Kinross Gold Corporation · TSX:K
Kinross Gold — Shareholder Meeting (May 2015)
41 slides from Kinross Gold's shareholder meeting presentation, May 6, 2015
Slide 1: 2015 Annual & Special Meeting of Shareholders
2015 ANNUAL & SPECIAL MEETING OF SHAREHOLDERS MAY 6, 2015
Slide 2: 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 and responses to questions, including but not limited to any information as to the future performance of Kinross, constitute “forward looking statements” within the
Slide 3: Principles for Building Value
OPERATIONAL EXCELLENCE QUALITY OVER QUANTITY BALANCE SHEET STRENGTH DISCIPLINED CAPITAL ALLOCATION PRINCIPLES FOR BUILDING VALUE
Slide 4: Strong Foundation for Building Value
FINANCIAL FLEXIBILITY BALANCE SHEET FOR FUTURE OPPORTUNITIES FINANCIAL STRENGTH OPERATIONAL DISCIPLINE EXCELLENCE STRONG FOUNDATION FOR BUILDING VALUE
Slide 5: 2014 Achievements
HEALTH AND OPERATIONAL BALANCE SHEET SAFETY EXCELLENCE STRENGTH 2014 ACHIEVEMENTS
Slide 6: Best Safety Performance in Kinross History
BEST SAFETY PERFORMANCE IN KINROSS HISTORY INDUSTRY-LEADING HEALTH AND SAFETY PERFORMANCE 2014 ACHIEVEMENTS
Slide 7: Industry-Leading Health and Safety Performance
TOTAL REPORTABLE INJURY FREQUENCY RATE SDF 0.93 0.86 0.56 0.42 0.38 2010 2011 2012 2013 2014 INDUSTRY-LEADING HEALTH AND SAFETY PERFORMANCE 2014 ACHIEVEMENTS
Slide 8: Record Annual Production
RECORD ANNUAL PRODUCTION 28% 2.71M Ounces(1) 53% 19% Americas West Africa Russia (1) Refer to endnote #1. OPERATIONAL EXCELLENCE 2014 ACHIEVEMENTS
Slide 9: Reduced All-In Sustaining Cost
$1,122 REDUCED $1,082 ALL-IN SUSTAINING COST(2) $973 2012 2013 2014 (2) Refer to endnote #2. OPERATIONAL EXCELLENCE 2014 ACHIEVEMENTS
Slide 10: Paracatu, Brazil
PARACATU, BRAZIL IMPLEMENTED NEW ORE BLENDING STRATEGY RECORD ANNUAL PRODUCTION OF 521,026 OUNCES REDUCED COST OF SALES(3) BY $20/OZ. (3) Refer to endnote #3. OPERATIONAL EXCELLENCE 2014 ACHIEVEMENTS
Slide 11: Self-Perform Mining
SELF-PERFORM MINING INCREASED PRODUCTIVITY AND REDUCED COSTS MARICUNGA TASIAST CHIRANO CHILE MAURITANIA GHANA OPERATIONAL EXCELLENCE DELIVERING RESULTS 2014
Slide 12: Maricunga, Chile
MARICUNGA, CHILE FOCUS ON CONTINUOUS IMPROVEMENT INITIATIVES RECORD ANNUAL PRODUCTION REDUCED COST OF SALES(3) PER OZ. BY 19% (3) Refer to endnote #3. OPERATIONAL EXCELLENCE 2014 ACHIEVEMENTS
Slide 13: Russian Operations
RUSSIAN OPERATIONS FIRST FULL YEAR OF PRODUCTION FROM DVOINOYE OPERATIONAL EXCELLENCE 2014 ACHIEVEMENTS
Slide 14: Strong Liquidity Position
STRONG LIQUIDITY POSITION $1.0 $2.5B AT DEC 31, 2014 $1.5 Cash, cash equivalents and restricted cash Undrawn credit facilities BALANCE SHEET STRENGTH 2014 ACHIEVEMENTS
Slide 15: Generating Free Cash Flow
CASH AND CASH EQUIVALENTS* GENERATING $1,025 FREE CASH FLOW $794 2013 2014 * includes restricted cash BALANCE SHEET STRENGTH 2014 ACHIEVEMENTS
Slide 16: Reduced Capital Expenditures
REDUCED $1.26B CAPITAL EXPENDITURES ($M) CAPITAL EXPENDITURES DOWN 50% $632M 2013 2014 BALANCE SHEET STRENGTH 2014 ACHIEVEMENTS
Slide 17: $150 Million Cash Proceeds from Sale of Fruta del Norte
$150 MILLION CASH PROCEEDS FROM THE SALE OF FRUTA DEL NORTE BALANCE SHEET STRENGTH 2014 ACHIEVEMENTS
Slide 18: Prudent Debt Management
PRUDENT DEBT MANAGEMENT REPAID $60M OF THE KUPOL LOAN IN 2014 ONLY MATERIAL NEAR-TERM MATURITY $250M SENIOR NOTES DUE IN 2016 BALANCE SHEET STRENGTH 2014 ACHIEVEMENTS
Slide 19: 2014 Achievements
HEALTH AND OPERATIONAL BALANCE SHEET SAFETY EXCELLENCE STRENGTH 2014 ACHIEVEMENTS
Slide 20: Continue to Improve Safety Performance
CONTINUE TO IMPROVE SAFETY PERFORMANCE INDUSTRY-LEADING HEALTH & SAFETY PERFORMANCE 2015 OBJECTIVES
Slide 21: Deliver 2015 Guidance
DELIVER 2012 2013 2014 2015 2015 GUIDANCE MET or EXCEEDED annual production guidance MET or came in UNDER annual cost of sales guidance MET or came in UNDER annual capital expenditures guidance OPERATIONAL EXCELLENCE 2015 OBJECTIVES
Slide 22: Deliver 2015 Guidance
DELIVER 2015 GUIDANCE(4) GOLD EQUIVALENT PRODUCTION(1) 2.4 TO 2.6 MILLION OUNCES COST OF SALES(3) $720 TO $780 PER OUNCE ALL-IN SUSTAINING COST(2) (1) Refer to endnote #1 (2) Refer to endnote #2. $1,000 TO $1,100 PER OUNCE (3) Refer to endnote #3. (4) Refer to endnote #4. OPERATIONAL EXCELLENCE 2015
Slide 23: Deliver 2015 Guidance
DELIVER 2015 GUIDANCE GOLD EQUIVALENT PRODUCTION 2.4 TO 2.6 MILLION OUNCES COST OF SALES $720 TO $780 PER OUNCE ALL-IN SUSTAINING COST $1,000 TO $1,100 PER OUNCE OPERATIONAL EXCELLENCE 2015 OBJECTIVES
Slide 24: Restart Maricunga Operations
RESTART MARICUNGA OPERATIONS HEAVY RAINS SEVERELY DAMAGED INFRASTRUCTURE IN THE ATACAMA REGION GOVERNMENT DECLARED A STATE OF EMERGENCY NO DAMAGE TO THE MARICUNGA FACILITIES OPERATIONAL EXCELLENCE 2015 OBJECTIVES
Slide 25: Restart Maricunga Operations
RESTART MARICUNGA OPERATIONS PLAN TO RESTART MINING AND CRUSHING IN JUNE NO IMPACT TO REGIONAL GUIDANCE ANTICIPATED OPERATIONAL EXCELLENCE 2015 OBJECTIVES
Slide 26: Optimize Tasiast Operations
OPTIMIZE TASIAST OPERATIONS $150M IN CONTINUOUS IMPROVEMENT & COST SAVINGS IDENTIFIED SINCE 2013 TRANSITION TO SELF-PERFORM IN MOBILE MAINTENANCE INSTALLED LOWER COST POWER SUPPLY OPERATIONAL EXCELLENCE 2015 OBJECTIVES
Slide 27: Optimize Tasiast Operations
OPTIMIZE TASIAST OPERATIONS CONNECTING WATER PUMPING STATION TO ON-SITE POWER PLANT EXPECTED TO REDUCE POWER COSTS IN THIS AREA BY ~80% OPERATIONAL EXCELLENCE 2015 OBJECTIVES
Slide 28: Optimize Tasiast Operations
OPTIMIZE TASIAST OPERATIONS UPGRADING ELUTION CIRCUIT EXPECTED TO GENERATE ANNUALIZED SAVINGS OF $5 MILLION OPERATIONAL EXCELLENCE 2015 OBJECTIVES
Slide 29: Maintain Strong Balance Sheet & Financial Flexibility
MAINTAIN STRONG BALANCE SHEET & FINANCIAL FLEXIBILITY FINANCIAL DISCIPLINE 2015 OBJECTIVES
Slide 30: Complete La Coipa Pre-Feasibility Study
COMPLETE LA COIPA PRE-FEASIBILITY STUDY EXPECT TO BE COMPLETED DURING Q3 2015 PROCEEDING WITH PERMITTING ADVANCING DRILLING AT DISTRICT TARGETS ADVANCE GROWTH OPPORTUNITIES 2015 OBJECTIVES
Slide 31: Extend Mine Life at Chirano
EXTEND MINE LIFE AT CHIRANO ADDITIONAL OUNCES AT PABOASE AND AKOTI TO EXTEND MINE LIFE TO 2020E ADVANCE GROWTH OPPORTUNITIES 2015 OBJECTIVES
Slide 32: Implement New Processing Initiative at Paracatu
IMPLEMENT NEW PROCESSING INITIATIVE AT PARACATU REPROCESSING TAILINGS FROM THE SANTO ANTONIO FACILITY EXPECT TO CONTRIBUTE AN ADDITIONAL 34,000 OUNCES OF PRODUCTION ANNUALLY PLAN TO COMMENCE IN Q4 2015 ADVANCE GROWTH OPPORTUNITIES 2015 OBJECTIVES
Slide 33: Maintain Tasiast Mill Expansion Optionality
MAINTAIN TASIAST MILL EXPANSION OPTIONALITY ATTRACTIVE PROJECT IN THE RIGHT GOLD PRICE ENVIRONMENT ADVANCE GROWTH OPPORTUNITIES 2015 OBJECTIVES
Slide 34: Evaluate Growth Opportunities
EVALUATE GROWTH OPPORTUNITIES BALANCE SHEET STRENGTH AND FINANCIAL DISCIPLINE REMAIN PRIORITIES ADVANCE GROWTH OPPORTUNITIES 2015 OBJECTIVES
Slide 35: Building Strong Relationships
PERCENTAGE OF WORKFORCE FROM BUILDING HOST COUNTRIES STRONG RELATIONSHIPS 96% 97% 98% 2012 2013 2014 COMMITMENT TO RESPONSIBLE MINING
Slide 36: Building Strong Relationships
BUILDING STRONG RELATIONSHIPS CONTRIBUTED TO ~700 COMMUNITY PROGRAMS COMMITMENT TO RESPONSIBLE MINING
Slide 37: Engaging with Our Stakeholders
ENGAGING WITH OUR STAKEHOLDERS 90,000 STAKEHOLDERS ENGAGED COMMITMENT TO RESPONSIBLE MINING
Slide 38: Engaging with Our Stakeholders
ENGAGING WITH OUR STAKEHOLDERS 90,000 STAKEHOLDERS ENGAGED COMMITMENT TO RESPONSIBLE MINING
Slide 39: Principles for Building Value
OPERATIONAL EXCELLENCE QUALITY OVER QUANTITY BALANCE SHEET STRENGTH DISCIPLINED CAPITAL ALLOCATION PRINCIPLES FOR BUILDING VALUE
Slide 40: Endnotes
1) Unless otherwise noted, gold equivalent production, gold equivalent ounces sold and production cost of sales figures in this presentation are based on Kinross’ 90% share of Chirano production and sales. 2) All-in sustaining cost is a non-GAAP measure. For more information and a reconciliation of
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