Kinross Gold Corporation · TSX:K
Kinross Gold — Bank of America Merrill Lynch Global Metals & Mining Conference 2011
28 slides from Kinross Gold's conference presentation, May 11, 2011
Slide 1: Delivering Disciplined Growth
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 DELIVERING DISCIPLINED GROWTH BANK OF AMERICA MERRILL LYNCH GLOBAL MINING & METALS CONFERENCE May 10 – 12, 2011 1 CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION All statements, other than
Slide 2: Why Gold? Industry Production Declining
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 WHY GOLD? WHY KINROSS? WHY NOW? 3 INDUSTRY PRODUCTION DECLINING • Forecasted world production from gold mining likely to decline 2,800 2,700 Gold Production (Tonnes) 2,600 2,500 2,400 2 300 2,3
Slide 3: Increasing Demand for Gold; Fewer Gold Discoveries
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 INCREASING DEMAND FOR GOLD $225 $1,520 Investment / Other Total Fabrication $200 Gold Price (US$/oz) $1,320 Current gold price $175 $1,120 $150 old Demand (US$ billions) Gold Price (US$/oz.) $9
Slide 4: Why Kinross?
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 WHY GOLD? GO ? WHY KINROSS? WHY NOW? 7 WHY KINROSS? 1. Industry-leading growth from a senior gold producer 2. World-class projects with experienced teams and financial resources to build them 3
Slide 5: Continuing the Kinross Transformation
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 CONTINUING THE KINROSS TRANSFORMATION Kinross Gold Production Yesterday Kinross Gold Production Now(1) 4.5 – 4.9 m oz) Gold equivalent production (mm ozz) Gold equivalent production (mm 2.3 2.6
Slide 6: Q1 2011 Results: Continuing to Deliver
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 Q1 2011 RESULTS: CONTINUING TO DELIVER Revenue Adjusted Operating Cash Adjusted Net Earnings(2) +42% Flow((2)) +81% $937 +67% $398 $180 US$ millions $658 $239 $100 $0.34/sh $0.35/sh $0.16/sh $0
Slide 7: Growing Cash Flow per Share
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 GROWING CASH FLOW PER SHARE • 5-yr CAGR : 21% $1 36 $1.36 $1.32 Cash Flow per Share (US$)(2) $1.01 $0.80 $0.56 $0.51 Adjusted C $ $0.35 2005 2006 2007 2008 2009 2010 Q1 2011 (2) Refer to endnot
Slide 8: Track Record of Reserve Growth
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 TRACK RECORD OF RESERVE GROWTH ORGANIC KINROSS RESERVE ADDITIONS TODAY WEST AFRICA 9.7 62.4 Proven and Probable Gold Reserves(55) RESERVE ADDITION 2.4 10.0 51.0 PRODUCTION DEPLETION 5.8 CERRO C
Slide 9: Strong Balance Sheet
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 STRONG BALANCE SHEET • Cash on hand at March 31, 2011: $1.6 bn • Equity pipeline investment portfolio valued at $113.4 mm As at March 31, 2011 $1,561 US$ millions $591 $470 $ Cash and cash equi
Slide 10: Gold Production from New Projects
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 GOLD PRODUCTION FROM NEW PROJECTS +1.3(i) average annual gold production (mm oz) +0.41(ii) +0.35(ii) Estimated a Tasiast Expansion Fruta del Norte Lobo-Marte (i) Does not include current Tasias
Slide 11: Mauritania: Key Facts
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 MAURITANIA: KEY FACTS # Producing Mine # Exploration / Development Project • Among most sparsely-populated countries 1) 2) Tasiast Tasiast(Robinson) (Kinross) - –Au Au Guelb Moghrein (First Qua
Slide 12: Progression of Drilling at Tasiast
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 PROGRESSION OF DRILLING AT TASIAST January 2011 February 2010 April 2009 Tasiast Shear 2010 Resource Shell 23 EXPLORATION UPDATE AT TASIAST • 3 additional drills added in January 2011; 26 drill
Slide 13: Tasiast Orebody & Resource Pit
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 TASIAST OREBODY & RESOURCE PIT 25 TASIAST GREENSCHIST ZONE LONG-SECTION GST 1km 26 13
Slide 14: Resource Growth at Tasiast
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 RESOURCE GROWTH AT TASIAST 8.6 Ounces (millions)(5,6) 5.1 1.9 2.1 1.4 9.2 9.3 0.8 7.6 5.4 3.7 Year-end 2008 November 2009 September 2010 November 2010 Year-end 2010 Proven and Probable Mineral
Slide 15: Tasiast, Mauritania
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 TASIAST, MAURITANIA • Procurements for expanded mine fleet made Shovels and drills now out to tender Purchased generators with 16 MW of capacity • Retained international EPCM joint-venture
Slide 16: Fruta del Norte, Ecuador
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 FRUTA DEL NORTE, ECUADOR • Prepared pre-feasibility study and technical report • Underground operation estimated 16-year mine life • LOM avg. production estimate : 410k Au eq. oz. / year Expe
Slide 17: Lobo-Marte, Chile
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 LOBO-MARTE, CHILE 33 LOBO-MARTE, CHILE • Completed pre-feasibility study update • 10-year mine life 47 000 tpd heap leach with SART plant • Expected 47,000 • Annual production estimate: 350k oz
Slide 18: Lobo-Marte, Chile
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 LOBO-MARTE, CHILE • 20,000 m drill campaign 70% complete Geotechnical drilling has been completed Geotechnical G t h i l and d mine i blblock k models d l expected t d tto b be completed in
Slide 19: Increasing Kupol Ownership to 100%
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 INCREASING KUPOL OWNERSHIP TO 100% • Kinross increased Kupol ownership to 100% Includes the Kupol East-West exploration licenses • Total consideration: approx. $350 million To be financed t
Slide 20: Why Now? BofA Merrill Lynch P/NAV
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 WHY GOLD? WHY KINROSS? WHY NOW? 39 BANK OF AMERICA MERRILL LYNCH: P / NAV 2.2 2.1 19 1.9 1.8 1.6 1.3 AGNICO GOLDCORP NEWMONT BARRICK YAMANA KINROSS Source: Bank of America Merrill Lynch researc
Slide 21: Key Objectives for 2011
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 BANK OF AMERICA MERRILL LYNCH: P/ 2011e CFPS 17.7 14.3 11.4 9.1 8.0 7.8 GOLDCORP AGNICO KINROSS BARRICK NEWMONT YAMANA Source: Bank of America Merrill Lynch research – April 26, 2011 41 KEY OBJ
Slide 22: Why Kinross?
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 WHY KINROSS? 1. Industry-leading growth from a senior gold producer 2. World-class projects with experienced teams and financial resources to build them 3. Attractive valuation 43 APPENDIX 44 2
Slide 23: Fort Knox, Round Mountain
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 FORT KNOX, USA (100%) • Located in Alaska • Expansion and new heap leach to extend t d mine i lif life OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz) ($/oz) Q1 2011 65,047 $628 Q1 201
Slide 24: Kettle River-Buckhorn, Kupol
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 KETTLE RIVER-BUCKHORN, USA (100%) • Entered production in Q4/08 • Small foot-print, underground mine • Near-mine exploration targets OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz) ($/
Slide 25: Paracatu, Crixas
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 PARACATU, BRAZIL (100%) • Recoveries near target • Major expansion commissioning • Adding 3rd and 4th ball mills OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz) ($/oz) Q1 2011 100,427
Slide 26: La Coipa, Maricunga
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 LA COIPA, CHILE (100%) • Gold/silver mine in the Maricunga district • Comprehensive C h i exploration l ti program OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz) ($/oz) Q1 2011 54,446
Slide 27: Tasiast, Chirano
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 TASIAST, MAURITANIA (100%) • Open-pit mine ~300 km north of the city of Nouakchott • Remote, R t flflat, t sparsely l populated l t d desert OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq.
Slide 28: Endnotes
KINROSS GOLD CORPORATION Bank of America Merrill Lynch Global Mining & Metals Conference March 10-12, 2011 ENDNOTES 1) For more information regarding Kinross production and cost forecast for 2011 and production target for 2015, please refer to the press release dated May 3, 2011, available on our we
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