Kinross Gold Corporation · TSX:K
Kinross Gold — Q3 2011 Earnings Presentation
25 slides from Kinross Gold's earnings presentation, Nov 3, 2011
Slide 1: Delivering Disciplined Growth: Third Quarter 2011 Results Webcast
DELIVERING DISCIPLINED GROWTH THIRD QUARTER 2011 FINANCIAL & OPERATING RESULTS WEBCAST November 3, 2011 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
TYE BURT President & CEO TYE BURT CHIEF EXECUTIVE OFFICER 3
Slide 4: Q3 2011 Highlights
Q3 2011 HIGHLIGHTS • Continuing to deliver strong financial results Revenue Adjusted Operating Cash Adjusted Net Earnings(1) +45% Flow(1) +134% +82% $422 $273 $1,069 US$ millions $736 $232 $0.24/sh $0.37/sh $117 $0.30/sh $0.15/sh Q3 2010 Q3 2011 Q3 2010 Q3 2011 Q3 2010 Q3 2011 (1) Refer to endnote #
Slide 5: Delivering Expanding Margins
DELIVERING EXPANDING MARGINS 2005 – Q3 2011: $1,012 • Average realized gold price: +270% • Kinross’ attributable margin(2,3): +495% $873 $784 +495% $683 Attributable Margin (US$/oz) $530 $436 $329 $279 $170 2005 2006 2007 2008 2009 2010 Q1 Q2 Q3 2011 (2) Refer to endnote #2. (3) Refer to endnote #3.
Slide 6: Q3 2011 Highlights
Q3 2011 HIGHLIGHTS • Production(4): 647,983 gold equivalent ounces (up 13% from Q3 2010) • Record quarterly revenue of $1,069.2 million (up 45% from Q3 2010) • Adjusted operating cash flow(1) of $421.6 million (up 82% from Q3 2010) • Adjusted net earnings(1) of $273.4 million (up 134% from Q3 2010)
Slide 7: Pompeya: New Discovery at La Coipa
POMPEYA: NEW DISCOVERY AT LA COIPA* • Significant gold and silver discovery • Located 3 km northeast of La Coipa mill Part of the CMLC JV property (75% Kinross) • Significant intersections include: DPMP-006: 58 m @ 1.15 g/t Au & 256 g/t Ag (6.99 g/t Au eq.) DPMP-015: 146 m @ 2.4 g/t Au & 95.2
Slide 8: Tasiast Deposit Long-Section
TASIAST DEPOSIT LONG-SECTION* • Deep drilling at West Branch continues to identify extensions of greenschist- style mineralization * Coloured symbols represent grade (g/t Au) x thickness (metres) values illustrated in the GXM legend * Refer to Kinross’ news release dated November 2, 2011 for the com
Slide 9: C67 Target: Tasiast District Exploration
C67 TARGET: TASIAST DISTRICT EXPLORATION* C67 DRILL HOLE LOCATION PLAN OVERLYING GEOLOGY • Gold mineralization currently defined over 800 strike metres • Results continue to be strongly TA06410RC TA06403RC encouraging 37m @ 1.51 g/t Au 27m @2.93 g/t Au TA06402RC 50m @ 2.70 g/t Au and 21 m @ 4.94 g/t
Slide 10: Brant Hinze, Chief Operating Officer
BRANT HINZE CHIEF OPERATING OFFICER 10
Slide 11: Q3 2011 Operating Results
Q3 2011 OPERATING RESULTS (4) (2,4) Gold equivalent ounces Production cost of sales Produced Sold ($ mm) ($/oz.) Fort Knox 76,261 75,611 $53.8 $712 Round Mountain 54,588 52,658 $35.2 $668 Kettle River - Buckhorn 41,200 42,109 $19.5 $463 North America total: 172,049 170,378 $108.5 $637 (4) Kupol 124,
Slide 12: Overall 2011 Outlook Confirmed
OVERALL 2011 OUTLOOK CONFIRMED(5) Production % of Total Production Cost of Sales(2) Region (000 ounces ) Production ($/oz) South America 945 – 980 36% $650 – $675 North America 625 – 645 24% $625 - $685 West Africa(4) 440 – 480 18% $685 – $715 (attributable) Russia(4) 555 – 575 22% $395 - $435 Gold
Slide 13: Paul Barry, Chief Financial Officer
PAUL BARRY CHIEF FINANCIAL OFFICER 13
Slide 14: Q3 2011 Results
Q3 2011 RESULTS Realized Margin(2,3) (in millions, except ounces and per Q3/10 Q3/11 % Change Gold Price +50% share amounts) +38% $1,012/oz $1,646/oz Gold equivalent production(4) 575,065 647,983 13% (ounces) Gold equivalent sales (4) 576,955 663,517 15% (ounces) Revenue $735.5 $1,069.2 45% Producti
Slide 15: Strong Balance Sheet
STRONG BALANCE SHEET • Cash on hand at September 30, 2011: $1.9 billion • $1.2 billion revolving credit facility As at September 30, 2011 $1,875 $1,401 US$ millions $573 Cash and cash equivalents Long-term investments & Long-term debt investments in associates 15
Slide 16: Dr. Ken Thomas, Senior VP Projects
DR. KEN THOMAS SENIOR VICE-PRESIDENT, PROJECTS 16
Slide 17: Tasiast, Mauritania
TASIAST, MAURITANIA • Expansion project remains on schedule: Feasibility study to be complete at the end of Q1 2012 Construction expected to start mid-2012 Start-up of 60,000 tpd mill is targeted for mid-2014 • EIA for early works approved Early earthworks and concrete foundations for the mi
Slide 18: Fruta del Norte, Ecuador
FRUTA DEL NORTE, ECUADOR • Development of the exploration decline is on target and expected to be complete in 2013 • Mine and plant EIAs submitted in October • Negotiations have progressed on exploitation agreement • Commenced negotiations on investment protection agreement • Feasibility study expec
Slide 19: Dvoinoye, Russia
DVOINOYE, RUSSIA • Development of exploration decline advanced to 650 metres as of end of Q3 2011 Additional equipment en route to site to increase rate of development • Advanced engineering and procurement activities DECLINE PORTAL • Feasibility study expected Q1 2012 • Expected to commission in
Slide 20: Lobo-Marte, Chile
LOBO-MARTE, CHILE • Drilling for feasibility study has been completed • Re-deploying drilling equipment to Valy and Marte Northwest targets • Completed geotechnical and mine block models • Metallurgical plans expect to be completed Q4 2011 • Project permitting expected to remain on schedule • Feasib
Slide 21: Tye Burt, President & CEO
TYE BURT President & CEO TYE BURT CHIEF EXECUTIVE OFFICER 21
Slide 22: Key Objectives
KEY OBJECTIVES ADVANCING OUR PROJECTS Complete Tasiast scoping study Complete Fruta Del Norte pre-feasibility Complete Dvoinoye scoping study Complete Lobo-Marte feasibility study Complete Fruta del Norte feasibility study OPTIMIZING THE ASSET BASE Declare NI 43-101 gold mineral re
Slide 23: Continuing the Kinross Transformation
CONTINUING THE KINROSS TRANSFORMATION Kinross Yesterday Kinross Now(6) 4.5 – 4.9 Gold equivalent production (mm oz) Gold equivalent production (mm oz) 2.6 – 2.7 2.3 1.6 2005 2010 2011e 2015e (6) Refer to endnote #6. 23
Slide 24: 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 25: Kinross Gold Corporation
KINROSS GOLD CORPORATION 25 YORK STREET, 17TH FLOOR TORONTO, ON M5J 2V5 WWW.KINROSS.COM 25