Kinross Gold Corporation · TSX:K
Kinross Gold — Denver Gold Forum 2005
33 slides from Kinross Gold's conference presentation, September 2005
Slide 1: Driving Value Growth
Driving Value Growth Denver Gold Conference Kinross Gold Corporation Corporate Overview September 2005
Slide 2: Legal Notice
Legal Notice 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 results, performan
Slide 3: Kinross: A Major Gold Producer
Kinross: A Major Gold Producer • 2005 estimated: • Gold production of 1.6 million ounces • Total cash costs $260 to $270 per ounce • ~4,000 employees in 6 countries • Straight-forward balance sheet • Simple debt structure • No gold hedging • Continuing reserve growth • 19.4 million ounces at Dec. 31
Slide 4: Kinross Success Factors
Kinross Success Factors • Exceptional EH&S record • Experienced and driven management/ops teams • Excellent spread of geopolitical risk: focus in Americas • Strong portfolio of assets and JVs to work with • Modern, high-capacity production base • Building pipeline of development projects and explora
Slide 5: Global Reach; Americas Focus
Global Reach; Americas Focus Kubaka (98.1%) Fort Knox (100%) Magadan, Russia (Open Pit, U/G) Alaska, USA (Open Pit) Musselwhite (32%) Ontario, Canada (U/G) Porcupine (49%) Kettle River (100%) Ontario, Canada (Open Pit, U/G) Washington, USA (U/G) Round Mountain (50%) Nevada, USA (Open Pit) La Coipa (
Slide 6: Balanced Geopolitical Risk 2004 Reserves
Balanced Geopolitical Risk 2004 RESERVES 17% 23% 46% 11% 3% US Canada Brazil Chile Other 19.4 million ounces of gold at Dec. 31, 2004, an increase of 47% over 2002 Reserves located in politically stable countries 6
Slide 7: Kinross Production Has Grown
Kinross Production Has Grown 2,500 2,000 equivalent production 000's ounces gold 1,500 1,000 500 0 93 94 00 95 96 97 98 99 01 02 03 E E E E E 07 08 04 05 06 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 Formation Nerco Falconbridge Macassa AMAX Echo Bay / TVX Crown New Paracatu Growth organically
Slide 8: Balanced Geopolitical Risk 2005 Production
Balanced Geopolitical Risk 2005 PRODUCTION 15% 16% 48% 13% 8% US Canada Brazil Chile Other 63% of production is North American based 65% of costs are US dollar based Large U.S. base offers security, lowers foreign exchange risk 8
Slide 9: Growing Cash Margins
Growing Cash Margins 500 1.8 450 1.6 400 Avg. Realized Gold Price 1.4 Ounces of Production (millions) 350 1.2 300 1.0 Total Cash Costs US$ 250 0.8 200 0.6 150 0.4 100 50 0.2 - - 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005e Gold Equivalent Production Average Realized Gold Price T
Slide 10: Growing Cash Margins
Growing Cash Margins 180 160 140 120 100 Increasing 80 cash 60 margin 40 20 - 2000 2001 2002 2003 2004 2005e 500 1.8 450 1.6 Ounces of Production (millions) 400 1.4 350 1.2 300 1.0 US$ 250 0.8 200 0.6 150 100 0.4 50 0.2 - - 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005e Gold Equiv
Slide 11: Paracatu, Brazil (100%)
Paracatu, Brazil (100%) 11
Slide 12: Round Mountain, USA (50%, operator)
Round Mountain, USA (50%, operator) 12
Slide 13: Fort Knox, USA (100%)
Fort Knox, USA (100%) 13
Slide 14: Fort Knox, USA (100%)
Fort Knox, USA (100%) 14
Slide 15: La Coipa, Chile (50%)
La Coipa, Chile (50%) 15
Slide 16: Crixas, Brazil (50%)
Crixas, Brazil (50%) 16
Slide 17: Highly Liquid, Value Stock
Highly Liquid, Value Stock (source: Merrill Lynch reports) 40 35 GLG 30 MDG 25 P/CF 20 BVN ABX PDG GG 15 AU NEM 10 HMY 5 KGC 0 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% Daily Liquidity % of float 17
Slide 18: Current Initiatives
Current Initiatives ¬ Immediate Action List ¬ Building Blocks ¬ Strategy Going Forward 18
Slide 19: Kinross Driving Forward
Kinross Driving Forward • Continue with strong EH&S component • Exit non-core assets • Capital programs at Core Operations • Operational “Building Blocks” optimized • Focus on quality mines, Kinross as operator • Continuous cost control and gross margin focus • Metrics: NAV / margin per ounce / CF p
Slide 20: Exploration Priorities
Exploration Priorities High Priority Medium Priority Low Priority 20
Slide 21: Opportunity Pipeline
Opportunity Pipeline Exploration Pre-feasibility Feasibility Construction Production Refugio Pamour Puren Round Mtn Exp. Gurupi Gold Hill Paracatu Exp. Pancho Exp. Round Mtn. U/G Measured & Indicated Resources Proven & Probable Reserves Progress Jan. 04 to Sept. 05 Oroch Pending Acquisition Pantanil
Slide 22: Refugio, Chile (50%, operator)
Refugio, Chile (50%, operator) 22
Slide 23: Refugio, Chile – Pancho (50%, operator)
Refugio, Chile – Pancho (50%, operator) 23
Slide 24: Round Mountain, USA (50%, operator)
Round Mountain, USA (50%, operator) 24
Slide 25: Round Mountain, USA (50%, operator)
Round Mountain, USA (50%, operator) 25
Slide 26: Paracatu, Brazil (100%)
( } SEGURANCA FAZ SENTIDO = ——~- ~ >
Slide 27: Continued Reserve Growth
Continued Reserve Growth 20 4.3 19.4 16 2.9 2.7 14.1 (1.9) (1.8) Millions of ounces 13.2 12 8 4 0 31-Dec-02 Depletion Reserve 31-Dec-03 Depletion Reserve Acquisitions 31-Dec-04 @ $300 Additions @ $325 Additions @ $350 27
Slide 28: Paracatu Exploration
Paracatu Exploration 298,000E 300,000E 302,000E Mineral Rights and 8,100,000N Surface Access Area Brazil $400 Paracatu Scoping RPM Mine Pit Crest Plant Rio de Janeiro Active Toe Mining Lease 8,098,000N Mine grade ore Dec.04 Low grade ore Section 10200N Pit Outline Old drill hole 2004 drill hole Phas
Slide 29: Paracatu Mine, Cross Section
Paracatu Mine, Cross Section Existing drill hole Phase B completed drill hole Phase C planned drill hole Metasiltstone Laterite Reserve mineralization Potential mineralization Visible mineralization 10,200N West Rico Creek, Looking North 7,500E 8,000E 8,500E Surface 0.59g/t Au / 111m WCR-706 0.50g/t
Slide 30: Strategic Focus
Strategic Focus • Focus on large core assets • Focus on the best people • Focus on selected countries • Focus on Kinross-operated assets • Focus on increased exploration spend and JVs 30
Slide 31: Bullish On Gold
Bullish On Gold 1.80 1.60 U.S. India 1.40 Canada 1.20 Europe 1.00 Australia 0.80 South Africa 0.60 Apr-02 Apr-03 Apr-04 Apr-05 Jul-02 Oct-02 Jul-03 Oct-03 Jul-04 Oct-04 Jul-05 Jan-02 Jan-03 Jan-04 Jan-05 US$ weakness, Supply/Demand Fundamentals 31
Slide 32: Kinross Driving Forward
Kinross Driving Forward Disciplined capital and Growth from the core attention for assets that contribute value to Kinross Location, location… Asset portfolio in secure countries Strong management team; Management strength excellence in operations and EH&S Proven transactional Corporate transactions
Slide 33: Kinross Gold Corporation
Shares outstanding: 345.3 million Market cap.: US$2.5 billion (at Sept. 22, 2005) KGC: NYSE (Common shares) K: TSX (Common shares) K.U: TSX (US dollar trading symbol) K.WT: TSX (Warrants expiring 05/12/07) Kinross Gold Corporation 40 King Street West, 52nd Floor Scotia Plaza Toronto, ON M5H 3Y2 416-