Kinross Gold Corporation · TSX:K
Kinross Gold — Shareholder Meeting (May 2017)
33 slides from Kinross Gold's shareholder meeting presentation, May 3, 2017
Slide 1: Building Value. 2017 Annual General Meeting of Shareholders
Building Value. 2017 Annual General Meeting of Shareholders
Slide 2: 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, constitute “forward looking statements” within the
Slide 3: Senior Leadership Team
Geoff Gold Gina Jardine Tony Giardini Lauren Roberts Paul Tomory EVP, Corporate Development, SVP, Human Resources Chief Financial Officer Chief Operating Officer Chief Technical Officer External Relations & Chief Legal Officer Senior Leadership Team
Slide 4: Strong Track Record: Consistently Meeting or Outperforming Targets
STRONG TRACK RECORD 2012 2013 2014 2015 2016 2017E(i) MET or EXCEEDED annual production guidance On Track MET or came in UNDER annual cost of sales guidance On Track MET or came in UNDER annual capital expenditures guidance On Track (i) Refer to endnote #1. Consistently
Slide 5: Consistently Delivering
Operational EXCELLENCE Balance Sheet STRENGTH DISCIPLINED Growth RESPONSIBLE Mining Consistently Delivering
Slide 6: 2016 Highlights
DELIVERED OPERATIONAL EXCELLENCE One of industry’s top performers in HEALTH AND SAFETY RECORD PRODUCTION 2.8M gold equivalent ounces 5 CONSECUTIVE YEARS meeting or exceeding guidance 2016 Highlights
Slide 7: Strong Operating Performance in all 3 Regions
RUSSIA AMERICAS WEST AFRICA Approximately 60% of our Ramping up production & Outperformed expectations annual production reducing costs Strong Operating Performance in all 3 Regions 2016 Highlights
Slide 8: 2016 Highlights
STRENGTHENED OUR BALANCE SHEET $1 BILLION operating cash flow $250 MILLION debt repaid $827 MILLION cash and cash equivalents 2016 Highlights
Slide 9: 2017 Priorities
2017 Priorities
Slide 10: Deliver Operational Excellence
Continue our 2016 2016 2017 Guidance(i) TRACK RECORD Guidance Results Gold equivalent of meeting or production (Moz.) 2.7 to 2.9 2.8 2.5 to 2.7 outperforming our Production cost of operational targets sales (US$/oz.)(ii) $675 to $735 $712 $660 to $720 All-in sustaining cost $890 to $990 $984 $925 to
Slide 11: Deliver Operational Excellence: First Quarter Results
FIRST QUARTER RESULTS Strong start to the year STRONG PRODUCTION 671,956 Au eq. oz. GENERATED $250M of adjusted operating cash flow(ii) ON TRACK to meet 2017 guidance (ii) Refer to endnote #2. Deliver Operational Excellence 2017 PRIORITIES
Slide 12: Maintain Balance Sheet Strength
Proforma Liquidity Position(iii) SALE OF CERRO CASALE further strengthens financial position $1.1B ~$1.1 BILLION(iii) of cash on the balance sheet $2.5B at Mar. 31, 2017 WELL-POSITIONED $1.4B to invest in strategic priorities & development projects Cash, cash equivalents and restricted cash Undrawn
Slide 13: Advance Tasiast Two-Phased Expansion
Combined PHASE ONE Phase One Estimates Phase Two Estimates and TWO expansions Average annual expected to transform production 409,000 ounces 777,000 ounces Tasiast into our Production cost of $535 per ounce $460 per ounce sales LARGEST PRODUCER All-in sustaining cost $760 per ounce $665 per ounce wi
Slide 14: Tasiast Phase One: On Schedule & On Budget
TASIAST PHASE ONE Project is progressing well: ON SCHEDULE & ON BUDGET Expected to reach full production in Q2 2018 Advance Tasiast Two-Phased Expansion 2017 PRIORITIES
Slide 15: Tasiast Mill Expansion: Phase One
TASIAST MILL EXPANSION Realizing the potential of a world-class orebody PHASE ONE: OPTIMIZES FRONT-END OF PROCESS FACILITY Existing ball mills Gyratory Ore Oversized Leaching Refining crusher stockpile SAG mill
Slide 16: Tasiast Mill Expansion: Phase Two
TASIAST MILL EXPANSION Realizing the potential of a world-class orebody PHASE TWO: INCREMENTAL CAPACITY AT BACK END Gyratory Ore Oversized New, larger ball Additional leaching Thickening crusher stockpile SAG mill mill capacity
Slide 17: Phase Two Feasibility Study: Q3 2017
Combined PHASE ONE Phase One Estimates Phase Two Estimates and TWO expansions Average annual expected to transform production 409,000 ounces 777,000 ounces Tasiast into our Production cost of $535 per ounce $460 per ounce sales LARGEST PRODUCER All-in sustaining cost $760 per ounce $665 per ounce wi
Slide 18: Continue to Develop Bald Mountain's Potential
Proven & Probable Gold Reserve Estimates(iv) DOUBLED GOLD RESERVE (million ounces) estimates ahead of schedule South area +0.57 2.1 Bald Mountain expected to North area +0.68 DOUBLE PRODUCTION and reduce costs in 2017 1.1 -0.23 Production View Bald Mountain as a long- depletion life asset with SIGNI
Slide 19: Advance Organic Projects & Exploration Targets
ORGANIC PROJECTS spanning all 3 of our operating regions Opportunities to EXPAND PRODUCTION or extend MINE LIFE at our operations Advance Organic Projects & Exploration Targets 2017 PRIORITIES
Slide 20: Advance Organic Development Projects: Round Mountain
Round Mountain Phase W Nevada Phase 2 Current Pit Phase 1 moz/T 0.005 0.07 0.01 0.08 0.02 0.09 0.03 0.10 0.04 0.11 0.05 0.12 0.06 For additional information, please see Kinross’ news release dated February 15, 2017 and Appendices A and B, which are available on our website at www.kinross.com. Advanc
Slide 21: Advance Organic Development Projects: Russia Satellite Deposits
Satellite Deposits Russia Development of satellite deposits located near KUPOL and DVOINOYE in advanced stages Advance Organic Development Projects 2017 Priorities
Slide 22: Advance Organic Development Projects: Kupol Vein System
Kupol Vein System Targeting extensions of known zones of mineralization Looking West Big Bend North Extension/Star 650 SE Extension ~1.8 km Geochemical Anomaly Au g/t >5 0 1 km For additional information, please see Kinross’ news release dated February 15, 2017 and Appendices A and B, which are avai
Slide 23: Advance Organic Development Projects: Fort Knox and Kettle River
Fort Knox Kettle River Alaska Washington State Intersected good grades in the EAST Promising opportunities in the AND SOUTH Wall of the existing pit CURLEW DISTRICT Expect to add to INFERRED INFILL DRILL program planned to resource estimates in 2017 test extensions of mineralized zones For additiona
Slide 24: Building Momentum for the Future
2020E Expected start-up 2018E of potential TASIAST PHASE TWO TASIAST PHASE 2017E ONE expected to ramp up to full 2016 Stronger year production expected at Delivered SOLID BALD MOUNTAIN PRODUCTION of 2.8M ounces Building Momentum for the Future
Slide 25: Culture of Technical Excellence and Fiscal Discipline
Focused on building TECHNICAL BENCH STRENGTH Developing our FUTURE LEADERS Culture of Technical Excellence and Fiscal Discipline
Slide 26: Commitment to Responsible Mining
Commitment to HEALTH AND SAFETY Protecting the ENVIRONMENT Engaging with our STAKEHOLDERS Community PARTNERSHIPS Commitment to Responsible Mining
Slide 27: Commitment to Responsible Mining
+123,000 Stakeholder interactions $2 BILLION in-country spending 97% of workforce from host countries STRONG environmental record Commitment to Responsible Mining
Slide 28: Investing in our Communities
PARTNERSHIP WITH PROJECT C.U.R.E. Providing medical supplies to Ghana & Mauritania Investing in our Communities
Slide 29: Investing in our Communities
PARTNERSHIP WITH RECLAMATION ACTIVITIES PROJECT C.U.R.E. Successfully restored fish Providing medical supplies to habitats near our Fort Knox Ghana & Mauritania mine in Alaska INTEGRAR MOBILE CLINICS Supporting youth of Supporting access to health Paracatu, Brazil with care for remote communities ed
Slide 30: Compelling Relative Value
Kinross 71% 2016 SHARE PRICE Base Metals 52% PERFORMANCE Precious Metals 50% Materials 39% S&P/TSX Sub Indices Energy 36% Industrials 23% Financials 19% S&P / TSX 18% Telecom 14% Utilities 13% Consumer Discr. 8% Consumer Staples 8% Gold Price ($/oz.) 7% Real Estate 5% Technology 3% Health Care -44%
Slide 31: Consistently Delivering
OPERATIONAL Excellence BALANCE SHEET Strength DISCIPLINED Growth RESPONSIBLE Mining Consistently Delivering
Slide 32: Endnotes
Endnotes (i) For more information regarding Kinross’ production, cost, overhead expense and capital expenditures outlook for 2017, please refer to the news release dated February 15, 2017 which is available on our website at www.kinross.com. Kinross’ outlook for 2017 represents forward-looking infor
Slide 33: Building Value. 2017 Annual General Meeting of Shareholders
Building Value. 2017 Annual General Meeting of Shareholders