Kinross Gold Corporation · TSX:K
Kinross Gold — Shareholder Meeting (May 2012)
29 slides from Kinross Gold's shareholder meeting presentation, May 9, 2012
Slide 1: Annual General Meeting 2012
ANNUAL GENERAL MEETING 2012 May 9, 2012
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: Agenda
AGENDA 1. Review of operating and financial results 2. Kinross’ share price performance 3. Unlocking future value
Slide 4: Operating & Financial Review
OPERATING & FINANCIAL REVIEW
Slide 5: Delivering Strong Operating Results
DELIVERING STRONG OPERATING RESULTS Production (mm oz.)(1) Cost of Sales ($/oz.)(2) Attributable Margin ($/oz.)(3) +12% +18% +32% 2.6 $906 2.3 $596 $506 $685 2010 2011 2010 2011 2010 2011 (1) Refer to endnote #1. (2) Refer to endnote #2. (3) Refer to endnote #3.
Slide 6: Delivering Strong Financial Results
DELIVERING STRONG FINANCIAL RESULTS • Non-cash goodwill impairment reduced reported net earnings by approximately $2.9 billion Revenue Adjusted Operating Cash Flow(4) Adjusted Net Earnings(4) +31% +44% +79% 1.2 1800 2 $1,599 1.9 $872 1.1 1600 $3,943 1 1.8 1400 US$ millions 0.9 $3,010 1200 $1,110 1.7
Slide 7: First Quarter 2012 Highlights
FIRST QUARTER 2012 HIGHLIGHTS Revenue Adjusted Operating Cash Flow(4) Adjusted Net Earnings(4) +11% -14% +16% $397 $1,037 $203 $937 $340 $175 US$ millions $0.35/sh $0.18/sh $0.30/sh $0.15/sh Q1 2011 Q1 2012 Q1 2011 Q1 2012 Q1 2011 Q1 2012 (4) Refer to endnote #4.
Slide 8: Share Price Performance
SHARE PRICE PERFORMANCE S&P 500 Gold ETF Index of senior producers* Kinross 2005 2006 2007 2008 2009 2010 2011 Source: Bloomberg * Philadelphia Gold & Silver Index
Slide 9: Share Price Performance
SHARE PRICE PERFORMANCE • Significant external shocks to the equity markets • Increased perception of potential political volatility • Significant increases in industry-wide capital and operating costs • Increasingly risk-averse market and growth of prominence of the gold ETF • Impact of the Red Bac
Slide 10: Growing Cash Flow Per Share
GROWING CASH FLOW PER SHARE • 5-yr CAGR: 12% $1.41 $1.36 $1.35 Adjusted cash flow per share ($/sh)(4) $1.01 $0.80 $0.56 $0.51 2005 2006 2007 2008 2009 2010 2011 (4) Refer to endnote #4.
Slide 11: Tasiast: Cornerstone of Long-Term Growth
TASIAST: CORNERSTONE OF LONG-TERM GROWTH
Slide 12: Resource Growth at Tasiast
RESOURCE GROWTH AT TASIAST Proven and Probable Reserves +160% Measured & Indicated Mineral Resources (inclusive of reserves) Inferred Mineral Resources 1.9 Measured & Indicated Mineral Resources Gold ounces (millions)(5) 8.6 11.1 5.1 1.9 1.3 2.1 1.4 0.8 9.2 9.3 6.5 7.6 7.5 5.4 3.7 Year-end November
Slide 13: Tasiast District
TASIAST DISTRICT • Only 8 km of 75 km strike length tested C67 Piment & West Branch C69
Slide 14: Phase 1 Expansion Complete: New ADR Plant
PHASE 1 EXPANSION COMPLETE NEW ADR PLANT
Slide 15: Phase 1 Expansion Complete: New West Branch Dump Leach Facility
PHASE 1 EXPANSION COMPLETE NEW WEST BRANCH DUMP LEACH FACILITY
Slide 16: Phase 1 Expansion Complete: Stripping at West Branch
PHASE 1 EXPANSION COMPLETE STRIPPING AT WEST BRANCH
Slide 17: Tasiast Project Optimization
TASIAST PROJECT OPTIMIZATION • Preliminary selection of optimum processing approach expected at the end of Q2 2012 • Construction of new production facilities expected to commence mid-2013 • Ramp-up of new production facility targeted for 2015
Slide 18: Tasiast Recruiting
RECRUITING INVESTING IN OUR FUTURE AT TASIAST TASIAST RECRUITING
Slide 19: Training and Development
INVESTING IN OUR FUTURE AT TASIAST TRAINING AND DEVELOPMENT
Slide 20: Breaking Ground for New Emergency Care Facility
INVESTING IN OUR FUTURE AT TASIAST BREAKING GROUND FOR NEW EMERGENCY CARE FACILITY
Slide 21: The Tasiast District: Rare Opportunity for Pure Gold Growth
THE TASIAST DISTRICT RARE OPPORTUNITY FOR PURE GOLD GROWTH
Slide 22: Setting the Framework for Disciplined Growth
SETTING THE FRAMEWORK FOR DISCIPLINED GROWTH
Slide 23: Project Development & Capital Allocation
PROJECT DEVELOPMENT & CAPITAL ALLOCATION • Stringent approach to project development and capital allocation • Prioritized and re-sequenced project pipeline • Developed a strict framework for capital allocation PROJECT DEVELOPMENT & CAPITAL ALLOCATION • Stringent approach to project development and c
Slide 24: Dvoinoye, Russia
DVOINOYE, RUSSIA
Slide 25: Lobo-Marte, Chile
LOBO-MARTE, CHILE
Slide 26: Fruta del Norte, Ecuador
FRUTA DEL NORTE, ECUADOR
Slide 27: Kinross: Foundation for the Future
KINROSS: FOUNDATION FOR THE FUTURE 1. Pure-gold 2.6 – 2.8 million(6) ounce producer 2. Large gold reserve and resource base 3. Strong financial and operating performance 4. World-class gold growth assets with district potential 5. Stringent approach to project development and capital allocation 6. E
Slide 28: Endnotes
ENDNOTES 1) Unless otherwise noted, gold equivalent production, gold equivalent ounces sold and production cost of sales figures in this presentation are based on Kinross’ ownership interest in Kupol (75% to April 27, 2011 and 100% thereafter) and 90% interest in Chirano. 2) Production cost of sales
Slide 29: Slide 29