Kinross Gold Corporation · TSX:K
Kinross Gold — Investor Presentation (May 2011)
52 slides from Kinross Gold's investor presentation, May 9, 2011
Slide 1: Delivering Disciplined Growth: Tasiast Investor Tour
DELIVERING DISCIPLINED GROWTH TASIAST INVESTOR TOUR May 9, 2011 1
Slide 2: Cautionary Statement on Forward-Looking Information
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, including any information as to the future performance of Kinross, constitute “forward looking statements” with
Slide 3: Additional Notes on Technical Information Disclosed in This Presentation
ADDITIONAL NOTES ON TECHNICAL INFORMATION DISCLOSED IN THIS PRESENTATION For additional information regarding the exploration, scientific and technical disclosure in this presentation, including applicable assumptions, processes, quality assurance / quality control and geological data, please refer
Slide 4: Tye Burt
TYE BURT President & CEO TYE BURT CHIEF EXECUTIVE OFFICER 4
Slide 5: The Kinross Way: A Strategic Blueprint
THE KINROSS WAY: A STRATEGIC BLUEPRINT CORE VALUES STRATEGY TACTICS PURPOSE External Stakeholder Annuall F A Four-Point P i t 1. Putting People First Environment Objectives Plan: LEADING THE • Key Elements WORLD IN 2. Outstanding GENERATING Corporate Citizenship • Priorities VALUE Long-Term • Metric
Slide 6: Kinross' Evolution
KINROSS’ EVOLUTION KINROSS 2005 2010 2015E Employees 3,000 7,000 10,000 Assets Non-Operated JVs 10 Operating Mines 12 Operating Mines Regions Various Geographies Focus in Core Regions Focus in Core Regions Production (mm oz) 1.6 2.3 4.5 - 4.9(1) Margin (US$/oz)(2,3) $170 $683 ↑ C h fl Cash (US$mm))(
Slide 7: Focus on Portfolio Optimization
FOCUS ON PORTFOLIO OPTIMIZATION DIVESTITURES ACQUISITIONS Blanket Mine (Zimbabwe) Buckhorn Mine (U.S.) Australian interests Kupol Mine (Russia) DRC investment Cerro Casale JV (Chile) New Britannia (Canada) Maricunga JV (Chile) Aquarius (Canada) La Coipa JV (Chile) Hammond Reef (Canada) FDN project (
Slide 8: Production Growth Track Record
PRODUCTION GROWTH TRACK RECORD 4.5 – 4.9 Gold equivalent production (mm oz.) 2.6 – 2.7 2.2 2.3 18 1.8 1.5 1.6 G (1) (1) 2006 2007 2008 2009 2010 2011E 2015E (1) Refer to endnote #1. 8
Slide 9: Delivering Expanding Margins
DELIVERING EXPANDING MARGINS 2005 – Q1 2011: $784 • Average realized gold price: +198% • Kinross’ attributable margin(2,3): +361% $683 +361% butable margin ($ per ounce) $530 $436 $329 $279 Attrib $170 2005 2006 2007 2008 2009 2010 Q1 2011 (2) Refer to endnote #2. (3) Refer to endnote #3. 9
Slide 10: Growing Cash Flow per Share
GROWING CASH FLOW PER SHARE • 5-yr CAGR : 21% $1.36 $1.32 w per Share (US$)(4) $1.01 $0.80 Adjustted Cash Flow $0.56 $0.51 $0.35 2005 2006 2007 2008 2009 2010 Q1 2011 (4) Refer to endnote #4. 10
Slide 11: Increasing Gold Resources
INCREASING GOLD RESOURCES 110 Inferred Resources 140 Measured & Indicated Resources 100 Proven and Probable Reserves 120 T t l resource ounce per 1,000 Total 1 000 shares h 24 0 24.0 90 00 shares 80 100 esources (mm oz.)(5) 16.2 70 17.7 20.7 Gold resource oz per 1,00 7.0 80 60 16.6 11.1 13.7 50 60 G
Slide 12: Improving Grade Profile
IMPROVING GRADE PROFILE Kinross Barrick Goldcorp Newmont 2.5 Mineral Reserrve Grade (g/t) 2.0 1.5 and Probable M 1.0 0.5 Proven a 0.0 2005 2006 2007 2008 2009 2010 Source: Company reports 12
Slide 13: Resource Growth at Tasiast
RESOURCE GROWTH AT TASIAST 8.6 ons)(5,6) 5.1 Ounces (millio 1.9 2.1 1.3 O 14 1.4 9.2 9.3 0.8 7.6 6.5 5.4 37 3.7 Year-end 2008 November 2009 August 2010 September 2010 November 2010 Year-end 2010 Proven and Probable Mineral Reserves Measured & Indicated Mineral Resources (inclusive of 2P reserves) Me
Slide 14: Driving Kinross Strategy
DRIVING KINROSS STRATEGY A. OPTIMIZE CORE OPERATIONS ON ANIZATIO • High-quality, predictable, long-life mines • Drive value from core vs. non-core assets STRATEGY • Tight cost control / strong margins • Operational excellence and CI 1 Growth in 1. • Manageable geographic spread ECTIVE ORGA precious
Slide 15: Dr. Glen Masterman
DR. GLEN MASTERMAN SENIOR VICE-PRESIDENT, EXPLORATION 15
Slide 16: Tasiast Regional Geology
TASIAST REGIONAL GEOLOGY # Producing Mine # Exploration / Development Project 1) Tasiast (Kinross) - –Au Tasiast(Robinson) Au 2) Guelb Moghrein (First Quantum) – Cu/Co/Au 3) Askaf(Sphere Askaf (Xstrata)Minerals) - Au – Iron Ore 4) Guelbel Guelb el Aouj Aouj(Sphere – Iron Ore (Xstrata)Minerals) – Iro
Slide 17: Tasiast, Mauritania
TASIAST, MAURITANIA Greenstone Rocks • Expanded drilling program focused Banded Iron Fm around existing Tasiast mine Intrusives Felsic Volcanics Greenschist • Only 8 km of 80 km strike length tested Tenements Tasiast Shear 2010 Resource Shell 20.0 km 17
Slide 18: Progression of Drilling at Tasiast
PROGRESSION OF DRILLING AT TASIAST January 2011 February 2010 April 2009 Tasiast Shear 2010 Resource Shell 18
Slide 19: Advancing Exploration at Tasiast
ADVANCING EXPLORATION AT TASIAST South North • Accelerated drill program 26 rigs g ((17 core/9 reverse circulation)) • Widened drill spacing to expand coverage • Completed 64,000 metres drilling Q4 2010 and 135,000 metres in Q1 2011 • Defined extended mineralization in Greenschist Zone 700 metres
Slide 20: Tasiast Orebody & Resource Pit
TASIAST OREBODY & RESOURCE PIT 20
Slide 21: The Greenschist Zone
THE GREENSCHIST ZONE LONG-SECTION 21
Slide 22: Continuation of Greenschist Target
CONTINUATION OF GREENSCHIST TARGET West East Wedging and directional drilling to access intersect target at depth 22
Slide 23: Geologic Model
GEOLOGIC MODEL PROJECT LAYOUT SCHEMATIC X-SECTION PIMENT SUD PIMENT SUD NORD PIMENT WEST BRANCH CENTRAL FOOTWALL ZONE GREENSCHIST ZONE PIMENT NORD 23
Slide 24: Greenschist Target: Section 70846
GREENSCHIST TARGET: SECTION 70846 From To Au (g/t) 696 697 5.31 697 698 1.54 698 699 2.33 699 700 3.11 700 701 13.8 701 702 2.35 702 703 7.62 703 704 1.52 704 705 6.05 6124ARC: 19m @ 1.8 g/t* 705 706 5.29 706 707 3.96 Hole 5034RD: 707 708 4.56 Assays Pending 708 709 2.97 (5105RD) 7m @ 4.6 g/t 709 71
Slide 25: Banded Iron Formation
BANDED IRON FORMATION BANDED IRON FORMATION • Thinly bedded quartz-magnetite+/-grunerite • Intercalated with garnetiferous greenschist • Gold grades 0.5-1.0 g/t Au where mineralized Po-cb replacement of magnetite bands BANDED IRON FORMATION FELSIC UNIT • Pale gray, highly sheared, pyritic • Can ha
Slide 26: GST Greenschist Unit
GST 1 GREENSCHIST UNIT • Green, with large pink garnets • Pyrite usually > pyrrhotite • Actinolite + garnet > biotite • Can have calcite-epidote-magnetite • Weak / no gold • Mafic volcaniclastic? 26
Slide 27: GST Greenschist Unit
GST 2 GREENSCHIST UNIT 2 • Green - black, can have fine garnets • Transitional between GST 1 & BST • Biotite > actinolite + garnet • Often mineralized, but generally lower grades than BST • Usually defines >0.5 0.5 g/t envelope • Veins are generally parallel to foliation 27
Slide 28: BST Greenschist Unit
BST GREENSCHIST UNIT • Black, coarse Bi on foliation, Plag feldspar • No actinolite or garnet • Mafic volcanic unit? • Pyrrhotite >> pyrite. Sulfides generally 2 – 4% • Magnetic • Always mineralized, loosely defines >2 g/t contour • Veins generally cut foliation at 10 – 30 deg • Veins often contain
Slide 29: Cross Section 71411N
CROSS SECTION 71411N +100 m • BST correlates strongly g y with: 0m ‐100 m Dolerite dike ‐200 m Major shear Volcaniclastic Banded Iron Formation Felsic Volcanic Greenschist ‐300 m GST 1 GST 2 BST 100 Meters ‐400 m 47500mE 47200mE 46900mE ‐500 m 29
Slide 30: Cross Section 71411N
CROSS SECTION 71411N +100 m • BST correlates strongly g y with: 0m 1. High grade gold (> 2 g/t) ‐100 m Dolerite dike ‐200 m Major shear Volcaniclastic Banded Iron Formation Felsic Volcanic Greenschist ‐300 m GST 1 ASSAYS GST 2 PENDING BST GOLD g/t 100 Meters >2 ‐400 m > 0.5 47500mE 47200mE 46900mE ‐
Slide 31: Cross Section 71411N
CROSS SECTION 71411N +100 m • BST correlates strongly g y with: 0m 1. High grade gold (> 2 g/t) 2. High g ‐100 m concentration of sulfides (> 2%) Dolerite dike ‐200 m Major shear Volcaniclastic Banded Iron Formation Felsic Volcanic Greenschist ‐300 m GST 1 GST 2 BST TOTAL SULFIDE > 2% 100 Meters ‐40
Slide 32: Cross Section 71411N
CROSS SECTION 71411N +100 m • BST correlates strongly g y with: 0m 1. High grade gold (> 2 g/t) 2. High g ‐100 m concentration of sulfides (> 2%) Dolerite dike ‐200 m 3. High vein Major shear Volcaniclastic d densities iti ((>4%) 4%) Banded Iron Formation Felsic Volcanic Greenschist ‐300 m GST 1 GST
Slide 33: GST-PIM Long Section – Deep Drill Targeting
GST-PIM LONG SECTION – DEEP DRILL TARGETING WB1 WB2 PSS SS PSN PC C YE2010 Pit Shell Fold Hinge Line PIM Plunge-Hinge Holes GST Down-dip Current GST Extension Repetition(?) GST Deep Plunge Planned hole Assays pending 200 m 33
Slide 34: District Exploration
DISTRICT EXPLORATION C23 • Prolongation / Piment Deeper drilling to extend mineralization and target GST-style potential • C69 / Charlize C67 34m at 1.71g/t Accelerate drilling on Charlize C target 4m at 11.10g/t Aoeouat 19m at 1.19g/t 15m at 3.72g/t and assess opportunity for resource 12m at 2.
Slide 35: Tasiast Sud (Charlize & TSud)
TASIAST SUD (CHARLIZE & TSUD) • Significant RC results: Fe formation High grade 18m @ 1.37 g/t 4m @ 2.88 g/t 18m @ 0.82 g/t 9m @ 1.48 g/t Fe formation High grade 100m 15m @ 0.99 g/t High grade 35
Slide 36: C67 Prospect – Recent Results
C67 PROSPECT – RECENT RESULTS • BIF-style oxide gold target encountered in recent shallow drilling • Continuation to the North of known mineralisation at C67 • P Prolongation l ti North N th extension intersected along regional infill 8m @ 0.75g/t 8m @ 2.21g/t 2m @ 0.99g/t 1m @ 9.33g/t lines 11m @ 0
Slide 37: Other Long-Term Initiatives
OTHER LONG-TERM INITIATIVES REGIONAL GEOCHEMISTRY • Reassess effectiveness of original soil geochem surveys Regolith map y soil and drill pulps Reanalyze p p byy multi- element ICP • Lithogeochemical mapping – fingerprint and target BST along the belt • Alteration zonation (e.g., K, Na, Ca) • Fi
Slide 38: Advancing Tasiast
ADVANCING TASIAST • 26 drills currently on site 17 Diamond, Diamond 9 RC • New sample prep facility in Nouakchott • Construction of site Super Lab well advanced 2011 EXPLORATION PROGRAM • Spending $55 million • Engineering drilling to support feasibility study • 130,000 m drilling at West Branch f
Slide 39: Joe Wahba
JOE WAHBA PROJECT DIRECTOR, TASIAST 39
Slide 40: Tasiast Scoping Study
TASIAST SCOPING STUDY • Scoping study complete • New N processing i plant l t with ith expected t d 60,000 60 000 ttpd d throughput – total 68,000 tpd • 16-year mine life • Expected avg. annual production of 1.5 mm oz (first 8 full yrs) o Expected avg. grade of 2 g/t o Expected avg. recoveries of 93
Slide 41: Tasiast Plant Pictorial Flowsheet
TASIAST PLANT PICTORAL FLOWSHEET ORE FROM OPEN PIT PRELEACH CRUSHING SAG & BALL GRINDING THICKENING LIME CYANIDE CARBON IN LEACH (CIL) TAILINGS CYANIDE TAILINGS THICKENING DESTRUCTION DAM CARBON ACID WASH & GOLD ELECTROWINNING SMELTING DORE41 ELUTION
Slide 42: Tasiast, Mauritania
TASIAST, MAURITANIA • Procurements for expanded mine fleet made Shovels and drills now out to tender Purchased generators with 16 MW of capacity • Retained international EPCM joint-venture firm for feasibility study Basic engineering commencing Q2 2011 • Appointed RVP, West Africa and Tasiast
Slide 43: Feasibility Study: Third Parties
FEASIBILITY STUDY: THIRD PARTIES THIRD PARTY FEASIBILITY STUDY & DESIGN Hatch / Saipem JV TAILINGS GS DAM & PLANT GEOTECH G O C Klohn o C Crippen ppe Berger e ge ENVIRONMENTAL ASSESSMENT Scott Wilson (UK office) PIT DESIGN & SCHEDULING AMC Consultants DRILLING & BLASTING DESIGN Blast Dynamics (Canad
Slide 44: Equipment Ordered
EQUIPMENT ORDERED • Major equipment for the expansion ordered: PROCESSING MINING (1) 60 x 89 in Metso primary crusher (17) Cat 793D haul trucks (2) MP-1000 cone crushers (2) Bucyrus RH340 shovels (1) FLS 40 x 25’ SAG mill, 26 MW (4) Cat D10 track dozers (2) FLS 25 x 46’ Ball mills, 20 MW (2) Cat 854
Slide 45: Expansion Schedule
EXPANSION SCHEDULE KEY TASK 2011 2012 2013 2014 FEASIBILITY ENGINEERING PERMITTING RAMP-UP OF MINING RATE PROCUREMENT CONSTRUCTION COMMISSIONING PRODUCTION RAMP RAMP-UP UP Conceptual timeline based on current Company estimates. 45
Slide 46: Feasibility Study Progress
FEASIBILITY STUDY PROGRESS • Feasibility study 62% complete On schedule for completion mid-2011 • Basic engineering initiated: Airport Access road Camp expansion 46
Slide 47: Sea Water and 90 Micron Grind
SEA WATER AND 90 MICRON GRIND • Ammtec testing completed late 2010 Selected grind size (under review) 47
Slide 48: Power
POWER • Base load: 100 MW • M i Maximum continuous ti lload: d 135 MW • Peak load: 150 MW PHASE 1 PHASE 2 FUEL TYPE Heavy Fuel Oil Heavy Fuel Oil SIZE ~16 MW ~150 MW UNIT SIZE ~4 MW ~16 MW READY TO WORK December 2012 November 2013 48
Slide 49: Water
WATER • Seawater supply • Water extraction site identified 150 km northeast of Tasiast along coast • Initial pump testing recently completed and recharge results encouraging • Hydrogeologic modeling initiated • 2nd phase drill program to confirm feasibility of site identified • Review 49
Slide 50: Possible Rail Line Location
POSSIBLE RAIL LINE LOCATION E i ti R Existing Railil Li Line K Kupol l Rail Extension 84 km Rail Extension 50
Slide 51: Endnotes
ENDNOTES 1) For more information regarding Kinross production and cost forecast for 2011 and production target for 2015, please refer to the press release dated May 3, 2011, available on our website at www.kinross.com. 2) Cost of sales per ounce is defined as cost of sales as per the financial state
Slide 52: Kinross Gold Corporation
KINROSS GOLD CORPORATION 25 YORK STREET, 17TH FLOOR TORONTO, ON M5J 2V5 WWW.KINROSS.COM 52