Kinross Gold Corporation · TSX:K
Kinross Gold — Investor Presentation (March 2011)
28 slides from Kinross Gold's investor presentation, Mar 9, 2011
Slide 1: Delivering Disciplined Growth
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 DELIVERING DISCIPLINED GROWTH MACQUARIE SALES DESK PRESENTATION March 9, 2011 1 CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION All statements, other than statements of historical fact, contained or incorporated by referenc
Slide 2: Why Gold? Why Kinross? Why Now?
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 WHY GOLD? WHY KINROSS? WHY NOW? 3 INDUSTRY PRODUCTION DECLINING • Forecasted production from mining declining 2,800 2,700 Gold Production (Tonnes) 2,600 2,500 2,400 2 300 2,300 2,200 2,100 2009 2010 2011 2012 2013 2014 2015 201
Slide 3: Increasing Demand for Gold
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 INCREASING DEMAND FOR GOLD $200 $1,450 Investment / Other Total Fabrication $175 Gold Price (US$/oz) $1,250 Current gold price $150 $1,050 old Demand (US$ billions) Gold Price (US$/oz.) $125 $850 $100 $650 $75 $450 Total Go $50
Slide 4: Why Kinross?
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 WHY GOLD? GO ? WHY KINROSS? WHY NOW? 7 WHY KINROSS? 1. Industry-leading growth from a senior gold producer 2. World-class projects with experienced teams and financial resources to build them 3. Attractive valuation 8 4
Slide 5: Continuing the Kinross Transformation
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 CONTINUING THE KINROSS TRANSFORMATION Kinross Yesterday Kinross Now(1) m oz) 4.5 – 4.9 Gold equivalent production (mm ozz) Gold equivalent production (mm 2.3 2.5 – 2.6 1.6 G 2005 2010 2011e 2015e Unless otherwise noted, gold eq
Slide 6: Year-End Financial Results
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 YEAR-END FINANCIAL RESULTS • Continuing to deliver strong financial results Revenue Adjusted Operating Cash Adjusted Net Earnings(2) +25% Flow ((2)) +57% +16% $1,091 $3,010 $937 $479 $2,412 US$ millions $305 2009 2010 2009 2010
Slide 7: Growing Cash Flow per Share
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 GROWING CASH FLOW PER SHARE • 5-yr CAGR : 21% $1 36 $1.36 $1.32 Cash Flow per Share (US$)(2) $1.01 $0.80 $0.56 $0.51 Adjusted C 2005 2006 2007 2008 2009 2010 (2) Refer to endnote #2. 13 INCREASING GOLD RESOURCES 110 Inferred Re
Slide 8: Track Record of Reserve Growth
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 TRACK RECORD OF RESERVE GROWTH ORGANIC KINROSS RESERVE ADDITIONS TODAY WEST AFRICA 9.7 62.4 Proven and Probable Gold Reserves(55) RESERVE ADDITION 2.4 10.0 62.4 51.0 PRODUCTION 48.6 DEPLETION 5.8 CERRO 42.8 CASALE 25% 42.8 (mm
Slide 9: Strong Balance Sheet
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 STRONG BALANCE SHEET • Cash on hand: ~$1.5 bn • Equity pipeline investment portfolio valued at ~$203.8 mm $1,467 US$ millions $630 $503 Cash and cash equivalents Long-term investments Long-term debt 17 PROJECT PIPELINE Project
Slide 10: Gold Production from New Projects
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 GOLD PRODUCTION FROM NEW PROJECTS +1.3(i) average annual gold production (mm oz) +0.41(ii) +0.35(ii) Estimated a Tasiast Expansion Fruta del Norte Lobo-Marte (i) Does not include current Tasiast production; estimated average an
Slide 11: Mauritania: Key Facts
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 MAURITANIA: KEY FACTS # Producing Mine # Exploration / Development Project • Among most sparsely-populated countries 1) Tasiast 2) (Kinross) - –Au Tasiast (Robinson) Au Guelb Moghrein (First Quantum) – Cu/Co/Au 3) Askaf (Sphere
Slide 12: Progression of Drilling at Tasiast
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 PROGRESSION OF DRILLING AT TASIAST January 2011 February 2010 April 2009 Tasiast Shear 2010 Resource Shell 23 EXPLORATION UPDATE AT TASIAST • 3 additional drills added in January 2011; 25 drills currently on site • Drilled 64,0
Slide 13: Tasiast Orebody & Resource Pit
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 TASIAST OREBODY & RESOURCE PIT 25 TASIAST GREENSCHIST ZONE LONG-SECTION GST 1km 26 13
Slide 14: Resource Growth at Tasiast
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 RESOURCE GROWTH AT TASIAST 8.6 Ounces (millions)(5,6) 5.1 1.9 2.1 1.4 9.2 9.3 0.8 7.6 5.4 3.7 Year-end 2008 November 2009 September 2010 November 2010 Year-end 2010 Proven and Probable Mineral Reserves Measured & Indicated Mine
Slide 15: Tasiast, Mauritania
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 TASIAST, MAURITANIA • Ordered key processing equipment: 3 crushers, 1 SAG mill and 2 ball mills / motors • Retained R t i d iinternational t ti l EPCM jjoint-venture i t t firm fi for f feasibility study o Basic engineering com
Slide 16: Fruta del Norte, Ecuador
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 FRUTA DEL NORTE, ECUADOR • Prepared pre-feasibility study and technical report • Underground operation with an estimated 16-year mine life • LOM avg. production estimate : 410k Au eq. oz. per year Expected avg. gold grade of
Slide 17: Lobo-Marte, Chile
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 LOBO-MARTE, CHILE 33 LOBO-MARTE, CHILE • Completed pre-feasibility study update • 10-year mine life • Expected 47,000 tpd heap leach with SART plant • Annual production estimate: 350k oz. per year Expected avg. grade: 1.17 g/
Slide 18: Lobo-Marte, Chile
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 LOBO-MARTE, CHILE • Received approval for additional 20,000 m of drilling in Q4/10 • Infill and geotechnical drill to continue in 2011 • Expect to submit EIA in mid-2011 • Feasibility study scheduled to be complete mid-2011 • E
Slide 19: Dvoinoye, Russia
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 DVOINOYE, RUSSIA • Scoping study completed January 2011 • 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 Kupol mill throughp
Slide 20: Macquarie: P/NAV
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 MACQUARIE: P / NAV 0.9 0.9 0.8 0.8 0.7 AGNICO GOLDCORP BARRICK YAMANA KINROSS Source: Macquarie research – March 8, 2011 39 MACQUARIE: P / 2011E CFPS 15.7 13.1 12 6 12.6 8.8 8.6 GOLDCORP KINROSS AGNICO YAMANA BARRICK Source: Ma
Slide 21: Key Objectives for 2011
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 KEY OBJECTIVES FOR 2011 Complete Tasiast scoping study Declare NI 43-101 resource at Dvoinoye Complete C l t F Fruta t del d lNNorte t pre-feasibility f ibilit study t d Complete Dvoinoye scoping study Commenc
Slide 22: Fort Knox, USA
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 APPENDIX 43 FORT KNOX, USA (100%) • Located in Alaska • Expansion and new heap leach to extend t d mine i lif life OPERATING RESULTS PRODUCTION COST OF SALES (Au eq. oz) ($/oz) 2010 349,729 $550 2009 263,260 $546 2010 GOLD RESE
Slide 23: Round Mountain and Kettle River-Buckhorn
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 ROUND MOUNTAIN, USA (50%) • Kinross-operated JV with Barrick • Located in Nevada, USA • Open-pit mine OPERATING RESULTS PRODUCTION COST OF SALES (Au eq. oz) ($/oz) 2010 184,554 $657 2009 213,916 $517 2010 GOLD RESERVES AND RESO
Slide 24: Kupol and Paracatu
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 KUPOL, RUSSIA (75%) • 3,000 tpd mill with open-pit and underground • Mill to process high-grade ore from nearby Dvoinoye deposit OPERATING RESULTS PRODUCTION COST OF SALES (Au eq. oz) ($/oz) 2010 554,008 $319 2009 694,130 $257
Slide 25: Crixas and La Coipa
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 CRIXAS, BRAZIL (50%) • JV with AngloGold Ashanti • Underground mine located in the B il Brazil OPERATING RESULTS PRODUCTION COST OF SALES (Au eq. oz) ($/oz) 2010 74,777 $486 2009 74,654 $412 2010 GOLD RESERVES AND RESOURCES((5)
Slide 26: Maricunga and Tasiast
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 MARICUNGA, CHILE (100%) • Located the highly prospective Maricunga District • Open O pit, it heap h leach l h operation ti OPERATING RESULTS PRODUCTION COST OF SALES (Au eq. oz) ($/oz) 2010 156,590 $746 2009 233,585 $521 2010 G
Slide 27: Chirano, Ghana and Endnotes
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 CHIRANO, GHANA (90%) • 90% owned by Kinross; Government of Ghana holds a 10% carried interest • 9 open-pits and 2 recently- discovered underground deposits OPERATING RESULTS PRODUCTION COST OF SALES (Au eq. oz) ($/oz) 2010 80,2
Slide 28: Kinross Gold Corporation
KINROSS GOLD CORPORATION Macquarie Sales Desk Presentation March 9, 2011 KINROSS GOLD CORPORATION 25 YORK STREET, 17TH FLOOR TORONTO, ON M5J 2V5 WWW.KINROSS.COM 55 28