Kinross Gold Corporation · TSX:K

Kinross Gold — Bank of America Merrill Lynch Canada Mining Conference 2011

50 slides from Kinross Gold's conference presentation, Sep 8, 2011

  1. Slide 1: A High-Growth Pure Gold Producer

    A HIGH-GROWTH PURE GOLD PRODUCER BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE 1 September 8, 2011

  2. 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

  3. Slide 3: Kinross Strategy

    KINROSS STRATEGY 3

  4. Slide 4: The Evolution of Kinross

    THE EVOLUTION OF KINROSS • DIVESTED non-core assets • STRENGTHENED operations, project development, exploration, permitting, government relations • STAKED best gold districts with undiscovered potential • EXPANDED exploration teams and drilling programs • BUILDING new gold mines to drive growth • IN

  5. Slide 5: Kinross Today

    KINROSS TODAY • US$20 bn market capitalization* • 2.6 – 2.7 mm equivalent ounces of gold production in 2011e(1) • Highest-growth senior: 77% growth expected by 2015e(1) • Track record of success in new districts & challenging regions * Market capitalization as of market close September 6, 2011. (1)

  6. Slide 6: Focused in the World's Best Districts

    FOCUSED IN THE WORLD’S BEST DISTRICTS Dvoinoye Kupol Fort Knox Kettle River-Buckhorn Round Mountain Tasiast Chirano Fruta del Norte Crixas Paracatu La Coipa Lobo-Marte Maricunga Cerro Casale 10 operating mines 5 development projects 6

  7. Slide 7: Financial Strength & Discipline

    FINANCIAL STRENGTH & DISCIPLINE • ~$2.1 bn cash on balance sheet • $1.2 bn line of credit • $810 mm of adjusted cash flow(2) in first six months of 2011 MARKET CAP CASH AND CASH EQUIVALENTS ADJUSTED CASH FLOW(2) (US$ bn) (US$ mm) (US$ mm) $20 $1,091 Proceeds from debt offering Cash & cash equivalent

  8. Slide 8: Staking Districts, Adding Resources, Improving Grade

    STAKING DISTRICTS, ADDING RESOURCES, IMPROVING GRADE GOLD RESOURCES(3) 2P GOLD GRADE(3) EXPLORATION SPEND (mm oz.) (g/t) ($ mm) Proven & Probable Mineral Gold Reserves Measured & Indicated Mineral Gold Resources Inferred Gold Resources +220% +39% 0.71 +992% $185 - $195 20.0 0.51 24.7 2.9 63.3 6.1 $1

  9. Slide 9: Improving Grade Profile

    IMPROVING GRADE PROFILE Kinross Barrick Goldcorp Newmont 1.5 Proven and Probable Reserve Grade Growth 1.4 1.3 1.2 (2005 index = 1) 1.1 1.0 0.9 0.8 0.7 0.6 0.5 2005 2006 2007 2008 2009 2010 Source: Company reports 9

  10. Slide 10: Transforming Kinross

    TRANSFORMING KINROSS 10

  11. Slide 11: Growth Through Project Development

    GROWTH THROUGH PROJECT DEVELOPMENT 4.5 – 4.9 Gold equivalent production (mm oz.) 2.3 2.6 – 2.7 1.5 (1) (1) 2006 2010 2011e 2015e (1) Please refer to endnote #1. 11

  12. Slide 12: Leading Development in New Regions

    LEADING DEVELOPMENT IN NEW REGIONS • FIRST North American gold mining company to develop a mine in Russia • LARGEST precious metals producer in Brazil and Chile • PIONEERING development in Washington State and Alaska • ESTABLISHED and expanding government relations and corporate social responsibilit

  13. Slide 13: Project Pipeline

    PROJECT PIPELINE Project 2011E 2012E 2013E 2014E 2015E Paracatu desulphurization Organic growth Paracatu 3rd ball mill Maricunga SART plant Paracatu 4th ball mill Dvoinoye Tasiast Development Lobo-Marte Fruta del Norte Cerro Casale Conceptual timeline based on current Company estimates. 13

  14. Slide 14: Tasiast, Mauritania

    TASIAST, % HET ty AR 21 PRR ma a nara

  15. Slide 15: Mauritania: Key Facts

    MAURITANIA: KEY FACTS • Among most sparsely-populated countries Tasiast (Kinross) - Au Askaf (Xstrata) – Iron Ore • Gained independence from France in 1960 Guelb el Aouj (Xstrata) – Iron Ore Lebtheinia (Xstrata) – Iron Ore • Islamic state and democratic republic  President Aziz elected in July 2009

  16. Slide 16: Tasiast, Mauritania

    TASIAST, MAURITANIA Greenstone Rocks • Expanded drilling program Banded Iron Fm Intrusives focused around existing Tasiast Felsic Volcanics Greenschist mine Tenements Tasiast Shear 2010 Resource Shell • Only 8 km of 80 km strike length tested 20.0 km 16

  17. Slide 17: Resource Growth at Tasiast

    RESOURCE GROWTH AT TASIAST(3,5) 4.6 Gold ounces (millions) 8.6 5.1 9.1 1.9 2.1 1.4 0.8 9.2 9.3 7.6 7.6 5.4 3.7 Year-end 2008 November 2009 September 2010 November 2010 Year-end 2010 June 2011 Inferred Mineral Resources Measured & Indicated Mineral Resources Measured & Indicated Mineral Resources (in

  18. Slide 18: Tasiast Long-Section

    TASIAST LONG-SECTION TA05154RD TA05152RD 45m @1.22 g/t Au 61m @ 1.75 g/t Au GXM >= 250 TA05148DD 22m @ 4.49 g/t Au, and 200 to 250 13m @ 0.95 g/t Au 150 to 200 100 to 150 50 to 100 TA05149DD 25 to 50 9m @ 4.32 g/t Au Assays pending < 25 TA05162RD $1300 Pit 56m @ 1.55 g/t Au Shell TA05155ARD 0 2000 I

  19. Slide 19: Tasiast District

    TASIAST DISTRICT • Regional soil geochemistry and drilling C67 • Highly prospective district, large scale mineral system • Drilling now focused on:  Testing extensions of mineralization intersected in previous drilling at the C69 and Charlize targets  Awaiting assay results on C67 to guide further

  20. Slide 20: Tasiast Scoping Study

    TASIAST SCOPING STUDY • Scoping study complete • New processing plant with expected 60,000 tpd throughput – total 68,600 tpd  1 SAG and 2 ball mills ordered • 16-year mine life • Expected avg. annual production of 1.5 mm oz. (first 8 full yrs)  Expected avg. grade of 2 g/t  Expected avg. recoveri

  21. Slide 21: Tasiast, Mauritania

    TASIAST, MAURITANIA • Expansion project remains on schedule:  Construction expected to start mid-2012  Project start-up of 60,000 tpd mill is targeted for early 2014 • New opportunities to optimize the project to be considered as part of the feasibility study  Exploring natural gas / LNG options

  22. Slide 22: Fruta del Norte, Ecuador

    FRUTA DEL NORTE, ECUADOR e Se

  23. Slide 23: Fruta del Norte, Ecuador

    FRUTA DEL NORTE, ECUADOR • Prepared pre-feasibility study and technical report • Underground operation estimated 16-year mine life • LOM avg. production estimate : 410k Au eq. oz. / year  Expected avg. gold grade of 8.07 g/t  Expected avg. gold recovery of 93% • LOM avg. cost of sales expected to

  24. Slide 24: Fruta del Norte, Ecuador

    FRUTA DEL NORTE, ECUADOR • Advancing the exploration decline:  Construction of the portal high wall is complete and 70 metres of the exploration decline has been developed to date  On target to develop 600 metres by year-end 2011  Exploration decline is expected to be complete in 2013 • Advancing

  25. Slide 25: Lobo-Marte, Chile

    LOBO-MARTE, CHILE 25

  26. Slide 26: Lobo-Marte, Chile

    LOBO-MARTE, CHILE • Completed pre-feasibility study update • 10-year mine life • Expected 47,000 tpd heap leach with SART plant • Annual production estimate: 350k oz. per year  Expected avg. grade: 1.17 g/t Lobo Final Pit  Expected avg. recovery: 60-70% 2010 GOLD RESERVES AND RESOURCES(3) TONNES G

  27. Slide 27: Lobo-Marte, Chile

    LOBO-MARTE, CHILE • 20,000 metre drill campaign 70% complete  Geotechnical drilling has been completed  Geotechnical and mine block models expected to be completed in Q3 2011 • Environmental Impact Assessment was submitted in June, ahead of schedule • Feasibility study expected in Q4 2011 • Expect

  28. Slide 28: Kupol & Dvoinoye, Russia

    KUPOL & DVOINOYE, RUSSIA 28

  29. Slide 29: Increasing Kupol Ownership to 100%

    INCREASING KUPOL OWNERSHIP TO 100% • Kinross increased Kupol ownership to 100%  Includes the Kupol East-West exploration licenses • Total consideration: approx. $350 million  Financed through proceeds of Harry Winston share sale and non-recourse debt facility of $200 million • Consolidates Kinross

  30. Slide 30: Dvoinoye, Russia

    DVOINOYE, RUSSIA • Underground mine with an expected 8-year mine life  Expected avg. output of 900 tonnes per day (2013-2020) • Ore to be processed at the Kupol mill  Throughput expected to increase to 4,000 tpd • Initial capital estimate: ~$300 million • Development of exploration decline advance

  31. Slide 31: Kinross Now

    KINROSS NOW 31

  32. Slide 32: Bank of America Merrill Lynch: P / NAV

    BANK OF AMERICA MERRILL LYNCH: P / NAV 2.2 2.0 1.9 1.8 1.7 1.5 AGNICO GOLDCORP YAMANA NEWMONT BARRICK KINROSS Source: Bank of America Merrill Lynch research – September 5, 2011 32

  33. Slide 33: Bank of America Merrill Lynch: P / 2011e CFPS

    BANK OF AMERICA MERRILL LYNCH: P / 2011e CFPS 18.2 15.4 13.0 10.0 8.5 8.3 GOLDCORP AGNICO KINROSS YAMANA BARRICK NEWMONT Source: Bank of America Merrill Lynch research – September 5, 2011 33

  34. Slide 34: Total Resource Ounces per $1,000 Invested

    TOTAL RESOURCE OUNCES PER $1,000 INVESTED 5.4 Ounce of Total Resources Acquired per $1,000 invested 4.7 4.2 4.2 3.6 (oz./$1,000) 3.1 2.9 2.4 KINROSS BARRICK NEWCREST NEWMONT YAMANA AGNICO IAMGOLD GOLDCORP Source: Company reports and Bloomberg L.P. – September 6, 2011 34

  35. Slide 35: 2011e Production per $1,000 Invested

    2011e PRODUCTION PER $1,000 INVESTED 0.17 Ounces of Estimated 2011 Production per $1,000 invested 0.15 0.13 (oz./$1,000) 0.09 0.09 0.08 0.06 0.06 NEWMONT BARRICK KINROSS AGNICO YAMANA NEWCREST IAMGOLD GOLDCORP Source: Company reports and Bloomberg L.P. – September 6, 2011 35

  36. Slide 36: Key Objectives for 2011

    KEY OBJECTIVES FOR 2011   Complete Tasiast scoping study   Declare NI 43-101 resource at Dvoinoye  Complete Fruta del Norte pre-feasibility study   Complete Dvoinoye scoping study   Complete purchase of Kupol minority interest    Commence construction on La Zarza exploration decline at F

  37. Slide 37: Kinross Is…

    KINROSS IS… 1. Pure gold and silver 2. Strength from operations 3. Robust cash flow today 4. Financial capacity to build new mines 5. Best growth profile of the senior gold producers 37

  38. Slide 38: Appendix

    APPENDIX 38

  39. Slide 39: Fort Knox, USA (100%)

    FORT KNOX, USA (100%) • Located in Alaska • Expansion and new heap leach to extend mine life OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) H1 2011 142,774 $655 FY 2010 349,729 $550 2010 GOLD RESERVES AND RESOURCES(3) TONNES GRADE OUNCES (thousands) (g/t) (thousands) 2P Reserves 2

  40. Slide 40: Round Mountain, USA (50%)

    ROUND MOUNTAIN, USA (50%) • Kinross-operated JV with Barrick • Located in Nevada, USA • Open-pit mine OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) H1 2011 89,272 $764 FY 2010 184,554 $657 2010 GOLD RESERVES AND RESOURCES(3) TONNES GRADE OUNCES (thousands) (g/t) (thousands) 2P Re

  41. Slide 41: Kettle River-Buckhorn, USA (100%)

    KETTLE RIVER-BUCKHORN, USA (100%) • Entered production in Q4/08 • Small foot-print, underground mine • Near-mine exploration targets OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) H1 2011 92,089 $389 FY 2010 198,810 $330 2010 GOLD RESERVES AND RESOURCES(3) TONNES GRADE OUNCES (tho

  42. Slide 42: Kupol, Russia (100%)

    KUPOL, RUSSIA (100%) • Completed transaction increasing ownership to 100% from 75% on April 27, 2011 • 3,000 tpd mill with open-pit and underground OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) H1 2011 323,726 $335 FY 2010 554,008 $319 Kinross increased its ownership in the Kupol

  43. Slide 43: Paracatu, Brazil (100%)

    PARACATU, BRAZIL (100%) • Recoveries near target • Major expansion commissioning • 3rd ball mill commissioned; 4th ball mill to be operational in H1 2012 OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) H1 2011 200,320 $744 FY 2010 482,397 $535 2010 GOLD RESERVES AND RESOURCES(3) TO

  44. Slide 44: Crixas, Brazil (50%)

    CRIXAS, BRAZIL (50%) • JV with AngloGold Ashanti • Underground mine located in the Brazil OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) H1 2011 30,251 $796 FY 2010 74,777 $486 2010 GOLD RESERVES AND RESOURCES(3) TONNES GRADE OUNCES (thousands) (g/t) (thousands) 2P Reserves 3,283

  45. Slide 45: La Coipa, Chile (100%)

    LA COIPA, CHILE (100%) • Gold/silver mine in the Maricunga district • Comprehensive exploration program OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) H1 2011 105,313 $651 FY 2010 196,330 $648 2010 GOLD RESERVES AND RESOURCES(3) TONNES GRADE OUNCES (thousands) (g/t) (thousands) 2P

  46. Slide 46: Maricunga, Chile (100%)

    MARICUNGA, CHILE (100%) • Located the highly prospective Maricunga District • Open pit, heap leach operation OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) H1 2011 128,845 $445 FY 2010 156,590 $746 2010 GOLD RESERVES AND RESOURCES(3) TONNES GRADE OUNCES (thousands) (g/t) (thousand

  47. Slide 47: Tasiast, Mauritania (100%)

    TASIAST, MAURITANIA (100%) • Open-pit mine ~300 km north of the city of Nouakchott • Remote, flat, sparsely populated desert OPERATING RESULTS PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) H1 2011 98,570 $616 FY 2010 56,611 $755 2010 production and costs for Tasiast reflect Kinross’ ownership peri

  48. Slide 48: Chirano, Ghana (90%)

    CHIRANO, GHANA (90%) • 90% owned by Kinross; Government of Ghana holds a 10% carried interest • 9 open-pits and 2 recently-discovered underground deposits OPERATING RESULTS (90%) PRODUCTION PRODUCTION COST (Au eq. oz.) ($/oz.) H1 2011 107,942 $684 FY 2010 80,298 $610 Production and costs for Chirano

  49. Slide 49: Endnotes

    ENDNOTES 1) For more information regarding Kinross’ production and cost forecasts for 2011, please refer to the press release dated August 10, 2011. For Kinross’ production target for 2015, please refer to the press release dated February 16, 2011. Both news releases are available on our website at

  50. Slide 50: Kinross Gold Corporation

    KINROSS GOLD CORPORATION 25 YORK STREET, 17TH FLOOR TORONTO, ON M5J 2V5 WWW.KINROSS.COM 50

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