Kinross Gold Corporation · TSX:K
Kinross Gold — 2006 Analysts' Tour - South American Operations — 2006 Analysts' Tour - South American Operations
117 slides from Kinross Gold's investor presentation, Jan 10, 2006
Slide 1: Compañía Minera Maricunga
Compañía Minera Maricunga Kinross Gold Corporation January 10, 2006
Slide 2: Ubicación
KkiNROSS Diego de Potrerillos Almagro Obispito <é Olnca de Oro > , - Oj hae We \ os del Salado ) PARQ. NAC. soe) NEVADO TRES Bahia Inglesa CRUCES \ COPIAPO Puerto () \ * Viejo ' Je) Paipote facto AL , OTierra OLos Azules | Amarilla RAPA NUI Isla de Pascua nO \ ’ Caleta / El Medio O : ' Chafarcillp C
Slide 3: = iCoplapodas pwr,
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Slide 4: Safety Update
Safety Update • Up to-date we have 134 days, 822,000 accumulated hours, without lost time accidents. • Safety training program is being completed with Corporate personnel • Status and future training plan was reviewed with NOSA personnel. • Mine Rescue training is in progress with “Bomberos de Chile
Slide 5: Mine Reopening Project
Mine Reopening Project • Electric Power Line US$20,500K • Primary Screen US$9,000K • Conveyors US$10,000K • Operating Costs US$26,500K • ADR Plant upgrade US$2,300K • EPCM US$6,500K • Indirect and Others US$6,100K • Total US$134,000K
Slide 6: Production Update
Production Update • Commissioning started at the end of June, 2005 • Commercial Production started on October 1st, 2005 • 40,000 TPD were reached during November and December 2005
Slide 7: Operations Forecast
Operations Forecast (1) 2006f Tonnes Crushed (millions tonnes) 14 Au Grade (grams/tonne) 0.94 Au Recovery 59% Total Au Production '000 240-250 Mining Cost/tonne $0.96 Milling Cost/Tonne $2.25 Capex (millions) $10-12 (1) Estimates and Forecasts from Kinross Corporate Life of Mine model
Slide 8: Pancho Project Proposal, Background
Pancho Project Proposal, Background • On December 2004 and January 2005 a condemnation drill hole program was performed and the results gave good indications that the ore body could be expanded. • The 2003 drill program did not provide complete information on the metallurgical and geoemechanical par
Slide 9: 2006 Pancho Program
2006 Pancho Progam • Selective check holes to confirm model (manto vs vein?). • Exploration: • NE Pancho target, follow up Yr 2004 hit • S. Verde (below waste dump) target, follow up Yr 2004 mineralization, (surface laminated veinlets look good) (this is near the Bema property boundary) • Geotechnic
Slide 10: Condemnation drill holes realized 2005
COMMDENATION DRILL HOLES REALIZED 2005 E 474.000 E ∗ 474.000 Area Guanaco REF04-5 6.955.000 N 6.955.000 N REF04-4 REF04-6 Pancho Pit Dump New area Leach Pad Verde Pit REF04-3 REF04-7 ∃ REF04-2 REF04-8 REF04-8A REF04-1 REF04-9 6.950.500 N 6.950.500 N E 468.000 E 468.000 0 0.5 1 kilometers
Slide 11: Refugio - Location
Refugio - Location 0 1 2 Guanaco CMM Claims kilometres 2 1.02/116 Pancho Deposit Verde Volcanic and Pancho 7 Intrusive Complex Diorite & Refugio Volcanics Volcanics (undivided) Laguna Tuff Mesozoic Rocks Leach Verde Pad West and East Mines Process Plant 2 Guanaco Target 7 West Field Reconnaissance B
Slide 12: Pancho Deposit
Diameter PLAN VIEW PANCHO DEPOSIT U$350 increase (View to NE using U$400 pit width either side U$500 pit equal to 50 meters) Drill Holes Footprint Missing drill holes zones Grade shell with gold > 1.5 g/t Grade shell with gold > 0.9 g/t Grade shells only for displaying better grades inside the vario
Slide 13: Pancho Deposit
Pancho Deposit Section 6953900 N Pit U$350 Pit U$500 Grade Shell with gold > 0.9 g/t Missing drill holes zones Grade Shell with gold > 1.5 g/t Grade shells only for displaying better grades inside the various pits, they are not cut off grades.
Slide 14: Pancho Deposit
Pancho Deposit Section 469500 E Pit U$350 Pit U$500 Drill Holes Grade Shell with gold > 0.9 g/t Grade Shell with gold > 1.5 g/t Grade shells only for displaying better grades inside the various pits, they are not cut off grades.
Slide 15: Pancho – Increase of Resources
Pancho – Increase of Resources Pancho Pit U$350 Pancho Pit U$500 Zone Class Kton G/T Oz Zone Class Kton G/T Oz Pancho - Oxide (0.33) Measured 19,744 0.75 476,821 Pancho - Oxide (0.33) Measured 22,492 0.73 527,894 Indicated 7,563 0.60 145,901 Indicated 13,540 0.57 248,140 Measured and indicated 27,33
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Slide 21: Kinross Gold Corporation
KGC: NYSE (Common shares) K: TSX (Common shares) K.U: TSX (US dollar trading symbol) K.WT: TSX (Warrants expiring 05/12/07) Kinross Gold Corporation 40 King Street West, 52nd Floor Scotia Plaza Toronto, ON M5H 3Y2 416-365-5123 416-363-6622 866-561-3636 info@kinross.com 21
Slide 22: MDO Overview
MDO OVERVIEW (kin ROSS J anuary 2006 P LACER DOME
Slide 23: La Coipa, General Information
La Coipa, General Information Manpower by Areas – Dec. 2005 Work Areas Supervisors Staff Employees Total Management 12 5 17 Human Resources 7 3 10 Adm. and Finance 18 2 20 Mine 31 12 148 191 Plant 30 10 162 202 Total 98 32 310 440 Within the 440 workers there are 10 temporary workers Average Age: 43
Slide 24: Location of Main Orebodies
Location of Main Orebodies January 2006
Slide 25: Mine Layout
BRECHA NORTE Mine Layout • Operating Parámeters • Mining method : Open COIPA NORTE pit • Slope angle : 43° - 50 • Bench height : 10 Can Can meter • Ramp width : 24 meter • Ramp slope : 10 % LADERA FARELLON FARELLON BAJO January 2006
Slide 26: Flow Sheet. La Coipa Plant
Flow Sheet. La Coipa Plant January 2006
Slide 27: Tailing Disposal
TAILING DISPOSAL January 2006
Slide 28: Metal Production
Metal Production Gold Equivalent Ounces 600 451 466 500 421 391 409 364 350 Au Eq. Oz (000's) 400 312 298 309 302 179 127 252 300 159 154 349 385 197 107 110 135 195 83 200 282 233 242 100 210 192 199 152 167 168 102 117 81 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Au Oz Ag (Au Eq.
Slide 29: Cash and Total Unit Cost
Cash and Total Unit Cost 400 379 350 312 US$ / Au Eq Ounce 298 291 300 281 289 284 272 273 255 251 250 240 238 231 224 216 209 208 204 197 200 163 166 168 161 150 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Unit Cash Cost Unit Total Cost January 2006
Slide 30: Budget 2006 Production Statistics
Budget 2006 Production Statistics Tonnes Mined (000) 16.376 Tonnes Milled (000) * 5.799 Grade Au (g/t) 0,98 Grade Ag (g/t) 94,0 Recovery Au (%) 75,5 Recovery Ag (%) 69,0 Oz Au * 138.352 Oz Ag * 12.092.608 Oz Au Equivalent * 335.208 * 100% Production (Include Puren) January 2006
Slide 31: Budget 2006 Cost Statistics
Budget 2006 Cost Statistics Property Cost (US$ 000) 72.622 Unit Cash Cost (US$/Oz) 288,45 Unit Total Cost (US$/Oz) 365,22 January 2006
Slide 32: MDO Reserves-Resources 12/2004
MDO Reserves-Resources 12/2004 RESERVES Tn MINERAL Oz.Au.Eq. ORIGINAL RESERVES 3.72 65.58 MILLED MINERAL 4.18 61.7 REMAIN RESERVES 1.94 26.5 TOTAL RESERVES 6.12 88.2 RESOURCES 3.25 54.71 January 2006
Slide 33: SBP 2005 - Strategic Frame
SBP 2005 - Strategic Frame • Opportunities for improving and extending MDO’s business is based on four pillars of the strategic plan: 9Focus on operational excellence. 9Exploration in MDO mine properties 9Develop business with neighbors 9Proactive environmental management and stakeholder involvement
Slide 34: MDO Growth Potential
MDO Growth Potential Potential Resources Existing Orebodies Koz. Au equiv. – Ladera Farellón 65 – Chimberos 20 – Puren Phase II 220 – Puren Phase III 100 – Ladera Farellón Sulphides (Au/Ag) 1.500 Total (Au – Ag) 1.905 Copper Potential Resources – Ladera Farellón Suphides Kt 320 (705MLb) January 2006
Slide 35: District Exploration Potential
DISTRICT EXPLORATION POTENTIAL January 2006
Slide 36: Mining Claims
Mining Claims January 2006
Slide 37: Esperanza Map
Esperanza Map TETERITA Work done Geological logging Surface sampling: 145 Drilling 68 drill holes RC (8,888 m). Resultados Silver mineralization Silisified tuffs. Geo-physics Exploration 4 CSAMT lines with 3,7 Km. January 2006
Slide 38: Teterita orebody
Teterita orebody Please note: the information for Cuerpo Superior andJanuary Cuerpo 2006 Inferior is reversed.
Slide 39: La Coipa Au Sulfide Ore
La Coipa Au Sulfide Ore • Initial exploration of The Coipa ended when sulfides were reached • During y-1995-96 • 5 deep Drilling (1,922 m, up to 488 m depth). • In y-1997-98 • 7 new DDH (3,232 m, up to 550 m of depth) • Today a full program has been defined January 2006
Slide 40: La Coipa Au Sulfide Ore
La Coipa Au Sulfide Ore January 2006
Slide 41: La Coipa Au Sulfide Ore
La Coipa Au Sulfide Ore January 2006
Slide 42: La Coipa Au Sulfide Ore
La Coipa Au Sulfide Ore January 2006
Slide 43: Au Sulfide Ore Proposal
Au Sulfide Ore Proposal Budget is US$ 5.0 M for a 2.5 year program Geo-chemistry 20.000 Geo- physics 400.000 Drilling campaign 2.700.000 Assays 270.000 Measurement of deviations 200.000 Metallurgical studies 260.000 G&A 1.000.000 Contingency 150.000 TOTAL 5.000.000 January 2006
Slide 44: Exploration Budget y-2006
Exploration Budget y-2006 PROJECT TOTAL 2006 2007 Cost KUS$ Cost KUS$ Cost KUS$ G&A 350 350 Esperanza 1,100 1,100 Carachapampa 100 100 Esmeralda 150 150 Torito 750 750 Sulphides Ladera Farellon 5,000 1,550 3,450 7,450 4,000 3,450 January 2006
Slide 45: Summary
Summary • MDO has an experienced team to operate in this working environment • District has potential for new resource findings • Puren & Ladera-Farellon may add value to our business for a number of years • MDO operating facility is a key asset to process satellite deposits from neighbor concession
Slide 46: Resources and Reserves
Resources and Reserves Geology and Mine Planning Department Rio Paracatu Mineração S/A Kinross Gold Corporation January 12, 2006
Slide 47: Location
Location
Slide 48: Regional geology
Regional geology 295,000E 300,000E Geological Legend Paracatu Formation Serra da Anta Sequence Fazenda Lavras 8,105,000N Metasiltstones and quartzites Morro do Ouro Sequence Foliated pelites 1%py, rare quartz boudins Tailings Carbonaceous pelites and arenites - foliated, quartz Dam boudins,sulfides,
Slide 49: Local geology
Local geology C Horizon T Horizon High Strain Zone B1 Horizon B2 Horizon
Slide 50: Local geology
Local geology 800m Elev. 0.48g/t Au / 141m 0.57g/t Au / 152m Surface K-805 WCR-1.54.5 K-605 K105 K-405 K-205 Rico Creek KTS $400 Pit Limit 0.53g/t Au / 128m 600m Elev. 0.52g/t Au / 127m 0.55g/t Au /124m 0.41g/t Au / 147m 0.71g/t Au / 88m 0.67g/t Au / 75m 400m Elev. open 0.67g/t Au / 85m 0 100 200 we
Slide 51: Local geology
Local geology ‘ gK-803 K-704 <~406 POQ210._ PCR WHITTLE T ¢ - 2 U$400 /0Z . i had
Slide 52: Local geology
Local geology B1 B2
Slide 53: Data up 2004
Data up 2004 • up to 2003 • 1,029 holes (different kinds of geological research) • 30,000 m of data • drilling campaign 2004 • 63 holes • 2,539 m of mineralized zone
Slide 54: Exploration 2005
Exploration 2005 • Total meters • 267 drill holes 48,660.27 m • Total drilling on the mineralized zone • Approximately 30,000 • Total drilling on the waste • Approximately 18,600
Slide 55: Exploration 2005
Exploration 2005 Geological samples 70,000 62,297 60,000 50,000 46,248 Number of samples 40,000 32,297 29,767 29,767 30,000 22,791 22,791 20,170 19,068 20,000 16,903 13,402 9,575 10,320 8,190 8,898 10,000 7,762 4,223 5,236 3,435 - 1985 1986 1988 1990 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Slide 56: Exploration 2005
Exploration 2005 2005 ORILL HOLE PLANNING
Slide 57: Expansion area
Expansion area Highway Rico Creek Pond C
Slide 58: Exploration 2005
Exploration 2005 K-410 0-8 m 35-43 m 111-117 m 242-250 m
Slide 59: Exploration 2005
Exploration 2005 Inpit drilling West Rico Creek Rico Creek West Rico Creek
Slide 60: Exploration 2005
Exploration 2005 West Rico Creek Beside the highway 24h shifts Pads reclamation
Slide 61: Geological interpretation
Geological interpretation • Hard boundaries (weathering domains) • B1 • B2 • Gold / Deformation / Boudins / ASPY • High deformation and boudin • Presence of ASPY • Waste domains (weathering degrees) • A soil • A saprolite • A oxide • A rock
Slide 62: Reserves Statement
Reserves Statement
Slide 63: Grade modeling
Grade modeling 12000 • Gold 11500 • Arsenic 11000 0.9 0.55 0.5 • Sulphur 0.45 0.4 10500 0.3 • Work Index 0 10000 • Density 8500 9000 9500 10000 10500 11000 11500
Slide 64: Ultimate pit design
Ultimate pit design • Geotechnical criteria • Design criteria (bench height, ramps)
Slide 65: Ultimate pit design
Ultimate pit design
Slide 66: Geological model
AU NAME WASTE LOW MEDIUM MEDHI HI
Slide 67: Reserves Statement: Grade x Tonnage curve
Reserves Statement Grade x Tonnage curve (Ultimate Pit US$400/oz) 1,100 1.4 1,000 946 Mt 1.2 900 800 1 Tonnage (t 000,000) Average grade (g/t) 700 0.8 600 500 0.44 g/t 0.6 400 300 0.4 200 0.2 100 0 0 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10 Cut off grade (g/t)
Slide 68: Reserves statement
Reserves statement Classification Price tonnes Grade Gold (US$/oz) (x 1,000) (Au g/t) (ounces) Proven $ 400 807,341 0.44 11,212,000 Probable $ 400 139,633 0.46 2,068,000 Proven & Probable $ 400 946,974 0.44 13,280,000 Measured $ 450 110,837 0.43 1,530,000 Indicated $ 450 11,069 0.41 147,000 Measured
Slide 69: Reserves Statement
Reserves Statement 18.00 17.00 Cumulative Mined (M onces) Reserve Remaining (M onces) 16.00 15.00 14.00 13.00 12.00 Million Onces of Gold 11.00 13.28 10.00 9.00 8.00 8.45 7.00 6.00 5.08 5.07 5.00 4.11 3.86 4.00 3.49 3.48 3.39 3.38 3.00 3.52 3.32 3.02 2.72 2.00 3.73 3.74 3.20 3.11 3.37 3.62 2.68 2.32
Slide 70: Further developments
Further developments • Block model dimensions (50m x 50m x 12 m) • Fleet size and mining method • Cable shovel 35 m3 bucket/ 240 st trucks • Open pit drilling and blast design
Slide 71: Thanks for your attention.
KGC: NYSE (Common shares) Thanks for your K: TSX (Common shares) K.U: TSX (US dollar trading symbol) K.WT: TSX (Warrants expiring 05/12/07) attention. Kinross Gold Corporation 40 King Street West, 52nd Floor Scotia Plaza Toronto, ON M5H 3Y2 416-365-5123 416-363-6622 866-561-3636 info@kinross.com 26
Slide 72: Rio Paracatu Mineração S.A. - Morro do Ouro Gold Mine
RIO PARACATU MINERA ÇÃO S.A. MINERAÇÃO MORRO DO OURO GOLD MINE
Slide 73: Legal Notice
LEGAL NOTICE 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, performan
Slide 74: Hydrometallurgy Simplified Flowsheet
SIMPLIFIED FLOWSHEET Existing Plant 18 Mtpa Open Pit Mine Concentrate 18 Mtpa @ 0.44g/t +/- 30,0 g/t HYDROMETALLURGY Crushing Plant Grinding BENEFICIATION Cyanide Blending Silos C.I.L. Sulphide Tailings Milling (JIGs in CL) pond Dessorption Classification Cyanide Electrowinning Flotation Recovery Sm
Slide 75: Morro do Ouro Open Pit Mine
MORRO DO OURO OPEN PIT MINE (kaliross
Slide 76: Beneficiation and Hydrometallurgical Plant
BENEFICIATION AND HYDROMETALLURGICAL PLANT
Slide 77: Tailings Dam
TAILINGS DAM kiNROSS (
Slide 78: Resources and Reserves
RESOURCES AND RESERVES as at October 31, 2005 Classification Price tonnes Grade Gold (US$/oz) (x 1,000) (Au g/t) (ounces) Proven $ 400 807,341 0.44 11,212,000 Probable $ 400 139,633 0.46 2,068,000 Proven & Probable $ 400 946,974 0.44 13,280,000 Measured $ 450 110,837 0.43 1,530,000 Indicated $ 450 1
Slide 79: Environment
ENVIRONMENT (kaliross
Slide 80: Environmental Policy
ENVIRONMENTAL POLICY Policy To establish plans, programs and measures to eliminate or minimise such impact and to take proactive measures to protect the environment. Instruments: • Environmental Impact Evaluation • Environmental Control Plan Monitoring • Internal Environmental Audit
Slide 81: Industrial Safety Systems
INDUSTRIAL SAFETY SYSTEMS = —_—— i ; x ‘har * un " kiINROSS
Slide 82: Industrial Safety Systems
INDUSTRIAL SAFETY SYSTEMS RPM - Adopt the NOSA MBO System NOSA MBO System – Objectives : To Educate To Train Management and workforce To Motivate – To Prevent Accidents and Occupational Diseases Chapters – Premises and housekeeping – Mechanical, Electrical and Personal Safeguarding – Fire Prev
Slide 83: Lost Time Injury Frequency Rate
LOST TIME INJURY FREQUENCY RATE 7.00 6.00 6.09 5.00 4.00 2.59 3.00 2.00 0.81 0.75 0.91 0.54 0.52 0.55 0.62 0.33 0.22 0.21 0.43 0.34 0.29 0.22 0.21 1.00 0 0.00 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 per 1,000,000 hours worked
Slide 84: Community Relations
COMMUNITY RELATIONS kiINROSS
Slide 85: Community Relations
COMMUNITY RELATIONS Policy RPM is committed to responsible participation in the affairs of the local community and maintains a good relationship with its neighbourhood, looking for mutual respect, active partnership and long term commitment. • Actions / programmes • Permanent contacts with: - City
Slide 86: Key Community Involvement
KEY COMMUNITY INVOLVEMENT Income and Job Generation Programme Economic and Social Development Agency Further Education My First Job Partnership Seminar Environmental Education
Slide 87: Production and Productivity
PRODUCTION AND PRODUCTIVITY
Slide 88: Forecast Assumptions
FORECAST ASSUMPTIONS Budget and Forecast Assumptions 2006 2007 2008 LOM Exchange Rate - Reais/$US 2.3 2.65 2.65 2.65 Oil Prices $US/bbl 60 60 45 45
Slide 89: Operating Forecast
OPERATING FORECAST (1) 2005E 2006F 2007F 2008F Tonnes Milled (millions tonnes) 17 17 17 24 Au Grade (grams/tonne) 0.4 0.4 0.4 0.4 Au Recovery 78% 78% 78% 78% Total Au Production '000 175 170 - 180 185 - 190 250 - 260 Mining Cost/tonne $0.75 $0.75 $0.65 $0.60 Milling Cost/tonne $2.70 $1.75 $1.40 $1.3
Slide 90: Appendix
APPENDIX (kcQuross bee
Slide 91: Awards and Certificates
AWARDS AND CERTIFICATES Company to win the first Minas Ecologia Award – 1995. First Brazilian Gold Mine to achieve ISO 14001 - in 2000. Member of Environmental NGO “Amda” – since 1992. Achieved Child Friendly certificate by NGO ABRINQ - since 2002. Rated as a “Great Place to Work” – Exame
Slide 92: Geographical Position
GEOGRAPHICAL POSITION BRAZIL BRASÍLIA PARACATU SOUTH AMERICA MINAS GERAIS STATE
Slide 93: Paracatu Region
PARACATU REGION Population Total 75,200 iver dro R R iver Pe os Urban Zone 63,000 São m ing D o São Hospitals 2 r ve Ri Colleges 4 s Pobre Creek co Elementary and High Schools 52 MINAS ar M Technical School 2 GERAIS o PARACATU Sã Ri catu STATE r ve ra k ee Pa Economy Cr co Ri Minerals: Gold, Limesto
Slide 94: Mine Development Highlights
MINE DEVELOPMENT HIGHLIGHTS 1980 - RTZ Mineração begins exploration for gold 1985 - RPM is registered as a gold mining company 1986 - RPM is granted the mining licence 1987 - Start up of operations - First bullion produced (December) 1992 - Start up of the Optimisation project 1996 - February - Star
Slide 95: RPM Expansion Project III
RPM EXPANSION PROJECT III Kinross Gold Corporation January 12, 2006
Slide 96: Project Implementation
PROJECT IMPLEMENTATION • FOLLOWING PMI® (Project Management Institute) GUIDELINES • ONWER’S TEAM FULLY MOBILIZED • EpCM CONTRACT ESTABLISHED WITH SNCL/MINERCONSULT CONSORTIUM • CURRENTLY UNDERTAKING BASIC ENGINEERING
Slide 97: Project Objectives
Project Objectives • Plant Capacity Increase from 18 to 32 Mtpa in 2008 • Plant Capacity Increase from 32 to 50 Mtpa from 2009 onwards
Slide 98: Project Objectives
Project Objectives Life Of Mine Figures Yearly Averages LOM Tonnes processed x 000 18 > 32 > 50 Au Production ozs 370,000 Operating Costs US$/tonne 2.94 Total Cash Costs US$/oz 260
Slide 99: Project Scope
Project Scope • First Phase: • Comprises the installation of: • New Mine Fleet • In Pit Crusher • Overland Conveyor • Stockpile and Reclaiming Facility • New Grinding Plant (one 38 x 22 ft SAG mill and one 40 x 24 ft ball mill) • Flotation Capacity for Handling extra tonnage • Hydromet Capacity for
Slide 100: Project Scope
Project Scope • Second Phase: • Comprises the installation of: • Another 40 x 24 ft ball mill • Flotation Capacity for Handling extra tonnage • Hydromet Capacity for Handling extra tonnage • New Tailings Dam
Slide 101: Project Scope (Process Flowsheet)
Project Scope (Process Flowsheet)
Slide 102: Project Scope
Project Scope • Other On going Studies: • Alternative Methods for tailings disposal • Ex.: Tailings cycloning • Sulphuric Acid Plant • Treatment of Hydromet Tailings for generating acid • Reduction of Specific Pond Volumes
Slide 103: Project Scope Management
Project Scope Management • Scope Control • Procedure defined in the Project Plan • Establishment of a Document Room for document revision and approval by EpCM and Owner’s Team • Management of Scope Change • Formal Procedure defined in the Project Plan • Existence of a Scope Change Committee for appr
Slide 104: Project Schedule
Project Schedule • Main Milestones Phase 1: • Basic Engineering: 09/2005 to 03/2006 • Feasibility Study Preparation and Approval: up to 05/2006 • Initiate Construction: 04/2006 • Full Project Release: 06/2005 • Detailed Engineering Complete: 12/2006 • Practical Construction: 02/2008 • Start Grinding
Slide 105: Project Schedule
Project Schedule • Main Milestones Phase 2: • Second Ball Mill Order: 10/2007 • Second Ball Mill Manufacturing: up to 02/2008 • Second Ball Mill Installation and Commissioning: 12/2008 • Plant Start up: 01/2009 • New Tailings Dam Construction: from 04/2007 to 09/2008 • New 500 kV Transmission Line C
Slide 106: Project Schedule Management
Project Schedule Management • Project is Schedule Driven • S curves by disciplines are reviewed on weekly meetings with EpCM company • Deviations (delays) are pointed out and discussed • Action Plan for retrieving lost time are put forward
Slide 107: Project Cost
Project Cost • Total Capital Costs estimated to be $326 million* • CAPEX Figures were estimated in the Plant Capacity Study (+/- 35 %) – July 2005 • Figures will be confirmed at the end of Basic Engineering – March 2006 • Feasibility Study will be re-run to confirm and recommend Expansion Level * To
Slide 108: Project Cost Management
Project Cost Management • EpCM systems are being set up (PM+) • RPM systems are being set up (Modcap and SEC) • Cost will be tracked by Cost Centers • Cost Centers will be established for main Items and Sub Items, following the Project WBS • Purchase Orders will be issued in accordance to the budget
Slide 109: Project QA/QC Management
Project QA/QC Management • Quality Procedures embedded into the Project Plan • Main Activities • Stakeholder Mapping and Needs Assessment • Quality Planning • Quality Control Procedures • Quality Guarantee Procedures • Performance Testing
Slide 110: Project Human Resources
Project Human Resources Owner’s Team Organization Chart OPCO EXCO Kinross Americas RPM COO Kinross Legal Project Director CFO Kinross Tech Services Others Kinross HSE Frank Murray Kinross Finance Community Relations Project Manager Luis Albano Tondo Mining and Tailings Dam Licensing Committee Antoni
Slide 111: Project Human Resources
Project Human Resources Autonomy and Responsibility • Authorization and Responsibility Matrix defined in the Project Plan, for each Owner’s team member • Formal Procedures for Approval in place, following RPM standards tailored for the Project
Slide 112: Project Communication Plan
Project Communication Plan • Regular Meetings: • Epcm/Owner’s Meeting – weekly • Owner’s Team – weekly • OPCO – fortnightly • TECHCO – every 3 months • RPM Management: monthly • Community: part of RPM Community Affairs Plan • Reports: • Weekly Report to COO • Monthly Report from EpCM • Meeting Minut
Slide 113: Project Risk Management
Project Risk Management • Methodology considered in the Project Plan • Activities involve: • Risk Identification • Qualitative Analyses • Probability and Severity Matrix • Risk Ranking • Quantitative Analyses • Estimate Risk Impact on Project • Sensitivity Analysis and Monte Carlo Simulations • Acti
Slide 114: Project Acquisitions
Project Acquisitions • Following RPM formal standards, tailored for the Project. • Bids with at least three Suppliers • EpCM company responsible for technical specification development, bid technical analysis and recommendation and item expediting • Owner’s team responsible for commercial analysis a
Slide 115: Project Acquisitions
Project Acquisitions • So far, three main contracts are in place: • EpCM contract • SAG and Ball Mill from METSO • SAG Gearless Drive from SIEMENS • Total Committed to date: US$ 68.8 million
Slide 116: Project Integration
Project Integration • Project Plan incorporating all management areas previously described, following the PMI guidelines • Plan is dynamic and will be adapted as the project evolves • Provides a formal description of Project Procedures • Will become a standard within the Kinross Gold Corporation
Slide 117: Thank You
THANK YOU 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 416-365-5123 416-363-6622 866-561-3636 info@kinross.com 23