Kinross Gold Corporation · TSX:K
Kinross Gold — Investor Presentation (August 2009)
22 slides from Kinross Gold's investor presentation, Aug 19, 2009
Slide 1: Delivering Disciplined Growth
Kinross Gold Corporation UBS Sales Desk Presentation August 19, 2009 Delivering Disciplined Growth UBS Sales Desk Presentation - August 19, 2009 Cautionary statement on forward-looking information All statements, other than statements of historical fact, contained or incorporated by reference in thi
Slide 2: Why Kinross?
Kinross Gold Corporation UBS Sales Desk Presentation August 19, 2009 Why Kinross? 1. Growing margins, growing cash flow Kinross today: • Portfolio of 8 operating mines o Production rising, costs declining o Higher margins, CFPS(1): 5 yr CAGR: 20% • Policy of no gold-hedging o Strong balance sheet •
Slide 3: Increasing Demand for Gold
Kinross Gold Corporation UBS Sales Desk Presentation August 19, 2009 Increasing Demand for Gold $110 $1,000 Investment / Other $100 Fabrication $900 Gold price (US$/oz) $90 $800 Tottal Gold Demand (US$ billions) $80 $700 Gold Price (US$/oz) $70 $600 $60 $500 $50 $400 $40 $300 $30 $200 $20 $10 $100 $
Slide 4: World Gold Reserves and Resources
Kinross Gold Corporation UBS Sales Desk Presentation August 19, 2009 World Gold Reserves and Resources Total Reserves & Resources Top Countries (mm ozs) ( mm ozs) Total Reserves Country % Peru Papua New & Resources Guinea Uzbekistan B il Brazil 1 South Africa 1. 997 29 7% 29.7% Ghana South Africa 2.
Slide 5: Growing margins, growing cash flow
Kinross Gold Corporation UBS Sales Desk Presentation August 19, 2009 Growing G o g margins… a g s growing go g cas cash flow o • 47% production growth: 2007 to 2009e • Y-o-Y Costs declined 7% in Q2’09* • Margins up 350% since 2002 • CFPS growth – 20% 5-yr CAGR** *Versus Q2’08 **Based on full year-en
Slide 6: Production guidance for 2009: up 30% over 2008
Kinross Gold Corporation UBS Sales Desk Presentation August 19, 2009 Production guidance for 2009: up 30% over 2008 Production Cost of Number Estimated Country Ounces (000s) % of 2009e total Sales / oz. of Mines Mine Life Chil Chile 450 – 500 20% $425 – 460 2 16 16+ Brazil 480 – 550 22% $525 – 570 2
Slide 7: Kinross margins expanding
Kinross Gold Corporation UBS Sales Desk Presentation August 19, 2009 Kinross margins expanding • Average realized gold price is up 199% • Kinross’ cost of sales margin(6) up 350% $478 $481 $436 Up Cost off Sales Margin ($/oz) 350% $329 $279 $161 $170 $135 $107 FY'02 FY'03 FY'04 FY'05 FY'06 FY'07 FY'
Slide 8: Strong financial & operating results
Kinross Gold Corporation UBS Sales Desk Presentation August 19, 2009 Strong financial & operating results • Record production & revenue in 2008 • Q2’09 CFPS(5): $0.33 (up 83% Y-o-Y) • Growing reserves and resources (5) Please refer to endnote #5. 15 Q2 2009 Results Realized COS Margin(6) % (in milli
Slide 9: Growing cash flow per share
Kinross Gold Corporation UBS Sales Desk Presentation August 19, 2009 Growing cash flow per share Cash flow (before changes in working capital)(1,5) H1’09 vs. H1’08(5): • Gold price -1% $1.01 • Cash flow per share +88% $0.80 $0.64 $0.56 $0.51 $0.45 $0.41 $0.34 FY'03 FY'04 FY'05 FY'06 FY'07 FY'08 H1'0
Slide 10: Balanced portfolio
Kinross Gold Corporation UBS Sales Desk Presentation August 19, 2009 Balanced portfolio • Reserves and resources are well diversified geographically • Expected mine life 20+ years, all in core regions 2P Reserves(7,8) M&I Resources(7,8) Inferred Resources(7,8,9) 45.6 mm oz. 19.1 mm oz. 21.3 mm oz. R
Slide 11: Lobo-Marte
Kinross Gold Corporation UBS Sales Desk Presentation August 19, 2009 Lobo-Marte La Coipa (2P: 1.06 g/t) • Located in Chile, near current Kinross Lobo-Marte ~110 km operations (M&I: 1.72 g/t) • Development stage asset with large gold Maricunga (2P: 0 0.72 72 g/t) resources Cerro Casale • Infrastructu
Slide 12: Fruta del Norte / Condor
Kinross Gold Corporation UBS Sales Desk Presentation August 19, 2009 Fruta del Norte Quito • Project parameters under consideration(11): o Underground mine o 3,000 tpd milling capacity • Recent milestones: o Ecuador Mining Law approved (January ‘09) o Environmental Management Plan completed, submitt
Slide 13: Cerro Casale
Kinross Gold Corporation UBS Sales Desk Presentation August 19, 2009 Cerro Casale La Coipa (2P: 1.06 g/t) • Project parameters under consideration(11): o Open-pit mine with 18 yr. mine life Lobo-Marte ~110 km (M&I: 1.72 g/t) o 54 Mt/a ore processing plant and a 37 Mt/a heap leach Maricunga o Avg. g
Slide 14: Project pipeline
Kinross Gold Corporation UBS Sales Desk Presentation August 19, 2009 Project pipeline A. Near completion 2009 2010 2011 2012 2013+ Paracatu Expansion Production Fort Knox Expansion Production B. Expansions Maricunga Engineering Construction Production Paracatu Phase 3 Engineering Construction Produc
Slide 15: UBS: P / NAV
Kinross Gold Corporation UBS Sales Desk Presentation August 19, 2009 UBS: P / NAV 1.59 1.56 1.34 1.26 1.26 1.12 GG AEM AUY NEM KGC ABX KINROSS GOLD CORPORATION Source: UBS research – August 14, 2009 29 AUGUST 2009 UBS: P / ‘09 CFPS 45.3 32.9 17.9 17.3 13.4 9.1 AEM GG KGC ABX AUY NEM KINROSS GOLD COR
Slide 16: Kinross Key Objectives for 2009
Kinross Gold Corporation UBS Sales Desk Presentation August 19, 2009 Kinross Key Objectives for 2009 9 Complete Aurelian integration 9 Close Lobo-Marte acquisition from Teck 9 Lock-in significant share of input costs 9 Strengthened St th d liquidity: li idit close l $415 mm equity it iissue
Slide 17: Endnotes
Kinross Gold Corporation UBS Sales Desk Presentation August 19, 2009 Endnotes (1) Unless otherwise stated, all cash flow and cash flow per share figures in this presentation are before changes in working capital. Cash flow before changes in working capital is a non-GAAP measure and is defined as cas
Slide 18: Paracatu, Brazil (100%) Crixas, Brazil (50%)
Kinross Gold Corporation UBS Sales Desk Presentation August 19, 2009 Paracatu, Brazil (100%) • Expansion to triple throughput to 60 mtpa • Expected to reach full capacity Q2’09 • Mine life out to 2041 Operating Results Operating Production Cost of Sales Results (Au eq. oz.) ($/oz.) H1’09 160,203 $68
Slide 19: Maricunga, Chile (100%) La Coipa, Chile (100%)
Kinross Gold Corporation UBS Sales Desk Presentation August 19, 2009 Maricunga, Chile (100%) • In the highly prospective Maricunga District • Open pit, heap leach operation • Pre-stripping of Pancho pit begins (March) Operating Results Operating Production Cost of Sales Results (Au eq. oz.) ($/oz.)
Slide 20: Kupol, Russia (75%) Fort Knox, USA (100%)
Kinross Gold Corporation UBS Sales Desk Presentation August 19, 2009 Kupol, Russia (75%) • 3,000 tpd mill with open-pit and underground operation • 2009 to be first full year of production Operating Results Operating Production Cost of Sales Results (Au eq. oz.) ($/oz.) H1’09 368,541 $242 2008 469,9
Slide 21: Round Mountain, USA (50%) Kettle River, USA (100%)
Kinross Gold Corporation UBS Sales Desk Presentation August 19, 2009 Round Mountain, USA (50%) • Kinross-operated JV with Barrick • Located in Nevada, USA • Open pit mine Operating Results Operating Production Cost of Sales Results (Au eq. oz.) ($/oz.) H1’09 101,498 $526 2008 246,946 $465 Reserves a
Slide 22: Kinross Gold Corporation
Kinross Gold Corporation UBS Sales Desk Presentation August 19, 2009 KINROSS GOLD CORPORATION 43 AUGUST 2009 22