Kinross Gold Corporation · TSX:K
Kinross Gold — TD Newcrest Mining Conference 2010
19 slides from Kinross Gold's conference presentation, Jan 26, 2010
Slide 1: Delivering Disciplined Growth
Kinross Gold Corporation TD Newcrest Mining Conference January 26‐27, 2010 Delivering Disciplined Growth TD Newcrest Mining Conference Toronto, ON J January 26-27, 26 27 2010 Cautionary Statement on Forward‐Looking Information All statements, other than statements of historical fact, contained or in
Slide 2: Why Kinross?
Kinross Gold Corporation TD Newcrest Mining Conference January 26‐27, 2010 Why Kinross? • Growing cash flow – Production has risen while margins have expanded – CFPS(1): 5 yyr CAGR : 20% – Strong balance sheet: $620 mm (year‐end ‘09) • Pipeline of future opportunities – Increasing reserve and resour
Slide 3: Increasing Demand for Gold
Kinross Gold Corporation TD Newcrest Mining Conference January 26‐27, 2010 Increasing Demand for Gold $130 $1,000 Investment / Other $120 Total Fabrication $900 $110 Gold Price (US$/oz) $800 Tottal Gold Demand (US$ billions) $100 $90 $700 Gold Price (US$/oz.) $80 $600 $70 $500 $60 $50 $400 $40 $300
Slide 4: Growing Margins and Growing Cash Flow
Kinross Gold Corporation TD Newcrest Mining Conference January 26‐27, 2010 Growing Margins and Growingg Cash Flow • 37% production growth: 2007 to 2009e • Margins up 356% since 2002 • CFPS growth – 20% 5‐yr CAGR* *based on full-year results (‘02 – ’08) 7 Focused Portfolio in Five Countries Portfolio
Slide 5: 2010 Production Guidance
Kinross Gold Corporation TD Newcrest Mining Conference January 26‐27, 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% $490 – 555 2 30+ Russia(6) 495 – 525
Slide 6: Expanding Margins
Kinross Gold Corporation TD Newcrest Mining Conference January 26‐27, 2010 Expanding Margins 2002 – YTD Q3’09: • Average realized gold price: +203% $487 • Kinross’ Ki ’ attributable tt ib t bl costt off sales i (7): +356% l margin $436 +356% Costt of Sales Margin ($/oz.) $329 $279 $161 $170 $135 $10
Slide 7: YTD Q3 2009 Results
Kinross Gold Corporation TD Newcrest Mining Conference January 26‐27, 2010 YTD Q3 2009 Results COS Margin(6) Realized +9% (7) (in millions, except ounces and YTD YTD % Change COS Margin Gold Price $492/oz per share amounts) +9% Q3/08 Q3/09 +4% 4% $487/oz Gold equivalent production $926/oz 1,289,326
Slide 8: Gold Resource Growth: 13% 5-yr CAGR
Kinross Gold Corporation TD Newcrest Mining Conference January 26‐27, 2010 Gold Resource Growth: 13% 5‐yr CAGR 140.0 Inferred Resources (3,10) 80.0 Measured & Indicated Resources (3,9) Proven and Probable Reserves (3) 21.2 120.0 70.0 Total ounces per 1,000 shares (2,3) 7.0 100.0 Total Resources (mm
Slide 9: Organic Growth Opportunities
Kinross Gold Corporation TD Newcrest Mining Conference January 26‐27, 2010 Organic Growth Opportunities Paracatu Third Ball Mill • 24’ 15‐megawatt ball mill to be delivered mid‐2010 • Installation and commissioning to be completed in H1 2011 • Total capital cost ~$97 mm Maricunga Expansion • Increas
Slide 10: Dvoinoye – High Grade Deposit
Kinross Gold Corporation TD Newcrest Mining Conference January 26‐27, 2010 Dvoinoye – High Grade Deposit(11) • Existing small‐scale open‐pit mine: • 250 tpd mill operating 6 months of the year • Kinross plans to evaluate an underground operation Dvoinoye deposit & Vodorazdelnaya concession • Plan to
Slide 11: Russia Today
Kinross Gold Corporation TD Newcrest Mining Conference January 26‐27, 2010 Russia Today • Highly‐prospective geology • Seeking admission to WTO • FDI increasing as BRIC nations grow • Kinross with unique skill set and experience o 15‐year operating track record o Strong partnerships in country o Goo
Slide 12: Fruta del Norte, Ecuador
Kinross Gold Corporation TD Newcrest Mining Conference January 26‐27, 2010 Fruta del Norte, Ecuador • Project parameters under consideration: o Underground mine Quito o 3,000 tpd milling capacity • Recent milestones: o Ecuador Mining Law approved (January ‘09) o Environmental Management Plan complet
Slide 13: Valuation and Performance
Kinross Gold Corporation TD Newcrest Mining Conference January 26‐27, 2010 Valuation and Performance 25 TD: P / NAV 2.1 17 1.7 1.5 1.5 1.3 AEM GG ABX KGC AUY Source: TD Newcrest research – January 25, 2010 26 13
Slide 14: TD: P / CF
Kinross Gold Corporation TD Newcrest Mining Conference January 26‐27, 2010 TD: P / CF 18.7 15 4 15.4 12.4 10.7 8.9 GG AEM KGC AUY ABX Source: TD Newcrest research – January 25, 2010 27 Endnotes (1) Unless otherwise stated, all cash flow and cash flow per share figures in this presentation are before
Slide 15: Fort Knox, USA (100%)
Kinross Gold Corporation TD Newcrest Mining Conference January 26‐27, 2010 Appendix pp 29 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 Nine months ended Production Cost of Sales S
Slide 16: Round Mountain, USA (50%)
Kinross Gold Corporation TD Newcrest Mining Conference January 26‐27, 2010 Round Mountain, USA (50%) • Kinross‐operated JV with Barrick • Located in Nevada, USA • Open pit mine Operating Results Nine months ended Production Cost of Sales September 30 (Au eq. oz) ($/oz) 2009 160,873 $527 2008 192,427
Slide 17: Kupol, Russia (75%)
Kinross Gold Corporation TD Newcrest Mining Conference January 26‐27, 2010 Kupol, Russia (75%) • 3,000 tpd mill with open‐pit and underground operation • 2009 first full year of production Operating Results Nine months ended Production Cost of Sales September 30 (Au eq. oz) ($/oz) 2009 529,421 $255
Slide 18: Crixas, Brazil (50%)
Kinross Gold Corporation TD Newcrest Mining Conference January 26‐27, 2010 Crixas, Brazil (50%) • JV with AngloGold Ashanti • Underground mine located in the Brazil Operating Results Nine months ended Production Cost of Sales September 30 (Au eq. oz) ($/oz) 2009 56,624 $430 2008 65,506 $313 Reserves
Slide 19: Maricunga, Chile (100%)
Kinross Gold Corporation TD Newcrest Mining Conference January 26‐27, 2010 Maricunga, Chile (100%) • Located the highly prospective Maricunga District • Open pit, heap leach operation • Expansion under review Operating Results Nine months ended Production Cost of Sales September 30 (Au eq. oz) ($/oz