Kinross Gold Corporation · TSX:K
Kinross Gold — CIS Precious Metals Summit 2007
17 slides from Kinross Gold's conference presentation, Feb 15, 2007
Slide 1: Investment Climate - CIS Precious Metals Summit
Investment Climate CIS Precious Metals Summit Moscow February 15-16, 2 0 0 7
Slide 2: Cautionary Statement
Cautionary Statement All statements, other that statements of historical fact, contained or incorporated by reference in this presentation, including any information as to the future financial or operating performance of Kinross constitute "forward-looking statements" within the meaning of certain s
Slide 3: Russia: A Good Place to Invest
Russia: A Good Place to Invest Market Policy Forces Environment Opportunity 3
Slide 4: Driving Market Forces
Driving Market Forces Metal Prices Scarcity of Inputs to Metals Production Increased Activity in Mining Capital Markets 4
Slide 5: Surging Prices
Surging Prices Trailing 5-yr Base Metals Price Trailing 5-yr Precious Metals + Crude Oil Performance Price Performance 700% 700% 600% 600% +200% - 450% +100% - 180% 500% 500% 400% 400% Index Index 300% 300% 200% 200% 100% 100% 0% 0% 2/4/2001 2/3/2002 2/2/2003 2/1/2004 1/30/2005 1/29/2006 1/28/2007 2
Slide 6: Consumption Growth
Consumption Growth 2002-2005 World Contribution to growth of Consumption Other Major* Growth China Emerging Countries Aluminum 8% 48% 9% Copper 4% 51% 41% Lead 4% 110% -7% Nickel 4% 87% -11% Steel 9% 54% 8% Tin 8% 86% 2% Zinc 4% 113% 7% *Other Emerging Countries include Brazil, India, Mexico, and Ru
Slide 7: Declining Discovery Rate
Declining Discovery Rate Global Gold Discovery and Exploration 3,000 3,000 $2,410 2,500 2,500 Expl. Spend (US$ mm) $2,004 Resource tonnes 2,000 $1,845 2,000 $1,570 $1,494 1,500 $1,333 1,500 $1,100 $1,068 1,000 $850 $840 $826 $828 1,000 $618 $605 500 500 0 0 1992 1993 1994 1995 1996 1997 1998 1999 20
Slide 8: Scarcity of Other Inputs
Scarcity of Other Inputs Equipment/Supplies Long lead times for mill development, big crushers, shovels and heavy moving equipment tires Energy China & Russia rushing to build new power plants to sustain growth Materials Greater demand for cyanide and plastic liner have significantly increased price
Slide 9: Equity Market Activity
Equity Market Activity In July 2006, Russia removed remaining capital controls on ruble exchanges, making the ruble freely convertible. Strong performance of RTS - up over 80% in 2005, up 70% in 20061 Number of IPOs increasing - from 6 IPOs of Russian companies in the period from 1996 to 2003 to 19
Slide 10: Metals & Mining JV Activity
Metals & Mining JV Activity Rio Tinto (49%) & Norilsk Nickel (51%) – April 2006 BHP Billiton (49%) & Norilsk Nickel (51%) – June 2006 Anglogold (50%) & Polymetal (50%) – September 2006 Anglo American & Severstal – October 2006 Next Step - Russian companies to aggressively pursue joint ventures offsh
Slide 11: Metals & Mining M&A
Metals & Mining M&A Top Mining and Metals Deals of 2006 Merger of Rusal, Sual, Glencore - $30 billion Freeport McMoran offer for Phelps Dodge – $26 billion Xstrata’s takeover of Falconbridge – $21 billion CVRD buys Inco – $17 billion Goldcorp merger with Glamis - $9 billion CVRD buys balance of Caem
Slide 12: Global Gold M&A
Global Gold M&A 20* 12 15 21 21 33 15 23 31 *# of transactions Source: Merrill Lynch 12
Slide 13: Kinross: A Great New Company
Kinross: A Great New Company Est. US$8 billion market cap company with industry leading growth profile 56% growth in production 2006 to 2009 (Street Consensus) World-class, geographically-diversified asset base Excellent projects under construction – Paracatu (Brazil), Kupol (Russia), Buckhorn (US)
Slide 14: Russia: A Desirable Position
Russia: A Desirable Position Activity of Rise of Global Domestic Miners Miners Growing Investor Interest 14
Slide 15: Some Considerations
Some Considerations Need for globally recognised environmental stewardship – global miners offer expertise Desirability to work to S.E.C. standards of technical reporting Financial disclosure/accounting standards - U.S. GAAP, International Financial Reporting Standards (IFRS) Necessity for high stan
Slide 16: Benefits to Russia
Benefits to Russia Accelerated discovery and development of new resources Infrastructure development Jobs in remote areas Skills and technology transfer Acceptance by global resource market participants; exposure to commercial opportunities outside Russia Increased national production and GDP Tax an
Slide 17: Thank You
Thank You Hugh Agro Sr. VP, Corporate Development Kinross Gold Corporation +1 416-365-2564 hugh.agro@kinross.com 17