Kinross Gold Corporation · TSX:K
Kinross Gold — CIBC Capital Markets Whistler Institutional Investor Conference 2012
13 slides from Kinross Gold's conference presentation, Jan 18, 2012
Slide 1: Delivering Disciplined Growth
DELIVERING DISCIPLINED GROWTH CIBC CAPITAL MARKETS WHISTLER INSTITUTIONAL INVESTOR CONFERENCE January 18, 2012 1
Slide 2: Cautionary Statement on Forward-Looking Information
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION All statements, other than statements of historical fact, contained or incorporated by reference in or made in giving this presentation, including any information as to the future performance of Kinross, constitute “forward looking statements” with
Slide 3: Why Kinross?
WHY KINROSS? 1. Pure gold, high-growth senior producer 2. Robust operating cash flow from 10 operating mines today 3. Disciplined approach to building unique suite of world-class gold assets 3
Slide 4: Focused in the World's Best Districts
FOCUSED IN THE WORLD’S BEST DISTRICTS Dvoinoye Kupol Fort Knox Kettle River-Buckhorn Round Mountain Tasiast Chirano Fruta del Norte Crixas Paracatu La Coipa Lobo-Marte Maricunga Cerro Casale 10 operating mines 5 development projects 4
Slide 5: Kinross Preliminary 2011 Results
KINROSS PRELIMINARY 2011 RESULTS • Within previously stated guidance range Gold Equivalent Production(1) Production Cost of Sales(2) 2.6 ~$600 2.3 $508 Ounces (millions) $/oz. 2010 2011 2010 2011 (1) Refer to endnote #1. 5 (2) Refer to endnote #2.
Slide 6: 2012 Outlook
2012 OUTLOOK(3) PRODUCTION & COSTS Production(1) % of Total Production cost of Sales(2) Region (000 ounces ) Production ($/oz) South America 930 – 1,030 36% $780 – $850 North America 620 - 660 24% $620 – $660 West Africa 500 – 560 20% $740 – $800 (attributable) Russia 525 – 565 20% $470 – $495 Gold
Slide 7: Delivering Expanding Margins
DELIVERING EXPANDING MARGINS 2005 – Q3 2011: $1,012 • Average realized gold price: +270% • Kinross’ attributable margin(4): +495% $873 $784 +495% $683 Attributable margin (US$/oz.) $530 $436 $329 $279 $170 2005 2006 2007 2008 2009 2010 Q1 Q2 Q3 2011 (4) Refer to endnote #4. 7
Slide 8: Financial Strength & Discipline
FINANCIAL STRENGTH & DISCIPLINE • Received investment grade credit ratings from all three major rating agencies • $1.2 bn line of credit • Approximately $1.6 bn of adjusted cash flow(6) over last twelve months. MARKET CAP CASH AND CASH EQUIVALENTS ADJUSTED CASH FLOW(2) (US$ bn) (US$ mm) (US$ mm) $1,
Slide 9: Staking Districts, Adding Resources, Improving Grade
STAKING DISTRICTS, ADDING RESOURCES, IMPROVING GRADE GOLD RESOURCES(7) 2P GOLD RESERVE EXPLORATION SPEND (mm oz.) GRADE(7) ($ mm) Proven & Probable Gold Reserves (g/t) Measured & Indicated Gold Resources Inferred Gold Resources +221% +41% 0.72 +12x $220 20.1 0.51 24.7 2.9 63.3 6.1 $17 24.7 2005 Now
Slide 10: Capital & Project Optimization
CAPITAL & PROJECT OPTIMIZATION OBJECTIVE: To advance Kinross’ major growth development projects while: Generating enhanced returns on capital Maximizing shareholder value Maintaining strong balance sheet • Capital & project optimization rationale: 1. Volatile market environment with shareholde
Slide 11: Why Kinross?
WHY KINROSS? 1. Pure gold, high-growth senior producer 2. Robust operating cash flow from 10 operating mines today 3. Disciplined approach to building unique suite of world-class gold assets 11
Slide 12: Endnotes
ENDNOTES 1) Unless otherwise noted, gold equivalent production, gold equivalent ounces sold and production cost of sales figures in this presentation are based on Kinross’ ownership interest in Kupol (75% to April 27, 2011 and 100% thereafter) and 90% interest in Chirano. 2) Production cost of sales
Slide 13: Kinross Gold Corporation
KINROSS GOLD CORPORATION 25 YORK STREET, 17TH FLOOR TORONTO, ON M5J 2V5 WWW.KINROSS.COM 13
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