Kinross Gold Corporation · TSX:K
Kinross Gold — BMO Nesbitt Burns Conference 2005
35 slides from Kinross Gold's conference presentation, Mar 3, 2005
Slide 1: Kinross Gold Corporation Corporate Presentation
BMO Nesbitt Burns Conference March 3, 2005 Saddlebrook Resort, Florida dedicated to being world class Kinross Gold Corporation Corporate Presentation
Slide 2: Forward Looking Statement
Forward Looking Statement Certain statements set forth in this presentation constitute "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties and other factors that may cause the actual resul
Slide 3: Kinross at a Glance
Kinross at a Glance Key Facts Key Attributes • Senior gold producer, • Excellent spread of 2005 estimated gold geopolitical risk equivalent production of approx. 1.6 million ozs • Modern, low cost asset @ $250 to $255 per oz. base total cash cost • Exciting pipeline of • ~3,400 employees in 6 develo
Slide 4: Our Global Producing Assets
Kinross Gold Corporation our global producing assets Fort Knox (100%) Kubaka (98.1%) Alaska, USA (Open Pit) Magadan, Russia (Open Pit, U/G) Musselwhite (32%) Ontario, Canada (U/G) Porcupine (49%) Kettle River (100%) Ontario, Canada (Open Pit, U/G) Washington, USA (U/G) Round Mountain (50%) Nevada, U
Slide 5: Kinross Goals
Kinross Goals Ø Extend Mine Life Ø Be a Good Operator Ø Sustainable Growth and Development Ø Simplify the Company
Slide 6: Growth and Development: Reserve Replacement – 2004E
Growth and Development: Reserve Replacement – 2004E 20 4.3 19.4 18 Millions of ounces 16 2.9 14.1 (1.9) 12 8 4 0 31-Dec-03 Depletion Technical Acquisitions 31-Dec-04E ($325) Additions ($350) challenging opportunities require innovative strategies
Slide 7: Reserve Growth (excluding production)
Reserve Growth (excluding (excluding production) production) New 2P Reserves Added in 2004 Paracatu Refugio Fort Knox PJV Round Mtn La Coipa Increases Musselwhite Acquisitions Crixas 0 1000 2000 3000 4000 5000 6000 7000 Reserve Ounces (000's) challenging opportunities require innovative strategies
Slide 8: Reserve and Resource History
Reserve and Resource History 35 30 25 Ounces (millions) 20 15 10 5 0 2000 2001 2002 2003 2004 2005e Proven and Probable Measured and Indicated
Slide 9: Discovery Cost Analysis (ex Paracatu)
Discovery Cost Analysis (ex Paracatu) 4,000.0 23.46 25.00 3,057.0 Ounces of Gold (000) 3,000.0 20.00 US$/ounce 15.81 2,000.0 15.00 1,511.5 13.08 1,255.0 1,000.0 626.6 10.00 0.0 5.00 -267.1 -1,000.0 0.00 2000 2001 2002 2003 2004 Year Reserve additions 3-year mean cost 3-Yr Average Discovery Cost has
Slide 10: Be a Good Operator
Be a Good Operator Production - Budget Production - Actual Total Cash Cost - Budget Total Cash Costs - Actual 600 250 500 200 000s gold equivalent ounces 400 150 US dollars 300 100 200 50 100 0 0 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004E Q4 2004E challenging opportunities require inno
Slide 11: 2004 - 2005 Production
000s ounces 100 200 300 400 0 Fort Knox Round Mountain Porcupine Kubaka Paracatu 2004 – 2005 Production La Coipa Crixas Musselwhite New Britannia Kettle River 2004 Actual 2004 Budget Lupin 2005 Estimate Refugio
Slide 12: Optimizing... Paracatu Expansion (100%)
Paracatu Expansion (100%) (100%) Optimizing…
Slide 13: Paracatu Acquisition
Paracatu Acquisition Ø Purchased 51% of Paracatu from Rio Tinto for $260 million, transaction closed December 31, 2004 Ø Kinross is 100% owner and operator Ø Paracatu mine life greater than 20 years Ø Increases Kinross’ proven and probable gold reserves by 4.2 million oz. Ø Eliminates one joint vent
Slide 14: Paracatu Expansion (100%)
Paracatu Expansion (100%) (100%) Ø Increase milling capacity and improve efficiency resulting in: • Increased gold recoveries • Lower costs • Increased resources due to lower cutoff grade Ø Increase production to 250,000 oz/yr (100%) thru 2025 • Average yearly production in first 5 years of +300,000
Slide 15: Paracatu Expansion: Addition of Grinding Capacity (18 Mtpa)
Paracatu Expansion (100%) (100%) ADDITION OF GRINDING CAPACITY 18 Mtpa Crushing Plant Existing Ball Mills P80 = 75 µm To Flotation and Cyanidation
Slide 16: Paracatu Expansion: Addition of Grinding Capacity (30 Mtpa)
Paracatu Expansion (100%) (100%) ADDITION OF GRINDING CAPACITY 30 Mtpa Crushing 38 ft SAG Plant Existing Ball Mills P80 = 75 µm To Flotation and Cyanidation
Slide 17: Paracatu Expansion: Staged Addition of Grinding Capacity (50 Mtpa)
Paracatu Expansion (100%) (100%) STAGED ADDITION OF GRINDING CAPACITY 50 Mtpa P80 = 1000 µm 2 New Ball Mills 38 ft SAG 24 x 34 ft 16 Mtpa P80 = 1000 µm P80 = 75 µm Existing Ball Mills New Flotation Plant P80 = 75 µm Upgraded Existing To Flotation and Cyanidation Hydromet Plant
Slide 18: Paracatu Expansion: Advantages and Critical Issue
Paracatu Expansion (100%) (100%) Advantages • No interference with ongoing production • Can be implemented in stages with no delays on current plan Critical Issue • Licensing for pumping extra supplemental water from nearby rivers
Slide 19: Paracatu Expansion (100%)
Paracatu Expansion (100%) (100%) 2007 2008 2009 2010 Total Ore Processed (ton 000) 22,272 28,516 30,046 30,046 Wi Blend (kWh/t) 6.30 8.44 7.23 8.19 Total Oper. Cost (US$/ton) 2.11 2.17 2.02 2.06 Total Oper. Cost (US$/oz.) 181 179 178 162 Total Gold Production (kg) 8,074 10,777 10,601 11,880 Total Go
Slide 20: 2005 Drilling Program
2005 Drilling Program 398,000E 300,000E 302,000E 8,100,000N Mineral Rights and Surface Access Area Brazil $400 Paracatu Scoping RPM Mine Pit Crest Plant Rio de Janeiro Section F Section 9 Paracatu Toe Property 8,098,000N Section 20 Mine grade ore Dec.04 Low grade ore Section 10200N Pit Outline Old d
Slide 21: Paracatu – West Rico Creek
Paracatu – West Rico Creek Cross Section 10,100N (Looking North) 7,500E 8,000E 8,500E Surface 0.59g/t Au / 111m WCR-706 0.50g/t Au / 16m $400 Scoping Pit Outline 600m Elev. 0.48g/t Au / 69m open west 0.47g/t Au / 99m 0 100 200 metres 400m Elev. 0.60g/t Au / 80m 100m 0.44g/t Au / 144m South Existing
Slide 22: Paracatu - Phase A
Paracatu - Phase A (Pit Depth Exploration) Cross Section 9 (Looking Northwest) 3,000E 3,200E 3,400E Current K18.5,18.5 K2020 Design Pit K2121 0.30g/t / 29m 800m Elev. 0.40g/t Au / 18m 0.37g/t Au / 48m 700m Elev. 0.35g/t Au / 100m 0 50 100 metres Existing drill hole Non-Calha ore (1,000-2,500ppm As P
Slide 23: Fort Knox (100%)
Fort Knox (100%) (100%)
Slide 24: Fort Knox – 7,600E (looking west)
Fort Knox – 7,600E (looking (looking west) west) 9,000E 10,000E 11,000E South North 2,000 ft. Ultimate FFC-04-727 Pit Current Pit $400 Pit Shell 0.038opt Au/120ft. 0.106opt Au/20ft. 0.031opt Au/10ft. 0. 048opt Au/10ft. 1,000 ft. Open 0.031opt Au/10ft. Granite Schist 0.291opt Au/15ft. Mineralized zon
Slide 25: Round Mountain (50%)
Round Mountain (50%) (50%) Nice Photo of Round Mountain?
Slide 26: Round Mountain (50%)
Round Mountain (50%) (50%) Finger Dump Fairview South Pad Ramp
Slide 27: Gold Production Estimate Base and Bridge
Round Mountain (50%) (50%) Gold Production Estimate 800 Base and Bridge 700 Bridge 600 GH RM +Offloads 500 Ounces (000) 400 300 200 100 - 2005 2006 2007 2008 2009 2010 2011 2012 100% basis
Slide 28: Round Mountain (50%) 2004 Work and 2005 Plans
Round Mountain (50%) (50%) 2004 Work 110,000 E Phase 1 Expansion Drill 1000’ Program § 183 holes completed § 39,000m (127,000ft) drilled §Dec 31, 2004 Resources US$400/oz US450/oz M&I 0.58m oz 1.00m oz Inferred 0.54m oz 0.91m oz Section 111,700N Total 1.12m oz 1.91m oz 2005 Plans Phase 2 Expansion D
Slide 29: Round Mountain Pit Expansion Cross Section
Round Mountain, Round Mountain Pit (50%) (50%) Expansion Cross Section 111,700N, Looking North W 108,000E 110,000E 112,000E E Phase 2 Potential Pit Expansion 6,000 ft. Current Pit ? Current Planned Pit Alluvium ? Volcanic sediments Type 1 (welded tuff) ? Type 2 (non-welded tuff) Type 9 (transition)
Slide 30: Gold Production Estimate Base and Bridge
Round Mountain (50%) (50%) Gold Production Estimate 800 Base and Bridge UG RM EXP 700 Bridge GH 600 RM +Offloads Ounces (000) 500 400 300 200 100 - 2005 2006 2007 2008 2009 2010 2011 2012 100% basis
Slide 31: Gold Ounce Production
Round Mountain (50%) (50%) Gold Ounce Production 800 Base Case 700 Expansion 600 Ounces (000) 500 400 300 200 100 - 2005 2006 2007 2008 2009 2010 2011 2012 100% basis
Slide 32: Production Profile
Production Profile 1.8 350 312 323 300 1.6 248 242 Ounces (millions) US Dollars / Ounce 231 250 228 200 1.4 150 100 1.2 50 1.0 0 2004A 2005E 2006E 2007E Production Total Cash Costs Primary operations Primary operations Other operations Other operations Assumes exploration success at Kettle River, in
Slide 33: Summary
Summary Ø Paracatu – excellent potential to increase reserves and production rates Ø Fort Knox – continuing to replace reserves Ø Round Mountain – Feasibility of pit layback and U/G extend life Ø Other opportunities – Crixas, La Coipa
Slide 34: Capital Expenditure Budget
Capital Expenditure Budget Other 180 Refugio Porcupine JV Kettle River 150 Fort Knox Paracatu US Dollars (millions) 120 90 60 30 0 2005 2006 2007
Slide 35: Dedicated to Being World Class
dedicated to being world class Shares outstanding: 346.6 million Market cap.: US$2.9 billion KGC: NYSE K: TSX K.U: TSX (US dollar trading symbol) K.WT: TSX www.kinross.com Kinross Gold Corporation 40 King Street West, 52nd Floor Scotia Plaza Toronto, ON M5H 3Y2 416-365-5123 416-363-6622 866-561-3636