Kinross Gold Corporation · TSX:K
Kinross Gold — BMO 32nd Global Metals & Mining Conference (March 2023)
45 slides from Kinross Gold's conference presentation, March 2023
Slide 1: Delivering Value.
Delivering Value. March 2023
Slide 2: Cautionary Statement on Forward-Looking Information
Kinross Gold Corporation March 2023 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
Slide 3: Table of Contents
Table of Contents Company Overview 4 Great Bear 17 Asset Highlights 27 33
Slide 4: Who is Kinross?
Kinross Gold Corporation March 2023 Who is Kinross? AMERICAS STRONG FOCUSED Portfolio PRODUCTION OUTLOOK 6 mines LARGE GOLD GEOGRAPHICALLY STABLE DYNAMIC COMMITTED TO PRODUCER, DIVERSIFIED PRODUCTION CAPITAL RESPONSIBLE HIGHLY LIQUID PRODUCER +2MOZ ALLOCATION MINING • ~US$4.8 billion • Americas acco
Slide 5: High Quality Portfolio of Assets
March 2023 High Quality Portfolio of Assets Two top tier(1) mines account for ~50% of production 2023E Gold Equivalent Production(2) Fort Knox, U.S.A. Manh Choh, U.S.A. 29% Great Bear, Canada ~2.1M Curlew, U.S.A Head Office, Canada ounces Bald Mountain, U.S.A. Round Mountain, U.S.A. 71% Approximate
Slide 6: Kinross Investment Case
Kinross Investment Case March 2023 3.17Production (Moz, attributable, outlook) Stable Americas-focused business, two Top Tier(1) assets Value in the Americas(4) Americas focus not reflected in valuation 1.4x Price / Net Asset Value ~ 2.1 ~2.1(3) 1.1x % of NAV in Americas 1.1x 1.0x ~2.0(2) ~2.0(3) 0.
Slide 7: Market Undervaluing Kinross' Assets
Kinross Gold Corporation March 2023 Market Undervaluing Kinross’ Assets Substantial production not reflected in market valuation 2023E Gold Production (1) Market Capitalization (2) $14.6 2.4 2.2 2.1 $10.6 Million AuEq oz 1.6 Average: 1.5 Moz $9.0 $4.8 $8.7 Average: $8.6 B US$B 1.4 0.9 $5.1 0.7 $3.7
Slide 8: Top Two Assets Justify Market Cap
Kinross Gold Corporation March 2023 Top Two Assets Justify Market Cap Value of two top-tier assets greater than market cap Market Capitalization vs. Asset Value $6.3 $5.1 $4.8 US$B (2) (1) Market Capitalization NPV of Kinross NAV (1) Tasiast & Paracatu (1) Calculated as average of Net Present Value
Slide 9: Attractive Valuation
Kinross Gold Corporation March 2023 Attractive Valuation Trading at compelling Cash Flow and EBITDA multiples P / 2023E Operating Cash Flow Per Share(1) Enterprise Value / 2023E EBITDA(2) 9.9x 9.1x Average: 6.8x 9.2x 7.1x 8.0x 7.8x Average: 6.2x 6.4x 6.9x 5.5x 5.8x 5.1x 4.8x 4.5x 4.0x (1) Calculated
Slide 10: Enhanced Share Buyback Program
Kinross Gold Corporation March 2023 Enhanced Share Buyback Program Attractive return of capital while protecting investment grade balance sheet • Compelling capital deployment opportunity to enhance per-share metrics and shareholder returns 2022 Buyback: • Quarterly dividend maintained $300M • Buyba
Slide 11: Prioritizing Resource Conversion
Kinross Gold Corporation March 2023 Prioritizing Resource Conversion (1) Significant potential for mine life extension at existing assets 25 20 15 Years 10 5 0 La Coipa Bald Mountain Paracatu Round Fort Knox Tasiast Lobo-Marte Mountain Expected Reserve Life Potential Resource Life (1) Note: Incorpor
Slide 12: Strong Liquidity & Financial Flexibility
• Kinross Gold Corporation March 2023 Strong Liquidity & Financial Flexibility Liquidity Position (1) Financial Flexibility • Total liquidity(1) of ~$1.8 billion, including $418 million of cash and cash equivalents • Manageable leverage profile As at • Investment grade credit ratings from three majo
Slide 13: Manageable Debt Profile
Kinross Gold Corporation March 2023 Manageable Debt Profile Senior notes are rated investment grade by all three rating agencies Debt Schedule Debt Ratings Agency Rating S&P BBB- (Stable) Moody’s Baa3 (Stable) $500 Fitch BBB (Stable) Debt Breakdown(1) $ millions $500 $1,000 Interest Rate Amount Due
Slide 14: Disciplined Capital Allocation Strategy
Kinross Gold Corporation March 2023 Disciplined Capital Allocation Strategy Reinvesting in our Business 2023 Guidance • Sustaining Capex – maintaining our existing operations ~$510M(1)(2) safely and to world-class environmental standards • Expansion Projects – pursuing attractive returns by leveragi
Slide 15: Inflationary Pressures
Kinross Gold Corporation March 2023 Inflationary Pressures How inflationary pressure affects our cost structure Inputs Direct Cost Drivers Estimated Impacts Ground support Ground Grindingsupport media Grinding media Maintenance/supplies Steel OPEX Power costs Fuel Power Explosives Lubricants ANNUAL
Slide 16: Advancing the Project Pipeline
Kinross Gold Corporation March 2023 Advancing the Project Pipeline Expected project milestones on track(1) 2022 >> 2023 >> 2024 Late February Great Bear Q1 Great Bear 2024 Great Bear Acquisition Closed Initial Resource and Technical Report Results of PEA Q1 La Coipa Restart Q1 La Coipa 2024 Gr
Slide 17: Great Bear
Great Bear 17
Slide 18: Great Bear Project Overview
Kinross Gold Corporation March 2023 Great Bear Project Overview High grade mineralization across the property LP Zone Open along strike and at depth Disseminated high grade mineralization, analogous to Hemlo N Vein hosted and sulphide replacement high- Limb grade gold mineralization Hinge 5 km typic
Slide 19: Initial Contained Mineral Resource Estimate
Kinross Gold Corporation March 2023 Initial Contained Mineral Resource Estimate1 2022 drilling and technical program have resulted in a high-grade initial resource $1,700/OZ INITIAL RESOURCE Tonnes Grade (Au Ounces (000’s) g/t) (000’s) Indicated Open Pit 33,110 2.57 2,737 Inferred Open Pit 8,400 2.2
Slide 20: Majority of Resource Contained in High Grade Core
Kinross Gold Corporation March 2023 Majority of Resource Contained in High Grade Core Targeting higher grade mineralization in the early years Contained Ounces Moz 6 5 4 Inferred Inferred Inferred 3 Inferred 2 Indicated Indicated Indicated 1 Contained Resource Open Pit High Grade Underground High Gr
Slide 21: High Grade Core has Strong Spatial Continuity
Kinross Gold Corporation March 2023 High Grade Core has Strong Spatial Continuity Resilient pit shell driven by the high-grade core Open Pit Resource High Grade Core of the Open Pit Resource Based on a 0.5 g/t Cut Off Grade Based on a 0.9 g/t Cut Off Grade N Legend > 0.9 g/t 0.5 to 0.9 g/t 1km 21
Slide 22: The Initial Resource is Just the Beginning
Kinross Gold Corporation March 2023 The Initial Resource is Just the Beginning Intercepts below 1,000m point to a potential long-life underground NORTHWEST SOUTHEAST LP - DISCOVERY LP - CENTRAL LP - VIGGO BR-674 4.1 m @ 6.1 g/t BR-579 500 m BR-534 24.6 m @ 15.52 g/t BR-627 5.9 m @ 3.81 g/t 2.8 m @ 5
Slide 23: Exploration Decline
Kinross Gold Corporation March 2023 Exploration Decline Advanced exploration decline expected to enable efficient drilling of underground material NW Hinge Limb Portal LP Zone Resource Pit Shell SE Open Preliminary AEX Concept Open Conceptual Exploration Timeline Resource Stopes Au Grade (g/t) 2023
Slide 24: Great Bear Appears Similar to Hemlo
Kinross Gold Corporation March 2023 Great Bear Appears Similar to Hemlo Over 90% of Hemlo has been mined from underground at depths of greater than 500 m Hemlo Great Bear Hemlo has produced +20 Moz 0 RL Open Open 500 RL 1,000 RL Open Open Open 3 Shafts GRADE THICKNESS < 5 GxM 50 to 100 GxM 5 to 15 G
Slide 25: Additional Upside on Highly-Prospective Land Package
Kinross Gold Corporation March 2023 Additional Upside on Highly- Prospective Land Package 1 Transmission line Highway 105 Felsic – Intermediate Felsic Intrusive Ultramafic Mafic-Ultramafic Mafic (Calc-Alkaline?) 3 Sediments Great Bear property Where we see opportunity for growth: 3 2 Hinge & Limb 1
Slide 26: Targeted Path to Production at Great Bear
Kinross Gold Corporation March 2023 Targeted Path to Production at Great Bear Expected start of early works in early 2027 or late 2026, if permits received quickly ‘23 ‘24 ‘25 ‘26 ‘27 ‘28 ‘29 Project Studies Exploration Decline Permitting estimate in line with Environmental Baseline peers’ for feder
Slide 27: Asset Highlights
Asset Highlights 27
Slide 28: Q4 and 2022 Recap
Q4 and 2022 Recap Q4 Strength Paracatu Strongest production and cash flow quarter Second highest quarter on record. Gold of the year. ~600Koz produced in Q4 and grade and production increased as planned ~2Moz in 2022 Tasiast La Coipa Significant quarter-over-quarter Record production and grade in Q4
Slide 29: Tasiast Ramp-Up Progressing
Kinross Gold Corporation March 2023 Tasiast Ramp-Up Progressing Setting up for a strong 2023 • Achieved record production and record grades during Q4. Production of 143koz was up 8% quarter-over quarter • 24k project remains on schedule to reach throughput of 24ktpd by mid-2023, followed by a ramp-u
Slide 30: Tasiast Solar Project
Kinross Gold Corporation March 2023 Tasiast Solar Project Remains on schedule for completion in H2 2023 • The 34 MW solar power plant with 18 MW Preparation of solar power plant site battery system will provide ~20% of the site’s power, offsetting ~530 kt of greenhouse gas emissions over the life-of
Slide 31: La Coipa Ramp-Up on Track
Kinross Gold Corporation March 2023 La Coipa Ramp-Up on Track Strong production quarter in Q4 and well positioned for 2023 • Substantial progress in Q4, with production of 68koz La Coipa Mill Throughput Monthly Average • Throughput continued to ramp 15 up, reaching over 13 ktpd average for the secon
Slide 32: Round Mountain
Kinross Gold Corporation March 2023 Round Mountain Maintaining open pit optionality while exploring underground opportunities • Currently mining phases W1, W2 and other minor phases (shown in green) • Progressing underground potential at Phase X (orange star) in 2026 o Continuation of Phase W orebod
Slide 33: Round Mountain Phase X Underground
Kinross Gold Corporation March 2023 Round Mountain Phase X Underground – Spatial Overview Underground Focus: • Initiating UG decline at Phase X in H1 2023 Phase W3 Looking North East Study • Phase X expected to support high productivity long-hole open stoping Phase W2 • Exploration intercepts sugges
Slide 34: Alaska
Kinross Gold Corporation March 2023 Kinross Alaska Construction is progressing on schedule and on budget Manh Choh Reserve & Resource Estimates(1) • Procurement and contracting Tonnes Grade Ounces Grade Ounces advancing (thousands) (Au g/t) (Au koz) (Ag g/t) (Ag koz) Probable Reserves 2,755 7.88 698
Slide 35: Kettle River – Curlew Project
Kinross Gold Corporation March 2023 Kettle River – Curlew Project Underground drilling ongoing • Curlew project is a low sulfidation epithermal gold deposit located in northern Washington State, USA o Proximal to major state highway o 35km by paved road from 100% owned Kettle River mill and tailings
Slide 36: Reserve and Resources
Kinross Gold Corporation March 2023 Reserve and Resources Mineral inventory held stable net of divestments and depletion Kinross Mineral Resource Inventory(1)(2) Most significant changes: 2021 (Au koz.) Depletion (Au koz.) Additions (Au koz.) 2022 (Au koz.) %Δ • Gold price assumptions for mineral re
Slide 37: Global Mining Leader in ESG
Kinross Gold Corporation March 2023 Global Mining Leader in ESG (1) Environment Social Governance WATER MANAGEMENT • ~80% average water volume 99% >1 million INDEPENDENT BOARD recycling rate over the past 5 years of workforce hired from beneficiaries of • 8 of 9 Board members are GHG INTENSITY withi
Slide 38: Appendix
IX Append KINROSS
Slide 39: Endnotes
Kinross Gold Corporation March 2023 Endnotes 1) Kinross’ outlook represents forward-looking information and users are cautioned that actual results may vary. Please refer to the Cautionary Statement on Forward-Looking Information on slide 2 of this presentation. 2) All-in sustaining cost per equival
Slide 40: 2023 Capital Expenditures Guidance
Kinross Gold Corporation March 2023 2023 Capital Expenditures Guidance (17) Forecast 2023 sustaining, non-sustaining and total forecast capital expenditures are attributable and include Kinross’ share of Manh Choh (70%) capital expenditures. Actual results as reported for the year ended December 31,
Slide 41: Mineral Reserve and Mineral Resource Statement
Kinross Gold Corporation March 2023 MINERAL RESERVE AND MINERAL RESOURCE STATEMENT MINERAL RESERVE AND MINERAL RESOURCE STATEMENT GOLD PROVEN AND PROBABLE MINERAL RESERVES (1,4,5,6,7,8) Kinross Gold Corporation's Share at December 31, 2022 Kinross Proven Probable Proven and Probable Property Locatio
Slide 42: Mineral Reserve and Mineral Resource Statement
Kinross Gold Corporation March 2023 MINERAL RESERVE AND MINERAL RESOURCE STATEMENT MINERAL RESERVE AND MINERAL RESOURCE STATEMENT GOLD MEASURED AND INDICATED MINERAL RESOURCES (EXCLUDES PROVEN AND PROBABLE MINERAL RESERVES) (4,5,6,7,8,11,12,15) Kinross Gold Corporation's Share at December 31, 2022 K
Slide 43: Mineral Reserve and Mineral Resource Statement
Kinross Gold Corporation March 2023 MINERAL RESERVE AND MINERAL RESOURCE STATEMENT MINERAL RESERVE AND MINERAL RESOURCE STATEMENT GOLD INFERRED MINERAL RESOURCES (4,5,6,7,8,11,12,15) Kinross Gold Corporation's Share at December 31, 2022 Kinross Inferred Property Location Interest Tonnes Grade Ounces
Slide 44: Mineral Reserve and Mineral Resource Statement Notes
Kinross Gold Corporation March 2023 MINERAL RESERVE AND MINERAL RESOURCE STATEMENT NOTES (1) Unless otherwise noted, the Company's mineral reserves are estimated using appropriate cut-off grades based on an assumed gold price of $1,400 per ounce and a silver price of $17.50 per ounce. Mineral reserv
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