Kinross Gold Corporation · TSX:K
Kinross Gold — RBC Capital Markets Gold Conference 2011
60 slides from Kinross Gold's conference presentation, Nov 10, 2011
Slide 1: A High-Growth Pure Gold Producer
A HIGH-GROWTH PURE GOLD PRODUCER RBC CAPITAL MARKETS GOLD CONFERENCE November 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: Why Kinross?
WHY KINROSS? 1. Pure gold, high-growth senior producer 2. Robust operating cash flow from 10 operating mines today 3. Attractive valuation: leveraged cash flow, growth and exploration 3
Slide 4: Growth Through Project Development
GROWTH THROUGH PROJECT DEVELOPMENT 4.5 – 4.9 Gold equivalent production (mm oz.) 2.3 2.6 – 2.7 1.5 (1) (1) 2006 2010 2011e 2015e (1) Refer to endnote #1. 4
Slide 5: Kinross Today
KINROSS TODAY 5
Slide 6: Kinross Today
KINROSS TODAY • US$17 bn market capitalization* • 2.6 – 2.7 mm oz. Au eq. in 2011e growing to 4.5 – 4.9 mm oz. in 2015e(1) • Strong liquidity position: $1.9 bn cash on balance sheet • Proven developer in emerging gold districts * Market capitalization as of market close November 3, 2011. (1) Please
Slide 7: Focused in the World's Best Districts
FOCUSED IN THE WORLD’S BEST DISTRICTS Dvoinoye Kupol Fort Knox Kettle River-Buckhorn Round Mountain Tasiast Chirano Fruta del Norte Crixas Paracatu La Coipa Lobo-Marte Maricunga Cerro Casale 10 operating mines 5 development projects 7
Slide 8: Q3 2011 Results: Continuing to Deliver
Q3 2011 RESULTS: CONTINUING TO DELIVER • Continuing to deliver strong financial results Revenue Adjusted Operating Cash Adjusted Net Earnings(2) +45% Flow(2) +134% +82% $422 $273 $1,069 US$ millions $736 $232 $0.24/sh $0.37/sh $117 $0.30/sh $0.15/sh Q3 2010 Q3 2011 Q3 2010 Q3 2011 Q3 2010 Q3 2011 (2
Slide 9: Overall 2011 Outlook Confirmed
OVERALL 2011 OUTLOOK CONFIRMED(1) Production % of Total Production Cost of Sales(3) Region (000 ounces) Production ($/oz.) South America 945 – 980 36% $650 – $675 North America 625 – 645 24% $625 - $685 West Africa 440 – 480 18% $685 – $715 (attributable) Russia 555 – 575 22% $395 - $435 Gold equiva
Slide 10: Financial Strength & Discipline
FINANCIAL STRENGTH & DISCIPLINE • $1.2 bn line of credit • $1,231 mm of adjusted cash flow(2) in first nine months of 2011 MARKET CAP CASH AND CASH EQUIVALENTS ADJUSTED CASH FLOW(2) (US$ bn) (US$ mm) (US$ mm) $1,875 $1,564 $17 $3 $176 $98 2005 Now 2005 Now 2005 LTM (2) Please refer to endnote #2. “L
Slide 11: Delivering Expanding Margins
DELIVERING EXPANDING MARGINS 2005 – Q3 2011: $1,012 • Average realized gold price: +270% • Kinross’ attributable margin(5): +495% $873 $784 +495% $683 Attributable margin (US$/oz.) $530 $436 $329 $279 $170 2005 2006 2007 2008 2009 2010 Q1 Q2 Q3 2011 (5) Refer to endnote #5. 11
Slide 12: Staking Districts, Adding Resources, Improving Grade
STAKING DISTRICTS, ADDING RESOURCES, IMPROVING GRADE GOLD RESOURCES(6) 2P GOLD RESERVE EXPLORATION SPEND (mm oz.) GRADE(5) ($ mm) Proven & Probable Gold Reserves (g/t) Measured & Indicated Gold Resources Inferred Gold Resources +221% +41% 0.72 +992% $185 - $195 20.1 0.51 24.7 2.9 63.3 6.1 $17.4 24.7
Slide 13: Improving Grade Profile
IMPROVING GRADE PROFILE Barrick Goldcorp Newmont Kinross 1.5 Proven and Probable Gold Reserve Grade Growth 1.4 1.3 1.2 (2005 index = 1) 1.1 1.0 0.9 0.8 0.7 0.6 0.5 2005 2006 2007 2008 2009 2010 Source: Company reports 13
Slide 14: Transforming Kinross
TRANSFORMING KINROSS 14
Slide 15: Project Pipeline
PROJECT PIPELINE Project 2011E 2012E 2013E 2014E 2015E Organic growth Maricunga SART plant Paracatu 4th ball mill Dvoinoye Tasiast Development Lobo-Marte Fruta del Norte Cerro Casale Conceptual timeline based on current Company estimates. 15
Slide 16: Tasiast, Mauritania
TASIAST, MAURITANIA 16
Slide 17: Tasiast, Mauritania
TASIAST, MAURITANIA Greenstone Rocks • Expanded drilling program focused Banded Iron Fm around existing Tasiast mine Intrusives Felsic Volcanics Greenschist Tenements • Only 8 km of 80 km strike length tested Tasiast Shear 2010 Resource Shell • Mining license area: 312 km2 • Total exploration licens
Slide 18: Tasiast District
TASIAST DISTRICT • Regional soil geochemistry and drilling C67 • Highly prospective district, large scale mineral system • Drilling to focus on: Scoping full extent of mineralization encountered at district targets (C67, C69) Mining Mining License C69 Licenses Refer to Kinross’ news release dated
Slide 19: C67 Target: Tasiast District Exploration
C67 TARGET: TASIAST DISTRICT EXPLORATION C67 DRILL HOLE LOCATION PLAN OVERLYING GEOLOGY • Gold mineralization currently defined over 800 strike metres • Results continue to be strongly TA06410RC TA06403RC encouraging 37m @ 1.51 g/t Au 27m @2.93 g/t Au TA06402RC 50m @ 2.70 g/t Au and 21 m @ 4.94 g/t
Slide 20: Tasiast Deposit Long-Section
TASIAST DEPOSIT LONG-SECTION • Deep drilling at West Branch continues to identify extensions of greenschist- style mineralization * Coloured symbols represent grade (g/t Au) x thickness (metres) values illustrated in the GXM legend Refer to Kinross’ news release dated November 2, 2011 for the comple
Slide 21: Resource Growth at Tasiast
RESOURCE GROWTH AT TASIAST(6,8) +173% Gold resource ounces (millions) 4.6 8.6 5.1 9.1 1.9 2.1 1.3 1.4 0.8 9.2 9.3 6.5 7.6 7.6 5.4 3.7 Year-end November August September November Year-end June 2008 2009 2010 2010 2010 2010 2011 (Offer made) Proven and Probable Gold Reserves Measured & Indicated Gold
Slide 22: Tasiast, Mauritania
TASIAST, MAURITANIA • Expansion project on schedule: Feasibility study expected to be complete at the end of Q1/12 Construction expected to start mid-2012 Start-up of 60,000 tpd mill is targeted for mid-2014 • EIA for early works approved Early earthworks and concrete foundations for the mil
Slide 23: Fruta del Norte, Ecuador
FRUTA DEL NORTE, es | ECUADOR
Slide 24: Fruta del Norte, Ecuador
FRUTA DEL NORTE, ECUADOR • Prepared pre-feasibility study and technical report • Underground operation estimated 16-year mine life • LOM avg. production estimate : 410k Au eq. oz. / year • Phased commissioning: Plant expected to process 2,500 tpd initially UNDERGROUND MINE LAYOUT POX circuit add
Slide 25: Fruta del Norte, Ecuador
FRUTA DEL NORTE, ECUADOR • Development of the exploration decline is on target and expected to be complete in 2013 • Mine and plant EIAs submitted in October • Negotiations have progressed on exploitation agreement • Commenced negotiations on investment protection agreement • Feasibility study expec
Slide 26: Lobo-Marte, Chile
Lu _ x < = O aa) O —! KINROSS
Slide 27: Lobo-Marte, Chile
LOBO-MARTE, CHILE • Expected 47,000 tpd heap leach with SART plant • 10-year mine life with estimated production of 350k oz. / year • Drilling for feasibility study has been completed • Re-deploying drills to Valy and Marte Northwest targets • Project permitting on schedule • Feasibility study expec
Slide 28: Kupol – Dvoinoye, Russia
KUPOL —- DVOINOYE, RUSSIA == ea
Slide 29: Dvoinoye, Russia
DVOINOYE, RUSSIA • Underground mine with an expected 8-year mine life Expected avg. output of 900 tonnes per day (2013-2020) • Ore to be processed at the Kupol mill Throughput expected to increase to 4,000 tpd • Development of exploration decline advanced to 650 metres as of end of Q3 2011 • Adv
Slide 30: New Discovery at La Coipa, Chile
NEW DISCOVERY AT LA COIPA, CHILE 30
Slide 31: Pompeya: New Discovery at La Coipa
POMPEYA: NEW DISCOVERY AT LA COIPA • Significant gold and silver discovery • Located 3 km northeast of La Coipa mill Part of the CMLC JV property (75% Kinross) • Significant intersections include: DPMP-006: 58 m @ 1.15 g/t Au & 256 g/t Ag (6.99 g/t Au eq.) DPMP-015: 146 m @ 2.4 g/t Au & 95.2 g
Slide 32: Kinross Now
KINROSS NOW 32
Slide 33: RBC: P / NAV
RBC: P / NAV 1.3 1.2 1.2 1.2 1.1 0.9 GOLDCORP NEWMONT YAMANA BARRICK AGNICO KINROSS Source: RBC Capital Markets research – October 30, 2011 33
Slide 34: RBC: P / 2012e CFPS
RBC: P / 2012e CFPS 12.9 8.0 8.0 7.9 7.1 6.8 GOLDCORP NEWMONT YAMANA AGNICO BARRICK KINROSS Source: RBC Capital Markets research – October 30, 2011 34
Slide 35: Total Resource Ounces per $1,000 Invested
TOTAL RESOURCE OUNCES PER $1,000 INVESTED 6.5 Ounces of Total Gold Resources Acquired per $1,000 invested 5.4 4.9 4.9 3.9 3.8 (oz./$1,000) 2.6 2.5 0.6 KINROSS NEWCREST BARRICK AGNICO NEWMONT YAMANA RANDGOLD GOLDCORP GOLD ETF Source: Company reports and Bloomberg L.P. – November 3, 2011 35
Slide 36: 2011e Production per $1,000 Invested
2011e PRODUCTION PER $1,000 INVESTED 0.16 0.15 0.15 Ounces of Estimated 2011 Production per $1,000 invested 0.14 0.10 0.09 (oz./$1,000) 0.07 0.06 KINROSS NEWMONT BARRICK AGNICO NEWCREST YAMANA RANDGOLD GOLDCORP Source: Company reports and Bloomberg L.P. – November 3, 2011 36
Slide 37: Key Objectives
KEY OBJECTIVES ADVANCING OUR PROJECTS Complete Tasiast scoping study Complete Fruta Del Norte pre-feasibility Complete Dvoinoye scoping study Complete Lobo-Marte feasibility study Complete Fruta del Norte feasibility study OPTIMIZING THE ASSET BASE Declare NI 43-101 gold mineral re
Slide 38: Why Kinross?
WHY KINROSS? 1. Pure gold, high-growth senior producer 2. Robust operating cash flow from 10 operating mines today 3. Attractive valuation: leveraged cash flow, growth and exploration 38
Slide 39: Appendix
APPENDIX 39
Slide 40: Fort Knox, USA (100%)
FORT KNOX, USA (100%) • Located in Alaska • Expansion and new heap leach to extend mine life OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) YTD Q3 2011 219,035 $675 FY 2010 349,729 $550 2010 GOLD RESERVES AND RESOURCES(6) TONNES GRADE OUNCES (thousands) (g/t) (thousands) 2P Reserv
Slide 41: Round Mountain, USA (50%)
ROUND MOUNTAIN, USA (50%) • Kinross-operated JV with Barrick • Located in Nevada, USA • Open-pit mine OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) YTD Q3 2011 143,860 $728 FY 2010 184,554 $657 2010 GOLD RESERVES AND RESOURCES(6) TONNES GRADE OUNCES (thousands) (g/t) (thousands)
Slide 42: Kettle River-Buckhorn, USA (100%)
KETTLE RIVER-BUCKHORN, USA (100%) • Entered production in Q4/08 • Small foot-print, underground mine • Near-mine exploration targets OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) YTD Q3 2011 133,289 $412 FY 2010 198,810 $330 2010 GOLD RESERVES AND RESOURCES(6) TONNES GRADE OUNCES
Slide 43: Kupol, Russia (100%)
KUPOL, RUSSIA (100%) • Completed transaction increasing ownership to 100% from 75% on April 27, 2011 • 3,000 tpd mill with open-pit and underground OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) YTD Q3 2011 448,639 $360 FY 2010 554,008 $319 Kinross increased its ownership in the K
Slide 44: Paracatu, Brazil (100%)
PARACATU, BRAZIL (100%) • Plant 2 expansions: 3rd ball mill commissioned in Q2 2011 4th ball mill expected to be operational in Q3 2012 OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) YTD Q3 2011 335,419 $715 FY 2010 482,397 $535 2010 GOLD RESERVES AND RESOURCES(6) TONNES GRADE
Slide 45: Crixas, Brazil (50%)
CRIXAS, BRAZIL (50%) • JV with AngloGold Ashanti • Underground mine located in the Brazil OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) YTD Q3 2011 45,802 $841 FY 2010 74,777 $486 2010 GOLD RESERVES AND RESOURCES(6) TONNES GRADE OUNCES (thousands) (g/t) (thousands) 2P Reserves 3,
Slide 46: La Coipa, Chile (100%)
LA COIPA, CHILE (100%) • Gold/silver mine in the Maricunga district • Comprehensive exploration program • Recent discovery at Pompeya (75% Kinross), located 3 km from mill OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) YTD Q3 2011 143,852 $708 FY 2010 196,330 $648 2010 GOLD RESERV
Slide 47: Maricunga, Chile (100%)
MARICUNGA, CHILE (100%) • Located the highly prospective Maricunga District • Open pit, heap leach operation OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) YTD Q3 2011 181,968 $468 FY 2010 156,590 $746 2010 GOLD RESERVES AND RESOURCES(6) TONNES GRADE OUNCES (thousands) (g/t) (thou
Slide 48: Tasiast, Mauritania (100%)
TASIAST, MAURITANIA (100%) • Open-pit mine ~300 km north of the city of Nouakchott • Remote, flat, sparsely populated desert OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) YTD Q3 2011 145,745 $691 FY 2010 56,611 $755 2010 production and costs for Tasiast reflect Kinross’ ownership
Slide 49: Chirano, Ghana (90%)
CHIRANO, GHANA (90%) • 90% owned by Kinross; Government of Ghana holds a 10% carried interest • 9 open-pits and 2 recently-discovered underground deposits OPERATING RESULTS (90%) PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) YTD Q3 2011 169,476 $702 FY 2010 80,298 $610 Production and costs for Chi
Slide 50: Supplemental Information
SUPPLEMENTAL INFORMATION 50
Slide 51: Growing Cash Flow per Share
GROWING CASH FLOW PER SHARE • 5-yr CAGR : 21% $1.36 $1.32 Adjusted Cash Flow per Share (US$)(2) $1.08 $1.01 $0.80 $0.56 $0.51 2005 2006 2007 2008 2009 2010 First 9 months of 2011 (2) Refer to endnote #2. 51
Slide 52: Increasing Gold Resources
INCREASING GOLD RESOURCES(6) 110 Inferred Gold Resources 140 Measured & Indicated Gold Resources 100 Proven and Probable Gold Reserves 20.1 120 Total gold resource ounce per 1,000 shares 24.0 90 Gold resource oz per 1,000 shares 80 100 Gold resources (mm oz.) 16.2 24.7 70 17.7 20.7 7.0 80 60 16.6 11
Slide 53: Track Record of Reserve Growth
TRACK RECORD OF RESERVE GROWTH(6) Proven and Probable Gold Reserves (mm oz.) 31.5 63.3 33.8 11.9 19.4 9.5 2004 Mined Divested Acquired Exploration and Kinross Today Development (6) Please refer to endnote #6. 53
Slide 54: Leading Development in New Regions
LEADING DEVELOPMENT IN NEW REGIONS • FIRST North American gold mining company to develop a major mine in Russia • LARGEST precious metals producer in Brazil and Chile • PIONEERING development in Washington State and Alaska • ESTABLISHED and expanding government relations and corporate social respons
Slide 55: Gold Production from New Projects
GOLD PRODUCTION FROM NEW PROJECTS +1.3(i) Estimated average annual gold production (mm oz) +0.41(ii) +0.35(ii) Tasiast Expansion Fruta del Norte Lobo-Marte (i) Does not include current Tasiast production; estimated average annual production for first full 8 years (ii) Estimated average annual life o
Slide 56: Mauritania: Key Facts
MAURITANIA: KEY FACTS • Among most sparsely-populated countries Tasiast (Kinross) - Au Askaf (Xstrata) – Iron Ore • Gained independence from France in 1960 Guelb el Aouj (Xstrata) – Iron Ore Lebtheinia (Xstrata) – Iron Ore • Islamic state and democratic republic President Aziz elected in July 2009
Slide 57: Increasing Kupol Ownership to 100%
INCREASING KUPOL OWNERSHIP TO 100% • Kinross increased Kupol ownership to 100% in 2011 Includes the Kupol East-West exploration licenses • Total consideration: approx. $350 million Financed through proceeds of Harry Winston share sale and non-recourse debt facility of $200 million • Consolidates
Slide 58: $1 bn Three-Tranche Debt Offering
$1 BN THREE-TRANCHE DEBT OFFERING • Kinross inaugural US bond issuance • Weighted average cost of capital: 5.28% $500 US$ millions $250 $250 5-YEAR 10-YEAR 30-YEAR 58
Slide 59: Endnotes
ENDNOTES 1) “e” indicates an expectation. For more information regarding Kinross production and cost forecast for 2011, please refer to the press release dated November 2, 2011, available on our website at www.kinross.com. For more information regarding Kinross’ production target for 2015, please re
Slide 60: Kinross Gold Corporation
KINROSS GOLD CORPORATION 25 YORK STREET, 17TH FLOOR TORONTO, ON M5J 2V5 WWW.KINROSS.COM 60
Kinross Gold — RBC Capital Markets Gold Conference 2011 on 6ix