Kinross Gold Corporation · TSX:K
Kinross Gold — Scotia Capital Precious Metals Conference 2009
20 slides from Kinross Gold's conference presentation, Dec 1, 2009
Slide 1: Delivering Disciplined Growth
Kinross Gold Corporation Scotia Capital Precious Metals Conference December 1, 2009 Delivering Disciplined Growth Scotia Capital Precious Metals Conference - December 1, 2009 Cautionary statement on forward-looking information All statements, other than statements of historical fact, contained or in
Slide 2: Why Kinross?
Kinross Gold Corporation Scotia Capital Precious Metals Conference December 1, 2009 Why Kinross? 1. Growing margins, growing cash flow Kinross today: • Portfolio of 8 operating mines o Production rising, costs declining o Higher margins, CFPS(1): 5 yr CAGR: 20%* • Policy of no gold-hedging o Strong
Slide 3: Increasing demand for gold
Kinross Gold Corporation Scotia Capital Precious Metals Conference December 1, 2009 Increasing demand for gold $110 $1,000 Investment / Other $100 Fabrication $900 Gold price (US$/oz) $90 $800 Tottal Gold Demand (US$ billions) $80 $700 Gold Price (US$/oz) $70 $600 $60 $500 $50 $400 $40 $300 $30 $200
Slide 4: World gold reserves and resources
Kinross Gold Corporation Scotia Capital Precious Metals Conference December 1, 2009 World gold reserves and resources Total Reserves & Resources Top Countries (mm ozs) (mm ozs) Total Reserves & Country % Resources Brazil Chile 1. South Africa 997 29.7% United States 2. Russia 225 6.7% Russia South A
Slide 5: Growing margins... growing cash flow
Kinross Gold Corporation Scotia Capital Precious Metals Conference December 1, 2009 G Growing i margins… i growing i cash h flflow • 37% production growth: 2007 to 2009e • Margins up 350% since 2002 • CFPS growth – 20% 5-yr CAGR* SCOTIA CAPITAL PRECIOUS *Based on full year-end results 2003 - 2008 ME
Slide 6: Production guidance for 2009: up 22% over 2008
Kinross Gold Corporation Scotia Capital Precious Metals Conference December 1, 2009 Production guidance for 2009: up 22% over 2008 Production Cost of Number Estimated Country Ounces (000s) % of 2009e total Sales / oz. of Mines Mine Life Chil Chile 450 – 500 21% $425 – 460 2 16 16+ Brazil 420 – 440 1
Slide 7: Kinross Margins Expanding
Kinross Gold Corporation Scotia Capital Precious Metals Conference December 1, 2009 Kinross Margins Expanding 2002 – Q3’09: • Average realized gold price: +203% • Kinross’ attributable cost of sales margin(6): +360% $492 $478 $481 $436 ost of Sales Margin ($/oz.) Up 360% $329 $279 Co $161 $170 $135
Slide 8: Q3 2009 results
Kinross Gold Corporation Scotia Capital Precious Metals Conference December 1, 2009 Q3 2009 results Realized COS Margin(6) Q3'09 Q3'08 % Change (in millions, except ounces and per share Gold Price +9% amounts) +12% $492/oz (5) Gold equivalent production $956/oz 537,440 551,510 -3% (ounces) Gold equi
Slide 9: Gold resource growth: 13% 5-yr CAGR
Kinross Gold Corporation Scotia Capital Precious Metals Conference December 1, 2009 Gold resource growth : 13% 5-yr CAGR (10) 80.0 Inferred Resources 140.0 Measured & Indicated Resources (8,9) (8) 21.2 70.0 Proven and Probable Reserves (2) 120.0 Total ounces per 1,000 shares 60.0 7.0 100.0 17.3* 11.
Slide 10: Pipeline of projects for the future
Kinross Gold Corporation Scotia Capital Precious Metals Conference December 1, 2009 Pipeline of projects for the future • Expansions being completed in ‘09 • Further organic growth at our mines • Advancing next suite of projects • Exploration & JV strategies SCOTIA CAPITAL PRECIOUS METALS CONFERENCE
Slide 11: Lobo-Marte, Chile
Kinross Gold Corporation Scotia Capital Precious Metals Conference December 1, 2009 Lobo-Marte, Chile La Coipa (2P: 1.06 g/t) • Located in Chile, near current Kinross Lobo-Marte ~110 km operations (M&I: 1.72 g/t) • Development stage asset with large gold Maricunga (2P: 0 0.72 72 g/t) resources Cerro
Slide 12: Fruta del Norte, Ecuador
Kinross Gold Corporation Scotia Capital Precious Metals Conference December 1, 2009 Fruta del Norte, Ecuador Quito • Project parameters under consideration(11): o Underground mine o 3,000 tpd milling capacity • Recent milestones: o Ecuador Mining Law approved (January ‘09) o Environmental Management
Slide 13: Valuation and performance
Kinross Gold Corporation Scotia Capital Precious Metals Conference December 1, 2009 Valuation and performance SCOTIA CAPITAL PRECIOUS METALS CONFERENCE 2009 25 DECEMBER 1, 2009 Scotia Capital: P / NAV 1.90 1.87 1.79 1.69 1.57 AUY AEM GG KGC ABX SCOTIA CAPITAL PRECIOUS Source: Scotia Capital Precious
Slide 14: Kinross Key Objectives for 2009
Kinross Gold Corporation Scotia Capital Precious Metals Conference December 1, 2009 Scotia Capital: P / 2010 CFPS 18.4 17.8 11.3 11.3 10.8 GG AEM AUY KGC ABX SCOTIA CAPITAL PRECIOUS Source: Scotia Capital Precious Minerals – Weekly Outlook 27 METALS CONFERENCE 2009 DECEMBER 1, 2009 November 30, 2009
Slide 15: Why Kinross?
Kinross Gold Corporation Scotia Capital Precious Metals Conference December 1, 2009 Why Kinross? 1. Growing margins, growing cash flows 2. Pipeline of future opportunities 3. Compelling valuation SCOTIA CAPITAL PRECIOUS METALS CONFERENCE 2009 29 DECEMBER 1, 2009 Endnotes (1) Unless otherwise stated,
Slide 16: Paracatu, Brazil (100%)
Kinross Gold Corporation Scotia Capital Precious Metals Conference December 1, 2009 Appendix: SCOTIA CAPITAL PRECIOUS METALS CONFERENCE 2009 31 DECEMBER 1, 2009 Paracatu, Brazil (100%) • Expansion to triple throughput to 60 mtpa • Mine life out to 2041 Operating Results Operating Production Cost of
Slide 17: Crixas, Brazil (50%)
Kinross Gold Corporation Scotia Capital Precious Metals Conference December 1, 2009 Crixas, Brazil (50%) • JV with AngloGold Ashanti • Underground mine located in the Brazil Operating Results Operating Production Cost of Sales Results (Au eq. oz.) ($/oz.) YTD 52,624 $430 2008 87,669 $302 Reserves an
Slide 18: La Coipa, Chile (100%)
Kinross Gold Corporation Scotia Capital Precious Metals Conference December 1, 2009 La Coipa, Chile (100%) • Gold/silver mine in the Maricunga district • Mill facility located 60km from Lobo-Marte deposits • Comprehensive exploration program Operating Results* Operating Production Cost of Sales Resu
Slide 19: Fort Knox, USA (100%)
Kinross Gold Corporation Scotia Capital Precious Metals Conference December 1, 2009 Fort Knox, USA(100%) • Located in Alaska • Expansion and new heap leach to extend mine life and lower costs • M t i lb Material being i stacked t k d on new padsd Operating Results Operating Production Cost of Sales
Slide 20: Kettle River, USA (100%)
Kinross Gold Corporation Scotia Capital Precious Metals Conference December 1, 2009 Kettle River, USA (100%) • Entered production in Q4’08 • Small foot-print, underground mine • 2009 first full year • Near mine exploration Near-mine Operating Results Operating Production Cost of Sales Results (Au eq
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