Kinross Gold Corporation · TSX:K
Kinross Gold — Q2 2017 Earnings Presentation
27 slides from Kinross Gold's earnings presentation, Aug 3, 2017
Slide 1: Kinross Gold Corporation Q2 2017 Results Conference Call & Webcast
August 3 KINROSS GOLD CORPORATION 2017 Q2 2017 Results Conference Call & Webcast 11 www.kinross.com
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 and responses to questions, including but not limited to any information as to the future performance of Kinross
Slide 3: 2017 Priorities
2017 Priorities 3 3 www.kinross.com
Slide 4: Deliver Operational Excellence
2017 PRIORITIES DELIVER OPERATIONAL EXCELLENCE Continuing our track record of meeting or outperforming our operational targets • Operations continue to deliver solid results Stand-out quarter from Round Mountain – delivering higher production with lowest quarter cost of sales per ounce in nearly f
Slide 5: Advance Tasiast Two-Phased Expansion
2017 PRIORITIES ADVANCE TASIAST TWO-PHASED EXPANSION Combined Phase One and Two expansions expected to transform Tasiast into our largest producer with costs amongst the lowest in our portfolio Phase One progressing well • Approximately 55% complete • Project continues to be on time and on budget •
Slide 6: Develop Bald Mountain's Potential
2017 PRIORITIES DEVELOP BALD MOUNTAIN’S POTENTIAL Kinross envisions Bald Mountain as a long-life asset with significant upside potential and mineral resource growth • On track to double production with Bald Mountain Quarterly Production & reduced costs, compared with 2016(1) Cost of Sales 60000 • Tr
Slide 7: Advance Organic Projects
2017 PRIORITIES ADVANCE ORGANIC PROJECTS Organic projects offer opportunities to expand production or increase mine life at our operations Round Mountain Phase W September Northeast Moroshka Nevada Russia Russia • Potential opportunity to • High-grade deposit located • Located approximately 4 km ext
Slide 8: Kinross Value Proposition
EXCELLENT operational track record Balance sheet STRENGTH ATTRACTIVE organic projects COMPELLING relative value Kinross Value Proposition www.kinross.com 88
Slide 9: Financial Strength & Flexibility
Financial Strength & Flexibility 9 9 www.kinross.com
Slide 10: Q2 2017 Highlights: Financial Results
Q2 2017 Highlights FINANCIAL RESULTS All figures in US$ millions, except ounces, per share amounts and per ounce amounts Q2 2017 Q2 2016 H1 2017 H1 2016 Attributable gold equivalent ounces (oz.)(2) Produced 694,874 671,267 1,366,830 1,358,730 Sold 683,584 686,752 1,329,530 1,346,149 Average realized
Slide 11: 2017 Outlook
FINANCIAL DISCIPLINE 2017 OUTLOOK(1) Capital Expenditures ($ millions) Region Sustaining Non-Sustaining Regional Total Americas $295 $65 $360 West Africa $80 $375 $455 Russia $40 $15 $55 Corporate $5 - $5 TOTAL $420 $455 $875 Capitalized Interest $25 TOTAL KINROSS $900 +/- 5% Other Expenditures Prev
Slide 12: Solid Financial Position
BALANCE SHEET STRENGTH SOLID FINANCIAL POSITION Maintaining balance sheet strength & financial flexibility remain priority objectives LIQUIDITY POSITION MAINTAINING FINANCIAL FLEXIBILITY • Cash and cash equivalents of $1.1 billion as at June 30, 2017 Increase of $240 million since Q1 2017 As at Ju
Slide 13: Manageable Debt Profile
FINANCIAL DISCIPLINE MANAGEABLE DEBT PROFILE No significant debt maturities prior to 2021 • $500 million debt offering completed in July Debt Ratings Used net proceeds and available cash on Agency Rating hand to repay $500 million term loan due S&P BB+ (Positive) 2020 Moody’s Ba1 (Stable) • As a r
Slide 14: Operating Highlights
Operating Highlights 14 14 www.kinross.com
Slide 15: Americas
OPERATING HIGHLIGHTS AMERICAS • Continued strong performance at Round Mountain • 2017 production expected to double at Bald Mountain with lower costs compared to 2016 Production expected to be heavily weighted towards H2 2017, particularly the fourth quarter • Kettle River-Buckhorn concluded minin
Slide 16: West Africa
OPERATING HIGHLIGHTS WEST AFRICA • Strong performance continued at Tasiast in Q2 2017 Slightly lower grades as mining through lower grade sequence of mine plan • Production slightly lower than Q1 2017 at Chirano as surface mining was completed as scheduled • Mining now focused on the higher grade
Slide 17: Russia
OPERATING HIGHLIGHTS RUSSIA • Production lower as a result of planned decline in grades Costs remain among the lowest in the portfolio • Development of September Northeast project completed on time and on budget Began processing ore through Kupol mill in June as planned • Completed construction
Slide 18: Attractive Development Projects
Attractive Development Projects 18 18 www.kinross.com
Slide 19: Advancing Organic Projects
ATTRACTIVE DEVELOPMENT PROJECTS ADVANCING ORGANIC PROJECTS Organic projects spanning all 3 of our regions offer opportunities to expand production or extend mine life at our operations Q2 2018 Q1 2018 Tasiast Phase 1 Expected to reach full Q4 2017 commercial production Q3 2017 La Coipa Phase 7 Secto
Slide 20: Tasiast Two-Phased Expansion
ATTRACTIVE DEVELOPMENT PROJECTS TASIAST TWO-PHASED EXPANSION Phase One construction ~55% complete; expect full commercial production in Q2 2018 • Mechanical installation progressing well: Primary Crusher SAG mill shell fully in place; trunnions and bearings currently being installed Apron feeder
Slide 21: Tasiast Phase One Progressing Well
ATTRACTIVE DEVELOPMENT PROJECTS TASIAST PHASE ONE PROGRESSING WELL Phase One on schedule & on budget with full commercial production expected in Q2 2018 SAG mill Reclaim tunnel Leach tanks Oxygen plant 2121 www.kinross.com
Slide 22: Bald Mountain Vantage Complex
ATTRACTIVE DEVELOPMENT PROJECTS BALD MOUNTAIN VANTAGE COMPLEX Vantage Complex (South area) • Detailed engineering progressing on schedule • Contemplates construction of a new heap leach facility and related infrastructure Design includes additional 68M tonnes of capacity for both the known resourc
Slide 23: Kupol Vein System
EXPLORATION UPDATE KUPOL VEIN SYSTEM Mineralization open in certain zones, with greatest potential for near-term extensions to the north and south • Completed 44,000 meters of core drilling at North and South extensions in H1 2017 with encouraging results • Commencing geological modelling & evaluati
Slide 24: Tasiast Sud
EXPLORATION TASIAST SUD Accelerating drill program and initiating pre-feasibility study at Tasiast Sud • Drilling focused on the C6.13 and C6.15 deposits in the Tasiast Sud area Located immediately south of the Tasiast mine and west of the Tamaya deposit C6.13 • Completed 13,000 metres of drilling
Slide 25: Building Momentum for the Future
2020E Expected start-up of 2018E potential TASIAST PHASE TWO TASIAST PHASE 2017E ONE expected to reach full commercial 2016 Stronger year production expected at Delivered SOLID BALD MOUNTAIN PRODUCTION of 2.8Moz. Building Momentum for the Future 2525 www.kinross.com
Slide 26: Endnotes
ENDNOTES 1) For more information regarding Kinross’ production, cost, overhead expense and capital expenditures outlook for 2017, please refer to the news releases dated February 15, 2017 and August 2, 2017, both of which are available on our website at www.kinross.com. Kinross’ outlook for 2017 rep
Slide 27: Kinross Gold Corporation
KINROSS GOLD CORPORATION 25 York Street, 17th Floor │Toronto, ON │ M5J 2V5 www.kinross.com 2727 www.kinross.com