Centamin - Q4 2022 Investor Presentation Summary

• 2022 - 2023 overview - Despite global inflationary pressures and industry challenges, the company managed to control both cash costs and sustaining costs.
• On a project basis, there were numerous strategic initiatives launched throughout the year, with Q4 having notable highlights.
• Exploration efforts focused on areas close to Sukari and to the north.
• The company's team, from operations to exploration, has been refined over the past few years, establishing a strong foundation.
• Assets are transferred to the state at the end of their life cycle.
• Cost savings were a priority even before the rise of global inflation, with strategies in place to mitigate currency and supply chain challenges.

About Centamin Plc

Centamin is an established gold producer operating the Sukari Gold Mine in Egypt, the country's largest and first modern gold mine. Sukari has produced over 5 million ounces of gold since 2009 and hosts 6.0Moz in gold Mineral Reserves. Centamin has a strong portfolio of exploration assets in Egypt and Côte d'Ivoire that provide future growth potential, including the Doropo project.

Centamin is committed to responsible mining, with initiatives in 2022 including achieving new safety records, commissioning Egypt's largest hybrid solar farm to power Sukari, employing a 95% Egyptian workforce, and sourcing over 60% of supplies locally. The company recognizes its responsibility to stakeholders through financial and operational performance coupled with good corporate citizenship. Centamin is dual-listed on the London and Toronto Stock Exchanges.

Shareholder Update

UK-based gold miner Centamin Plc held a shareholder update call on January 25th, 2023 to provide investors with an overview of the company's performance in 2022 and outlook for 2023. Centamin operates the Sukari Gold Mine in Egypt, one of the largest producing gold mines in Africa, and is advancing the Doropo gold project in Côte d'Ivoire. With a solid year of operational delivery at Sukari and continued progress on growth projects, Centamin looks positioned to continue strong free cash flow generation and disciplined growth.

Key Takeaways for Investors

2022 Performance Validates Turnaround Efforts

• Met full-year production and cost guidance at Sukari despite inflationary pressures, delivering 441,000 ounces at $802/oz all-in sustaining costs (AISC). This steadfast guidance proves management's strong operational oversight.
• Progressed key development projects, including commissioning the 36MW solar plant and transitioning underground mining from contractor to owner-operator model, boosting mining rates.
• Grew Sukari's open pit and underground reserves by nearly 2 million ounces over the past two years through focused exploration, showing the asset's resource potential.
• Announced updated resource estimate for Doropo in Côte d'Ivoire, increasing resource grade by 20%. Ongoing optimisation studies aim to further improve project economics.
• Secured $150 million revolving credit facility, providing financial flexibility to fund continued investments and potential M&A activity. The banks' confidence validates Sentiment's improved operating performance and outlook.

More Production Growth Ahead at Flagship Sukari Mine

• Guided to 450,000-480,000 ounces of gold production at Sukari in 2023 on higher underground mining rates. This shows the potential to move back towards the targeted 500,000 ounce per year production level in the coming years.
• Progressing multiple opportunities to boost productivity and lower costs, including expanding the underground, adding a gravity circuit, connecting to grid power, and expanding the dump leach operation.
• Received government approval for women to work at Sukari, opening up new talent pools. The introduction of women in professional and technical roles has gone smoothly so far.

Advancing Exploration and Project Pipeline

• Commenced fieldwork on the extensive Eastern Desert tenements in Egypt, leveraging proximity to Sukari infrastructure and geological knowledge. The aim is to delineate new targets and begin drilling later this year.
• At the Doropo project in Côte d'Ivoire, remain on track to complete pre-feasibility study in 1H 2023 and definitive feasibility study in 1H 2024, aligning with the current permitting schedule.
• While focused on organic growth initiatives, Centamin will remain opportunistic in evaluating potential M&A that fits its strategic focus areas and leverages its technical expertise. The recent debt facility provides the financial capacity to act if compelling assets emerge.

Continued Focus on ESG and Stakeholder Returns

• ESG priorities are engrained in Sentiment's culture and central to its license to operate and access to capital. Ongoing work involves setting baselines and science-based targets for continual improvement.
• The recent sustainability-linked revolving credit facility provides an incentive mechanism to meet defined ESG targets and reduce borrowing costs.
• Maintained a total annual dividend of 5 cents per share in 2022 despite inflationary pressures. Committed to balancing ongoing investment with shareholder returns.

Can Centamin Be an Attractive Gold Investment?

Operator with Track Record of Delivery

• New management has restored operational consistency at Sukari, delivering guidance and identifying opportunities to enhance value.

World-Class Asset with Exploration Upside

• Sukari is a rare tier-one gold asset with over 15 million ounces produced to date and multi-decade mine life remaining. District-scale exploration potential could uncover additional resources.

Disciplined Growth Pipeline

• Management is advancing organic growth initiatives with a focus on capital discipline and maximising risk-adjusted returns. Exploration provides additional upside.

Strong Cash Flow and Balance Sheet

• Sukari delivers robust operating cash flows even at lower gold prices to support growth projects and shareholder returns. The recent debt facility further boosts financial flexibility.

Centamin appears to be turning a corner under refreshed leadership and is delivering on its operational targets. With Sukari as a platform for growth and a stronger balance sheet, the company looks positioned to start driving value creation for shareholders through production expansion, resource additions, and disciplined capital allocation.

Deeds, not words

Whilst a healthy start and a confident presentation, I should emphasise that investors should remain cautious until Sentiment management demonstrates sustained operational stability over a longer period of time. Here's a more balanced take:

While the recent update provides grounds for optimism, investors would be prudent to maintain a healthy scepticism until Centamin shows it can deliver consistent operational performance over an extended timeframe. The company has faced struggles with meeting production targets and managing costs in the past. Though the new management team led by CEO Martin Horgan seems to have made progress in addressing these issues, one year of hitting guidance does not definitively prove they have resolved the underlying problems. There is still execution risk in consistently hitting forecasts.

Additionally, guidance was met but at the lower end of the projected output range in 2022, and required what management called "prudent" cost assumptions. Investors should watch for Sentiment to demonstrate it can beat guidance over a series of quarters, rather than just meet baseline expectations. There are also risks around Centamin's major growth projects like the Sukari underground expansion that could face unexpected challenges during implementation. Until these capital programs are executed successfully, they represent potential downside risks if behind schedule or over budget.

While the healthier balance sheet and strong free cash flows from the Sukari mine provide some stability, Centamin lacks the margin for error of some industry majors. To truly change perceptions, consistently meeting or exceeding operational targets in 2023 and beyond will be critical.

While the future looks brighter for Centamin, investors may want to take a "trust but verify" approach, looking for an extended track record of outperformance and flawless execution before viewing the operational turnaround as fully secured. There is still work ahead for management to translate potential into consistent value creation.