Kinross Gold Corporation · TSX:K
Kinross Gold — UBS Sales Desk Presentation (February 2010)
21 slides from Kinross Gold's conference presentation, Feb 23, 2010
Slide 1: Delivering Disciplined Growth
Kinross Gold Corporation UBS Sales Desk Presentation February 23, 2010 Delivering Disciplined Growth UBS Sales Desk Presentation Toronto, ON F b February 23 23, 2010 Cautionary Statement on Forward‐Looking Information All statements, other than statements of historical fact, contained or incorporate
Slide 2: Why Kinross? The Kinross Evolution
Kinross Gold Corporation UBS Sales Desk Presentation February 23, 2010 Why Kinross? • Growing cash flow – Production has risen while margins have expanded – CFPS(1): 5 yr CAGR : 25% – Strong balance sheet: $632.4 mm • Pipeline of future opportunities Kinross Today – Increasing reserve and resource b
Slide 3: Declining world supply from mine production
Kinross Gold Corporation UBS Sales Desk Presentation February 23, 2010 Declining world supply from mine production 2001: Peak Production 3,000 Other Big Four* 2,500 2,000 Tonnes 1,500 1,000 500 0 1969 1974 1979 1984 1989 1994 1999 2004 2009e * South Africa, United States, Australia, Canada Source: G
Slide 4: World Gold Reserves and Resources
Kinross Gold Corporation UBS Sales Desk Presentation February 23, 2010 World Gold Reserves and Resources Total Reserves & Resources Top Countries (mm ozs) (tonnes) Total Reserves & Brazil Chile Country % Resources United States 1. South Africa 997 29.7% Russia South Africa 2. Russia 225 6.7% 3. Aust
Slide 5: Focused Portfolio in Five Countries
Kinross Gold Corporation UBS Sales Desk Presentation February 23, 2010 Focused Portfolio in Five Countries Portfolio of Mines and Projects Chile United States • Maricunga • Fort Knox • La Coipa • Kettle River‐Buckhorn • Lobo‐Marte • Round Mountain • Cerro Casale Brazil Russia Paracatu • Ku
Slide 6: Expanding Margins: +27% 5-yr CAGR
Kinross Gold Corporation UBS Sales Desk Presentation February 23, 2010 Expanding Margins: +27% 5‐yr CAGR 2004 – 2009: $530 • Average realized gold price: +139% • Kinross’ Ki ’ attributable tt ib t bl costt off sales i (7): +229% l margin $436 +229% Costt of Sales Margin ($/oz.) $329 $279 $161 $170 $
Slide 7: Gold Resource Growth
Kinross Gold Corporation UBS Sales Desk Presentation February 23, 2010 Gold Resource Growth(2) Inferred Resources 140.0 80.0 Measured & Indicated Resources Proven and Probable Reserves 16.2 Total resource ounce per 1,000 shares (3) 21.2 120.0 70.0 7.0 Total Resources (mm oz.) 60.0 100.0 16.6 17.3 50
Slide 8: Highlights from Q4 2009
Kinross Gold Corporation UBS Sales Desk Presentation February 23, 2010 Highlights from Q4 2009 Q4 ‘09 Highlights • Production increased to 613,858 Au eq. oz. (up 12% from Q4’08) • Cost of sales(5): $437/oz (co‐product); $383/oz (by‐product) • Record cost of sales margin(7) of $657/oz. (up 57% from Q
Slide 9: 2009 Full-Year Results
Kinross Gold Corporation UBS Sales Desk Presentation February 23, 2010 2009 Full‐Year Results COS Margin(6) Realized +9% (7) (in millions, except ounces and 2008 2009 % Change COS Margin Gold Price $492/oz per share amounts) +22% +13% 13% $530/oz Gold equivalent production $967/oz 1,838,038 2,238,65
Slide 10: Pipeline of Projects for the Future
Kinross Gold Corporation UBS Sales Desk Presentation February 23, 2010 Pipeline of Projects for the Future Paracatu 3rd ball mill • Further organic growth at our mines • Advancing next suite of projects • Exploration & JV strategies 19 At‐Site Growth Opportunities Paracatu, Brazil – 3rd Ball Mill •
Slide 11: Kinross to Acquire High-grade Kupol Satellite Deposit
Kinross Gold Corporation UBS Sales Desk Presentation February 23, 2010 Kinross to Acquire High‐grade Kupol Satellite Deposit • Acquiring 100% of the Dvoinoye deposit and Vodorazdelnaya concession(9) o High High‐grade grade deposit ~90 90 km north of Kupol Dvoinoye deposit & o Estimated potential dep
Slide 12: Russia Today
Kinross Gold Corporation UBS Sales Desk Presentation February 23, 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 Good in
Slide 13: Lobo-Marte, Chile
Kinross Gold Corporation UBS Sales Desk Presentation February 23, 2010 Lobo‐Marte, Chile • Completed pre‐feasibility study La Coipa • Capital estimate: $575 – $650 million Lobo Marte Lobo‐Marte ~110 km • 47,000 tpd heap leach with SART plant • Operating costs expected to be $11.50‐$12.50 Maricunga p
Slide 14: Re-emphasizing exploration at La Coipa
Kinross Gold Corporation UBS Sales Desk Presentation February 23, 2010 Re‐emphasizing exploration at La Coipa • 2007: Re‐emphasis on exploration • 2009: $6.3 MM spent on exploration (28,400 Chimberos Este metres drilling) • Coipa Norte – 622K oz. Au converted to reserve (503K oz. Au net of productio
Slide 15: UBS: P / NAV
Kinross Gold Corporation UBS Sales Desk Presentation February 23, 2010 UBS: P / NAV 1.8 16 1.6 1.4 1.3 1.3 1.3 AEM GG NEM KGC ABX AUY Source: UBS research – February 22, 2010 29 UBS: P / 2010 CFPS 16.9 14 5 14.5 13.8 9.0 8.8 5.8 GG AEM KGC ABX AUY NEM Source: UBS research – February 22, 2010 30 15
Slide 16: Key Objectives for 2010
Kinross Gold Corporation UBS Sales Desk Presentation February 23, 2010 Key Objectives for 2010 Declare increased reserves Complete Lobo‐Marte pre‐feasibility study Final feasibility study for Cerro Casale Close sale of 25% of Cerro Casale Complete Maricunga Expansion feasibility study
Slide 17: Fort Knox, USA
Kinross Gold Corporation UBS Sales Desk Presentation February 23, 2010 Appendix pp 33 Fort Knox, USA(100%) • Located in Alaska • Expansion and new heap leach to extend mine life • M t i lb Material being i stacked t k d on new pads d Operating Results Production Cost of Sales (Au eq. oz) ($/oz) 2009
Slide 18: Round Mountain, USA
Kinross Gold Corporation UBS Sales Desk Presentation February 23, 2010 Round Mountain, USA (50%) • Kinross‐operated JV with Barrick • Located in Nevada, USA • Open pit mine Operating Results Production Cost of Sales (Au eq. oz) ($/oz) 2009 213,916 $517 2008 246,946 $465 2009 Gold Reserves and Resour
Slide 19: Kupol, Russia
Kinross Gold Corporation UBS Sales Desk Presentation February 23, 2010 Kupol, Russia (75%) • 3,000 tpd mill with open‐pit and underground operation • 2009 first full year of production Operating Results Production Cost of Sales (Au eq. oz) ($/oz) 2009 694,130 $257 2008 469,907 $220 2009 Reserves and
Slide 20: Crixas, Brazil
Kinross Gold Corporation UBS Sales Desk Presentation February 23, 2010 Crixas, Brazil (50%) • JV with AngloGold Ashanti • Underground mine located in the Brazil Operating Results Production Cost of Sales (Au eq. oz) ($/oz) 2009 74,654 $412 2008 87,669 $302 Reserves and Resources(3) Tonnes Grade Ounc
Slide 21: Maricunga, Chile
Kinross Gold Corporation UBS Sales Desk Presentation February 23, 2010 Maricunga, Chile (100%) • Located the highly prospective Maricunga District • Open pit, heap leach operation • Expansion under review Operating Results Production Cost of Sales (Au eq. oz) ($/oz) 2009 233,585 $521 2008 223,341 $5
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