Kinross Gold Corporation · TSX:K
Kinross Gold — Q1 2012 Earnings Presentation
18 slides from Kinross Gold's earnings presentation, May 9, 2012
Slide 1: First Quarter 2012 Operating & Financial Results
FIRST QUARTER OPERATING 2012 & FINANCIAL RESULTS May 9, 2012 1
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: Tye Burt, President & CEO: First Quarter Highlights
TYE BURT President & CEO TYE BURT, PRESIDENT & CHIEF EXECUTIVE OFFICER FIRST QUARTER HIGHLIGHTS 3
Slide 4: First Quarter Highlights
FIRST QUARTER HIGHLIGHTS • Strong financial and operating position: maintaining 2012 production & cost guidance • Continued progress on capital and project optimization process designed to maximize investor returns • Advancing key growth priorities: Tasiast mine expansion progresses, Dvoinoye feasib
Slide 5: Q1 2012 Financial Results
Q1 2012 FINANCIAL RESULTS Revenue Adjusted Operating Cash Adjusted Net Earnings(1) +11% Flow(1) +16% -14% $397 $1,037 $203 $937 $340 $175 US$ millions $0.35/sh $0.18/sh $0.30/sh $0.15/sh Q1 2011 Q1 2012 Q1 2011 Q1 2012 Q1 2011 Q1 2012 (1) Refer to endnote #1. 5
Slide 6: Q1 2012 Highlights
Q1 2012 HIGHLIGHTS • Production(2): 604,247 gold equivalent ounces • Production cost of sales(3): $742/oz Au eq. • Attributable margin(4): $902/oz. • Company expects to be within 2012 guidance of 2.6 – 2.8 mm oz. with production cost of sales of $670 - $715/oz. Au eq.(5) • Tasiast progress continues
Slide 7: Dvoinoye Feasibility Study
DVOINOYE FEASIBILITY STUDY • Expected to increase Kupol mill throughput to 4,500 tpd • Dvoinoye production expected to average ~215 – 250k oz Au eq. / yr. over first 3 full years During this time, Kupol mine production is expected to be ~435 to 470k oz Au eq. / yr. 2014 to 2016: combined product
Slide 8: Paul Barry, Chief Financial Officer: First Quarter Financial Results
PAUL BARRY, CHIEF FINANCIAL OFFICER FIRST QUARTER FINANCIAL RESULTS 8
Slide 9: Q1 2012 Results
Q1 2012 RESULTS Realized Margin(3,4) (in millions, except ounces and per Q1 2011 Q1 2012 % Change Gold Price +15% share amounts) +24% $902/oz $1,644/oz Gold equivalent production(2) 642,857 604,247 -6% (ounces) Gold equivalent sales (2) 660,788 621,680 -6% (ounces) Revenue $937.0 $1,036.6 +11% Produ
Slide 10: Brant Hinze, Chief Operating Officer: Operating Results & Projects Update
BRANT HINZE, CHIEF OPERATING OFFICER OPERATING RESULTS & PROJECTS UPDATE 10
Slide 11: Q1 2012 Operating Results
Q1 2012 OPERATING RESULTS Gold equivalent Production cost of production (2) sales (3) (oz.) (US$/oz.) Fort Knox 61,716 $861 Round Mountain 44,758 $856 Kettle River 42,618 $481 North America total: 149,092 $755 (2) Russia total (Kupol) : 126,970 $483 Paracatu 104,618 $954 Crixas 15,889 $805 La Coipa
Slide 12: Tasiast, Mauritania
TASIAST, MAURITANIA • Continue to expand mine fleet and accelerate mining activity Mine fleet increased to 41 haul trucks Mining rate expected to increase to 90 mta in 2012 • Basic infrastructure and pre-production work for next expansion phase continues: Expansion of existing camp to 3,000 be
Slide 13: Tasiast Site Enhancements
TASIAST SITE ENHANCEMENTS NEW ADR PLANT STRIPPING AT WEST BRANCH NEW WEST BRANCH DUMP LEACH FACILITY EXPANDING CAMP SIZE 13
Slide 14: Dvoinoye, Russia
DVOINOYE, RUSSIA • Underground development ahead of plan At end of Q1, 1,000 m completed To date, 2,730 m since development began • Surface construction commenced • Permanent camp, key equipment and supplies have been delivered to site • Earthworks and roads for site facilities, including the pe
Slide 15: Dvoinoye, Russia
DVOINOYE, RUSSIA WEST PORTAL TRUCK SHOP IN PROGRESS EARTHWORKS TEMPORARY CAMP EXPANSION 15
Slide 16: Kinross: Foundation for the Future
KINROSS: FOUNDATION FOR THE FUTURE 1. Strong financial and operating performance 2. Tasiast as cornerstone of Kinross’ long-term growth strategy 3. Stringent approach to project development and capital allocation 16
Slide 17: Endnotes
ENDNOTES 1) Adjusted net earnings attributed to common shareholders and adjusted operating cash flow numbers are non-GAAP financial measures which are meant to provide additional information and should not be used as a substitute for performance measures prepared in accordance with GAAP. For more in
Slide 18: Kinross Gold Corporation
KINROSS GOLD CORPORATION 25 YORK STREET, 17TH FLOOR TORONTO, ON M5J 2V5 WWW.KINROSS.COM 18