Kinross Gold Corporation · TSX:K
Kinross Gold — Q1 2013 Earnings Presentation
22 slides from Kinross Gold's earnings presentation, May 8, 2013
Slide 1: Kinross Gold Corporation Q1 2013 Results Conference Call & Webcast
May 08 KINROSS GOLD CORPORATION 2013 Q1 2013 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, including any information as to the future performance of Kinross, constitute “forward looking statements” with
Slide 3: J. Paul Rollinson, Chief Executive Officer
J. PAUL ROLLINSON CHIEF EXECUTIVE OFFICER 33 www.kinross.com
Slide 4: Focus on Operational Fundamentals: Solid Operating Results
FOCUS ON OPERATIONAL FUNDAMENTALS SOLID OPERATING RESULTS • Strong performance from operations delivered solid results in Q1 2013 GOLD EQUIVALENT PRODUCTION COST OF ALL-IN SUSTAINING COST(3) PRODUCTION(1) SALES(2) $738 $1,180 648,897 $729 588,358 $1,038 $ per gold equivalent ounce $ per gold ounce O
Slide 5: Disciplined Project Development: Update on Projects
DISCIPLINED PROJECT DEVELOPMENT UPDATE ON PROJECTS DVOINOYE • Expect to commence full production in the second half of the year TASIAST EXPANSION PROJECT • Pre-feasibility study completed • Advancing to a feasibility study expected to be complete in Q1 2014 • Expect to make a decision whether to pro
Slide 6: Tony Giardini, Executive Vice-President & Chief Financial Officer
TONY GIARDINI EXECUTIVE VICE-PRESIDENT & CHIEF FINANCIAL OFFICER 66 www.kinross.com
Slide 7: First Quarter 2013 Financial Results
FIRST QUARTER 2013 FINANCIAL RESULTS Realized Margin(5) % (in millions, except ounces and per share amounts) Q1 2012 Q1 2013 Gold Price Change $895/oz. $1,624/oz. Gold equivalent production(1) 588,358 648,897 10% (ounces) Gold equivalent sales(1) 604,527 645,252 7% (ounces) Revenue $1,005.1 $1,058.1
Slide 8: First Quarter 2013 Financial Results Highlights
FIRST QUARTER 2013 FINANCIAL RESULTS HIGHLIGHTS REVENUE ADJUSTED CASH FLOW(4) ADJUSTED NET EARNINGS(4) +5% +29% -13% $196 $1,058 $412 $171 $1,005 $319 $0.36/sh $0.17/sh US$ millions $0.15/sh $0.28/sh Q1 2012 Q1 2013 Q1 2012 Q1 2013 Q1 2012 Q1 2013 (4) Refer to endnote #4. 88 www.kinross.com
Slide 9: Maintaining a Strong Balance Sheet
AS AT MARCH 31, 2013 MAINTAINING A STRONG BALANCE SHEET • Preserving balance sheet strength a priority • Repurchased convertible senior notes totaling $455 million on March 15, 2013 Redeemed in cash the remaining $5 million of the convertible on April 30, 2013 Cumulative debt balance: $2.2 billi
Slide 10: Brant Hinze, President & Chief Operating Officer
BRANT HINZE PRESIDENT & CHIEF OPERATING OFFICER 1010 www.kinross.com
Slide 11: First Quarter 2013 Operating Results Highlights
FIRST QUARTER 2013 OPERATING RESULTS HIGHLIGHTS • Strong Q1 performance from operations delivers solid first quarter results • On target to meet 2013 production and cost of sales guidance RUSSIA Q1 production: 124,498 oz. Q1 cost of sales: $548/oz. Kupol Fort Knox Kettle River - Buckhorn WEST AFRICA
Slide 12: North America: Focus on Operational Fundamentals
FOCUS ON OPERATIONAL FUNDAMENTALS NORTH AMERICA • Region on track to meet both production and production cost of sales guidance for 2013 Fort Knox • Slightly harder ore encountered at Fort Knox not expected to Kettle River - Buckhorn continue in Q2 Round Mountain • Outstanding quarter at Kettle Rive
Slide 13: Russia: Focus on Operational Fundamentals
FOCUS ON OPERATIONAL FUNDAMENTALS RUSSIA • Region on track to meet both production and production cost of sales Kupol guidance for 2013 • As anticipated, Kupol mined an area of lower-grade material • Mill throughput and recoveries remained strong RUSSIA 2013E(6): 505-535koz. at $550-580/oz. Q1 PRODU
Slide 14: West Africa: Focus on Operational Fundamentals
FOCUS ON OPERATIONAL FUNDAMENTALS WEST AFRICA • Region on track to meet both production and production cost of sales guidance for 2013 Tasiast Chirano • Tasiast achieved highest quarterly production level since acquisition WEST AFRICA • Chirano performed ahead of expectations for the quarter 2013E(6
Slide 15: South America: Focus on Operational Fundamentals
FOCUS ON OPERATIONAL FUNDAMENTALS SOUTH AMERICA • Region on track to meet both production and production cost of sales guidance for 2013 Paracatu • Mill recoveries and throughput at Paracatu continued to show La Coipa Maricunga improvement SOUTH AMERICA • Lower production at Maricunga result of less
Slide 16: Dvoinoye Remains on Schedule
DISCIPLINED PROJECT DEVELOPMENT DVOINOYE REMAINS ON SCHEDULE • Full production expected to commence in Surface Infrastructure the second half of 2013 • Underground development progressed ahead of plan • Surface infrastructure continues to progress on schedule Underground Development • Expansion of t
Slide 17: Tasiast Expansion Advances to Feasibility Study
DISCIPLINED PROJECT DEVELOPMENT TASIAST EXPANSION ADVANCES TO FEASIBILITY STUDY • Pre-feasibility study selected optimum mill size for Tasiast expansion Proceeding to a feasibility study on a 38,000 tpd mill Expected to be complete in Q1 2014 • Feasibility study will explore a number of options
Slide 18: Tasiast 2013E Capital Expenditures
DISCIPLINED PROJECT DEVELOPMENT TASIAST 2013E CAPITAL EXPENDITURES(6) ITEM ESTIMATE • Continued expansion of fleet to support a ramp up to 100 Mine fleet & truck shops $139 million million tonne per annum mining rate this year • Establishment of maintenance facilities Pre-stripping $63 million • Req
Slide 19: Tasiast Infrastructure Development
DISCIPLINED PROJECT DEVELOPMENT TASIAST INFRASTRUCTURE DEVELOPMENT Truck Shop • New camp completed in Q1 2013 • Infrastructure improvements nearing completion: Power station Truck shop Other facilities • Engineering, permitting and bidding for new On-Site Power Plant permanent seawater supply
Slide 20: Operating Mines in 4 Core Regions
KINROSS TODAY OPERATING MINES IN 4 CORE REGIONS • Diversified portfolio of assets located in some of the world’s best gold districts producing 2.4 – 2.6 mm oz. in 2013(6) RUSSIA 2013E: 505-535k oz. Kupol Fort Knox Kettle River - Buckhorn Round Mountain WEST AFRICA 2013E: 415-480k oz. FOUNDATION FOR
Slide 21: Endnotes
ENDNOTES 1) Unless otherwise noted, gold equivalent production, gold equivalent ounces sold and production cost of sales figures in this presentation are based on Kinross’ 90% share of Chirano production and do not include production from Crixas, due to the sale of Kinross’ 50% ownership completed J
Slide 22: Kinross Gold Corporation, Toronto
KINROSS GOLD CORPORATION 25 York Street, 17th Floor │Toronto, ON │ M5J 2V5 www.kinross.com 2222 www.kinross.com