Kinross Gold Corporation · TSX:K
Kinross Gold — Q2 2018 Earnings Presentation
26 slides from Kinross Gold's earnings presentation, Aug 2, 2018
Slide 1: Second Quarter Results
Second Quarter Results August 2, 2018 Delivering Value. Kinross Gold Corporation
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 and responses to questions, including but not limited to any information as to the future performance of Kinross
Slide 3: Strong Operating Results
Second Quarter 2018 August 2, 2018 Strong Operating Results Continued track record of meeting our operational targets • Second quarter operating results were in-line with expectations • On track to meet 2018 guidance targets 2018 Guidance(1) First Half Results Gold equivalent production 2.5 million
Slide 4: Operational Highlights
Second Quarter 2018 August 2, 2018 Operational Highlights Paracatu, Brazil Chirano, Ghana Bald Mountain, US • Highest quarterly • Good performance in H1 • Record low cost of sales throughput of past 4 years 2018 • Continued strong • Significant improvement in • Improved cost of sales production rain
Slide 5: Construction of Tasiast Phase One Complete
Second Quarter 2018 August 2, 2018 Construction of Tasiast Phase One Complete In final stages of commissioning; first ore now through the SAG mill Click here to view completed Tasiast Phase One expansion: https://youtu.be/45eg8TEL-cg 5
Slide 6: Tasiast Update
Second Quarter 2018 August 2, 2018 Tasiast Update Kinross has continued to engage with the Government of Mauritania since early May following receipt of a letter stating a desire to enter into discussions with respect to Kinross’ activities in the country • Has been business as usual at the Tasiast
Slide 7: Advancing Our Projects
Second Quarter 2018 August 2, 2018 Advancing Our Projects Portfolio of development projects and future opportunities progressing well Tasiast Phase One Round Mountain Phase W Bald Mountain Vantage Complex Construction complete Detailed engineering 95% complete Engineering 95% complete SAG mill in fi
Slide 8: Strong Balance Sheet & Financial Flexibility
Strong Balance Sheet & Financial Flexibility With strong cash flow and no debt maturities until 2021, we have the financial strength and flexibility to fund our pipeline of development projects 8
Slide 9: Financial Results
Second Quarter 2018 August 2, 2018 Financial Results All figures in US$ millions, except ounces, per share and per ounce amounts Q2 2018 Q2 2017 H1 2018 H1 2017 Attributable gold equivalent ounces (oz.)(2) Produced 602,049 694,874 1,255,986 1,366,830 Sold 587,556 683,584 1,255,773 1,329,530 Average
Slide 10: 2018E Capital Expenditures Outlook
Second Quarter 2018 August 2, 2018 2018E Capital Expenditures Outlook(1) Leveraging strong financial position to invest in development projects and our future Capital Expenditures • Maintaining 2018 capital expenditures Sustaining Non-sustaining guidance of $1,075 million (+/- 5%) $1,075 (+/-5%) I
Slide 11: Tasiast Phase One Project Financing Update
Second Quarter 2018 August 2, 2018 Tasiast Phase One Project Financing Update Project financing has progressed, with strong interest from multilateral organizations and commercial banks • Project financing for Tasiast Phase One has advanced • Targeting approximately $300 million in financing that is
Slide 12: Solid Financial Position $2.5B
Second Quarter 2018 August 2, 2018 Solid Financial Position Strong position to finance organic development projects with existing cash and liquidity Maintaining Financial Flexibility Liquidity Position ($ billion) • Cash and cash equivalents of ~$920 million • Available credit: $1.6 billion $0.9 • T
Slide 13: Operating Results
Operating Results We remain focused on operational excellence, building a culture of continuous improvement, innovation and disciplined cost management 13
Slide 14: Americas
Second Quarter 2018 August 2, 2018 Americas 60% of estimated 2018E gold equivalent production from mines located in the Americas Q2 Results Highlights: • Fort Knox production and costs impacted by minor pit wall failure which occurred in Q1 2018 • Continued strong results at Bald Mountain as product
Slide 15: West Africa
Second Quarter 2018 August 2, 2018 West Africa H1 2018 production and costs in-line with our expectations Q2 Results Highlights: • Chirano continues to perform well Strong mining and processing rates Benefits of a more stable supply of energy from national grid • Tasiast production lower as a re
Slide 16: Russia
Second Quarter 2018 August 2, 2018 Russia Continued strong performance at Kupol-Dvoinoye, generating strong margins and cash flow Q2 Results Highlights: • Production in-line with expectations • Development of Moroshka continues to advance on plan Stoping of high grade ore expected to begin in earl
Slide 17: Development Projects
Development Projects Our portfolio of development projects are progressing well, and we are advancing an additional pipeline of future opportunities 17
Slide 18: Tasiast Phase One
Second Quarter 2018 August 2, 2018 Tasiast Phase One Construction of Phase One is complete; commissioning is in the final stages • All major components commissioned using the SAG mill by-pass circuit • Final stages of commissioning the SAG mill Proceeding well Ran first batch of ore through the
Slide 19: Round Mountain Phase W
Second Quarter 2018 August 2, 2018 Round Mountain Phase W The Phase W project is progressing well and on budget • Detailed engineering is 95% complete • Pre-stripping is proceeding well • Earthworks to prepare for new infrastructure area and preparation of new heap leach area for construction are la
Slide 20: Bald Mountain Vantage Complex
Second Quarter 2018 August 2, 2018 Bald Mountain Vantage Complex Vantage Complex project in the South Area of Bald Mountain is proceeding well; on schedule and on budget • Project is advancing on schedule and on budget • Engineering is now 95% complete and construction is well underway • All major e
Slide 21: La Coipa Restart Project
Second Quarter 2018 August 2, 2018 La Coipa Restart Project We are evaluating the potential for a return to production in Chile La Coipa Restart Project • Initiated a feasibility study on the Phase 7 deposit Expected to be complete in H2 2019 Lobo Marte Project • Located 80km from La Coipa • Measu
Slide 22: Bald Mountain Exploration Highlights
Second Quarter 2018 August 2, 2018 Bald Mountain Exploration Highlights Kinross envisions Bald Mountain as a long-life asset with significant upside potential and mineral resource growth North Area • Drilling has mainly been focused on the North Area of the property • Analyzing results from drilling
Slide 23: Kupol Exploration Highlights
Second Quarter 2018 August 2, 2018 Kupol Exploration Highlights Initial results for potential mineral resource additions to extend mine life have been promising • We continue to explore the main Kupol vein and mineralization to the north and south along the main trend North Extension – drilling ha
Slide 24: Kinross Value Proposition
Kinross Value Proposition Operational Excellence Financial Strength & Flexibility Diverse portfolio of operating mines consistently Maintaining strong balance sheet continues to meeting or outperforming operational targets be a priority objective Repaid over $1.0 billion of debt 6 Met or exceeded ov
Slide 25: Endnotes
Second Quarter 2018 August 2, 2018 Endnotes 1) For more information regarding Kinross’ production, cost, overhead expense and capital expenditures outlook for 2018, please refer to the news releases dated February 14, 2018 and August 1, 2018, both of which are available on our website at www.kinross
Slide 26: KINROSS
KINROSS 25 YEARS