Kinross Gold Corporation · TSX:K
Kinross Gold — Q2 2021 Earnings Presentation
23 slides from Kinross Gold's earnings presentation, Jul 29, 2021
Slide 1: Second Quarter 2021 Results
Second Quarter 2021 Results July 29, 2021 Delivering Value. Kinross Gold Corporation
Slide 2: Cautionary Statement on Forward-Looking Information
Second Quarter 2021 July 29, 2021 Cautionary Statement on Forward-Looking Information All statements, other than statements of historical fact, contained or incorporated by reference in or made in this presentation, including but not limited to any information as to the future performance of Kinross
Slide 3: Managing Through the Pandemic
Managing Through the Pandemic Safety remains our First Priority Maintaining COVID-19 protocols at sites to continue protecting employees Seeing signs of a return to normal Travel restrictions easing globally 3
Slide 4: Compelling Outlook
Compelling Outlook Expect Tasiast mill to be running before year-end Repair costs not expected to exceed $35 million De-risking Tasiast production in 2022, 2023 and 2024 Signed final agreement with Government of Mauritania 4
Slide 5: Increasing Capital Returns
Increasing Capital Returns Reaffirming expected 300 production growth to 250 Estimated $ Millions over 2.9Mozs in 2023 Next Twelve Months 200 Maintaining 150 quarterly dividend 100 50 Target to double capital returns through 0 buyback program Dividend Buyback 5
Slide 6: Second Quarter Updates
Second Quarter Updates Updated cost guidance Margins still well ahead of budget Completed scoping study at Manh Choh Published 2020 Sustainability Report 6
Slide 7: Financial Results
Financial Results 7
Slide 8: Financial Highlights
Second Quarter 2021 July 29, 2021 Financial Highlights Generated strong free cash flow and robust margins Quarter highlights Quarter results Attributable margin(1,2,3) Production 538,091 54% (per Au eq. oz. sold) (Attributable Au eq. oz.)(1) Cost of Sales $830 (per Au eq. oz. sold)(1,2) 142% Free ca
Slide 9: Strong Liquidity and Financial Flexibility
Second Quarter 2021 July 29, 2021 Strong Liquidity and Financial Flexibility Liquidity Position Financial Flexibility • Available liquidity of ~$2.2 billion, including $676 million of cash • Very manageable leverage with low net debt to EBITDA As at June 30, 2021 • Repaid $500 million of senior note
Slide 10: Updated Outlook
Second Quarter 2021 July 29, 2021 Updated Outlook Reiterating revised 2021 production guidance and updating costs Original 2021 First Half Revised 2021 Guidance Results Guidance (+/-5%) (+/- 5%) Gold equivalent production 2.4 million 1.1 million 2.1 million(i) (oz.)(1) Production cost of sales (per
Slide 11: Operating Results
Operating Results 11
Slide 12: COVID-19 Update
Second Quarter 2021 July 29, 2021 COVID-19 Update Prioritizing the health and safety of employees and host communities Most operations returning to normal COVID-19 restrictions are lifting, but precautionary measures remain in place Operations have performed well thanks to employees, communities and
Slide 13: Tasiast
Second Quarter 2021 July 29, 2021 Tasiast Mill is in good working condition; 24k project on track • Mill has turned using the gearless motor drive • Confident the motor, bearings and mill shell are in good shape • Expect production to resume in Q4 2021 • Repair costs now expected to be up to $35 mil
Slide 14: Paracatu
Second Quarter 2021 July 29, 2021 Paracatu Strong first half results from our largest mine • Production increased by 24koz. over Q1 2021 • Cash costs compared to Q1 2021 were impacted by: o Higher maintenance costs o Inflationary pressures o Higher power costs, partially offset by contribution from
Slide 15: Kupol-Dvoinoye
Second Quarter 2021 July 29, 2021 Kupol-Dvoinoye Another solid quarter from Russia • Results largely in-line with Q1 2021 as transition to narrower vein mining progresses as planned • Slightly lower grades quarter-over- quarter and year-over-year are expected to persist through the year due to: o Pl
Slide 16: Round Mountain
Second Quarter 2021 July 29, 2021 Round Mountain Implementation of the revised mine plan is proceeding well; Q2 production in-line with revised forecasts • Waste pile relocation continued during Q2; expected to be complete in August o Historic waste pile proved to be mineralized and should ultimatel
Slide 17: Additional Portfolio Highlights
Second Quarter 2021 July 29, 2021 Additional Portfolio Highlights Fort Knox Bald Mountain Chirano Production increased over Ore processed improved in Q1 2021 due to more ounces Good performance through June after mining through recovered from new Barnes H1 2021 carbonaceous material Creek heap leach
Slide 18: Fort Knox – Manh Choh (70%)
Second Quarter 2021 July 29, 2021 Fort Knox – Manh Choh (70%) Scoping study confirmed project as low-risk, low-cost, high-return addition to Fort Knox • Development plan 2020 Manh Choh Gold Resource Estimates(i) contemplates trucking ore to Tonnes Grade Ounces the Fort Knox mill for crushing (thousa
Slide 19: Projects Update
Second Quarter 2021 July 29, 2021 Projects Update • Located ~13km east of Fort Knox Gil Satellites • Development work proceeding well • On track for first production in Q4 2021 • Project on budget and on schedule for first production in mid-2022 La Coipa • Fleet refurbishments are complete • Pre-str
Slide 20: Exploration Highlights
Second Quarter 2021 July 29, 2021 Exploration Highlights Mid-year update on our exciting exploration opportunities Kupol Chirano Chulbatkan Russia Ghana Russia Round Mountain Phase X Curlew Nevada, USA Washington, USA 20
Slide 21: Kinross Investment Case
Kinross Investment Case Operational Excellence Financial Strength & Flexibility Diverse portfolio of mines, long track record Maintaining a strong balance sheet continues to for meeting guidance be a priority objective 9 Available liquidity of ~$2.2 billion Met or exceeded Attractive net debt to EBI
Slide 22: Endnotes
Second Quarter 2021 July 29, 2021 Endnotes 1. Unless otherwise noted, gold equivalent production, gold equivalent ounces sold, production cost of sales, all-in sustaining cost figures and attributable margin in this presentation are based on Kinross’ 90% share of Chirano production and costs and 70%
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