Slide 1: 2016 Results of the Tasiast Two-Phased Expansion Studies
March 30 KINROSS GOLD CORPORATION 2016 Results of the Tasiast Two-Phased Expansion Studies 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: Results of the Tasiast Two-Phased Expansion Studies
High-Level Intro Slide • Completed studies and delivered results on time • Attractive path to Tasiast’s growth potential at a significantly lower capital cost • Proceeding with Phase One TASIAST EXPANSION PROJECT RESULTS OF THE TASIAST TWO-PHASED EXPANSION STUDIES • Completed the Phase One feasibili
Slide 4: Significant Growth Opportunity: Tasiast, Mauritania
SIGNIFICANT GROWTH OPPORTUNITY TASIAST, MAURITANIA • Existing mine with an 8,000 t/d mill originally designed to process ore from a series of small open pits 44 www.kinross.com
Slide 5: Large Orebody with Low Execution Risk
TASIAST EXPANSION PROJECT LARGE OREBODY WITH LOW EXECUTION RISK Challenge is to right-size the processing capacity to capture the full value and potential of Tasiast’s large mineral resource estimate RELATIVELY LOW-RISK BROWNFIELDS EXPANSION PROJECT • Have owned and operated the mine for over 5 year
Slide 6: Phased Approach to a Tasiast Mill Expansion
DISCIPLINED PROJECT DEVELOPMENT PHASED APPROACH TO A TASIAST MILL EXPANSION • Phase One expansion offers a number of expected attractive attributes: Leverages existing infrastructure Relatively low execution risk Manageable capital expenditure Robust economics on a stand-alone basis Offers
Slide 7: Phase One Feasibility Study Results
TASIAST EXPANSION PROJECT PHASE ONE FEASIBILITY STUDY RESULTS Phase One expected to reduce cost per ounce by ~50% and to increase annual production by ~90% Metric / Estimate Estimates Average annual production (2018-2027) 409,000 ounces Production cost of sales (2018-2027) $535 per ounce All-in sust
Slide 8: Strong Balance Sheet
STRONG BALANCE SHEET SOLID FINANCIAL POSITION Strong financial position to fund the Phase One expansion with existing liquidity PRO-FORMA LIQUIDITY POSITION(i) MAINTAINING FINANCIAL FLEXIBILITY • Pro-forma liquidity position of $2.2 billion: Cash balance of ~$700 million $0.7 $1.5 billion availa
Slide 9: Two-Phased Expansion Concept: Phase One
TASIAST EXPANSION PROJECT TWO-PHASED EXPANSION CONCEPT 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
Slide 10: 3D Flyover of Phase One
3D FLYOVER OF PHASE ONE To view the 3D animation video highlighting the Tasiast Phase One expansion, please visit: [link] TASIAST EXPANSION 3D ANIMATION To view the video animation clip, please visit: 1010 www.kinross.com http://118009.choruscall.com/kinross/kinross20160330.mp4
Slide 11: Tasiast Expansion Site Layout
Airstrip Camp New SAG mill New stockpile Phase One and Two expansions New crusher West Branch Pit Truck shop Piment pits Dump leach Power Plant ADR plant Current tailings facility Phase One tailings facility TASIAST EXPANSION 1111 SITE LAYOUT www.kinross.com
Slide 12: Advancing Phase One
TASIAST EXPANSION PROJECT ADVANCING PHASE ONE Phase One expected to ramp up to full production in Q1 2018 CONSTRUCTION AND ENGINEERING • Preparations for construction activities is expected to commence immediately • Engineering work is 35% complete Expected to reach 80% by end of July 2016 • Proje
Slide 13: Two-Phased Expansion Concept: Phase Two
TASIAST EXPANSION PROJECT TWO-PHASED EXPANSION CONCEPT PHASE TWO: EXPANSION TO 30,000 t/d • Contemplates installation of an additional 18,000 t/d of throughput capacity for a total combined capacity of 30,000 t/d • Project consists of: • Replacing the two current ball mills with a larger, new ball m
Slide 14: Phase Two Pre-Feasibility Study Results
TASIAST EXPANSION PROJECT PHASE TWO PRE-FEASIBILITY STUDY RESULTS Combined Phase One and Two expansion expected to transform Tasiast into Kinross’ largest mine with estimated costs amongst the lowest in our portfolio Metric / Estimate Phase One and Two combined Average annual production (2020-2026)
Slide 15: Two-Phased Approach: Capital Discipline
TASIAST EXPANSION PROJECT TWO-PHASED APPROACH: CAPITAL DISCIPLINE Objective was to achieve similar production and cost output as the 38k t/d case with a significantly lower initial and sustaining capital Phase One & Two Combined Metric / Estimate Previous 38k t/d Scenario 30k t/d Average annual prod
Slide 16: Reduced Capex Estimate
TASIAST EXPANSION PROJECT REDUCED CAPEX ESTIMATE Phase One and Phase Two combined initial capital estimated to be $920 million FACTORS DRIVING THE LOWER ESTIMATED INITIAL CAPITAL COST • Most of the equipment is smaller (e.g. crusher) Smaller Smaller scalescale • Fewer units required (e.g. few leach
Slide 17: Reduced Sustaining Capital
TASIAST EXPANSION PROJECT REDUCED SUSTAINING CAPITAL Expecting significant sustaining capital savings FACTORS DRIVING THE LOWER ESTIMATED SUSTAINING CAPITAL • Highly confident seawater pipeline no longer required Results of hydrological and hydrogeological studies increased confidence that an expa
Slide 18: Phase Two: Next Steps
TASIAST EXPANSION PROJECT PHASE TWO: NEXT STEPS Phase Two pre-feasibility study envisions full production beginning in 2020 • The timeline contemplated in the pre- feasibility study assumes: Initiating a feasibility study in late 2016 Being in a position to make a decision in late 2017 If a po
Slide 19: Exploration Highlights: Tasiast District
EXPLORATION HIGHLIGHTS TASIAST DISTRICT Prospective 80km trend with encouraging results on near-mine and step-out targets Operating Mine Satellite deposit Imkebdene license New deposit 2015 FENNEC WEST BRANCH C67 Tmeimichat license C68 TAMAYA El Gaicha license Tasiast Sud license N’Daouas license Fo
Slide 20: Phased Approach to a Tasiast Mill Expansion
DISCIPLINED PROJECT DEVELOPMENT PHASED APPROACH TO A TASIAST MILL EXPANSION • Phase One expansion offers a number of expected attractive attributes: Leverages existing infrastructure Relatively low execution risk Manageable capital expenditure Robust economics on a stand-alone basis Offers
Slide 21: Q&A Session
Q&A SESSION As this event is being webcast live, kindly wait for a microphone before 2121 www.kinross.com asking a question
Slide 22: Sensitivities Table
APPENDIX SENSITIVITIES TABLE PHASE ONE GOLD PRICE SENSITIVITY ESTIMATES $1,100 $1,200 $1,300 $1,400 $1,500 IRR 13% 20% 26% 33% 40% NPV $345M $635M $910M $1.2B $1.5B PHASE ONE AND PHASE TWO COMBINED GOLD PRICE SENSITIVITY ESTIMATES $1,100 $1,200 $1,300 $1,400 $1,500 IRR 12% 17% 22% 27% 33% NPV $485M
Slide 23: Illustrative Mine Plan Schedule (30k t/d)
APPENDIX ILLUSTRATIVE MINE PLAN SCHEDULE (30k t/d) 2017 2019 2020 2016 2018 2021 2019 2019 2022 2016 2017 2020 2017 2020 2018 2023 2019 2021 2024 2022 2023 2025 2026 For additional information, please refer to the Tasiast Technical Report dated March 30, 2016, available on our website at www.kinross
Slide 24: Kinross Gold Corporation
KINROSS GOLD CORPORATION 25 York Street, 17th Floor │Toronto, ON │ M5J 2V5 www.kinross.com 2424 www.kinross.com