Kinross Gold Corporation · TSX:K
Kinross Gold — Shareholder Meeting (May 2010)
37 slides from Kinross Gold's shareholder meeting presentation, May 5, 2010
Slide 1: Strong Foundation. Strong Future. 2010 Annual Meeting of Shareholders
STRONG FOUNDATION. STRONG FUTURE. FUTURE 2010 Annual Meeting of Shareholders
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 this presentation, including any information as to the future financial or operating performance of Kinross, constitute “forward-looking informatio
Slide 3: Kinross Yesterday
KINROSS YESTERDAY In 2004, we were a high cost, low-margin producer with a collection of non-operated joint ventures in various geographies.
Slide 4: Kinross Today
KINROSS TODAY
Slide 5: Focused Portfolio
FOCUSED PORTFOLIO
Slide 6: Strong Balance Sheet
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Slide 7: Pipeline of Organic and New Development Projects
PIPELINE OF ORGANIC AND NEW DEVELOPMENT PROJECTS
Slide 8: In a year of record gold prices, Kinross delivered highest-ever production
In a year of record gold prices, Kinross delivered its highest highest-ever ever production in 2009, along with recordd revenue, margini growth th and d cash flow.
Slide 9: Delivering Results
DELIVERING RESULTS Record Revenue Adjusted Operating Adjusted Net Cash Flow(1) Earnings(1) $937 $305 $2,412 $249 $635 $1,61 $175 7 $1,09 3 $313 2007 2008 2009 2007 2008 2009 2007 2008 2009 All figures g in millions of US$ $ dollars (1) Adjusted net earnings and adjusted operating cash flow are non-G
Slide 10: Delivering Cash Flow Growth
DELIVERING CASH FLOW GROWTH $1.36 g cash flow $ per sshare(1) $1.0 1 $0.8 0 Adjusted operating $0.5 $ $0.45 $0.5 6 1 2004 2005 2006 2007 2008 2009 (1) Adjusted operating cash flow per share is a non-GAAP financial measure which is meant to provide additional information and should not be used as a s
Slide 11: Delivering Margin Growth
DELIVERING MARGIN GROWTH 2004 – 2009: $530 • Average realized gold price: +139% • Kinross Kinross’ attributable cost of sales margin: +229% +229% Cost of sales margin ($ per ounce) (1) 2004 2005 2006 2007 2008 2009 (1) Cost of sales margin is a non-GAAP measure and is defined as average realized gol
Slide 12: Solid Financial Foundation
SOLID FINANCIAL FOUNDATION Our future O f t growth g th requiresi capital, it l and d we added dd d significantly ig ifi tl to t our financial fi i l strength in 2009 to ensure that we grow on a solid foundation. We are well- positioned to invest in our future growth opportunities.
Slide 13: Delivering Production Growth
DELIVERING PRODUCTION GROWTH mm gold equivalent ounces 22 2.2 1.8 16 1.6 2007 2008 2009
Slide 14: Kupol, Chukotka, Russia
KUPOL, CHUKOTKA, RUSSIA Located in a remote site at the Arctic Circle in Russia’s Chukotka Region, Kupol’s success showcases our ability to surmount logistical challenges and build an exceptional mine in less than 5 years.
Slide 15: Kettle River-Buckhorn, Washington State
KETTLE RIVER-BUCKHORN, WASHINGTON STATE The Buckhorn mine is a model of responsible small-footprint mining, and proof that meaningful stakeholder engagement can transform a once-contentious development into a “win-win”.
Slide 16: Paracatu, Brazil
PARACATU, BRAZIL The expansion at our Paracatu operation has transformed it into Brazil’s largest gold producer, with a mine life that extends to 2041.
Slide 17: Fort Knox, Alaska
FORT KNOX, ALASKA At our Fort Knox operation, we constructed a heap leach facility for low grade ore, the first such facility ever permitted in the state.
Slide 18: Enhancing Our Global Organization
ENHANCING OUR GLOBAL ORGANIZATION In 2009, we focused our core business around four strategic operating groups.
Slide 19: Mining Operations, Corporate Development, External Relations & Corporate Responsibility
MINING CORPORATE PROJECT EXTERNAL OPERATIONS DEVELOPMENT DEVELOPMENT RELATIONS & CORPORATE RESPONSIBILITY
Slide 20: The Kinross Way
THE KINROSS WAY The guiding philosophy that defines our culture, informs how we work and provides us with a distinct blueprint for managing the opportunities and responsibilities that come with being a gold mining company today.
Slide 21: Operationalizing the Kinross Way: Continuous Improvement
OPERATIONALIZING THE KINROSS WAY: CONTINUOUS IMPROVEMENT Continuous C ti iimprovementt (CI) is i helping h l i us implement i l t world-class ld l operating ti practices, and to become a leader in operational excellence.
Slide 22: In 2009, CI Reduced Our Cash Costs by $14/oz.
IN 2009, CI REDUCED OUR CASH COSTS BY $14/OZ.
Slide 23: Our Approach to Corporate Responsibility
OUR APPROACH TO CORPORATE RESPONSIBILITY In 2009, we took important steps to reinforce corporate responsibility as a key business priority.
Slide 24: Social License to Operate
SOCIAL LICENSE TO OPERATE Our success as a mining O i i g company iincreasingly i gl ddepends d on whether h th our neighbours ighb in the countries and communities where we operate see a net benefit resulting from our activities.
Slide 25: Paracatu, Brazil
PARACATU, BRAZIL At Paracatu, we are proceeding with plans to construct a third ball mill to increase grinding capacity.
Slide 26: Dvoinoye, Chukotka, Russia
DVOINOYE, CHUKOTKA, RUSSIA In January 2010, we announced an agreement to acquire the high-grade Dvoinoye deposit and Vodorazdelnaya property, located approximately 100 km from our Kupol operation.
Slide 27: Maricunga, Chile
MARICUNGA, CHILE We have identified an opportunity to increase ore processing by 50% by expanding capacity of the existing crushing plant.
Slide 28: Lobo-Marte, Chile
LOBO-MARTE, CHILE In 2009, 2009 we completed a pre-feasibility pre feasibility study of our Lobo-Marte Lobo Marte project project, a development stage asset with large gold resources and the benefit of existing infrastructure and potential synergies with Kinross operations in the region.
Slide 29: Fruta del Norte, Ecuador
FRUTA DEL NORTE, ECUADOR O Fruta Our F t d dell Norte N t project j t iis arguably g bl ththe premier i ggold ld di discovery iin a generation. g ti
Slide 30: Cerro Casale, Chile
CERRO CASALE, CHILE We have chosen to sell down our interest in the Cerro Casale project to 25% in order to ‘right-size’ the project in to our portfolio mix.
Slide 31: New Investments
NEW INVESTMENTS
Slide 32: Acquisition of the White Gold Project
ACQUISITION OF THE WHITE GOLD PROJECT
Slide 33: Acquisition of the White Gold Project; Investment in Harry Winston & Diavik Mine
ACQUISITION OF THE WHITE INVESTMENT IN HARRY GOLD PROJECT WINSTON & DIAVIK MINE
Slide 34: White Gold, Harry Winston & Diavik, Equity Investment in Red Back Mining
ACQUISITION OF THE INVESTMENT IN HARRY EQUITY INVESTMENT WHITE GOLD PROJECT WINSTON & DIAVIK MINE RED BACK MINING
Slide 35: 2010 Key Objectives
2010 KEY OBJECTIVES Declare increased reserves Complete Lobo-Marte pre-feasibility study Close sale of half of 50% interest in Cerro Casale Complete 18,000 metre drill program at Fruta del Norte Close investment in Red Back Mining Complete acquisition of Underworld Resources Fi
Slide 36: Ls a | Wa
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Slide 37: Slide 37