Kinross Gold Corporation · TSX:K
Kinross Gold — Investor Presentation (February 2021)
76 slides from Kinross Gold's investor presentation, February 2021
Slide 1: Delivering Value.
February 2021 Delivering Value. Kinross Gold Corporation
Slide 2: Cautionary Statement on Forward-Looking Information
February 2021 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 performa
Slide 3: Table of Contents
Table of Contents Gold Price 4 Company Overview 6 Operations and Projects 33 Americas 34 West Africa 50 Russia 57 Corporate Responsibility 64 Appendix 71 3
Slide 4: Supportive Backdrop for Gold Price
Gold Price February 2021 Supportive Backdrop for Gold Price Low real rates and significant increases in money supply provide long-term support for gold price U.S. 10-Year Real Rate Gold Price vs. U.S. Money Supply vs. Gold Price(i) (M2) Year/Year change(i) -2.0 $2,500 30 $2,500 -1.0 25 $2,000 $2,000
Slide 5: Superior Leverage to Gold
Gold Price February 2021 Superior Leverage to Gold Kinross offers among the purest exposure to gold of the peer group Revenue by Commodity 2020-22E(i) (% of Total) 100% 90% 80% Kirkland Lake Yamana Kinross Gold Fields Newmont AngloGold Agnico Eagle Barrick Gold Silver Copper Other (i) Source: RBC Eq
Slide 6: Kinross Gold Corporation
Kinross Gold Corporation
Slide 7: Why Kinross?
Kinross Gold Corporation February 2021 Why Kinross? GLOBAL 2.4Moz. PORTFOLIO Portfolio PRODUCER (1) 8 mines GROWING TO 3 regions 2.9Moz. (ii) FINANCIALLY LARGE GOLD GEOGRAPHICALLY EXCELLENT COMMITTED TO STRONG WITH PRODUCER, DIVERSIFIED OPERATING TRACK RESPONSIBLE ATTRACTIVE HIGHLY LIQUID PRODUCER R
Slide 8: Diversified Portfolio of Assets
Diversified Portfolio of Assets Portfolio of mines and development projects located in three core regions Kupol-Dvoinoye, Russia Fort Knox, U.S.A. Peak, U.S.A. Udinsk, Russia Bald Mountain, U.S.A. Round Mountain, U.S.A. 2020 Gold Equivalent Production(1) Tasiast, Mauritania 22% Chirano, Ghana Approx
Slide 9: Nine Consecutive Years of Meeting Guidance
Kinross Gold Corporation February 2021 Nine Consecutive Years of Meeting Guidance Kinross has met or exceeded guidance for production, costs and capital expenditures for the past nine years, despite impacts from COVID-19 2012 2013 2014 2015 2016 2017 2018 2019 2020 Met or exceeded annual production
Slide 10: 2021E Outlook
Kinross Gold Corporation February 2021 (2) 2021E Outlook Expected 2021 production and capex in-line with 2020; costs up on temporary factors 2020 Guidance 2020 Full-year 2021 Guidance (+/- 5%) Results (+/- 5%) Gold equivalent production 2.4 million 2.4 million 2.4 million (ounces)(1) Production cost
Slide 11: Exciting Future
Kinross Gold Corporation February 2021 Exciting Future (2) Strong production growth over the next three years, driving a 20% increase by 2023 Three drivers of growth: Growing Production Profile • Recent three-year capital reinvestment phase established a timely platform for growth that leverages exi
Slide 12: Growth Drivers Support Long-Term Outlook
Kinross Gold Corporation February 2021 Growth Drivers Support Long-Term Outlook Expecting average annual production of ~2.5 million gold equivalent ounces(1) over the decade, with additional opportunities that could drive it higher (i)(ii) (i) 2024-2029 is an illustrative trend (1) Refer to endnote
Slide 13: Production Plans and Project Pipeline
Kinross Gold Corporation February 2021 Production Plans and Project Pipeline Base Case Expected Growth Additional Pipeline Production Projects Opportunities Kupol: regional exploration, Kupol-Dvoinoye Chulbatkan: Udinsk mine life extensions Tasiast: satellites, West Tasiast 24k Branch depth extensio
Slide 14: Manageable Capital Expenditure Profile
Kinross Gold Corporation February 2021 Manageable Capital Expenditure Profile Forecast capex requirements are manageable for Kinross’ size Precise amounts tied to long-term production levels ~$300/oz. for 3Moz. long-term $ 900 production ~$300/oz. for 2.5Moz. long-term production $ 600 US$ million $
Slide 15: Advancing the Project Pipeline
Kinross Gold Corporation February 2021 Advancing the Project Pipeline Expected project milestones at growth projects that span all three operating regions H1 2021 >> H2 2021 >> 2022 >> 2023+ La Coipa Restart Q4 Round Mountain: Mid-2023 Tasiast 24k Commence Chulbatkan: Udinsk Phase S Phase 7 pre-st
Slide 16: Prioritizing Resource Conversion
Kinross Gold Corporation February 2021 Prioritizing Resource Conversion (i) Significant potential for mine life extension at existing assets 25 20 15 Years 10 5 - Expected Reserve Life Expected Resource Life (i) See Appendix Notes: - Excludes Kettle River and Maricunga 16 - Incorporates internal ass
Slide 17: Strong Liquidity and Financial Flexibility
Kinross Gold Corporation February 2021 Strong Liquidity and Financial Flexibility Well-positioned to fund portfolio of mines and growth projects Liquidity Position Financial Flexibility • Available liquidity of ~$2.8 billion, including over $1.2 billion of cash • Made final Chulbatkan payment of $14
Slide 18: Leading Free Cash Flow Profile
Kinross Gold Corporation February 2021 Leading Free Cash Flow Profile Portfolio of mines expected to generate exceptional free cash flow • Attractive forecast free cash Analysts Forecast Strong Free flow yield relative to peers Cash Flow Yield vs. Peers(i) attributed to: 20% o past investments in or
Slide 19: Disciplined Capital Allocation Strategy
Kinross Gold Corporation February 2021 Disciplined Capital Allocation Strategy Defined by our three pillars: Reinvesting in our Business • Sustaining capex - maintaining our existing operations safely and to world-class environmental standards • Expansion projects – pursuing attractive returns by le
Slide 20: Measured Acquisition Track Record
Kinross Gold Corporation February 2021 Measured Acquisition Track Record Disciplined approach to M&A over the past 8 years, focused on assets that leverage operating expertise in existing regions Bald Mountain & 50% Hydroelectric Chulbatkan Peak Project(ii) of Round Mountain(i) Power Plants Nevada,
Slide 21: Manageable Debt Profile
Kinross Gold Corporation February 2021 Manageable Debt Profile Kinross’ senior notes are rated investment grade with the next repayment planned for September of this year Debt Ratings Debt Schedule Agency Rating S&P BBB- (Stable) $72 Moody’s Baa3 (Stable) $32 Fitch BBB- (Stable) $500 $500 $500 Debt
Slide 22: Global Mining Leader in ESG
Kinross Gold Corporation February 2021 Global Mining Leader in ESG Prioritizing the effective management of ESG risks through our principled approach to sustainability and strong on-the-ground performance at our operations • ESG performance consistently RobecoSAM ranks in top quartile of peer group,
Slide 23: Global Mining Leader in ESG
Kinross Gold Corporation February 2021 Global Mining Leader in ESG Environment Social Governance 98.5% 630,000 TAILINGS MANAGEMENT of workforce hired from beneficiaries of INDEPENDENT BOARD • Kinross has no upstream facilities within host country community investments • 8 of 9 Board members are • Ma
Slide 24: Award-Winning ESG Record
Kinross Gold Corporation February 2021 Award-Winning ESG Record Kinross receives strong recognition for its ESG performance Health and Safety: • Sentinels of Safety award at Fort Knox from the U.S. National Mining Association • Chirano named the ‘Safest Mine in Ghana’ by the Minerals Commission and
Slide 25: COVID-19 Update
Kinross Gold Corporation February 2021 COVID-19 Update Prioritizing the health and safety of employees and host communities Managing the Pandemic and Minimizing Impacts • Portfolio of mines continues to manage well – all remain in operation through the pandemic • Working closely with host government
Slide 26: Competitive Production and AISC Profile
Kinross Gold Corporation February 2021 Competitive Production and AISC Profile 2020A Production 2020A All-In Sustaining Cost (million ounces) ($ per ounce) 7.0 $1,100 6.0 $1,000 5.0 4.0 $900 3.0 2.0 $800 1.0 - $700 Barrick Kirkland Lake Barrick Kirkland Lake Newmont Newmont AngloGold Gold Fields Agn
Slide 27: Attractive Value Opportunity
Kinross Gold Corporation February 2021 Attractive Value Opportunity Relative to peers, considering Kinross’ annual production growth, cost structure and track record P / 2021E Operating CF EV / 2021E EBITDA 8.2 8.1 6.8 6.7 7.6 6.1 5.8 6.4 6.3 4.6 4.6 4.3 4.7 4.5 3.8 4.4 4.2 3.3 Kirkland Lake Barrick
Slide 28: Discounted Valuation Not Justified by Quality of Assets
Kinross Gold Corporation February 2021 Discounted Valuation Not Justified by Quality of Assets Kinross has two of the world’s thirteen Tier One assets, with the target of re-establishing Kinross Russia as a third Global Tier One Assets by Total Cash Costs $ 800 $ 600 $ 400 $ 200 - Percent of 2019 Pr
Slide 29: Discounted Valuation Not Justified by Operating Jurisdiction
Kinross Gold Corporation February 2021 Discounted Valuation Not Justified by Operating Jurisdiction Attractive value opportunity relative to peers considering Kinross’ in-line geopolitical score P/NAV vs. Fraser Institute Ranking (Weighted by NAV) 1.4x Agnico 1.3x Analyst Consensus P/NAV 1.2x Newmon
Slide 30: Proven Track Record in Mauritania
Kinross Gold Corporation February 2021 Proven Track Record in Mauritania Successfully operated for over 10 years Cumulative production of over 2 million gold equivalent ounces Established $300 million political risk insurance policy with MIGA A member of the World Bank Constructed Phase One Proj
Slide 31: Proven Track Record in Russia
Kinross Gold Corporation February 2021 Proven Track Record in Russia Kinross has a long and successful 26-year track record investing in Russia Significant operating experience 2019 Statistics: • Operated four mines, including the high-grade, low Kinross Investments in Russia cost Kupol and Dvoinoye
Slide 32: Kinross Investment Case
Kinross Investment Case Operational Excellence Financial Strength & Flexibility Diverse portfolio of mines consistently meeting Maintaining a strong balance sheet continues to or outperforming operational targets be a priority objective 9 Available liquidity of ~$2.8 billion Met or exceeded Attracti
Slide 33: Operations and Projects
Operations and Projects
Slide 34: Americas
Americas 2020 Gold Equivalent Production(1) Paracatu, Country Highlights Brazil Our largest mine, Paracatu, 23% boasts an attractive cost 22% Brazil structure supported by favourable foreign exchange 2.4M Fort Knox, Alaska ~1/3rd of our production comes ounces 10% from Nevada and Alaska – two 23% U.
Slide 35: Paracatu, Brazil (100%)
Americas February 2021 Paracatu, Brazil (100%) Tier 1 gold mine with a long mine life that extends to 2032 Operating Results(3) • Paracatu is among the world’s largest 2018 2019 2020 gold operations, with annual throughput Production of ~60Mt (Au eq. oz.) 521,575 619,563 542,435 • Continued outperfo
Slide 36: Paracatu – Northwest Extension
Americas February 2021 Paracatu – Northwest Extension Mineralization extends to the west of the existing reserve pit, with the potential to extend mine life by approximately 4 years NW Ph1B Multiple NW Ph2 pushbacks being evaluated to the west of Au (g/t) NW Ph1A A – A’ existing reserve pit A’ A Res
Slide 37: Round Mountain, U.S.A. (100%)
Americas February 2021 Round Mountain, U.S.A. (100%) Strong cash flow generator with mine life expected to extend to at least 2027 • Estimated mine life: 2024 (mining); Operating Results(3) 2018 2019 2020 2027 (stockpile milling / residual leaching) Production 385,601 361,664 324,277 (Au eq. oz.) •
Slide 38: Round Mountain – Phase S
Americas February 2021 Round Mountain – Phase S Potential next pushback on the south side of the Round Mountain pit Plan view of Round Mountain • May extend open pit operations until Phase X 2029 and mill life to early 2030s • Pit optimization scoping study suggests potential indicated resource of 9
Slide 39: Round Mountain – Phase X
Americas February 2021 Round Mountain – Phase X Assessing mineability of potential resource beyond Phase W • Studying potential for incremental mine • Encountering ounces in Phase W upper deposit life extensions at $1,400/oz. or higher - potential to add ounces in upper Phase X in gold prices future
Slide 40: Fort Knox, U.S.A. (100%)
Americas February 2021 Fort Knox, U.S.A. (100%) With completion of the Gilmore project, mine life is expected to extend to 2030 • Successfully operating one of the Operating Results(3) world’s few cold weather heap leaches 2018 2019 2020 • Future production growth driven by Production 255,569 200,26
Slide 41: Fort Knox – Gil Satellite Pits
Americas February 2021 Fort Knox – Gil Satellite Pits Expected to provide near-term, higher grade ore to Fort Knox operation • Permitting is underway, and feasibility study results are expected in H1 2021; anticipated first ore to the mill in Q4 2021 N Sourdough • Located 13 km east of Fort Knox Nor
Slide 42: Fort Knox – Peak Project (70%)
Americas February 2021 Fort Knox – Peak Project (70%) High grade, open pit project that is expected to extend Fort Knox’s mill operations • Development plan contemplates crushing ore at the project and 2020 Gold Resource Estimates(i) trucking material to the Fort Knox mill for processing Tonnes Grad
Slide 43: Bald Mountain, U.S.A. (100%)
Americas February 2021 Bald Mountain, U.S.A. (100%) Forecasting strong near-term cash flow with significant upside potential • Large mineral resource base with Operating Results(3) multiple sources of potential mineral 2018 2019 2020 reserve additions that could extend mine Production life beyond mi
Slide 44: Bald Mountain
Americas February 2021 Bald Mountain Numerous targets within the large land package • 1.1 million ounces of reserves at $1,200/oz. Resource Pits – Expected Mine Potential Plan to 2024 • Potential to add significant mine life at gold Extensions prices above $1,200/oz. N. Duke Royale o Potential expan
Slide 45: A Return to Production in Chile
Americas February 2021 A Return to Production in Chile Construction is underway at the La Coipa Restart project and studies are progressing at Lobo-Marte, which could enable production in a favourable mining jurisdiction beyond 2040 • La Coipa and Lobo-Marte are located in Chile’s Atacama N (Region
Slide 46: La Coipa Restart Project
Americas February 2021 La Coipa Restart Project Pre-stripping commenced in January 2021; first production on-track for mid-2022 • Leverages existing infrastructure, including plant and Maricunga mine fleet • Potential to extend mine life through satellite deposits • Project is on schedule: o Camp re
Slide 47: La Coipa Restart Feasibility Study Results
Americas February 2021 La Coipa Restart Feasibility Study Results Project expected to generate a 28% IRR at an assumed gold price of $1,200/oz. Feasibility Study Estimates Life of mine production (2022 to 2024) 690,000 gold equivalent ounces Average production cost of sales(3) $575 per gold equivale
Slide 48: Lobo-Marte
Americas February 2021 Lobo-Marte Project has the potential to support Kinross’ long-term production profile with attractive all-in sustaining costs • Substantial resource with 6.4 million higher- grade gold ounces of estimated probable 2020 Gold Reserve & Resource Estimates(i) mineral reserves(i) T
Slide 49: Lobo-Marte Pre-Feasibility Study Results
Americas February 2021 Lobo-Marte Pre-Feasibility Study Results Feasibility study expected to be complete in Q4 2021 Pre-Feasibility Study Estimates Initial Capital Costs ($M) Life of mine production (million Au oz.) 4.5 Mine equipment $100 Life of mine ore processed (million tonnes) 147 Average gra
Slide 50: West Africa
West Africa 2020 Gold Equivalent Production(1) Tasiast, 22% Country Highlights Mauritania Tier 1 mine with a large gold 2.4M ounces 55% Mauritania resource located in a prospective district; 24k 17% project progressing well Recent exploration success Ghana resulted in mine life extension 6% to at le
Slide 51: Tasiast, Mauritania (100%)
West Africa February 2021 Tasiast, Mauritania (100%) Low-cost mine with a large gold resource located in a prospective district • Estimated mine life: 2033 Operating Results(3) 2018 2019 2020 • New records set in 2020: Production 250,965 391,097 406,509 (Au eq. oz.) o Q4 production of ~111koz. Produ
Slide 52: Advancing the Tasiast 24k Project
West Africa February 2021 Advancing the Tasiast 24k Project Building off success of Phase One and continued outperformance of the SAG mill Project overview Project financing in place • Modification to existing grinding circuit • Signed $300 million IFC-led project financing • Additional leaching and
Slide 53: Tasiast 24k Project Feasibility Study Results
West Africa February 2021 Tasiast 24k Project Feasibility Study Results The value-enhancing Tasiast 24k project offers attractive estimated returns, increased production and lower costs Operating Estimates Throughput capacity 24,000 t/d Average annual production (2022 – 2028) 563,000 gold ounces Pro
Slide 54: Tasiast
West Africa February 2021 Tasiast World-class orebody and highly prospective district Northern satellites • Multiple low strip(i) oxide deposits located 5 - 12 km north of the Tasiast operation • Fennec, C67, and C68 are prospective targets for further drilling o High grade satellite ore could be mi
Slide 55: Chirano, Ghana (90%)
West Africa February 2021 Chirano, Ghana (90%) Three-year mine life extension to 2025 due to exploration success • Chirano is an underground and open pit Operating Results(1,3) operation located in southwestern Ghana 2018 2019 2020 • Further mine life extensions possible Production 204,029 181,167 1
Slide 56: Chirano – Exploration
West Africa February 2021 Chirano – Exploration 2021 exploration budget increased by 20% to $12 million to build off successful year in 2020 • 2021 program is expected to drill • Budget also contemplates construction depth extensions at Obra, Akwaaba, of exploration decline to drill the Suraw, Tano
Slide 57: Russia
Russia 2020 Gold Equivalent Production(1) Kupol-Dvoinoye 22% Country Highlights Udinsk development project 2.4M expected to extend our long history of production in Russia ounces 55% beyond 2030 Russia 23% Long track record of mine life extensions expected to continue at Kupol Americas West Africa R
Slide 58: Strong Platform in Russia
Russia February 2021 Strong Platform in Russia Track record of adding reserves through exploration to offset depletion at Kupol supports a potential bridge to production at Chulbatkan 12 2025 Projected End of Mine Life 10 Gold Equivalent Ounces 8 2022 (Millions) 6 4 2019 2 - 2016 2008 2009 2010 2011
Slide 59: Kupol-Dvoinoye (100%)
Russia February 2021 Kupol-Dvoinoye (100%) Our Russian mines are a model for successfully operating in a remote location • Mine life expected until at least 2025 following another 1-year addition in 2020 Operating Results(3) 2018 2019 2020 o Exploration program continues to Production yield successf
Slide 60: Kupol
Russia February 2021 Kupol Numerous opportunities for continued reserve growth Big Central South North North South Extension Bend Zone Zone Zone Zone Upper North Extension 42 Kupol Deeps S. Hanging N. Hanging Providence Moroshka Vtoriy Wall Wall Base Case Additional Pipeline Opportunities Depletion
Slide 61: Prospective Exploration Targets in Russia
Russia February 2021 Prospective Exploration Targets in Russia 2020 drill program added approximately 409koz. to mineral reserves(i) to largely offset depletion at Kupol-Dvoinoye, the largest reserve addition since 2014 Kupol-Dvoinoye • 6 underground and 2 surface drill rigs in operation with the go
Slide 62: Udinsk: First Mine in Chulbatkan Region
Russia February 2021 Udinsk: First Mine in Chulbatkan Region Large Chulbatkan region includes several promising targets; Udinsk mine advancing as planned • Encouraging results on the larger Chulbatkan license support the 2021 drill program, expected to focus on new target areas near the Udinsk resou
Slide 63: Udinsk Preliminary Estimates
Russia February 2021 Udinsk Preliminary Estimates Expected to be a substantial open pit gold mine with a low all-in sustaining cost(3) Preliminary estimates; scope of project may change following planned extensive drill program and technical studies and trade-offs Excellent fit for Kinross Metric Es
Slide 64: Corporate Responsibility
Corporate Responsibility 64
Slide 65: Our Approach
Corporate Responsibility February 2021 Our Approach At the heart of our success is our people and our four Core Values Our Values and Guiding Principles unite our global workforce Our approach to Corporate Responsibility can be distilled into four main areas: • Do no harm – We work to protect our wo
Slide 66: Strong Safety Performance
Corporate Responsibility February 2021 Strong Safety Performance Maintained Total Reportable Injury Frequency Rate on par with, or better than, low-risk, non-industrial sectors • Implemented risk controls, training, and provided leadership to ensure a culture of safe work at all sites, at all times
Slide 67: Climate Change and Energy Efficiency
Corporate Responsibility February 2021 Climate Change and Energy Efficiency GHG intensity one of lowest in the industry – Paracatu down by 38% since 2017 Gold Peers 5-Year GHG Intensity kg CO2e / tonne of ore processed • Completed independent evaluation of disclosure and performance on climate 160 c
Slide 68: Managing our Environmental Footprint
Corporate Responsibility February 2021 Managing our Environmental Footprint We are a responsible steward of land and water during all stages of the mine’s life cycle 2019 Highlights Performance Highlights • Received a top ranking for the fourth • Sustained one of the consecutive year from World Wild
Slide 69: Responsible & Safe Tailings Management
Corporate Responsibility February 2021 Responsible & Safe Tailings Management All of our tailings facilities are designed and constructed to the highest engineering standards and meet or exceed regulatory and international requirements and standards of best practice • Tailings management programs in
Slide 70: Governance Highlights
Corporate Responsibility February 2021 Governance Highlights Kinross is committed to the highest standards of corporate governance and accountability • All directors are independent except for • 8 of 9 Board members are the Chief Executive Officer independent • All of our Board committees are • Boar
Slide 71: Appendix
IX Append KINROSS
Slide 72: Mineral Reserve and Mineral Resource Statement
Appendix February 2021 MINERAL RESERVE AND MINERAL RESOURCE STATEMENT MINERAL RESERVE AND MINERAL RESOURCE STATEMENT GOLD PROVEN AND PROBABLE MINERAL RESERVES (1,2,3,4,5,6) Kinross Gold Corporation's Share at December 31, 2020 Kinross Proven Probable Proven and Probable Property Location Interest To
Slide 73: Mineral Reserve and Mineral Resource Statement
Appendix February 2021 MINERAL RESERVE AND MINERAL RESOURCE STATEMENT MINERAL RESERVE AND MINERAL RESOURCE STATEMENT GOLD INFERRED MINERAL RESOURCES (2,3,4,5,6,9,10,11) Kinross Gold Corporation's Share at December 31, 2020 Kinross Inferred Property Location Interest Tonnes Grade Ounces (%) (kt) (g/t
Slide 74: Notes – 2020 Kinross Mineral Reserve & Resource Statements
Appendix February 2021 Notes – 2020 Kinross Mineral Reserve & Resource Statements (1) Unless otherwise noted, the Company’s mineral reserves are estimated using appropriate cut-off grades based on an assumed gold price of $1,200 per ounce and a silver price of $17.00 per ounce. Mineral reserves are
Slide 75: Endnotes
Appendix February 2021 Endnotes 1) Unless otherwise noted, gold equivalent production, gold equivalent ounces sold, production cost of sales, all-in sustaining cost figures and attributable margin in this presentation are based on Kinross’ 90% share of Chirano production and costs and 70% share of P
Slide 76: Slide 76