Kinross Gold Corporation · TSX:K
Kinross Gold — TD Newcrest 2011 Mining Conference
26 slides from Kinross Gold's conference presentation, Jan 26, 2011
Slide 1: Delivering Disciplined Growth
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 Delivering Disciplined Growth TD Newcrest 2011 Mining Conference January 26, 2011 Cautionary Statement on Forward‐Looking Information All statements, other than statements of historical fact, contained or incorporated by re
Slide 2: Increasing Demand for Gold
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 I. Whyy Gold Now? 3 Increasing Demand for Gold $180 $1,450 Investment / Other $170 Total Fabrication $160 $1,250 Gold Price (US$/oz) $150 $ 50 Current gold price Tottal Gold Demand (US$ billions) $140 $1,050 $130 Gold Price
Slide 3: Declining world supply from mine production
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 Declining world supply from mine production 3,000 Other Big Four* 2,500 2,000 Tonnes 1,500 1,000 500 0 1970 1975 1980 1985 1990 1995 2000 2005 2010e * South Africa, United States, Australia, Canada Source: GFMS World Gold S
Slide 4: Continuing the Kinross Transformation
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 II. Whyy Kinross Now? 7 Continuing the Kinross Transformation Kinross Yesterday Kinross Now(1) 4.5 – 4.9 Gold equivalent production (mm oz) Gold equivalent production (mm oz) 2.6* 2.2 1.6 2005 2009 2010e 2015e (1) Please re
Slide 5: World Gold Reserves and Resources
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 World Gold Reserves and Resources Total Reserves & Resources Top Countries (mm oz.) (mm oz.) Total Reserves & Brazil Chile Country % Resources United States 1. South Africa 997 29.7% Russia South Africa 2. Russia 225 6.7% 3
Slide 6: Track Record of Gold Reserve Growth
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 Track Record of Gold Reserve Growth Tasiast & Kinross Chirano Today and Probable Gold Reserves (mm oz)(2) Exploration & 8.2 53.4 Development 33.2 Mined 20.8 13.3 Acquired Divested 20 0 20.0 Proven a 15.3 2004 Current (2) Pl
Slide 7: Q3 2010 Highlights
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 Q3 2010 Highlights • Continuing to deliver strong financial results Adjusted Operating Cash Revenue Adjusted Net Earnings(4) Flow(3,4) +26% +28% $736 $261 $124 $582 $203 US$ millions U $2 Q3/09 Q3/10 Q3/09 Q3/10 Q3/09 Q3/10
Slide 8: Q3 2010 Results
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 Q3 2010 Results Realized COS (in millions, except ounces and per Q3/09 Q3/10 % Change Gold Price Margin(6) share amounts) +24% 24% +37% Gold equivalent production $1,190/oz $673/oz 537,440 575,065 7% (ounces) (8) Gold equiv
Slide 9: Expanding Margins
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 Expanding Margins 2004 – YTD Q3 2010: $648 • Average realized gold price: +182% • Kinross’ Ki ’ attributable tt ib t bl costt off sales i (6): +302% l margin $530 +302% Costt of Sales Margin ($/oz.) $436 $329 $279 $161 $170
Slide 10: 2010: Met Production and Cost Guidance
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 2010: Met Production and Cost Guidance(1) Production and Costs Country Production (000 ounces ) Cost of Sales / oz. USA 690 – 745 $480 – 520 Russia(8) 495 – 525 $340 – 365 Brazil 510 – 580 $490 – 555 Chile 350 – 380 $700 –
Slide 11: Kinross Project Portfolio
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 Kinross Project Portfolio 2011 2012 2013 2014 2015 Paracatu 3rd Ball Mill Paracatu Desulphurization Maricunga SART Plant Paracatu 4th Ball Mill Dvoinoye Tasiast Lobo‐Marte Fruta del Norte Cerro Casale Conceptual timeline ba
Slide 12: Paracatu: At-site Expansion
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 Paracatu: At‐site Expansion 3rd Ball Mill • Installingg 3rd ball mill to increase throughput g p • Procurement commitments at 90% • Total project 60% complete; construction at site 40% complete • On schedule for completion
Slide 13: Plan View of Drilling at Tasiast Greenschist Target
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 Plan View of Drilling at Tasiast 25 Greenschist Target Aug.’09: 17 m at 1.69 g/t Jan’10: 84 m at 1.92 g/t Aug. ’09: 21 m at 1.74 g/t Jan.’10: 85 m at 2.42 g/t Jan.’10: 94 m at 2.78 g/t Sep.’10: 81 m at 3.00g/t Sep.’10: 45 m
Slide 14: Resource Growth at Tasiast
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 Resource Growth at Tasiast • 3.2 mm oz of Inferred Resource added in November 2010 5.1 Ounces (millions)(7,10) 1.9 1.4 0.8 9.2 9.3 5.4 3.7 Year‐end 2008 November 2009 September 2010 November 2010 Measured & Indicated Minera
Slide 15: District Targets
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 District Targets C67 34m at 1.71g/t 4m at 11.10g/t 19m at 1.19g/t Aoeouat 12m at 2.18g/t 15m at 3.72g/t 6m at 10.62g/t 9 att 7 9m 7.41g/t 41 /t Prolongation 13m at 4.08g/t 6m at 2.61g/t C69 6m at 13.0g/t 13m at 3.89/t 21m a
Slide 16: Dvoinoye, Russia / Fruta del Norte, Ecuador
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 Dvoinoye, Russia • Closed acquisition August 27, 2010 Pevek • Completed l d over 10,000 m off linear l drilling d ll Dvoinoye deposit & Vodorazdelnaya • Completed road connection between site and concession paved highway to
Slide 17: Fruta del Norte/Condor / Lobo-Marte
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 Fruta del Norte/Condor (100%) • Exploration to date has located a number of epithermal and porphyry‐style targets which will ill b be th the ffocus off continued ti d regional i l FDN exploration • FDN NI 43‐101 Technical R
Slide 18: Valuation
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 Valuation 35 TD: P / NAV 2.0 1.4 1.4 1.1 1.1 AEM GG ABX AUY KGC Source: TD Newcrest research – January 18, 2011 36 18
Slide 19: TD: P / 2011e CFPS / Key Objectives for 2010
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 TD: P / 2011e CFPS 16.3 13.3 10.9 9.0 7.6 AEM GG KGC AUY ABX Source: TD Newcrest research – January 18, 2011 37 Key Objectives for 2010 Declare increased reserves Complete Lobo‐Marte pre‐feasibility study Close sa
Slide 20: Why Kinross Now? / Endnotes
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 Whyy Kinross Now? 1. High‐growth major 2. Strong cash flow from pure gold production 3. Attractive valuation 39 Endnotes 1) For more information regarding Kinross’ preliminary operating results, and the production and cost
Slide 21: Fort Knox, USA (100%)
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 Appendix pp 41 Fort Knox, USA (100%) • Located in Alaska • Expansion and new heap leach to extend mine life • Material being stacked on new pads Operating Results Production Cost of Sales (Au eq. oz) ($/oz) YTD Q3 2010 264,
Slide 22: Round Mountain / Kettle River, USA
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 Round Mountain, USA (50%) • Kinross‐operated JV with Barrick • Located in Nevada, USA • Open pit mine Operating Results Production Cost of Sales (Au eq. oz) ($/oz) YTD Q3 2010 141,033 $614 YTD Q3 2009 160,873 $527 2009 Gold
Slide 23: Kupol, Russia / Paracatu, Brazil
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 Kupol, Russia (75%) • 3,000 tpd mill with open‐pit and underground • 2009 first full year of production Operating Results Production Cost of Sales (Au eq. oz) ($/oz) YTD Q3 2010 404,504 $318 YTD Q3 2009 529,421 $255 2009 Re
Slide 24: Crixas, Brazil / La Coipa, Chile
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 Crixas, Brazil (50%) • JV with AngloGold Ashanti • Underground mine located in the Brazil Operating Results Production Cost of Sales (Au eq. oz) ($/oz) YTD Q3 2010 56,798 $477 YTD Q3 2009 52,624 $430 Reserves and Resources(
Slide 25: Maricunga, Chile / Tasiast, Mauritania
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 Maricunga, Chile (100%) • Located the highly prospective Maricunga District • Open pit, heap leach operation Operating Results Production Cost of Sales (Au eq. oz) ($/oz) YTD Q3 2010 123,611 $682 YTD Q3 2009 173,692 $525 20
Slide 26: Chirano, Ghana (90%)
Kinross Gold Corporation TD Newcrest 2011 Mining Conference January 26, 2011 Chirano, Ghana (90%) • Open‐pit and underground mining operation • 90% owned by Red Back; Government of Ghana holds a 10% carried interest • 9 open‐pits and 2 recently‐discovered underground deposits • 2010e production of ~