Kinross Gold Corporation · TSX:K
Kinross Gold — Corporate Update (October 2020)
52 slides from Kinross Gold's corporate update, Oct 20, 2020
Slide 1: Operations Update: Strong Long-Term Production Profile
October 20, 2020 Delivering Value. Operations Update: Strong Long-Term Production Profile
Slide 2: Cautionary Statement on Forward-Looking Information
October 20, 2020 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 and responses to questions, including but not limited to any information as to the future perfo
Slide 3: Cautionary Statement on Forward-Looking Information, continued
October 20, 2020 Cautionary Statement on Forward-Looking Information, continued (23) that the benefits of the contemplated arrangements related to the agreement in principle will result in increased stability at the Company’s operations in Mauritania; and (24) the Company’s financial results, cash f
Slide 4: Today's Speakers
Today’s Speakers Paul Rollinson Paul Tomory President & CEO EVP & Chief Technical Officer John Sims Scott Hicks Yves Breau Richard Adofo SVP, Resource Geology, VP, Mine Planning & VP, Metallurgy & VP, Global Brownfield Brownfields Exploration; Technical Evaluations Engineering Exploration Company QP
Slide 5: On Track to Meet Guidance
Operations Update October 20, 2020 On Track to Meet Guidance 2020 would mark the 9th consecutive year of meeting or exceeding guidance targets for production, costs and capital expenditures 2012 2013 2014 2015 2016 2017 2018 2019 2020 Met or exceeded annual On production guidance Tra
Slide 6: Exciting Future for Kinross
Operations Update October 20, 2020 Exciting Future for Kinross (i) Strong production growth over the next three years, driving a 20% increase by 2023 Three drivers of growth: Growing Production Profile • Recent three-year capital reinvestment phase established a timely platform for growth that lever
Slide 7: Strong Long-Term Outlook
Operations Update October 20, 2020 Strong Long-Term Outlook Expecting average annual production of ~2.5 million gold equivalent ounces(1), with additional opportunities that could drive it higher Long-term opportunities also supported by: • Existing infrastructure • Continuous improvement • Explorat
Slide 8: Production Plans and Project Pipeline
Operations Update October 20, 2020 Production Plans and Project Pipeline Base Case Expected Growth Additional Pipeline Production Projects Opportunities Kupol: regional exploration, Kupol-Dvoinoye Chulbatkan: Udinsk mine life extensions Tasiast: satellites, West Tasiast 24k Branch depth extension Ch
Slide 9: Agenda
Agenda Opening Remarks • Kupol-Dvoinoye Russia • Chulbatkan • Regional Exploration • Tasiast West Africa • Chirano • Paracatu • Fort Knox • Round Mountain Americas • Bald Mountain • La Coipa • Lobo-Marte • Kettle River - Curlew Q&A Session Closing Remarks 9
Slide 10: The Strengths of a Global Portfolio
Operations Update October 20, 2020 The Strengths of a Global Portfolio Production expected to increase by 500,000 gold equivalent ounces(1)(i), with declining costs, from 2021-2023 Expected 2021-2023 production growth Production Increases by Mine primarily driven by: 8.0 • Anticipated mine life exte
Slide 11: Russia
Russia Base case: Expected growth projects: Additional pipeline: • Kupol-Dvoinoye • Chulbatkan: Udinsk • Kupol: regional exploration, mine life extensions • Chulbatkan growth Expect continuous production to at least 2029 (i)(ii) (i) 2024-2029 is an illustrative trend 11 (ii) Gold equivalent calculat
Slide 12: Kupol-Dvoinoye
Russia October 20, 2020 Kupol-Dvoinoye Anticipate continuing our 12-year track record of mine life extensions • H1 2020 produced some of the 2019 Gold Reserve & Resource Estimates(i) best exploration results on record Tonnes Grade Ounces (thousands) (g/t) (thousands) • Expected mine life extension t
Slide 13: Kupol
Russia October 20, 2020 Kupol Significant resources remaining at high grades • Successful transition to narrower mining expected to allow for reserve additions through engineering changes • Drill program is underway with the goal of converting resources to reserves Base Case & Growth Minex Targets 1
Slide 14: Kupol – Additional Pipeline Opportunities
Russia – Additional Pipeline Opportunities October 20, 2020 Kupol Numerous opportunities for continued reserve growth Big Central South North North South Extension Karman Bend Zone Zone Zone Zone Upper North Extension 42 Kupol Deeps S. Hanging N. Hanging Providence Moroshka Vtoriy Wall Wall Base Cas
Slide 15: Kupol – Prospective Regional Exploration
Russia – Additional Pipeline Opportunities October 20, 2020 Kupol – Prospective Regional Exploration Numerous prospective tenements near the Kupol mill • Kinross owns significant prospective exploration ground within trucking distance of the Kupol mill • Kayenmyvaam offers excellent near-term resour
Slide 16: Chulbatkan – Udinsk
Russia October 20, 2020 Chulbatkan – Udinsk Udinsk, our first mining project on the Chulbatkan license, is expected to be a substantial open pit gold mine with low AISC(2) • Strong base case with Scoping Study Estimates(i) significant upside potential Initial mine life 6 years, starting in 2025 Tota
Slide 17: Chulbatkan – Growth Through Exploration
Russia – Additional Pipeline Opportunities October 20, 2020 Chulbatkan – Growth Through Exploration Numerous untested targets within the expanded exploration license Potential for additional discoveries is enhanced • Summer license-wide exploration geochemistry and geophysics program exceeded expect
Slide 18: West Africa
West Africa Base case: Additional pipeline: • Tasiast 24k project • Tasiast: Northern satellites, West Branch depth extension • Chirano mine life extension • Tasiast Sud dump leach • Chirano: Obra & Suraw underground and other extensions Base load tier 1 asset + expected mine life extensions (i)(ii)
Slide 19: Tasiast
West Africa October 20, 2020 Tasiast One of Kinross’ tier 1 gold mines with a mine life that extends to 2033 • Large, low-cost, base load mine, located in a prospective district with 2019 Gold Reserve & Resource Estimates(ii) mine life of at least 13 years Tonnes Grade Ounces (thousands) (g/t) (thou
Slide 20: Tasiast – Additional Pipeline Opportunities
West Africa – Additional Pipeline Opportunities October 20, 2020 Tasiast World-class orebody and highly prospective district Northern satellites • Multiple low strip(i) oxide deposits located 5 - 12 km north of the Tasiast operation • Fennec, C67, and C68 are prospective targets for further drilling
Slide 21: Tasiast Sud
West Africa – Additional Pipeline Opportunities October 20, 2020 Tasiast Sud Large, prospective property located ~10km south of the Tasiast mine area • The recent agreement in principle(i) with the Government of Mauritania contemplates the granting of a 30-year exploitation license upon completion o
Slide 22: Chirano
West Africa October 20, 2020 Chirano Mine life expected to extend to at least 2025 due to recent exploration success 2019 Gold Reserve & Resource Estimates(i) • Sustained production through 2023 from multiple Tonnes Grade Ounces (thousands) (g/t) (thousands) ore sources 2P Reserves 7,428 2.2 528 • U
Slide 23: Chirano – Obra
West Africa October 20, 2020 Chirano – Obra Substantial contributor to Chirano mine life extension • Expect to extend mining to 2025 through exploration success: o H1 2020 drilling yielded significant intercepts and extended the depth of high-grade mineralization o Exploration drifting to drill from
Slide 24: Chirano – Exploration
West Africa – Additional Pipeline Opportunities October 20, 2020 Chirano – Exploration Numerous targets at depth and on surface along shear • Potential exists for continuation at depth of existing underground mines and parallel splays at Akwaaba and Tano • Exploration upside being investigated at ne
Slide 25: Americas
Americas Base case: Expected growth projects: Additional pipeline: • Paracatu • Fort Knox: Peak Project • Paracatu: NW Extension • Fort Knox + Gil satellites • Round Mountain: Phase S • Fort Knox: NW Bulge • Round Mountain • Lobo-Marte • Round Mountain: Phase X • Bald Mountain • Additional Bald Moun
Slide 26: Paracatu
Americas October 20, 2020 Paracatu Tier 1 gold mine with a long mine life that is expected to extend to 2031 • Paracatu is among the world’s largest 2019 Gold Reserve & Resource Estimates(i) gold operations Tonnes Grade Ounces • Average expected production of more (thousands) (g/t) (thousands) than
Slide 27: Paracatu – Northwest Extension
Americas – Additional Pipeline Opportunities October 20, 2020 Paracatu – Northwest Extension Mineralization extends to the west of the existing reserve pit, with the potential to extend mine life by approximately 4 years NW Ph1B Multiple NW Ph2 pushbacks being evaluated to the west of Au (g/t) NW Ph
Slide 28: Fort Knox
Americas October 20, 2020 Fort Knox Pioneers in cold climate heap leaching with large reserve and resource base • Future production growth driven by enhancements to the mine plan, 2019 Gold Reserve & Resource Estimates(ii) including accelerating production at the Tonnes Grade Ounces Gilmore project
Slide 29: Fort Knox – Gil Satellite Pits
Americas October 20, 2020 Fort Knox – Gil Satellite Pits Expected to provide near-term, higher grade ore to Fort Knox operation • Permitting is underway, and feasibility study results are expected in early 2021; anticipated first ore to the mill in Q4 2021 N Sourdough • Located 13 km east of Fort Kn
Slide 30: Fort Knox – Peak Project
Americas October 20, 2020 Fort Knox – Peak Project (70%) High grade, open pit project that is expected to extend Fort Knox’s mill operations • Development plan contemplates crushing ore at the project and Peak Resources (100% Basis)(ii) trucking material to the Fort Knox Au Au Ag Ag mill for process
Slide 31: Fort Knox – Northwest Bulge
Americas - Additional Pipeline Opportunities October 20, 2020 Fort Knox – Northwest Bulge Exploring opportunities to further extend and leverage our long operating history in Alaska • Potential expansion of the pit to the $1,400/oz. resource shell could add over 600koz. of M&I and over 350koz. infer
Slide 32: Round Mountain
Americas October 20, 2020 Round Mountain Strong cash flow generator with Phase W expected to extend mine life to 2027 • Studying potential for future 2019 Gold Reserve & Resource Estimates(i) expansions to extend mining into Tonnes Grade Ounces the next decade with Phase S (thousands) (g/t) (thousan
Slide 33: Round Mountain – Phase S
Americas October 20, 2020 Round Mountain – Phase S Potential next pushback on the south side of the Round Mountain pit Plan view of Round Mountain • May extend open pit operations until Phase X 1.4 Moz I 2029 and mill life to early 2030s 0.7 Moz Inf. • Pit optimization scoping study suggests potenti
Slide 34: Round Mountain – Phase X
Americas - Additional Pipeline Opportunities October 20, 2020 Round Mountain – Phase X Assessing mineability of potential resource beyond Phase W • Studying potential for incremental mine • Encountering ounces in Phase W upper life extensions at $1,400/oz. or higher deposit - potential to add ounces
Slide 35: Bald Mountain
Americas October 20, 2020 Bald Mountain Exploring opportunities to further extend mine life in a top mining jurisdiction • Large mineral resource base with multiple sources of potential mineral 2019 Gold Reserve & Resource Estimates(i) reserve additions that could extend Tonnes Grade Ounces mine lif
Slide 36: Bald Mountain – Additional Pipeline Opportunities
Americas - Additional Pipeline Opportunities October 20, 2020 Bald Mountain Numerous targets within the large land package Resource Pits – • 1.3 million ounces of reserves expected to Expected Mine Potential Plan to 2024 support a four-year mine life at $1,200/oz. Extensions • At higher gold prices
Slide 37: La Coipa Restart
Americas October 20, 2020 La Coipa Restart Pre-stripping at Phase 7 is expected to begin in early 2021. First production is expected in mid-2022. • Leverages established infrastructure, Feasibility Study Estimates(i) including existing mill and Maricunga’s Life of mine production mine fleet 690,000
Slide 38: La Coipa – Additional Pipeline Opportunities
Americas - Additional Pipeline Opportunities October 20, 2020 La Coipa(i) Four additional deposits with ~1 million gold equivalent ounces are being studied and have the potential to extend current mine life by 3 to 5 years Coipa Norte Puren Phase 7 Au eq. Au eq. Tonnes Grade Ounces Can Can (thousand
Slide 39: Lobo-Marte
Americas October 20, 2020 Lobo-Marte Potential to be a cornerstone asset with attractive AISC(2), supporting Kinross’ production profile beyond 2040 • Prefeasibility study contemplates an open pit, Pre-Feasibility Study Estimates(i) heap leach and SART plant Life of mine production (million Au oz.)
Slide 40: Kettle River – Curlew: Exploration Potential
Americas - Additional Pipeline Opportunities October 20, 2020 Kettle River – Curlew: Exploration Potential Curlew District 6.5 km2 Curlew Basin K2 mine K1 mine Post-mineral cover up to 520m thick Looking N20W Partial unsliced section w 600m thick 40paleo/topo Exploration Potential 40 500 m • The Cur
Slide 41: Q&A Session
Q&A Session 41
Slide 42: Kinross Investment Case
Kinross Investment Case Operational Excellence Financial Strength & Flexibility Diverse portfolio of mines consistently meeting Maintaining a strong balance sheet continues to or outperforming operational targets be a priority objective 8 Available liquidity of ~$2.3 billion Met or $2.3 Attractive n
Slide 43: Appendix
Appendix 43
Slide 44: 2019 Gold Reserve & Resource Estimates
Appendix October 20, 2020 2019 Gold Reserve & Resource Estimates Kupol Dvoinoye Tonnes Grade Ounces Tonnes Grade Ounces (thousands) (g/t) (thousands) (thousands) (g/t) (thousands) Proven Reserves 772 8.3 207 Proven Reserves 1,574 5.0 252 Probable Reserves 4,279 8.3 1,146 Probable Reserves 250 10.4 8
Slide 45: 2019 Gold Reserve & Resource Estimates
Appendix October 20, 2020 2019 Gold Reserve & Resource Estimates Fort Knox (Inclusive of NW Bulge & Gil) Fort Knox – NW Bulge Tonnes Grade Ounces Tonnes Grade Ounces (thousands) (g/t) (thousands) (thousands) (g/t) (thousands) Proven Reserves 43,982 0.4 541 Proven Reserves - - - Probable Reserves 211
Slide 46: 2019 Gold Reserve & Resource Estimates
Appendix October 20, 2020 2019 Gold Reserve & Resource Estimates Bald Mountain Paracatu Tonnes Grade Ounces Tonnes Grade Ounces (thousands) (g/t) (thousands) (thousands) (g/t) (thousands) Proven Reserves - - - Proven Reserves 549,669 0.4 7,705 Probable Reserves 63,999 0.6 1,277 Probable Reserves 28,
Slide 47: 2019 Gold Reserve & Resource Estimates
Appendix October 20, 2020 2019 Gold Reserve & Resource Estimates Catalina (included in ‘La Coipa’) Can Can (included in ‘La Coipa’) Tonnes Grade Ounces Tonnes Grade Ounces (thousands) (g/t) (thousands) (thousands) (g/t) (thousands) Proven Reserves - - - Proven Reserves - - - Probable Reserves - - -
Slide 48: 2019 Silver Reserve & Resource Estimates
Appendix October 20, 2020 2019 Silver Reserve & Resource Estimates La Coipa Phase 7 (included in ‘La Coipa’) Tonnes Grade Ounces Tonnes Grade Ounces (thousands) (g/t) (thousands) (thousands) (g/t) (thousands) Proven Reserves 368 55.8 659 Proven Reserves 327 25.5 268 (stockpile) Probable Reserves 14,
Slide 49: 2019 Silver Reserve & Resource Estimates
Appendix October 20, 2020 2019 Silver Reserve & Resource Estimates Catalina (included in ‘La Coipa’) Can Can (included in ‘La Coipa’) Tonnes Grade Ounces Tonnes Grade Ounces (thousands) (g/t) (thousands) (thousands) (g/t) (thousands) Proven Reserves - - - Proven Reserves - - - Probable Reserves - -
Slide 50: 2019 Kinross Mineral Reserve & Resource Statements
Appendix October 20, 2020 2019 Kinross Mineral Reserve & Resource Statements (1) Unless otherwise noted, the Company’s mineral reserves are estimated using appropriate cut-off grades based on an assumed gold price of $1,200 per ounce and a silver price of $17.00 per ounce. Mineral reserves are estim
Slide 51: Endnotes
Appendix October 20, 2020 Endnotes 1) Unless otherwise noted, gold equivalent production, gold equivalent ounces sold and production cost of sales figures in this presentation are based on Kinross’ 90% share of Chirano production and sales and 70% of the Peak Project’s production and sales. Also unl
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