Kinross Gold Corporation · TSX:K
Kinross Gold — Investor Presentation (May 2006)
49 slides from Kinross Gold's investor presentation, May 2006
Slide 1: Kinross Gold Corporation Corporate Presentation May 2006
Kinross Gold Corporation Corporate Presentation May 2006 1
Slide 2: Tye Burt, President and CEO
| KINROSS | Tye Burt President and CEO
Slide 3: Forward-looking statements
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 results, performance or achieve
Slide 4: Global Position
Global Position Kubaka we Fort Knox Musselwhite @ Porcupine Crixas wa Coipa Paracatu Refugio
Slide 5: Kinross: A Major Gold Producer
Kinross: A Major Gold Producer 2006 estimated: • Gold production – 1.44 million ounces • Cost of sales – est. $305 – $315 per ounce ~4,000 employees in 5 countries Straight-forward balance sheet • Simple debt structure • No gold hedging Continuing reserve growth • 24.7 million ounces at Dec.
Slide 6: Prospective & Stable Geography
Prospective & Stable Geography Geographical breakdown of 2005 reserves 9% 64% 17% 10% US Canada Brazil Chile 24.7 million ounces of gold at Dec. 31, 2005, an increase of 27% over 2004 Reserves located in politically stable countries 6
Slide 7: Secure Production Base
Secure Production Base Geographical breakdown of 2005 production 17% 17% 47% 10% 9% US Canada Brazil Chile Other 64% of production is North American based 60% of costs are U.S. dollar-based Large U.S. base offers security, lowers foreign exchange risk 7
Slide 8: Four-Point Plan
Four-Point Plan Objective: Enhance net asset value and cash flow per share GROWTH FROM BUILDING BLOCKS BEST PEOPLE NEW OPPORTUNITIES THE CORE FOR THE FUTURE Regionally streamlined Strengthened management Crown Resources Paracatu expansion approach team & Board transaction Round Mountain Round Mounta
Slide 9: Best People
Best People Tim Baker Named EVP and COO 30-year mining operations career Key posts in Canada, Latin America, Africa and the United States Presently in Chile; to be based in Toronto Scott Caldwell Will head new private affiliate Early-stage energy-related mining opportunities in the Unite
Slide 10: Kinross 2005 Highlights
Kinross 2005 Highlights 10 10
Slide 11: Achievements in 2005
Achievements in 2005 Strengthened management team New merger accounting methodology, financials up-to-date Strong operating fundamentals Kinross is a major gold producer best positioned for success 11 11
Slide 12: Achievements in 2005 Part II
Achievements in 2005 Part II Clear four-point strategic plan Dramatic increase in gold reserves Growth profile in production and cash flow through 2009 Share price up over 2x, market cap near C$5 billion Kinross is a major gold producer best positioned for success 12 12
Slide 13: 2005 Highlights
2005 Highlights Produced 1.6 million gold equivalent ounces at cost of sales of $275 per ounce Revenues of $725.5 million Cash flow from operating activities of $133.7 million Net loss of $216.0 million non cash impairment and future reclamation Gold reserves increased 27% to 24.7 million
Slide 14: Continued Reserve Growth
Continued Reserve Growth Gold Reserves and Resources 35,000 Measured and Indicated 30,000 Proven and Probable 25,000 '000 ounces gold 20,000 15,000 10,000 5,000 - 2001 2002 2003 2004 2005 $300/$325 $300/$325 $325/$350 $350/$400 $400/$450 Reserves at Dec. 31, 2004 19.4 Less: Assets sold/reclassified
Slide 15: First Quarter 2006
First Quarter 2006 Gold equivalent production was 362,395 ounces On-target for estimated 1.44 million gold equivalent ounces Revenue of $198.3 million Average realized price: $532 per ounce of gold sold Cost of sales of $327 per ounce 15 15
Slide 16: First Quarter 2006 (cont…)
First Quarter 2006 (cont…) Net earnings of $8.9 million, or $0.03 per share Cash flow from operating activities of $20.1 million Capital expenditures of $34.2 million Cash position of $84.1 million; debt of $158.7 million Exploration spending at $7.5 million 16 16
Slide 17: Cash Margin – Senior Producers
Cash Margin – Senior Producers 250 Barrick 200 New mont US$/ounce Kinross 150 100 50 2000 2001 2002 2003 2004 2005 Cash Margin Per Ounce Produced 2000 2001 2002 2003 2004 2005 CAGR Barrick 191 164 165 191 179 214 2% Newmont 111 87 124 163 181 182 10% Kinross 96 103 105 136 158 170 12% Source: Compan
Slide 18: Refugio, Chile (50%, operator)
Refugio, Chile (50%, operator) 18
Slide 19: Refugio, Chile
Refugio, Chile Ownership: 50% (Kinross operated) Reserves: 2,158,000 ozs (as at Dec. 31, 2005) Highlights: Restart is complete, producing as planned Drilling commenced on nearby Pancho deposit 2005 Operating Results Production: 30,600 gold eq. ozs Cost of sales: $ 314 / oz 19
Slide 20: Exploration Map
Exploration Map Compania Minera Maricunga Claims 130 claims for 650 hectares Pancho Deposit Verde Volcanic and REFUGIO Intrusive Complex Refugio Volcanics (undivided) Pancho Diorite & Volcanics Laguna Tuff Mesozoic Rocks Leach Pad Process Chile Plant Verde West East & Mines Buffer Zone 0 2km Grade (
Slide 21: Round Mountain, USA (50%, operator)
Round Mountain, USA (50%, operator) 21
Slide 22: Round Mountain, USA
Round Mountain, USA Ownership: 50% (Kinross operated) Reserves: 2,338,000 (as at Dec. 31, 2005) Highlights: Pre-stripping commenced for a pit layback, ore from layback expected to contribute in late 2006. Exploration drilling to begin on underground in Q2/06. 2005 Operating Results Production: 373,9
Slide 23: District/Exploration Map
District/Exploration Map Nevada Key 2006 Exploration Targets N Round Reno Mountain Rd Mtn Underground Drifting and drilling Moores Creek Las Caldera Vegas Rd Mtn – Gold Hill Trend Jefferson Geophysical survey and drilling Caldera GOLD HILL SVCO Area of Mutual Interest Gold Hill Jefferson ROUND
Slide 24: Paracatu, Brazil (100%)
Paracatu, Brazil (100%) ZZ i i | \ ev
Slide 25: Paracatu, Brazil
Paracatu, Brazil Ownership: 100% Kinross Reserves: 15,210,000 ozs gold (as at Dec. 31, 2005) Highlights: Expansion study to be completed in Q2/06, will contribute 2008 and beyond. 2005 Operating Results Production: 181,000 gold eq. ozs Cost of sales: $ 281 / oz 25
Slide 26: Paracatu – A World-class Mine
Paracatu – A World-class Mine 35 Reserves (millions of ounces) 30 25 20 15 10 5 0 Cortez Veladero Goldstrike Laronde Lagunas Norte Paracatu Yanacocha Largest Operating Mines in North and South America 26
Slide 27: Paracatu Engineering Study
Paracatu Engineering Study Feasibility study being finalized and optimized Adding new 38-foot SAG mill Building a world-class operation Throughput and production rising Cash cost profile improving 27 27
Slide 28: Brasilia Belt- Aeromagnetic Image
Brasilia Belt- Aeromagnetic Image Paracatu Formation Vazante Formation Thrust Front 8 MAIN MAGNETIC TRENDS SELECTED NS mag ON THE BRASILIA anomaly Pit BELT FOR FOLLOW outline 2005 Drill UP Program SW-NE Mag Anomaly reflects Ore Boundary mineralization SPI image Depth of mag source Total Magnetic Fie
Slide 29: Capital Projects Drive New Growth
Capital Projects Drive New Growth Contributes First Full Year 1. Puren Q3 2006 2007 2. Round Mtn. Layback Q4 2006 2007 3. Buckhorn Q2 2007 2008 4. Paracatu Exp. Q2 2008 2009 29
Slide 30: Kinross Driving Forward
Kinross Driving Forward Production rising from approximately 1.44 million ounces to 1.7-1.75 million ounces in 2009 1.8 Expected Gold equivalent production range of 1.7 production (millions of ounces) 1.6 1.5 1.4 1.3 1.2 2006E 2007E 2008E 2009E 2006 - 2009 Forecast 30
Slide 31: Four Exploration Focus Regions
Four Exploration Focus Regions Alaska, B.C., Nevada, Mexico Far NE Russia Chile Brazil Existing Assets Exploration Targets 31
Slide 32: Positioned For Success
Positioned For Success Fourth largest primary gold producer in North America, eighth largest in the world Strong production and growth profile through 2009 Nine mines globally, focused in North and South America “Clear decks” for the future Exploration expertise Operating in stable and p
Slide 33: Share Price (US$)
Share Price (US$) 4 5 6 7 8 9 10 11 12 13 14 5/3/2005 6/3/2005 7/3/2005 8/3/2005 Up 1 9/3/2005 30 % 10/3/2005 eya r 11/3/2005 -ov e 12/3/2005 r-y e a r 1/3/2006 2/3/2006 Kinross Generates Value 3/3/2006 Kinross shares have more than doubled in the past year 4/3/2006 33
Slide 34: Relative Performance
Relative Performance 0.50 1.00 1.50 2.00 2.50 May-05 Jun-05 Gold Price Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Major Gold Producers (Average) Kinross Outperforms Feb-06 Mar-06 Kinross Apr-06 May-06 34
Slide 35: Appendix
Appendix 35
Slide 36: 2005 Production Statistics
2005 Production Statistics Reserves Cost of Ow nership @ 12/31/05 Production sales/oz (millio ns) Fort Knox 100% 1,953 329,300 $ 275 Round Mountain 50% 2,338 373,900 $ 255 La Coipa 50% 397 126,000 $ 346 Crixas 50% 379 96,200 $ 151 Paracatu 100% 15,210 181,000 $ 281 Musselw hite 32% 639 79,900 $ 330
Slide 37: Musselwhite, Canada
Musselwhite, Canada (32%, Goldcorp operated) 37 37
Slide 38: Musselwhite, Canada
Musselwhite, Canada Ownership: 100% Kinross Reserves: 1,953,000 ozs (as at Dec. 31, 2005) 2005 Operating Results Production: 329,300 gold eq.ozs Cost of sales: $ 275 / oz 38
Slide 39: Fort Knox, USA (100%)
Fort Knox, USA (100%) 39 39
Slide 40: Fort Knox, USA
Fort Knox, USA Ownership: 100% Kinross Reserves: 1,953,000 ozs (as at Dec. 31, 2005) Highlights: Heap leach scenario being evaluated 2005 Operating Results Production: 329,300 gold eq.ozs Cost of sales: $ 275 / oz 40
Slide 41: Porcupine JV, Canada
Porcupine JV, Canada (49%, Goldcorp operated) 41 41
Slide 42: Porcupine JV, Canada
Porcupine JV, Canada Ownership: 49% Kinross Reserves: 1,653,000 (as at Dec. 31, 2005) Highlights: Pamour pit now contributing to production 2005 Operating Results Production: 184,000 gold eq.ozs Cost of sales: $ 282 / oz 42
Slide 43: La Coipa, Chile
La Coipa, Chile (50%, Goldcorp operated) 43 43
Slide 44: La Coipa, Chile
La Coipa, Chile Ownership: 50% Kinross Reserves: 397,000 ozs Au (as at Dec. 31, 2005) 24,389,000 ozs Ag (as at Dec. 31, 2005) Highlights: Puren deposit pre-strip underway for contribution in Q3/06 2005 Operating Results Production: 126,000 gold eq.ozs Cost of sales: $ 346 / oz 44
Slide 45: Crixas, Brazil
Crixas, Brazil (50%, AngloGold operated) 45 45
Slide 46: Crixas, Brazil
Crixas, Brazil Ownership: 50% Kinross Reserves: 379,000 ozs Au (as at Dec. 31, 2005) 2005 Operating Results Production: 96,200 gold eq ozs Cost of sales: $ 151 / oz 46
Slide 47: Kettle River, USA (100%)
Kettle River, USA (100%) 47 47
Slide 48: Kettle River, USA
Kettle River, USA Ownership: 100% Kinross Highlights: Buckhorn Mountain and Crown transaction: - Agreement extended to December 31, 2006 - Crown shareholders will receive 0.32 of a Kinross share - Permitting in progress 2005 Operating Results Production: 68,100 gold eq ozs Cost of sales: $ 240 / oz
Slide 49: Shares outstanding and contact details
Shares outstanding: 345.9 million Market cap.: US$4.2 billion (at May 8, 2006) KGC: NYSE (Common shares) K: TSX (Common shares) K.U: TSX (US dollar trading symbol) K.WT: TSX (Warrants expiring 05/12/07) Kinross Gold Corporation 40 King Street West, 52nd Floor, Scotia Plaza, Toronto, ON M5H 3Y2 Tel: