Kinross Gold Corporation · TSX:K
Kinross Gold — Scotia Capital 2011 Mining Conference
30 slides from Kinross Gold's conference presentation, Nov 29, 2011
Slide 1: A High-Growth Pure Gold Producer
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 A HIGH-GROWTH PURE GOLD PRODUCER SCOTIA CAPITAL 2011 MINING CONFERENCE November 29, 2011 1 CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION All statements, other than statements of historical fact, contained or incor
Slide 2: Why Kinross?
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 WHY KINROSS? 1. Pure gold, high-growth senior producer 2. Robust operating cash flow from 10 operating mines today 3. Attractive valuation: leveraged cash flow, growth and exploration 3 GROWTH THROUGH PROJECT DEVELOPMEN
Slide 3: Kinross Today
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 KINROSS TODAY 5 KINROSS TODAY • US$15 bn market capitalization* • 2.6 – 2.7 mm oz. Au eq. in 2011e growing to 4.5 – 4.9 mm oz. in 2015e(1) • Strong liquidity position: $1.9 bn cash on balance sheet • Proven developer in
Slide 4: Focused in the World's Best Districts
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 FOCUSED IN THE WORLD’S BEST DISTRICTS Dvoinoye Kupol Fort Knox Kettle River-Buckhorn Round Mountain Tasiast Chirano Fruta del Norte Crixas Paracatu La Coipa Lobo-Marte Maricunga Cerro Casale 10 operating mines 5 develop
Slide 5: Overall 2011 Outlook Confirmed
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 OVERALL 2011 OUTLOOK CONFIRMED(1) Production % of Total Production Cost of Sales(3) Region (000 ounces) Production ($/oz.) South America 945 – 980 36% $650 – $675 North America 625 – 645 24% $625 - $685 West Africa 440
Slide 6: Delivering Expanding Margins
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 DELIVERING EXPANDING MARGINS 2005 – Q3 2011: $1,012 • Average realized gold price: +270% • Kinross’ attributable margin(5): +495% $873 $784 +495% $683 Attributable margin (US$/oz.) $530 $436 $329 $279 $170 2005 2006 200
Slide 7: Improving Grade Profile
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 IMPROVING GRADE PROFILE Barrick Goldcorp Newmont Kinross 1.5 Proven and Probable Gold Reserve Grade Growth 1.4 1.3 1.2 (2005 index = 1) 1.1 1.0 0.9 0.8 0.7 0.6 0.5 2005 2006 2007 2008 2009 2010 Source: Company reports 1
Slide 8: Project Pipeline
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 PROJECT PIPELINE Project 2011E 2012E 2013E 2014E 2015E Organic growth Maricunga SART plant Paracatu 4th ball mill Dvoinoye Tasiast Development Lobo-Marte Fruta del Norte Cerro Casale Conceptual timeline based on current
Slide 9: Tasiast, Mauritania
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 TASIAST, MAURITANIA Greenstone Rocks • Expanded drilling program focused Banded Iron Fm around existing Tasiast mine Intrusives Felsic Volcanics Greenschist Tenements • Only 8 km of 80 km strike length tested Tasiast Sh
Slide 10: Tasiast Deposit Long-Section
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 C67 TARGET: TASIAST DISTRICT EXPLORATION C67 DRILL HOLE LOCATION PLAN OVERLYING GEOLOGY • Gold mineralization currently defined over 800 strike metres • Results continue to be strongly TA06410RC TA06403RC encouraging 37
Slide 11: Resource Growth at Tasiast
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 RESOURCE GROWTH AT TASIAST(6,8) +173% Gold resource ounces (millions) 4.6 8.6 5.1 9.1 1.9 2.1 1.3 1.4 0.8 9.2 9.3 6.5 7.6 7.6 5.4 3.7 Year-end November August September November Year-end June 2008 2009 2010 2010 2010 20
Slide 12: Fruta del Norte, Ecuador
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 FRUTA DEL NORTE, ECUADOR 23 FRUTA DEL NORTE, ECUADOR • Prepared pre-feasibility study and technical report • Underground operation estimated 16-year mine life • LOM avg. production estimate : 410k Au eq. oz. / year • Ph
Slide 13: Fruta del Norte, Ecuador
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 FRUTA DEL NORTE, ECUADOR • Development of the exploration decline is on target and expected to be complete in 2013 • Mine and plant EIAs submitted in October • Negotiations have progressed on exploitation agreement • Co
Slide 14: Lobo-Marte, Chile
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 LOBO-MARTE, CHILE • Expected 47,000 tpd heap leach with SART plant • 10-year mine life with estimated production of 350k oz. / year • Drilling for feasibility study has been completed • Re-deploying drills to Valy and M
Slide 15: Dvoinoye, Russia
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 DVOINOYE, RUSSIA • Underground mine with an expected 8-year mine life Expected avg. output of 900 tonnes per day (2013-2020) • Ore to be processed at the Kupol mill Throughput expected to increase to 4,000 tpd • Dev
Slide 16: Pompeya: New Discovery at La Coipa
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 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) • Significant intersections include: DPMP-006: 58 m @ 1
Slide 17: Scotia: P/NAV and P/2012e Cash Flow
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 SCOTIA: P / NAV 1.5 1.5 1.4 1.3 1.2 1.0 NEWMONT GOLDCORP YAMANA AGNICO BARRICK KINROSS Source: Scotia Capital research – November 28, 2011 33 SCOTIA: P / 2012e CASH FLOW 10.6 9.0 8.2 7.1 7.0 6.9 GOLDCORP YAMANA AGNICO N
Slide 18: Total Resource Ounces per $1,000 Invested
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 TOTAL RESOURCE OUNCES PER $1,000 INVESTED 7.2 Ounces of Total Gold Resources Acquired per $1,000 invested 5.6 5.4 5.1 4.1 4.0 (oz./$1,000) 3.2 2.6 0.6 KINROSS NEWCREST AGNICO BARRICK NEWMONT YAMANA RANDGOLD GOLDCORP GOL
Slide 19: Key Objectives
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 KEY OBJECTIVES ADVANCING OUR PROJECTS Complete Tasiast scoping study Complete Fruta Del Norte pre-feasibility Complete Dvoinoye scoping study Complete Lobo-Marte feasibility study Complete Fruta del Nort
Slide 20: Fort Knox, USA (100%)
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 APPENDIX 39 FORT KNOX, USA (100%) • Located in Alaska • Expansion and new heap leach to extend mine life OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) YTD Q3 2011 219,035 $675 FY 2010 349,729 $550 20
Slide 21: Round Mountain and Kettle River-Buckhorn, USA
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 ROUND MOUNTAIN, USA (50%) • Kinross-operated JV with Barrick • Located in Nevada, USA • Open-pit mine OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) YTD Q3 2011 143,860 $728 FY 2010 184,554 $657 2010
Slide 22: Kupol, Russia and Paracatu, Brazil
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 KUPOL, RUSSIA (100%) • Completed transaction increasing ownership to 100% from 75% on April 27, 2011 • 3,000 tpd mill with open-pit and underground OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) YTD Q
Slide 23: Crixas, Brazil and La Coipa, Chile
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 CRIXAS, BRAZIL (50%) • JV with AngloGold Ashanti • Underground mine located in the Brazil OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) YTD Q3 2011 45,802 $841 FY 2010 74,777 $486 2010 GOLD RESERVES
Slide 24: Maricunga, Chile and Tasiast, Mauritania
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 MARICUNGA, CHILE (100%) • Located the highly prospective Maricunga District • Open pit, heap leach operation OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) YTD Q3 2011 181,968 $468 FY 2010 156,590 $74
Slide 25: Chirano, Ghana (90%)
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 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 (90%) PRODUCTION PRODUCTION COST (Au eq. oz.)
Slide 26: Growing Cash Flow per Share
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 GROWING CASH FLOW PER SHARE • 5-yr CAGR : 21% $1.36 $1.32 Adjusted Cash Flow per Share (US$)(2) $1.08 $1.01 $0.80 $0.56 $0.51 2005 2006 2007 2008 2009 2010 First 9 months of 2011 (2) Refer to endnote #2. 51 INCREASING G
Slide 27: Track Record of Reserve Growth
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 TRACK RECORD OF RESERVE GROWTH(6) Proven and Probable Gold Reserves (mm oz.) 31.5 63.3 33.8 11.9 19.4 9.5 2004 Mined Divested Acquired Exploration and Kinross Today Development (6) Please refer to endnote #6. 53 LEADING
Slide 28: Gold Production from New Projects
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 GOLD PRODUCTION FROM NEW PROJECTS +1.3(i) Estimated average annual gold production (mm oz) +0.41(ii) +0.35(ii) Tasiast Expansion Fruta del Norte Lobo-Marte (i) Does not include current Tasiast production; estimated aver
Slide 29: Increasing Kupol Ownership to 100%
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 INCREASING KUPOL OWNERSHIP TO 100% • Kinross increased Kupol ownership to 100% in 2011 Includes the Kupol East-West exploration licenses • Total consideration: approx. $350 million Financed through proceeds of Harry
Slide 30: Endnotes
KINROSS GOLD CORPORATION Scotia Capital 2011 Mining Conference November 29, 2011 ENDNOTES 1) “e” indicates an expectation. For more information regarding Kinross production and cost forecast for 2011, please refer to the press release dated November 2, 2011, available on our website at www.kinross.c