Kinross Gold Corporation · TSX:K
Kinross Gold — TD Securities Global Mining Conference 2023
37 slides from Kinross Gold's conference presentation, Jan 25, 2023
Slide 1: Delivering Value.
Delivering Value. January 2023
Slide 2: Cautionary Statement on Forward-Looking Information
Cautionary Statement on Forward-Looking Information January 2023 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 performan
Slide 3: Table of Contents
November 2022 Table of Contents Company Overview 4 Great Bear 17 Asset Highlights 25 33
Slide 4: Who is Kinross?
Kinross Gold Corporation January 2023 Who is Kinross? AMERICAS STRONG FOCUSED Portfolio PRODUCTION OUTLOOK 6 mines LARGE GOLD GEOGRAPHICALLY STABLE DYNAMIC COMMITTED TO PRODUCER, DIVERSIFIED PRODUCTION CAPITAL RESPONSIBLE HIGHLY LIQUID PRODUCER +2MOZ ALLOCATION MINING • ~US$5 billion • Americas acco
Slide 5: High Quality Portfolio of Assets
January 2023 High Quality Portfolio of Assets Two top tier(1) mines account for ~50% of production 2022E Gold Equivalent Production(2) Fort Knox, U.S.A. Manh Choh, U.S.A. 29% Great Bear, Canada Bald Mountain, ~2.0M U.S.A. Head Office, Canada ounces Round Mountain, U.S.A. 71% Approximate Annual Produ
Slide 6: Investment Case
Kinross Investment Case January 2023 Stable 3.17Production (Moz, attributable) Value in the Americas(2) Americas-focused business, two Top Tier(1) assets Americas focus not reflected in valuation 1.4x Price / Net Asset Value Expected Production ~ 2.1 ~ 2.1 1.1x % of NAV in Americas 1.1x 1.0x ~ 2.0 ~
Slide 7: Market Undervaluing Kinross' Assets
Kinross Gold Corporation January 2023 Market Undervaluing Kinross’ Assets Substantial production not reflected in market valuation 2022E Gold Production (1) Market Capitalization (1) 2.4 $12.5 2.1 ~2.0 2.0 $10.5 Million AuEq oz $9.2 1.5 $8.6 US$B 1.4 Average: 1.5 Moz Average: $8.3 B 0.9 $5.1 $5.3 0.
Slide 8: Top Two Assets Justify Market Cap
Kinross Gold Corporation January 2023 Top Two Assets Justify Market Cap Value of two top-tier assets approximately equal to market cap Market Capitalization vs. Asset Value $7.1 $5.1 $5.1 US$B Market Capitalization (2) NPV of (1) Kinross NAV (1) Tasiast & Paracatu (1) Calculated as average of Net Pr
Slide 9: Attractive Cash Flow Metrics
Kinross Gold Corporation January 2023 Attractive Cash Flow Metrics Backed by a substantial mineral inventory P / 2023E Operating Cash Flow Per Share (1) Enterprise Value / Total Resources With additional upside expected from Great Bear (2) 8.4x 7.3x 7.2x $457 6.7x Average: 6.8x 5.8x 5.1x 4.3x $226 $
Slide 10: Enhanced Share Buyback Program
Kinross Gold Corporation January 2023 Enhanced Share Buyback Program Attractive return of capital while protecting investment grade balance sheet • Compelling capital deployment opportunity to enhance per-share metrics and shareholder returns 2022 Buyback: • Quarterly dividend maintained $300M • Buy
Slide 11: Prioritizing Resource Conversion
Kinross Gold Corporation January 2023 (1) Prioritizing Resource Conversion Significant potential for mine life extension at existing assets 25 20 15 Years 10 5 0 La Coipa Bald Mountain Paracatu Round Fort Knox Tasiast Lobo-Marte Mountain Expected Reserve Life Potential Resource Life (1) Note: Incorp
Slide 12: Strong Liquidity & Financial Flexibility
Third Quarter 2022 January 2023 Strong Liquidity & Financial Flexibility Liquidity Position (1) Financial Flexibility • Total liquidity(1) of ~$2.0 billion, including ~$490 million of cash and cash equivalents • $300 million in Share Buybacks in 2022 As at September 30, 2022 • $150 million in Divide
Slide 13: Manageable Debt Profile
Kinross Gold Corporation January 2023 Manageable Debt Profile Senior notes are rated investment grade by all three rating agencies Debt Schedule Debt Ratings Agency Rating $1,000 S&P BBB- (Stable) Moody’s Baa3 (Stable) Fitch BBB (Stable) $ millions $500 Debt Breakdown $500 Interest Rate Amount Due D
Slide 14: Disciplined Capital Allocation Strategy
Kinross Gold Corporation January 2023 Disciplined Capital Allocation Strategy Reinvesting in our Business 2022 Guidance • Sustaining Capex – maintaining our existing operations ~$400M safely and to world-class environmental standards • Expansion Projects – pursuing attractive returns by leveraging e
Slide 15: 2022 Inflationary Pressures
Kinross Gold Corporation January 2023 2022 Inflationary Pressures Continued inflationary pressure affecting our cost structure Inputs Direct Cost Drivers Estimated Impacts Ground support Ground Grindingsupport media Grinding media Maintenance/supplies Steel OPEX Power costs ~12% Fuel Power Explosive
Slide 16: Advancing the Project Pipeline
Kinross Gold Corporation January 2023 Advancing the Project Pipeline Expected project milestones on track(1) 2022 >> 2023 >> 2024 Late February Great Bear ✓ Q1 La Coipa H2 2024 Manh Choh Acquisition Closed Sustained Throughput at 13ktpd First Production Q1 La Coipa Restart ✓ Q1 Great Bear 2024 Great
Slide 17: Great Bear
November 2022 Great Bear 1 17 7
Slide 18: Great Bear is an Orogenic Gold System
Kinross Gold January 2023 Great Bear is an Orogenic Gold System Orogenic systems have the potential to host +20 million ounces • 1 Orogenic gold deposits are derived from metamorphic fluids at depth 2 • Gold bearing fluids migrate upward along fault systems 3 3 • Fluids then get rerouted along the s
Slide 19: Great Bear is Comparable to Hemlo, which Produced +20Mozs
Kinross Gold January 2023 Great Bear is Comparable to Hemlo, which Produced +20Mozs Hemlo Great Bear 0 RL 500 RL 1,000 RL LP Zone Confirmation of mineralization now down to ~800 m GRADE THICKNESS < 5 GxM 50 to 100 GxM 5 to 15 GxM 100 to 200 GxM 15 to 30 GxM > 200 GxM 30 to 50 GxM We have extensively
Slide 20: Exciting Results at Depth at Great Bear
Kinross Gold January 2023 Exciting Results at Depth at Great Bear DISCOVERY BRUMA YUMA YAURO AURO VIGGO 3.9 m @ 6.10 g/t ~500 m 11.3 m @ 18.6 g/t 1.8 m @ 4.05 g/t Limit of well- 16.1 m @ 3.58 g/t 28.5 m @ 7.11 g/t 2.3 m @ 13.04 g/t 4.6 m @ 5.26 g/t 500 RL drilled zone 6.57 m @ 15.8 g/t 3.0 m @ 5.68
Slide 21: First 500 Meters Support Expected Initial Resource; Significant Upside Potential Remains
Kinross Gold January 2023 First 500 Meters Support Expected Initial Resource; Significant Upside Potential Remains Open along strike Long-section of Great Bear’s LP Fault zone Open along strike 1 1 DISCOVERY BRUMA YUMA YAURO AURO VIGGO 3.9 m @ 6.10 g/t ~500 m 11.3 m @ 18.6 g/t 1.8 m @ 4.05 g/t Limit
Slide 22: A Pathway to Proving Out the Underground
Kinross Gold January 2023 A Pathway to Proving Out the Underground Conceptual Great Bear project timeline 2022 2023 2024 2025 2026 2027 1 Resource Development 2 Exploration, Deep Drilling Potential Delineation of New Discoveries 3 Develop Exploration Decline 4 Drilling From Underground Strike Extens
Slide 23: Additional upside potential on highly-prospective land package
Third Quarter 2022 January 2023 Additional upside potential on highly- prospective land package Transmission line N Highway 105 Felsic – Intermediate Felsic Intrusive Ultramafic Mafic-Ultramafic (Tholeitic) Mafic (Calc-Alkaline?) Sediments Indicated/Inferred Target Areas Property Exploration Areas 1
Slide 24: Great Bear Timeline Dependent on Permitting
Kinross Gold January 2023 Great Bear Timeline Dependent on Permitting Conceptual timeline ‘22 ‘23 ‘24 ‘25 ‘26 ‘27 ‘28 ‘29 Project Studies Environmental Baseline Permitting estimate in line with peers’ for federal IAAC1 process Prepare Impact Statement Agency (I.S.) I.S. Review Submit Initial Project
Slide 25: Asset Highlights
Asset Highlights 25
Slide 26: Q3 Progress
January 2023 Q3 Progress Production Increases Across Portfolio Gold grade and production 1 Paracatu increased as planned United States 2 Seasonal improvement as expected Heaps Steadily increasing throughput and 3 La Coipa production with FY target of 100 koz 4 Tasiast Higher production expected in Q
Slide 27: YTD Results and Guidance
Third Quarter 2022 January 2023 (1) YTD Results and Guidance Q3 2022 YTD 2022 2022 Updated Results(1) Results (1) Guidance (1,5) Cost of Sales (2) $941 $979 ~$900 (per Au eq. oz. sold) All-in $1,282 $1,287 ~$1,240 Sustaining Cost (per Au eq. oz. sold)(3) Capital Expenditures $197 $447 ~$750 (4) (mil
Slide 28: Tasiast Ramp-Up Progressing
Third Quarter 2022 January 2023 Tasiast Ramp-Up Progressing Focus on improvements, setting up for a strong 2023 Improvements to Date • Commissioned additional oxygen plant • Commissioned three new leach tanks • Added pre-oxidation stage to circuit • Progressed commissioning of gravity circuit • Chan
Slide 29: Tasiast Solar Project
January 2023 Tasiast Solar Project On track for Q3 2023 • The 34 MW solar power plant with 18 MW Preparation of solar power plant site battery system will provide ~20% of the site’s power, offsetting ~530 kt of greenhouse gas emissions over the life-of- mine, which represents ~3% of Kinross’ emissio
Slide 30: La Coipa Ramp-Up Progressing
January 2023 La Coipa Ramp-Up Progressing Q3 commissioning saw continuous progress Q3 Commissioning showing improvements La Coipa Mill Throughput Monthly Average • Resolved commissioning issues and improving mill 15 reliability Mill Throughput (ktpd) • Throughput improvements each month since July 1
Slide 31: Round Mountain Optimization Complete
January 2023 Round Mountain Optimization Complete Current focus Planned next steps Future options Round Mountain Underground Round Mountain Round Mountain Open pit Phase X Open pit Vision: bulk long-hole open stoping based on intercepts Phase W1 + W2 suggesting 3-4 g/t avg stopes Phase S ✓ Generate
Slide 32: Round Mountain Phase X Preliminary View Points to Exciting Underground Future
January 2023 Round Mountain Phase X Preliminary View Points to Exciting Underground Future 2023 Phase X action plan: drive the decline • Phase X envisions a bulk long-hole Conceptual view of Phase X underground open stoping underground mine based Phase W2 open pit on intercepts suggesting an average
Slide 33: Kinross Alaska – Manh Choh (70%)
January 2023 Kinross Alaska – Manh Choh (70%) Feasibility results released in Q2 Q2’22 Manh Choh Reserve & Resource Estimates(1) • Adds high grade mill feed to Tonnes Grade Ounces Grade Ounces Fort Knox’s mill (~10x the (thousands) (Au g/t) (Au koz) (Ag g/t) (Ag koz) current average milled grade Pro
Slide 34: Kettle River – Curlew Project
January 2023 Kettle River – Curlew Project Targeting YE 2022 resource N Buckhorn Mine (~1.3Moz) • Curlew project is a low sulfidation epithermal gold deposit Curlew Project located in northern Washington State, USA K1, K2 Mine (~0.5Moz) Curlew o Proximal to major state highway o 35km by paved road f
Slide 35: Global Mining Leader in ESG
January 2023 (1) Global Mining Leader in ESG Environment Social Governance WATER MANAGEMENT • ~80% average water volume 99% >1 million INDEPENDENT BOARD recycling rate over the past 5 years of workforce hired from beneficiaries of • 8 of 9 Board members are GHG INTENSITY within host country communit
Slide 36: Endnotes
January 2023 Endnotes 1) Kinross’ outlook represents forward-looking information and users are cautioned that actual results may vary. Please refer to the Cautionary Statement on Forward-Looking Information on slide 2 of this presentation. 2) All-in sustaining cost from continuing operations per equ
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Kinross Gold — TD Securities Global Mining Conference 2023 on 6ix