNL

19 19 Self Funding the Next Stage of Growth Forecast year end cash balance following expected Profit Share*, dividend (at 2015 level) and exploration 800 Forecast Year end Cash Balance (US$ million) US$1,400/oz gold US$1,200/oz gold Ability to fund next stage project development from forecast cash reserves F 2017F 2018F 2019F Cash Held as Treasury Cash Build at US$1,200/oz Gold Incremental Cash Build at US$1,400/oz Gold * Profit Share forecasts are estimated as per the terms of the Concession Agreement. Centamin elected to make advance payments against future profit share between 2013 and 2015 to the value of US$28.75 million, in order to demonstrate goodwill towards the Egyptian government. The recovery of these prepayments has not been included in these forecasts

20 20 Centamin Shares: Out Performing the Peer Group Largest Shareholders BlackRock 12.9% Van Eck 11.9% Directors & Management 6.7% T Rowe Price 4.0% Dimensional Fund Advisers 3.7% Aberforth 3.3% Franklin Resources 2.8% Norges Bank 2.8% Legal & General 2.7% Analyst Coverage Source: Bloomberg CEY.L FTSE Gold Mines Index Gold Price Shares Issued 1,152,107,984 Share Price (28 Apr 2016): 112.5p Market Capitalisation: 1,300m (US$1,900m) Markets: London Stock Exchange (CEY) Toronto Stock Exchange (CEE) Bank of America Merrill Lynch James Bell Canaccord Genuity Nick Hatch Cenkos Will Dymott Goldman Sachs Eugene King Investec Hunter Hillcoat Macquarie Patrick Morton Mirabaud Nikolas Toleris Numis Jonathan Guy Panmure Gordon Kieran Hodgson Royal Bank of Canada Richard Hatch

21 21 Summary: Shareholder Returns and Value Driven Growth TRACK RECORD OF PROJECT DELIVERY Sukari staged construction delivered on budget Staged expansion =nodebt requirement 2016 guidance 470koz rising to c.500koz in 2017 NEXT STAGE GROWTH Funded from excess cash flows Advanced exploration in Burkina Faso Long term growth from Cote D Ivoire FREE CASH FLOW No further expansion capex at Sukari Low cost: US$900/oz AISC and trending lower Long +20 year expected mine life SHAREHOLDER RETURNS US$276m cash and liquid assets No debt and no hedging Competitive dividend policy OPTIMISING PRODUCTION Further production/cost upside at Sukari No additional expansion capex required Significant reserve expansion potential

22 22 Centamin plc CONTACT US Andrew Pardey, Chief Executive Officer Andy Davidson, Head of Investor Relations +44 (0)

23 Appendix

24 24 Sukari Resources Sukari Total Mineral Resource 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) 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 2015 and adjusted for underground mine workings as at 30 June All available assays as at February Resource data set comprises 252,449 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). Sukari Underground Mineral Resource (included within the total resource above) Resource Tonnes ( 000 t) Grade (g/t Au) Gold ( 000 oz) Measured 1, Indicated 2, Total M&I 4, ,020 Inferred 6, ,240 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 All available information has been used including mapping from underground mining and assays as at June Available resource data resulted in 21,369 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. 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 open pit resource, and is included within that total.

25 25 Sukari Reserves Sukari Open Pit Mineral Reserve Stockpile Total Totals may not equal the sum of the components due to rounding adjustments. Based on mined surface as at 30 June 2015 and a gold price of US$1,300 per ounce. International diesel price reductions allowed a lower diesel price assumption, resulting in a lowering of the mining cost and the CIL processing costs. Diesel price used was US$0.70/litre and the previous diesel price was US$0.84/litre, current fuel price for Sukari is US$0.52/litre Cut off grades: CIL oxide 0.40g/t, CIL transitional 0.42g/t, CIL sulphide 0.42g/t, Dump Leach oxide 0.08g/t. Designed underground reserves detailed below do not form part of the open pit reserve Total 2, Totals may not equal the sum of the components due to rounding adjustments. Based on underground mine workings as at 30 June Stopes for reserves estimation are designed using a 3g/t cut off and mining dilution applied at 0.8g/t as all stopes are located in mineralised porphyry and 10% mining loss is then assumed to allow for stope bridges and material left in stopes after mining. Mineral Resources are reported inclusive of resources converted to Proven and Probable Mineral Reserves 4 Change in stockpile 1,700 5 Diesel price increase (removal of subsidy) Probable Proven Resource additions and other* Gold ( 000 oz) Mining depletion Grade (g/t Au) Reserve Tonnes ( 000 t) 1, Sukari Underground Mineral Reserve UG Reserve 2015 Reserve 3.4 Stockpile Change in stockpile 1.07 Open Pit Reserve Diesel price reduction ($0.84 to $0.70/litre) Resource additions and other* Probable Proven Key Factors on Reserve Estimate Changes Mining depletion Gold (Moz) Reserve Grade (g/t Au) 1.11 In situ Gold (Moz) Tonnes (Mt) 130 * includes resource growth, changes to reserve parameters (e.g. gold price, cost inputs ex fuel, pit design) and adjustments for underground mined stopes/development

26 26 Sukari Production Forecasts - Open pit total material movement of 66Mtpa - Plant throughput at 11Mtpa and 88% metallurgical recovery - Underground mining assumed at 1Mtpa and 6g/t* FY13 FY14 FY15 YTD 16 FY16 FY17 FY18 FY19 OPEN PIT Total Tonnes Mined kt 41,718 44,820 57,766 15,157 66,552 66,740 66,569 66,569 Waste kt 30,054 33,884 49,020 12,752 57,163 54,461 54,567 53,759 Ore kt 11,664 10,936 8,746 2,405 9,390 12,279 12,002 12,810 Strip Ratio x Mined Grade g/t PROCESSING Total Tonnes Milled kt 5,684 8,428 10,575 2,876 11,004 10,979 11,034 10,996 Open Pit kt 5,102 7,481 9,391 2,596 10,004 9,979 10,034 9,996 Underground* kt , ,000 1,000 1,000 1,000 Average Head Grade g/t Open Pit g/t Underground* g/t Recovery % 88.5% 87.8% 88.8% 88.6% 88.0% 88.0% 88.0% 88.0% Production Open Pit koz Production Underground koz Production Dump Leach koz Gold Production koz * the potential quantity and grade of the forecast underground production is conceptual in nature. There has been insufficient exploration to fully define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

27 27 Sukari Processing: Improving Productivity Beyond Nameplate Pre expansion (Plant 1) operated consistently above 5Mtpa nameplate from Q Expanded 10Mtpa nameplate achieved from Q Mtpa rate (basis of current production forecasts) achieved from Q Potential to exceed 11 Mtpa with further optimisation 12.0 Stage 4 (10Mtpa) Stage 3 (5Mtpa) Million Tonnes Plant 1 Ore Processed Plant 2 Ore Processed

28 28 Sukari Open Pit: The backbone of the operation c.190mt total material mined to date; c.1,550mt remaining* OP head grades reverting towards reserve average in Base case target of 66 67Mt p.a. total material movement (~5.9x life of mine strip ratio) Fleet supports ~100Mt p.a. mining rate Million Tonnes grade (g/t) OP ore mined OP Plant Feed Grade Final open pit shell (20 yr mine life) LOM ore remaining in reserve*: 1.09g/t = 8.0Moz *basis June 2015 reserve statement (see appendix)

29 29 Sukari Underground: Consistently adding value Mechanised mining: a combination of open and sub level stoping over widths 3.5 to 10m Average stope grades 5 18g/t, depending on structural setting (2 sub parallel controlling structures) Current resource/reserve limited to southern Amun region and c.400m below surface Development of Ptah decline for long term access to lateral and depth extents beyond final pit shell Resource expansion drilling indicates continuity of high grades 1, , Ore Mined ('000 tonnes) Grade (g/t) Development Ore Stoping Ore Mined Grade

30 30 Focus on Cost Control Year on year decrease in operating costs per tonne mined/milled Unit cost reductions in 2015 were principally driven by the lower fuel price Focus from 2016 is to realise further material cost reductions Potential to drive costs below current forecast levels as productivity from the expanded operation is optimised Open Pit Cost per Tonne Mined Underground Cost per Tonne Mined* Processing Cost per Tonne Milled F 2016F onward F 2016F onward F 2016F onward *total cost of development + stoping divided by the total ore tonnes mined. Note that development is treated as a sustaining capital cost

31 31 Cost Per Ounce Falling as Production Rises F 2017F 2018F 2019F Corporate US$1200/oz TSF, rebuilds & other sustaining UG development Cash Operating Cost Cash Cost of Production AISC * See footnote on earlier slide regarding Sukari production forecasts Production* ('000 ounces) 500 with a falling cost per ounce as production growth continues US$/oz* US$ million US$ operating and sustaining costs are forecast to remain stable

32 32 Free Cash Flow: Financing Dividend and Growth YTD F 2017F 2018F 2019F Gold Production koz Realised Gold Price US$/oz 1,570 1,667 1,384 1,258 1,159 1, Revenue US$m Cash Cost of Production US$m (113) (176) (237) (275) (313) (76) (320) (317) (319) (316) US$/oz Cash Operating Margin US$m Royalty US$m (13) (13) (15) (14) (15) (4) (17) (18) (18) (18) Other cost of sales US$m (8) Capex Sustaining US$m (54) (48) (90) (40) (37) (13) (75) (91) (79) (79) Corporate G&A US$m (5) (10) (11) (13) (15) (2) (13) (13) (13) (13) AISC US$m (182) (238) (343) (340) (388) (94) (424) (438) (429) (426) US$/oz Change in Working Capital US$m (15) 12 (41) (55) Profit Share US$m (48) (57) (71) Operational Free Cash Flow US$m Capex Growth US$m (62) (176) (177) (23) 0 0 0??? Exploration Growth US$m (23) (15) (15) (26) (34) (13) (25) (25) (25) (25) Dividend Paid US$m (10) (34) 0 (34) (34) (34) (34) Other Investing & Financing Cash Flow US$m (4) (2) (1) 3 (5) Free Cash Flow US$m 54 8 (73) Effect of FX on cash balance US$m 1 3 (3) (2) (2) (1) Cash & Liquid Assets US$m The staged expansion of Sukari was funded from Free Cash Flow Projected cash build (after dividend & exploration) provides finance for next stage growth

33 33 Projected Cash Build Forecast cash flows* assuming a flat US$1,200 per ounce gold price Opening Cash Cash From Operations Profit Share Dividend Exploration Cash From Operations Profit Share Dividend Exploration Cash From Operations Profit Share Dividend Exploration Cash From Operations Profit Share Dividend Exploration Cash From Operations Profit Share Dividend Exploration Closing Cash Cash Flow (US$m)* * Profit Share forecasts are estimated as per the terms of the Concession Agreement. Centamin elected to make advance payments against future profit share between 2013 and 2015 to the value of US$28.75 million, in order to demonstrate goodwill towards the Egyptian government. The recovery of these prepayments has not been included in these forecasts

34 34 Long Term Growth: Funded From Cash Flows After Dividend Cash Generation US$186m cash from operations in 2015 UG development capex: US$30 35m p.a. Sustaining capex: US$30 40m p.a. Cash Balance US$276m in cash and liquid assets at end March 2016 DIVIDEND RETURN TO SHAREHOLDERS. Debt and Hedge Free Fully funded by cash flow and equity Corporate G&A: c.us$13m p.a. Exploration: c.us$25m p.a. *unaudited company estimate

35 35 The Sukari Gold Mine Open pit and underground mine in the Eastern Desert of Egypt - 700km from Cairo - 25km from Red Sea Large scale, low cost producing asset 160km 2 exploitation licence 30 year licence granted option for a further 30 years Resources and Reserves Gold Production Life of Mine 14.0Moz / 8.8Moz* 2010: 150,289oz 2011: 202,968oz 2012: 262,958oz 2013: 356,943oz 2014: 377,261oz 2015: 439,072ooz 2016 (forecast): 470,000oz ~20 years 20 year life of mine at target ,000oz p.a. target rate Cash Cost of Production 2011: US$556/oz ** 2012: US$669/oz 2013: US$663/oz 2014: US$729/oz 2015: US$713/oz 2016 (forecast): US$680/oz All in Sustaining Costs 2015: US$885/oz 2016 (forecast): US$900/oz *see previous slides for full disclosure **with fuel subsidy (cash costs quoted on the basis of the full international fuel price from 2012 onwards)

36 36 Sukari Concession Agreement: Law No. 222/94 CONCESSION AGREEMENT WITH THE EGYPTIAN GOVERNMENT - No taxes and duties for 15 years and option to extend for further 15 years - PGM solely funds Sukari - Full cost recovery prior to 50% profit sharing - Annual capital and exploration costs recovered 33% per annum over 3 years Title, exploitation and development rights to the Sukari Gold Mine are granted under the terms of the Concession Agreement promulgated as Law No. 222 of 1994, signed on 29 January The Concession Agreement was issued by way of Presidential Decree after the approval of the People s Assembly in accordance with the Egyptian Constitution and Law No. 61 of The Concession Agreement was issued in accordance with the Egyptian Mines and Quarries Law No. 86 of 1956 which allows for the Ministry to grant the right to parties to explore and mine for minerals in Egypt. CENTAMIN PLC 100% - 3% NSR royalty rate - The net operating revenue surplus, after royalty and cost recovery ( Profit Share ) is split 50:50 between PGM and EMRA - *an additional 10% of proceeds is paid to PGM in the first 2 years of Profit Share, reducing to 5% in the following 2 years 50% net operating surplus* ( Profit Share ) PHARAOH GOLD MINES 50% SUKARI GOLD MINES EMRA 50% 50% net operating surplus ( Profit Share ) 3% royalty to ARE

37 37 Egypt: Reality vs. Risk Perception Government Parliament elected in 2015 Economy stabilising with continued government policy roll out expected in 2016 Concession Agreement Supported Appeal in Process Fuel Subsidy Centamin s concession agreement enshrined by National Assembly as Law 222, effective 1994 Ministry of Petroleum and EMRA have publicly stated their full support for Concession Agreement Centamin, EMRA and Minister of Petroleum have all filed appeals against 30 October 2012 ruling Supreme Administrative Court suspended the ruling on 20 March 2013 Full international diesel price paid since Jan 2012 Additional cost treated as a prepayment until cabinet decision on subsidies for wider economy Fuel subsidy removal and payment claim in court on the basis of the copy of the exploitation lease executed by the Minister of Petroleum presented to the Supreme Administrative Court, the annulment of such lease by the Administrative Court was likely to be cancelled upon the issuance of a judgment on the merits of the case. SAC statement following the unanimous decision on 20 March 2013 to suspend the original AC ruling

38 38 Egypt: A Committed Investor in Challenging Times c.us$2.3bn expenditure to date at Sukari (capital plus operating) of which approximately US$1.2 billion has been in Egypt 270 Egyptian companies supply goods/services to Sukari US$101 million in payments to government to date* 9,000 Centamin continued to invest in Sukari expansion, as Egypt FDI fell significantly 300 $72m royalty $29m prepayment against future Profit Share Profit Share is expected to commence in 2017 will build to over US$100 million per annum Egypt FDI (US$ million) 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Total pre production investment = US$470m Centamin Investment (US$ million) *as at 31 Dec 2015 Centamin Investment in Egypt Net FDI in Egypt* *Source: Central Bank of Egypt

39 39 Sukari: Regional Exploration Sukari 160km2 licence contains multiple prospects identified by geochemical anomalies Potential for both high grade (structurally controlled) and lower grade (intrusive related) satellite deposits Limited drilling beyond Sukari Hill 26g/t Au 2.2g/t Au 5g/t Au 4.1g/t Au 55g/t Au 20.8g/t Au 29.2g/t Au 13.5g/t Au

40 40 Burkina Faso: Country Overview Favourable government policies French based legal system: Mining Act based on WA legislation Government pro active for mining 10% Government Free Carry 5% Gold Royalty 17.5% Corporate Tax Economy strengthening, with the gold industry a key driver GDP growth 7% in Gold accounted for 75% of all exports in new gold mines since Africa s 4th largest gold producer 3 Over 50 million ounces gold resources discovered 3 1 CIA World Fact Book; 2 International Trade Centre Trade Map; Mining Journal Burkina Supplement

41 41 Côte D Ivoire: Country Overview Favourable government policies French based legal system Exploration permits valid for 12 years Tax and customs stability agreements for mining permits 10% Government Free Carry Participating Interest limited to 15% Royalties indexed to gold s market price* Government stabilising, with a focus on economic development Well developed infrastructure Cheap hydroelectric grid power A deep water shipping port in Abidjan Relatively unexplored c.35% of the region s Birimian Greenstone, but only c.5% of its gold resources GDP growth 9% in * the new mining code is yet to specify how royalty rates are determined and exact tax rates 1 CIA World Fact Book