Kinross Gold Corporation · TSX:K
Kinross Gold — Sprott Securities Conference 2005
29 slides from Kinross Gold's conference presentation, Jan 12, 2005
Slide 1: Sprott Securities – dedicated to being world class
Sprott Securities January 12, 2005 dedicated to being world class
Slide 2: Forward Looking Statement
Forward Looking Statement Certain statements set forth in this presentation constitute "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties and other factors that may cause the actual resul
Slide 3: Kinross at a Glance
Kinross at a Glance Key Facts Key Attributes • Senior gold producer, • Excellent spread of 2004 gold equivalent geopolitical risk production of 1.7 million • Modern, low cost asset ozs @ $235 to $240 per base oz. total cash cost • Exciting pipeline of • ~3,800 employees in 6 development projects cou
Slide 4: Kinross Goals
Kinross Goals ¾ Extend Mine Life ¾ Be a Good Operator ¾ Sustainable Growth and Development ¾ Simplify the Company
Slide 5: Our global producing assets
Kinross Gold Corporation Fort Knox (100%) our global producing assets Alaska, USA (Open Pit) New Britannia (50%) Manitoba, Canada (U/G) Musselwhite (32%) Ontario, Canada (U/G) Porcupine (49%) Kettle River (100%) Ontario, Canada (Open Pit, U/G) Washington, USA (U/G) Lupin (100%) Nunavut, Canada (U/G)
Slide 6: Our global producing assets
Kinross Gold Corporation Fort Knox (100%) our global producing assets Alaska, USA (Open Pit) New Britannia (50%) Manitoba, Canada (U/G) Musselwhite (32%) Ontario, Canada (U/G) Porcupine (49%) Kettle River (100%) Ontario, Canada (Open Pit, U/G) Washington, USA (U/G) Lupin (100%) Nunavut, Canada (U/G)
Slide 7: Proven and Probable Reserves
Significant Reserve Increase 20 Buckhorn Proven and Probable Reserves Paracatu (millions of ounces) Reserves at Dec. 31 15 10 2002 2003 2004E
Slide 8: Increasing Average Mine Life
(1) A verag e M ine L ife 0 4 8 12 16 20 Ca m bi or G ol dC or p G la m is Ki nr os Ha s rm Ag on ni y co Source: BMO Nesbitt Burns Third Quarter 2004 “Red Book” Ea gl e Ba rr ic k Increasing Average Mine Life An gl o M er id ia Ne n w m on t Pl ac er
Slide 9: Increasing Production Profile
Increasing Production Profile 2,500 2,000 equivalent production 000's ounces gold 1,500 1,000 500 0 93 94 95 96 97 98 99 00 01 02 03 E E E E E 04 05 06 07 08 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 Formation Nerco Falconbridge Macassa AMAX Echo Bay / TVX Each transaction is a stepping stone…
Slide 10: Paracatu Acquisition
Paracatu Acquisition • Purchased 51% of Paracatu from Rio Tinto for $US 260 million, transaction closed December 31, 2004 • Kinross is 100% owner and operator • Paracatu mine life greater than 20 years • Increases Kinross’ proven and probable gold reserves by 4.2 million oz. • Eliminates one joint v
Slide 11: Kinross Goals
Kinross Goals ¾ Extend Mine Life 9 ¾ Be a Good Operator ¾ Sustainable Growth and 9 Development ¾ Simplify the Company 9
Slide 12: Be a Good Operator
Be a Good Operator Production - Budget Production - Actual Total Cash Cost - Budget Total Cash Costs - Actual 600 250 500 200 000s gold equivalent ounces 400 150 300 100 200 50 100 0 0 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004E Q4 2004E challenging opportunities require innovative stra
Slide 13: Be a Good Operator – Total Cash Costs
Be a Good Operator – Total Cash Costs How Kinross has improved relative to other producers over time? 400 350 Total Cash Costs 2000 Total Cash Costs 2004E 300 250 US dollars 200 150 100 50 0 Newmont Harmony Anglo Agnico Eagle Placer Kinross Glamis Goldcorp Meridian Cambior Barrick challenging opport
Slide 14: Be a Good Operator – Reclamation Safety Awards
Be a Good Operator – Reclamation Safety Awards • Nevada Bureau of Land Management 2004 Reclamation and Sustainable Development award for the Manhattan project near Round Mountain • QR Mine – John MacDonald Mine Reclamation Award (British Columbia) – 2002 • Kinross Gold Corporation - Corporate Knight
Slide 15: Kinross Goals
Kinross Goals ¾ Extend Mine Life ¾ Be a Good Operator 9 ¾ Sustainable Growth and Development ¾ Simplify the Company
Slide 16: Growth and Development – Reserve Replacement – 2004E
Growth and Development – Reserve Replacement – 2004E 20.1 20 4.9 0.5 18 16 2.7 14.1 (2.1) 12 Millions of ounces 8 4 0 31-Dec-03 Depletion New Acquisitions Gold Price 31-Dec-04E ($325) Discoveries ($350) challenging opportunities require innovative strategies
Slide 17: Reserve Growth (excluding production)
Reserve Growth (excluding production) Estimated New 2P Reserves To Be Added in 2004 Paracatu Gurupi Buckhorn Fort Knox On target to replace reserves PJV On target to replace 55% of reserves Round Mtn On target to replace 25% of reserves La Coipa On target to replace reserves Musselwhite On target to
Slide 18: Growth and Development – Current Project Pipeline
Growth and Development – Current Project Pipeline Exploration Pre-feasibility Feasibility Construction Production Refugio Pamour Birkachan Paracatu Exp. Puren Gurupi Gold Hill PQ Deeps Measured & Indicated Resources Proven & Probable Reserves Progress January 03 to September 04 Emanuel North New Dis
Slide 19: Paracatu Expansion – Optimizing…
Paracatu Expansion Optimizing…
Slide 20: Paracatu Expansion
Paracatu Expansion Optimizing… ¾ Increase milling capacity and improve efficiency resulting in: • Increased gold recoveries • Lower costs • Increased resources due to lower cutoff grade ¾ Increase production to 250,000 oz/yr (100%) thru 2025 • Average yearly production in first 5 years of +300,000 o
Slide 21: Restarting Refugio – Renewed life…
Restarting Refugio (50% (50% Kinross, Kinross, operator) operator) Renewed life…
Slide 22: Restarting Refugio – Renewed life…
Restarting Refugio (50% (50% Kinross, Kinross, operator) operator) Renewed life…
Slide 23: Restarting Refugio (50%)
Restarting Refugio (50% (50% Kinross, Kinross, operator) operator) Renewed life… ¾ New power line has been put in up to site ¾ Mobile equipment is arriving, new operators being trained on equipment, pre-strip is underway ¾ Cement work is complete, now hanging structural steel on new buildings ¾ Anti
Slide 24: Gurupi Update
Gurupi Update New life...
Slide 25: Gurupi Update
Gurupi Update New life… ¾ Kinross completed an internal scoping study which gave a positive indication of economic viability ¾ Feasibility study is underway, expected to be completed in first quarter 2005 ¾ Project is located in northern Brazil, four hours from two cities of several million people e
Slide 26: Kinross Goals
Kinross Goals ¾ Extend Mine Life ¾ Be a Good Operator ¾ Sustainable Growth and Development 9 ¾ Simplify the Company
Slide 27: Simplify the Company
Simplify the Company ¾ Paracatu acquisition ¾ eliminates one joint venture partner, gives us control as operator ¾ Lupin and New Britannia are nearing the end of their mine life ¾ Kinross bought shares back from 40% of its shareholders in December, simplifying our shareholder base ¾ Corporate transa
Slide 28: Kinross Goals
Kinross Goals ¾ Extend Mine Life ¾ Be a Good Operator ¾ Sustainable Growth and Development ¾ Simplify the Company 9
Slide 29: dedicated to being world class
dedicated to being world class Shares outstanding: 346.6 million Market cap.: US$2.9 billion KGC: NYSE K: TSX K.U: TSX (US dollar trading symbol) K.WT: TSX www.kinross.com Kinross Gold Corporation 40 King Street West, 52nd Floor Scotia Plaza Toronto, ON M5H 3Y2 416-365-5123 416-363-6622 866-561-3636