Kinross Gold Corporation · TSX:K
Kinross Gold — Q2 2008 Earnings Presentation
17 slides from Kinross Gold's earnings presentation, Aug 13, 2008
Slide 1: Second Quarter Results Webcast
Second Quarter Results Webcast August 13, 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: Highlights
Highlights Q2’08 production increased 22% from Q1’08 Kupol K l produces d 51 51,487 487 A Au eq. oz. (Ki (Kinross’’ 75% share) h ) Commissioning begins at the Paracatu Expansion project Kettle River – Buckhorn on track for start-up in October Continued portfolio optimization through the sa
Slide 5: Bid for Aurelian Resources
Bid for Aurelian Resources(1) Kinross announces a friendly offer to acquire all outstanding shares of Aurelian Resources Inc Inc. Offer is unanimously endorsed by the Aurelian Board of Directors and Management 0.317 of a Kinross share + 0.1429 of a Kinross warrant offered ff d per Aurelian A l
Slide 6: Q2'08 Production & Costs
Q2’08 Production & Costs Gold equivalent ounces Cost of sales (US$/oz.)(2) Produced Sold 406,032 356,864 $472 331,784 330,633 $466 $455* Q1'08 Q2'08 Q1'08 Q2'08 (i) Before an incremental fair value inventory charge relating to the La Coipa acquisition. (2) Please refer to final slide endnote #2. 10
Slide 7: Q2'08 Financial Results
Q2’08 Financial Results Adjusted net earnings(3) $55.8 mm ($0.09/sh) Minus: Foreign currency translation losses on $17.1 mm future income and mining tax liabilities Unrealized non non-hedge hedge derivative losses $12 7 mm $12.7 Reported net earnings $26.0 mm ($0.04/sh) Cash flow from operating
Slide 8: 2008 Outlook
2008 Outlook(4) Revised guidance Previous 2008e Revised 2008e Production 1.9 – 2.0 mm oz. Au eq 1.8 – 1.9 mm oz. Au eq Cost of Sales ($/oz) $385 – $395 /oz $425 - $445/oz Key sensitivities Sensitivity Approximate impact on cost of sales 10% change in foreign exchange $13/Au eq oz. $10 change in pric
Slide 9: Kupol
Kupol(5) Started up on time in May 2008, commissioning g in p progress g First gold pour announced May 30, 2008 Produced 68,649 gold eq. oz. in June (100% basis) Mill ramp up has proceeded well High grade stockpiles averaging (in June): – 36 grams per tonne gold – 427 grams per tonne silve
Slide 10: Paracatu Expansion Project
Paracatu Expansion Project(6) Commissioning began on schedule in July First production expected in late September Full production expected by year-end Expansion is expected to increase 2008 gold production to ~245k – 265k oz at ~$455-475 per oz(6) Costs will decline as it reaches full prod
Slide 11: Kettle River – Buckhorn
Kettle River – Buckhorn(7) Construction of surface facilities substantially complete Mine access road ~90% complete Mine development work continues – Focus divided between upper and main portals Start-up is on schedule (October 2008) ‘08e production: 20k – 30 k oz.(7) ‘08e 08e cost of sa
Slide 12: Fort Knox Expansion
Fort Knox Expansion(8) Approximately 57% complete Construction C t ti on schedule h d l and d on b budget d t Start-up of leaching operations scheduled for mid 2009 mid-2009 Expansion extends Fort Knox mine life to 2018 (from 2013)(8) Increases production to avg. 370k oz. for 5 yrs. from 2
Slide 13: Q2 Operating results
Q2 Operating results Mine Ounces Produced Ounces Sold Cost of Sales Cost of Sales (Au eq) (Au eq) (US$ mm) (US$/oz) Fort Knox 85,609 75,720 $34.4 $454 Round Mountain 65,570 67,538 $30.9 $458 Paracatu 47,338 52,150 $ $23.8 $ $456 La Coipa 60,376 47,941 $19.2 $400 Crixas 22 310 22,310 21 569 21,569 $6
Slide 14: 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 15: Endnotes
Endnotes (1) For full transaction terms and conditions, please refer to our offer and take-over bid circular filed in respect of Aurelian Resources Inc., available on our website at www.kinross.com (2) Cost of sales per ounce is defined as cost of sales per the financial statements divided by the nu
Slide 16: Cautionary Note to Shareholders in the United States
Cautionary Note to Shareholders in the United States Information in this presentation, including the documents incorporated by reference herein, has been prepared in accordance with the requirements of securities laws in effect in Canada, which differ from the requirements of United States securitie
Slide 17: 25
25