Kinross Gold Corporation · TSX:K
Kinross Gold — Investor Presentation (April 2010)
24 slides from Kinross Gold's investor presentation, Apr 20, 2010
Slide 1: Delivering Disciplined Growth
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 Delivering Disciplined Growth BMO Sales Desk Presentation Toronto, ON April 20, 2010 Cautionary Statement on Forward‐Looking Information All statements, other than statements of historical fact, contained or incorporated by referenc
Slide 2: Why Kinross? Key Objectives for 2010
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 Why Kinross? • Growing cash flow – Production has risen while margins have expanded – CFPS(1): 5 yr CAGR : 25% – Strong balance sheet: ~$1.1 bn in cash • Pipeline of future opportunities Kinross Today – Increasing reserve and resour
Slide 3: Kinross' Evolution
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 Kinross’ Evolution Kinross Tomorrow Next wave of growth through project Kinross Today development 2011 ‐ 2012 • 8 operating mines • 3rd ball mill at Paracatu • Focus in core regions Kinross • $937.2 mm cash flow (‘09) • Maricunga Ex
Slide 4: World Gold Reserves and Resources
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 World Gold Reserves and Resources Total Reserves & Resources Total Reserves & Country % (mm ozs) Resources (tonnes) Brazil Chile 1. South Africa 997 29.7% United States 2. Russia 225 6.7% Russia South Africa 3. Australia 193 5.8% 4.
Slide 5: Focused Portfolio in Five Countries
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 Focused Portfolio in Five Countries Portfolio of Mines and Projects Chile United States • Maricunga • Fort Knox • La Coipa • Kettle River‐Buckhorn • Lobo‐Marte • Round Mountain • Cerro Casale Brazil Russia Paracatu • Kupol
Slide 6: Expanding Margins: +27% 5-yr CAGR
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 Expanding Margins: +27% 5‐yr CAGR 2004 – 2009: $530 • Average realized gold price: +139% • Kinross’ Ki ’ attributable tt ib t bl costt off sales i (7): +229% l margin $436 +229% Costt of Sales Margin ($/oz.) $329 $279 $161 $170 $ FY
Slide 7: Gold Resource Growth
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 Gold Resource Growth(2) 90.0 140.0 Inferred 80.0 Measured & Indicated Proven & Probable Reserves 120.0 Resource oz p per 1,000 , shares (3) 21.2 70.0 TTotal Resource ounce per 1,000 shares 14.9 100.0 Total Resources (mm oz.) 60.0 7.
Slide 8: Highlights from Q4 2009
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 Highlights from Q4 2009 Q4 ‘09 Highlights • Production increased to 613,858 Au eq. oz. (up 12% from Q4’08) • Cost of sales(5): $437/oz (co‐product); $383/oz (by‐product) • Record cost of sales margin(7) of $657/oz. (up 57% from Q4’0
Slide 9: 2009 Full-Year Results
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 2009 Full‐Year Results COS Margin(6) Realized +9% (7) (in millions, except ounces and 2008 2009 % Change COS Margin Gold Price $492/oz per share amounts) +22% +13% 13% $530/oz Gold equivalent production $967/oz 1,838,038 2,238,655 2
Slide 10: Pipeline of Projects for the Future
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 Pipeline of Projects for the Future • Further organic growth at our mines • Advancing next suite of projects • Exploration & JV strategies 19 At‐Site Growth Opportunities Paracatu, Brazil – 3rd Ball Mill • Increasing grinding capaci
Slide 11: Kinross to Acquire High-grade Kupol Satellite Deposit
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 Kinross to Acquire High‐grade Kupol Satellite Deposit • Acquiring 100% of the Dvoinoye deposit and Vodorazdelnaya concession(9) o High High‐grade grade deposit ~90 90 km north of Kupol Dvoinoye deposit & o Estimated potential deposi
Slide 12: Dvoinoye Directly Aligns with Kinross Strategy
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 Dvoinoye Directly Aligns with Kinross Strategy High‐grade deposit Leverages nearby‐existing nearby existing infrastructure, operating and technical expertise mill Expected capital cost benefit by processing Dvoinoye ore at exi
Slide 13: Fruta del Norte, Ecuador
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 Fruta del Norte, Ecuador • 18,000 metre drill campaign in 2010 • Expected to be completed by Q3 2010 Quito • Pre‐feasibility expected by year‐end • Environmental Impact Statements to be submitted in Q2 2010 for drilling permits for
Slide 14: Update on Cerro Casale
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 Update on Cerro Casale La Coipa • Sold down interest from 50% to 25%: o Total value: $475 mm L b M t Lobo‐Marte ~110 km • Rebalances Cerro Casale in our overall portfolio, reduces future capital and increases cash Maricunga • Finali
Slide 15: Kinross Acquires Underworld Resources
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 Kinross Acquires Underworld Resources • Kinross announced a friendly deal to acquire 100% of Underworld Resources(11) o Excludes 8.5% already owned by Kinross (fully‐diluted) • Offer unanimously supported by the Underworld Board • 0
Slide 16: Valuation
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 Valuation 31 BMO: P / 6% NAV 1.3 1.2 1.1 1.1 0.8 GG KGC ABX NEM AUY Source: BMO Gold Pages – April 19, 2010 32 16
Slide 17: BMO: P / 2010 CFPS
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 BMO: P / 2010 CFPS 18.2 12.6 9.7 9.1 8.9 GG KGC ABX AUY NEM Source: BMO Gold Pages – April 19, 2010 33 Key Objectives for 2010 Declare increased reserves Complete Lobo‐Marte pre‐feasibility study Final feasibility study fo
Slide 18: Endnotes
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 35 Endnotes (1) Unless otherwise stated, all cash flow and cash flow per share figures in this presentation are adjusted operating cash flow. Adjusted operating cash flow figures are non‐GAAP financial measures which are meant to pr
Slide 19: Cautionary Note to Shareholders in the U.S.
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 Cautionary Note to Shareholders in the U.S. Information in this presentation, including the documents incorporated by reference herein, has been prepared in accordance with the requirements of securities laws in effect in Canada, wh
Slide 20: Fort Knox, USA (100%)
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 Fort Knox, USA (100%) • Located in Alaska • Expansion and new heap leach to extend mine life • M t i lb Material being i stacked t k d on new pads d Operating Results Production Cost of Sales (Au eq. oz) ($/oz) 2009 263,260 $546 200
Slide 21: Kettle River, USA (100%)
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 Kettle River, USA (100%) • Entered production in Q4’08 • Small foot‐print, underground mine • 2009 first full yyear of p production • Near‐mine exploration Operating Results Production Cost of Sales (Au eq. oz) ($/oz) 2009 173,555 $
Slide 22: Paracatu, Brazil (100%)
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 Paracatu, Brazil (100%) • Recoveries near target • Major expansion commissioning • Adding 3rd ball mill Operating Results Production Cost of Sales (Au eq. oz) ($/oz) 2009 354,396 $693 2008 188,156 $450 2009 Gold Reserves and Resourc
Slide 23: La Coipa, Chile (100%)
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 La Coipa, Chile (100%) • Gold/silver mine in the Maricunga district • Mill facility located 60km from Lobo‐Marte deposits • Comprehensive exploration program Operating Results Production Cost of Sales (Au eq. oz) ($/oz) 2009 231,169
Slide 24: Kinross Gold Corporation
Kinross Gold Corporation BMO Sales Desk Presentation April 20, 2010 47 24