Kinross Gold Corporation · TSX:K
Kinross Gold — Bank of America Merrill Lynch Global Mining & Metals Conference 2010
21 slides from Kinross Gold's conference presentation, May 12, 2010
Slide 1: Delivering Disciplined Growth
Kinross Gold Corporation Bank of America Merrill Lynch Global Mining & Metals Conference May 11 – 13th, 2010 Delivering Disciplined Growth Bank of America Merrill Lynch Global Mining and Metals Conference Miami, FL May 11-13th, 2010 Cautionary Statement on Forward‐Looking Information All statements,
Slide 2: Why Kinross?
Kinross Gold Corporation Bank of America Merrill Lynch Global Mining & Metals Conference May 11 – 13th, 2010 Why Kinross? • Growing cash flow – Production has risen while margins have expanded – CFPS(1): 5 yr CAGR : 25% – Strong balance sheet: ~$1.1 bn in cash* • Pipeline of future opportunities Kin
Slide 3: Major gold discoveries: 1997-2008
Kinross Gold Corporation Bank of America Merrill Lynch Global Mining & Metals Conference May 11 – 13th, 2010 Major gold discoveries: 1997‐2008 Spending 3,500 90 Average of Major Au Discoveries ((MM oz.) 80 3,000 70 erage of Grassroots + Late Stage S 2,500 60 2,000 50 (US$ MM) 1,500 40 30 1,000 20 50
Slide 4: Growing Margins and Growing Cash Flow
Kinross Gold Corporation Bank of America Merrill Lynch Global Mining & Metals Conference May 11 – 13th, 2010 Growing Margins and Growingg Cash Flow • 41% production growth: 2007 to 2009 • Margin growth: 27% 5‐yr CAGR • CFPS growth: 25% 5‐yr CAGR 7 Focused Portfolio in Five Countries Portfolio of Min
Slide 5: 2010 Production Guidance
Kinross Gold Corporation Bank of America Merrill Lynch Global Mining & Metals Conference May 11 – 13th, 2010 2010 Production Guidance Production Cost of Number Estimated Country % of 2010e Ounces (000s) Sales / oz. of Mines Mine Life total Chile 460 – 480 21% $500 – 520 2 16+ Brazil 510 – 580 24% $4
Slide 6: Expanding Margins
Kinross Gold Corporation Bank of America Merrill Lynch Global Mining & Metals Conference May 11 – 13th, 2010 Expanding Margins: +27% 5‐yr CAGR 2004 – 2009: $530 • Average realized gold price: +139% • Kinross’ Ki ’ attributable tt ib t bl costt off sales i (4): +229% l margin $436 +229% Costt of Sale
Slide 7: Strong Financial & Operating Performance
Kinross Gold Corporation Bank of America Merrill Lynch Global Mining & Metals Conference May 11 – 13th, 2010 Strong Financial & Operating Performance • Record production in 2009 • Record cash flow and margins in 2009 • Growing reserves and resources 13 Q1 2010 Results Realized (in millions, except o
Slide 8: Gold Resource Growth
Kinross Gold Corporation Bank of America Merrill Lynch Global Mining & Metals Conference May 11 – 13th, 2010 Gold Resource Growth(6) 90.0 140.0 Inferred 80.0 Measured & Indicated Proven & Probable Reserves 120.0 Resource oz p per 1,000 , shares (7) 21.2 70.0 TTotal Resource ounce per 1,000 shares 14
Slide 9: Paracatu: At-site expansion
Kinross Gold Corporation Bank of America Merrill Lynch Global Mining & Metals Conference May 11 – 13th, 2010 Paracatu: At‐site expansion 3rd Ball Mill • Installingg 3rd ball mill to increase throughput g p • Procurement commitments at 40%; construction commenced • On schedule for completion and inst
Slide 10: Maricunga Optimization
Kinross Gold Corporation Bank of America Merrill Lynch Global Mining & Metals Conference May 11 – 13th, 2010 Maricunga Optimization Expansion • Scoping study completed late 2008 • Feasibility study expected in first half of 2010 • Concept: update mining fleet; construct new primary crusher and conve
Slide 11: Fruta del Norte, Ecuador
Kinross Gold Corporation Bank of America Merrill Lynch Global Mining & Metals Conference May 11 – 13th, 2010 Fruta del Norte, Ecuador • 18,000 metre drill campaign completed Quito • Pre Pre‐feasibility feasibility expected by year year‐end end • Land titles approved by government authorities as requ
Slide 12: Update on Cerro Casale
Kinross Gold Corporation Bank of America Merrill Lynch Global Mining & Metals Conference May 11 – 13th, 2010 Update on Cerro Casale La Coipa • Sold down interest from 50% to 25%: o Total transaction value: $474 mm L b M t Lobo‐Marte ~110 km • Rebalances Cerro Casale in our overall portfolio, reduces
Slide 13: New Investment in Red Back Mining
Kinross Gold Corporation Bank of America Merrill Lynch Global Mining & Metals Conference May 11 – 13th, 2010 New Investment in Red Back Mining • C$600 mm for 9.4% of pro‐forma equity ownership o C$25.00 per share • Right to appoint one member to Red Back’s Board of Directors • Anti‐dilution provisio
Slide 14: Valuation
Kinross Gold Corporation Bank of America Merrill Lynch Global Mining & Metals Conference May 11 – 13th, 2010 Valuation 27 Bank of America Merrill Lynch: P / NAV 2.48 2.21 1.96 1.9 1.79 1.78 AEM GG NEM ABX KGC AUY Source: Bank of America Merrill Lynch research – May 7, 2010 28 14
Slide 15: Key Objectives for 2010
Kinross Gold Corporation Bank of America Merrill Lynch Global Mining & Metals Conference May 11 – 13th, 2010 Bank of America Merrill Lynch: P / 2010 CFPS 21.2 15.6 11.9 10.4 9.8 9.0 GG AEM KGC ABX NEM AUY Source: Bank of America Merrill Lynch research – May 7, 2010 29 Key Objectives for 2010 Decla
Slide 16: Endnotes
Kinross Gold Corporation Bank of America Merrill Lynch Global Mining & Metals Conference May 11 – 13th, 2010 31 Endnotes (1) Unless otherwise stated, all cash flow and cash flow per share figures in this presentation are adjusted operating cash flow. Adjusted operating cash flow figures are non‐GAAP
Slide 17: Fort Knox, USA (100%)
Kinross Gold Corporation Bank of America Merrill Lynch Global Mining & Metals Conference May 11 – 13th, 2010 Appendix pp 33 Fort Knox, USA (100%) • Located in Alaska • Expansion and new heap leach to extend mine life • M t i lb Material being i stacked t k d on new pads d Operating Results Productio
Slide 18: Round Mountain, USA (50%)
Kinross Gold Corporation Bank of America Merrill Lynch Global Mining & Metals Conference May 11 – 13th, 2010 Round Mountain, USA (50%) • Kinross‐operated JV with Barrick • Located in Nevada, USA • Open pit mine Operating Results Production Cost of Sales (Au eq. oz) ($/oz) Q1 2010 45,629 $622 Q1 2009
Slide 19: Kupol, Russia (75%)
Kinross Gold Corporation Bank of America Merrill Lynch Global Mining & Metals Conference May 11 – 13th, 2010 Kupol, Russia (75%) • 3,000 tpd mill with open‐pit and underground operation • 2009 first full year of production Operating Results Production Cost of Sales (Au eq. oz) ($/oz) Q1 2010 144,691
Slide 20: Crixas, Brazil (50%)
Kinross Gold Corporation Bank of America Merrill Lynch Global Mining & Metals Conference May 11 – 13th, 2010 Crixas, Brazil (50%) • JV with AngloGold Ashanti • Underground mine located in the Brazil Operating Results Production Cost of Sales (Au eq. oz) ($/oz) Q1 2010 18,856 $432 Q1 2009 11,595 $428
Slide 21: Maricunga, Chile (100%)
Kinross Gold Corporation Bank of America Merrill Lynch Global Mining & Metals Conference May 11 – 13th, 2010 Maricunga, Chile (100%) • Located the highly prospective Maricunga District • Open pit, heap leach operation • Expansion under review Operating Results Production Cost of Sales (Au eq. oz) ($
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