Kinross Gold Corporation · TSX:K
Kinross Gold — Bank of America Global Metals, Mining & Steel Conference 2023
45 slides from Kinross Gold's conference presentation, May 16, 2023
Slide 1: Delivering Value.
Delivering Value. May 2023 KINROSS
Slide 2: Cautionary Statement on Forward-Looking Information
Kinross Gold Corporation May 2023 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
Slide 3: Table of Contents
Table of Contents Company Overview 4 Great Bear 17 Asset Highlights 27 33
Slide 4: Who is Kinross?
Kinross Gold Corporation May 2023 Who is Kinross? AMERICAS STRONG FOCUSED Portfolio PRODUCTION OUTLOOK 6 mines LARGE GOLD GEOGRAPHICALLY STABLE DYNAMIC COMMITTED TO PRODUCER, DIVERSIFIED PRODUCTION CAPITAL RESPONSIBLE HIGHLY LIQUID PRODUCER +2MOZ ALLOCATION MINING • ~US$6.5 billion • Americas accoun
Slide 5: High Quality Portfolio of Assets
Kinross Gold Corporation May 2023 High Quality Portfolio of Assets Two top tier(1) mines account for ~50% of production 2023E Gold Equivalent Production(2) Fort Knox, U.S.A. Manh Choh, U.S.A. 29% Great Bear, Canada ~2.1M Curlew, U.S.A Head Office, Canada ounces Bald Mountain, U.S.A. Round Mountain,
Slide 6: Kinross Investment Case
Kinross Investment Case Stable Production (GEO Moz, attributable, outlook) Value in the Americas(4) Americas-focused business, two Top Tier(1) assets Americas focus not reflected in valuation 1.6x Price / Net Asset Value % of NAV in Americas ~ 2.1 ~ 2.1(3) 1.4x 1.3x 1.2x 1.2x 1.2x 1.1x ~2.0(2) ~ 2.0
Slide 7: Market Undervaluing Kinross' Assets
Kinross Gold Corporation May 2023 Market Undervaluing Kinross’ Assets Substantial production not reflected in market valuation 2023 E Gold Production (1) Market Capitalization(2) 2.7 $17.5 2.3 2.3 $14.6 2.1 Average: 1.8Moz Average: $10.4B $11.5 Million AuEq oz $10.9 1.4 1.2 US$B $6.8 $6.5 0.7 $4.8 (
Slide 8: Attractive Valuation
Kinross Gold Corporation May 2023 Attractive Valuation Trading at compelling Cash Flow and EBITDA multiples P / 2023E Price to Operating Cash Flow Per Share(1) Enterprise Value / 2023E EBITDA(2) 11.4x 11.3x 11.1x 10.9x 9.5x 9.4x 8.8x Average: 8.6x 9.1x 8.9x 8.0x Average: 10.5x 7.7x 7.6x 7.6x 7.3x 6.
Slide 9: Balance Sheet & Financial Flexibility
First Quarter 2023 Balance Sheet & Financial Flexibility Liquidity Position (1) Financial Flexibility • Total liquidity(1) of ~$1.7 billion, including $471 million of cash and cash equivalents • Net debt to EBITDA improved as of quarter end, with expectation of further reduction by end of 2023 As at
Slide 10: Manageable Debt Profile
Kinross Gold Corporation May 2023 Manageable Debt Profile Senior notes are rated investment grade by all three rating agencies Debt Schedule Debt Ratings Agency Rating S&P BBB- (Stable) $1,000 Moody’s Baa3 (Stable) $500 Fitch BBB (Stable) Debt Breakdown(1) $ millions Interest Rate Amount Due $500 Du
Slide 11: Disciplined Capital Allocation Strategy
Kinross Gold Corporation May 2023 Disciplined Capital Allocation Strategy Reinvesting in our Business 2023 Guidance • Sustaining Capex – maintaining our existing operations ~$510M(1) safely and to world-class environmental standards • Expansion Projects – pursuing attractive returns by leveraging ex
Slide 12: Capital Return Program
First Quarter 2023 Capital Return Program Returning capital to shareholders while protecting investment grade balance sheet Compelling capital deployment Buyback Approach: opportunity to enhance per-share metrics 75% of Excess Cash Flow and shareholder returns (Free Cash Flow – Interest – Dividends)
Slide 13: Advancing the Project Pipeline
Kinross Gold Corporation May 2023 Advancing the Project Pipeline Expected project milestones on track(1) 2023 >> 2024 Q1 Great Bear 2024 Great Bear Initial Resource and Technical Results of PEA Report 2024 H1 Round Mountain Great Bear Potential Start of Advanced Begin Exploration Decline Explora
Slide 14: Prioritizing Resource Conversion
Kinross Gold Corporation May 2023 Prioritizing Resource Conversion (1) Significant potential for mine life extension at existing assets 25 20 15 Years 10 5 0 La Coipa Fort Knox Round Mountain Bald Mountain Tasiast Paracatu Lobo-Marte Expected Reserve Life Potential Resource Life (1) “Expected Reserv
Slide 15: 2023 Guidance Summary
Kinross Gold Corporation May 2023 2023 Guidance Summary(1)(2) 2023 2023 % of Total 2023 2023 Non- Production 2023 Total Country Production Forecast Sustaining Sustaining Cost of Capital(5) Guidance Production(3) Capital(5) Capital(5) Sales(4) (Au eq. oz.) (per Au eq. oz. sold) (+ / -5%) (+ / -5%) (+
Slide 16: Inflationary Pressures
Kinross Gold Corporation May 2023 Inflationary Pressures How inflationary pressure affects our cost structure Inputs Direct Cost Drivers Estimated Impacts Ground support Ground Grindingsupport media Grinding media Maintenance/supplies Steel OPEX Power costs Fuel Power Explosives Lubricants ANNUAL CA
Slide 17: Great Bear
Great Bear 17
Slide 18: Project Overview
Kinross Gold Corporation May 2023 Project Overview High grade mineralization across the property LP Zone Open along strike and at depth Disseminated high grade mineralization, analogous to Hemlo N Vein hosted and sulphide replacement high- Limb grade gold mineralization Hinge 5 km typical of Red Lak
Slide 19: Initial Contained Mineral Resource Estimate
Kinross Gold Corporation May 2023 Initial Contained Mineral Resource Estimate1 2022 drilling and technical program have resulted in a high-grade initial resource $1,700/OZ INITIAL RESOURCE Tonnes Grade (Au Ounces (000’s) g/t) (000’s) Indicated Open Pit 33,110 2.57 2,737 Inferred Open Pit 8,400 2.24
Slide 20: Majority of Resource Contained in High Grade Core
Kinross Gold Corporation May 2023 Majority of Resource Contained in High Grade Core Targeting higher grade mineralization in the early years Contained Ounces Moz 6 5 4 Inferred Inferred Inferred 3 Inferred 2 Indicated Indicated Indicated 1 Contained Resource Open Pit High Grade Underground High Grad
Slide 21: High Grade Core has Strong Spatial Continuity
Kinross Gold Corporation May 2023 High Grade Core has Strong Spatial Continuity Resilient pit shell driven by the high-grade core Open Pit Resource High Grade Core of the Open Pit Resource Based on a 0.5 g/t Cut Off Grade Based on a 0.9 g/t Cut Off Grade N Legend > 0.9 g/t 0.5 to 0.9 g/t 1km 21
Slide 22: The Initial Resource is Just the Beginning
Kinross Gold Corporation May 2023 The Initial Resource is Just the Beginning Intercepts below 1,000m point to a potential long-life underground NORTHWEST SOUTHEAST LP - DISCOVERY LP - CENTRAL LP - VIGGO BR-674 4.1 m @ 6.1 g/t BR-579 500 m BR-534 24.6 m @ 15.52 g/t BR-627 5.9 m @ 3.81 g/t 2.8 m @ 5.6
Slide 23: Exploration Decline
Kinross Gold Corporation May 2023 Exploration Decline Advanced exploration decline expected to enable efficient drilling of underground material Conceptual Exploration Timeline Preliminary Advanced Exploration Design 2023 2024 2025 2026 2027+ Resource Development Exploration, Deep Drilling Potential
Slide 24: Great Bear Appears Similar to Hemlo
Kinross Gold Corporation May 2023 Great Bear Appears Similar to Hemlo Over 90% of Hemlo has been mined from underground at depths of greater than 500 m Hemlo Great Bear Hemlo has produced +20 Moz 0 RL Open Open 500 RL 1,000 RL Open Open Open 3 Shafts GRADE THICKNESS < 5 GxM 50 to 100 GxM 5 to 15 GxM
Slide 25: Additional Upside Potential on Highly-Prospective Land Package
Kinross Gold Corporation May 2023 Additional Upside Potential on Highly- Prospective Land Package Transmission line Highway 105 1 Felsic – Intermediate Felsic Intrusive Ultramafic Mafic-Ultramafic Mafic (Calc-Alkaline?) Sediments 3 Great Bear property 3 Where we see opportunity for growth: 2 Hinge &
Slide 26: Targeted Path to Production at Great Bear
Kinross Gold Corporation May 2023 Targeted Path to Production at Great Bear Expected start of early works in early 2027 or late 2026, if permits received quickly ‘23 ‘24 ‘25 ‘26 ‘27 ‘28 ‘29 Project Studies Exploration Decline Permitting estimate in line with Environmental Baseline peers’ for federal
Slide 27: Asset Highlights
Asset Highlights 27
Slide 28: Q1/23 Recap
Q1/23 Recap Q1 On Plan La Coipa • Record grades and recoveries • All assets remain on track • Generated strong cash flow • Q1 production accounted for ~22% of • Production remains on track to achieve full-year guidance full-year guidance Great Bear Tasiast • Continuing to intersect high-grade • Reco
Slide 29: Tasiast Ramp-Up Progressing
First Quarter 2023 Tasiast Ramp-Up Progressing On Track to Meet FY2023 Guidance • Strong Q1 production, with record monthly production of ~55koz achieved in both January and March • Successfully completed planned shutdown in February • 24k project remains on schedule to reach throughput of 24ktpd by
Slide 30: Tasiast Solar Project
Kinross Gold Corporation May 2023 Tasiast Solar Project Advancing on Schedule for Completion by end of 2023 • The 34 MW solar power plant with 18 MW Preparation of Solar Power Plant Site battery system will provide ~20% of the site’s power, offsetting ~530 kt of greenhouse gas emissions over the lif
Slide 31: La Coipa
Kinross Gold Corporation May 2023 La Coipa High-Margin Production • Q1 production of 54koz at a cash cost of $727/oz(1) • Achieved record grades and recoveries • Performance is expected to improve throughout the year • On track for ~240koz in 2023 • Generating strong cash flow (1) Cash cost/oz is de
Slide 32: Paracatu
Kinross Gold Corporation May 2023 Paracatu Solid Contributor • Q1 production of 123kozs • Year-over-year improvements to minimize impacts of the rainy season • Higher production expected in Q2 and Q3 on higher mining rates and higher grades in deeper areas of the pit in the southwest 32
Slide 33: Round Mountain
Kinross Gold Corporation May 2023 Round Mountain Maintaining open pit optionality while exploring underground opportunities • Currently mining phases W1, W2 and other minor phases (shown in green) • Progressing underground potential at Phase X (orange star) in 2026 o Continuation of Phase W orebody;
Slide 34: Round Mountain – Phase X
Kinross Gold Corporation May 2023 Round Mountain – Phase X Focused on Higher-Margin UG Potential at Phase X • Progressing decline to start definition drilling in early 2024 • Advancing studies and permitting in parallel to advance path to first production • Vein intercepts and early mine designs con
Slide 35: Gold Hill
Kinross Gold Corporation May 2023 Gold Hill Potential High-Grade Underground Satellite to Supplement Phase X UG • Drilling suggests a series of narrower, higher-grade parallel veins extending from the open pit • Lower production, higher-grade underground satellite would supplement Phase X UG ore fee
Slide 36: Manh Choh
Kinross Gold Corporation May 2023 Manh Choh Construction is progressing on schedule and on budget Manh Choh Reserve & Resource Estimates(1) • Site camp now Tonnes Grade Ounces Grade Ounces operational, construction (thousands) (Au g/t) (Au koz) (Ag g/t) (Ag koz) Probable Reserves 2,755 7.88 698 13.5
Slide 37: Kettle River – Curlew Project
Kinross Gold Corporation May 2023 Kettle River – Curlew Project Underground drilling ongoing • A low sulfidation epithermal gold deposit in Washington, USA o Proximal to major state highway o 35km by paved road from 100% owned Kettle River mill and tailings facility o Significant Regional Endowment,
Slide 38: Global Mining Leader in ESG
Kinross Gold Corporation May 2023 Global Mining Leader in ESG (1) Environment Social Governance WATER MANAGEMENT • ~80% average water volume 99% > 600,000 INDEPENDENT BOARD recycling rate over the past 5 years of workforce hired from beneficiaries of • 9 of 10 Board members are GHG INTENSITY within
Slide 39: Appendix
IX Append KINROSS
Slide 40: Endnotes
Kinross Gold Corporation May 2023 Endnotes 1) Kinross’ outlook represents forward-looking information and users are cautioned that actual results may vary. Please refer to the Cautionary Statement on Forward-Looking Information on slide 2 of this presentation. 2) All-in sustaining cost per equivalen
Slide 41: 2023 Guidance Summary – Appendix A
Kinross Gold Corporation May 2023 2023 Guidance Summary – Appendix A Company guidance Annual attributable (1) gold equivalent production guidance (+/- 5%) 2023 2.1 million oz.(2) 2024 2.1 million oz. 2025 2.0 million oz. 2023 production and cost guidance 2023 Guidance (2) Accounting basis 2022 Actua
Slide 42: 2023 Guidance Summary – Appendix A
Kinross Gold Corporation May 2023 2023 Guidance Summary – Appendix A 2023 capital expenditures guidance Forecast 2023 sustaining Forecast 2023 non- Total 2023 forecast 2022 sustaining capital 2022 non-sustaining 2022 total capital capital (5)(6) sustaining capital (5)(6) capital (5)(6) capital (5)(6
Slide 43: 2023 Guidance Summary – Appendix A
Kinross Gold Corporation May 2023 2023 Guidance Summary – Appendix A Material assumptions used to forecast 2023 production cost of sales are as follows: • a gold price of $1,800 per ounce; • a silver price of $20 per ounce; • an oil price of $90 per barrel; • foreign exchange rates of: • 5.0 Brazili
Slide 44: Mineral Reserve and Mineral Resource Statement Notes – Appendix B
Kinross Gold Corporation May 2023 MINERAL RESERVE AND MINERAL RESOURCE STATEMENT NOTES – Appendix B (1) Unless otherwise noted, the Company’s mineral resources are estimated based on a gold price of $1,700 per ounce. Open pit Mineral Resources are estimated at a cut-off grade of 0.5 g/t Au. The LP Z
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Kinross Gold — Bank of America Global Metals, Mining & Steel Conference 2023 on 6ix