Kinross Gold Corporation · TSX:K
Kinross Gold — 2012 Denver Gold Forum
30 slides from Kinross Gold's conference presentation, Sep 11, 2012
Slide 1: Kinross Gold Corporation 2012 Denver Gold Forum
September 9-12 KINROSS GOLD CORPORATION 2012 Denver Gold Forum 11 www.kinross.com
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: Guiding Principles for the Way Forward
GUIDING PRINCIPLES FOR THE WAY FORWARD • Manage for value • Focus on the fundamentals • Exercise disciplined project development 33 www.kinross.com
Slide 4: Operating Mines in Core Regions
FOUNDATION OF OUR BUSINESS OPERATING MINES IN 4 CORE REGIONS • Diversified portfolio of assets located in some of the world’s best gold districts RUSSIA Kupol Fort Knox Kettle River - Buckhorn Round Mountain NORTH AMERICA Tasiast Chirano WEST AFRICA Paracatu La Coipa Maricunga 2012E SOUTH AMERICA 2.
Slide 5: West Africa
WEST • Highly prospective district – but not without challenges AFRICA • Strong focus on increasing efficiency and performance in the region 55 www.kinross.com
Slide 6: South America
• Multi-year Paracatu expansion projects now largely complete, allowing for SOUTH renewed focus on operating efficiencies AMERICA • Opportunities for operational improvements exist throughout the region 66 www.kinross.com
Slide 7: North America
NORTH • Strong, stable open-pit and underground operations AMERICA • Regional production expected to be at the high-end of 2012 guidance range 77 www.kinross.com
Slide 8: Russia
• All performance metrics remain strong at Kupol RUSSIA • Model for successfully operating in a remote region 88 www.kinross.com
Slide 9: 2012 Production & Cost Outlook
FOUNDATION OF OUR BUSINESS 2012 PRODUCTION & COST OUTLOOK(1) • Updated to reflect the sale of Crixás, which was completed June 28, 2012: Gold Production(2) % of Total Production cost of Sales(3) Region (000 oz. Au eq.) Production ($/oz. Au eq.) South America 890 – 930 36% $830– $870 North America 64
Slide 10: Maintaining a Strong Balance Sheet
UNDERPINNING OUR STRATEGY MAINTAINING A STRONG BALANCE SHEET STRONG LIQUIDITY POSITION • Investment grade credit ratings from all three major rating agencies • Recently arranged a new US$1.0 billion 3-year term loan • Increased existing US$1.2 billion credit facility to US$1.5 billion DISCIPLINED AP
Slide 11: Portfolio of Development Projects
FOUNDATION FOR FUTURE GROWTH PORTFOLIO OF DEVELOPMENT PROJECTS • Optimized project sequencing, with Dvoinoye and Tasiast as key development priorities Dvoinoye Tasiast Fruta del Norte Lobo-Marte GLOBAL PORTFOLIO Operating mine Development project 1111 www.kinross.com
Slide 12: Dvoinoye Continues on Schedule
RUSSIA DVOINOYE CONTINUES ON SCHEDULE • Underground development continues ahead of plan At end of Q2, 1,400 m completed 3,700 m completed since development began • Surface infrastructure construction 22% complete • Temporary camp complete; foundations for permanent camp near completion • 51 km o
Slide 13: Update on Tasiast Optimization
MAURITANIA UPDATE ON TASIAST OPTIMIZATION • Conducting a pre-feasibility study on a mid-size CIL mill in the 30k tpd range with potential for further expansion Expected to be complete Q1 2013 • Evaluation of mine planning and phasing options for a 60k tpd mill option continues • Heap leach testing
Slide 14: Other Development Projects
SOUTH AMERICA OTHER DEVELOPMENT PROJECTS FRUTA DEL NORTE • Negotiations with the Ecuadorean government on an enhanced economic package are progressing • Continued spending will depend on successfully concluding exploitation and investment protection agreements • EIA for construction and operation of
Slide 15: The Way Forward
THE WAY FORWARD • Process to ensure we are applying disciplined and rigorous analysis to all aspects of our business decisions in today’s global industry environment Capital & Company- project wide cost reduction The Way optimization process initiative Forward Launched January Launched August Launch
Slide 16: Renewed Focus on Optimizing Our Assets
THE WAY FORWARD RENEWED FOCUS ON OPTIMIZING OUR ASSETS • Focus on 7 key elements: • Prioritizing cash flow 1. MINE PLAN OPTIMIZATION • Optimizing pushback widths, mine sequencing • Exploiting zero / low-capex productivity improvements 2. CONTINUOUS IMPROVEMENT • Reducing unit consumption 3. COST MAN
Slide 17: Sources of Potential Value Opportunities
THE WAY FORWARD SOURCES OF POTENTIAL VALUE OPPORTUNITIES Potential impact High Medium Low NORTH SOUTH WEST RUSSIA AMERICA AMERICA AFRICA 1. Mine plan optimization 2. Continuous improvement 3. Cost management & labour productivity 4. Capital efficiency 5. Supply chain management 6. Energy management
Slide 18: Kinross: Foundation for the Future
KINROSS: FOUNDATION FOR THE FUTURE • Significant reserve & resource base • Four operating regions generating robust cash flow • Strong balance sheet & liquidity position • Focused plan for reducing costs, improving margins & increasing free cash flow • Portfolio of development projects and a discipl
Slide 19: Appendix
APPENDIX 1919 www.kinross.com
Slide 20: Fort Knox, Alaska (100%)
UNITED STATES FORT KNOX, ALASKA (100%) • Production commenced in 1997 • Began construction of a new heap leach facility to extend mine life in 2008 • Heap leach production commenced in late 2009 OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) OF SALES ($/oz.) H1 2012 133,668 $805 FY 2011 2
Slide 21: Round Mountain (50%)
UNITED STATES ROUND MOUNTAIN (50%) • Kinross-operated JV with Barrick • Bulk tonnage open-pit operation • Commercial production began in 1977 OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) OF SALES ($/oz.) H1 2012 97,905 $749 FY 2011 187,444 $697 2011 GOLD RESERVES AND RESOURCES(4) TONNES
Slide 22: Kettle River – Buckhorn (100%)
UNITED STATES KETTLE RIVER – BUCKHORN (100%) • Entered production in Q4/08 • Small foot-print, underground mine • Near-mine exploration targets OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) OF SALES ($/oz.) H1 2012 78,603 $496 FY 2011 175,292 $420 2011 GOLD RESERVES AND RESOURCES(4) TONN
Slide 23: Kupol (100%)
RUSSIA KUPOL (100%) • Completed transaction increasing ownership to 100% from 75% on April 27, 2011 • High-grade underground mine with 3,000 tpd mill • Produced its 2 millionth ounce of gold in 2011 OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) OF SALES ($/oz.) H1 2012 276,184 $474 FY 20
Slide 24: Paracatu (100%)
BRAZIL PARACATU (100%) • Plant 2 expansions now largely complete: 3rd ball mill commissioned in Q2 2011 4th ball mill is in final commissioning and is expected to be fully operational by the end of Q3 2012 OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) OF SALES ($/oz.) H1 2012 223,037
Slide 25: La Coipa (100%)
CHILE LA COIPA (100%) • Gold/silver mine in the Maricunga district • Comprehensive exploration program • Recent discovery at Pompeya (75% Kinross), located 3 km from mill OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) OF SALES ($/oz.) H1 2012 73,853 $1,083 FY 2011 178,287 $762 2011 GOLD R
Slide 26: Maricunga (100%)
CHILE MARICUNGA (100%) • Located in the highly prospective Maricunga District • High-altitude heap leach operation • Construction of new SART plant completed in Q2 2012 and is now commissioning OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) OF SALES ($/oz.) H1 2012 124,830 $676 FY 2011 23
Slide 27: Tasiast (100%)
MAURITANIA TASIAST (100%) • Open-pit mine ~300 km north of the city of Nouakchott • Remote, flat, sparsely populated desert • First expansion phase complete: new ADR plant & dump leach facility OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) OF SALES ($/oz.) H1 2012 87,441 $923 FY 2011 200
Slide 28: Chirano (90%)
GHANA CHIRANO (90%) • 90% owned by Kinross; Government of Ghana holds a 10% carried interest • 9 open-pits and 2 recently-discovered underground deposits • Achieved first gold pour in 2005 OPERATING RESULTS(2) PRODUCTION PRODUCTION COST (Au eq. oz.) OF SALES ($/oz.) H1 2012 125,609 $728 FY 2011 235,
Slide 29: Endnotes
ENDNOTES 1) For more information regarding Kinross’ production and cost outlook for 2012, please refer to the news release dated August 8, 2012, available on our website at www.kinross.com. 2) Unless otherwise noted, gold equivalent production, gold equivalent ounces sold and production cost of sale
Slide 30: Kinross Gold Corporation
KINROSS GOLD CORPORATION 25 York Street, 17th Floor │Toronto, ON │ M5J 2V5 www.kinross.com 3030 www.kinross.com