Kinross Gold Corporation · TSX:K
Kinross Gold — Technical Presentation (September 2017)
26 slides from Kinross Gold's technical presentation, Sep 18, 2017
Slide 1: Tasiast Phase Two and Round Mountain Phase W feasibility study results
September 18 KINROSS GOLD CORPORATION 2017 Tasiast Phase Two and Round Mountain Phase W feasibility study results 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: Decision to Proceed with Tasiast Phase Two and Round Mountain Phase W
ATTRACTIVE DEVELOPMENT PROJECTS DECISION TO PROCEED WITH TASIAST PHASE TWO AND ROUND MOUNTAIN PHASE W PROJECTS • Completed the Phase Two and Phase W feasibility studies with positive results • Reaffirmed Phase Two’s potential to transform Tasiast into a world-class operation, with significant produc
Slide 4: Solid Financial Position
BALANCE SHEET STRENGTH SOLID FINANCIAL POSITION Strong financial position to finance Tasiast Phase 2 and Round Mountain Phase W projects with existing liquidity LIQUIDITY POSITION FINANCIAL FLEXIBILITY • Cash and cash equivalents of $1.1 billion as at June 30, 2017 Increase of $240 million since Q
Slide 5: Tasiast Mill Expansion
TASIAST MILL EXPANSION 55 ATTRACTIVE DEVELOPMENT PROJECTS www.kinross.com
Slide 6: Tasiast Two-Phased Expansion
ATTRACTIVE DEVELOPMENT PROJECTS TASIAST TWO-PHASED EXPANSION Phase Two expected to transform Tasiast into a world-class mine with costs amongst the lowest in our portfolio Production Cost of sales $1,200 800 700 $1,000 Production (thousand ounces) 600 Cost of sales ($/oz.) $800 500 $600 400 300 $400
Slide 7: Phase One Progressing Well
TASIAST MILL EXPANSION PHASE ONE PROGRESSING WELL Phase One construction approximately two-thirds complete • Mechanical installation progressing well: Primary Crusher SAG mill shell fully in place; installation of the gearless motor drive has commenced Apron feeders for stockpile & reclaim tunne
Slide 8: Phase One Progressing Well
TASIAST MILL EXPANSION 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 88 www.kinross.com
Slide 9: 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 Combined Phase One and Phase Two Average annual production (2020-2024) 812,000 ounces Production cost of sales (2020-2024
Slide 10: Operating Efficiencies Enhancing Project
TASIAST MILL EXPANSION 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 inc
Slide 11: 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 12: Tasiast Phase Two
ATTRACTIVE DEVELOPMENT PROJECTS TASAIST PHASE TWO • Expected to transform Tasiast into a world-class operation, offering a rare combination of production scale, low costs and relatively low project execution risk 1212 www.kinross.com
Slide 13: Round Mountain Phase W
ROUND MOUNTAIN PHASE W 1313 ATTRACTIVE DEVELOPMENT PROJECTS www.kinross.com
Slide 14: Enhancing the Phase W Project
ROUND MOUNTAIN PHASE W ENHANCING THE PHASE W PROJECT Operating efficiencies and technical excellence driving feasibility study results Reducing cost structure Production cost of sales ($/oz.) $750 • Lower mining costs, processing costs and G&A $682 • Achieved through improvements to mining and maint
Slide 15: Phase W Overview
ROUND MOUNTAIN PHASE W PHASE W OVERVIEW Phase W is a large zone of mineralization at depth and to west of the open-pit • With completion of the feasibility study, 2.0 million ounces upgraded to proven and probable gold reserves(i) Gold resource estimates down only slightly from year-end: added 1.9
Slide 16: Feasibility Study Results
ROUND MOUNTAIN PHASE W FEASIBILITY STUDY RESULTS Project expected to generate a 13% IRR at an assumed gold price of $1,200 per ounce Current mine plan + Phase W Average annual production (2018-2024) 341,000 gold ounces Production cost of sales (2018-2024) $765 per gold equivalent ounce All-in sustai
Slide 17: Advancing Phase W
ROUND MOUNTAIN PHASE W ADVANCING PHASE W Pending permitting approvals, Phase W construction expected to be complete in Q2 2019 • State and Federal permitting proceeding as planned • Advancing detailed engineering • Procurement activities commencing for long lead items and mining equipment • Strippin
Slide 18: Building Momentum for the Future
2020 2019 Expected 2018 start-up of Expected TASAIST 2017 completion of PHASE TWO TASIAST PHASE W 2016 PHASE ONE construction Expecting a expected to stronger year be completed Delivered at BALD RECORD MOUNTAIN production Building Momentum for the Future 1818 www.kinross.com
Slide 19: Appendix
APPENDIX 1919 TASIAST PHASE TWO AND ROUND MOUNTAIN PHASE W FEASIBILITY STUDY RESULTS www.kinross.com
Slide 20: 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 21: 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 22: 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 23: 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 24: Summary of Feasibility Study Results
ROUND MOUNTAIN PHASE W SUMMARY OF FEASIBILITY STUDY RESULTS Operating Estimates (current mine plan + Phase W) Standalone Phase W Estimates Timeline Operational Metric Estimate Estimate Strip ratio 2.9 Life of mine production 1.5 million ounces Life of mine ore processed 77.6 million tonnes Average g
Slide 25: Sensitivities
ROUND MOUNTAIN PHASE W SENSITIVITIES GOLD PRICE SENSITIVITY ESTIMATES $1,100 $1,200 $1,300 $1,400 IRR 7% 13% 17% 20% (calculated January 1, 2018 forward) NPV $31M $135M $216M $295M (after-tax, 5% discount; calculated January 1, 2018 forward) OIL PRICE SENSITIVITY ESTIMATES $45/bbl $55/bbl $60/bbl $6
Slide 26: Kinross Gold Corporation
KINROSS GOLD CORPORATION 25 York Street, 17th Floor │Toronto, ON │ M5J 2V5 www.kinross.com 2626 www.kinross.com
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