Kinross Gold Corporation · TSX:K
Kinross Gold — Q3 2013 Earnings Presentation
21 slides from Kinross Gold's earnings presentation, Nov 14, 2013
Slide 1: Kinross Gold Corporation Q3 2013 Results Conference Call & Webcast
November 14 KINROSS GOLD CORPORATION 2013 Q3 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: Delivering Strong Operating Performance
OPERATIONAL EXCELLENCE DELIVERING STRONG OPERATING PERFORMANCE • Priority focus on operational excellence and delivering on commitments • 5th consecutive quarter of strong operating performance GOLD EQUIVALENT PRODUCTION COST OF ALL-IN SUSTAINING COST(3) PRODUCTION(1) SALES(2) 1,984,858 $736 $1,124
Slide 5: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION ADDITIONAL CAPITAL REDUCTIONS(4) Actual 2012 spend 1.9 Initial 2013 estimate Identified $150 mm in savings Additional 1.6 savings Capital Expenditures ($ billions) 1.45 1.4 Expecting a significant reduction from 2013 0.8 – 0.9 Full-year Original 2013 Revised 2013 Revis
Slide 6: Third Quarter 2013 Highlights
THIRD QUARTER 2013 HIGHLIGHTS: • 5th consecutive quarter of strong operating and cost performance • Fort Knox and Paracatu achieved record quarterly production • Production commenced at Dvoinoye – on time and on budget • Increased 2013 production guidance to reflect excellent performance • Expect to
Slide 7: Tony Giardini, EVP & Chief Financial Officer
TONY GIARDINI EXECUTIVE VICE-PRESIDENT & CHIEF FINANCIAL OFFICER 77 www.kinross.com
Slide 8: Third Quarter 2013 Financial Results
THIRD QUARTER 2013 FINANCIAL RESULTS (in millions, except ounces and per share AVERAGE REALIZED GOLD amounts) Q3 2012 Q3 2013 % Change PRICE $1,649 Gold equivalent production(1) 672,173 680,580 +1% $1,331 (ounces) $ per gold ounce Gold equivalent sales(1) 665,251 651,104 -2% (ounces) Revenue $1,109.
Slide 9: Maintaining a Solid Balance Sheet
AS AT SEPTEMBER 30, 2013 MAINTAINING A SOLID BALANCE SHEET • Balance sheet strength continues to be a priority objective • Modest net debt position of $1,186 million at September 30, 2013 • No material debt maturities prior to 2016 Only regular principal amortization payments on the Kupol term loa
Slide 10: Third Quarter 2013 Guidance Update
THIRD QUARTER 2013 GUIDANCE UPDATE(4) 2013 GUIDANCE UPDATE ORIGINAL GUIDANCE UPDATE Gold equivalent production 2.4 - 2.6 million ounces 2.6 - 2.65 million ounces Production cost of sales Expected to be in the low end of $740 - $790 ($ per gold equivalent ounce) guidance range All-in sustaining costs
Slide 11: Cost Review & Reduction: Consolidating the Americas
COST REVIEW & REDUCTION CONSOLIDATING THE AMERICAS • Integrating North & South America into one region – the Americas • Opportunity to streamline regional administration Fort Knox • Integration simplifies organization Kettle River - Buckhorn Round Mountain • Enhances ability to share best practices,
Slide 12: Brant Hinze, President & Chief Operating Officer
BRANT HINZE PRESIDENT & CHIEF OPERATING OFFICER 1212 www.kinross.com
Slide 13: North America
OPERATIONAL EXCELLENCE NORTH AMERICA • Region expected to exceed its 2013 production guidance and to be Fort Knox at the low end of its cost of sales guidance • Record quarterly production at Fort Knox: Kettle River - Buckhorn Round Mountain Improved heap leach performance NORTH AMERICA 2013E(4):
Slide 14: South America
OPERATIONAL EXCELLENCE SOUTH AMERICA • Region expected be at the high end of its 2013 production guidance and to be within its cost of sales guidance Paracatu • Paracatu achieved record quarterly production and mill throughput La Coipa Maricunga • Lower production at Maricunga a result of less favou
Slide 15: West Africa
OPERATIONAL EXCELLENCE WEST AFRICA • Region expected to be at the high end of its 2013 production Tasiast guidance and within its cost of sales guidance Chirano • Q3 production at Tasiast slightly impacted by employee strike and a rare heavy rain event WEST AFRICA 2013E(4): 415-480koz. at $890-950/o
Slide 16: Russia
OPERATIONAL EXCELLENCE RUSSIA • Region expected to exceed its 2013 production guidance and to be at the Dvoinoye Kupol low end of its cost of sales guidance • Expansion of the mill to 4,500 tpd successfully completed in July • Dvoinoye project completed on budget and on schedule RUSSIA 2013E(4): 505
Slide 17: Commercial Production at Dvoinoye
RUSSIA COMMERCIAL PRODUCTION AT DVOINOYE • Commenced production on time and on budget • 2013 production: ~30 thousand gold equivalent ounces • Fourth mine Kinross has operated in Russia 1717 www.kinross.com
Slide 18: Tasiast Site Infrastructure Update
WEST AFRICA TASIAST SITE INFRASTRUCTURE UPDATE 20 MW POWER PLANT • Completed construction of basic site infrastructure at Tasiast : 20 MW power plant Reverse osmosis plant Sewage treatment plant Maintenance facilities NEW TRUCK SHOP • Feasibility study on a potential mill expansion expected
Slide 19: Principles for Building Value
PRINCIPLES FOR BUILDING VALUE • Focus on operational excellence • Quality over quantity • Disciplined capital allocation • Maintaining a strong balance sheet 1919 www.kinross.com
Slide 20: 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 21: Kinross Gold Corporation contact details
KINROSS GOLD CORPORATION 25 York Street, 17th Floor │Toronto, ON │ M5J 2V5 www.kinross.com 2121 www.kinross.com