Kinross Gold Corporation · TSX:K
Kinross Gold — National Bank Precious Metals Conference 2022
34 slides from Kinross Gold's conference presentation, Nov 21, 2022
Slide 1: Delivering Value.
Delivering Value. November 2022
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 limitedNovember 2022 to any information as to the future performan
Slide 3: Table of Contents
November 2022 Table of Contents Company Overview 4 Great Bear 17 Operational Highlights 25 33
Slide 4: Who is Kinross?
Kinross Gold Corporation November 2022 Who is Kinross? AMERICAS STRONG FOCUSED Portfolio PRODUCTION OUTLOOK 6 mines LARGE GOLD GEOGRAPHICALLY STRONG DYNAMIC COMMITTED TO PRODUCER, DIVERSIFIED OPERATING TRACK CAPITAL RESPONSIBLE HIGHLY LIQUID PRODUCER RECORD ALLOCATION MINING • ~US$5 billion • Americ
Slide 5: High Quality Portfolio of Assets
November 2022 High Quality Portfolio of Assets Two top tier(1) mines account for ~50% of production 2022E Gold Equivalent Production(2) Fort Knox, U.S.A. Manh Choh, U.S.A. 29% Great Bear, Canada Bald Mountain, ~2.0M U.S.A. Head Office, Canada ounces Round Mountain, U.S.A. 71% Approximate Annual Prod
Slide 6: Investment Case
Kinross Investment Case November 2022 Stable 3.17production (Mozs, attributable) Value in the Americas(2) Americas-focused business, two Top Tier(1) assets Americas focus not reflected in valuation 1.2x Price / Net Asset Value ~ 2.1 ~ 2.1 Expected Production 1.0x 0.9x % of NAV in Americas ~ 2.0 ~ 2.
Slide 7: Market undervaluing Kinross’ assets
Kinross Gold Corporation November 2022 Market undervaluing Kinross’ assets Substantial production not reflected in market valuation 2022 E Gold Production (1) Market Capitalization (1) 2.4 2.1 $11.5 ~2.0 2.0 Million AuEq oz $9.7 $9.6 1.5 US$B 1.4 Average: 1.5 Moz $7.7 Average: $7.7 B 0.9 $5.4 $4.8 0
Slide 8: Top two assets justify market cap
Kinross Gold Corporation November 2022 Top two assets justify market cap Value of two top-tier assets approximately equal to market cap Market Capitalization vs. Asset Value ~$7 ~$5 ~$5 US$B (2) (1) Market Capitalization NPV of Kinross NAV Tasiast & Paracatu (1) Calculated as average of Net Present
Slide 9: Attractive free cash flow yield
Kinross Gold Corporation November 2022 Attractive free cash flow yield backed by a substantial mineral inventory 2023E Free Cash Flow Yield (1) Enterprise Value / Total Resources (%) With additional upside expected from Great Bear(2) 17% $421 13% 13% 9% 9% $208 7% 4% $129 $129 $126 $117 $81 (1) Calc
Slide 10: Enhanced Share Buyback Program
Kinross Gold Corporation November 2022 Enhanced Share Buyback Program Attractive return of capital while protecting investment grade balance sheet • Compelling capital deployment opportunity to enhance per-share metrics and shareholder returns 2022 Planned Buyback: • Quarterly dividend maintained $3
Slide 11: Prioritizing Resource Conversion
Kinross Gold Corporation November 2022 (1) Prioritizing Resource Conversion Significant potential for mine life extension at existing assets 25 20 15 10 5 0 La Coipa Bald Mountain Paracatu Round Fort Knox Tasiast Lobo-Marte Mountain Expected Reserve Life Potential Resource Life (1) Note: Incorporate
Slide 12: Strong Liquidity & Financial Flexibility
Third Quarter 2022 November 2022 Strong Liquidity & Financial Flexibility Liquidity Position (1) Financial Flexibility • Total liquidity(1) of ~$2.0 billion, including $488.4 million of cash and cash equivalents • $300 million in share buybacks planned for 2022 As at September 30, 2022 • $150 millio
Slide 13: Manageable Debt Profile
Kinross Gold Corporation November 2022 Manageable Debt Profile Senior notes are rated investment grade by all three rating agencies Debt Schedule Debt Ratings Agency Rating $1,000 S&P BBB- (Stable) Moody’s Baa3 (Stable) Fitch BBB (Stable) $ millions $500 Debt Breakdown (Sep 30th 2022)(1) $500 Intere
Slide 14: Disciplined Capital Allocation Strategy
Kinross Gold Corporation November 2022 Disciplined Capital Allocation Strategy Reinvesting in our Business 2022 Guidance • Sustaining capex – maintaining our existing operations ~$400M safely and to world-class environmental standards • Expansion projects – pursuing attractive returns by leveraging
Slide 15: 2022 Inflationary Pressures
Kinross Gold Corporation November 2022 2022 Inflationary Pressures Continued inflationary pressure affecting our cost structure Inputs Direct Cost Drivers Estimated Impacts Ground support Ground Grindingsupport media Grinding media Maintenance/supplies Steel OPEX Power costs ~12% Fuel Power Explosiv
Slide 16: Advancing the Project Pipeline
Kinross Gold Corporation November 2022 Advancing the Project Pipeline Expected project milestones on track(1) H1 2022 >> H2 2022 >> 2023/2024 Late February Great Bear ✓ H2 Round Mountain ✓ 2023 mid-year Tasiast 24k Acquisition closed Mine plan optimization Throughput to reach 24ktpd Q1 La Coipa Rest
Slide 17: Great Bear
November 2022 Great Bear 1 17 7
Slide 18: Great Bear is an orogenic gold system
November 2022 Great Bear is an orogenic gold system Orogenic systems have the potential to host 20 million+ ounces • 1 Orogenic gold deposits are derived from metamorphic fluids at depth 2 • Gold bearing fluids migrate upward along fault systems 3 3 • Fluids then get rerouted along the secondary fau
Slide 19: Great Bear is Comparable to Hemlo, which Produced +20Mozs
Third Quarter 2022 November 2022 Great Bear is Comparable to Hemlo, which Produced +20Mozs Hemlo Great Bear 0 RL 500 RL 1,000 RL LP Zone Confirmation of mineralization now down to ~800 m GRADE THICKNESS < 5 GxM 50 to 100 GxM 5 to 15 GxM 100 to 200 GxM 15 to 30 GxM > 200 GxM 30 to 50 GxM We have exte
Slide 20: Exciting Results at Depth at Great Bear
Third Quarter 2022 November 2022 Exciting Results at Depth at Great Bear DISCOVERY BRUMA YUMA YAURO AURO VIGGO 3.9 m @ 6.10 g/t ~500 m 11.3 m @ 18.6 g/t 1.8 m @ 4.05 g/t Limit of well- 16.1 m @ 3.58 g/t 28.5 m @ 7.11 g/t 2.3 m @ 13.04 g/t 4.6 m @ 5.26 g/t 500 RL drilled zone 6.57 m @ 15.8 g/t 3.0 m
Slide 21: First 500 Meters Support Expected Initial Resource; Significant Upside Potential Remains
Third Quarter 2022 November 2022 First 500 Meters Support Expected Initial Resource; Significant Upside Potential Remains Open along strike Long-section of Great Bear’s LP Fault zone Open along strike 1 1 DISCOVERY BRUMA YUMA YAURO AURO VIGGO 3.9 m @ 6.10 g/t ~500 m 11.3 m @ 18.6 g/t 1.8 m @ 4.05 g/
Slide 22: A Path to Proving Out the Underground
Third Quarter 2022 November 2022 A Path to Proving Out the Underground Conceptual Great Bear project timeline 2022 2023 2024 2025 2026 2027 1 Resource Development 2 Exploration, Deep Drilling Potential Delineation of New Discoveries 3 Develop Exploration Decline 4 Drilling From Underground Strike Ex
Slide 23: Further Upside Potential on Highly-Prospective Land Package
Third Quarter 2022 November 2022 Further Upside Potential on Highly-Prospective Land Package Transmission line N Highway 105 Felsic – Intermediate Felsic Intrusive Ultramafic Mafic-Ultramafic (Tholeitic) Mafic (Calc-Alkaline?) Sediments Indicated/Inferred Target Areas Property Exploration Areas 1 Gr
Slide 24: Great Bear Timeline Dependent on Permitting
Third Quarter 2022 November 2022 Great Bear Timeline Dependent on Permitting Conceptual timeline ‘22 ‘23 ‘24 ‘25 ‘26 ‘27 ‘28 ‘29 Project Studies Environmental Baseline Permitting estimate in line with peers’ for federal IAAC1 process Prepare Impact Statement Agency (I.S.) I.S. Review Submit Initial
Slide 25: Operational Highlights
Operational Highlights 25
Slide 26: Q3 Progress
November 2022 Q3 Progress Production Increases Across Portfolio Gold grade and production 1 Paracatu increased as planned United States 2 Seasonal improvement as expected Heaps Steadily increasing throughput and 3 La Coipa production with FY target of 100k ozs. 4 Tasiast Higher production expected i
Slide 27: Third Quarter Results
Third Quarter 2022 November 2022 (1) Third Quarter Results Q3 2022 YTD 2022 2022 Updated Results(1) Results (1) Guidance (1,4) Cost of Sales $941 $979 ~$900 (per Au eq. oz. sold) All-in $1,282 $1,287 ~$1,240 Sustaining Costs (per Au eq. oz. sold)(2) Capital Expenditures $197 $447 ~$750 (3) (millions
Slide 28: Tasiast Ramp-Up Progressing
Third Quarter 2022 November 2022 Tasiast Ramp-Up Progressing Q3 focus on improvements, setting up for strong Q4 Q3 Improvements • Commissioned additional oxygen plant • Commissioned three new leach tanks • Added pre-oxidation stage to circuit • Progressed commissioning of gravity circuit • Changes d
Slide 29: La Coipa Ramp-Up Progressing
Third Quarter 2022 November 2022 La Coipa Ramp-Up Progressing Q3 commissioning saw continuous progress Q3 Commissioning showing improvements La Coipa Mill Throughput Monthly Average • Resolved commissioning issues and improving mill 15 reliability Mill Throughput (ktpd) • Throughput improvements eac
Slide 30: Round Mountain Optimization Complete
Third Quarter 2022 November 2022 Round Mountain Optimization Complete Current focus Planned next steps Future options Round Mountain Underground Round Mountain Round Mountain Open pit Phase X Open pit Vision: bulk long-hole open stoping based on intercepts Phase W1 + W2 suggesting 3-4 g/t avg stopes
Slide 31: Kinross Alaska – Manh Choh (70%)
Americas November 2022 Kinross Alaska – Manh Choh (70%) Feasibility results released in Q2 • Adds high grade mill feed to Q2’22 Manh Choh Reserve & Resource Estimates(1) Fort Knox’s mill (~10x the Tonnes Grade Ounces Grade Ounces (thousands) (Au g/t) (Au koz) (Ag g/t) (Ag koz) current average milled
Slide 32: Global Mining Leader in ESG
Kinross Gold Corporation November 2022 (1) Global Mining Leader in ESG Environment Social Governance WATER MANAGEMENT • ~80% average water volume 99% >1 million INDEPENDENT BOARD recycling rate over the past 5 years of workforce hired from beneficiaries of • 8 of 9 Board members are GHG INTENSITY wi
Slide 33: Endnotes
Appendix November 2022 Endnotes 1) Kinross’ outlook represents forward-looking information and users are cautioned that actual results may vary. Please refer to the Cautionary Statement on Forward-Looking Information on slide 2 of this presentation. 2) All-in sustaining cost per equivalent ounce sol
Slide 34: Slide 34
Kinross Gold — National Bank Precious Metals Conference 2022 on 6ix