Kinross Gold Corporation · TSX:K
Kinross Gold — Shareholder Meeting (May 2016)
36 slides from Kinross Gold's shareholder meeting presentation, May 11, 2016
Slide 1: Operational Excellence. Financial Discipline.
Operational Excellence. Financial Discipline. Annual Meeting of Shareholders May 11, 2016
Slide 2: 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 and responses to questions, including but not limited to any information as to the future performance of Kinross, constitute “forward looking statements” within the
Slide 3: Achieved Strong Results in 2015
~9,600 AMERICAS employees 10 MINES in RUSSIA 3 regions PRODUCED 2.6Moz. WEST 4 CONSECUTIVE AFRICA years of strong performance Achieved Strong Results in 2015
Slide 4: Strong Track Record: Consistently Meeting or Outperforming our Targets
STRONG TRACK RECORD 2012 2013 2014 2015 MET or EXCEEDED annual production guidance MET or came in UNDER annual cost of sales guidance MET or came in UNDER annual capital expenditures guidance Consistently Meeting or Outperforming our Targets OPERATIONAL EXCELLENCE
Slide 5: 2016 Production & Cost Outlook
Forecasting Gold Equivalent Production (millions) All-in Sustaining Cost ($ per ounce) RECORD 2.7 – 2.9 $890 to $990 production 2.6 $975 LOWER expected all-in sustaining cost 2015 2016E 2015 2016E For more information regarding Kinross’ production, cost and capital expenditures outlook for 2016, ple
Slide 6: Track Record Over the Past Four Years
4 LOWERED annual capex by MET $1.9 $1.3B guidance $1.3 Consecutive targets $0.6 years $0.6 Produced over 2012 2013 2014 2015 10Moz. DECREASED MAINTAINED gold equivalent all-in a strong $700M balance sustaining Debt repaid sheet 10% cost $2.3 BILLION Liquidity position Track Record Over the Past Four
Slide 7: Principles for Building Value
OPERATIONAL EXCELLENCE BALANCE SHEET STRENGTH DISCIPLINED GROWTH RESPONSIBLE MINING Principles for Building Value
Slide 8: Operational Excellence
Operational Excellence
Slide 9: Best Safety Performance
BEST SAFETY PERFORMANCE in Kinross history Industry-leading Health and Safety Performance OPERATIONAL EXCELLENCE
Slide 10: Operational Excellence
Consistently MEETING or OUTPERFORMING our production & cost targets Operational Excellence
Slide 11: Fort Knox 2015 Operating Highlights
Fort Knox Alaska, USA Produced ~400,000 gold equivalent ounces in 2015 SECOND-HIGHEST production in the mine’s 19-year history 2015 Operating Highlights OPERATIONAL EXCELLENCE
Slide 12: Kupol-Dvoinoye 2015 Operating Highlights
Kupol-Dvoinoye Russia Achieved new RECORD for mill throughput Produced ~760,000 gold equivalent ounces in 2015 2015 Operating Highlights OPERATIONAL EXCELLENCE
Slide 13: Kupol-Dvoinoye 2015 Operating Highlights
Kupol-Dvoinoye Russia Celebrating 20 YEARS of operating in Russia 2015 Operating Highlights OPERATIONAL EXCELLENCE
Slide 14: Delivering Value through Continuous Improvement
NEW INNOVATIONS to extract additional value from our operations CONTINUOUS IMPROVEMENT hardwired into our corporate culture Delivering Value through Continuous Improvement OPERATIONAL EXCELLENCE
Slide 15: Paracatu: Delivering Value through Continuous Improvement
PARACATU Brazil REPROCESSING TAILINGS from the Santo Antonio facility Adds LOW-COST incremental production Contributed over 13,000 OUNCES to Paracatu’s production in Q1 2016 Delivering Value through Continuous Improvement OPERATIONAL EXCELLENCE
Slide 16: Balance Sheet Strength
Balance Sheet Strength
Slide 17: Strong Liquidity Position
$0.8 $2.3B at Mar. 31, 2016 $1.5 Cash, cash equivalents and restricted cash Undrawn credit facilities Strong Liquidity Position BALANCE SHEET STRENGTH
Slide 18: Maintaining Financial Flexibility
Maintaining Financial Flexibility STRONG FOCUS on reducing costs and capital expenditures continues We are WELL-POSITIONED to take advantage of high-quality growth opportunities Balance Sheet Strength
Slide 19: 20% Reduction in Overhead Expense
20% Reduction in Overhead Expense ($ millions) Overhead $208 $165 2015 2016E For more information regarding Kinross’ overhead outlook for 2016, please refer to the news release dated February 10, 2016 which is available on our website at www.kinross.com. Focus on Managing Costs BALANCE SHEET STRENGT
Slide 20: Disciplined Growth
me ~ - | — sae. rr —s ae ORR ae laste 4 A Disciplined Growth
Slide 21: Tasiast Mill Expansion
Large orebody with low execution risk TASIAST orebody & resource pit For additional information, please refer to the Tasiast Technical Report dated March 30, 2016 and to our news release dated March 30, 2016, available on our website at www.kinross.com. Tasiast Mill Expansion DISCIPLINED GROWTH
Slide 22: Two-Phased Approach
Two-Phased Approach Attractive path to realizing Tasiast’s GROWTH POTENTIAL SIGNIFICANTLY LOWER capital cost than previously estimated Tasiast Mill Expansion DISCIPLINED GROWTH
Slide 23: Phase One Feasibility Study Results
Phase One Feasibility Study Results MANAGEABLE capital of $300 million Expected to nearly DOUBLE production and significantly REDUCE costs ROBUST economics in today’s gold price environment Tasiast Mill Expansion DISCIPLINED GROWTH
Slide 24: Proceeding with Phase One
Proceeding with Phase One Expected to ramp up to full production in Q1 2018 Preparations for construction are well UNDERWAY Tasiast Mill Expansion DISCIPLINED GROWTH
Slide 25: Phase Two Pre-Feasibility Study Results
Phase Two Pre-Feasibility Study Results Expected to transform Tasiast into Kinross’ LARGEST producing mine with all-in sustaining cost among the LOWEST in our portfolio Estimated capital for both phases: $920 million Tasiast Mill Expansion DISCIPLINED GROWTH
Slide 26: $610 Million All-Cash Transaction
$610 Million All-Cash Transaction ACQUIRED 100% of Bald Mountain CONSOLIDATED ownership of Round Mountain Both located in one of the world’s BEST MINING JURISDICTIONS Acquisition of Quality Producing Mines in Nevada DISCIPLINED GROWTH
Slide 27: Bald Mountain: Clear Sources of Upside Potential
Bald Mountain Nevada 600 km2 land package among the LARGEST in the United States MULTIPLE OPPORTUNITIES to add to mineral reserves estimates & extend mine life Clear Sources of Upside Potential DISCIPLINED GROWTH
Slide 28: Round Mountain: Consistently Strong Performance
Round Mountain Nevada Full exposure to one of Kinross’ BEST-RUN OPERATIONS Centre for INNOVATION UNLOCKING VALUE through heap leach enhancements Consistently Strong Performance OPERATIONAL EXCELLENCE
Slide 29: Responsible Mining
Commitment to HEALTH AND SAFETY Protecting the ENVIRONMENT Engaging with our STAKEHOLDERS Community PARTNERSHIPS Responsible Mining
Slide 30: Engaging with our Stakeholders
168,000 Stakeholder interactions Engaging with our Stakeholders RESPONSIBLE MINING
Slide 31: Supporting Education in our Local Communities
Supporting Education in our Local Communities RESPONSIBLE MINING
Slide 32: Compelling Relative Value
Compelling Relative Value
Slide 33: Kinross Value Proposition
EXCELLENT operational track record STRONG balance sheet ATTRACTIVE growth opportunities COMPELLING relative value Kinross Value Proposition
Slide 34: Track Record Over the Past Four Years
4 LOWERED annual capex by MET $1.9 $1.3B guidance $1.3 Consecutive targets $0.6 years $0.6 Produced over 2012 2013 2014 2015 10Moz. DECREASED MAINTAINED gold equivalent all-in a strong $700M balance sustaining Debt repaid sheet 10% cost $2.3 BILLION Liquidity position Track Record Over the Past Four
Slide 35: Building Momentum for the Future
2020E Start-up of 2018E potential TASIAST PHASE TWO TASIAST PHASE 2017E ONE expected to ramp up to full 2016E Stronger year production expected at Expecting to BALD MOUNTAIN deliver RECORD production Building Momentum for the Future
Slide 36: Operational Excellence. Financial Discipline.
Operational Excellence. Financial Discipline.