Kinross Gold Corporation · TSX:K
Kinross Gold — Euromoney Conference 2004
30 slides from Kinross Gold's conference presentation, Nov 4, 2004
Slide 1: Euromoney Conference
Euromoney Conference November 4, 2004 dedicated to being world class
Slide 2: Forward Looking Statement
Forward Looking Statement Certain statements set forth in this presentation constitute "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties and other factors that may cause the actual resul
Slide 3: 2004 Q3 Financial Highlights
2004 Q3 Financial Highlights Third Quarter Nine Months (millions except per share and per ounce amounts) 2004 2003 2004 2003 Revenue $177.0 $155.3 $486.0 $428.6 Net earnings (loss) $9.4 $8.1 $29.2 $(13.7) Earnings (loss) per share $0.03 $0.03 $0.08 $(0.05) Cash flow provided from operations $62.5 $3
Slide 4: Operating Results
Operating Results 2004E 2003 2002 Gold equivalent production (ounces) 1,700,000 1,620,410 888,634 Total cash costs (per ounce) $ 239 $ 222 $ 201 Total costs (per ounce) $235-240 $ 318 $ 306 Gold price realized (per ounce) $393 ytd $ 357 $ 306 challenging opportunities require innovative strategies
Slide 5: Our global producing assets
Kinross Gold Corporation Fort Knox (100%) our global producing assets Alaska, USA (Open Pit) New Britannia (50%) Manitoba, Canada (U/G) Musselwhite (32%) Ontario, Canada (U/G) Porcupine (49%) Kettle River (100%) Ontario, Canada (Open Pit, U/G) Washington, USA (U/G) Lupin (100%) Alaska, USA (Open Pit
Slide 6: Why Kinross?
Why Kinross? • Very liquid senior gold producer • Strong balance sheet • Total cash costs similar to other senior gold producers • No gold hedging • Experienced management team • Part of S&P TSX 60, S&P TSX Capped Gold Index, XAU Index, HUI Index challenging opportunities require innovative strategi
Slide 7: Kinross at a Glance
Kinross at a Glance Key Facts Key Attributes • Senior gold producer, • Excellent spread of 2004 gold equivalent geopolitical risk production of ~1.7 • Modern, low cost asset million ozs at $235 to base $240 total cash cost • Exciting pipeline of • ~3,600 employees in 6 development projects countries
Slide 8: Highly liquid, undervalued stock
Highly liquid, undervalued stock 4.0 3.5 Glamis 3.0 Price / NAV Meridian Newmont 2.5 Placer Goldcorp 2.0 Kinross Barrick 1.5 Anglo 1.0 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% Liquidity challenging opportunities require innovative strategies
Slide 9: Kinross Today
Kinross Today Kinross is now a major gold producer, focused in the Americas Concerns addressed: Ø Financial leverage – strong balance sheet challenging opportunities require innovative strategies
Slide 10: Balance Sheet (at December 31, 1999)
Balance Sheet (at December 31, 1999) Assets Liabilities $ millions $ millions Cash 113.9 Current liabilities 50.5 Other working capital 101.2 Property, plant and equipment 632.6 Total debt 397.7 Other long term assets 34.7 Site restoration costs 58.5 Future Taxes 7.3 Common Shareholders Equity 368.4
Slide 11: Balance Sheet (at September 30, 2004)
Balance Sheet (at September 30, 2004) Assets Liabilities $ millions $ millions Cash 215.3 Current liabilities 107.7 Other working capital 151.1 Property, plant and equipment 788.7 Total debt 20.9 Goodwill 918.0 Site restoration costs 108.7 Other long term assets 61.4 Future taxes and other 57.9 Comm
Slide 12: Kinross Today
Kinross Today Kinross is now a major gold producer, focused in the Americas Concerns addressed: Ø Financial leverage – strong balance sheet ü Ø Cash costs – comparable to other North American seniors challenging opportunities require innovative strategies
Slide 13: Total Cash Costs
Total Cash Costs How Kinross has improved relative to other producers over time? 400 350 Total Cash Costs 2000 Total Cash Costs 2004E 300 250 US dollars 200 150 100 50 0 Harmony Newmont Placer Anglo Agnico Eagle Cambior Glamis Meridian Kinross Goldcorp Barrick challenging opportunities require innov
Slide 14: Kinross Today
Kinross Today Kinross is now a major gold producer, focused in the Americas Concerns addressed: Ø Financial leverage – strong balance sheet ü Ø Cash costs – comparable to other North American seniors ü Ø Deliver on production and cost targets challenging opportunities require innovative strategies
Slide 15: Deliverables…
Deliverables… Production - Budget Production - Actual Total Cash Cost - Budget Total Cash Costs - Actual 600 250 500 200 000s gold equivalent ounces 400 150 300 100 200 50 100 0 0 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004E Q4 2004E challenging opportunities require innovative strategie
Slide 16: Kinross Today
Kinross Today Kinross is now a major gold producer, focused in the Americas Concerns addressed: Ø Financial leverage – strong balance sheet ü Ø Cash costs – comparable to other North American seniors ü Ø Deliver on production and cost targets ü Ø Reserve life – increasing year over year challenging
Slide 17: Reserve Replacement - 2003
Reserve Replacement - 2003 16 14.1 2.7 13.2 (1.8) 12 Millions of ounces 8 4 0 31-Dec-02 Depletion New Discoveries 31-Dec-03 challenging opportunities require innovative strategies
Slide 18: Reserve Replacement – 2004E
Reserve Replacement – 2004E 16 0.8 0.5 16.0 (2.1) 2.7 14.1 12 Millions of ounces 8 4 0 31-Dec-03 Depletion New Acquisitions Gold Price 31-Dec-04E ($325) Discoveries ($350) challenging opportunities require innovative strategies
Slide 19: Reserve Growth (excluding production)
Reserve Growth (excluding production) Estimated New 2P Reserves To Be Added in 2004 Gurupi Buckhorn Fort Knox Replaced Reserves PJV Replaced Reserves 55% Round Mtn Replaced Reserves 25% La Coipa Replaced Reserves Musselwhite Replaced Reserves Crixas Replaced Reserves 0 200 400 600 800 1000 1200 1400
Slide 20: Reserve Growth 2005
Reserve Growth 2005 Ø Round Mountain Ø Fort Knox Ø Kettle River Ø Paracatu challenging opportunities require innovative strategies
Slide 21: Round Mountain Pit Expansion
Round Mountain Pit Expansion Ultimate Pit Current Pit Crest Potential Pit Expansion 1000’
Slide 22: Fort Knox Drill Targets
Fort Knox Drill Targets SECTION 10,600 E A Looking West A' South North Cu rre FFC-04-716 Ul nt tim Pit 65 feet @ 0.316 OPT Au at e Pi 35 feet @ 0.273 OPT Au t Pit Expansion Target 5ft @ 0.16 OPT Au 5ft @ 0.09 OPT Au 5ft @ 0.18 OPT Au 5ft @ 0.45 OPT Au 5ft @ 0.20 OPT Au 5ft @ 0.33 OPT Au 5ft @ 0.11 O
Slide 23: Paracatu, Cross Section
Paracatu, Cross Section Looking N30°W 240° 060° 900m surface WATER TABLE 700m CURRENT PIT LIMIT (369Mt) SAG EXPANSION (161Mt) Hydrothermally Altered Ore Zone 350-400 Mt TARGET Phyllite 500m Existing drill hole Lower Pyrrhotite Ore Horizon B2 Calha Ore 1000 metres As >2,500 ppm challenging opportunit
Slide 24: Kinross Today
Kinross Today Kinross is now a major gold producer, focused in the Americas Concerns addressed: Ø Financial leverage – strong balance sheet ü Ø Cash costs – comparable to other North American seniors ü Ø Deliver on production and cost targets ü Ø Reserve life – increasing year over year ü challengin
Slide 25: Current Project Pipeline
Current Project Pipeline Exploration Pre-feasibility Feasibility Construction Production Refugio Pamour Birkachan Paracatu Exp. Puren Gurupi Gold Hill PQ Deeps Measured & Indicated Resources Proven & Probable Reserves Emanuel North Progress January 03 to September 04 New Discovery Forquilha Sul Pend
Slide 26: Cash Flow Supporting Capex
Cash Flow Supporting Capex 200 Cash flow Capex 160 Millions US dollars 120 80 40 0 1999 2000 2001 2002 2003 2004E challenging opportunities require innovative strategies
Slide 27: 2004 Capex
2004 Capex Fort Knox • Investment - $74 million over three years to complete pit laybacks on phase 5 and phase 6 of mine plan • Liberates 1.4 million oz of gold to be produced in 2005 – 2009 timeframe Porcupine • Investment $33 million spread over 2004 – 2005 to bring Pamour mine into operation • En
Slide 28: 2004 Capex
2004 Capex Refugio • $56 million (Kinross’ share) to retrofit and restart plant that has been idle since 2001 • Produce 210,000 to 230,000 oz/year (100% basis) @ $220 to $240 challenging opportunities require innovative strategies
Slide 29: Summary
Summary • Strong balance sheet • Total cash costs similar to other senior gold producers • Meet or exceed production targets • Reserve concern being addressed challenging opportunities require innovative strategies
Slide 30: Dedicated to being world class
dedicated to being world class Shares outstanding: 345.6 million KGC: NYSE K: TSX K.U: TSX (US dollar trading symbol) K.WT: TSX www.kinross.com Kinross Gold Corporation 40 King Street West, 52nd Floor Scotia Plaza Toronto, ON M5H 3Y2 416-365-5123 416-363-6622 866-561-3636 info@kinross.com