Slide 1: Russia: Unlocking the Potential
Russia: Unlocking the Potential MINEX 2007 3 October 2007 Hugh Agro Sr. VP, Strategic Development 1
Slide 2: Cautionary Statements
Cautionary Statements All statements, other than statements of historical fact, contained or incorporated by reference in this presentation, including any information as to the future financial or operating performance of Kinross, constitute “forward-looking statements” within the meaning of certain
Slide 3: World Gold Production
World Gold Production 3,000 Production (tonnes) $700 Gold Price (US$/oz) 2,700 $630 2,400 $560 2,100 $490 1,800 $420 1,500 $350 1,200 $280 900 $210 600 $140 300 $70 0 $0 96 97 98 99 00 01 02 03 04 05 06 E 07 19 19 19 19 20 20 20 20 20 20 20 20 Source: GFMS Gold Survey; RBC CM Estimates, Bloomberg 3
Slide 4: Declining Rate of Discovery
Declining Rate of Discovery 120 3,732 3,110 8 6 100 of Ounces 7 2,488 80 8 10 5 Oyu Tolgoi Quimsacocha Tonnes 1,866 60 East Pebble Millions 40 1,244 2 2 Blagodatnoe 3 3 2 3 20 622 1 1 2 1 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Alto Chicama Cortez Hills Prim
Slide 5: Russian Gold Sector
Russian Gold Sector Ranks 2nd in the world in gold resources 2006 gold output amounted to 173 tonnes Alluvial mining sector in structural decline Exploration not widespread, deposits are in remote areas with no infrastructure Few non-Russian players; very few “juniors” Source: GFMS Gold Su
Slide 6: North-South Corridor
Eastern Russia Gold Deposits North-South Corridor East-West Corridor Source: Kinross Exploration 6
Slide 7: Untapped Mineral Potential
Untapped Mineral Potential Russia S. America North – South Corridor, Metallogenic Belt Pevek to Khabarovsk Andean Cordillera Approximate Length 2,500 km 5,000 km Yrs. Hard Rock Exploration 5 – 10 years +30 years No. Companies < 50 >500 No. Projects <30 >500 No. Mines <20 >100 Source: Metals Economic
Slide 8: Juniors: A Global Exploration Force
Juniors: A Global Exploration Force Worldwide Exploration Budgets by Company Type 2006 Exploration by Headquarters & Company Type $4,000 $3,500 Majors Intermediates $3,000 Juniors Gov't & Other US$ millions $2,500 $2,000 $1,500 $1,000 $500 $0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Year
Slide 9: Issues Facing Junior Explorers
Issues Facing Junior Explorers Open tender requirement - a company is required to release its exploration results for an open tender if it wishes to acquire mining rights Bureaucracy – tender process is time-consuming and expensive. System and attitude of regulators often quite rigid Preferent
Slide 10: Policy Matters
Policy Matters Russia ranked 62nd in a Russia Ranking recent survey1 out of 65 jurisdictions for Ranked 18th attractiveness based on industry and land use regulations However, if the current situation were to change to Ranked 62nd a “best practices” regulatory regime, 92% of survey respondents w
Slide 11: Why Encourage Juniors?
Why Encourage Juniors? Accelerated discovery and development of new resources Infrastructure development Jobs in remote areas Acceptance by global resource market participants; reciprocal exposure to commercial opportunities outside Russia Increased national production and GDP Tax and ro
Slide 12: Kinross
Kinross 12
Slide 13: Kinross – Key Facts
Kinross – Key Facts1 3rd largest N. American gold producer by reserves 9 operating mines, 5 countries: – Russia, Chile, Brazil, United States, Canada 3 major projects in development: – Kupol, Kettle River, Paracatu Expansion 2007 production estimate: 53 tonnes (Au equivalent) Production gr
Slide 14: Focused Global Portfolio
Focused Global Portfolio1 Julietta Kupol Fort Knox Kettle River Round Mountain Development Project Crixas Mine Operations Paracatu La Coipa Maricunga Note: 1. After giving effect to the asset transaction announced 26 Sept. 2007 14
Slide 15: Kinross in Russia - History
Kinross in Russia - History Kubaka Mine – Opened in early 1997 – Biggest gold mining operation in Russia in the KUBAKA late 1990s – From 1997 to 2005, produced 93 tonnes of gold – Mining now completed KUBAKA 15
Slide 16: Kinross in Russia - Today
Kinross in Russia - Today Julietta Mine (90%) – Operating since Sept. 2001 – 2.4 tonnes of gold annually Kupol Project (75%) – Construction start in 2005; Production in mid-2008 – 13.4 tonnes of gold equivalent annually – Over 1,000 new jobs created for Russian nationals Over 1,000 new jobs cr
Slide 17: Kinross Strategy in Russia
Kinross Strategy in Russia Complete construction of the Kupol Project: – start-up mid 2008 Build on our commercial presence in the country: – Moscow rep office opening early 2008 Forge local alliances and seek new opportunities for growth Exploration activity: – Focus on Russian Far East – E
Slide 18: Thank You
Thank You Hugh Agro Sr. VP, Strategic Development hugh.agro@kinross.com 18
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