Kinross Gold Corporation · TSX:K
Kinross Gold — Q1 2011 Earnings Presentation
24 slides from Kinross Gold's earnings presentation, May 4, 2011
Slide 1: Delivering Disciplined Growth: First Quarter 2011 Results Webcast
DELIVERING DISCIPLINED GROWTH FIRST QUARTER 2011 FINANCIAL & OPERATING RESULTS WEBCAST May 4, 2011 1
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, including any information as to the future performance of Kinross, constitute “forward looking statements” with
Slide 3: Tye Burt, President & CEO
TYE BURT President & CEO TYE BURT CHIEF EXECUTIVE OFFICER 3
Slide 4: Q1 2011 Highlights
Q1 2011 HIGHLIGHTS • Continuing to deliver strong financial results Revenue Adjusted Operating Cash Adjusted Net Earnings(1) +42% Flow(1) +81% $937 +67% $398 $180 US$ millions $658 $239 $100 $0.34/sh $0.35/sh $0.16/sh $0.14/sh Q1 2010 Q1 2011 Q1 2010 Q1 2011 Q1 2010 Q1 2011 (1) Refer to endnote #1.
Slide 5: Q1 2011 Highlights
Q1 2011 Highlights • Production(2): 642,857 gold equivalent ounces (up 18% from Q1 2010) • Record quarterly revenue of $937.0 million (up 42% from Q1 2010) • Adjusted operating cash flow(1) of $397.6 million (up 67% from Q1 2010) • Adjusted net earnings(1) of $180.3 million (up 81% from Q1 2010) • T
Slide 6: Advancing Our Projects
ADVANCING OUR PROJECTS Tasiast Fruta del Norte Dvoinoye Lobo-Marte • 26 drill rigs active • Commenced • Drilling ahead of schedule • 70% of 20,000 m drill • 135,000 metres drilled construction of the program to be completed YTD portal highwall • Three rigs operational; by end of May fourth en route
Slide 7: Increasing Kupol Ownership to 100%
INCREASING KUPOL OWNERSHIP TO 100% • Kinross increased Kupol ownership to 100% Includes the Kupol East-West East West exploration licenses • Gross consideration: approximately $350 million To be financed through proceeds of Harry Winston share sale and non-recourse debt facility of $200 million
Slide 8: Thom Boehlert, Executive Vice-President & CFO
THOM O BOEHLERT O Executive Vice-President & CFO PAUL BARRY CHIEF FINANCIAL OFFICER 8
Slide 9: Q1 2011 Results
Q1 2011 RESULTS Realized g (3,4) Margin (in millions, except ounces and per Q1/10 Q1/11 % Change Gold Price +29% share amounts) +25% $784/oz $1,327/oz Gold equivalent production(2) 544,134 642,857 18% (ounces) Gold equivalent sales (2) 567,097 660,788 17% (ounces) Revenue $657.6 $937.0 42% Productio
Slide 10: Strong Balance Sheet
STRONG BALANCE SHEET • Cash on hand at March 31, 2011: $1.6 bn • Equity pipeline investment portfolio valued at $113 $113.4 4 mm As at March 31, 2011 $1,561 US$ millions $591 $470 Cash and cash equivalents Long-term investments & Total debt investments in associates 10
Slide 11: 2011 Outlook
2011 OUTLOOK Production and Costs(5) Production % of Total Region Cost of Sales / oz. oz (000 ounces ) Production South America 1,000 – 1,070 39% $585 - $650 North America 590 – 630 23% $625 - $685 West Africa 440 – 500 18% $595 - $655 (attributable) Russia 535 – 555 20% $395 - $435 (now 100%) Co-pr
Slide 12: Brant Hinze, Chief Operating Officer
BRANT HINZE CHIEF OPERATING OFFICER 12
Slide 13: Operating Results
OPERATING RESULTS (2) Gold equivalent ounces Production costs Produced Sold ($ mm) ($/oz.) Fort Knox 65,047 64,666 $40.6 $628 Round Mountain 42,121 41,555 $32.9 $792 Kettle River - Buckhorn 45,852 47,629 $17.9 $375 (2) Kupol 154,257 152,504 $48.6 $322 Paracatu 100,427 107,957 $74.5 $690 Crixas 14 81
Slide 14: Dr. Ken Thomas, Senior Vice-President, Projects
DR. KEN THOMAS SENIOR VICE-PRESIDENT, PROJECTS 14
Slide 15: Paracatu: At-Site Expansion
PARACATU: AT-SITE EXPANSION 3rd Ball Mill • Installing I t lli 3rd3db ballll mill ill tto iincrease th throughput h t • Construction 98% complete • Pre Pre-commissioning commissioning commenced in April • Commissioning to continue through Q2 2011 4th Ball Mill • Expected to sustain Plant 2 throughpu
Slide 16: Tasiast, Mauritania
TASIAST, MAURITANIA • 135,000 metres have been drilled YTD Definition drilling g 95% complete p Geotechnical drilling 80% complete Condemnation work 40% complete • Feasibility y study y 62% complete p On schedule for completion mid-2011 • ADR plant and new dump leach facility under construct
Slide 17: Fruta del Norte, Ecuador
FRUTA DEL NORTE, ECUADOR • Advancing the exploration decline: P Preparatory t workk has h commenced d with ith construction t ti off the portal high wall Construction of the portal is expected to continue until mid-2011 id 2011 Development of the decline is expected to start-up in Q3 2011 and
Slide 18: Dvoinoye, Russia
DVOINOYE, RUSSIA • Proceeding directly to a feasibility study Scoping study completed at a pre pre-feasibility feasibility level Feasibility study expected to be complete Q1 2012 • 6,000 m of current 24,000 m drill program complete Drilling to further define orebody in support of the feasibili
Slide 19: Lobo-Marte, Chile
LOBO-MARTE, CHILE • 20,000 m drill campaign 70% complete Geotechnical drilling has been completed Geotechnical and mine block models expected to be completed in Q3 2011 • Exploration E l ti d drilling illi att Valy V l Prospect P t Located 3 km south of Lobo deposit Geological and drill expl
Slide 20: Tye Burt, President & CEO
TYE BURT President & CEO TYE BURT CHIEF EXECUTIVE OFFICER 20
Slide 21: Key Objectives for 2011
KEY OBJECTIVES FOR 2011 Complete Tasiast scoping study Declare NI 43 43-101 101 resource at Dvoinoye Complete Fruta del Norte pre-feasibility study Complete Dvoinoye scoping study Commence construction on La Zarza exploration decline at Fruta del Norte Commissioning of the 3rd
Slide 22: Continuing the Kinross Transformation
CONTINUING THE KINROSS TRANSFORMATION Kinross Yesterday Kinross Now(6) 4.5 – 4.9 Gold equivalent productiion (mm oz) n (mm oz) Gold equivallent production 2.6 – 2.7 2.3 16 1.6 2005 2010 2011e 2015e (revised upwards) (6) Refer to endnote #6. 22
Slide 23: Endnotes
ENDNOTES 1) Adjusted net earnings attributed to common shareholders and adjusted operating cash flow numbers are non- GAAP financial measures which are meant to provide additional information and should not be used as a substitute for p performance measures p prepared p in accordance with GAAP. For
Slide 24: Kinross Gold Corporation
KINROSS GOLD CORPORATION 25 YORK STREET, 17TH FLOOR TORONTO, ON M5J 2V5 WWW.KINROSS.COM 24