Kinross Gold Corporation · TSX:K
Kinross Gold — Q3 2017 Earnings Presentation
28 slides from Kinross Gold's earnings presentation, Nov 9, 2017
Slide 1: Kinross Gold Corporation Q3 2017 Results Conference Call & Webcast
November 9 KINROSS GOLD CORPORATION 2017 Q3 2017 Results Conference Call & Webcast 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 and responses to questions, including but not limited to any information as to the future performance of Kinross
Slide 3: Third Quarter 2017 Highlights
Third Quarter 2017 Highlights 3 3 www.kinross.com
Slide 4: 2017 Outlook
THIRD QUARTER 2017 HIGHLIGHTS 2017 OUTLOOK Continued track record of meeting or outperforming our operational targets • On track to meet guidance targets for sixth consecutive year • Tracking the high-end of production and low-end of cost forecasts • Strong year-to-date cost performance: Productio
Slide 5: Delivering Operational Excellence
THIRD QUARTER 2017 HIGHLIGHTS DELIVERING OPERATIONAL EXCELLENCE Strong Q3 performance from Tasiast, mines in the U.S. and Russia FORT KNOX ROUND MOUNTAIN • Delivered solid, consistent production and cost • Strong production driven by record-high mill grades performance • Cost of sales per ounce 25%
Slide 6: Proceeding with Tasiast Phase Two and Round Mountain Phase W Projects
THIRD QUARTER 2017 HIGHLIGHTS PROCEEDING WITH TASIAST PHASE TWO AND ROUND MOUNTAIN PHASE W PROJECTS • Completed the Phase Two and Phase W feasibility studies with positive results • Phase Two is expected to transform Tasiast into a world-class operation, with significant production, low all-in susta
Slide 7: Advancing Tasiast Phase One & Two
THIRD QUARTER 2017 HIGHLIGHTS ADVANCING TASIAST PHASE ONE & TWO Combined Phase One and Two expansions expected to transform Tasiast into our largest producer with costs amongst the lowest in our portfolio Phase One • Advancing well – now 77% complete • Project continues to be on time and on budget •
Slide 8: Advancing Organic Projects
THIRD QUARTER 2017 HIGHLIGHTS ADVANCING ORGANIC PROJECTS Organic projects offer opportunities to expand production or increase mine life at our operations Round Mountain Phase W Bald Mountain Vantage Moroshka Nevada Complex Russia Nevada • Stripping and initial • Development of the twin construction
Slide 9: Kinross Value Proposition
EXCELLENT operational track record Balance sheet STRENGTH ATTRACTIVE organic projects COMPELLING relative value Kinross Value Proposition www.kinross.com 99
Slide 10: Financial Highlights
Financial Highlights 10 10 www.kinross.com
Slide 11: Summary of Results
FINANCIAL HIGHLIGHTS SUMMARY OF RESULTS All figures in US$ millions, except ounces, per share amounts and per ounce amounts Q3 2017 Q3 2016 YTD Q3 2017 YTD Q3 2016 Attributable gold equivalent ounces (oz.)(2) Produced 653,993 684,129 2,020,823 2,042,859 Sold 638,659 674,070 1,968,189 2,020,219 Avera
Slide 12: 2017 Capital Expenditures Outlook
FINANCIAL HIGHLIGHTS 2017 CAPITAL EXPENDITURES OUTLOOK(1) Maintaining 2017 capital expenditures guidance of $900M +/- 5% • Expecting additional expenditures related to the Tasiast Phase Two, Round Mountain Phase W and Bald Mountain Vantage Complex projects in Q4 2017 • Notwithstanding this additiona
Slide 13: Solid Financial Position
FINANCIAL HIGHLIGHTS SOLID FINANCIAL POSITION Continued balance sheet strength & robust liquidity position LIQUIDITY POSITION MAINTAINING FINANCIAL FLEXIBILITY • Cash and cash equivalents of ~$1.0 billion as at September 30, 2017 • Net debt to EBITDA as at September 30, 2017: As at Sept. 30 $1.0B 0.
Slide 14: Operating Highlights
Operating Highlights 14 14 www.kinross.com
Slide 15: Americas
OPERATING HIGHLIGHTS AMERICAS • Excellent quarter at Round Mountain, with strong production and cost performance Highest mill grade since Kinross began operating the asset in 2003 • On track to double annual production at Bald Mountain with lower costs compared to 2016; achieved record quarterly p
Slide 16: West Africa
OPERATING HIGHLIGHTS WEST AFRICA • Strong performance continued at Tasiast in Q3 2017 Processed highest mill grade in past 7 years Good cost performance continued in Q3 • Increased production at Chirano compared to Q2 2017, primarily due to an increase in throughput and higher grades Surface m
Slide 17: Russia
OPERATING HIGHLIGHTS RUSSIA • Production cost of sales remain among the lowest in the Kinross portfolio • Development of September Northeast project completed on time and on budget Began processing ore through Kupol mill in June as planned Expect to complete operations at this high grade deposit
Slide 18: Attractive Development Projects
Attractive Development Projects 18 18 www.kinross.com
Slide 19: Advancing Organic Projects
ATTRACTIVE DEVELOPMENT PROJECTS ADVANCING ORGANIC PROJECTS Organic projects spanning all 3 of our regions offer opportunities to expand production or extend mine life at our operations Project Location Q2 2018 Americas West Africa Q1 2018 Tasiast Phase 1 Expected to Russia reach full Q4 2017 commerc
Slide 20: Tasiast Two-Phased Expansion
ATTRACTIVE DEVELOPMENT PROJECTS TASIAST TWO-PHASED EXPANSION Phase One advancing well, with plant construction 77% complete • Installation of the crusher and conveyors for the Primary Crusher stockpile and SAG feed are all progressing well • SAG mill well-advanced: SAG mill shell fully in place; gea
Slide 21: Phase One Progressing Well
ATTRACTIVE DEVELOPMENT PROJECTS PHASE ONE PROGRESSING WELL Phase One on schedule & on budget with full commercial production expected towards the end of Q2 2018 SAG mill Cyclone towers Leach tanks New tailings facility 2121 www.kinross.com
Slide 22: Advancing Phase Two
ATTRACTIVE DEVELOPMENT PROJECTS ADVANCING PHASE TWO Phase Two expansion expected to reach commercial production in Q3 2020 • Project owner’s team established • Started procurement for long-lead items, including the power plant • Finalized commercial terms for EPCM package • Initial construction expe
Slide 23: Round Mountain Phase W
ATTRACTIVE DEVELOPMENT PROJECTS ROUND MOUNTAIN PHASE W Phase W construction expected to be complete in Q2 2019 • Received Decision Record from the U.S. Bureau of Land Management in October; state permitting proceeding as planned • Advancing detailed engineering • Procurement commencing for long lead
Slide 24: Bald Mountain Vantage Complex
ATTRACTIVE DEVELOPMENT PROJECTS BALD MOUNTAIN VANTAGE COMPLEX Vantage Complex (South area) • Overall engineering approximately 70% complete • Permitting proceeding as planned • Contemplates construction of a new heap leach facility and related infrastructure Design includes additional 68M tonnes o
Slide 25: Tasiast Sud
ATTRACTIVE DEVELOPMENT PROJECTS TASIAST SUD Encouraging results from C6.13 and C6.15 in the Tasiast Sud Area • Tamaya: approximately 335k oz. of measured & indicated gold resources(i) defined in 2015 • Recent drilling in the Tasiast Sud area has focused on the C6.13 and C6.15 deposits C6.13 Locate
Slide 26: Building Momentum for the Future
2020E 2019E Expected 2018E start-up of PHASE W TASIAST 2017E construction PHASE TWO TASIAST expected to 2016 PHASE ONE be complete Expecting expected to stronger year be complete Delivered at BALD RECORD MOUNTAIN production Building Momentum for the Future 2626 www.kinross.com
Slide 27: Endnotes
ENDNOTES 1) For more information regarding Kinross’ production, cost, overhead expense and capital expenditures outlook for 2017, please refer to the news releases dated February 15, 2017 and November 8, 2017, both of which are available on our website at www.kinross.com. Kinross’ outlook for 2017 r
Slide 28: Kinross Gold Corporation
KINROSS GOLD CORPORATION 25 York Street, 17th Floor │Toronto, ON │ M5J 2V5 www.kinross.com 2828 www.kinross.com