Slide 1: Tasiast analyst & investor tour: Developing a world-class mine
October 3-4 KINROSS GOLD CORPORATION 2017 Tasiast analyst & investor tour: Developing a world-class mine 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: Welcome to the Tasiast Mine Tour
WELCOME TO THE TASIAST MINE TOUR 33 Tom Elliott – Senior Vice-President, Investor Relations & Corporate Development www.kinross.com
Slide 4: Introductions & Agenda
Presenters and Q&A Panel Mike Sylvestre Regional Vice-President, Africa Guy Bourassa Vice-President and Project Director, Tasiast Project Paul Tomory Chief Technical Officer John Sims Vice-President, Resource Geology & Brownfields Exploration (Q.P.) Tom Elliott Senior Vice-President, Investor Relati
Slide 5: Tasiast Highlights
DEVELOPING A WORLD-CLASS MINE TASIAST HIGHLIGHTS • Highly prospective district with significant exploration potential World-class orebody: 8.0M oz. of proven and probable reserves, 3.1M oz. of measured & indicated gold resources and 0.4M oz. of inferred resource estimates(i) Accelerating drill p
Slide 6: Tasiast: Historical Context
DEVELOPING A WORLD-CLASS MINE TASIAST: HISTORICAL CONTEXT Focus has been to right-size the processing capacity to capture the full value and potential of Tasiast’s large mineral resource estimate 2014 2015 2016 2017 2018 2019 2020 Feasibility Study Results Two-phased expansion Phase One Phase Two 38
Slide 7: Mauritania: Location
Morocco map Canary Islands Algeria Western Sahara Mali Tasiast Mauritania Nouakchott (capital) Senegal MAURITANIA: LOCATION 77 www.kinross.com
Slide 8: Geology & Exploration
GEOLOGY & EXPLORATION 88 John Sims - Vice-President, Resource Geology & Brownfields Exploration (Q.P.) www.kinross.com
Slide 9: Geology Overview
GEOLOGY & EXPLORATION GEOLOGY OVERVIEW • Aouéouat greenstone belt hosts all of the known Tasiast deposits and most of current exploration prospects 80 km x 8 km 312 km2 mining lease Tasiast Geology 3,118 km2 exploration licences • Aouéouat belt shares similarities with other Late Archaean terr
Slide 10: Tasiast Cross-Section
GEOLOGY & EXPLORATION TASIAST CROSS-SECTION Looking North - West Branch AA’ cross-section (12.5m window) A A’ Reserve pit outline September 2017 pit outline Resource pit outline Plan view A A’ Lithology Dyke BIF Sediments Felsite Diorite (GDI) 1010 www.kinross.com
Slide 11: Tasiast Sud
GEOLOGY & EXPLORATION TASIAST SUD Encouraging results from C6.13 and C6.15 in the Tasiast Sud Area • Tamaya: approximately 335k oz. of measured & indicated gold resources(i) defined in 2015 • Recent drilling in the Tasiast Sud area has focused C6.13 on the C6.13 and C6.15 deposits in the Tasiast Sud
Slide 12: Tasiast Sud: 2017/2018 Drill Program
GEOLOGY & EXPLORATION TASIAST SUD: 2017/2018 DRILL PROGRAM N LEGEND Mafic Dyke Iron Formation • Following positive results in H1 2017, accelerated C6.13 Siltstone Greywacke drill program underway in H2 2017 Mica-Schist Felsite A Amphibolite Focus is on definition drilling and resource B Diorite Ta
Slide 13: Cross Sections: C6.13 & C6.15
GEOLOGY & EXPLORATION CROSS SECTIONS: C6.13 & C6.15 C6.13 (A) C6.13 (B) NW SE NW SE 1 5 1 2 Iron Formation 2 TOFR 3 6 3 TOFR 1 7m @ 2.68g/t Au 4 7 2 9m @ 2.15 g/t Au Iron 1 15m @ 4.64 g/t Au 3 4 2 17m @ 11.42 g/t Au 15m @ 2.14 g/t Au 5 6 Formation 4 8m @ 3.03 g/t Au 3 12m @ 1.66 g/t Au 5 5m @ 2.98 g
Slide 14: Drilling Statistics
GEOLOGY & EXPLORATION DRILLING STATISTICS Tasiast Sud area has been a large focus of exploration and resource definition activities Tasiast Sud drill hole data by year (metres) Planned for Planned for 2013 2014 2015 2016 H1 2017 H2 2017 2018 C6.13 4,481 3,070 75 2,332 7,947 13,000 C6.14 3,500 3,700
Slide 15: Current Operation
CURRENT OPERATION 1515 Mike Sylvestre – Regional Vice-President, Africa www.kinross.com
Slide 16: Tasiast Site Layout
Airstrip Camp 1 2 New SAG mill New stockpile Phase One and Two expansions New crusher 9 West Branch Pit 10 Truck shop 3 8 7 4 6 Piment pits 5 Dump leach Current tailings facility Power Plant ADR plant Phase One tailings facility N TASIAST SITE LAYOUT 16 16 MINE TOUR AGENDA www.kinross.com
Slide 17: Overview
CURRENT OPERATION OVERVIEW MINING • Conventional open-pit • Ore currently sourced from two pits: Piment West Branch • Average mining rate: ~200k t/d CURRENT FLEET • 7 CAT 6060 shovels • 42 CAT 793D haul trucks PROCESSING • Existing CIL: averaging 8,500 t/d • Dump leach 1717 www.kinross.com
Slide 18: Improved Mill Performance
CURRENT OPERATION IMPROVED MILL PERFORMANCE Strong mill throughput a result of continuous improvement efforts • Conducted comprehensive reviews of crushing and grinding circuit to identify opportunities for improvement • Completed upgrades to the crushing circuit to provide smaller product size with
Slide 19: Significant Operational Improvements
CURRENT OPERATION SIGNIFICANT OPERATIONAL IMPROVEMENTS Mill now averages ~8,500 t/d and can reach as high as 9,000 t/d Average from November 2015 9,000 to March 2017 ~20% increase 7,000 May-August 2016 Average from impacted by work August 2013 to stoppage October 2015 5,000 3,000 Aug‐13 Nov‐13 Feb‐1
Slide 20: Productivity Improvements
CURRENT OPERATION PRODUCTIVITY IMPROVEMENTS Focus on productivity has resulted in lower costs Mining Cost ($/t mined) Contractors & Admin $2.18 • Outsourced some mining services 0.13 $1.96 Labour 0.27 • Increased labour productivity and reduced headcount 0.53 Drill / Blast Consumables 0.44 • Optimiz
Slide 21: Operating Efficiencies Enhancing Project
CURRENT OPERATION OPERATING EFFICIENCIES ENHANCING PROJECT Recent operating and processing enhancements have positively benefitted both Phase One and Phase Two expansion projects • Recent performance outperforming study • Further reduction in processing costs expected as estimates Phase Two increase
Slide 22: Mauritania Highlights
CURRENT OPERATION MAURITANIA HIGHLIGHTS Kinross has successfully operated in Mauritania since 2010 • Democratic republic that gained independence in Government has expressed its support 1960 for the expansion project: • Mining-friendly jurisdiction: Well-developed, competitive mining law "We suppo
Slide 23: Corporate Responsibility at Tasiast
CURRENT OPERATION CORPORATE RESPONSIBILITY AT TASIAST Engaging with stakeholders • Established stakeholder engagement programs consistent with Kinross standards and international best practice • Integration of CR considerations in key operational functions Competency-based hiring Contractor Comp
Slide 24: 90% of Employees are Mauritanian
CURRENT OPERATION 90% OF EMPLOYEES ARE MAURITANIAN Building a workforce of Mauritanian nationals • 90% of TMLSA employees are Mauritanians 2016 Statistics(i) of workforce composed • Investing in training and development programs. 90% of Mauritanian Since 2010, we have invested: nationals ~$10 mill
Slide 25: Building Positive Employee Relationships
CURRENT OPERATION BUILDING POSITIVE EMPLOYEE RELATIONSHIPS Employees Mauritanization Plan • Signed a new 3-year collective labour • Reached a mutually-acceptable agreement with unionized employees Mauritanization Plan to increase the number in October 2016 of local workers at Tasiast Process is pr
Slide 26: Tasiast Mill Expansion: Phase One
TASIAST MILL EXPANSION: PHASE ONE 2626 Guy Bourassa - Vice-President & Project Director, Tasiast Project www.kinross.com
Slide 27: Phase One: Expansion to 12,000 t/d
TASIAST EXPANSION PROJECT PHASE ONE: EXPANSION TO 12,000 T/D • Leverages existing mill infrastructure to increase throughput to 12,000 t/d from 8,000 t/d • Includes installation of an oversized 40’ SAG mill and gyratory crusher • Enhances processing of the harder, higher grade West Branch ore PHASE
Slide 28: Phase One Progressing Well
TASIAST MILL EXPANSION PHASE ONE PROGRESSING WELL Phase One construction approximately 70% complete • Mechanical installation progressing well: Primary Crusher SAG mill shell fully in place Installation of gearless motor drive progressing Apron feeders for crusher & reclaim tunnel now in place
Slide 29: SAG Mill
SAG MILL 29 29 PHASE ONE PROGRESSING WELL www.kinross.com
Slide 30: Cyclone Towers
CYCLONE TOWERS 30 30 PHASE ONE PROGRESSING WELL www.kinross.com
Slide 31: Leach Tanks
LEACH TANKS 31 31 PHASE ONE PROGRESSING WELL www.kinross.com
Slide 32: New Tailings Facility
NEW TAILINGS FACILITY 32 32 PHASE ONE PROGRESSING WELL www.kinross.com
Slide 33: Tasiast Mill Expansion: Phase Two
TASIAST MILL EXPANSION: PHASE TWO 3333 Paul Tomory – Chief Technical Officer www.kinross.com
Slide 34: Phase Two: Expansion to 30,000 t/d
TASIAST EXPANSION PROJECT PHASE TWO: EXPANSION TO 30,000 T/D • Installation of an incremental 18,000 t/d of throughput capacity for a total combined capacity of 30,000 t/d • Project consists of: • Replacing two 14’ ball mills with a new, larger 27’ ball mill • Expansion of power generation capacity
Slide 35: Phase Two Feasibility Study Results
TASIAST MILL EXPANSION PHASE TWO FEASIBILITY STUDY RESULTS Phase Two expansion expected to transform Tasiast into a world-class mine with low costs and a long estimated mine life Estimates Combined Phase One and Phase Two Average annual production (2020-2024) 812,000 ounces Production cost of sales
Slide 36: Feasibility Study Shows Improved Economics
TASIAST MILL EXPANSION FEASIBILTY STUDY SHOWS IMPROVED ECONOMICS Incremental IRR of 24% for the Phase Two stand-alone project Improved economics are expected as a result of: Lower estimated initial Improved operating Mine plan optimization capital cost estimates • Initial capital estimate • Producti
Slide 37: West Branch Planned Mining Sequence
TASIAST MILL EXPANSION WEST BRANCH PLANNED MINING SEQUENCE Looking North WB3 WB4 WB5 A A’ 2018 2019 2023 2019 2020 2020 2018 PLAN VIEW 2021 2024 2021 2019 2020 2022 2025 N 2023 2026 2024 2027 A A’ Au Grade (g/t) 0 – 0.4 0.4 – 1.1 1.1 – 1.5 1.5 – 2 >2 100 m 3737 www.kinross.com
Slide 38: Additional Information
TASIAST MILL EXPANSION ADDITIONAL INFORMATION Annual estimates ‘20 ‘21 ‘22 ‘23 ‘24 ‘25 ‘26 ‘27 ‘28 ‘29 Total mined 98 93 82 90 75 56 47 30 7 0 (Mt) Strip ratio 12.6 15.5 4.5 4.6 3.8 8.8 6.0 2.1 2.7 0.3 (Waste:Ore) Grade processed 2.1 1.5 2.9 3.0 3.0 1.4 1.9 2.0 0.9 0.8 (g/t) Mill feed tonnes 4.4 5.3
Slide 39: Annual Production Estimates
TASIAST MILL EXPANSION ANNUAL PRODUCTION ESTIMATES Production expected to average 812,000 gold ounces over the first 5 years (2020-2024) 1,000 Estimated Production (thousand ounces) 750 500 250 0 2016A 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E 3939 www.kinross.com
Slide 40: Phase Two Capital Estimate
TASIAST MILL EXPANSION PHASE TWO CAPITAL ESTIMATE Phase Two initial capital cost expected to be $590 million Estimated Initial Capital Cost Water Supply ($50M) • Raw water is currently supplied from brackish water Estimate ($M) borefield located 64 km west of the mine • Phase Two project includes up
Slide 41: Advancing Phase Two
TASIAST MILL EXPANSION ADVANCING PHASE TWO Phase Two expansion expected to reach commercial production in Q3 2020 • Project owner’s team established • Finalizing commercial terms for EPCM package • Currently advancing critical packages • Initial construction expected to begin early 2018 Constructi
Slide 42: Appendix: Tasiast Phase Two Feasibility Study Results
APPENDIX 4242 TASIAST PHASE TWO FEASIBILITY STUDY RESULTS www.kinross.com
Slide 43: Summary of Feasibility Study Results
TASIAST EXPANSION PROJECT SUMMARY OF FEASIBILITY STUDY RESULTS Operating Estimates (Phase One & Two combined) Standalone Phase Two Estimates Timeline Operational Metric Estimate Estimate Total tonnes mined 438 million Initial capital $590 million Strip ratio 6.4 2020-2024 Average CIL grade processed
Slide 44: Sensitivities
TASIAST EXPANSION PROJECT SENSITIVITIES GOLD PRICE SENSITIVITY ESTIMATES $1,100 $1,200 $1,300 $1,400 IRR (Phase Two Standalone) 19% 24% 28% 31% (calculated January 1, 2018 forward) NPV (Phase One and Two Combined) $977M $1.43B $1.83B $2.22B (after-tax, 5% discount; calculated January 1, 2018 forward
Slide 45: Kinross Gold Corporation
KINROSS GOLD CORPORATION 25 York Street, 17th Floor │Toronto, ON │ M5J 2V5 www.kinross.com 4545 www.kinross.com