Kinross Gold Corporation · TSX:K
Kinross Gold — Genuity Capital Markets Marketing Presentation (September 2006)
44 slides from Kinross Gold's conference presentation, Sep 13, 2006
Slide 1: Kinross Gold Corporation Corporate Presentation
Kinross Gold Corporation Corporate Presentation September 2006 1
Slide 2: Forward-looking statements
Certain statements set forth in this presentation constitute “forward looking statements" within the meaning of the United States Private Securities Litigation statements Reform Act of 1995. Such statements involve risks, uncertainties and other factors that may cause the actual results, performance
Slide 3: Focus Areas
Focus Areas Fort Knox (100%) Musselwhite (32%) Porcupine JV (49%) Kettle River (100%) Round Mountain (50%) Ci Crixas (50%) La Coipa (50%) Paracatu (100%) Refugio (50%) Producing Assets Exploration Targets 3
Slide 4: Kinross: A Major Gold Producer
Kinross: A Major Gold Producer 2006 estimated: • G Gold ld equivalent i l production d i – 1.44 1 44 million illi ounces • Cost of sales1 – est. $305 – $315 per ounce ~3,700 3 700 emplo employees ees in 5 countries co ntries Straight Straight-forward forward balance sheet • Simple debt structu
Slide 5: Prospective & Stable Geography
Prospective & Stable Geography Geographical breakdown of 2005 reserves 9% 64% 17% 10% US C Canada d B il Brazil Chil Chile 24.7 million ounces of gold at Dec. 31, 2005, an increase of 27% over 2004 Reserves located in politically stable countries 5
Slide 6: Secure Production Base
Secure Production Base Geographical breakdown of 2005 production 16% 17% 48% 10% 9% US Canada Brazil Chile Other 64% of production is North American based 60% of costs are U.S. dollar-based Large U.S. base offers security, lowers foreign exchange risk 6
Slide 7: Four-Point Plan
Four-Point Plan Objective: Enhance net asset value and cash flow per share GROWTH FROM BUILDING BLOCKS BEST PEOPLE NEW OPPORTUNITIES THE CORE FOR THE FUTURE Regionally streamlined Strengthened management Crown Resources Paracatu expansion approach t team &BBoard d closed Round Mountain Round Mountai
Slide 8: Core Fundamentals
Core Fundamentals Strong operating fundamentals Excellence in operations and corporate management New merger accounting methodology Clear Cl four-point f i t strategic t t i plan l Dramatic increase in g gold reserves Growth profile in production and cash flow through 2009 8
Slide 9: Continued Reserve Growth
Continued Reserve Growth Gold Reserves and Resources 35,000 Measured and Indicated 30,000 Proven and Probable 25,000 gold 00 ounces g 20,000 15,000 '00 10,000 5,000 - 2001 2002 2003 2004 2005 $300/$325 $300/$325 $325/$350 $350/$400 $400/$450 Reserves at Dec. 31, 2004 19.4 Less: Assets sold/reclassif
Slide 10: Second Quarter 2006
Second Quarter 2006 Revenue of $252.3 million; net earnings of $65.6 million ($0.19 p ($ per share)) Gold equivalent production was 385,514 ounces (on-target for ’06 est. 1.44 mm g gold equivalent q ounces)) Cost of sales1 of $311 per ounce on 403,507 gold equivalent ounces sold Cash flow fr
Slide 11: Refining Portfolio
Refining Portfolio Non-core assets sold: George/Goose Lake 9 E-Crete 9 Norseman 9 Lupin (in process) 9 Aquarius 9 Blanket 9 Katanga 9 E it positions Equity iti 9 11 11
Slide 12: Cash Margin – Senior Producers
Cash Margin – Senior Producers 250 Barrick a c 200 New mont US$/ounce Kinross 150 100 50 2000 2001 2002 2003 2004 2005 Cash Margin g Per Ounce Produced 2000 2001 2002 2003 2004 2005 CAGR Barrick 191 164 165 191 179 214 2% Newmont 111 87 124 163 181 182 10% Kinross 96 103 105 136 158 170 12% Source:
Slide 13: Paracatu, Brazil (100%)
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Slide 14: Paracatu, Brazil
Paracatu, Brazil Ownership: 100% Kinross Reserves: 15,210,000 gold ozs (as at Dec. 31, 2005) Highlights: $470 million expansion project approved, expansion will contribute 2008 and beyond Q2 2006 Operating Results Production: 44,465 gold eq. ozs Cost of sales: $ 335 / oz YTD 2006 Operating Results P
Slide 15: Paracatu – A World-class Mine
Paracatu – A World-class Mine 35 s) ons of ounces 30 25 eserves (millio 20 15 Re 10 5 0 Cortez Veladero Goldstrike Laronde gunas Norte Paracatu Yanacocha Lag Largest Operating Mines in North and South America 15
Slide 16: Paracatu Expansion Project
Paracatu Expansion Project $470 million expansion project is expected to be completed in 2008 LOM 2009 - 2013 2009 - 2018 2009 - 2036 Average throughput (mtpa) 58.4 51.2 40.9 A Average grade d ((g/t) /t) 0 37 0.37 0 37 0.37 0 40 0.40 Average recovery (%) 80.3 80.0 79.6 Average annual gold producti
Slide 17: Brasilia Belt- Aeromagnetic Image
Brasilia Belt- Aeromagnetic Image Paracatu Formation Vazante Formation Thrust Front 8 MAIN MAGNETIC TRENDS SELECTED NS mag ON THE BRASILIA anomaly Pit BELT FOR FOLLOW outline 2005 Drill UP Program SW-NE Mag Anomaly reflects Ore Boundary mineralization i li i SPI image Depth of mag source Total Magne
Slide 18: Round Mountain, USA (50%, operator)
Round Mountain, USA (50%, operator) 18
Slide 19: Round Mountain, USA
Round Mountain, USA Ownership: 50% (Kinross operated) Reserves: 2,338,000 gold ozs (as at Dec. 31, 2005) Highlights: - Pre-stripping commenced for a pit layback, ore from layback expected to contribute in late 2006 - Exploration drilling to begin on underground in 2H/06 Q2 2006 Operating Results Pro
Slide 20: District/Exploration Map
District/Exploration Map Nevada Key 2006 Exploration Targets N Round Reno Mountain Rd Mtn Underground g Drifting and drilling Las Moores Creek Caldera Vegas Rd Mtn – Gold Hill Trend Jefferson Geophysical survey and drilling Caldera GOLD HILL SVCO Area of Mutual Interest Gold Hill Jefferson ROU
Slide 21: Refugio, Chile (50%, operator)
Refugio, Chile (50%, operator) 21
Slide 22: Refugio, Chile
Refugio, Chile Ownership: 50% (Kinross operated) Reserves: 2,158,000 gold ozs (as at Dec. 31, 2005) Highlights: Restart is complete, producing as planned Drilling commenced on nearby Pancho deposit Q2 2006 Operating Results Production: 26,711 gold eq. ozs Cost of sales: $ 379 / oz YTD 2006 Operating
Slide 23: Exploration Map
Exploration Map Compania Minera Maricunga Claims 130 claims for 650 hectares Pancho Deposit Verde Volcanic and REFUGIO Intrusive Complex Refugio Volcanics (undivided) Pancho Diorite & Volcanics Laguna Tuff Mesozoic Rocks Leach Pad Process Chile Plant Verde West East & Mines Buffer Zone 0 2km Grade (
Slide 24: Capital Projects Drive New Growth
Capital Projects Drive New Growth Contributes First Full Year 1. Puren Q3 2006 2007 2. Round Mtn. Layback Q4 2006 2007 3. Buckhorn Q2 2007 2008 4 Paracatu Exp. 4. Exp Q2 2008 2009 24
Slide 25: Kinross Driving Forward
Kinross Driving Forward Production rising from approximately 1.44 million ounces to 1.8-1.9 million ounces in 2009 1.9 Expected range of on production d ti nt productio 18 1.8 of ounces) 1.7 1.6 old equivalen (millions o 1.5 1.4 13 1.3 Go 1.2 2006E 2007E 2008E 2009E 2006 - 2009 Forecast 25
Slide 26: Four Exploration Focus Regions
Four Exploration Focus Regions Alaska, B.C., Nevada, Mexico Far NE Russia Chile Brazil Producing Assets Exploration Targets 26
Slide 27: Positioned For Success
Positioned For Success Fourth largest primary gold producer in North America, eighth largest in the world Strong production and growth profile through 2009 Eight mines globally globally, focused in North and South America “Cleared decks” for the future Exploration expertise: track record o
Slide 28: Kinross Outperforms
Kinross Outperforms 2.50 2.00 ormance +78% elative Perfo 1.50 +31% + 8% 1 00 1.00 Re 0.50 Oct-05 5 Nov-05 5 Dec-05 5 Jan-06 6 Feb-06 6 Mar-06 6 May-06 6 Jun-06 6 Jul-06 6 Sep-05 5 Apr-06 6 Aug-06 6 Major North American Gold Producers (Average) Kinross Gold Price Major North American Gold Producers i
Slide 29: Shares outstanding and market cap
Shares outstanding: 362 million Market cap.: US$4.6 billion (at September 11, 2006) KGC: NYSE (Common shares) K: TSX (Common shares) K.U: TSX (US dollar trading symbol) K.WT: TSX (Warrants expiring 05/12/07) Kinross Gold Corporation 40 King Street West, 52nd Floor, Scotia Plaza, Toronto, ON M5H 3Y2
Slide 30: Appendix
Appendix 30
Slide 31: 2005 Production Statistics
2005 Production Statistics Reserves Cost of Ow nership @ 12/31/05 Production sales/oz (millio ns) Fort Knox 100% 1,953 329,300 $ 275 R Round dMMountain t i 50% 2 338 2,338 373 900 373,900 $ 255 La Coipa 50% 397 126,000 $ 346 Crixas 50% 379 96,200 $ 151 Paracatu 100% 15,210 181,000 $ 281 Musselw hite
Slide 32: Musselwhite, Canada
Musselwhite, Canada (32%, Goldcorp operated) 32 32
Slide 33: Musselwhite, Canada
Musselwhite, Canada Ownership: 32% Kinross Reserves: 639 000 gold ozs (as 639,000 ( att Dec. D 31, 31 2005) Q2 2006 Operating Results Production: 17,631 gold eq. ozs Cost of sales: $ 367 / oz YTD 2006 Operating Results Production: 33,799 gold eq. ozs Cost of sales: $ 421 / oz 33
Slide 34: Fort Knox, USA (100%)
Fort Knox, USA (100%) 34 34
Slide 35: Fort Knox, USA
Fort Knox, USA Ownership: 100% Kinross Reserves: 1 953 000 gold ozs (as 1,953,000 ( att Dec. D 31, 31 2005) Highlights: Heap leach scenario being evaluated Q2 2006 Operating Results Production: 99,437 gold eq. ozs Cost of sales: $ 267 / oz YTD 2006 Operating Results Production: 179,114 gold eq. ozs
Slide 36: Porcupine JV, Canada
Porcupine JV, Canada (49%, Goldcorp operated) 36 36
Slide 37: Porcupine JV, Canada
Porcupine JV, Canada Ownership: 49% Kinross Reserves: 1,653,000 gold ozs (as at Dec. 31, 2005) Highlights: Pamour pit now contributing to production Q2 2006 Operating Results Production: 39,713 gold eq. ozs Cost of sales: $ 379 / oz YTD 2006 Operating Results Production: 69,845 gold eq. ozs Cost of
Slide 38: La Coipa, Chile
La Coipa, Chile (50%, Goldcorp operated) 38 38
Slide 39: La Coipa, Chile
La Coipa, Chile Ownership: 50% Kinross Reserves: 397,000 397 000 gold ozs (as ( att Dec. D 31 31, 2005) 24,389,000 silver ozs (as at Dec. 31, 2005) Highlights: Puren deposit pre-strip underway for contribution in Q3/06 Q2 2006 Operating Results Production: 32,519 gold eq. ozs Cost of sales: $ 324 /
Slide 40: Crixas, Brazil
Crixas, Brazil (50%, AngloGold operated) 40 40
Slide 41: Crixas, Brazil
Crixas, Brazil Ownership: 50% Kinross Reserves: 379 000 gold ozs (as 379,000 ( att Dec. D 31 31, 2005) Q2 2006 Operating Results Production: 24,424 gold ozs Cost of sales: $ 202 / oz YTD 2006 Operating Results Production: 48,545 gold ozs Cost of sales: $ 195 / oz 41
Slide 42: Kettle River, USA (100%)
Kettle River, USA (100%) 42 42
Slide 43: Kettle River, USA
Kettle River, USA Ownership: 100% Kinross Highlights: Buckhorn Mountain and Crown transaction: - Acquisition completed September 2006 - Permitting is ongoing - Construction expected to begin in late 2006, production expected late 2007 2005 Operating Results Production: 68 100 gold ozs 68,100 Cost of
Slide 44: Shares outstanding and contact details
Shares outstanding: 347.7 million Market cap.: US$4.6 billion (at September 11, 2006) KGC: NYSE (Common shares) K: TSX (Common shares) K.U: TSX (US dollar trading symbol) K.WT: TSX (Warrants expiring 05/12/07) Kinross Gold Corporation 40 King Street West, 52nd Floor, Scotia Plaza, Toronto, ON M5H 3Y
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