Kinross Gold Corporation · TSX:K
Kinross Gold — World Gold Forum (April 2020)
68 slides from Kinross Gold's conference presentation, Apr 20, 2020
Slide 1: Delivering Value
April 2020 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: 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 Available liquidity of ~$1.9 billion, 8 Consecutive M
Slide 4: COVID-19 Response
COVID-19 Response 4
Slide 5: Status of Operations
COVID-19 Response April 2020 Status of Operations The table below outlines the current(i) status of COVID-19 positive cases at Kinross’ mines, operations, gold shipments/sales and supply chain Round Bald Kupol/ Fort Knox Paracatu Tasiast Chirano Mountain Mountain Dvoinoye Current 1 - - - - - - Cases
Slide 6: Global Response
COVID-19 Response April 2020 Global Response Kinross has implemented new protocols across our operations to prevent and mitigate risk associated with COVID-19 • Cross-functional Task Force established in January instituted preparedness protocols o Focused on site preparedness and case management • P
Slide 7: Protocols at Site
COVID-19 Response April 2020 Protocols at Site At an operational level, a global platform has been established and weekly calls are taking place for best practices to be shared across all regions • Complying with all COVID-related protocols Social Distancing at Fort Knox and guidelines in each juris
Slide 8: Supply Chain
COVID-19 Response April 2020 Supply Chain Kinross’ strong, working relationship with suppliers has provided the opportunity for operations to continue Risk Mitigation Plan Underway Working with critical suppliers to minimize potential supply chain disruptions Implementing contingency and respons
Slide 9: Community Impact
COVID-19 Response April 2020 Community Impact Community health and safety is a key priority. Kinross has been working with local communities to help them deal with the impacts of COVID-19 • Kinross has spent ~$1.3 million and has committed another $4 million to COVID-19 response efforts • In Maurita
Slide 10: Corporate Responsibility
Corporate Responsibility We operate according to the highest standards of corporate governance, ethics and honesty, and respect human rights and the environment wherever we work. 10 10
Slide 11: Our Approach
Corporate Responsibility April 2020 Our Approach At the heart of our success is our people and our four Core Values Our Values and Guiding Principles unite our global workforce Our approach to Corporate Responsibility can be distilled into four main areas: • Do no harm – We work to protect our workf
Slide 12: Health & Safety Highlights
Corporate Responsibility April 2020 Health & Safety Highlights Our strong track record of operational excellence goes hand-in-hand with best-in-class performance in health and safety • Total Reportable Injury Frequency Rate (TRIFR) of 0.27 is: Five-Year Safety Performance TRIFR1 Among the lowest o
Slide 13: Managing our Environmental Footprint
Corporate Responsibility April 2020 Managing our Environmental Footprint We are a responsible steward of land and water during all stages of the mine’s life cycle Performance Highlights 2018-2019 Highlights • Received the top ranking from World Wildlife • Among the lowest GHG Fund Russia’s Environme
Slide 14: Responsible & Safe Tailings Management
Corporate Responsibility April 2020 Responsible & Safe Tailings Management All of our tailings facilities are designed and constructed to the highest engineering standards and meet or exceed regulatory and international requirements and standards of best practice • Tailings management programs incor
Slide 15: Measuring Social Outcomes of Our Operations
Corporate Responsibility April 2020 Measuring Social Outcomes of Our Operations Kinross is one of the few mining companies that measures the social outcomes of our operations Studies at Tasiast show significant reductions in poverty levels Data show that Paracatu has advanced more and improved quali
Slide 16: Governance Highlights
Corporate Responsibility April 2020 Governance Highlights Kinross is committed to the highest standards of corporate governance and accountability • 8 of 9 Board members are • All directors are independent independent except for the Chief Executive • All of our board committees are Officer composed
Slide 17: Operational Excellence
Operational Excellence We remain focused on operational excellence, building a culture of continuous improvement, innovation and disciplined cost management 17
Slide 18: Diversified Portfolio of Assets
Operational Excellence April 2020 Diversified Portfolio of Assets ~56% of 2019 gold equivalent production from mines located in the Americas Dvoinoye, Russia Kupol, Fort Knox, USA Russia Chulbatkan, Russia Bald Mountain, USA Round Mountain, USA Tasiast, Mauritania 2019 Gold Equivalent Production(1)
Slide 19: Eight Consecutive Years of Meeting Guidance
Operational Excellence April 2020 Eight Consecutive Years of Meeting Guidance Kinross has met or exceeded guidance targets for production, costs and capital expenditures for the past eight years 2012 2013 2014 2015 2016 2017 2018 2019 Met or exceeded annual production guidance Met or
Slide 20: 2019 Operational Highlights
Operational Excellence April 2020 2019 Operational Highlights Our three largest operations produced over 60% of total production(1) with an average cost of sales of $626/oz.(3) Operation 2019 Performance(3) Highlights Paracatu, Brazil Production • Record annual production (Au eq. oz.) 619,563 Cost o
Slide 21: Achieving Performance Improvements at Paracatu
Operational Excellence April 2020 Achieving Performance Improvements at Paracatu Realizing the benefits of asset optimization and continuous improvement efforts through strong performance and cost reduction Year-over-year performance • Record annual production in 2019 with a 19% reduction in cost of
Slide 22: Strong Performance at Kupol-Dvoinoye
Operational Excellence April 2020 Strong Performance at Kupol-Dvoinoye Kupol-Dvoinoye continues to be a consistent, strong producer and again extended mine life, now to 2024 Quarter-over-quarter performance • Production increased by 8% year-over- year, a result of higher grades 160k $700 • Additiona
Slide 23: Record Performance at Tasiast
Operational Excellence April 2020 Record Performance at Tasiast Strong 2019 performance highlights the benefits of the Phase One expansion, 391k resulting in record production, throughput and costs Year-over-year performance • Throughput averaged over 14k t/d in 2019 400k $1,200 391k 350k • Throughp
Slide 24: Financial Strength & Flexibility
Financial Strength & Flexibility Maintaining balance sheet strength & financial flexibility remain priority objectives 24
Slide 25: 2019 Financial Highlights
Financial Strength & Flexibility April 2020 2019 Financial Highlights Captured the benefits of strong production, improved cost performance and higher gold prices Year-over-year improvements Fourth quarter performance 37% • Generated robust free cash Adjusted operating cash flow (3) increase flow •
Slide 26: Strong Liquidity Position
Financial Strength & Flexibility April 2020 Strong Liquidity Position Maintaining balance sheet strength & financial flexibility remain priority objectives Financial Flexibility Liquidity Position ($ billion) • Available liquidity of ~$1.9 billion, including over $1 billion of cash • Reflects a draw
Slide 27: Manageable Debt Profile
Financial Strength & Flexibility April 2020 Manageable Debt Profile Kinross’ debt is investment grade with the next repayment due in September 2021 Debt Schedule Debt Ratings Agency Rating $750 S&P BBB- (Stable) Moody’s Baa3 (Stable) Fitch BBB- (Stable) $ millions Interest Rates $500 $500 $500 Senio
Slide 28: Tasiast Project Financing
Financial Strength & Flexibility April 2020 Tasiast Project Financing Reflects comprehensive process of due diligence with lenders • Signed $300 million IFC-led project financing agreement in December 2019 o Non-recourse to Kinross o Four new, important partners in project underscore confidence in T
Slide 29: Development Projects & Exploration Highlights
Development Projects & Exploration Highlights We have a portfolio of development projects that we are progressing, and we are also focused on advancing a pipeline of future opportunities and high potential exploration targets 29
Slide 30: Tasiast 24k Project Feasibility Study Results
Development Projects April 2020 Tasiast 24k Project Feasibility Study Results Proceeding with value-enhancing Tasiast 24k project, which offers attractive estimated returns, increased production and lower costs Operating Estimates Throughput capacity 24,000 t/d Average annual production (2022 – 2028
Slide 31: Low-Capital Continuous Improvement Approach
Development Projects April 2020 Low-Capital Continuous Improvement Approach Increase to throughput with debottlenecking initiatives, plant upgrades and optimization of the mine plan and processing circuit Building off success of Phase One and Project Overview continued outperformance of the SAG mill
Slide 32: Advancing the Tasiast 24k Project
Development Projects April 2020 Advancing the Tasiast 24k Project Well-positioned to execute the 24k project Low relative execution risk • Project plan leverages Kinross’ experience successfully building and operating Phase One • Less infrastructure requirements • Permits in place for the 24k projec
Slide 33: Positive Momentum in Mauritania
Development Projects April 2020 Positive Momentum in Mauritania Successfully operated in Mauritania for over 10 years Cumulative production of over 2 million gold equivalent ounces Established $300M political risk insurance policy with MIGA, a member of the World Bank Constructed Phase One ~$800
Slide 34: Strong Platform in Russia
Exploration Highlights April 2020 Strong Platform in Russia Track record of adding reserves through exploration to offset depletion at Kupol supports a potential bridge to production at Chulbatkan 12.0 2024 Gold Equivalent Ounces 2023 10.0 2022 End of Mine Life 8.0 2021 (Millions) 2020 6.0 2019 4.0
Slide 35: Chulbatkan
Development Projects April 2020 Chulbatkan High-quality project with strong base case and significant upside potential • Near-surface, heap-leachable deposit; initial resource estimate of approximately 4 million ounces(6) • Confirmatory drilling results (not included in initial resource estimate) in
Slide 36: Chulbatkan Project Location
Development Projects April 2020 Chulbatkan Project Location Khabarovsk is industrialized and has a well-established mining and exploration sector Mining-friendly jurisdiction Kupol Magadan • Several gold producers active in the region Khabarovsk Ten operating mines Fourth largest gold producing
Slide 37: Chulbatkan: Strong Base Case with Upside Potential
Development Projects April 2020 Chulbatkan: Strong Base Case with Upside Potential Expected to be a substantial open pit gold mine with a low all-in sustaining cost(3) • Preliminary estimates; scope of project may change following planned extensive drill program and technical studies and trade-offs
Slide 38: Significant Upside Opportunities at Chulbatkan
Development Projects April 2020 Significant Upside Opportunities at Chulbatkan Kinross plans to undertake a robust exploration program with a focus of defining and further extending the resource • Confirmatory drill program(5) encountered a potential • Drill planning and execution to grow high-grade
Slide 39: Chulbatkan Regional Exploration Upside
Development Projects April 2020 Chulbatkan Regional Exploration Upside Numerous untested potential targets within the ~120km2 exploration license • Multiple structural environments analogous to Chulbatkan deposit • Multiple downstream placer gold occurrences indicate hard rock sources within license
Slide 40: Fort Knox Gilmore
Development Projects April 2020 Fort Knox Gilmore Gilmore project expected to extend mine life to 2030 and strengthen long-term U.S. production profile 40
Slide 41: Gilmore Feasibility Study Results
Development Projects April 2020 Gilmore Feasibility Study Results Project expected to generate a 17% IRR at an assumed gold price of $1,200 per ounce Current mine plan + Gilmore estimates Average annual production (2018-2027) 245,000 gold ounces Production cost of sales(3) (2018-2027) $735 per gold
Slide 42: Fort Knox Gilmore
Development Projects April 2020 Fort Knox Gilmore Encountered initial ore in Q4 2019, ahead of original plan • Project advancing on budget and on schedule • Stripping commenced in Q3 2019 and is expected to continue throughout 2020 • The Barnes Creek heap leach pad and related pumping and piping inf
Slide 43: Proceeding with La Coipa Restart Project
Development Projects April 2020 Proceeding with La Coipa Restart Project Restart project expected to generate strong returns in a familiar operating jurisdiction • 28% IRR(7) at $1,200/oz. gold and $17/oz. silver prices • 42% IRR(7) at $1,500/oz. gold and $17.50 silver prices • Leverages existing in
Slide 44: Lobo-Marte
Development Projects April 2020 Lobo-Marte Evaluating potential synergies with La Coipa and a return to long-term production in Chile N • Scoping study completed in Q1 2019 with encouraging results, including: La Coipa Restart Total estimated production: 4.1M Au oz. at 1.2 g/t project Mine life:
Slide 45: Nevada Projects Commenced Production
Development Projects April 2020 Nevada Projects Commenced Production Construction and commissioning of the Bald Mountain Vantage Complex and Round Mountain Phase W complete Bald Mountain Round Mountain • Vantage Complex ramped-up production in • Phase W ramped-up production in Q4 Q4 2019, resulting
Slide 46: Continued Mineral Reserve Additions
Exploration Highlights April 2020 Continued Mineral Reserve Additions Extended mine life at two operations, a result of another successful exploration program in 2019 Paracatu Kupol-Dvoinoye Chirano Offset depletion with the Mine life extended to 2024, Mine life extended to 2022, addition of ~828,00
Slide 47: Compelling Relative Value
Compelling Relative Value Attractive value opportunity relative to peers, considering Kinross’ annual production, cost structure, track record and growth opportunities 47
Slide 48: 2020E Production & All-In Sustaining Cost
Compelling Relative Value April 2020 2020E Production & All-In Sustaining Cost 2020E Production 2020E All-In Sustaining Cost (million ounces) ($ per ounce) 7.0 $1,050 6.0 5.0 $900 4.0 3.0 2.0 $750 1.0 0.0 $600 Newmont Barrick Newmont Barrick Yamana Yamana AngloGold Kirkland Lake Gold Fields AngloGol
Slide 49: 2020E Metrics
Compelling Relative Value April 2020 2020E Metrics Attractive value opportunity relative to peers, considering Kinross’ annual production, cost structure, track record and growth opportunities P / 2020E Operating CF EV / 2020E EBITDA 13.2 11.4 12.4 11.3 9.8 10.3 9.2 9.0 7.6 6.5 6.8 5.9 5.3 5.3 5.5 4
Slide 50: Continuing to Enhance Value
Compelling Relative Value April 2020 Continuing to Enhance Value Strong track record over past 8 years: Future Expectation(2): Production ~2.5 million Au eq. oz. per year ~2.5 million Au eq. oz. per year Costs and Reduced AISC by Further reduce AISC(3) and capital Capital ~$100/Au eq. oz. (1,3) expe
Slide 51: Appendix
Appendix 51
Slide 52: Essential Service Status
COVID-19 Response April 2020 Essential Service Status(i) Operation Location Status Government Decree Mining considered essential as part of State of Nevada regulations issued on Round Mountain Nevada, U.S.A. Operating March 20, 2020. Mining considered essential as part of State of Nevada regulations
Slide 53: Fort Knox, USA (100%)
Americas April 2020 Fort Knox, USA (100%) The Gilmore project is expected to extend mine life to 2030 • Successfully operating one of the world’s Operating Results(3) few cold weather heap leaches 2018 2019 • Estimated mine life: mill – 2020; mining – 2027; leaching – 2030 Production 255,569 200,263
Slide 54: Summary of Feasibility Study Results
Fort Knox Gilmore April 2020 Summary of Feasibility Study Results Operating Estimates (current mine plan + Gilmore) Incremental Gilmore Estimates(i) Timeline Operational Metric Estimate Estimate Average annual tonnes mined 60 million Strip ratio 1.2 Strip ratio 1.2 Life of mine ore processed 183 mil
Slide 55: Round Mountain, USA (100%)
Americas April 2020 Round Mountain, USA (100%) Strong cash flow generator with Phase W project extending mine life to 2027 • Phase W is expected to generate solid Operating Results(3) returns and extend mining 2018 2019 • Estimated mine life: 2024 (mining); 2027 (stockpile milling / residual leachin
Slide 56: Summary of Feasibility Study Results
Round Mountain Phase W April 2020 Summary of Feasibility Study Results Operating Estimates (current mine plan + Phase W) Standalone Phase W Estimates Timeline Operational Metric Estimate Estimate Strip ratio 2.9 Life of mine production 1.5 million ounces Average grade processed 0.7 grams per tonne L
Slide 57: Bald Mountain, USA (100%)
Americas April 2020 Bald Mountain, USA (100%) Forecasting strong near-term cash flow with significant upside potential • Large estimated mineral resource base with Operating Results(3) multiple sources of potential mineral reserve 2018 2019 additions • Estimated mine life: 2023 Production 284,646 18
Slide 58: Paracatu, Brazil (100%)
Americas April 2020 Paracatu, Brazil (100%) Large gold mine with a long mine life that extends to 2031 • Paracatu is among the world’s largest gold Operating Results(3) operations with annual throughput of ~60Mt 2018 2019 • Cornerstone asset in Kinross’ portfolio Production • Estimated mine life: 20
Slide 59: Kupol-Dvoinoye (100%)
Russia April 2020 Kupol-Dvoinoye (100%) Our Russian mines are a model for successfully operating in a remote location • High-grade, low-cost underground mines Operating Results(3) supported by one mill 2018 2019 • Estimated mine life: 2024, following another Production 1-year extension in 2019 489,9
Slide 60: Deep Experience In-Country
Russia April 2020 Deep Experience In-Country Kinross has a long and successful 25-year track record investing in Russia Significant operating experience 2018 Statistics: • Operated four mines, including the high-grade, low Kinross Investments in Russia cost Kupol and Dvoinoye mines 98.5% of employee
Slide 61: Foreign Investment in Russia
Russia April 2020 Foreign Investment in Russia The world’s leading companies are Foreign Investment Advisory Council invested in Russia • Chaired by the Russian Prime Minister, includes CEOs from over 50 international companies 61
Slide 62: Tasiast, Mauritania (100%)
West Africa April 2020 Tasiast, Mauritania (100%) Low-cost mine with a large gold resource located in a prospective district • First full year operating the Phase One Operating Results(3) expansion in 2019 2018 2019 • Advancing the 24k project to further Production increase throughput (Au eq. oz.) 2
Slide 63: Feasibility Study Results: Operating Estimates
Tasiast 24k Project April 2020 Feasibility Study Results: Operating Estimates Results Highlights Life of Mine Estimates (2020-2033) Timeline Operational Metric Estimate Operational Metric Estimate Total material mined 375,900,000 Total tonnes mined 628,800,000 Strip ratio 5.9 Total ore mined (tonnes
Slide 64: Feasibility Study Results: Capital & Economics
Tasiast 24k Project April 2020 Feasibility Study Results: Capital & Economics Estimated Initial Capital Cost Estimated Sustaining Capital • Expected to be approximately $30M per year Estimate ($ millions) Life of Mine estimate ($ millions) Support infrastructure 47 Mobile maintenance 150 Process pla
Slide 65: Chirano, Ghana (90%)
West Africa April 2020 Chirano, Ghana (90%) Exploration success adding ounces to mineral reserves • Chirano is an underground and open pit Operating Results(1,3) operation located in southwestern Ghana 2018 2019 • Estimated mine life: 2022 Production 204,029 181,167 (Au eq. oz.) Production cost of s
Slide 66: Chirano Exploration Highlights
West Africa April 2020 Chirano Exploration Highlights Production at Chirano is expected to extend to 2022, another 1-year extension • 2019 exploration focus continued to be on adding incremental ounces to mine life Focused on confirming the depth extensions at Akwaaba, Paboase and Tano, and testin
Slide 67: Endnotes
Appendix April 2020 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’ 90% share of Chirano production and sales. Also unless otherwise noted, dollar per ounce ($/oz.) figures in
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