Kinross Gold Corporation · TSX:K
Kinross Gold — Investor Presentation (March 2024)
60 slides from Kinross Gold's investor presentation, March 2024
Slide 1: Delivering Value.
Delivering Value. March 2024
Slide 2: Cautionary Statement on Forward-Looking Information
Kinross Gold Corporation March 2024 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
Slide 3: Table of Contents
March 2024 Table of Contents Company Overview 4 Great Bear 16 Operations & Projects 27 ESG 47 Appendix 52 33
Slide 4: Who is Kinross?
Kinross Gold Corporation March 2024 Who is Kinross? Portfolio STABLE STRONG ATTRACTIVE COMMITTED TO DIVERSIFIED PRODUCTION FINANCIAL VALUE RESPONSIBLE ASSET BASE OUTLOOK ~2MOZ POSITION MINING • >50% of production • Portfolio of 6 mines • Investment grade • Strong FCF yield of • Consistent top from 2
Slide 5: High Quality Portfolio of Assets
Kinross Gold Corporation March 2024 High Quality Portfolio of Assets Two top tier(1) mines – Tasiast & Paracatu – account for >50% of production Fort Knox, U.S.A. Manh Choh, U.S.A. 2024E Gold Equivalent Production(2) Great Bear, Canada Curlew, U.S.A Bald Mountain, U.S.A. Round Mountain, U.S.A. 71% ~
Slide 6: Top Performer in ESG
Kinross Gold Corporation March 2024 (1) Top Performer in ESG Environment Social Governance WATER MANAGEMENT • ~80% average water volume 99% > 600,000 INDEPENDENT BOARD recycling rate over the past 5 years of workforce hired from beneficiaries of within host country community investments • 10 of 11 B
Slide 7: Why Kinross?
Why Kinross? March 2024 Delivering Value Compelling FCF Yield Operational Excellence ✓ 12.0% 2024E FCF Yield %(1) Strong Cash Flow ✓ 8.3% 7.1% 5.7% 5.0% 5.0% 4.8% Deleveraging Balance Sheet ✓ 2.7% Nmf (2) Returning Capital ✓ Increasing Grades ✓ Strong Share Price Performance Attractive Portfolio 50%
Slide 8: Attractive Valuation
Kinross Gold Corporation March 2024 Attractive Valuation Trading at Compelling P/NAV and EBITDA Metrics Price / Net Asset Value(1) Enterprise Value / 2024E EBITDA(2) 1.37x 7.7x 7.4x 1.18x 1.06x 1.03x 6.3x 5.9x 5.7x 0.91x 0.88x 0.85x 0.82x 5.1x 4.8x 4.6x 0.71x 3.8x (1) Calculated as Share Price / Net
Slide 9: Balance Sheet & Financial Flexibility
Kinross Gold Corporation March 2024 Balance Sheet & Financial Flexibility Liquidity Position (1) Financial Flexibility • Total liquidity(1) of ~$1.9 billion, including $352 million of cash and cash equivalents as of year- end 2023 As at December 31st • $190 million of debt repaid in Q4 and $360 ~$1.
Slide 10: Manageable Debt Profile
Kinross Gold Corporation March 2024 Manageable Debt Profile Senior notes are rated investment grade by all three rating agencies Debt Schedule(1) Debt Ratings Agency Rating Moody’s Baa3 (Stable) $1,000 Fitch BBB (Stable) S&P BBB- (Negative) $ millions Debt Breakdown(1) Interest Rate Amount Due $500
Slide 11: Disciplined Capital Allocation Strategy
Kinross Gold Corporation March 2024 Disciplined Capital Allocation Strategy Reinvesting in our Business 2024 Guidance • Sustaining Capex – maintaining our existing operations ~$500M(1)(2) safely and to world-class environmental standards • Expansion Projects – pursuing attractive returns by leveragi
Slide 12: Advancing the Project Pipeline
Kinross Gold Corporation March 2024 Advancing the Project Pipeline Expected project milestones on track(1) 2023 >> 2024 & 2025 Q1 Great Bear ✓ H2/24 Manh Choh Initial Resource and Technical First Production Report H2/24 Great Bear H1 Round Mountain ✓ Results of PEA Begin Exploration Decline H2/24 Gr
Slide 13: Strong Reserve and Resources Base
Kinross Gold Corporation March 2024 (1) Strong Reserve and Resources Base Potential for mine life extension at existing operations 20 18 16 14 12 10 Years 8 6 4 2 0 La Coipa Fort Knox Round Mountain Bald Mountain Paracatu Tasiast Expected Reserve Life Potential Resource Life (1) “Expected Reserve Li
Slide 14: Guidance and Outlook
Kinross Gold Corporation March 2024 Guidance and Outlook Strong Multi-Year Outlook Q4/23 2023 FY 2023 2024 2025 2026 Results Guidance Results Guidance Guidance Guidance (+/- 5%) (+/- 5%) (+/- 5%) (+/- 5%) Attributable Production 546,513 2.1 million 2.15 million 2.1 million 2.0 million 2.0 million (A
Slide 15: Inflationary Pressures
Kinross Gold Corporation March 2024 Inflationary Pressures How inflationary pressure affects our cost structure Inputs Direct Cost Drivers Estimated Impacts Ground support Grinding media Steel Maintenance/supplies OPEX Power costs Power Fuel Explosives Lubricants ANNUAL CAPEX Chemicals (including st
Slide 16: Great Bear
March 2024 Great Bear 1616
Slide 17: Project Overview
Kinross Gold Corporation March 2024 Project Overview High grade mineralization across the property Town of Red LP Zone Lake Open along strike and at depth Disseminated high grade mineralization, analogous to Hemlo N Vein hosted and sulphide replacement high- Limb LP ZONE grade gold mineralization Hi
Slide 18: Great Bear
Kinross Gold Corporation March 2024 Great Bear 2023 exploration success added significant ounces and improved grades $1,700/OZ UPDATED RESOURCE YE2022 YE2023 Delta Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces (000’s) (Au g/t) (000’s) (000’s) (Au g/t) (000’s) (000’s) (Au g/t) (000’s) M
Slide 19: Directional Drilling Hitting Targets Faster
Kinross Gold Corporation March 2024 Directional Drilling Hitting Targets Faster Directional drilling hits are showing continuity at depth NORTHWEST LP - CENTRAL SOUTHEAST Recent intercepts at ~1,000 m vertical. BR-843AC1A was >50% faster to target zone than drilling from surface. BR-843AC1A 3.5 m ov
Slide 20: Great Bear
Kinross Gold Corporation March 2024 Great Bear Confirming our thesis of high-grade resource additions at depth LP CENTRAL NORTHWEST SOUTHEAST DISCOVERY BRUMA YUMA YAURO AURO VIGGO 2022 Resource Outline 500 m BR-825 BR-806 0.5 m @ 147.0 g/t 3.6 m @ 11.20 g/t BR-819 8.9 m @ 13.87 g/t BR-807 2.7 m @ 9.
Slide 21: Exploration Plan for 2024
Kinross Gold Corporation March 2024 Exploration Plan for 2024 Continue to test strike and depth; prioritizing high-grade LP core LP CENTRAL NORTHWEST SOUTHEAST DISCOVERY BRUMA YUMA YAURO AURO VIGGO 2 500 m 2 1,000 m 3 1 Open Open 3 Open Planned Drillholes Target Where we are targeting our drilling i
Slide 22: Great Bear
Kinross Gold Corporation March 2024 Great Bear Recent Hit – BR-843AC1A Grading 389.57 g/t over 4.4 m (3.5m true width) NORTHWEST SOUTHEAST 500m BR-843AC1A (389.57 g/t over 4.4 m) BR-697A (3.5 m True Width) 38.0 m @ 5.24 g/t 1000m ~700 m Plunge BR-695 length open 9.6 m @ 10.46 g/t Visible Gold in BR-
Slide 23: Exploration Decline
Kinross Gold Corporation March 2024 Exploration Decline Advanced exploration decline expected to enable efficient drilling of underground material Conceptual Exploration Timeline 2023 2024 2025 2026 2027+ Resource Development Exploration, Potential Delineation of New Discoveries Deep Drilling Surfac
Slide 24: Great Bear Appears Similar to Hemlo
Kinross Gold Corporation March 2024 Great Bear Appears Similar to Hemlo Over 90% of Hemlo has been mined from underground at depths of greater than 500 m Hemlo Great Bear Hemlo has produced +20 Moz 0 RL Open Open 500 RL 1,000 RL Open Open Open 3 Shafts GRADE THICKNESS < 5 GxM 50 to 100 GxM 5 to 15 G
Slide 25: Additional Upside Potential on Highly-Prospective Land Package
Kinross Gold Corporation March 2024 Additional Upside Potential on Highly- Prospective Land Package Transmission line Highway 105 1 Felsic – Intermediate Felsic Intrusive Ultramafic Mafic-Ultramafic Mafic (Calc-Alkaline?) Sediments 3 Great Bear property 3 Where we see opportunity for growth: 2 Hinge
Slide 26: Targeted Path to Production at Great Bear
Kinross Gold Corporation March 2024 Targeted Path to Production at Great Bear Conceptual Project Development Timeline ‘23 ‘24 ‘25 ‘26 ‘27 ‘28 ‘29 AEX Surface Exploration Decline Construction Environmental Baseline MAIN PROJECT ✓ Initiated Federal Permitting Process Project Impact Statement Agency Re
Slide 27: Operations & Projects
”) J O oot .) _ oO 03 lions Operat
Slide 28: Mauritania
Kinross Gold Corporation March 2024 Mauritania 2024E Gold Equivalent Production(1) Asset Highlights Top-tier(2) asset Low-cost mine with a strong Tasiast production profile supported by a large gold reserve in a United States prospective district 29% 35% Expected to deliver low-cost production and s
Slide 29: Tasiast
Kinross Gold Corporation March 2024 Tasiast Low-cost Mine Backed by a Substantial Reserve • Higher throughput in Q4 over prior quarter Operating Results reaching an average of ~22ktpd 2021(1) 2022 2023 • Lowest cost operation in the fourth quarter Production and full-year in 2023 170,502 538,591 620
Slide 30: Tasiast Solar
Kinross Gold Corporation March 2024 Tasiast Solar Construction Complete and Power Online • The 34 MW solar power plant is expected to provide ~20% of the site’s power, offsetting ~530 kt of greenhouse gas emissions over the life-of-mine, or the equivalent of ~11,000 gasoline powered vehicles per yea
Slide 31: Brazil
Kinross Gold Corporation March 2024 Brazil 2024E Gold Equivalent Production(1) Asset Highlights Top-tier(2) asset Mauritania United States 29% Attractive cost structure and 35% stable long mine life ~2.1Moz extending into the next Paracatu decade Chile 12% Paracatu Track record of strong 24% operati
Slide 32: Paracatu
Kinross Gold Corporation March 2024 Paracatu Top-tier Gold Mine With Production Extending into the Next Decade • Largest gold mine in Brazil, and one of the world’s largest gold mining Operating Results operations 2021 2022 2023 • Mine plan sequence results in lower production and higher costs in 20
Slide 33: Chile
Kinross Gold Corporation March 2024 Chile 2024E Gold Equivalent Production(1) Asset Highlights Mauritania United States High-margin production with 29% strong cash flow 35% La Coipa oxide extensions ~2.1Moz La Coipa show promising opportunities La Coipa to extend mine life 12% Agreement in place to
Slide 34: La Coipa
Kinross Gold Corporation March 2024 La Coipa High-Margin Operation Driving Strong Cash Flow • Strong performance on grades and Operating Results recoveries continue • 2023 production of 260koz exceeded the 2021 2022 2023 top-end of guidance Production - 109,576 260,138 (Au eq. oz.) • On-track for an
Slide 35: Strong Production Outlook in Chile
Kinross Gold Corporation March 2024 Strong Production Outlook in Chile Mined in succession, La Coipa and Lobo-Marte could enable production in Chile beyond 2040 Salares Norte (Gold N Fields), ~75km N • La Coipa and Lobo-Marte are located in Chile’s Atacama (Region III), approximately 650 km north of
Slide 36: Lobo-Marte
Kinross Gold Corporation March 2024 Lobo-Marte Potential to be a long-life, cornerstone asset with a large production profile and low costs • Offers excellent long-term optionality in 2023 Reserve & Resource Estimates(1) Chile Tonnes Grade Ounces (thousands) (Au g/t) (thousands) • Significant minera
Slide 37: United States
Kinross Gold Corporation March 2024 United States 2024E Gold Equivalent Production(1) Asset Highlights Kinross Alaska, Kinross Positioned for near-term Round Mountain, Alaska production growth & Bald Mountain Mauritania 29% 35% Clear path to production Round ~2.1Moz Mountain, through the decade with
Slide 38: Kinross Alaska – Fort Knox
Kinross Gold Corporation March 2024 Kinross Alaska – Fort Knox Positioned for Near Term Production Growth Through Manh Choh • Mill modifications to accommodate Manh Choh ore in progress Operating Results • Expect improved production and cost 2021 2022 2023 profile going forward • Current production
Slide 39: Alaska – Manh Choh (70%)
Kinross Gold Corporation March 2024 Kinross Alaska – Manh Choh (70%) On Track for Production in H2/24 • Planned utilization of existing mill and infrastructure at Fort Knox to process 2023 Gold Reserve & Resource Estimates(1) Manh Choh ore Tonnes Grade Ounces (thousands) (Au g/t) (Au koz) • Construc
Slide 40: Round Mountain
Kinross Gold Corporation March 2024 Round Mountain Planned Future of Open-pit mining, Underground Work Advancing Gold Hill • Ongoing mining of Phase W2 W3 (exploration) (study) (~8 km to north) • Phase S – planned production ramping-up in 2025 W2 Phase X • Construction of Phase X exploration decline
Slide 41: Round Mountain
Kinross Gold Corporation March 2024 Round Mountain Phase S Optimization Highlights Higher Forecasted Returns • Provides clarity around the next step for Round Mountain - production expected to Incremental Phase S Estimates (1) extend through the end of the decade Net Present Value (5%) $170 million
Slide 42: Round Mountain
Kinross Gold Corporation March 2024 Round Mountain Expect Production Through The Decade, With Additional Upside Potential Round Mountain Open Pit Production Profile Forecast Excludes potential from Phase X and Gold Hill Underground 300koz 0 2024 2025 2026 2027 2028 2029 2030 Phase W2 Executing + oth
Slide 43: Round Mountain – Phase X
Kinross Gold Corporation March 2024 Round Mountain – Phase X Focused on Higher-Margin UG Potential at Phase X • ~1,500 metres advanced to date (over half of planned development metres) • Underground definition drilling along decline has commenced; technical studies ongoing • Exploration drift is app
Slide 44: Round Mountain – Gold Hill
Kinross Gold Corporation March 2024 Round Mountain – Gold Hill Potential High-Grade Underground Satellite to Supplement Phase X UG • Drilling to date suggests a series of narrower, higher-grade parallel veins extending from the open pit • The 2023 exploration program confirmed an 800m west strike ex
Slide 45: Bald Mountain
Kinross Gold Corporation March 2024 Bald Mountain Significant Optionality • Substantial mineral resource base Operating Results with multiple sources of potential mineral reserve additions that could 2021 2022 2023 extend mine life beyond mid-2020s Production 204,890 214,094 157,749 • Mine plan opti
Slide 46: Curlew Basin Exploration
Kinross Gold Corporation March 2024 Curlew Basin Exploration Exploration Success continues • Successful 2023 exploration program confirmed extensions and continuity • Meaningful increase in resource to approximately 400koz M&I and 700koz Inferred (34% increase in inferred resource)(1) • 2024 focus:
Slide 47: ESG
March 2024 ESG 47
Slide 48: Our Approach
Kinross Gold Corporation March 2024 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 We integrate sustainability considerations This approach drives ESG results: into our core operations and practices: Envir
Slide 49: Consistently Earning Top-Quartile ESG Results
Kinross Gold Corporation March 2024 Consistently Earning Top-Quartile ESG Results Kinross Relative (Percentile) Performance ESG Percentiles: 10-year Trend on Key ESG Ratings* (Normalized) 97 ESG Percentiles: 10-year trend 100 94 91.5 88 100 82 80 90 80 80 62.5 70 60 60 50 40 40 30 20 20 10 0 0 2013
Slide 50: Reducing our Carbon Footprint
Kinross Gold Corporation March 2024 Reducing our Carbon Footprint We are making green investments and adapting our business because it’s the right thing to do • Committed to 30% GHG • Reporting to CDP since 2005 and in line with intensity reduction in Task Force for Climate Related Financial LOW CAR
Slide 51: Endnotes
Kinross Gold Corporation March 2024 Endnotes 1) Kinross’ updated outlook represents forward-looking information and users are cautioned that actual results may vary. Please refer to the Cautionary Statement on Forward-Looking Information on slide 2 of this presentation. 2) Production cost of sales o
Slide 52: Appendix
th, March 2024 Appendix KINROSS
Slide 53: 2024 Guidance Summary – Appendix A
Kinross Gold Corporation March 2024 2024 Guidance Summary – Appendix A Company guidance Annual attributable (1) gold equivalent production guidance (+/- 5%) 2024 2.1 million oz. 2025 2.0 million oz. 2026 2.0 million oz. 2024 attributable production and cost guidance 2024 Guidance (1) Accounting basi
Slide 54: 2024 Guidance Summary – Appendix A
Kinross Gold Corporation March 2024 2024 Guidance Summary – Appendix A 2024 attributable capital expenditures guidance Forecast 2024 sustaining Forecast 2024 non- Total 2024 forecast 2023 sustaining capital 2023 non-sustaining 2023 total capital capital (4)(5) sustaining capital (4)(5) capital (4)(5
Slide 55: 2024 Guidance Summary – Appendix A
Kinross Gold Corporation March 2024 2024 Guidance Summary – Appendix A Material assumptions used to forecast 2024 production cost of sales are as follows: • a gold price of $2,000 per ounce; • a silver price of $25 per ounce; • an oil price of $75 per barrel; • foreign exchange rates of: • 4.75 Braz
Slide 56: Mineral Reserve and Mineral Resource Statement – Appendix B
Kinross Gold Corporation March 2024 MINERAL RESERVE AND MINERAL RESOURCE STATEMENT – Appendix B 56
Slide 57: Mineral Reserve and Mineral Resource Statement – Appendix B
Kinross Gold Corporation March 2024 MINERAL RESERVE AND MINERAL RESOURCE STATEMENT – Appendix B 57
Slide 58: Mineral Reserve and Mineral Resource Statement – Appendix B
Kinross Gold Corporation March 2024 MINERAL RESERVE AND MINERAL RESOURCE STATEMENT – Appendix B 58
Slide 59: Notes – Appendix B
Kinross Gold Corporation March 2024 MINERAL RESERVE AND MINERAL RESOURCE STATEMENT NOTES – Appendix B (1) Unless otherwise noted, the Company's mineral reserves are estimated using appropriate cut-off grades based on an assumed gold price of $1,400 per ounce and a silver price of $17.50 per ounce. M
Slide 60: Slide 60