Kinross Gold Corporation · TSX:K
Kinross Gold — CIBC Whistler Institutional Investor Conference 2011
21 slides from Kinross Gold's conference presentation, Jan 19, 2011
Slide 1: Delivering Disciplined Growth
Delivering Disciplined Growth CIBC Whistler Institutional Investor Conference January 19, 2011
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, including any information as to the future performance of Kinross, constitute “forward looking statements” with
Slide 3: Why Kinross Now?
Why Kinross Now? 1 High 1. High‐growth growth major 2. Strong cash flow from pure gold production 3. Attractive valuation 3
Slide 4: Focused in the World's Best Gold Districts
Focused in the World’s Best Gold Districts Strong North American Fort Knox asset base in the Tintina High grade epithermal district High‐grade Dvoinoye gold belt, Nevada and with exploration upside Kupol White Gold Washington Kettle River‐ Buckhorn Round Mountain Tasiast Cornerstone assets in a high
Slide 5: Gold Equivalent Production
Continuing the Kinross Transformation Kinross Yesterday Kinross Now(1) 4.5 – 4.9 Gold equivvalent production (mm oz) Gold equivvalent production (mm oz) 2.6* 2.2 16 1.6 2005 2009 2010e 2015e (1) Please refer to endnote #1. * Figure represents Kinross’ 2010 preliminary production results, including e
Slide 6: Expanding Margins
Expanding Margins 2004 – YTD Q3 2010: $648 • Average realized gold price: +182% • Kinross’ attributable cost of sales margin(2): +302% $530 +302% Cost of Sales Margin ($/oz..) $436 $329 $279 $161 $170 FY/04 FY/05 FY/06 FY/07 FY/08 FY/09 YTD Q3/10 (2) Please refer to endnote #2. 6
Slide 7: Growing Cash Flow per Share
Growing Cash Flow per Share • Record high operating cash flow in 2009 (+35% vs. 2008) • 5‐yr CAGR : 25% $1.36 YTD/09 vs. YTD/10 US$)(3,4) $1.05 w per Share (U $ $1.01 $0.93 $0.80 Adjussted Cash Flow $0.56 $0.51 $0.45 FY/04 FY/05 FY/06 FY/07 FY/08 FY/09 YTD Q3/09 YTD Q3/10 (3) Please refer to endnote
Slide 8: Strong Balance Sheet
Strong Balance Sheet • Cash on hand: ~$1.5 bn* • Long‐term Long term investments: $713 mm o Includes equity investment portfolio valued at ~$292 mm As at September 30, 2010 $1,381 US$ millions $713 $524 Cash and cash equivalents Long‐term investments Long‐term debt * After sale of Osisko Mining Corp
Slide 9: Kinross Project Portfolio
Kinross Project Portfolio 2011 2012 2013 2014 2015 Paracatu 3rd Ball Mill Paracatu Desulphurization Maricunga SART Plant Paracatu 4th Ball Mill Dvoinoye Tasiast Lobo Marte Lobo‐Marte Fruta del Norte Cerro Casale Conceptual timeline based on current Company estimates. 9
Slide 10: Exploration Update at Tasiast
Exploration Update at Tasiast • Added 11 drills since acquisition; 22 rigs currently on‐site o 16 currently on West Branch • Completed ~194,000 m of drilling in 2010 • Scoping study completed in December • Feasibility study expected to be complete mid‐2011 • Reserve & resource update on Feb. 16th wi
Slide 11: Plan View of Drilling at Tasiast
Plan View of Drilling at Tasiast 11
Slide 12: Greenschist Target
Greenschist Target Aug.’09: 17 m at 1.69 g/t Jan’10: 84 m at 1.92 g/t Aug. ’09: 21 m at 1.74 g/t Jan.’10: 85 m at 2.42 g/t Jan.’10: 94 m at 2.78 g/t Sep.’10: 81 m at 3.00g/t Sep.’10: 45 m at 4.26 g/t Sep.’10: 74 m at 4.52 g/t Scale 100 m Felsic Volcanic Banded Iron Formation Volcaniclastic G
Slide 13: Resource Growth at Tasiast
Resource Growth at Tasiast • 3.2 mm oz of Inferred Resource added in November 2010 5.1 unces (millions)(5,6) 1.9 1.4 92 9.2 93 9.3 Ou 0.8 5.4 3.7 Year‐end 2008 November 2009 September 2010 November 2010 Measured & Indicated Mineral Resources Inferred Mineral Resources Note: Mineral Resources are rep
Slide 14: Tasiast: Conceptual Pit Shell
Tasiast: Conceptual Pit Shell 5 mm oz reserve pit 20 mm oz exploration target pit
Slide 15: Dvoinoye, Russia
Dvoinoye, Russia • Closed acquisition August 27, 2010 Pevek • Completed over 10,000 m of linear drilling Dvoinoye deposit & Vodorazdelnaya y • Completed road connection between site and concession paved highway to Pevek • Clearing of old mine infrastructure well underway ~100 km • Targeted to commen
Slide 16: Fruta del Norte, Ecuador
Fruta del Norte, Ecuador • Pre‐feasibility study completed at year‐end 2010 Quito o Details to be discussed with Q4 results Feb. 16 • Geotechnical and hydrogeological drilling on La Zarza and Colibri concessions • Progress on permit approvals at Colibri and La Zarza Gold Mineral Resources(7) Tonnes
Slide 17: Lobo-Marte, Chile
Lobo‐Marte, Chile • Updated pre‐feasibility study for Lobo‐Marte La Coipa completed p • Feasibility study in the first half of 2011 Lobo‐Marte ~110 km • Remain on schedule to submit the EIA in mid‐2011 Maricunga • Permitting an additional 20,000 m of drilling for 2011 Cerro Casale • Commissioning fo
Slide 18: Key Objectives for 2010
Key Objectives for 2010 Declare increased reserves Complete Lobo Lobo‐Marte Marte pre‐feasibility pre feasibility study Close sale of 25% of Cerro Casale Complete 18,000 drill program at Fruta del Norte Complete l investment in Red d Backk Mining Complete acquisition of Underwo
Slide 19: Why Kinross Now?
Why Kinross Now? 1 High 1. High‐growth growth major 2. Strong cash flow from pure gold production 3. Attractive valuation 19
Slide 20: Endnotes
Endnotes 1) For more information regarding Kinross’ preliminary operating results, and the production and cost outlook for 2010, including Kinross’ production and cost estimate for the West African assets acquired through the acquisition of Red Back Mining, the please refer to the news releases date
Slide 21: Kinross Gold Corporation
Kinross Gold Corporation 25 York Street, 17th Floor Toronto, ON M5J 2V5 Tel: 416 416‐365‐5123 365 5123 Toll‐Free: 1‐866‐561‐3636 www.kinross.com 21
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