Kinross Gold Corporation · TSX:K
Kinross Gold — Shareholder Meeting (May 2013)
30 slides from Kinross Gold's shareholder meeting presentation, May 8, 2013
Slide 1: 2013 Annual General Meeting of Shareholders
May 8 KINROSS GOLD CORPORATION 2013 ANNUAL GENERAL MEETING OF SHAREHOLDERS 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: Principles for Building Value
PRINCIPLES FOR BUILDING VALUE 1. Internal focus on operational fundamentals 2. Pursuing quality versus quantity in mine planning, production and resource strategies 3. Maintaining a strong balance sheet 4. Disciplined approach to capital allocation and project development www.kinross.com
Slide 4: Mines & Projects in 4 Core Regions
FOUNDATION OF OUR BUSINESS MINES & PROJECTS IN 4 CORE REGIONS • Diversified portfolio of assets located in some of the world’s best gold districts RUSSIA WEST AFRICA NORTH AMERICA 2012 PRODUCTION(1) 2.6 million gold equivalent ounces GLOBAL PORTFOLIO Operating mine Development project SOUTH AMERICA
Slide 5: North America
NORTH • 2012 production: 708,371 gold equivalent ounces at cost of sales of $637/oz. AMERICA • Well-run, stable open-pit and underground operations www.kinross.com
Slide 6: Fort Knox, Alaska
FORT KNOX, ALASKA • Operating since 1997 • 2012 production: 359,948 gold equivalent ounces www.kinross.com
Slide 7: Kettle River-Buckhorn, Washington
KETTLE RIVER-BUCKHORN, WASHINGTON • Operating since 2008 • 2012 production: 156,093 gold equivalent ounces www.kinross.com
Slide 8: Round Mountain, Nevada (50% Ownership)
ROUND MOUNTAIN, NEVADA (50% OWNERSHIP) • Operating since 1977 • 2012 production: 192,330 gold equivalent ounces www.kinross.com
Slide 9: South America
SOUTH • 2012 production: 881,945 gold equivalent ounces at cost of sales of $870/oz. AMERICA • Largest operating region accounting for approx. one third of annual production www.kinross.com
Slide 10: Paracatu, Brazil
PARACATU, BRAZIL • Operating since 1987 • 2012 production: 466,709 gold equivalent ounces www.kinross.com
Slide 11: Maricunga, Chile
MARICUNGA, CHILE • Operating since 1996 • 2012 production: 236,369 gold equivalent ounces www.kinross.com
Slide 12: La Coipa, Chile
LA COIPA, CHILE • Operating since 1991 • 2012 production: 178,867 gold equivalent ounces www.kinross.com
Slide 13: West Africa
WEST • 2012 production: 449,245 gold equivalent ounces at cost of sales of $788/oz. AFRICA • Strong focus on increasing efficiency and performance in the region www.kinross.com
Slide 14: Tasiast, Mauritania
TASIAST, MAURITANIA • Operating since 2008 • 2012 production: 185,334 gold equivalent ounces www.kinross.com
Slide 15: Chirano, Ghana (90% Ownership)
CHIRANO, GHANA (90% OWNERSHIP) • Operating since 2005 • 2012 production: 263,911 gold equivalent ounces www.kinross.com
Slide 16: Kupol, Russia
KUPOL • 2012 production: 578,252 gold equivalent ounces at cost of sales of $472/oz. RUSSIA • Model for successfully operating in a remote region www.kinross.com
Slide 17: Operational Fundamentals
OPERATIONAL FUNDAMENTALS STRONG FIRST QUARTER OPERATING RESULTS • Strong performance from operations delivered solid results in Q1 2013 GOLD EQUIVALENT PRODUCTION COST ALL-IN SUSTAINING PRODUCTION(1) OF SALES(2) COSTS(3) 648,897 $1,180 588,358 $738 $ per ounce $729 $1,038 $ per ounce Ounces Q1 2012
Slide 18: Focus on Cost Management
FOCUS ON COST MANAGEMENT CAPITAL DISCIPLINE CONTINUES IN 2013 2012 estimate following Identified project resequence $200 mm of capital reductions Actual 2012 $2.2 spend Continued focus on disciplined $2.0 Capital Expenditures (US$ billions) spending $1.9 $1.6 February Q2 - Q3 Full-year Expected 2012
Slide 19: 2013 Production & Cost Outlook
FOCUS ON COST MANAGEMENT 2013 PRODUCTION & COST OUTLOOK(4) • Outlook shaped by continued focus on cost control, margin improvement and free cash flow • 2013 all-in sustaining cost expected to be $1,100 - $1,200 per gold ounce Gold Production % of Total Production cost of Sales Region (000 oz. Au eq.
Slide 20: The Kinross Way Forward
MAXIMIZING MARGINS & CASH FLOW THE KINROSS WAY FORWARD • Focus on 7 key areas of opportunity: 1. MINE PLAN OPTIMIZATION 2. CONTINUOUS IMPROVEMENT 3. COST MANAGEMENT & LABOUR PRODUCTIVITY 4. CAPITAL EFFICIENCY 5. SUPPLY CHAIN MANAGEMENT 6. ENERGY MANAGEMENT 7. WORKING CAPITAL MANAGEMENT www.kinross.c
Slide 21: Mineral Reserves and Resources
CHOOSING QUALITY OVER QUANTITY MINERAL RESERVES AND RESOURCES(5) • Strategic decision to maintain gold price assumptions used for 2011 • Example of Kinross’ commitment to focus on higher quality, higher margin ounces PROVEN & PROBABLE MEASURED & INFERRED RESOURCES RESERVES INDICATED RESOURCES 62.6 2
Slide 22: Portfolio of Development Projects
DISCIPLINED PROJECT DEVELOPMENT PORTFOLIO OF DEVELOPMENT PROJECTS • Optimized project sequencing, with Dvoinoye and Tasiast as key development priorities www.kinross.com
Slide 23: Tasiast Advances to Feasibility Study
DISCIPLINED PROJECT DEVELOPMENT TASIAST ADVANCES TO FEASIBILITY STUDY FEASIBILITY STUDY EXPECTED TO BE COMPLETE Q1 2014 • Trade-off studies concluded that a 38k tpd mill would provide the optimum economics • Decision whether to proceed to the construction phase will be made once the feasibility stud
Slide 24: Dvoinoye
DVOINOYE • Dvoinoye continues to progress on budget and on schedule RUSSIA • Full production is expected to commence in the second half of 2013 www.kinross.com
Slide 25: Fruta del Norte
DISCIPLINED PROJECT DEVELOPMENT FRUTA DEL NORTE • Engaged in negotiations with the government of Ecuador regarding exploitation and investment protection agreements for the past 2 years • Have thus far been unable to reach an agreement on certain key economic and legal matters • Kinross has requeste
Slide 26: Encouraging Results at Tasiast & Kupol
2012 EXPLORATION PROGRAM ENCOURAGING RESULTS AT TASIAST & KUPOL • Exploration results at Tasiast continue to confirm our belief in the potential of the district to yield additional development opportunities • At Kupol, we discovered mineralization within a parallel structure at the Moroshka target w
Slide 27: Maintaining Our Social License to Operate
TAKING RESPONSIBILITY MAINTAINING OUR SOCIAL LICENSE TO OPERATE • Member of the Dow Jones Sustainability World Index • Member of the Jantzi Social Index • Listed among Canada’s top corporate citizens by both Maclean’s and Corporate Knights www.kinross.com
Slide 28: Taking Action to Build Shareholder Value
CONSISTENCY & DISCIPLINE TAKING ACTION TO BUILD SHAREHOLDER VALUE • Operational fundamentals • Aggressive focus on cost management • Maximizing margin & free cash flow • Disciplined project development • Maintaining a strong balance sheet www.kinross.com
Slide 29: Endnotes
ENDNOTES (1) Unless otherwise noted, gold equivalent production, gold equivalent ounces sold and production cost of sales figures in this presentation are based on Kinross’ 90% share of Chirano production, and do not include production from Crixas, due to the sale of Kinross’ 50% ownership completed
Slide 30: 2013 Annual General Meeting of Shareholders
May 8 KINROSS GOLD CORPORATION 2013 ANNUAL GENERAL MEETING OF SHAREHOLDERS www.kinross.com