Kinross Gold Corporation · TSX:K
Kinross Gold — Investor Presentation (March 2011)
65 slides from Kinross Gold's investor presentation, Mar 28, 2011
Slide 1: Delivering Disciplined Growth: West Africa Mine Tour
DELIVERING DISCIPLINED GROWTH WEST AFRICA MINE TOUR March 28-31, 2011 1
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: Additional Notes on Technical Information Disclosed in This Presentation
ADDITIONAL NOTES ON TECHNICAL INFORMATION DISCLOSED IN THIS PRESENTATION For additional information regarding the exploration, scientific and technical disclosure in this presentation, including applicable assumptions, processes, quality assurance / quality control and geological data, please refer
Slide 4: Tye Burt, President & CEO
TYE BURT President & CEO TYE BURT CHIEF EXECUTIVE OFFICER 4
Slide 5: The Kinross Way: A Strategic Blueprint
THE KINROSS WAY: A STRATEGIC BLUEPRINT CORE VALUES STRATEGY TACTICS PURPOSE External Stakeholder Annuall F A Four-Point P i t 1. Putting People First Environment Objectives Plan: LEADING THE • Key Elements WORLD IN 2. Outstanding GENERATING Corporate Citizenship • Priorities VALUE Long-Term • Metric
Slide 6: Kinross' Evolution
KINROSS’ EVOLUTION KINROSS 2005 2010 2015E Employees 3,000 7,000 10,000 Assets Non-Operated JVs 10 Operating Mines 12 Operating Mines Regions Various Geographies Focus in Core Regions Focus in Core Regions Production (mm oz) 1.6 2.3 4.5 - 4.9(1) Margin (US$/oz)(2,3) $170 $683 ↑ C h fl Cash (US$mm))(
Slide 7: Focus on Portfolio Optimization
FOCUS ON PORTFOLIO OPTIMIZATION DIVESTITURES ACQUISITIONS Blanket Mine (Zimbabwe) Buckhorn Mine (U.S.) Australian interests Kupol Mine (Russia) DRC investment Cerro Casale JV (Chile) New Britannia (Canada) Maricunga JV (Chile) Aquarius (Canada) La Coipa JV (Chile) Hammond Reef (Canada) FDN project (
Slide 8: Production Growth Track Record
PRODUCTION GROWTH TRACK RECORD 4.5 – 4.9 Gold equivalent production (mm oz.) 2.5 – 2.6 2.2 2.3 18 1.8 1.5 1.6 G (1) (1) 2006 2007 2008 2009 2010 2011E 2015E (1) Refer to endnote #1. 8
Slide 9: Delivering Expanding Margins
DELIVERING EXPANDING MARGINS 2005 – 2010: $683 • Average realized gold price: +168% • Kinross’ attributable cost of sales margin(2,3): +302% +302% $530 $436 $329 $279 $170 2005 2006 2007 2008 2009 2010 (2) Refer to endnote #2. (3) Refer to endnote #3. 9
Slide 10: Growing Cash Flow per Share
GROWING CASH FLOW PER SHARE • 5-yr CAGR : 21% $1.36 $1.32 w per Share (US$)(4) $1.01 $0.80 Adjustted Cash Flow $0.56 $0.51 2005 2006 2007 2008 2009 2010 (4) Refer to endnote #4. 10
Slide 11: Increasing Gold Resources
INCREASING GOLD RESOURCES 110 Inferred Resources 140 Measured & Indicated Resources 100 Proven and Probable Reserves 120 T t l resource ounce per 1,000 Total 1 000 shares h 24 0 24.0 90 00 shares 80 100 esources (mm oz.)(5) 16.2 70 17.7 20.7 Gold resource oz per 1,00 7.0 80 60 16.6 11.1 13.7 50 60 G
Slide 12: Improving Grade Profile
IMPROVING GRADE PROFILE Kinross Barrick Goldcorp Newmont 2.5 Mineral Reserrve Grade (g/t) 2.0 1.5 and Probable M 1.0 0.5 Proven a 0.0 2005 2006 2007 2008 2009 2010 Source: Company reports 12
Slide 13: Resource Growth at Tasiast
RESOURCE GROWTH AT TASIAST 8.6 ons)(5,6) 5.1 Ounces (millio 1.9 2.1 1.3 O 14 1.4 9.2 9.3 0.8 7.6 6.5 5.4 37 3.7 Year-end 2008 November 2009 August 2010 September 2010 November 2010 Year-end 2010 Proven and Probable Mineral Reserves Measured & Indicated Mineral Resources (inclusive of 2P reserves) Me
Slide 14: Driving Kinross Strategy
DRIVING KINROSS STRATEGY A. OPTIMIZE CORE OPERATIONS ON ANIZATIO • High-quality, predictable, long-life mines • Drive value from core vs. non-core assets STRATEGY • Tight cost control / strong margins • Operational excellence and CI 1 Growth in 1. • Manageable geographic spread ECTIVE ORGA precious
Slide 15: Dr. Glen Masterman, SVP Exploration
DR. GLEN MASTERMAN SENIOR VICE-PRESIDENT, EXPLORATION 15
Slide 16: Tasiast, Mauritania
TASIAST, TASIAST MAURITANIA 16
Slide 17: Tasiast Regional Geology
TASIAST REGIONAL GEOLOGY # Producing Mine # Exploration / Development Project 1) Tasiast (Kinross) - –Au Tasiast(Robinson) Au 2) Guelb Moghrein (First Quantum) – Cu/Co/Au 3) Askaf(Sphere Askaf (Xstrata)Minerals) - Au – Iron Ore 4) Guelbel Guelb el Aouj Aouj(Sphere – Iron Ore (Xstrata)Minerals) – Iro
Slide 18: Tasiast, Mauritania
TASIAST, MAURITANIA Greenstone Rocks • Expanded drilling program focused Banded Iron Fm around existing Tasiast mine Intrusives Felsic Volcanics Greenschist • Only 8 km of 70 km strike length tested Tenements Tasiast Shear 2010 Resource Shell 20.0 km 18
Slide 19: Progression of Drilling at Tasiast
PROGRESSION OF DRILLING AT TASIAST January 2011 February 2010 April 2009 Tasiast Shear 2010 Resource Shell 19
Slide 20: Advancing Exploration at Tasiast
ADVANCING EXPLORATION AT TASIAST South North • Accelerated drill program 26 rigs g ((17 core/9 reverse circulation)) • Widened drill spacing to expand coverage • Completed 64,000 metres drilling Q4 2010 and 70,000 metres since beginning of 2011 • Defined extended mineralization in Greenschist Zone
Slide 21: Tasiast Orebody & Resource Pit
TASIAST OREBODY & RESOURCE PIT 21
Slide 22: The Greenschist Zone Long-Section
THE GREENSCHIST ZONE LONG-SECTION 22
Slide 23: Continuation of Greenschist Target
CONTINUATION OF GREENSCHIST TARGET West East Wedging and directional drilling to access intersect target at depth 23
Slide 24: Geologic Model
GEOLOGIC MODEL PROJECT LAYOUT SCHEMATIC X-SECTION PIMENT SUD PIMENT SUD NORD PIMENT WEST BRANCH CENTRAL FOOTWALL ZONE GREENSCHIST ZONE PIMENT NORD 24
Slide 25: Greenschist Target: Section 70846
GREENSCHIST TARGET: SECTION 70846 From To Au (g/t) 696 697 5.31 697 698 1.54 698 699 2.33 699 700 3.11 700 701 13.8 701 702 2.35 702 703 7.62 703 704 1.52 704 705 6.05 6124ARC: 19m @ 1.8 g/t* 705 706 5.29 706 707 3.96 Hole 5034RD: 707 708 4.56 Assays Pending 708 709 2.97 (5105RD) 7m @ 4.6 g/t 709 71
Slide 26: Banded Iron Formation
BANDED IRON FORMATION BANDED IRON FORMATION • Thinly bedded quartz-magnetite+/-grunerite • Intercalated with garnetiferous greenschist • Gold grades 0.5-1.0 g/t Au where mineralized Po-cb replacement of magnetite bands BANDED IRON FORMATION FELSIC UNIT • Pale gray, highly sheared, pyritic • Can ha
Slide 27: GST Greenschist Unit
GST 1 GREENSCHIST UNIT • Green, with large pink garnets • Pyrite usually > pyrrhotite • Actinolite + garnet > biotite • Can have calcite-epidote-magnetite • Weak / no gold • Mafic volcaniclastic? 27
Slide 28: GST Greenschist Unit
GST 2 GREENSCHIST UNIT 2 • Green - black, can have fine garnets • Transitional between GST 1 & BST • Biotite > actinolite + garnet • Often mineralized, but generally lower grades than BST • Usually defines >0.5 0.5 g/t envelope • Veins are generally parallel to foliation 28
Slide 29: BST Greenschist Unit
BST GREENSCHIST UNIT • Black, coarse Bi on foliation, Plag feldspar • No actinolite or garnet • Mafic volcanic unit? • Pyrrhotite >> pyrite. Sulfides generally 2 – 4% • Magnetic • Always mineralized, loosely defines >2 g/t contour • Veins generally cut foliation at 10 – 30 deg • Veins often contain
Slide 30: Cross Section 71411N
CROSS SECTION 71411N +100 m • BST correlates strongly g y with: 0m ‐100 m Dolerite dike ‐200 m Major shear Volcaniclastic Banded Iron Formation Felsic Volcanic Greenschist ‐300 m GST 1 GST 2 BST 100 Meters ‐400 m 47500mE 47200mE 46900mE ‐500 m 30
Slide 31: Cross Section 71411N
CROSS SECTION 71411N +100 m • BST correlates strongly g y with: 0m 1. High grade gold (> 2 g/t) ‐100 m Dolerite dike ‐200 m Major shear Volcaniclastic Banded Iron Formation Felsic Volcanic Greenschist ‐300 m GST 1 ASSAYS GST 2 PENDING BST GOLD g/t 100 Meters >2 ‐400 m > 0.5 47500mE 47200mE 46900mE ‐
Slide 32: Cross Section 71411N
CROSS SECTION 71411N +100 m • BST correlates strongly g y with: 0m 1. High grade gold (> 2 g/t) 2. High g ‐100 m concentration of sulfides (> 2%) Dolerite dike ‐200 m Major shear Volcaniclastic Banded Iron Formation Felsic Volcanic Greenschist ‐300 m GST 1 GST 2 BST TOTAL SULFIDE > 2% 100 Meters ‐40
Slide 33: Cross Section 71411N
CROSS SECTION 71411N +100 m • BST correlates strongly g y with: 0m 1. High grade gold (> 2 g/t) 2. High g ‐100 m concentration of sulfides (> 2%) Dolerite dike ‐200 m 3. High vein Major shear Volcaniclastic d densities iti ((>4%) 4%) Banded Iron Formation Felsic Volcanic Greenschist ‐300 m GST 1 GST
Slide 34: District Exploration
DISTRICT EXPLORATION C23 • Prolongation / Piment Deeper drilling to extend mineralization and target GST-style potential • C69 / Charlize C67 34m at 1.71g/t Accelerate drilling on Charlize C target 4m at 11.10g/t Aoeouat 19m at 1.19g/t 15m at 3.72g/t and assess opportunity for resource 12m at 2.
Slide 35: Tasiast Sud (Charlize & TSud)
TASIAST SUD (CHARLIZE & TSUD) • Significant RC results: Fe formation High grade 18m @ 1.37 g/t 4m @ 2.88 g/t 18m @ 0.82 g/t 9m @ 1.48 g/t Fe formation High grade 100m 15m @ 0.99 g/t High grade 35
Slide 36: C67 Prospect – Recent Results
C67 PROSPECT – RECENT RESULTS • BIF-style oxide gold target encountered in recent shallow drilling • Continuation to the North of known mineralisation at C67 • P Prolongation l ti North N th extension intersected along regional infill 8m @ 0.75g/t 8m @ 2.21g/t 2m @ 0.99g/t 1m @ 9.33g/t lines 11m @ 0
Slide 37: Other Long-Term Initiatives
OTHER LONG-TERM INITIATIVES REGIONAL GEOCHEMISTRY • Reassess effectiveness of original soil geochem surveys Regolith map y soil and drill pulps Reanalyze p p byy multi- element ICP • Lithogeochemical mapping – fingerprint and target BST along the belt • Alteration zonation (e.g., K, Na, Ca) • Fi
Slide 38: Advancing Tasiast
ADVANCING TASIAST • 26 drills currently on site 17 Diamond, Diamond 9 RC • New sample prep facility in Nouakchott • Construction of site Super Lab well advanced 2011 EXPLORATION PROGRAM • Spending $55 million • Engineering drilling to support feasibility study • 130,000 m drilling at West Branch f
Slide 39: Chirano, Ghana
CHIRANO GHANA 39
Slide 40: Birimian Geology
BIRIMIAN GEOLOGY COUNTRY % GREENSTONE BELT +1Moz Au DEPOSITS Ghana 19 110 Moz Mali 10 33 Moz Burkina Faso 22 12 Moz Guinea 11 12 Moz Ivory Coast 35 8 Moz Senegal 3 3 Moz TOTAL +178 Moz 40
Slide 41: Chirano Geology
CHIRANO GEOLOGY 3 MAJOR STRUCTURES • Bibiani Shear Zone – Belt Margin • Chirano Shear Zone – splay • Lode Horizon – hosts mineralisation HOST OF GOLD MINERALIZATION • Mafic Volcanics 80% • Tonalite 20% 2010 GOLD RESERVES AND RESOURCES(1) TONNES GRADE OUNCES (thousands) (g/t) (thousands) Tasiast 2P R
Slide 42: Advancing Exploration at Chirano
ADVANCING EXPLORATION AT CHIRANO • Two drills active (1 core and 1 multi- p p purpose) ) Following up positive drill results at Akoti Testing potential of ore shoot extensions below Obra pit • Technical focus on improving geologic model More M robust b t resource estimates ti t Application o
Slide 43: Chirano Lode Horizon
CHIRANO LODE HORIZON 1km Kolua Splay: OBRA and TANO down 27m @ 1.92g/t (52gm) plunge extension targets 14m @ 4.08g/t (57gm) 43
Slide 44: Akwaaba
AKWAABA 31250 31300 31350 31400 31450 31500 31550 31600 31650 31700 31750 31800 31850 2400 2400 EXPLORATION MODEL AKWAABA GRAM METRES LONG SECTION JANUARY 2008 2350 2350 Scale 1: 1000 Author: E.K. Baaku 2300 Discovery hole 2300 • Poor surface expression CHRC541 CHRC293 CHRC659 CHRC312 1/9.6 15m at 1
Slide 45: Section 31570mN
SECTION 31570mN 2,300 mN 4.5m at 1.88g/t • Gold controlled by ductile shear zone, 4.0m at 1.67g/t with alternating ductile/brittle regime, 3.0m at 13.95g/t g giving rise to black and brown breccia Granite (high grade) 2,200 mN 5.0m at 1.97g/t 14.2m at 2.14g/t • Quartz porphyries bracket minerali ati
Slide 46: Evolving Geologic Model
EVOLVING GEOLOGIC MODEL NEW GEOLOGIC MODEL • Gold centrally zoned around ductile/brittle shears h • Explains grade control ARKOSE model Chirano Shear ? Minerralization MAFIC VOLCANIC ear Obra West Sh GRANITE PREVIOUS MODEL Gold distributed between two brittle Faults. But resource model doesn’t match
Slide 47: Akoti – Recent Drill Results
AKOTI – RECENT DRILL RESULTS Hole ID From To Length Au_ppm CHDD1630W1 603 615 12 1.46 Akoti South Akoti North CHDD1641 483 491 8 7.01 And 518 557 39 3.35 Including 518 528 10 6.21 Also Including 531 557 26 2.61 CHDD1641W1 470 479 9 5.47 And 493.8 533.9 40.1 1.73 Including 493.8 499.45 5.65 3.04 A d
Slide 48: Obra – Targeting Shoot Extensions
OBRA – TARGETING SHOOT EXTENTIONS • High accumulate of near surface g gold on shear • Target steep plunging ore -100m shoot analogous to Akwaaba and Paboase -200m -300m -400m -500m Target: steep plunging shoot -600m (e.g., Akwaaba and Paboase) -700m -800m 48
Slide 49: Tano – Targeting Shoot Extensions
TANO – TARGETING SHOOT EXTENSIONS 18 m/ 2.72 27 m/ 4.1 20.1 m/ 2.36 8.2 m/ 1.0 13m / 1.8 4.9 m/ 1.43 44 m/ 3.4 7 m/ 2 7 m// 6.9 7 m/ 3.0 31 m/ 2 22.6 m/ 2.9 12 m/ 2.84 TANO Deep extension 500m 49
Slide 50: Kolua
KOLUA Hole ID From To Length Au_ppm CHDD1649 113 116.5 3.5 1.7249 CHDD1655 79 80 1 2.46 CHDD1655 125 128 3 0.8567 CHDD1659 102 116 14 4.0754 CHDD1666 218.8 220 1.2 1.63 TAR RGETED SHOOT 100m S m 50
Slide 51: Dr. Ken Thomas, SVP Projects
DR. KEN THOMAS SENIOR VICE-PRESIDENT, PROJECTS 51
Slide 52: Tasiast Scoping Study
TASIAST SCOPING STUDY • Scoping study complete • New N processing i plant l t with ith expected t d 60,000 60 000 ttpd d throughput – total 68,000 tpd • 16-year mine life • Expected avg. annual production of 1.5 mm oz (first 8 full yrs) o Expected avg. grade of 2 g/t o Expected avg. recoveries of 93
Slide 53: Tasiast Plant Pictorial Flowsheet
TASIAST PLANT PICTORAL FLOWSHEET ORE FROM OPEN PIT PRELEACH CRUSHING SAG & BALL GRINDING THICKENING LIME CYANIDE CARBON IN LEACH (CIL) TAILINGS CYANIDE TAILINGS THICKENING DESTRUCTION DAM CARBON ACID WASH & GOLD ELECTROWINNING SMELTING DORE53 ELUTION
Slide 54: Tasiast, Mauritania
TASIAST, MAURITANIA • Ordered key processing and mining equipment • Retained international EPCM joint-venture firm for feasibility study o Basic engineering commencing Q2 2011 • Appointed RVP, West Africa and Tasiast Project Director • Feasibility study expected to be complete mid-2011 • Constructio
Slide 55: Feasibility Study: Third Parties
FEASIBILITY STUDY: THIRD PARTIES THIRD PARTY FEASIBILITY STUDY & DESIGN Hatch / Saipem JV TAILINGS GS DAM & PLANT GEOTECH G O C Klohn o C Crippen ppe Berger e ge ENVIRONMENTAL ASSESSMENT Scott Wilson (UK office) PIT DESIGN & SCHEDULING AMC Consultants DRILLING & BLASTING DESIGN Blast Dynamics (Canad
Slide 56: Equipment Ordered
EQUIPMENT ORDERED • Major equipment for the expansion ordered: PROCESSING MINING (1) 60 x 89 in Metso primary crusher (17) Cat 793D haul trucks (2) MP-1000 cone crushers (2) Bucyrus RH340 shovels (1) FLS 40 x 25’ SAG mill, 26 MW (4) Cat D10 track dozers (2) FLS 25 x 46’ Ball mills, 20 MW (2) Cat 854
Slide 57: Expansion Schedule
EXPANSION SCHEDULE KEY TASK 2011 2012 2013 2014 FEASIBILITY ENGINEERING PERMITTING RAMP-UP OF MINING RATE PROCUREMENT CONSTRUCTION COMMISSIONING PRODUCTION RAMP RAMP-UP UP Conceptual timeline based on current Company estimates. 57
Slide 58: 2011 Reserve & Engineering Drill Program
2011 RESERVE & ENGINEERING DRILL PROGRAM CUM. METERS PROGRAM PERCENT EXPECTED TO BE ACHIEVED TOTAL METERS COMPLETE COMPLETE Greenschist G hi t 70x70m 70 70 IInfill fill 14,995 27,370 55 April 2011 Jan Shell (DD) Greenschist 70x70m Infill 15,834 17,000 93 April 2011 Jan (RC) Piment 50x50m 24,088 53,9
Slide 59: Feasibility Study Progress
FEASIBILITY STUDY PROGRESS • Feasibility study expected to be complete mid-2011 Engineering 36% complete (end of March) • Basic engineering initiated: Airport Access road Camp expansion 59
Slide 60: Sea Water and 90 Micron Grind
SEA WATER AND 90 MICRON GRIND • Ammtec testing completed late 2010 Selected grind size (under review) 60
Slide 61: Power
POWER • Base load: 100 MW • M i Maximum continuous ti lload: d 135 MW • Peak load: 155 MW PHASE 1 PHASE 2 FUEL TYPE Heavy Fuel Oil Heavy Fuel Oil SIZE ~24 MW ~160 MW UNIT SIZE ~4 MW ~16 MW READY TO WORK December 2012 November 2013 61
Slide 62: Water
WATER • Seawater supply • Water extraction site identified 150 km northeast of Tasiast along coast • Initial pump testing recently completed and recharge results encouraging • Hydrogeologic modeling initiated • Review 62
Slide 63: Possible Rail Line Location
POSSIBLE RAIL LINE LOCATION E i ti R Existing Railil Li Line K Kupol l Rail Extension 84 km Rail Extension 63
Slide 64: Endnotes
ENDNOTES 1) For more information regarding Kinross production and cost forecast for 2011 and production target for 2015, please refer to the press release dated February 16, 2011, available on our website at www.kinross.com. 2) Cost of sales per ounce is defined as cost of sales as per the financial
Slide 65: Kinross Gold Corporation
KINROSS GOLD CORPORATION 25 YORK STREET, 17TH FLOOR TORONTO, ON M5J 2V5 WWW.KINROSS.COM 65