Kinross Gold Corporation · TSX:K
Kinross Gold — Investor Presentation (June 2023)
62 slides from Kinross Gold's investor presentation, June 2023
Slide 1: Delivering Value.
Delivering Value. June 2023 Coy KINROSS
Slide 2: Cautionary Statement on Forward-Looking Information
Kinross Gold Corporation June 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 t
Slide 3: Table of Contents
Table of Contents Company Overview 4 Great Bear 18 Operations & Projects 28 ESG 48 33
Slide 4: Who is Kinross?
Kinross Gold Corporation June 2023 Who is Kinross? AMERICAS STRONG FOCUSED Portfolio PRODUCTION OUTLOOK 6 mines LARGE GOLD DIVERSIFIED STABLE DYNAMIC COMMITTED TO PRODUCER, PRODUCER PRODUCTION CAPITAL RESPONSIBLE HIGHLY LIQUID +2MOZ ALLOCATION MINING • ~US$6.0 billion • Americas accounts • Portfolio
Slide 5: High Quality Portfolio of Assets
Kinross Gold Corporation June 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,
Slide 6: Global Mining Leader in ESG
Kinross Gold Corporation June 2023 Global Mining Leader in ESG (1) Environment Social Governance WATER MANAGEMENT • ~80% average water volume 99% > 600,000 INDEPENDENT BOARD recycling rate over the past 5 years of workforce hired from beneficiaries of • 9 of 10 Board members are GHG INTENSITY within
Slide 7: Investment Case: Production
Kinross Investment Case June 2023 Stable Production (GEO Moz, attributable, outlook) Value in the Americas(4) Americas-focused business, two Top Tier(1) assets Americas focus not reflected in valuation 1.36x Price / Net Asset Value % of NAV in Americas ~ 2.1 ~ 2.1(3) 1.16x 1.15x 1.12x 1.04x 1.01x ~2
Slide 8: Market Undervaluing Kinross' Assets
Kinross Gold Corporation June 2023 Market Undervaluing Kinross’ Assets Substantial production not reflected in market valuation 2023E Gold Production (1) Market Capitalization(2) 2.7 $13.9 Average: $9.6B 2.3 2.1 $10.2 $10.4 US$B Million AuEq oz Average: 1.80Moz 1.4 1.2 $6.0 $6.3 $4.3 0.7 (1) Source:
Slide 9: Attractive Valuation
Kinross Gold Corporation June 2023 Attractive Valuation Trading at compelling Cash Flow and EBITDA multiples P / 2023E Price to Operating Cash Flow Per Share(1) Enterprise Value / 2023E EBITDA(2) 10.8x 10.4x 9.7x 8.2x Average: 7.8x 8.2x 8.1x 7.4x Average: 7.1x 7.1x 7.0x 6.9x 6.7x 6.6x 6.1x 6.1x 5.5x
Slide 10: Balance Sheet & Financial Flexibility
Kinross Gold Corporation June 2023 Balance Sheet & Financial Flexibility Liquidity Position (1) Financial Flexibility • Total liquidity(1) of ~$1.7 billion, including $471 million of cash and cash equivalents • Net debt to EBITDA improved as of quarter end, with expectation of further reduction by e
Slide 11: Manageable Debt Profile
Kinross Gold Corporation June 2023 Manageable Debt Profile Senior notes are rated investment grade by all three rating agencies Debt Schedule Debt Ratings Agency Rating S&P BBB- (Negative) $1,000 Moody’s Baa3 (Stable) $500 Fitch BBB (Stable) $ millions Debt Breakdown(1) Interest Rate Amount Due $500
Slide 12: Disciplined Capital Allocation Strategy
Kinross Gold Corporation June 2023 Disciplined Capital Allocation Strategy Reinvesting in our Business 2023 Guidance • Sustaining Capex – maintaining our existing operations ~$510M(1) safely and to world-class environmental standards • Expansion Projects – pursuing attractive returns by leveraging e
Slide 13: Capital Return Program
Kinross Gold Corporation June 2023 Capital Return Program Returning capital to shareholders while protecting investment grade balance sheet Compelling capital deployment Buyback Approach: opportunity to enhance per-share metrics 75% of Excess Cash Flow and shareholder returns (Free Cash Flow – Inter
Slide 14: Advancing the Project Pipeline
Kinross Gold Corporation June 2023 Advancing the Project Pipeline Expected project milestones on track(1) 2023 >> 2024 Q1 Great Bear ✓ 2024 Great Bear Initial Resource and Technical Results of PEA Report 2024 H1 Round Mountain ✓ Great Bear Potential Start of Advanced Begin Exploration Decline Explor
Slide 15: Prioritizing Resource Conversion
Kinross Gold Corporation June 2023 (1) Prioritizing Resource Conversion Significant potential for mine life extension at existing assets 25 20 15 Years 10 5 0 La Coipa Fort Knox Round Mountain Bald Mountain Tasiast Paracatu Lobo-Marte Expected Reserve Life Potential Resource Life (1) “Expected Reser
Slide 16: 2023 Guidance Summary
Kinross Gold Corporation June 2023 2023 Guidance Summary(1)(2) FY 2022 Actuals (3) 2023 Guidance Attributable Production ~2.0 million 2.1 million (Au eq. oz.) Production cost of sales $937 $970 (per Au eq. oz. sold)(4) All-in sustaining cost $1,271 ~$1,320 (per Au eq. oz. sold)(5) Capital expenditur
Slide 17: Inflationary Pressures
Kinross Gold Corporation June 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 C
Slide 18: Great Bear
Great Bear 1818
Slide 19: Project Overview
Kinross Gold Corporation June 2023 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 typical of Red La
Slide 20: Initial Contained Mineral Resource Estimate
Kinross Gold Corporation June 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 2.24
Slide 21: Majority of Resource Contained in High Grade Core
Kinross Gold Corporation June 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 Gra
Slide 22: High Grade Core has Strong Spatial Continuity
Kinross Gold Corporation June 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 22
Slide 23: The Initial Resource is Just the Beginning
Kinross Gold Corporation June 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 24: Exploration Decline
Kinross Gold Corporation June 2023 Exploration Decline Advanced exploration decline expected to enable efficient drilling of underground material Conceptual Exploration Timeline Preliminary Advanced Exploration Design 2023 2024 2025 2026 2027+ Resource Development Exploration, Deep Drilling Potentia
Slide 25: Great Bear Appears Similar to Hemlo
Kinross Gold Corporation June 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 Gx
Slide 26: Additional Upside Potential on Highly-Prospective Land Package
Kinross Gold Corporation June 2023 Additional Upside Potential on Highly- Prospective Land Package Transmission line Highway 105 1 Felsic – Intermediate Felsic Intrusive Ultramafic Mafic-Ultramafic Mafic (Calc-Alkaline?) Sediments 3 Great Bear property 3 Where we see opportunity for growth: 2 Hinge
Slide 27: Targeted Path to Production at Great Bear
Kinross Gold Corporation June 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 Release PEA Exploration Decline Permitting estimate in line with Environmental Baseline peers
Slide 28: Operations & Projects
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Slide 29: Q1/23 Recap
Q1/23 Recap Q1 On Plan La Coipa • Record grades and recoveries • All assets remain on track • Generated strong cash flow • Q1 production accounted for ~22% of • Production remains on track to achieve full-year guidance full-year guidance Great Bear Tasiast • Continuing to intersect high-grade • Reco
Slide 30: Brazil
Kinross Gold Corporation June 2023 Brazil 2023 Gold Equivalent Production(1) Asset Highlights One of two top-tier assets in Mauritania United States our portfolio 29% 32% Track record of expansion and ~2.1Moz resource conversion Paracatu Attractive cost structure and Chile 11% Paracatu, stable long
Slide 31: Paracatu
Kinross Gold Corporation June 2023 Paracatu Top-tier Gold Mine With Production Extending into the Next Decade • Largest gold mine in Brazil, and one of the world’s largest gold mining Operating Results operations 2021 2022 Q1/23 • Higher production expected in Q2 and Q3 of this year on planned highe
Slide 32: Mauritania
Kinross Gold Corporation June 2023 Mauritania 2023 Gold Equivalent Production(1) Asset Highlights One of two top-tier assets in our portfolio Tasiast, Mauritania Low-cost mine with a growing United States production profile supported 29% 32% by a large gold resource in a prospective district ~2.1Moz
Slide 33: Tasiast
Kinross Gold Corporation June 2023 Tasiast Low-cost Mine Backed by a Substantial Reserve and On-Track to Deliver Near-Term Production Growth • Following a successful ramp up to Operating Results 21ktpd in 2022, the ongoing 24k expansion project is on track to further 2021(1) 2022 Q1/23 increase thro
Slide 34: Tasiast Ramp-Up Progressing
Kinross Gold Corporation June 2023 Tasiast Ramp-Up Progressing Top Tier Asset, On Track to Meet FY2023 Guidance • Strong Q1 production, with record monthly production of ~55koz achieved in both January and March • Successfully completed planned shutdown in February • 24k project remains on schedule
Slide 35: Tasiast Solar Project
Kinross Gold Corporation June 2023 Tasiast Solar Project Advancing on Schedule for Completion by end of 2023 • The 34 MW solar power plant with 18 MW Installation of Solar Panels battery system will provide ~20% of the site’s power, offsetting ~530 kt of greenhouse gas emissions over the life-of- mi
Slide 36: Chile
Kinross Gold Corporation June 2023 Chile 2023 Gold Equivalent Production(1) Asset Highlights Poured first gold bar in February 2022 after a restart of operations Mauritania United States Since restarting operations, 29% 32% the operation has successfully achieved high-margin ~2.1Moz La Coipa product
Slide 37: La Coipa
Kinross Gold Corporation June 2023 La Coipa Generating Strong Cash Flow Through High-Margin Production • Q1 production of 54koz at a cash cost of Operating Results $727/oz • Performance is expected to improve 2021 2022 Q1/23 throughout the year Production - 109,576 53,596 (Au eq. oz.) • On track to
Slide 38: Strong Production Outlook in Chile
Kinross Gold Corporation June 2023 Strong Production Outlook in Chile Mined in succession, La Coipa and Lobo-Marte could enable production in Chile beyond 2040 N • La Coipa and Lobo-Marte are located in Chile’s Atacama (Region III), approximately 650 km north of Santiago • Both deposits are in the M
Slide 39: United States
Kinross Gold Corporation June 2023 United States 2023 Gold Equivalent Production(1) Asset Highlights Substantial mineral resource Round inventory providing open-pit Round Mountain, Mountain, and underground optionality in Bald Mountain, & Fort Knox, United Nevada one of the top mining Mauritania Sta
Slide 40: Round Mountain
Kinross Gold Corporation June 2023 Round Mountain Open-pit and Underground Optionality in a Top Jurisdiction • Substantial resource: orebody is open at depth with increasing grade Operating Results • Cash costs expected to remain elevated through 2023 as mining continues in higher 2021 2022 Q1/23 st
Slide 41: Round Mountain
Kinross Gold Corporation June 2023 Round Mountain Focus on Underground while Maintaining Open Pit Optionality • 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 orebody; potential to
Slide 42: Round Mountain – Phase X
Kinross Gold Corporation June 2023 Round Mountain – Phase X Focused on Higher-Margin UG Potential at Phase X • Progressing decline to start definition drilling in early 2024 • Advancing studies and permitting in parallel to advance path to first production • Vein intercepts and early mine designs co
Slide 43: Gold Hill
Kinross Gold Corporation June 2023 Gold Hill Potential High-Grade Underground Satellite to Supplement Phase X UG • Drilling suggests a series of narrower, higher-grade parallel veins extending from the open pit • Lower production, higher-grade underground satellite would supplement Phase X UG ore fe
Slide 44: Bald Mountain
Kinross Gold Corporation June 2023 Bald Mountain Potential to Add Significant Mine Life • Substantial mineral resource base Operating Results with multiple sources of potential mineral reserve additions that could 2021 2022 Q1/23 extend mine life beyond mid-2020s Production 204,890 214,094 33,828 •
Slide 45: Fort Knox
Kinross Gold Corporation June 2023 Fort Knox Successfully Operating One of World’s Few Cold-Weather Heap Leaches • Current mine life is expected to extend to Operating Results 2030 • Significant mill capacity provides optionality 2021 2022 Q1/23 for future production growth Production • Future produ
Slide 46: Manh Choh
Kinross Gold Corporation June 2023 Manh Choh Construction is Progressing on Schedule and on Budget • Planned utilization of existing Manh Choh Reserve & Resource Estimates(1) mill and infrastructure at Fort Tonnes Grade Ounces (thousands) (Au g/t) (Au koz) Knox to process Manh Choh Probable Reserves
Slide 47: Kettle River – Curlew Project
Kinross Gold Corporation June 2023 Kettle River – Curlew Project Underground Drilling Ongoing • A low sulfidation epithermal gold deposit in Washington, USA o 35km by paved road from 100% owned Kettle River mill and tailings facility o Significant Regional Endowment, historic production at Republic
Slide 48: ESG
ESG 48
Slide 49: Our Approach
Kinross Gold Corporation June 2023 Our Approach At the heart of our success is our people and our four Core Values. Our Values and Guiding Principles unite our global workforce We integrate sustainability considerations This approach drives ESG results: into our core operations and practices: Enviro
Slide 50: Consistently Earning Top-Quartile ESG Results
Kinross Gold Corporation June 2023 Consistently Earning Top-Quartile ESG Results Strong Standing Across Major ESG Indices Within the Mining Sector Kinross Relative (Percentile) Performance ESG Percentiles: 10-year Trend on Key ESG Ratings* (Normalized) 97 ESG Percentiles: 10-year trend 100 94 91.5 8
Slide 51: Reducing our Carbon Footprint
Kinross Gold Corporation June 2023 Reducing our Carbon Footprint Good track record of making green investments and adapting our business because it’s the right thing to do • Committed to 30% GHG • Reporting to CDP since 2005 and in line with intensity reduction in Task Force for Nature Related Finan
Slide 52: Endnotes
Kinross Gold Corporation June 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 equivale
Slide 53: Appendix
Appendix KINROSS
Slide 54: 2023 Guidance Summary – Appendix A
Kinross Gold Corporation June 2023 2023 Guidance Summary – Appendix A Company guidance Annual attributable (1) gold equivalent production guidance (+/- 5%) 2023 2.1 million oz.(2) 2024 2.1 million oz. 2025 2.0 million oz. 2023 production and cost guidance 2023 Guidance (2) Accounting basis 2022 Actu
Slide 55: 2023 Guidance Summary – Appendix A
Kinross Gold Corporation June 2023 2023 Guidance Summary – Appendix A 2023 capital expenditures guidance Forecast 2023 sustaining Forecast 2023 non- Total 2023 forecast 2022 sustaining capital 2022 non-sustaining 2022 total capital capital (5)(6) sustaining capital (5)(6) capital (5)(6) capital (5)(
Slide 56: 2023 Guidance Summary – Appendix A
Kinross Gold Corporation June 2023 2023 Guidance Summary – Appendix A Material assumptions used to forecast 2023 production cost of sales are as follows: • a gold price of $1,800 per ounce; • a silver price of $20 per ounce; • an oil price of $90 per barrel; • foreign exchange rates of: • 5.0 Brazil
Slide 57: Notes – Appendix B
Kinross Gold Corporation June 2023 MINERAL RESERVE AND MINERAL RESOURCE STATEMENT NOTES – Appendix B (1) Unless otherwise noted, the Company’s mineral resources are estimated based on a gold price of $1,700 per ounce. Open pit Mineral Resources are estimated at a cut-off grade of 0.5 g/t Au. The LP
Slide 58: Mineral Reserve and Mineral Resource Statement – Appendix C
Kinross Gold Corporation June 2023 MINERAL RESERVE AND MINERAL RESOURCE STATEMENT – Appendix C 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 Prop
Slide 59: Mineral Reserve and Mineral Resource Statement – Appendix C
Kinross Gold Corporation June 2023 MINERAL RESERVE AND MINERAL RESOURCE STATEMENT – Appendix C 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 Decembe
Slide 60: Mineral Reserve and Mineral Resource Statement – Appendix C
Kinross Gold Corporation June 2023 MINERAL RESERVE AND MINERAL RESOURCE STATEMENT – Appendix C 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
Slide 61: Notes – Appendix C
Kinross Gold Corporation June 2023 MINERAL RESERVE AND MINERAL RESOURCE STATEMENT NOTES – Appendix C (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. Mi
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