Kinross Gold Corporation · TSX:K
Kinross Gold — Scotiabank Mining Conference 2021
69 slides from Kinross Gold's conference presentation, December 2021
Slide 1: Delivering Value
December 2021 Delivering Value. Kinross Gold Corporation
Slide 2: Cautionary Statement on Forward-Looking Information
December 2021 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 performa
Slide 3: Table of Contents
Table of Contents Company Overview 4 Operations and Projects 26 Americas 27 West Africa 43 Russia 50 Corporate Responsibility 57 Appendix 64 3
Slide 4: Kinross Gold Corporation
Kinross Gold Corporation
Slide 5: Who is Kinross?
Kinross Gold Corporation December 2021 Who is Kinross? GLOBAL PRODUCTION (1) PORTFOLIO Portfolio GROWING TO 8 mines 2.9Moz. (iii) 3 regions LARGE GOLD GEOGRAPHICALLY STRONG COMMITTED TO EXCELLENT PRODUCER, DIVERSIFIED OPERATING TRACK RESPONSIBLE BALANCE SHEET HIGHLY LIQUID PRODUCER RECORD MINING • ~
Slide 6: Diversified Portfolio of Assets
December 2021 Diversified Portfolio of Assets Portfolio of mines and development projects located in three core regions Kupol-Dvoinoye, Russia Fort Knox, U.S.A. Manh Choh, U.S.A. Udinsk, Russia Bald Mountain, Head Office, U.S.A. Toronto, Canada Round Mountain, 2020 Gold Equivalent U.S.A. Production(
Slide 7: Nine Consecutive Years of Meeting Guidance
Kinross Gold Corporation December 2021 Nine Consecutive Years of Meeting Guidance Kinross has met or exceeded guidance for production, costs and capital expenditures for the past nine years 2012 2013 2014 2015 2016 2017 2018 2019 2020 Met or exceeded annual production guidance Met
Slide 8: Exciting Future: Expected Production
Kinross Gold Corporation December 2021 Exciting Future Expecting production growth of 20% from 2020 to 2023 and average annual production of ~2.5 million gold equivalent ounces over the decade(1)(2) Three drivers underpin and extend Growing Production Profile current production… • Capital reinvestme
Slide 9: Production Plans and Project Pipeline
Kinross Gold Corporation December 2021 Production Plans and Project Pipeline Base Case Expected Additional Pipeline Growth Projects Opportunities Kupol: regional exploration, Kupol-Dvoinoye Chulbatkan: Udinsk mine life extensions Tasiast 24k Tasiast: satellites, West Branch depth extension Chirano 2
Slide 10: Advancing the Project Pipeline
Kinross Gold Corporation December 2021 Advancing the Project Pipeline Expected project milestones at growth projects that span all three operating regions H1 2021 >> H2 2021 >> 2022 >> 2023+ La Coipa Restart Commence Q4 Udinsk End of Q1 Tasiast 24k Mid-2023 Tasiast 24k Phase 7 pre-stripping Pre-
Slide 11: Prioritizing Resource Conversion
Kinross Gold Corporation December 2021 Prioritizing Resource Conversion (i) Significant potential for mine life extension at existing assets 25 20 15 Years 10 5 - Expected Reserve Life Expected Resource Life (i) See Appendix Notes: - Excludes Kettle River and Maricunga 11 - Incorporates internal ass
Slide 12: Strong Liquidity and Financial Flexibility
Kinross Gold Corporation December 2021 Strong Liquidity and Financial Flexibility Well-positioned to fund portfolio of mines and growth projects Liquidity Position Financial Flexibility • Available liquidity of ~$2.1 billion, including $586 million of cash • Very manageable leverage with low net As
Slide 13: Inflationary Pressures
Kinross Gold Corporation December 2021 Inflationary Pressures Input costs and supply chain tightness affecting our cost structure Inputs Direct Cost Drivers Estimated Impacts Ground support Grinding media Steel OPEX Power costs ~5% going forward Fuel Power Explosives Lubricants ANNUAL CAPEX Chemical
Slide 14: Disciplined Capital Allocation Strategy
Kinross Gold Corporation December 2021 Disciplined Capital Allocation Strategy Reinvesting in our Business 2021 Guidance • Sustaining capex – maintaining our existing operations $340 million(i) safely and to world-class environmental standards • Expansion projects – pursuing attractive returns by le
Slide 15: Measured Acquisition Track Record
Kinross Gold Corporation December 2021 Measured Acquisition Track Record Disciplined approach to M&A over the past 9 years, focused on assets that leverage operating expertise in existing regions Bald Mountain & 50% Hydroelectric of Round Mountain(i) Power Plants Chulbatkan Manh Choh(ii) Nevada, U.S
Slide 16: Manageable Debt Profile
Kinross Gold Corporation December 2021 Manageable Debt Profile Kinross’ senior notes are rated investment grade by all three ratings agencies Debt Schedule Debt Ratings Agency Rating $72 S&P BBB- (Stable) $32 Moody’s Baa3 (Positive) $500 $500 Fitch BBB (Stable) $ millions Debt Breakdown Interest Rat
Slide 17: Global Mining Leader in ESG
Kinross Gold Corporation December 2021 Global Mining Leader in ESG Prioritizing the effective management of ESG risks through our principled approach to sustainability and strong on-the-ground performance at our operations • ESG performance consistently RobecoSAM ranks in top quartile of peer group
Slide 18: Global Mining Leader in ESG
Kinross Gold Corporation December 2021 (i) Global Mining Leader in ESG Environment Social Governance 99% 939,000 TAILINGS MANAGEMENT of workforce hired from beneficiaries of INDEPENDENT BOARD within host country community investments • 8 of 9 Board members are • Kinross has no upstream facilities in
Slide 19: Competitive Production and AISC Profile
Kinross Gold Corporation December 2021 Competitive Production and AISC Profile 2020A Production 2020A All-In Sustaining Cost (million ounces) ($ per ounce) 6.0 $1,100 5.0 $1,000 4.0 3.0 $900 2.0 $800 1.0 - $700 Barrick Kirkland Lake Barrick Kirkland Lake Newmont AngloGold Gold Fields Agnico Eagle An
Slide 20: Attractive Value Opportunity
Kinross Gold Corporation December 2021 Attractive Value Opportunity Relative to peers, considering Kinross’ annual production growth, cost structure and track record P / 2022E Operating CF EV / 2022E EBITDA 8.9 8.8 7.7 7.7 7.2 6.8 7.1 6.5 6.4 6.5 6.0 5.4 5.0 4.9 4.8 4.5 4.0 3.6 Kirkland Lake Barrick
Slide 21: Analyst Consensus P/CF
Kinross Gold Corporation December 2021 Price/Cash Flow vs. Production Guidance P/CF vs. Track Record of Meeting or Exceeding Original Production Guidance 9x Newcrest Newmont Kirkland Lake Agnico Eagle Analyst Consensus P/CF Barrick 6x Gold Fields AngloGold Yamana Kinross 3x 40% 60% 80% 100% % of Yea
Slide 22: Analyst Consensus P/NAV
Kinross Gold Corporation December 2021 Discounted Valuation Not Justified by Operating Jurisdictions P/NAV vs. Fraser Institute Ranking (Weighted by NAV) 1.3x Agnico Eagle Kirkland Lake Newmont 1.2x Analyst Consensus P/NAV 1.1x Barrick 1.0x Gold Fields AngloGold Newcrest 0.9x Kinross 0.8x Yamana 0.7
Slide 23: Proven Track Record in Mauritania
Kinross Gold Corporation December 2021 Proven Track Record in Mauritania Successfully operated for over 10 years Cumulative production of over 2.5 million gold equivalent ounces Established $300 million political risk insurance policy with MIGA A member of the World Bank Constructed Phase One Pr
Slide 24: Proven Track Record in Russia
Kinross Gold Corporation December 2021 Proven Track Record in Russia Kinross has a long and successful 26-year track record investing in Russia Significant Operating Experience 2020 Statistics: Kinross Investments in Russia • Operated four mines, including the high grade, low cost Kupol and Dvoinoye
Slide 25: Kinross Investment Case
Kinross Investment Case 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 9 Available liquidity of ~$2.1 billion Met or exceeded Attracti
Slide 26: Operations and Projects
Operations and Projects
Slide 27: Americas
December 2021 Americas 2020 Gold Equivalent Production(1) Country Highlights Paracatu, Brazil Our largest mine, Paracatu, 23% Brazil boasts an attractive cost 22% structure 2.4M Fort Knox, ~1/3rd of our production comes Alaska ounces 10% from Nevada and Alaska – two U.S.A. 23% of the world’s top min
Slide 28: Paracatu, Brazil (100%)
Americas December 2021 Paracatu, Brazil (100%) Tier 1 gold mine with a long mine life that extends to 2032 • Among the world’s largest gold Operating Results(3) operations, with annual throughput of ~60 million tonnes 2018 2019 2020 • Potential mine life extensions in light of Production the strong
Slide 29: Paracatu – Northwest Extension
Americas December 2021 Paracatu – Northwest Extension Mineralization extends to the west of the existing reserve pit NW Ph1B Multiple NW Ph2 pushbacks being evaluated to the west of Au (g/t) NW Ph1A A – A’ existing reserve pit A’ A Reserve Pit 29
Slide 30: Round Mountain, U.S.A. (100%)
Americas December 2021 Round Mountain, U.S.A. (100%) Large, open pit mine with mine life expected to extend to at least 2027 • Substantial resource: orebody is open at depth with increasing grade Operating Results(3) • Mine plan optimization underway; results 2018 2019 2020 expected in Q2 2022 • Nor
Slide 31: Round Mountain – Phase S
Americas December 2021 Round Mountain – Phase S Potential next pushback on the south side of the Round Mountain pit • May extend open pit operations until Plan view of Round Mountain 2029 and mill life to early 2030s Phase X • Drilling is complete; geotechnical feasibility study returned favourable
Slide 32: Round Mountain – Phase X
Americas December 2021 Round Mountain – Phase X Assessing ability to further extend mine life • Studying potential for incremental mine • Encountering mineralized material in Phase W life extensions at $1,400/oz. or higher upper deposit - potential to add ounces in upper gold prices Phase X • Infill
Slide 33: Fort Knox, U.S.A. (100%)
Americas December 2021 Fort Knox, U.S.A. (100%) Successfully operating one of the world’s few cold weather heap leaches where mine life is expected to extend to 2030 • Future production growth driven by Operating Results(3) enhancements to the mine plan, including: o Accelerating production at the 2
Slide 34: Fort Knox – Gil Satellite Pits
Americas December 2021 Fort Knox – Gil Satellite Pits Expected to provide near-term, higher-grade ore to Fort Knox operation North Gil Metric (approx.) Estimate(i) First production Q4 2021 Mine life 2 years Total production (Au eq. oz.) 160koz. Sourdough Average cash cost (Au eq. oz.) $920/oz. Mined
Slide 35: Fort Knox – Manh Choh (70%)
Americas December 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 (thousands) (Au g/
Slide 36: Bald Mountain, U.S.A. (100%)
Americas December 2021 Bald Mountain, U.S.A. (100%) Large land package with significant potential • Substantial mineral resource base Operating Results(3) with multiple sources of potential mineral reserve additions that could 2018 2019 2020 extend mine life beyond mid-2020s Production 284,646 187,9
Slide 37: Bald Mountain Targets
Americas December 2021 Bald Mountain Targets Numerous targets within the large land package • 1.1 million ounces of reserves(i) at $1,200/oz. Resource Pits – Expected Mine Potential Plan to 2024 • Potential to add significant mine life at higher Extensions gold prices N. Duke Royale o Upside could b
Slide 38: A Return to Production in Chile
Americas December 2021 A Return to Production in Chile Mined in succession, La Coipa and Lobo-Marte could enable production in Chile beyond 2040 • La Coipa and Lobo-Marte are located in Chile’s Atacama (Region III), N approximately 650 km north of Santiago • Both deposits are in the Maricunga Belt,
Slide 39: La Coipa Restart Project
Americas December 2021 La Coipa Restart Project On budget and on schedule for first production in mid-2022 • Leverages existing infrastructure, including Coipa Norte Puren Phase 7 plant and Maricunga mine fleet • Project is on schedule, pre-stripping progressing as planned. As of November 10th, 2021
Slide 40: La Coipa Restart Feasibility Study Results
Americas December 2021 La Coipa Restart Feasibility Study Results Project expected to generate a 28% IRR at an assumed gold price of $1,200/oz. Feasibility Study Estimates Life of mine production (2022 to 2024) 690,000 gold equivalent ounces Average production cost of sales(3) $575 per gold equivale
Slide 41: Lobo-Marte
Americas December 2021 Lobo-Marte Potential to be a long-life, cornerstone asset with a large production profile and low costs • Offers excellent long-term optionality in Chile Gold Reserve & Resource Estimates(i) • Significant mineral reserve estimate(i), Tonnes Grade Ounces (thousands) (Au g/t) (t
Slide 42: Lobo-Marte Feasibility Study Results
Americas December 2021 Lobo-Marte Feasibility Study Results Study confirms project’s key parameters; increase to reserves by 300,000 ounces and resources by 600,000 ounces compared to PFS(i) Metric Kinross Estimate Initial Capital Cost Estimate (Approximate) (millions) Life of mine production (Au eq
Slide 43: West Africa
December 2021 West Africa 2020 Gold Equivalent Production(1) Country Highlights Growing production with a Tasiast, 22% Mauritania large gold resource located in Mauritania a prospective district 2.4M ounces 55% Ghana Mine life extended to 2025 through exploration success 17% 6% Chirano, Ghana Americ
Slide 44: Tasiast, Mauritania (100%)
West Africa December 2021 Tasiast, Mauritania (100%) Low-cost mine with a large gold resource located in a prospective district • Estimated mine life: 2033 Operating Results(3) • Mill is running following temporary shutdown related to a fire in Q2 2021 2018 2019 2020 Production o Have achieved pre-f
Slide 45: Advancing the Tasiast 24k Project
West Africa December 2021 Advancing the Tasiast 24k Project Despite production setback in 2021, project timeline still intact Project overview Project financing in place • Incorporates operational efficiencies identified in • Signed $300 million IFC-led project financing areas of maintenance, mining
Slide 46: 24k Project Feasibility Study Results
West Africa December 2021 24k Project Feasibility Study Results The value-enhancing Tasiast 24k project offers attractive estimated returns, increased production and lower costs Operating Estimates Throughput capacity 24,000 t/d Average annual production (2022 – 2028) 563,000 gold ounces Production
Slide 47: Tasiast Exploration
West Africa December 2021 Tasiast Exploration World-class orebody and highly prospective district Northern satellites • Multiple low strip(i) oxide deposits located 5 - 12 km north of the Tasiast operation • Fennec, C67, and C68 are prospective targets for further drilling o High grade satellite ore
Slide 48: Chirano, Ghana (90%)
West Africa December 2021 Chirano, Ghana (90%) Three-year mine life extension to 2025 due to exploration success • Underground and open pit operation Operating Results(1,3) located in southwestern Ghana • Further mine life extensions possible 2018 2019 2020 through continued exploration Production 2
Slide 49: Chirano Exploration
West Africa December 2021 Chirano Exploration 2021 exploration budget increased by 20% to $12 million to build off successful year in 2020 • Targeting significant portion of existing • 2021 program includes drilling depth mineral resources for potential extensions at Obra, Akwaaba, Suraw, conversion
Slide 50: Russia
December 2021 Russia 2020 Gold Equivalent Production(1) Highlights Kupol-Dvoinoye Udinsk development project expected to extend our long history of production in Russia 22% beyond 2030 Long track record of mine life extensions 2.4Mounces 55% expected to continue at Kupol 23% Americas West Africa Rus
Slide 51: Strong Platform in Russia
Russia December 2021 Strong Platform in Russia Track record of adding reserves through exploration at Kupol supports a bridge to production at Udinsk 12 2025 Projected End of Mine Life 10 Gold Equivalent Ounces 8 2022 (Millions) 6 4 2019 2 - 2016 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 201
Slide 52: Kupol-Dvoinoye (100%)
Russia December 2021 Kupol-Dvoinoye (100%) Our Russian mines are a model for successfully operating in a remote location • Mine life expected until at least 2025 following 2020 Gold Reserve & Resource Estimates(i) another 1-year addition in 2020 Tonnes Grade Ounces (thousands) (Au g/t) (thousands) o
Slide 53: Kupol Exploration
Russia December 2021 Kupol Exploration Targeting additional reserve growth Big Central South North North South Extension Bend Zone Zone Zone Zone Upper North Extension 42 Kupol Deeps S. Hanging N. Hanging Providence Moroshka Vtoriy Wall Wall Base Case Additional Pipeline Opportunities Depletion Nort
Slide 54: Prospective Exploration Targets
Russia December 2021 Prospective Exploration Targets 2020 drill program added approximately 409koz. to mineral reserves(i) to largely offset depletion at Kupol-Dvoinoye, the largest reserve addition since 2014 Kupol-Dvoinoye • 6 underground and 2 surface drill rigs in operation with the goal of iden
Slide 55: Udinsk: First Mine in Chulbatkan Region
Russia December 2021 Udinsk: First Mine in Chulbatkan Region Large Chulbatkan region includes several promising targets; Udinsk project advancing as planned • Builds on track record of operational and Prospect developmental success in Russia License • PFS completed in Q3 2021; reaffirms the asset as
Slide 56: Udinsk Pre-Feasibility Study Results
Russia December 2021 Udinsk Pre-Feasibility Study Results Confirms project’s expected strong returns; 3 million ounces converted from resources to reserves(i) Kinross Estimate $1,200/oz. $1,500/oz. $1,800/oz. Metric (reserve price) (Approximate) IRR(iv)(v) 11% 20% 27% Life of mine production (Au eq.
Slide 57: Corporate Responsibility
Corporate Responsibility 57
Slide 58: Our Approach
Corporate Responsibility December 2021 Our Approach At the heart of our success is our people and our four Core Values Our Values and Guiding Principles unite our global workforce Our approach to Corporate Responsibility can be distilled into four main areas: Do no harm – We work to protect our work
Slide 59: Strong Safety Performance
Corporate Responsibility December 2021 Strong Safety Performance Maintained Total Reportable Injury Frequency Rate on par with, or better than, low-risk, non-industrial sectors • Implemented risk controls, training, and provided leadership to ensure a culture of safe work at all Benchmarking TRIFR 2
Slide 60: Climate Change and Energy Efficiency
Corporate Responsibility December 2021 Climate Change and Energy Efficiency GHG intensity on a per gold equivalent ounce produced basis below peer average – Paracatu down by 33% since 2017 • Published first stand-alone Gold Peers 5-Year GHG Intensity climate report in 2020 in line with (kg CO2e / Au
Slide 61: Managing our Environmental Footprint
Corporate Responsibility December 2021 Managing our Environmental Footprint We are a responsible steward of land and water during all stages of the mine’s life cycle Received a top ranking for the fourth • Sustained below-average consecutive year from World Wildlife Fund GHG intensities on a per o
Slide 62: Responsible & Safe Tailings Management
Corporate Responsibility December 2021 Responsible & Safe Tailings Management All of our tailings facilities are designed and constructed to the highest engineering standards and meet or exceed regulatory and international requirements and standards of best practice • Tailings management programs in
Slide 63: Governance Highlights
Corporate Responsibility December 2021 Governance Highlights Kinross is committed to the highest standards of corporate governance and accountability • All directors are independent except • 8 of 9 Board members are for the Chief Executive Officer independent • All of our Board committees are • Boar
Slide 64: Appendix
IX Append KINROSS
Slide 65: Mineral Reserve and Mineral Resource Statement
Appendix December 2021 MINERAL RESERVE AND MINERAL RESOURCE STATEMENT MINERAL RESERVE AND MINERAL RESOURCE STATEMENT GOLD PROVEN AND PROBABLE MINERAL RESERVES (1,2,3,4,5,6) Kinross Gold Corporation's Share at December 31, 2020 Kinross Proven Probable Proven and Probable Property Location Interest To
Slide 66: Mineral Reserve and Mineral Resource Statement
Appendix December 2021 MINERAL RESERVE AND MINERAL RESOURCE STATEMENT MINERAL RESERVE AND MINERAL RESOURCE STATEMENT GOLD MEASURED AND INDICATED MINERAL RESOURCES (EXCLUDES PROVEN AND PROBABLE MINERAL RESERVES) (2,3,4,5,6,9,10,11) Kinross Gold Corporation's Share at December 31, 2020 Kinross Measure
Slide 67: Notes – 2020 Kinross Mineral Reserve & Resource Statements
Appendix December 2021 Notes – 2020 Kinross Mineral Reserve & Resource Statements (1) Unless otherwise noted, the Company’s mineral reserves are estimated using appropriate cut-off grades based on an assumed gold price of $1,200 per ounce and a silver price of $17.00 per ounce. Mineral reserves are
Slide 68: Endnotes
Appendix December 2021 Endnotes 1) Unless otherwise noted, gold equivalent production, gold equivalent ounces sold, production cost of sales and all- in sustaining cost figures in this presentation are based on Kinross’ 90% share of Chirano production and costs and 70% share of Manh Choh costs. Also
Slide 69: Slide 69