Kinross Gold Corporation · TSX:K
Kinross Gold — Conference Presentation (November 2012)
27 slides from Kinross Gold's conference presentation, Nov 14, 2012
Slide 1: Kinross Gold Corporation November 2012 Marketing Presentation
November KINROSS GOLD CORPORATION 2012 November Marketing Presentation 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, including any information as to the future performance of Kinross, constitute “forward looking statements” with
Slide 3: Foundation of Our Business: Operating Mines in 4 Core Regions
FOUNDATION OF OUR BUSINESS OPERATING MINES IN 4 CORE REGIONS • Diversified portfolio of assets located in some of the world’s best gold districts RUSSIA Kupol Fort Knox Kettle River - Buckhorn Round Mountain NORTH AMERICA Tasiast Chirano WEST AFRICA Paracatu La Coipa Maricunga 2012E SOUTH AMERICA 2.
Slide 4: 2012 Production & Cost Outlook
THIRD QUARTER 2012 2012 PRODUCTION & COST OUTLOOK(1) • Identified $200 million in cost savings, reducing expected 2012 capital expenditures to $2.0 billion from $2.2 billion • Expect to be toward the high end of both production and cost guidance ranges: Gold Production(2) % of Total Production Cost
Slide 5: Operating Results Highlights
THIRD QUARTER 2012 OPERATING RESULTS HIGHLIGHTS • Kinross is on track to deliver 2012 full-year production and cost of sales guidance GOLD EQUIVALENT PRODUCTION(2) PRODUCTION COST OF SALES(3) 672,173 $740 632,772 $725 588,358 $677 $ per ounce Ounces Q1 2012 Q2 2012 Q3 2012 Q1 2012 Q2 2012 Q3 2012 (2
Slide 6: Financial Results Highlights
THIRD QUARTER 2012 FINANCIAL RESULTS HIGHLIGHTS REVENUE ADJUSTED CASH FLOW(5) ADJUSTED NET EARNINGS(4) +7% +5% -7% $1,110 $434 $269 $1,041 $413 $250 US$ millions $0.24/sh $0.22/sh $0.38/sh $0.36/sh Q3 2011 Q3 2012 Q3 2011 Q3 2012 Q3 2011 Q3 2012 (4) From continuing operations. Refer to endnote #4. 6
Slide 7: Maintaining a Strong Balance Sheet
THIRD QUARTER 2012 MAINTAINING A STRONG BALANCE SHEET • Closed a new US$1.0 billion 3-year term loan on August 17, 2012: Cost-effective funding: LIBOR plus 1.70% Effectively pre-funds the repayment of senior convertible notes which may be required in March 2013 • Increased existing US$1.2 billio
Slide 8: The Kinross Way Forward
THIRD QUARTER 2012 THE KINROSS WAY FORWARD • 7 key areas form the basis of The Kinross Way Forward: • Prioritizing cash flow 1. MINE PLAN OPTIMIZATION • Optimizing pushback widths, mine sequencing • Exploiting zero / low-capex productivity improvements 2. CONTINUOUS IMPROVEMENT • Reducing unit consu
Slide 9: Sources of Potential Value Opportunities
THE KINROSS WAY FORWARD SOURCES OF POTENTIAL VALUE OPPORTUNITIES Potential impact High Medium Low NORTH SOUTH WEST RUSSIA AMERICA AMERICA AFRICA 1. Mine plan optimization 2. Continuous improvement 3. Cost management & labour productivity 4. Capital efficiency 5. Supply chain management 6. Energy man
Slide 10: Portfolio of Development Projects
FOUNDATION FOR FUTURE GROWTH PORTFOLIO OF DEVELOPMENT PROJECTS • Optimized project sequencing, with Dvoinoye and Tasiast as key development priorities Dvoinoye Tasiast Fruta del Norte Lobo-Marte GLOBAL PORTFOLIO Operating mine Development project 1010 www.kinross.com
Slide 11: Dvoinoye Continues on Schedule
RUSSIA DVOINOYE CONTINUES ON SCHEDULE • Underground development 52% complete Continues to progress ahead of plan • Surface infrastructure construction 45% complete Site infrastructure development • All-season road progressing well • All necessary permits for current scope of underground developmen
Slide 12: Update on Tasiast Optimization
MAURITANIA UPDATE ON TASIAST OPTIMIZATION HEAP LEACH TESTING • Gold recovery rates averaged approximately 60% • Concluded that heap leaching does not provide an economically attractive alternative to CIL milling and that investment in fine crush heap leaching is not currently justified PRE-FEASIBILI
Slide 13: Other Development Projects
SOUTH AMERICA OTHER DEVELOPMENT PROJECTS FRUTA DEL NORTE • Negotiations with the Ecuadorian government continue • Government considering reforms to tax and mining laws to help mitigate effects of the Windfall Profits Tax • Kinross does not expect to reach agreements with the government on exploitati
Slide 14: Encouraging Results Year-to-Date
2012 EXPLORATION PROGRAM ENCOURAGING RESULTS YEAR-TO-DATE Q3 2012 TASIAST EXPLORATION TASIAST DISTRICT • Accelerated drill program in the district outside of the main orebody • Encountered a number of new targets and positive follow-up drill results at C67 & C68 CHIRANO • Drilling under the open pit
Slide 15: Kinross: Foundation for the Future
KINROSS: FOUNDATION FOR THE FUTURE • Significant reserve & resource base • Four operating regions generating robust cash flow • Strong balance sheet & liquidity position • Focused plan for reducing costs, improving margins & increasing free cash flow • Portfolio of development projects and a discipl
Slide 16: Appendix
APPENDIX 1616 www.kinross.com
Slide 17: Fort Knox, Alaska (100%)
UNITED STATES FORT KNOX, ALASKA (100%) • Production commenced in 1997 • Began construction of a new heap leach facility to extend mine life in 2008 • Heap leach production commenced in late 2009 OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) OF SALES ($/oz.) YTD Q3 2012 240,366 $737 FY 20
Slide 18: Round Mountain (50%)
UNITED STATES ROUND MOUNTAIN (50%) • Kinross-operated JV with Barrick • Bulk tonnage open-pit operation • Commercial production began in 1977 OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) OF SALES ($/oz.) YTD Q3 2012 151,110 $698 FY 2011 187,444 $697 2011 GOLD RESERVES AND RESOURCES(5) T
Slide 19: Kettle River – Buckhorn (100%)
UNITED STATES KETTLE RIVER – BUCKHORN (100%) • Entered production in Q4/08 • Small foot-print, underground mine • Near-mine exploration targets OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) OF SALES ($/oz.) YTD Q3 2012 122,545 $487 FY 2011 175,292 $420 2011 GOLD RESERVES AND RESOURCES(5)
Slide 20: Kupol (100%)
RUSSIA KUPOL (100%) • Completed transaction increasing ownership to 100% from 75% on April 27, 2011 • High-grade underground mine with 3,000 tpd mill • Produced its 2 millionth ounce of gold in 2011 OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) OF SALES ($/oz.) YTD Q3 2012 431,717 $471 F
Slide 21: Paracatu (100%)
BRAZIL PARACATU (100%) • Plant 2 expansions now largely complete: 3rd ball mill commissioned in Q2 2011 Commissioning of the 4th ball mill is expected to be complete at year-end 2012 OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) OF SALES ($/oz.) YTD Q3 2012 334,595 $915 FY 2011 453,3
Slide 22: La Coipa (100%)
CHILE LA COIPA (100%) • Gold/silver mine in the Maricunga district • Comprehensive exploration program • Recent discovery at Pompeya (75% Kinross), located 3 km from mill OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) OF SALES ($/oz.) YTD Q3 2012 115,438 $1,084 FY 2011 178,287 $762 2011 G
Slide 23: Maricunga (100%)
CHILE MARICUNGA (100%) • Located in the highly prospective Maricunga District • High-altitude heap leach operation • Construction of new SART plant completed in Q2 2012 and is now commissioning OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) OF SALES ($/oz.) YTD Q3 2012 171,801 $727 FY 201
Slide 24: Tasiast (100%)
MAURITANIA TASIAST (100%) • Open-pit mine ~300 km north of the city of Nouakchott • Remote, flat, sparsely populated desert • First expansion phase complete: new ADR plant & dump leach facility OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) OF SALES ($/oz.) YTD Q3 2012 139,283 $833 FY 201
Slide 25: Chirano (90%)
GHANA CHIRANO (90%) • 90% owned by Kinross; Government of Ghana holds a 10% carried interest • 9 open-pits and 2 recently-discovered underground deposits • Achieved first gold pour in 2005 OPERATING RESULTS(2) PRODUCTION PRODUCTION COST (Au eq. oz.) OF SALES ($/oz.) YTD Q3 2012 186,448 $731 FY 2011
Slide 26: Endnotes
ENDNOTES 1) For more information regarding Kinross’ production and cost outlook for 2012, please refer to the news release dated August 8, 2012, available on our website at www.kinross.com. 2) Unless otherwise noted, gold equivalent production, gold equivalent ounces sold and production cost of sale
Slide 27: Kinross Gold Corporation
KINROSS GOLD CORPORATION 25 York Street, 17th Floor │Toronto, ON │ M5J 2V5 www.kinross.com 2727 www.kinross.com
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