Kinross Gold Corporation · TSX:K
Kinross Gold — FY2008 Earnings Presentation
15 slides from Kinross Gold's earnings presentation, Feb 18, 2009
Slide 1: Delivering Disciplined Growth
Delivering g Disciplined p Growth Q4 & Full-Year 2008 Conference Call & Webcast – February 18, 2009
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 this presentation, including any information as to the future financial or operating performance of Kinross, constitute “forward-looking information
Slide 3: Speakers
Speakers Tye y Burt Thom Boehlert Tim Baker President & CEO Executive Vice-President Executive Vice-President & CFO & COO Q4 & FULL YEAR RESULTS CONFERENCE CALL & WEBCAST 3
Slide 4: Highlights
Highlights Q4 ‘08 Highlights • Production(1) increased to 550,221 Au eq. oz. (+43% from Q4’07) • l (2) decreased C t off sales Cost d d tto $375/ $375/oz. ((-11% 11% ffrom Q4’07) • Cash flow per share*(3) increased to $0.34 (up 240% from Q4’07) FY ‘08 Highlights • Production increased to 1,838,038 A
Slide 5: Future development projects
Future development projects Lobo Marte (Chile) o Team in place o Road,, water and ore access alreadyy established o Pre-feasibility expected by year-end o $3 mm of infill drilling this year Fruta del Norte (Ecuador) ( ) o Team in place o Ecuadorian Mining Law passed as expected in January o Planning
Slide 6: 2008 Proven & Probable Gold Reserves
2008 Proven & Probable Gold Reserves(5,6) 2.0 46.6 -2.0 45.6 (mm oz.) -0.8 -0.1 2P Reserves Reserve additions Production Cerro Casale Net acquisitions / 2P Reserves (Dec.31.07) depletion reduction divestitures (Dec.31.08) *Waterfall chart does not reconcile to final total of 45.6 mm oz. due to Q4 &
Slide 7: 2008 Gold Resources
2008 Gold Resources(5,6) Measured & Indicated Gold Resources Inferred Gold Resources (mm oz.) (mm oz.) 21.3 Lobo- M t (7) Marte 19.1 0.5 Lobo-Marte(7) 5.4 Fruta del Norte 11.1 13.7(8) 70 7.0 13.7 7.1 2007 2008 2007 2008 (5) Please refer to final slide endnote #5. Q4 & FULL YEAR RESULTS (6) Please re
Slide 8: 2008 Production & Cost of Sales
2008 Production & Cost of Sales • Q4’08 production up 66% from Q1’08 • Q4’08 cost of sales down 21% from Q1’08 550,001 550,221 $472 $466 $406 406,032 $375 331,784 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Production Cost of Sales ($/oz.) Q4 & FULL YEAR RESULTS CONFERENCE CALL & WEBCAST 8
Slide 9: Q4'08 Financial Results
Q4’08 Financial Results Reported net loss $ (968.8 mm) ($1.47/sh) Adjusting for non-operating items: • Goodwill impairment + $994.1 mm • Tax charge + $63.9 $63 9 mm • Impairment of investments + $23.6 mm • Asset retirement obligation + $5.6 mm • Net foreign exchange gains - $40.7 mm • Net non non-he
Slide 10: FY'08 Financial Results
FY’08 Financial Results Reported net loss ($807.2 mm) ($1.28/sh) Adjusting for non-operating items: Goodwill impairment + $994.1 mm Tax charge + $63.9 $63 9 mm Impairment of investments + $83.9 mm Litigation provision + $19.1 mm Asset retirement obligation + $5.6 mm Fair value incrementa
Slide 11: Balance Sheet Strength
Balance Sheet Strength • As of December 31, 2009, pro-forma January equity financing and closing of the Lobo-Marte acquisition $883 mm $68 mm Cash Net Debt Q4 & FULL YEAR RESULTS CONFERENCE CALL & WEBCAST 11
Slide 12: Q4 Operating results
Q4 Operating results Mine Ounces Produced Ounces Sold Cost of Sales Cost of Sales (Au eq) (Au eq) (US$ mm) (US$/oz) La Coipa p 56,145 49,287 $26.4 $536 Maricunga 51,389 50,478 $30.0 $594 Paracatu 49,941 41,000 $19.6 $478 Crixás 22,163 21,757 $5.9 $271 Kupol 211,925 227,968 $48.2 $211 Fort Knox 77,13
Slide 13: Kinross Key Objectives for 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 liquidity: close $415 mm equity issue 9 Replace p Operations’ p reserves 9 Declare next dividend Paracatu expansion operati
Slide 14: Endnotes
Endnotes (1) Unless otherwise stated, production and cost of sales figures in this presentation are based on Kinross’ share of Kupol production (75%). ((2)) Cost of sales per ounce is defined as cost of sales as per the financial statements divided byy the number of gold g equivalent ounces sold, bo
Slide 15: Q4 & FULL YEAR RESULTS CONFERENCE CALL & WEBCAST
Q4 & FULL YEAR RESULTS CONFERENCE CALL & WEBCAST 15 15