Kinross Gold Corporation · TSX:K
Kinross Gold — Investor Presentation (April 2010)
23 slides from Kinross Gold's investor presentation, Apr 7, 2010
Slide 1: Delivering Disciplined Growth
Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 Delivering Disciplined Growth GMP Sales Desk Presentation Toronto, ON April 7 7, 2010 Cautionary Statement on Forward‐Looking Information All statements, other than statements of historical fact, contained or incorporated by referenc
Slide 2: Why Kinross?
Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 Why Kinross? • Growing cash flow – Production has risen while margins have expanded – CFPS(1): 5 yr CAGR : 25% – Strong balance sheet: ~$1.1 bn in cash • Pipeline of future opportunities Kinross Today – Increasing reserve and resourc
Slide 3: Major gold discoveries: 1997-2008
Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 Major gold discoveries: 1997‐2008 Spending 3,500 90 Average of Major Au Discoveries ((MM oz.) 80 3,000 70 erage of Grassroots + Late Stage S 2,500 60 2,000 50 (US$ MM) 1,500 40 30 1,000 20 500 10 3 Year A 3 Year Ave - 0 1997 1998 199
Slide 4: Growing Margins and Growing Cash Flow
Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 Growing Margins and Growingg Cash Flow • 41% production growth: 2007 to 2009 • Margin growth: 27% 5‐yr CAGR • CFPS growth: 25% 5‐yr CAGR 7 Focused Portfolio in Five Countries Portfolio of Mines and Projects Chile United States •
Slide 5: 2010 Production Guidance
Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 2010 Production Guidance Production Cost of Number Estimated Country % of 2010e Ounces (000s) Sales / oz. of Mines Mine Life total Chile 460 – 480 21% $500 – 520 2 16+ Brazil 510 – 580 24% $490 – 555 2 30+ Russia(6) 495 – 525 23% $34
Slide 6: Growing Cash Flow per Share
Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 Growing Cash Flow per Share • Record high operating cash flow(1) in 2009 (+35% vs. 2008) $1.36 • 5‐yr 5 yr CAGR: 25% ed Cash Flow per Share (US$) $1.01 $0.80 $0.56 $0.51 $0.45 Adjuste FY'04 FY'05 FY'06 FY'07 FY'08 FY'09 (1) Refer to
Slide 7: Strong Financial & Operating Performance
Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 Strong Financial & Operating Performance • Record production in 2009 • Record cash flow and margins in 2009 • Growing reserves and resources 13 Highlights from Q4 2009 Q4 ‘09 Highlights • Production increased to 613,858 Au eq. oz. (u
Slide 8: Performance Improvement in Q4 2009
Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 Performance Improvement in Q4 2009 Production up 613,858 Costs down 6% $464 14% $437 537,440 Q3'09 Q4'09 Q3'09 Q4'09 Gold equivalent production (oz.) Cost of Sales ($/oz.)(5) (5) Refer to endnote #5. 15 2009 Full‐Year Results COS Mar
Slide 9: Update on Corporate and Regional Organization
Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 Update on Corporate and Regional Organization • Newly‐strengthened regional organization and management teams • Four F strategic t t i operating ti groups: Corporate Project External Relations Mining Development Development & Corpora
Slide 10: At-Site Growth Opportunities
Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 At‐Site Growth Opportunities Paracatu, Brazil – 3rd Ball Mill • Increasing grinding capacity by installing a 3rd ball mill • Delivery of 15 MW mill expected mid‐2010 • Installation and commissioning in H1 2011 • Capital costs: ~$97 m
Slide 11: Dvoinoye Directly Aligns with Kinross Strategy
Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 DVOINOYE Dvoinoye • Small scale‐open pit mine • Operates 6 months of the year • Potential resource of 3.5 – 3.9 mm tonnes at an average grade of ~17 – 19 g/t Au(10) KUPOL (10) Refer to final slide endnote #10. 21 Dvoinoye Directly Al
Slide 12: Lobo-Marte, Chile
Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 Lobo‐Marte, Chile • Completed pre‐feasibility study La Coipa • Capital estimate: $575 – $650 million • 47,000 47 000 tpd heap leach with SART plant Lobo Marte Lobo‐Marte ~110 km • Operating costs expected to be $11.50‐$12.50 Maricung
Slide 13: Fruta del Norte/Condor
Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 Fruta del Norte/Condor • Exploration to date has located a number of epithermal and FDN porphyry‐style targets which will be the focus of continued regional exploration • FDN NI 43‐101 Technical Report*: Pull-apart Describes major ex
Slide 14: Exploration Success at La Coipa
Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 Exploration Success at La Coipa • In‐pit / near‐pit drilling program increases reserves and extends mine life ESPERANZA – In 2009, 28,400 m drilling adds 503koz net increase in reserves PUREN W PUREN – Added 3 years to mine life (fro
Slide 15: Overview of Underworld
Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 Overview of Underworld Alaska Yukon Territory • Main asset: White Gold project o Early stage property with 121 holes Fort Knox (29,235m) drilled* Dawson City o Located in the Tintina gold belt White Gold Project o 95 km south of Daws
Slide 16: GMP: P / NAV
Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 GMP: P / NAV 1.5 1.4 1.3 1.2 ABX G YRI K Source: GMP research – April 7, 2010 31 GMP: P / 2010 CFPS 14.9 11.8 9.5 8.4 G K YRI ABX Source: GMP research – April 7, 2010 32 16
Slide 17: Key Objectives for 2010
Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 Key Objectives for 2010 Declare increased reserves Complete Lobo‐Marte pre‐feasibility study Final feasibility study for Cerro Casale Close sale of 25% of Cerro Casale Complete acquisition of Underworld Resources
Slide 18: Endnotes
Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 Endnotes (1) Unless otherwise stated, all cash flow and cash flow per share figures in this presentation are adjusted operating cash flow. Adjusted operating cash flow figures are non‐GAAP financial measures which are meant to provid
Slide 19: Fort Knox, USA (100%)
Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 Appendix pp 37 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) 2009 26
Slide 20: Round Mountain, USA (50%)
Kinross Gold Corporation GMP Sales Desk Presentation April 7, 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) 2009 213,916 $517 2008 246,946 $465 2009 Gold Reserves and Resources(
Slide 21: Kupol, Russia (75%)
Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 Kupol, Russia (75%) • 3,000 tpd mill with open‐pit and underground operation • 2009 first full year of production Operating Results Production Cost of Sales (Au eq. oz) ($/oz) 2009 694,130 $257 2008 469,907 $220 2009 Reserves and Res
Slide 22: Crixas, Brazil (50%)
Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 Crixas, Brazil (50%) • JV with AngloGold Ashanti • Underground mine located in the Brazil Operating Results Production Cost of Sales (Au eq. oz) ($/oz) 2009 74,654 $412 2008 87,669 $302 Reserves and Resources(3) Tonnes Grade Ounces (
Slide 23: Maricunga, Chile (100%)
Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 Maricunga, Chile (100%) • Located the highly prospective Maricunga District • Open pit, heap leach operation • Expansion under review Operating Results Production Cost of Sales (Au eq. oz) ($/oz) 2009 233,585 $521 2008 223,341 $566 2