Kinross Gold Corporation · TSX:K
Kinross Gold — Q1 2020 Earnings Presentation
22 slides from Kinross Gold's earnings presentation, May 6, 2020
Slide 1: First Quarter 2020 Results
First Quarter 2020 Results May 6, 2020 Delivering Value. Kinross Gold Corporation
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 and responses to questions, including but not limited to any information as to the future performance of Kinross
Slide 3: COVID-19 Response
COVID-19 Response 3
Slide 4: COVID-19: First Quarter Impact
First Quarter 2020 May 6, 2020 COVID-19: First Quarter Impact Round Bald Kupol/ Fort Knox Paracatu Tasiast Chirano Mountain Mountain Dvoinoye Mine Operating Gold Sales/ Shipments Adequate Supply Level No material disruption No material disruption, but workarounds employed 4
Slide 5: Operational Highlights
First Quarter 2020 May 6, 2020 Operational Highlights Three largest producing mines – Paracatu, Kupol-Dvoinoye and Tasiast – delivered 62% of first quarter production at average cost of sales of $642/oz(1,2) Paracatu, Kupol-Dvoinoye, Tasiast, Brazil Russia Mauritania Largest producer in Strongest ca
Slide 6: Financial Highlights
First Quarter 2020 May 6, 2020 Financial Highlights Favourable gold prices, energy costs and foreign exchange • Increased cash position to ~$1.1 billion and maintained overall liquidity of ~$1.9 billion • Portfolio of mines generated April 1 Estimate Q1 2020 Actual strong free cash flow Production ~
Slide 7: Financial Results
<> Financial Results KINROSS
Slide 8: First Quarter Financial Highlights
First Quarter 2020 May 6, 2020 First Quarter Financial Highlights Produced approximately 567,000 attributable gold equivalent ounces, at an average cost of sales of $754/oz(1,2) and an all-in sustaining cost of $993/oz(1,2) Year-over-year improvements First quarter performance 81% Adjusted operating
Slide 9: Cash Flow Inputs
First Quarter 2020 May 6, 2020 Cash Flow Inputs Notwithstanding COVID-19 challenges, key cash flow drivers are currently supportive of our business 2020 Budget Spot(i) Gold $1,200/oz $1,704/oz Russian Rouble 60 74 Brazilian Real 3.50 5.56 Oil $65/bbl $25/bbl (i) As of market close May 5, 2020 (Sourc
Slide 10: Strong Liquidity Position
First Quarter 2020 May 6, 2020 Strong Liquidity Position Strong financial position to fund operations and development projects Financial Flexibility Liquidity Position ($ billion) • Net debt to EBITDA remains strong at 0.9x • Moody’s upgraded credit rating to investment grade As at March 31, 2020 •
Slide 11: Operating Results
Operating Results 11
Slide 12: COVID-19 Response
First Quarter 2020 May 6, 2020 COVID-19 Response Kinross has implemented new protocols across our operations to prevent and mitigate risk associated with COVID-19 Risk Mitigation Plan Implemented Maintaining high standard of health and safety, our first priority Reviewed all key consumables and
Slide 13: Increased Life of Mine Production at Paracatu
First Quarter 2020 May 6, 2020 Increased Life of Mine Production at Paracatu New technical report highlights benefits of the optimization project • Largest producer in the portfolio • Cash costs lower quarter-over-quarter due to cost-reduction strategy, improved productivity and favourable foreign e
Slide 14: Consistent Performance from Kupol-Dvoinoye
First Quarter 2020 May 6, 2020 Consistent Performance from Kupol-Dvoinoye Kupol-Dvoinoye delivered consistent results within our original expectations • Highest cash-flowing asset in the quarter • Second-largest producer in the portfolio • Production impacted by lower grades o Expected to return to
Slide 15: Evaluating Potential at Chulbatkan
First Quarter 2020 May 6, 2020 Evaluating Potential at Chulbatkan High-quality project with strong base case and significant upside potential • Near-surface, heap-leachable deposit; initial resource estimate of approximately 4 million oz.(3) • Highly continuous mineralization that is open along stri
Slide 16: Record Performance at Tasiast
First Quarter 2020 May 6, 2020 Record Performance at Tasiast Record production and throughput in Q1 as the 24k Project advances • Second consecutive quarter of record production and throughput Tasiast quarterly performance 120 $700 • Lowest-cost producer in the portfolio Production cost of sales (Au
Slide 17: Additional Portfolio Highlights
First Quarter 2020 May 6, 2020 Additional Portfolio Highlights Round Mountain, Nevada Fort Knox, Alaska Bald Mountain, Nevada Chirano, Ghana 17
Slide 18: Chile Projects
First Quarter 2020 May 6, 2020 Chile Projects La Coipa Restart work commenced; Lobo-Marte study on schedule La Coipa Restart • Work commenced after receiving Board approval in Q1 • Transfer of mining fleet from Maricunga now complete • COVID-19 impacted movement of people in-country; first productio
Slide 19: COVID-19 Global Response
First Quarter 2020 May 6, 2020 COVID-19 Global Response Working with our employees, local communities and the countries in which we operate to help mitigate the adverse impacts of COVID-19 19
Slide 20: Kinross Value Proposition
Kinross Value Proposition Operational Excellence Financial Strength & Flexibility Diverse portfolio of mines consistently meeting Maintaining a strong balance sheet continues to or outperforming operational targets be a priority objective Available liquidity of ~$1.9 billion, 8 Consecutive Met or ex
Slide 21: Endnotes
First Quarter 2020 May 6, 2020 Endnotes 1. Unless otherwise noted, gold equivalent production, gold equivalent ounces sold and production cost of sales figures in this presentation are based on Kinross’ 90% share of Chirano production and sales. Also unless otherwise noted, dollar per ounce ($/oz.)
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