Kinross Gold Corporation · TSX:K

Kinross Gold — Investor Presentation (September 2011)

58 slides from Kinross Gold's investor presentation, September 2011

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

    A HIGH-GROWTH PURE GOLD PRODUCER KINROSS GOLD CORPORATION September 2011 1

  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: Why Kinross?

    WHY KINROSS? 1. Pure gold, high-growth senior producer 2. Robust operating cash flow from 10 operating mines today 3. Attractive valuation: leveraged cash flow, growth and exploration 3

  4. Slide 4: 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. 4

  5. Slide 5: Kinross Today

    KINROSS TODAY 5

  6. Slide 6: Kinross Today

    KINROSS TODAY • US$20 bn market capitalization* • 2.6 – 2.7 mm oz. Au eq. in 2011e growing to 4.5 – 4.9 mm oz. in 2015e(1) • Strong liquidity position: ~$2.1 bn cash on balance sheet • Proven developer in emerging gold districts * Market capitalization as of market close September 12, 2011. (1) Plea

  7. Slide 7: 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 7

  8. Slide 8: Q2 2011 Results: Continuing to Deliver

    Q2 2011 RESULTS: CONTINUING TO DELIVER Revenue Adjusted Operating Cash Adjusted Net Earnings(2) +42% Flow(2) +103% +46% $413 $227 $988 $283 US$ millions $697 $111 $0.40/sh $0.20/sh $0.36/sh $0.16/sh Q2 2010 Q2 2011 Q2 2010 Q2 2011 Q2 2010 Q2 2011 (2) Refer to endnote #2. 8

  9. Slide 9: 2011 Outlook Unchanged

    2011 OUTLOOK UNCHANGED • Costs expected to be toward the lower end of guidance range Production % of Total Production Cost of Sales(3) Region (000 ounces ) Production ($/oz) South America 1,000 – 1,070 39% $585 - $650 North America 590 – 630 23% $625 - $685 West Africa 440 – 500 18% $595 - $655 (att

  10. Slide 10: Financial Strength & Discipline

    FINANCIAL STRENGTH & DISCIPLINE • $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 $1,403 Proceeds from debt offering Cash & cash equivalents ~$1,000 $1,080 $3 $176 $98 2005

  11. Slide 11: Delivering Expanding Margins

    DELIVERING EXPANDING MARGINS 2005 – H1 2011: $828 • Average realized gold price: +212% • Kinross’ attributable margin(3,4): +387% $683 +387% Attributable Margin (US$/oz) $530 $436 $329 $279 $170 2005 2006 2007 2008 2009 2010 H1 2011 (3) Refer to endnote #3. (4) Refer to endnote #4. 11

  12. Slide 12: Staking Districts, Adding Resources, Improving Grade

    STAKING DISTRICTS, ADDING RESOURCES, IMPROVING GRADE GOLD RESOURCES(3) 2P GOLD GRADE(5) EXPLORATION SPEND (mm oz.) (g/t) ($ mm) Proven & Probable Mineral Gold Reserves Measured & Indicated Mineral Gold Resources Inferred Gold Resources +220% +41% 0.72 +992% $185 - $195 20.0 0.51 24.7 2.9 63.3 6.1 $1

  13. Slide 13: 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 13

  14. Slide 14: Transforming Kinross

    TRANSFORMING KINROSS 14

  15. Slide 15: Project Pipeline

    PROJECT PIPELINE Project 2011E 2012E 2013E 2014E 2015E Organic growth Maricunga SART plant Paracatu 4th ball mill Dvoinoye Tasiast Development Lobo-Marte Fruta del Norte Cerro Casale Conceptual timeline based on current Company estimates. 15

  16. Slide 16: Tasiast

    TASIAST, % HET ty AR 21 PRR ma a nara

  17. Slide 17: 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 17

  18. Slide 18: 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

  19. Slide 19: 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

  20. Slide 20: Resource Growth at Tasiast

    RESOURCE GROWTH AT TASIAST(5,7) 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

  21. Slide 21: Tasiast, Mauritania

    TASIAST, MAURITANIA • Expansion project remains on schedule:  Feasibility study extended to Q1 2012  Construction expected to start mid-2012  Project start-up of 60,000 tpd mill is targeted for early 2014 • 16-year mine life with expected avg. annual production of 1.5 mm oz. (first 8 full yrs.) •

  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 • Phased commissioning:  Plant expected to process 2,500 tpd initially Underground Mine Layout  POX circuit add

  24. Slide 24: Fruta del Norte, Ecuador

    FRUTA DEL NORTE, ECUADOR • Exploration decline under development • Advancing permitting:  EIA for building FDN submitted in Q2 2011  EIA for advanced exploration at Colibri was approved • Negotiations continue on exploitation agreement • Feasibility study expected in H2 2011 • Expected to commissi

  25. Slide 25: Lobo-Marte, Chile

    LOBO-MARTE, CHILE 25

  26. Slide 26: Lobo-Marte, Chile

    LOBO-MARTE, CHILE • Expected 47,000 tpd heap leach with SART plant • 10-year mine life with estimated production of 350k oz. / year • EIA submitted in June, ahead of schedule • Drilling on Valy deposit located 5 km south of the Lobo deposit encountering strong mineralization Lobo Final Pit • Feasibi

  27. Slide 27: Kupol – Dvoinoye, Russia

    KUPOL – DVOINOYE, RUSSIA 27

  28. Slide 28: 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 • Development of exploration decline advanced 250 metres at end of Q2 • Feasibility st

  29. Slide 29: Kinross Now

    KINROSS NOW 29

  30. Slide 30: BMO: P / 6% NAV

    BMO: P / 6% NAV 1.0 1.0 0.9 0.8 0.7 0.6 AGNICO GOLDCORP YAMANA BARRICK NEWMONT KINROSS Source: BMO Capital Markets Gold Pages – September 12, 2011 30

  31. Slide 31: BMO: P / 2011e CFPS

    BMO: P / 2011e CFPS 18.6 17.8 14.1 12.0 9.7 9.1 GOLDCORP AGNICO KINROSS YAMANA NEWMONT BARRICK Source: BMO Capital Markets Gold Pages – September 12, 2011 31

  32. Slide 32: Total Resource Ounces per $1,000 Invested

    TOTAL RESOURCE OUNCES PER $1,000 INVESTED 5.5 Ounce of Total Resources Acquired per $1,000 invested 4.8 4.8 4.2 3.7 (oz./$1,000) 3.2 2.5 KINROSS NEWCREST BARRICK NEWMONT YAMANA AGNICO GOLDCORP Source: Company reports and Bloomberg L.P. – September 12, 2011 32

  33. Slide 33: 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 0.14 (oz./$1,000) 0.09 0.09 0.09 0.06 NEWMONT BARRICK KINROSS NEWCREST AGNICO YAMANA GOLDCORP Source: Company reports and Bloomberg L.P. – September 12, 2011 33

  34. Slide 34: Key Objectives

    KEY OBJECTIVES 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 Fruta

  35. Slide 35: Why Kinross?

    WHY KINROSS? 1. Pure gold, high-growth senior producer 2. Robust operating cash flow from 10 operating mines today 3. Attractive valuation: leveraged cash flow, growth and exploration 35

  36. Slide 36: Appendix

    APPENDIX 36

  37. Slide 37: 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(5) TONNES GRADE OUNCES (thousands) (g/t) (thousands) 2P Reserves 2

  38. Slide 38: 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(5) TONNES GRADE OUNCES (thousands) (g/t) (thousands) 2P Re

  39. Slide 39: 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(5) TONNES GRADE OUNCES (tho

  40. Slide 40: 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

  41. Slide 41: 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(5) TO

  42. Slide 42: 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(5) TONNES GRADE OUNCES (thousands) (g/t) (thousands) 2P Reserves 3,283

  43. Slide 43: 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(5) TONNES GRADE OUNCES (thousands) (g/t) (thousands) 2P

  44. Slide 44: 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(5) TONNES GRADE OUNCES (thousands) (g/t) (thousand

  45. Slide 45: 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

  46. Slide 46: 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

  47. Slide 47: Supplemental Information

    SUPPLEMENTAL INFORMATION 47

  48. Slide 48: 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

  49. Slide 49: Growing Cash Flow per Share

    GROWING CASH FLOW PER SHARE • 5-yr CAGR : 21% $1.36 $1.32 Adjusted Cash Flow per Share (US$)(2) $1.01 $0.80 $0.71 $0.56 $0.51 2005 2006 2007 2008 2009 2010 H1 2011 (2) Refer to endnote #2. 49

  50. Slide 50: Increasing Gold Resources

    INCREASING GOLD RESOURCES(5) 110 Inferred Mineral Resources 140 Measured & Indicated Mineral Resources 100 Proven and Probable Mineral Reserves 20.0 120 Total resource ounce per 1,000 shares 24.0 90 Gold resource oz per 1,000 shares 80 100 Gold resources (mm oz.) 16.2 24.7 70 17.7 20.7 7.0 80 60 16.

  51. Slide 51: Track Record of Reserve Growth

    TRACK RECORD OF RESERVE GROWTH(5) Proven and Probable Gold Reserves (mm oz.) 31.5 63.3 33.8 11.9 19.4 9.5 2004 Mined Divested Acquired Exploration and Kinross Today Development 51

  52. Slide 52: 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

  53. Slide 53: Gold Production from New Projects

    GOLD PRODUCTION FROM NEW PROJECTS +1.3(i) Estimated average annual gold production (mm oz) +0.41(ii) +0.35(ii) Tasiast Expansion Fruta del Norte Lobo-Marte (i) Does not include current Tasiast production; estimated average annual production for first full 8 years (ii) Estimated average annual life o

  54. Slide 54: 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

  55. Slide 55: 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

  56. Slide 56: $1 bn Three-Tranche Debt Offering

    $1 BN THREE-TRANCHE DEBT OFFERING • Kinross inaugural US bond issuance • Weighted average cost of capital: 5.28% $500 US$ millions $250 $250 5-YEAR 10-YEAR 30-YEAR 56

  57. Slide 57: 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

  58. Slide 58: Kinross Gold Corporation

    KINROSS GOLD CORPORATION 25 YORK STREET, 17TH FLOOR TORONTO, ON M5J 2V5 WWW.KINROSS.COM 58

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