Kinross Gold Corporation · TSX:K
Kinross Gold — Denver Gold Forum 2010
21 slides from Kinross Gold's conference presentation, Sep 22, 2010
Slide 1: Delivering Disciplined Growth
Kinross Gold Corporation Denver Gold Forum September 22, 2010 Delivering Disciplined Growth Denver Gold Forum Denver CO Denver, September 19-22, 2010 Cautionary Statement on Forward‐Looking Information All statements, other than statements of historical fact, contained or incorporated by reference i
Slide 2: Increasing Demand for Gold
Kinross Gold Corporation Denver Gold Forum September 22, 2010 I. Whyy Gold Now? 3 Increasing Demand for Gold $170 $1,200 Investment / Other $160 Total Fabrication $150 Gold Price (US$/oz) $140 $1,000 $ ,000 Tottal Gold Demand (US$ billions) $130 $120 Gold Price (US$/oz.) $800 $110 $100 $90 $600 $80
Slide 3: Declining world supply from mine production
Kinross Gold Corporation Denver Gold Forum September 22, 2010 Declining world supply from mine production 2001: Peak Production 3,000 Other Big Four* 2,500 2,000 Tonnes 1,500 1,000 500 0 1969 1974 1979 1984 1989 1994 1999 2004 2009e 2009 * South Africa, United States, Australia, Canada Source: GFMS
Slide 4: Continuing the Kinross Transformation
Kinross Gold Corporation Denver Gold Forum September 22, 2010 II. Whyy Kinross Now? 7 Continuing the Kinross Transformation Kinross Yesterday Kinross Now(1) 4.5 – 4.9 Gold equivalent production (mm oz) Gold equivalent production (mm oz) 2.6 ‐ 2.7 2.2 1.6 2005 2009 2010e 2015e (1) Please refer to end
Slide 5: World Gold Reserves and Resources Focused in the World's Best Gold Districts
Kinross Gold Corporation Denver Gold Forum September 22, 2010 World Gold Reserves and Resources Total Reserves & Resources Top Countries (mm ozs) (tonnes) Total Reserves & Brazil Chile Country % Resources United States 1. South Africa 997 29.7% Russia South Africa 2. Russia 225 6.7% 3. Australia 193
Slide 6: Track Record of Gold Reserve Growth
Kinross Gold Corporation Denver Gold Forum September 22, 2010 Track Record of Gold Reserve Growth Current Kinross Red Back Now Exploration & Development 8.1 53.5 Proven and Probable Gold Reserves (mm oz)(2) 33.2 Mined 20.8 13.3 Acquired Divested 20 0 20.0 15.3 2004 Current (2) Please refer to endnot
Slide 7: Highlights: 2010 YTD
Kinross Gold Corporation Denver Gold Forum September 22, 2010 Highlights: 2010 YTD • Transformational combination with Red Back Mining, adding high‐growth assets • Delivered strong financial results: o H1’10 : revenue +20%; adjusted cash flow(3) +13%; adjusted net earnings(3) +36% o Record high marg
Slide 8: Growing Cash Flow per Share
Kinross Gold Corporation Denver Gold Forum September 22, 2010 Growing Cash Flow per Share • Record high operating cash flow in 2009 (+35% vs. 2008) • 5‐yr 5 yr CAGR : 25% $1 36 $1.36 H1’09 vs. H1’10 Adjusted Cash Flow per Share (US$)(3) $1.01 $0.80 $0.71 $0.64 $0.56 $0.51 $0.45 FY'04 FY'05 FY'06 FY'
Slide 9: Kinross Project Portfolio
Kinross Gold Corporation Denver Gold Forum September 22, 2010 Kinross Project Portfolio 2011 2012 2013 2014 2015 Paracatu 3rd Ball Mill Paracatu Desulphurization Maricunga SART Plant Paracatu 4th Ball Mill Maricunga Optimization Dvoinoye Tasiast Lobo‐Marte Fruta del Norte Cerro Casale Conceptual tim
Slide 10: Paracatu: At-site expansion
Kinross Gold Corporation Denver Gold Forum September 22, 2010 Paracatu: At‐site expansion 3rd Ball Mill • Installingg 3rd ball mill to increase throughput g p • Project 40% complete • On schedule for start‐up in Q1 2011 Desulphurization Circuit • Installing a $30 mm desulphurization circuit to reduc
Slide 11: Tasiast: District Upside
Kinross Gold Corporation Denver Gold Forum September 22, 2010 Tasiast: District Upside • Kinross’ preliminary estimate: o 350 – 425 mm tonnes grading 1.5 – 1.8 g/t Au(5) • The Greenschist Zone features intervals averaging ~60 to 100 m wide, grading 1.5 – 3.0 g/t • Geological modeling by Kinross indi
Slide 12: District Potential – Archean Greenstone Belt
Kinross Gold Corporation Denver Gold Forum September 22, 2010 District Potential – 82 x 25 km Archean Greenstone Belt Tasiast Geology(1) Timmins Geology with Major Au Mines & Au Occurrences(2) Tasiast 25 km 25 km (1) Source: Red Back Mining February 2010 Technical Presentation, available on Red Back
Slide 13: Kinross' Expansion Plans for Tasiast
Kinross Gold Corporation Denver Gold Forum September 22, 2010 Kinross’ Expansion Plans for Tasiast • Kinross development program for Tasiast currently envisions: o Construction of a new mill, increasing capacity from 10k tpd currently to 60k tpd o Larger mining fleet, fleet tailored to the scale of
Slide 14: Fruta del Norte, Ecuador
Kinross Gold Corporation Denver Gold Forum September 22, 2010 Fruta del Norte, Ecuador • 18,000 metre drill campaign completed • Pre‐feasibility expected by year‐end Quito • Feasibilityy expected p H1 2011 • Received Environmental License for La Zarza orebody; allows drilling for geotechnical, hydro
Slide 15: Cerro Casale, Chile (25%)
Kinross Gold Corporation Denver Gold Forum September 22, 2010 Cerro Casale, Chile (25%) La Coipa • Sold down interest from 50% to 25%: o Total transaction value: $474 mm L b M t Lobo‐Marte ~110 km • Rebalances Cerro Casale in our overall portfolio, reduces future capital and increases cash Maricunga
Slide 16: Fort Knox, USA (100%)
Kinross Gold Corporation Denver Gold Forum September 22, 2010 Appendix pp 31 Fort Knox, USA (100%) • Located in Alaska • Expansion and new heap leach to extend mine life • M t i lb Material being i stacked t k d on new pads d Operating Results Production Cost of Sales (Au eq. oz) ($/oz) H1 2010 155,
Slide 17: Round Mountain, USA (50%)
Kinross Gold Corporation Denver Gold Forum September 22, 2010 Round Mountain, USA (50%) • Kinross‐operated JV with Barrick • Located in Nevada, USA • Open pit mine Operating Results Production Cost of Sales (Au eq. oz) ($/oz) H1 2010 92,556 $596 H1 2009 101,498 $526 2009 Gold Reserves and Resources(
Slide 18: Kupol, Russia (75%)
Kinross Gold Corporation Denver Gold Forum September 22, 2010 Kupol, Russia (75%) • 3,000 tpd mill with open‐pit and underground • 2009 first full year of production Operating Results Production Cost of Sales (Au eq. oz) ($/oz) H1 2010 284,959 $308 H1 2009 368,541 $246 2009 Reserves and Resources(2)
Slide 19: Crixas, Brazil (50%)
Kinross Gold Corporation Denver Gold Forum September 22, 2010 Crixas, Brazil (50%) • JV with AngloGold Ashanti • Underground mine located in the Brazil Operating Results Production Cost of Sales (Au eq. oz) ($/oz) H1 2010 36,932 $474 H1 2009 32,241 $425 Reserves and Resources(2) Tonnes Grade Ounces
Slide 20: Maricunga, Chile (100%)
Kinross Gold Corporation Denver Gold Forum September 22, 2010 Maricunga, Chile (100%) • Located the highly prospective Maricunga District • Open pit, heap leach operation • Expansion under review Operating Results Production Cost of Sales (Au eq. oz) ($/oz) H1 2010 94,767 $620 H1 2009 116,439 $529 2
Slide 21: Endnotes
Kinross Gold Corporation Denver Gold Forum September 22, 2010 Endnotes 1) Production guidance for 2010 reflects Kinross’ standalone production forecast pro forma the acquisition of Red Back Mining. For more information on Kinross’ production and cost outlook for 2010, please refer to the news releas