Kinross Gold Corporation · TSX:K
Kinross Gold — Q3 2008 Earnings Presentation
17 slides from Kinross Gold's earnings presentation, Nov 5, 2008
Slide 1: Third Quarter Results Webcast
Third Quarter Results Webcast November 5, 2008 DELIVERING DISCIPLINED GROWTH 1
Slide 2: Cautionary statements
Cautionary statements All statements, other than statements of historical fact, contained or incorporated by reference in this presentation, including any information as to the future financial or operating performance of Kinross, constitute “forward-looking information” or “forward-looking statemen
Slide 3: Speakers
Speakers Tye W W. Burt Thomas M M. Boehlert Tim C. C Baker President & Chief Executive Officer EVP & Chief Financial Officer EVP & Chief Operating Officer 3
Slide 4: Third quarter 2008 highlights
Third quarter 2008 highlights(1) Production increased to 551,510 Au eq. oz. (+36% from Q2’08) Cost of sales(2) decreased to $406/oz. $ (-13% from Q2’08) Margins increased to $451/oz. (+3% from Q2’08) Production began at 3 development projects: – First full quarter of production from Kupol –
Slide 5: Kinross is strongly positioned
Kinross is strongly positioned Strong balance sheet: $720 mm of cash & short-term investments No base metals credits in financial results Majority of project capex spent – Production from new mines has started Focused strategy for creating shareholder value Track record of delivering resul
Slide 6: Q3'08 Production & costs
Q3’08 Production & costs Gold equivalent production Cost of sales(2) ((ounces)) ((US$/oz.)) +36% -13% (2) Refer to endnote #2. 6
Slide 7: Quarterly production & costs
Quarterly production & costs 7
Slide 8: Kinross margins expanding
Kinross margins expanding While average realized gold price is up 190%, Kinross’ cost of sales margin(2) has increased 326% $447 Up 326% Cost of Sales Margin $329 $279 $170 C $161 $135 $105 FY'02 FY'03 FY'04 FY'05 FY'06 FY'07 YTD'08 Source: Company reports (2) Refer to endnote #2. 8
Slide 9: Q3'08 Financial results
Q3’08 Financial results Reported net earnings $64.7 mm ($0.10/sh) Adjusting for non-operating items: Gains on asset sales - $18.4 mm Foreign exchange gains - $30.6 mm Non-hedge Non hedge derivative gains - $11.6 $11 6 mm Provision for litigation + $19.1 mm Equity impairment charge + $60.2
Slide 10: Kupol
Kupol(4) Operations began June 1, 2008 Mill throughput is currently at over 95% of 3,000 tpd capacity Q3 production: 206,495 oz. Au. eq Q3 cost of sales: $231/oz. Au. eq. (4) Refer to endnote #4. 10
Slide 11: Paracatu expansion project
Paracatu expansion project(5) First gold poured in October Commissioning of SAG mill, first ball mill, crushing and floatation circuits is complete Expect to be producing at 60% capacity by year-end; full capacity within Q1’09 With the th expansion, i P Paracatu t is i expected t d tto produ
Slide 12: Kettle River – Buckhorn
Kettle River – Buckhorn(6) Construction complete and mine is now fully operational Poured first gold oz. in October Kettle River mill currently processing ore stockpiles from former K2 mine through November ‘08e production: 20k – 30 k oz. ‘08e cost of sales: $365 - $385/oz (6) Refer to end
Slide 13: Fort Knox expansion
Fort Knox expansion(7) Approximately 78% complete Construction of heap leach pad concluded for the season; scheduled to restart in the spring. Construction on the carbon-in-column carbon in column plant continuing; expected to be completed by Q1’09 Start-up of leaching operations scheduled f
Slide 14: Q3'08 Operating results
Q3’08 Operating results Mine Ounces Produced Ounces Sold Cost of Sales Cost of Sales (Au eq) (Au eq) (US$ mm) (US$/oz) Fort Knox 100,969 101,729 $ $45.1 $ $443 Round Mountain 63,283 64,259 $28.6 $445 Paracatu 47 641 47,641 47 500 47,500 $19 8 $19.8 $417 La Coipa 48,879 56,877 $33.0 $580 Maricunga 53
Slide 15: Kinross key objectives for 2008
Kinross key objectives for 2008 9 Increased reserves organically 9 Strengthened balance sheet with convertible financing 9 Fort Knox optimization approved 9 Dividend declared 9 Produced first company-wide Corporate Responsibility Report 9 Enhanced exploration pipeline 9 Kupol start-up
Slide 16: Endnotes
Endnotes (1) Unless otherwise state, gold equivalent production, gold equivalent sales and cost of sales figures in this presentation are based on Kinross’ share of Kupol production (75%) (2) Cost of sales is defined as cost of sales as per the financial statements di divided ided b by the n number
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