Kinross Gold Corporation · TSX:K
Kinross Gold — Q4 2018 Earnings Presentation
34 slides from Kinross Gold's earnings presentation, Feb 14, 2019
Slide 1: Fourth Quarter & Year-End 2018 Results
Fourth Quarter & Year-End 2018 Results February 14, 2019 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: Seven Consecutive Years of Meeting Guidance
Fourth Quarter 2018 February 14, 2019 Seven Consecutive Years of Meeting Guidance Kinross has met or exceeded guidance targets for production, costs and capital expenditures for the past seven years 2012 2013 2014 2015 2016 2017 2018 Met or exceeded annual production guidance Met or ca
Slide 4: Performance Highlights
Fourth Quarter 2018 February 14, 2019 Performance Highlights 2018 was a strong year for Kinross across a number of areas RECORD DEVELOPMENT 2 mines annual production PROJECTS at two progressing mines well +1 year OPERATIONAL CONTINUED PIPELINE OF MINE LIFE EXCELLENCE FINANCIAL STRENGTH GROWTH PROJEC
Slide 5: Operating Results Highlights
Fourth Quarter 2018 February 14, 2019 Operating Results Highlights Record annual production at Paracatu and Bald Mountain, while Tasiast achieves a record quarter in Q4 • Strong results from the overall 2018 Achievements portfolio, achieving guidance for: • Record annual Production production Co
Slide 6: Tasiast Phase One Exceeds Expectations
Fourth Quarter 2018 February 14, 2019 Tasiast Phase One Exceeds Expectations Benefits of Phase One expansion result in record quarterly production in Q4 • Strong Q4 production: 91,548 gold equivalent ounces • Exceeding throughput & recovery expectations Average Q4 throughput: 14,100 t/d Average
Slide 7: Tasiast Expansion Update
Fourth Quarter 2018 February 14, 2019 Tasiast Expansion Update Phase Two continues to be a viable option as we complete our evaluation of alternative approaches to optimize further increases to Tasiast’s throughput • Incorporating strong Phase One results into analysis of throughput alternatives • O
Slide 8: Kinross Remains in Discussions with the Government of Mauritania
Fourth Quarter 2018 February 14, 2019 Kinross Remains in Discussions with the Government of Mauritania Topics under discussion Multi-lateral partnerships Upcoming election • Discussions have been • Involvement of the World • It is expected there will be a focused on matters generally Bank: President
Slide 9: 2019 Outlook
Fourth Quarter 2018 February 14, 2019 2019 Outlook We are forecasting another strong year in 2019, with production and cost of sales in-line with 2018 2018 Guidance 2018 Results 2019 Guidance(3) (+/- 5%) (+/- 5%) Gold equivalent production (ounces.)(1) 2.5 million 2.45 million 2.5 million Production
Slide 10: Project Milestones for 2019
Fourth Quarter 2018 February 14, 2019 Project Milestones for 2019 First Quarter Second Quarter Third Quarter Bald Mountain Vantage Complex Round Mountain Phase W La Coipa Restart Project Expected to initiate mining in the Expected to extend mining until 2027 Studying potential synergies between Sout
Slide 11: 7-Year Track Record
Fourth Quarter 2018 February 14, 2019 7-Year Track Record Building on our strengths over the past seven years STRONG, DEPENDABLE FISCALLY EFFECTIVE PROJECT OPERATORS DISCIPLINED MANAGERS Delivering our 7 Meeting guidance targets $ Strong Financial projects On-time years Position On-budget 11
Slide 12: 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 12
Slide 13: Financial Results
Fourth Quarter 2018 February 14, 2019 Financial Results All figures in US$ millions, except ounces, per share and per ounce amounts Q4 2018 Q4 2017 FY 2018 FY 2017 Attributable gold equivalent ounces (oz.)(1) Produced 610,152 652,710 2,452,398 2,673,533 Sold 636,183 628,565 2,510,419 2,596,754 Avera
Slide 14: Tasiast Project Financing Update
Fourth Quarter 2018 February 14, 2019 Tasiast Project Financing Update Project financing has progressed, with strong interest from multilateral organizations and commercial banks • Targeting approximately $300 million in financing • Signed mandate letters with IFC, a member of the World Bank Group,
Slide 15: 2019E Production and Costs
Fourth Quarter 2018 February 14, 2019 2019E Production and Costs(3) Kinross Total(1) Regional Guidance 2019E Unit Costs ($ per gold equivalent ounce) 2.5 million Americas Cost of sales(1,2) $730/oz. (+/- 5%) (+/- 5%) 1.44 million 2019E Gold Equivalent Production (ounces) (+/- 5%) All-in sustaining c
Slide 16: 2019E Capital Expenditures
Fourth Quarter 2018 February 14, 2019 2019E Capital Expenditures(3) • 2019 capital expenditures are expected to be $1,050 million (+/- 5%), including estimated capitalized interest of $65 million 2019E 2019E Total 2019E Capital Region Sustaining Capital Non-Sustaining Capital (+/- 5%) Americas $375
Slide 17: Solid Financial Position
Fourth Quarter 2018 February 14, 2019 Solid Financial Position Strong position to finance organic development projects with existing liquidity and cash flow generation Strategic investments to add value to our portfolio Liquidity Position ($ billion) • Completed the Phase One expansion and advanced
Slide 18: Operating Results
Operating Results We remain focused on operational excellence, building a culture of continuous improvement, innovation and disciplined cost management 18
Slide 19: Americas
Fourth Quarter 2018 February 14, 2019 Americas Approximately 60% of estimated 2019E gold equivalent production from mines located in the Americas • Record annual production at Paracatu Improved mill efficiencies and recoveries Significantly improved rainfall compared to 2017 Lower power costs
Slide 20: West Africa
Fourth Quarter 2018 February 14, 2019 West Africa Tasiast exceeding expectations; continued strong performance at Chirano • Tasiast delivered record quarterly production in Q4 2018 Average throughput: 14,100 t/d Average recovery: 94% Strong performance continued into 2019; currently exceeding
Slide 21: Russia
Fourth Quarter 2018 February 14, 2019 Russia Continued strong performance at Kupol-Dvoinoye, generating strong margins and cash flow • Production in-line with expectations • Moroshka complete & production commenced in October • Development of Dvoinoye Zone 1 continues on schedule Mine and surface
Slide 22: Development Projects
Development Projects Our portfolio of development projects are progressing well, and we are advancing an additional pipeline of future opportunities 22
Slide 23: Portfolio of Development Projects
Fourth Quarter 2018 February 14, 2019 Portfolio of Development Projects Advancing a pipeline of relatively low-risk brownfields projects located in the Americas Round Mountain Bald Mountain Fort Knox La Coipa Restart / Phase W Vantage Complex Gilmore Lobo-Marte Expected to extend Expected to initiat
Slide 24: Round Mountain Phase W
Fourth Quarter 2018 February 14, 2019 Round Mountain Phase W The Phase W project is progressing well; expect to commission the processing circuit in Q2 2019 • Detailed engineering for all major infrastructure is now complete • Pre-stripping is advancing well; encountered initial Phase W ore ahead of
Slide 25: Bald Mountain Vantage Complex
Fourth Quarter 2018 February 14, 2019 Bald Mountain Vantage Complex Vantage Complex project in the South Area of Bald Mountain is proceeding well and is expected to begin commissioning in late Q1 2019 • Heap leach pad is ~85% complete • New VCIC plant is ~30% complete • Support infrastructure, inclu
Slide 26: Fort Knox Gilmore
Fourth Quarter 2018 February 14, 2019 Fort Knox Gilmore Initial production from Gilmore is expected in early 2020 • Project includes: The first two phases of a potential multi-phase layback of the Fort Knox pit; and Construction of a new heap leach pad • Engineering of the new heap leach is now
Slide 27: Chile Projects
Fourth Quarter 2018 February 14, 2019 Chile Projects 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 Q3 2019 Lobo-Marte Project • Located 80km from La Coipa • Measured & i
Slide 28: Kupol Exploration Highlights
Fourth Quarter 2018 February 14, 2019 Kupol Exploration Highlights Many targets identified along the main Kupol West Licence N Kupol trend NE-EXT • In 2018, primary objective was to test Kupol Mining Licence depth and north extensions of the main NE Kupol vein system NU • Drill intercepts continued
Slide 29: Another 1-Year Mine Life Extension in Russia
Fourth Quarter 2018 February 14, 2019 Another 1-Year Mine Life Extension in Russia Continuing our track record of adding reserves to offset depletion at Kupol and Dvoinoye (4) Cumulative Production (Au eq.) Proven and Probable Reserves (Au eq.) 7.4 2.1 2018 • Estimated mill production extended to 6.
Slide 30: Chirano Exploration Highlights
Fourth Quarter 2018 February 14, 2019 Chirano Exploration Highlights Production at Chirano is now expected to extend to 2021, a 1-year extension • 2018 exploration focus continued to be adding incremental ounces to mine life Focused on infill drilling the depth potential at Akwaaba and Paboase • F
Slide 31: Bald Mountain Exploration Highlights
Fourth Quarter 2018 February 14, 2019 Bald Mountain Exploration Highlights Kinross envisions Bald Mountain as a long-life asset with significant upside potential and mineral resource growth • 2018 drill program was focused on near-mine opportunities to increase the resource base and provide a direct
Slide 32: 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 7 Met or exceeded ov
Slide 33: Endnotes
Fourth Quarter 2018 February 14, 2019 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 (
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