Kinross Gold Corporation · TSX:K
Kinross Gold — Q2 2023 Earnings Presentation
28 slides from Kinross Gold's earnings presentation, Aug 3, 2023
Slide 1: Second Quarter 2023 Results
Second Quarter 2023 Results August 3rd, 2023 Delivering Value.
Slide 2: Conference Call Participants
Conference Call Participants Paul Rollinson Andrea Claude Ned Jalil Geoff Gold President & Freeborough Schimper SVP, Chief Technical EVP, Corporate Chief Executive Officer EVP & Chief Financial EVP & Chief Operating Officer Development, External Officer Officer Relations & CLO 2
Slide 3: Cautionary Statement on Forward-Looking Information
Second Quarter 2023 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 pe
Slide 4: Q2/23 Recap
Q2/23 Recap Americas on Track Strong Q2 Production • Paracatu and La Coipa on plan as • Production of 555Koz accounted for strong grades and recoveries continued ~26% of FY2023 guidance • US operations delivered stronger quarterly production and remain on plan Strong Margins Round Mountain • Tasiast
Slide 5: As We Look Forward
As We Look Forward ✓ Strong H1 production > 1Moz ✓ On-track to meet full-year production and cost guidance ✓ Prioritizing the balance sheet ✓ Maintaining quarterly dividend of 3 cents per share 5
Slide 6: ESG – Embedded in Our Business
ESG – Embedded in Our Business Release of Third Annual Climate Report as Part of Kinross’ Climate Change Strategy Report outlines our progress on climate goals 6 Tasiast solar to deliver 34MW of renewable energy by year-end - equivalent to removing +10,000 gasoline vehicles annually 6
Slide 7: Financial Results
Financial Results KINROSS
Slide 8: Second Quarter and First Half Results
Second Quarter 2023 Second Quarter and First Half Results Prior Comparable Periods Q2 2023 H1 2023 Q2 2022 H1 2022 Results Results Results(1) Results(1) Production 555,036 1,021,058 453,978 832,399 (Au eq. oz) Cost of Sales $900 $941 $1,027 $1,001 (per Au eq. oz. sold)(2) All-in Sustaining Cost $1,2
Slide 9: Balance Sheet & Financial Flexibility
Second Quarter 2023 Balance Sheet & Financial Flexibility Liquidity Position (1) Financial Flexibility • Total liquidity(1) of ~$1.9 billion, including $478 million of cash and cash equivalents • Net debt to EBITDA improved as of quarter end, with expectation of further reduction by end of year at c
Slide 10: Guidance and Outlook
Second Quarter 2023 Guidance and Outlook On Track to Meet FY2023 Guidance H1 2023 Results FY2023 Guidance(1) FY2022 Results(2) Production ~1.0 million ~2.1 million ~2.0 million (Au eq. oz.) Production cost of sales $941 $970 $937 (per Au eq. oz. sold)(3) All-in sustaining cost $1,308 $1,320 $1,271 (
Slide 11: Operations Highlights
Operations Highlights 11
Slide 12: Operations Overview
Second Quarter 2023 Operations Overview Strong Q2 Performance Tasiast, Mauritania La Coipa, Chile Paracatu, Brazil Fort Knox, Alaska Bald Mountain, Nevada Round Mountain, Nevada 12
Slide 13: Tasiast
Second Quarter 2023 Tasiast Record Q2 – Construction of 24k Project Complete • Record Q2 production on strong recoveries and grades • Construction of 24K project complete • Regularly achieved design throughput rates of 24ktpd in July • On track to ramp up to sustained 24ktpd throughput by year-end •
Slide 14: La Coipa
Second Quarter 2023 La Coipa Lowest Cost Mine in Q2 – Continuing High-Margin Production • Q2 production improved over the prior quarter as strong grades and recoveries continue • Continuing to generate strong free cash flow from high-margin production • Plant optimization to continue in second half
Slide 15: Paracatu
Second Quarter 2023 Paracatu Highest Producing Mine in Q2 • Q2 production and costs improved over the prior quarter on stronger grades and recoveries as planned • Higher production expected in Q3 on higher mining rates and strong grades in the deeper southwest areas of the pit • On track to deliver
Slide 16: US Operations
Second Quarter 2023 US Operations Q2 Production and Costs Improved Fort Knox, Alaska Bald Mountain, Nevada Round Mountain, Nevada United States Total Q2/23 H1/23 FY23 Guidance(1) Production 166,205 324,252 670,000 (Au eq. oz.) Production cost of sales ($/oz.) (2) $1,299 $1,329 $1,370 (1) Refer to en
Slide 17: US Operations
Second Quarter 2023 US Operations Q2 Operational and Project Development Highlights Fort Knox, Alaska Bald Mountain, Nevada Round Mountain, Nevada • Q2 production improved over the prior • Q2 production improved over the prior • Achieved planned production in Q2 quarter on higher processing grades q
Slide 18: Round Mountain
Second Quarter 2023 Round Mountain Exploring Higher-Margin Life of Mine Extensions • Ongoing mining of Phase W2 and other minor phases Gold Hill (shown in green) (exploration) (~8 km to north) W3 (study) • Phase S – Ongoing optimization work has shown positive W2 (currently results mining) Phase X U
Slide 19: Gold Hill
Second Quarter 2023 Gold Hill Potential High-Grade Underground Satellite to Supplement Phase X UG • Drilling to date suggests a series of narrower, higher-grade parallel veins extending from the open pit • The 2023 exploration program has confirmed an 800m west strike extension, with numerous high-g
Slide 20: Kinross Alaska – Manh Choh (70%)
Second Quarter 2023 Kinross Alaska – Manh Choh (70%) On Track for 1st Production in H2/24 • Construction activities remain on schedule and on budget • Initial pre-stripping of the South Pit began in mid-July • Mine operating permits received • Construction on the mill modifications at Fort Knox to p
Slide 21: Curlew Basin Exploration
Second Quarter 2023 Curlew Basin Exploration Underground Drilling Continues to Confirm High-Grade Vein Extensions • Exploration proving robustness of geological model and facilitating new discoveries: o Confirmed vein extensions and continuity across multiple targets, which are expected to add to th
Slide 22: Great Bear
Second Quarter 2023 Great Bear Utilizing Directional Drilling Technique to Improve Productivity Directional Drilling Strategy • Decreases the amount of drilling required to reach deep targets, improving productivity and cost per metre drilled, while facilitating more precise targeting of the resourc
Slide 23: Great Bear
Second Quarter 2023 Great Bear Deep Holes Demonstrate Potential for Extension of High-Grade Underground NORTHWEST SOUTHEAST DISCOVERY LP CENTRAL VIGGO BR-735 2.6 m @ 73.18 g/t BR-655 BR-805 500 m 5.9 m @ 12.09 g/t BR-794 6.7 m @ 19.31 g/t BR-719 9.0 m @ 3.66 g/t 7.0 m @ 24.38 g/t BR-812 BR-769A 3.4
Slide 24: Great Bear
Second Quarter 2023 Great Bear Continuing to Make Excellent Progress on Several Fronts Preliminary Advanced Exploration Design • Feasibility level engineering for Advanced Exploration (AEX) infrastructure is ~70% complete • Procurement of long-lead items has commenced • Key engineering firms have be
Slide 25: Strong Position to Deliver Value
Strong Position to Deliver Value ✓ Strong production profile ✓ Generating significant cash flow ✓ Quarterly Dividend ✓ Exciting exploration and development pipeline ✓ Leading ESG performance 25
Slide 26: Appendix
2s x) c 7) 2. °. <x
Slide 27: Endnotes
Second Quarter 2023 Endnotes 1. Kinross’ updated outlook represents forward-looking information and users are cautioned that actual results may vary. Please refer to the Cautionary Statement on Forward-Looking Information on slide 2 of this presentation. 2. All-in sustaining cost from continuing ope
Slide 28: Slide 28