Kinross Gold Corporation · TSX:K
Kinross Gold — Q2 2009 Earnings Presentation
20 slides from Kinross Gold's earnings presentation, Aug 13, 2009
Slide 1: Delivering Disciplined Growth
Delivering Disciplined Growth Delivering g Disciplined p Growth Second Quarter 2009 Conference Call & Webcast – August 13, 2009
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 information
Slide 3: Speakers
Speakers Tye y Burt Thom Boehlert Tim Baker President & CEO Executive Vice-President Executive Vice-President & CFO & COO SECOND QUARTER 2009 RESULTS 3 CONFERENCE CALL & WEBCAST
Slide 4: Q2 2009 Results
Q2 2009 Results (in millions, except ounces and per Q2'09 Q2'08 % Change share amounts) Highlights Gold equivalent production • Revenue, operating 560,479 406,032 38% (ounces) (1) earnings and cash flow doubled Gold G ld equivalent i l t sales l (1) 583,607 330,633 77% (ounces) • Cash flow per share
Slide 5: Fort Knox Expansion
Fort Knox Expansion SECOND QUARTER 2009 RESULTS CONFERENCE CALL & WEBCAST
Slide 6: Q2 2009 Results
Q2 2009 Results (in millions, except ounces and per Q2'09 Q2'08 % Change share amounts) Highlights Gold equivalent production • Revenue, operating 560,479 406,032 38% (ounces) (1) earnings and cash flow doubled Gold G ld equivalent i l t sales l (1) 583,607 330,633 77% (ounces) • Cash flow per share
Slide 7: Organic Growth Opportunities
Organic Growth Opportunities Maricunga, Chile - Expansion o Scoping study completed late 2008 o Expanded throughput could increase annual production o Pre-feasibility expected at end of 2009 L C La Coipa, i Chil Chile o Land package doubled in 2008 to 98,000 ha o Comprehensive district exploration u
Slide 8: Project Pipeline
Project Pipeline A. Near completion 2009 2010 2011 2012 2013+ Paracatu Expansion Production Fort Knox Expansion Production B Expansions B. Maricunga Engineering Construction Production Paracatu Phase 3 Engineering g g Construction Production C. New Projects Lobo‐Marte Metallurgical Testing Engineeri
Slide 9: Lobo-Marte
Lobo-Marte La Coipa ((2P: 1.06 g g/t)) • Project parameters under consideration Lobo-Marte ~110 km o Phase 1: Truck 2.4 g/t ore to La Coipa mill (M&I: 1.72 g/t) o Phase 2: 40 – 50k tpd heap leach operation m o Initial capital: approx. $450 – 500 mm Maricunga o Approx. 350,000 ozs / yr (2P: 0.72 g/t)
Slide 10: Fruta del Norte
Fruta del Norte Quito • Project parameters under consideration: o Underground o 3,000 , tpd p milling g capacity p y • Recent milestones: o Ecuador Mining Law approved (January ‘09) Fruta del Norte o Environmental Management Plan completed, submitted and approved • Next steps: o Awaiting final appro
Slide 11: Cerro Casale
Cerro Casale La Coipa ((2P: 1.06 g g/t)) • Project parameters under consideration: o Open-pit mine with 18 yr. mine life Lobo-Marte ~110 km (M&I: 1.72 g/t) o 54 Mt/a ore processing plant and a 37 Mt/a heap m leach M i Maricunga o Avg. annual production (first full 10 yrs.)* (2P: 0.72 g/t) – 430k oz.
Slide 12: Q2 2009 Results
Q2 2009 Results (in millions, except ounces and per Q2'09 Q2'08 % Change share amounts) Highlights Gold equivalent production • Revenue, operating 560,479 406,032 38% (ounces) (1) earnings and cash flow doubled Gold G ld equivalent i l t sales l (1) 583,607 330,633 77% (ounces) • Cash flow per share
Slide 13: Production & Cost of Sales
Production & Cost of Sales • Average realized price up 1% - $915/oz. Ounces Sold(1) Cost of Sales(6) (US$/oz.) +77% 583,607 $466 -7% $434 330,633 Q2'08 Q2 08 Q2'09 Q2 09 Q2'08 Q2 08 Q2'09 Q2 09 SECOND QUARTER 2009 RESULTS (1) Please refer to endnote #1. 11 CONFERENCE CALL & WEBCAST (6) Please refer
Slide 14: Kinross Margins Expanding
Kinross Margins Expanding 2002 – Q2’09: • Average realized gold price: +199% Kinross’ attributable cost of sales margin(7): +350% • Kinross 350% $478 $481 $436 ost of Sales($/oz) Margin(7) Up 350% $329 $279 $161 $170 Co $135 $107 FY'02 FY 02 FY'03 FY 03 FY'04 FY 04 FY'05 FY 05 FY'06 FY 06 FY'07 FY 0
Slide 15: Q2'09 Financial Results
Q2’09 Financial Results Reported earnings $19.3 mm / $0.03/sh Adjusting for non-operating items: • Foreign exchange losses + $57.5 $ mm • Non-hedged derivatives losses (gains) + $ 3.2 mm • Taxes in respect of prior years + $ 4.5 mm • Losses (g (gains)) on sale of assets and investments – net - $ 0.2
Slide 16: 2009 Guidance
2009 Guidance Production and Costs(8) 2009e Production Cost of Sales Country y Ounces (000s) % of 2009e (US$/o ) (US$/oz.) Chile 450 – 500 20% $425 – 460 Brazil 480 – 550 22% $525 – 570 Russia 675 – 725 30% $265 – 290 USA 625 – 680 28% $440 – 490 Total : 2.3 – 2.4 mm oz. $390 – 420 Other 2009e (mm)
Slide 17: Q2 2009 Operating Results
Q2 2009 Operating Results Gold equivalent production Cost of Sales Ounces (US$/oz.) Maricunga 59,674 $516 Chiile L C La Coipa i 64 482 64,482 $392 Subtotal 124,156 $450 Paracatu 87,458 $697 Brrazil Crixas 20 646 20,646 $422 Subtotal 108,104 $653 Fort Knox 67,391 $541 SA Round Mountain 51,322 $541 US
Slide 18: Kinross Key Objectives for 2009
Kinross Key Objectives for 2009 9 Complete Aurelian integration 9 Close Lobo-Marte acquisition from Teck 9 Lock-in L k i significant i ifi t share h off iinputt costs t 9 Strengthened liquidity: close $415 mm equity issue 9 Replace Operations’ reserves 9 Add tax-effective cash flow in Cana
Slide 19: Endnotes
Endnotes 1) Unless otherwise stated, gold equivalent production , gold equivalent ounces sold and cost of sales figures in this presentation are based on Kinross’ share of Kupol production (75%). 2) Unless otherwise stated, all cash flow and cash flow per share figures in this presentation are befor
Slide 20: Second Quarter 2009 Results Conference Call & Webcast
SECOND QUARTER 2009 RESULTS CONFERENCE CALL & WEBCAST 20