Kinross Gold Corporation · TSX:K
Kinross Gold — Shareholder Meeting (May 2008)
24 slides from Kinross Gold's shareholder meeting presentation, May 7, 2008
Slide 1: Annual & Special Meeting of Shareholders
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 Annual & Special Meeting of Shareholders May 7, 2008 generating value… Cautionary Statement All statements, other than statements of historical fact, contained or incorporated by reference in this presentation, including a
Slide 2: Delivering disciplined growth in 2007
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 Kinross Gold Corporation Tye W. Burt President and Chief Executive Officer Delivering disciplined growth in 2007 9 Strong operational performance 9Acquired Kupol, Maricunga, La Coipa and Cerro Casale mines / projects 9
Slide 3: Kinross today
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 +55% +31% +23% XAU index Gold ETF Kinross 2007 Performance Kinross today • Pure gold and silver producer • Policy of no gold hedging • No base metal credits in financial results • $12 bn market cap • Declared first ever di
Slide 4: Rationalizing the portfolio
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 Rationalizing the portfolio Kinross (end of ’06) Kinross now Operated Operated Paracatu Paracatu Maricunga Maricunga Fort Knox Kupol Round Mountain Fort Knox Kettle River Round Mountain Kettle River Non-operated La Coipa J
Slide 5: Superior production growth profile
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 Superior production growth profile Mineral production (1) (mm oz gold equivalent) 2.5 – 2.6 1.9 – 2.0 1.6 2007 2008 2009 (1) Refer to final slide endnote #1. Proven and Probable Reserves(2) Gold (mm oz.) Gold (mm oz.) Silv
Slide 6: Proven and Probable Reserves
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 Proven and Probable Reserves(2) Gold (mm oz.) Silver (mm ozs) Copper (bn lbs) +88% +221% 47 28 2.8 77 28 25 28 24 2005 2006 2007 2005 2006 2007 2005 2006 2007 Gold Silver Copper (mm oz.) (mm oz.) (bn lb.) Proven & Probable
Slide 7: Focused exploration strategy
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 Focused exploration strategy Far East Russia North American Cordillera Brazilian Craton Operations Andean Growth Projects Cordillera Exploration Key objectives for 2008 9 Increase reserves organically 9 Strengthened bala
Slide 8: The Kinross difference
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 The Kinross difference Industry Challenge Kinross • Building new mines will increase ’09e Declining global production by 60% from ‘07 production p • A Aggressive i portfolio tf li upgrades d Rising costs eroding • Adding l
Slide 9: Earnings and cash flow growth
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 Earnings and cash flow growth $334 $341 Earnings Operating Cash Flow $292 $166 $134 $(216) 2005 2006 2007 2005 2006 2007 Increasing sales; stronger balance sheet Metal Sales Working Capital $798 $1,093 $ , $906 $526 $726 $
Slide 10: Q1 2008 results
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 Q1 2008 results • Ounces produced: 331,784 • Ounces sold: 356,864 • Metal sales: $330.2 mm Realized Cost of $70.9 mm Gold Price sales margin(6) $76.3 mm $457/oz $0 12/sh $0.12/sh $929/oz Cost of Sales $472/oz (6) Refer to
Slide 11: Kinross's strong financial platform
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 Kinross’s strong financial platform • Today: • Well-funded balance sheet • Strong financial position from current operations • Paid $0.04 / share dividend in Q1‘08 • 2008 & 2009: • Near-term growth from newproduction • Enh
Slide 12: Operations – U.S.A. and Chile
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 Operations – U.S.A. Kupol Julietta Kettle River - Buckhorn Fort Knox 2007 production N/A Fort Knox 2P reserves (gold) 990,000 oz Kettle River 2007 production 338,459 oz Ownership 100% Round Mountain 2P reserves (gold) 3.86
Slide 13: Operations – Brazil and Russia
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 Operations – Brazil Kupol Julietta Crixas Fort Knox 2007 production 91,305 oz Kettle River 2P reserves (gold) 392,000 Round Mountain Ownership 50% Crixás Paracatu Paracatu 2007 production 174,987 oz La Coipa 2P reserves (g
Slide 14: Kupol Project
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 2005 Kupol Project(1,3) • Started-up on time in May 2008 • 430,000 tonnes of ore stockpiled from open pit and underground mine 2006 • Milling rate expected to reach 3,000 tpd by Oct. • ‘08e production: 365k-390k gold eq. o
Slide 15: Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 Tailing dam reclaim water pump barge 29 Fuel farm 30
Slide 16: Paracatu expansion
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 Paracatu expansion (1,3) • Construction started Aug. 2006 • Expansion to increase throughput to 60 mtpa • On schedule for start-up in July 2008 • ’08e production: 305k-335k oz. • ‘08e cost of sale: $390-$400/oz. • 18.0 mm
Slide 17: Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 Primary crusher and conveyor SAG mill
Slide 18: Buckhorn Project
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 Site aerial view Buckhorn Project(1,3) • Construction started September 2006 • Development of an underground mine • Will utilize existing Kettle River mill for processing • Production targeted to commence in October • ‘08e
Slide 19: Buckhorn Project
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 Buckhorn Project Shop / office complex 37 Gold Bowl portal area 38
Slide 20: Fort Knox expansion
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 Upper portal area 39 Fort Knox expansion(4) • Layback of the existing open pit mine (Phase 7 layback) • Construction of a heap leach facility • Project capital costs expected to be $175 mm (‘08 & ‘09) • Doubles LOM product
Slide 21: The Kinross Way
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 Fort Knox Phase 7 Pit Layback The Kinross Way The culture, philosophy and values that drive us forward
Slide 22: The Kinross Way – Our Values
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 The Kinross Way – Our Values • Putting people first • Outstanding corporate citizenship • High performance culture • Rigorous financial discipline The Kinross Way – Our Values
Slide 23: Outstanding corporate citizenship
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 Outstanding corporate citizenship The Kinross difference Industry Challenge Kinross • Building new mines will increase ’09e Declining global production by 60% from ‘07 production p • A Aggressive i portfolio tf li upgrades
Slide 24: Endnotes
Kinross Gold Corporation Annual & Special Meeting of Shareholders May 7, 2008 Endnotes (1) For further information on Kinross’ production and cost outlook for 2008 & 2009, please refer to the Kinross press releases dated January 18, 2008, February 21, 2008 and May 6, 2008 which can both be found on