Kinross Gold Corporation · TSX:K
Kinross Gold — BMO Capital Markets Global Metals & Mining Conference 2011
28 slides from Kinross Gold's conference presentation, Feb 28, 2011
Slide 1: Delivering Disciplined Growth
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 DELIVERING DISCIPLINED GROWTH BMO Capital Markets Global Metals & Mining Conference February 27 – March 2, 2011 1 CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION All statements, other tha
Slide 2: Why Gold? Why Kinross? Why Now?
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 WHY GOLD? WHY KINROSS? WHY NOW? 3 INDUSTRY PRODUCTION DECLINING • Forecasted production from mining declining 2,800 2,700 Gold Production (Tonnes) 2,600 2,500 2,400 2 300 2,300 2,200 2,100 20
Slide 3: Increasing Demand for Gold
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 INCREASING DEMAND FOR GOLD $200 $1,450 Investment / Other Total Fabrication $175 Gold Price (US$/oz) $1,250 Current gold price $150 $1,050 old Demand (US$ billions) Gold Price (US$/oz.) $125
Slide 4: Why Kinross?
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 WHY GOLD? GO ? WHY KINROSS? WHY NOW? 7 WHY KINROSS? 1. Industry-leading growth from a senior gold producer 2. World-class projects with experienced teams and financial resources to build them
Slide 5: Continuing the Kinross Transformation
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 CONTINUING THE KINROSS TRANSFORMATION Kinross Yesterday Kinross Now(1) m oz) 4.5 – 4.9 Gold equivalent production (mm ozz) Gold equivalent production (mm 2.3 2.5 – 2.6 1.6 G 2005 2010 2011e 2
Slide 6: Year-End Financial Results
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 YEAR-END FINANCIAL RESULTS • Continuing to deliver strong financial results Revenue Adjusted Operating Cash Adjusted Net Earnings(2) +25% Flow ((2)) +57% +16% $1,091 $3,010 $937 $479 $2,412 U
Slide 7: Growing Cash Flow per Share
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 GROWING CASH FLOW PER SHARE • 5-yr CAGR : 21% $1 36 $1.36 $1.32 Cash Flow per Share (US$)(2) $1.01 $0.80 $0.56 $0.51 Adjusted C 2005 2006 2007 2008 2009 2010 (2) Refer to endnote #2. 13 INCRE
Slide 8: Track Record of Reserve Growth
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 TRACK RECORD OF RESERVE GROWTH ORGANIC KINROSS RESERVE ADDITIONS TODAY WEST AFRICA 9.7 62.4 Proven and Probable Gold Reserves(55) RESERVE ADDITION 2.4 10.0 62.4 51.0 PRODUCTION 48.6 DEPLETION
Slide 9: Strong Balance Sheet
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 STRONG BALANCE SHEET • Cash on hand: ~$1.5 bn • Equity pipeline investment portfolio valued at ~$203.8 mm $1,467 US$ millions $630 $503 Cash and cash equivalents Long-term investments Long-te
Slide 10: Gold Production from New Projects
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 GOLD PRODUCTION FROM NEW PROJECTS +1.3(i) average annual gold production (mm oz) +0.41(ii) +0.35(ii) Estimated a Tasiast Expansion Fruta del Norte Lobo-Marte (i) Does not include current Tasi
Slide 11: Tasiast, Mauritania
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 TASIAST, MAURITANIA 21 MAURITANIA: KEY FACTS # Producing Mine # Exploration / Development Project • Among most sparsely-populated countries 1) Tasiast 2) (Kinross) - –Au Tasiast (Robinson) Au
Slide 12: Progression of Drilling at Tasiast
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 TASIAST, MAURITANIA Greenstone Rocks • Expanded drilling program Banded Iron Fm Intrusives focused around existing Tasiast Felsic Volcanics Greenschist mine Tenements Tasiast Shear 2010 Resou
Slide 13: Exploration Update at Tasiast
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 EXPLORATION UPDATE AT TASIAST • 3 additional drills added in January 2011; 25 drills currently on site • Drilled 64,000 m in the West Branch area in Q4 2010 Targeting deeper extensions of t
Slide 14: Tasiast Greenschist Zone
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 TASIAST GREENSCHIST ZONE LONG-SECTION GST 1km 27 RESOURCE GROWTH AT TASIAST 8.6 Ounces (millions)(5,6) 5.1 1.9 2.1 1.4 9.2 9.3 0.8 7.6 5.4 3.7 Year-end 2008 November 2009 September 2010 Novem
Slide 15: Tasiast Scoping Study
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 TASIAST SCOPING STUDY • Scoping study complete • New processing plant with expected 60,000 tpd throughput – total 68 68,000 000 tpd • 16-year mine life • Expected avg. annual production of 1.
Slide 16: Fruta del Norte, Ecuador
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 FRUTA DEL NORTE, ECUADOR 31 FRUTA DEL NORTE, ECUADOR • Prepared pre-feasibility study and technical report • Underground operation with an estimated 16-year mine life • LOM avg. production es
Slide 17: Fruta del Norte, Ecuador
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 FRUTA DEL NORTE, ECUADOR • Construction on the La Zarza exploration decline expected to start in Q2/11 • Advancing permitting: Expect to submit EIAs for mine and plant operations to the Min
Slide 18: Lobo-Marte, Chile
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 LOBO-MARTE, CHILE • Completed pre-feasibility study update • 10-year mine life • Expected 47,000 tpd heap leach with SART plant • Annual production estimate: 350k oz. per year Expected avg.
Slide 19: Dvoinoye, Russia
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 DVOINOYE, RUSSIA 37 DVOINOYE, RUSSIA • Scoping study completed January 2011 • Underground mine with an expected 8-year mine life Expected avg. output of 900 tonnes per day (2013-2020) • Ore
Slide 20: Why Now? BMO: P / NAV
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 WHY GOLD? WHY KINROSS? WHY NOW? 39 BMO: P / 6% NAV 1.6 1.2 1.2 0.9 AGNICO BARRICK GOLDCORP KINROSS Source: BMO Capital Markets – Gold Pages (February 22, 2011) 40 20
Slide 21: Key Objectives for 2011
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 BMO: P / 2011E CFPS 15.3 14 0 14.0 13 8 13.8 9.5 AGNICO GOLDCORP KINROSS BARRICK Source: BMO Capital Markets – Gold Pages (February 22, 2011) 41 KEY OBJECTIVES FOR 2011 Complete Tasiast sco
Slide 22: Why Kinross?
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 WHY KINROSS? 1. Industry-leading growth from a senior gold producer 2. World-class projects with experienced teams and financial resources to build them 3. Attractive valuation 43 APPENDIX 44
Slide 23: Fort Knox and Round Mountain, USA
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 FORT KNOX, USA (100%) • Located in Alaska • Expansion and new heap leach to extend t d mine i lif life OPERATING RESULTS PRODUCTION COST OF SALES (Au eq. oz) ($/oz) 2010 349,729 $550 2009 263
Slide 24: Kettle River-Buckhorn and Kupol
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 KETTLE RIVER-BUCKHORN, USA (100%) • Entered production in Q4/08 • Small foot-print, underground mine • Near-mine exploration targets OPERATING RESULTS PRODUCTION COST OF SALES (Au eq. oz) ($/
Slide 25: Paracatu and Crixas, Brazil
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 PARACATU, BRAZIL (100%) • Recoveries near target • Major expansion commissioning • Adding 3rd and 4th ball mills OPERATING RESULTS PRODUCTION COST OF SALES (Au eq. oz) ($/oz) 2010 482,397 $53
Slide 26: La Coipa and Maricunga, Chile
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 LA COIPA, CHILE (100%) • Gold/silver mine in the Maricunga district • Comprehensive C h i exploration l ti program OPERATING RESULTS PRODUCTION COST OF SALES (Au eq. oz) ($/oz) 2010 196,330 $
Slide 27: Tasiast, Mauritania and Chirano, Ghana
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 TASIAST, MAURITANIA (100%) • Open-pit mine ~300 km north of the city of Nouakchott • Remote, R t flflat, t sparsely l populated l t d desert OPERATING RESULTS PRODUCTION COST OF SALES (Au eq.
Slide 28: Endnotes
KINROSS GOLD CORPORATION BMO Capital Markets Global Mining and Metals Conference February 27 – March 2, 2011 ENDNOTES 1) For more information regarding Kinross production and cost forecast for 2011 and production target for 2015, please refer to the press release dated February 16, 2011, available o
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