Kinross Gold Corporation · TSX:K
Kinross Gold — Bank of America Merrill Lynch 2012 Global Mining, Metals & Steel Conference
24 slides from Kinross Gold's conference presentation, May 16, 2012
Slide 1: 2012 Bank of America Merrill Lynch Global Mining, Metal & Steel Conference
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 2012 BANK OF AMERICA MERRILL LYNCH GLOBAL MINING, METAL & STEEL CONFERENCE 1 CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION All statements, other than statements of historical fact, c
Slide 2: Kinross: Foundation for the Future
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 KINROSS: FOUNDATION FOR THE FUTURE 1. Strong financial and operating performance 2. Tasiast as cornerstone of Kinross’ long-term growth strategy 3. Stringent approach to project developmen
Slide 3: Focused in the World's Best Districts
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 FOCUSED IN THE WORLD’S BEST DISTRICTS Dvoinoye Kupol Fort Knox Kettle River-Buckhorn Round Mountain Tasiast Chirano Fruta del Norte Crixas Paracatu La Coipa Lobo-Marte Maricunga Cerro Casa
Slide 4: First Quarter 2012 Financial Results
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 FIRST QUARTER 2012 FINANCIAL RESULTS Revenue Adjusted Operating Cash Adjusted Net Earnings(1) +11% Flow(1) +16% -14% $397 $1,037 $203 $937 $340 $175 US$ millions $0.35/sh $0.18/sh $0.30/sh
Slide 5: Delivering Expanding Margins
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 DELIVERING EXPANDING MARGINS FY2005 – FY2011: $906 $902 • Average realized gold price: +238% • Kinross’ attributable margin(4,5): +433% $782 • 5-yr attributable margin CAGR: 27% $685 $530
Slide 6: Financial Strength & Discipline
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 FINANCIAL STRENGTH & DISCIPLINE • Received investment grade credit ratings from all three major rating agencies • Approximately $1.6 bn of adjusted cash flow(1) in 2011. MARKET CAP CASH AN
Slide 7: High Quality Expansion & Growth Projects
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 STAKING DISTRICTS, ADDING RESOURCES, IMPROVING GRADE GOLD RESOURCES(6) 2P GOLD RESERVE EXPLORATION SPEND (mm oz.) GRADE(6) ($ mm) Proven & Probable Gold Reserves (g/t) Measured & Indicated
Slide 8: Capital Allocation Framework
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 CAPITAL ALLOCATION FRAMEWORK • Rationale: multiple projects to build amidst tight project construction environment • Total annual capital spending will be based on a conservative estimate
Slide 9: Tasiast, Mauritania
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 TASIAST, MAURITANIA Greenstone Rocks • Expanded drilling program focused Banded Iron Fm around existing Tasiast mine Intrusives Felsic Volcanics Greenschist Tenements • 8 km of 75 km struc
Slide 10: Tasiast, Mauritania: West Branch / Piment Orebodies
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 TASIAST, MAURITANIA • Tasiast expansion is key growth priority • 60,000 tpd mill-only option base case scenario • Work continues to determine optimal processing scenario Expect to make a
Slide 11: Tasiast Project Optimization
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 TASIAST PROJECT OPTIMIZATION • Continuing to analyze existing Tasiast mineral resource estimate according to a potential split between CIL, dump leach and heap leach processing options(6):
Slide 12: Tasiast, Mauritania
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 TASIAST, MAURITANIA • Continue to expand mine fleet and accelerate mining activity Mine fleet increased to 41 haul trucks Mining rate expected to increase to ~90 mta in 2012 • Basic in
Slide 13: Dvoinoye Feasibility Study
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 DVOINOYE FEASIBILITY STUDY • Completed on schedule and received Board approval for full project funding • Expected to increase Kupol mill throughput to 4,500 tpd • Dvoinoye production expe
Slide 14: Dvoinoye, Russia
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 DVOINOYE, RUSSIA • Underground development ahead of plan At end of Q1, 1,000 m completed To date, 2,730 m since development began • Earthworks and roads for site facilities are largely
Slide 15: Pompeya: New Discovery at La Coipa
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 POMPEYA: NEW DISCOVERY AT LA COIPA • Significant gold and silver discovery • Located 3 km northeast of La Coipa mill Part of the CMLC JV property (75% Kinross) • Conducting step-out and
Slide 16: Lobo-Marte, Chile
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 LOBO-MARTE, CHILE • Expected heap leach operating with SART plant • Continuing with further drilling at nearby Valy target • Re-evaluating various project configurations as part of ongoing
Slide 17: Fruta del Norte, Ecuador
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 FRUTA DEL NORTE, ECUADOR • Continuing negotiations with Ecuadorian government on enhanced economic package • Expect to proceed only when satisfied with terms of final agreements and have p
Slide 18: Fort Knox, USA (100%)
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 APPENDIX 35 FORT KNOX, USA (100%) • Located in Alaska • Expansion and new heap leach to extend mine life OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) OF SALES ($/oz.) Q1 2012
Slide 19: Round Mountain, USA (50%)
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 ROUND MOUNTAIN, USA (50%) • Kinross-operated JV with Barrick • Located in Nevada, USA • Open-pit mine OPERATING RESULTS PRODUCTION PRODUCTION COST OF (Au eq. oz.) SALES ($/oz.) Q1 2012 44,
Slide 20: Kupol, Russia (100%)
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 KUPOL, RUSSIA (100%) • Completed transaction increasing ownership to 100% from 75% on April 27, 2011 • 3,000 tpd mill with open-pit and underground OPERATING RESULTS PRODUCTION PRODUCTION
Slide 21: Crixas, Brazil (50%)
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 CRIXAS, BRAZIL (50%) • JV with AngloGold Ashanti • Underground mine located in the Brazil OPERATING RESULTS PRODUCTION PRODUCTION COST OF (Au eq. oz.) SALES ($/oz.) Q1 2012 15,889 $805 FY
Slide 22: Maricunga, Chile (100%)
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 MARICUNGA, CHILE (100%) • Located in the highly prospective Maricunga District • Open pit, heap leach operation OPERATING RESULTS PRODUCTION PRODUCTION COST OF (Au eq. oz.) SALES ($/oz.) Q
Slide 23: Chirano, Ghana (90%)
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 CHIRANO, GHANA (90%) • 90% owned by Kinross; Government of Ghana holds a 10% carried interest • 9 open-pits and 2 recently-discovered underground deposits OPERATING RESULTS PRODUCTION PROD
Slide 24: Kinross Gold Corporation
KINROSS GOLD CORPORATION Bank of America Merrill Lynch 2012 Global Mining & Metals Conference May 15 – 17, 2012 KINROSS GOLD CORPORATION 25 YORK STREET, 17TH FLOOR TORONTO, ON M5J 2V5 WWW.KINROSS.COM 47 24
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