Kinross Gold Corporation · TSX:K
Kinross Gold — Q2 2015 Earnings Presentation
21 slides from Kinross Gold's earnings presentation, Jul 30, 2015
Slide 1: Q2 2015 Results Conference Call & Webcast
July 30 KINROSS GOLD CORPORATION 2015 Q2 2015 Results Conference Call & Webcast 11 www.kinross.com
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 and responses to questions, including but not limited to any information as to the future performance of Kinross
Slide 3: Second Quarter Results Highlights
SECOND QUARTER RESULTS HIGHLIGHTS 33 www.kinross.com J. PAUL ROLLINSON, CEO
Slide 4: Second Quarter Highlights: Delivering Strong Performance
SECOND QUARTER HIGHLIGHTS DELIVERING STRONG PERFORMANCE 12 consecutive quarters of meeting our operational targets • Strong performance from operations delivered solid Q2 2015 results • On track to meet 2015 production, cost of sales and all-in sustaining cost guidance Tracking the high-end of pro
Slide 5: Q2 Operating Highlights
FORT KNOX, ROUND MOUNTAIN, KUPOL-DVOINOYE, ALASKA NEVADA RUSSIA • Increased production & • Best production and cost • Continues to deliver strong reduced costs performance since Q3 2012 operating performance Q2 OPERATING HIGHLIGHTS 55 www.kinross.com OPERATIONAL EXCELLENCE
Slide 6: Strong Balance Sheet
STRONG BALANCE SHEET FINANCIAL STRENGTH & FLEXIBILITY CASH AND CASH EQUIVALENTS* • Increased cash balance by ~$45 MILLION since year-end $1,070 2014, despite lower gold prices $1,025 • Kinross is WELL-POSITIONED to weather the current volatility in the gold price $ millions *includes restricted cash
Slide 7: Focus on Managing Costs
OPERATIONAL EXCELLENCE FOCUS ON MANAGING COSTS LEVERS FOR FURTHER COST REDUCTION PRODUCTION COST OF SALES ($/oz.) OPTIMIZING OUR SUPPLY CHAIN • Continued to take advantage of our global scale and $735 market environment to reduce unit costs $717 • Negotiated favourable contract terms with strategic
Slide 8: Tasiast Optimization
MAURITANIA TASIAST OPTIMIZATION Exploring alternatives to further optimize the operation and reduce costs MILL OPTIMIZATION • Exploring opportunities to enhance the comminution circuit to improve throughput • Concepts under analysis include installing additional grinding capacity to increase through
Slide 9: Organic Production Initiatives
ATTRACTIVE OPPORTUNITIES ORGANIC PRODUCTION INITIATIVES Quality brownfields projects with relatively low execution risk PARACATU TAILINGS CHIRANO MINE LIFE POTENTIAL LA COIPA REPROCESSING EXTENSION RESTART 99 www.kinross.com
Slide 10: Kinross Value Proposition
KINROSS VALUE PROPOSITION EXCELLENT OPERATIONAL TRACK RECORD • 12 consecutive quarters of strong results STRONG BALANCE SHEET • $2.6B in liquidity and conservative net debt of ~$960M • Only significant debt maturities prior to 2019 is $250M of senior notes due in 2016 ATTRACTIVE FUTURE GROWTH OPPORT
Slide 11: Financial Highlights
FINANCIAL HIGHLIGHTS 1111 www.kinross.com TONY GIARDINI, CFO
Slide 12: Solid Financial Position
STRONG BALANCE SHEET SOLID FINANCIAL POSITION Maintaining peer-leading balance sheet strength remains a priority objective STRONG LIQUIDITY POSITION MAINTAINING FINANCIAL FLEXIBILITY • Further strengthened the balance sheet in H1 2015: Ended Q2 2015 with ~$1.1B in cash, a $45M increase from year-e
Slide 13: Second Quarter 2015 Financial Results
SECOND QUARTER 2015 FINANCIAL RESULTS Q2 2014 Q2 2015 Attributable gold equivalent ounces (oz.)(2) Produced 679,831 660,898 Sold 703,234 626,246 Average realized gold price ($/oz.) $1,285 $1,194 Production cost of sales ($/oz.)(3) Gold equivalent $742 $724 By-product $725 $712 All-in sustaining cost
Slide 14: Operating Highlights
OPERATING HIGHLIGHTS 1414 www.kinross.com WARWICK MORLEY-JEPSON, COO
Slide 15: Delivering Strong Operating Results
OPERATIONAL EXCELLENCE DELIVERING STRONG OPERATING RESULTS RUSSIA AMERICAS Dvoinoye Kupol Fort Knox Kettle River-Buckhorn Round Mountain 2015E GOLD EQUIVALENT Tasiast PRODUCTION(1) Chirano 29% WEST AFRICA 2.4-2.6M Paracatu ounces 54% La Coipa Maricunga 17% GLOBAL PORTFOLIO Operating mine Americas We
Slide 16: Americas
OPERATIONAL EXCELLENCE AMERICAS • FORT KNOX production higher compared with Q1 2015 due to higher mill grade and seasonal benefit of warmer weather on heap leach performance • ROUND MOUNTAIN benefiting from continuous improvement initiatives aimed at improving heap leach operations • PARACATU produc
Slide 17: Russia
OPERATIONAL EXCELLENCE RUSSIA • Second quarter production at the combined operation increased compared with Q1 2015 • Produced ~30k Au eq. oz. more than sold during the quarter due to timing of sales • Production cost of sales decreased year-over-year to $490 per Au eq. oz. • Increased proportion of
Slide 18: West Africa
OPERATIONAL EXCELLENCE WEST AFRICA • TASIAST production increased compared with Q1 2015 as a result of higher mill grades and improved mill recoveries • CHIRANO continues to perform well, with production in line with Q1 2015. Year-on-year, cost of sales increased due to: • Higher underground mobile
Slide 19: The Way Forward: Principles for Building Value
THE WAY FORWARD PRINCIPLES FOR BUILDING VALUE • Focus on operational excellence • Quality over quantity • Disciplined capital allocation • Maintaining a strong balance sheet 1919 www.kinross.com
Slide 20: Endnotes
ENDNOTES 1) For more information regarding Kinross’ production, cost and capital expenditures outlook for 2015, please refer to the news release dated February 10, 2015, available on our website at www.kinross.com. Kinross’ outlook for 2015 represents forward-looking information and users are cautio
Slide 21: Kinross Gold Corporation
KINROSS GOLD CORPORATION 25 York Street, 17th Floor │Toronto, ON │ M5J 2V5 www.kinross.com 2121 www.kinross.com