Kinross Gold Corporation · TSX:K

Kinross Gold — Scotia Capital Latin America 2011 Mining Conference

46 slides from Kinross Gold's conference presentation, Jun 8, 2011

  1. Slide 1: Delivering Disciplined Growth

    DELIVERING DISCIPLINED GROWTH SCOTIA CAPITAL LATIN AMERICA 2011 MINING CONFERECE 1 JUNE 7 – 8, 2011

  2. 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

  3. Slide 3: Why Gold? Why Kinross? Why Now?

    WHY GOLD? WHY KINROSS? WHY NOW? 3

  4. Slide 4: Industry Production Declining

    INDUSTRY PRODUCTION DECLINING • Forecasted world production from gold mining likely to decline 2,800 2,700 s) uction (Tonnes 2 600 2,600 2,500 Gold Produ 2,400 2,300 2,200 2,100 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: GFMS 10 Year Outlook on Gold (December 2010) 4

  5. Slide 5: Increasing Demand for Gold

    INCREASING DEMAND FOR GOLD $225 $1,520 Investment / Other Total Fabrication $200 Gold Price (US$/oz) $1,320 Current gold price $175 $1,120 $150 and (US$ billions) oz.) $920 d Price (US$/o $125 $720 $100 Gold Tottal Gold Dema $520 $75 $320 $50 $25 $120 $0 -$80 1999 2000 2001 2002 2003 2004 2005 2006

  6. Slide 6: Why Kinross?

    WHY GOLD? WHY KINROSS? WHY NOW? 6

  7. Slide 7: Why Kinross?

    WHY KINROSS? 1. Industry-leading growth from a senior gold producer 2. World-class projects with experienced teams and financial resources to build them 3 3. Attractive valuation 7

  8. Slide 8: Continuing the Kinross Transformation

    CONTINUING THE KINROSS TRANSFORMATION Kinross Gold Production Yesterday Kinross Gold Production Now(1) 4.5 – 4.9 ction (mm oz) on (mm oz) Gold equivalent produc Gold equivallent productio 2.3 2.6 – 2.7 16 1.6 2005 2010 2011e 2015e (revised upwards) (1) Refer to endnote #1. 8

  9. Slide 9: 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 9

  10. Slide 10: Delivering Expanding Margins

    DELIVERING EXPANDING MARGINS 2005 – Q1 2011: $784 • Average realized gold price: +198% • Kinross’ attributable margin(2,3): +361% $683 +361% butable margin ($ per ounce) $530 $436 $329 $279 Attrib $170 2005 2006 2007 2008 2009 2010 Q1 2011 (2) Refer to endnote #2. (3) Refer to endnote #3. 10

  11. Slide 11: Growing Cash Flow per Share

    GROWING CASH FLOW PER SHARE • 5-yr CAGR : 21% $1.36 $1.32 w per Share (US$)(4) $1.01 $0.80 Adjustted Cash Flow $0.56 $0.51 $0.35 2005 2006 2007 2008 2009 2010 Q1 2011 (3) Refer to endnote #3. 11

  12. Slide 12: Strong Balance Sheet

    STRONG BALANCE SHEET • Cash on hand at March 31, 2011: $1.6 bn • Equity pipeline investment portfolio valued at $113 $113.4 4 mm As at March 31, 2011 $1,561 US$ millions $591 $470 Cash and cash equivalents Long-term investments & Total debt investments in associates 12

  13. Slide 13: Increasing Gold Resources

    INCREASING GOLD RESOURCES 110 Inferred Resources 140 Measured & Indicated Resources 100 Proven and Probable Reserves 120 T t l resource ounce per 1,000 Total 1 000 shares h 24 0 24.0 90 00 shares 80 100 esources (mm oz.)(5) 16.2 70 17.7 20.7 Gold resource oz per 1,00 7.0 80 60 16.6 11.1 13.7 50 60 G

  14. Slide 14: Project Pipeline

    PROJECT PIPELINE Project 2011 2012 2013 2014 2015 Paracatu a aca u desu desulphurization p u a o nic growth Paracatu 3rd ball mill Maricunga SART plant Organ Paracatu 4th ball mill Dvoinoye Tasiast ent Lobo Marte Lobo-Marte Developme Fruta del Norte Cerro Casale Conceptual timeline based on current

  15. Slide 15: Advancing Our Projects

    ADVANCING OUR PROJECTS Tasiast Fruta del Norte Dvoinoye Lobo-Marte • 26 drill rigs active • Commenced • Drilling ahead of schedule • 70% of 20,000 m drill • 135,000 metres drilled construction of the program to be completed YTD portal highwall • Three rigs operational; by end of May fourth en route

  16. Slide 16: Kinross in South America

    KINROSS IN SOUTH AMERICA 16

  17. Slide 17: Kinross in South America

    KINROSS IN SOUTH AMERICA • Cornerstone region for Kinross with long operating historyy  Began operating in region in1998  4 operating mines producing approx. 1.0 – 1.07 mm oz(1)  Approx. pp 39% of 2011 p production • Excellent growth potential  3 major development projects  At-site expansion an

  18. Slide 18: Substantial Production Base

    SUBSTANTIAL PRODUCTION BASE • Production from South America increases reflect portfolio upgrades and start-up p of the Paracatu expansion p Production from South American operations 1,200 Paracatu Crixas La Coipa Maricunga 1,000 – 1,070 uivalent production (thousand ouncces) 1 000 1,000 800 600 400

  19. Slide 19: Significant % of Gold Resources

    SIGNIFICANT % OF GOLD RESOURCES(5) • Majority of Kinross’ reserve and resource base located in South America • Stable platform for growth in region where Kinross has track record & expertise Proven & Probable Reserves Measured & Indicated Resources Inferred Resources 62 4 mm oz 62.4 17.7 mm oz 24.0

  20. Slide 20: South American Project Pipeline

    SOUTH AMERICAN PROJECT PIPELINE Maricunga Paracatu Fruta del Norte Lobo-Marte Process enhancements At-site expansion New development New development • ADR plant completed • Pre-commissioning of • Commenced • 70% of 20,000 m drill ahead of schedule the 3rd ball mill began in construction of the progr

  21. Slide 21: Paracatu, Brazil

    PARACATU PARACATU, PARACATU BRAZIL 21

  22. Slide 22: Paracatu, Brazil

    PARACATU, BRAZIL • Low-grade mine with long mine life  18 mm oz of 2P reserves  3.4 mm oz of M&I  30+ year mine life • First phase expansion started up in 2009  New crushing and processing plant • 3rd and 4th ball mill additions expected to sustain t i th throughput h t att 41 mtpa t as hharder

  23. Slide 23: Paracatu: At-Site Expansions

    PARACATU: AT-SITE EXPANSIONS 3rd Ball Mill • Installing I t lli 3rd3db ballll mill ill tto iincrease th throughput h t • Mill commissioned and is now processing ore Desulphurization circuit • To reduce sulphur content in tailings and increase Plant 2 recoveries • Expected to be operational Q3 2011 4

  24. Slide 24: Fruta del Norte, Ecuador

    FRUTA DEL NORTE, NORTE ECUADOR 24

  25. Slide 25: 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  Expected avg. gold grade of 8.07 g/t  Expected avg. gold recovery of 93% • LOM avg. cost of sales expected to

  26. Slide 26: Fruta del Norte, Ecuador

    FRUTA DEL NORTE, ECUADOR • Advancing the exploration decline:  Proceeding g with underground g ramp p  Plan to develop 600 m of decline by year-end  Expected completion in Q1 2013 • Advancing Ad i permitting: itti  Expect to submit EIAs for mine and plant operations to the Ministry of Environmen

  27. Slide 27: Lobo-Marte, Chile

    LOBO-MARTE, LOBO-MARTE CHILE 27

  28. Slide 28: Lobo-Marte, Chile

    LOBO-MARTE, CHILE • Completed pre-feasibility study update • 10 10-year year mine life • Expected 47,000 tpd heap leach with SART plant • Annual production estimate: 350k oz. per year  Expected avg avg. grade: 1.17 1 17 g/t  Expected avg. recovery: 60-70% • Cost of sales estimate: ~$500/oz; Lobo F

  29. Slide 29: Lobo-Marte, Chile

    LOBO-MARTE, CHILE • 20,000 m drill campaign 70% complete  Geotechnical drilling has been completed  Geotechnical and mine block models expected to be completed in Q3 2011 • Exploration E l ti d drilling illi att V Valy l PProspectt  Located 3 km south of Lobo deposit  Geological and drill explor

  30. Slide 30: Growth Through Exploration

    GROWTH THROUGH EXPLORATION La Coipa • Drilling in 2010 focused on the Can Can and Portezuelo targets to upgrade resources classification • Following up on encouraging results encountered at Puren West and Pompeya Fruta del Norte • Restarted exploration on concessions outside of FDN project area in 2

  31. Slide 31: Why Now?

    WHY GOLD? WHY KINROSS? WHY NOW? 31

  32. Slide 32: Key Objectives for 2011

    KEY OBJECTIVES FOR 2011   Complete Tasiast scoping study   Declare NI 43-101 resource at Dvoinoye y  Complete FDN pre-feasibility study    Complete Dvoinoye scoping study   Complete purchase of Kupol minority interest  Commence construction on La Zarza exploration decline at Fruta del Nor

  33. Slide 33: Why Kinross?

    WHY KINROSS? 1. Industry-leading growth from a senior gold producer 2. World-class projects with experienced teams and financial resources to build them 3 3. Attractive valuation 33

  34. Slide 34: Appendix

    APPENDIX 34

  35. Slide 35: Fort Knox, USA (100%)

    FORT KNOX, USA (100%) • Located in Alaska • Expansion E i and d new h heap lleach h tto extend mine life OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz) ($/oz) Q1 2011 65,047 $628 Q1 2010 69,640 $517 2010 GOLD RESERVES AND RESOURCES(5) TONNES GRADE OUNCES (thousands) (g/t) (thousands) 2P Re

  36. Slide 36: Round Mountain, USA (50%)

    ROUND MOUNTAIN, USA (50%) • Kinross-operated JV with Barrick • L Located t d iin N Nevada, d USA • Open-pit mine OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz) ($/oz) Q1 2011 42,121 $792 Q1 2010 45,629 $578 2010 GOLD RESERVES AND RESOURCES(5) TONNES GRADE OUNCES (thousands) (g/t) (thousand

  37. Slide 37: Kettle River-Buckhorn, USA (100%)

    KETTLE RIVER-BUCKHORN, USA (100%) • Entered production in Q4/08 • S ll ffoot-print, Small t i t underground d d mine i • Near-mine exploration targets OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz) ($/oz) Q1 2011 45 852 45,852 $375 Q1 2010 48,405 $280 2010 GOLD RESERVES AND RESOURCES(5) TO

  38. Slide 38: 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 • Mill to process high-grade ore from nearby Dvoinoye deposit OPERATING RESULTS (75%) PRODUCTION PRODUCTION COST (Au eq. oz) ($/oz) Q1 2011 154 257 154,

  39. Slide 39: Paracatu, Brazil (100%)

    PARACATU, BRAZIL (100%) • Recoveries near target • M j expansion Major i commissioning i i i • Adding 3rd and 4th ball mills OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz) ($/oz) Q1 2011 100 427 100,427 $690 Q1 2010 117,473 $555 2010 GOLD RESERVES AND RESOURCES(5) TONNES GRADE OUNCES (thou

  40. Slide 40: Crixas, Brazil (50%)

    CRIXAS, BRAZIL (50%) • JV with AngloGold Ashanti • Underground U d d mine i llocated t d iin th the Brazil OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz) ($/oz) Q1 2011 14 813 14,813 $741 Q1 2010 18,856 $432 2010 GOLD RESERVES AND RESOURCES(5) TONNES GRADE OUNCES (thousands) (g/t) (thousan

  41. Slide 41: La Coipa, Chile (100%)

    LA COIPA, CHILE (100%) • Gold/silver mine in the Maricunga district • Comprehensive exploration program OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz) ($/oz) Q1 2011 54 446 54,446 $596 Q1 2010 47,664 $511 2010 GOLD RESERVES AND RESOURCES(5) TONNES GRADE OUNCES (thousands) (g/t) (thousands)

  42. Slide 42: 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) Q1 2011 58,740 $482 Q1 2010 51,777 $566 2010 GOLD RESERVES AND RESOURCES(5) TONNES GRADE OUNCES (thousands) (g/t) (thousands) 2

  43. Slide 43: 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) Q1 2011 51,321 $499 Kinross acquired the Tasiast mine on September 17, 2010. 2010 GOLD RESERVES AND RESOURCES(5

  44. Slide 44: 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 PRODUCTION PRODUCTION COST (Au eq. oz) ($/oz) Q1 2011 55,833 $706 Kinross acquired the Chirano mine on September 17, 2010. 201

  45. Slide 45: Endnotes

    ENDNOTES 1) For more information regarding Kinross production and cost forecast for 2011 and production target for 2015, please refer to the press release dated May 3, 2011, available on our website at www.kinross.com. 2) P d ti costt per gold Production ld equivalent i l t ounce iis a non-GAAP GAAP

  46. Slide 46: Kinross Gold Corporation

    KINROSS GOLD CORPORATION 25 YORK STREET, 17TH FLOOR TORONTO, ON M5J 2V5 WWW.KINROSS.COM 46

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