Kinross Gold Corporation · TSX:K
Kinross Gold — Q2 2011 Earnings Presentation
26 slides from Kinross Gold's earnings presentation, Aug 11, 2011
Slide 1: Delivering Disciplined Growth
DELIVERING DISCIPLINED GROWTH SECOND QUARTER 2011 FINANCIAL & OPERATING RESULTS WEBCAST August 11, 2011 1
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: Tye Burt, President & CEO
TYE BURT President & CEO TYE BURT CHIEF EXECUTIVE OFFICER 3
Slide 4: Q2 2011 Highlights
Q2 2011 HIGHLIGHTS • Continuing to deliver strong financial results Revenue Adjusted Operating Cash Adjusted Net Earnings(1) +42% Flow(1) +103% +46% $413 $227 $988 US$ millions $283 $697 $111 $0.20/sh $0.40/sh $0.36/sh $0.16/sh Q2 2010 Q2 2011 Q2 2010 Q2 2011 Q2 2010 Q2 2011 (1) Refer to endnote #1.
Slide 5: Advancing Our Projects
ADVANCING OUR PROJECTS Tasiast Fruta del Norte Dvoinoye Lobo-Marte • 15 core & 8 RC drills on • Developed 70 metres of • Completed 24,900 metres • 70% of 20,000 metres site exploration decline of drilling drill program completed • Potential new • Negotiations with • Decline advanced 250 • EIA submit
Slide 6: Q2 2011 Highlights
Q2 2011 HIGHLIGHTS • Production(2): 676,245 gold equivalent ounces (up 26% from Q2 2010) • Record quarterly revenue of $987.8 million (up 42% from Q2 2010) • Adjusted operating cash flow(1) of $413.1 million (up 46% from Q2 2010) • Adjusted net earnings(1) of $226.5 million (up 103% from Q2 2010) •
Slide 7: Paul Barry, Chief Financial Officer
PAUL BARRY CHIEF FINANCIAL OFFICER 7
Slide 8: Q2 2011 Results
Q2 2011 RESULTS Realized Margin(4,5) (in millions, except ounces and per Q2/10 Q2/11 % Change Gold Price +31% share amounts) +25% $873/oz $1,449/oz Gold equivalent production(2) 538,270 676,245 26% (ounces) Gold equivalent sales (2) 551,958 685,823 24% (ounces) Revenue $696.6 $987.8 42% Production c
Slide 9: Strong Balance Sheet
STRONG BALANCE SHEET • Cash on hand at June 30, 2011: $1.08 billion • Equity pipeline investment portfolio valued at $104 million • $1.2 billion revolving credit facility • Commitments received for $200 million non-recourse Kupol financing $1,080 As at June 30, 2011 US$ millions $591 $466 Cash and c
Slide 10: Brant Hinze, Chief Operating Officer
BRANT HINZE CHIEF OPERATING OFFICER 10
Slide 11: Q2 2011 Operating Results
Q2 2011 OPERATING RESULTS Gold equivalent ounces (2,4) Production cost of sales Produced Sold ($ mm) ($/oz.) Fort Knox 77,727 77,269 $52.4 $678 Round Mountain 47,151 46,941 $34.7 $739 Kettle River - Buckhorn 46,237 45,442 $18.3 $403 North America total: 171,115 169,652 $105.4 $621 (2) Kupol 169,470
Slide 12: Dr. Glen Masterman, SVP Exploration
DR. GLEN MASTERMAN SENIOR VICE-PRESIDENT, EXPLORATION 12
Slide 13: Resource Growth at Tasiast
RESOURCE GROWTH AT TASIAST(3) 4.6 Ounces (millions) 8.6 5.1 9.1 1.9 2.1 1.4 0.8 9.2 9.3 7.6 7.6 5.4 3.7 Year-end 2008 November 2009 September 2010 November 2010 Year-end 2010 June 2011 Inferred Mineral Resources Measured & Indicated Mineral Resources Measured & Indicated Mineral Resources (inclusive
Slide 14: Tasiast Long-Section
TASIAST LONG-SECTION TA05154RD TA05152RD 45m @1.22 g/t Au 61m @ 1.75 g/t Au GXM >= 250 TA05148DD 22m @ 4.49 g/t Au, and 200 to 250 13m @ 0.95 g/t Au 150 to 200 100 to 150 50 to 100 TA05149DD 25 to 50 9m @ 4.32 g/t Au Assays pending < 25 TA05162RD $1300 Pit 56m @ 1.55 g/t Au Shell TA05155ARD 0 2000 I
Slide 15: Tasiast District
TASIAST DISTRICT • Regional soil geochemistry and drilling C67 • Highly prospective district, large scale mineral system • Drilling now focused on: Testing extensions of mineralization intersected in previous drilling at the C69 and Charlize targets Awaiting assay results on C67 to guide further
Slide 16: Exploration Update at Tasiast
EXPLORATION UPDATE AT TASIAST • 15 core and 8 RC drill rigs in operation • Drilled 124,000 metres in Q2; 250,000 metres drilled year-to-date • Drilling encountering a number of new opportunities: Potential new Greenschist-style mineralization identified 500 strike metres from West Branch Potenti
Slide 17: Dr. Ken Thomas, SVP Projects
DR. KEN THOMAS SENIOR VICE-PRESIDENT, PROJECTS 17
Slide 18: Tasiast, Mauritania
TASIAST, MAURITANIA • Expansion project remains on schedule: Construction expected to start mid-2012 Project start-up of 60,000 tpd mill is targeted for early 2014 • New opportunities to optimize the project to be considered as part of the feasibility study Exploring natural gas / LNG options
Slide 19: Fruta del Norte, Ecuador
FRUTA DEL NORTE, ECUADOR • Advancing the exploration decline: Construction of the portal high wall is complete and 70 metres of the exploration decline has been developed to date On target to develop 600 metres by year-end 2011 Exploration decline is expected to be complete in 2013 • Advancing
Slide 20: Dvoinoye, Russia
DVOINOYE, RUSSIA • 24,900 metres of exploration and engineering drilling completed as of end of Q2 2012 Drilling to define further reserves and resources Exploration drilling has also commenced on the Vodorazdelnaya license • Development of exploration decline advanced to 250 metres as of end of
Slide 21: Lobo-Marte, Chile
LOBO-MARTE, CHILE • 20,000 metre drill campaign 70% complete Geotechnical drilling has been completed Geotechnical and mine block models expected to be completed in Q3 2011 • Environmental Impact Assessment was submitted in June, ahead of schedule • Feasibility study expected Q4 2011 • Expected
Slide 22: Tye Burt, President & CEO
TYE BURT President & CEO TYE BURT CHIEF EXECUTIVE OFFICER 22
Slide 23: Key Objectives for 2011
KEY OBJECTIVES FOR 2011 Complete Tasiast scoping study Declare NI 43-101 resource at Dvoinoye Complete Fruta del Norte pre-feasibility study Complete Dvoinoye scoping study Complete purchase of Kupol minority interest Commence construction on La Zarza exploration decline at F
Slide 24: Continuing the Kinross Transformation
CONTINUING THE KINROSS TRANSFORMATION Kinross Yesterday Kinross Now(6) 4.5 – 4.9 Gold equivalent production (mm oz) Gold equivalent production (mm oz) 2.6 – 2.7 2.3 1.6 2005 2010 2011e 2015e (revised upwards) (6) Refer to endnote #6. 24
Slide 25: Endnotes
ENDNOTES 1) Adjusted net earnings attributed to common shareholders and adjusted operating cash flow numbers are non- GAAP financial measures which are meant to provide additional information and should not be used as a substitute for performance measures prepared in accordance with GAAP. For more i
Slide 26: Kinross Gold Corporation
KINROSS GOLD CORPORATION 25 YORK STREET, 17TH FLOOR TORONTO, ON M5J 2V5 WWW.KINROSS.COM 26