Kinross Gold Corporation · TSX:K
Kinross Gold — 2007 Denver Gold Forum
21 slides from Kinross Gold's conference presentation, Sep 26, 2007
Slide 1: Delivering Disciplined Growth
Kinross Gold Corporation 2007 Denver Gold Forum September 26, 2007 September 2007 DELIVERING DISCIPLINED GROWTH 1 The Kinross Difference on ucti d g Pro R isin De Increased clin ing Margins, Cash Flow Co s ts & Leverage to Gold Price 2
Slide 2: Cautionary Statements
Kinross Gold Corporation 2007 Denver Gold Forum September 26, 2007 Cautionary Statements All statements, other than statements of historical fact, contained or incorporated by reference in this presentation, including any information as to the future financial or operating performance of Kinross, co
Slide 3: Kinross Today
Kinross Gold Corporation 2007 Denver Gold Forum September 26, 2007 Kinross Today Growing production 60% through 2009(1) Declining cost per ounce profile Pure gold producer Policy of: no gold hedging 2P Reserves(2): Au – 45m ozs; Ag – 60 mm ozs; Cu – 2.8bn lbs US$9 billion market capitali
Slide 4: Chilean Asset Base
Kinross Gold Corporation 2007 Denver Gold Forum September 26, 2007 Consolidating the Kinross portfolio(3) 3-part asset swap with Goldcorp announced yesterday Kinross to become 100% owner and operator of La Coipa mine in Chile – Increases existing stake from 50% Kinross receives US$ 200 in cash
Slide 5: Value for Kinross Shareholders
Kinross Gold Corporation 2007 Denver Gold Forum September 26, 2007 Value for Kinross shareholders(3) Increases operations and enhances presence in Chile’s highly prospective Maricunga trend – Now 100% ownership in 2 operating mines: Maricunga and La Coipa Sells two non-core assets – Freeing up c
Slide 6: Proven and Probable Reserves
Kinross Gold Corporation 2007 Denver Gold Forum September 26, 2007 Proven and Probable Reserves(2) Gold (mm ozs) Silver (mm ozs) Copper (bn lbs) +83% +185% 2.8 45 69 25 24 0 2005 Current 2005 Current 2005 Current Gold Silver Copper (mm oz.) (mm oz.) (bn lb.) 2P Reserves 45 69 2.8 M&I Resources 12 13
Slide 7: 2P Gold Reserves
Kinross Gold Corporation 2007 Denver Gold Forum September 26, 2007 2P Gold Reserves(2) 17.1 16.8 Kinross’ reserves are focused in five high potential districts with rich mining histories. All are districts where Kinross has many years of operating experience. 5.6 3.5 2.3 Chile (38%) Brazil (37%) USA
Slide 8: 2007 First Half Results
Kinross Gold Corporation 2007 Denver Gold Forum September 26, 2007 2007 – First Half Results Realized COS Margin(4) Gold Price +21% Gold Equivalent Sales 816,716 +13% $317/oz $656/oz Revenue $535.8 mm Cost of Sales Earnings $121.5 mm +7% Per Share $0.24 $339/oz Cash Flow From Operations $184.7 mm Pe
Slide 9: Strong Financial Platform
Kinross Gold Corporation 2007 Denver Gold Forum September 26, 2007 Strong Financial Platform Cash at June 30, 2007 of $244 million No exposure to asset-backed commercial paper Building development projects to grow the business – ‘07e Capital expenditures(11): $660 million – ’07e Exploration an
Slide 10: Expanding Paracatu
Kinross Gold Corporation 2007 Denver Gold Forum September 26, 2007 Expanding Paracatu… Primary crusher with structural steel SAG mill foundation: June installation in progress: September SAG mill cradle and foundation: August Grinding building structural steel: September 19 Expanding Paracatu… Exp
Slide 11: Building Kupol
Kinross Gold Corporation 2007 Denver Gold Forum September 26, 2007 Building Kupol… SAG Mill installed at site Aerial site photograph taken July 2007 Wartsila generators installed at site 21 Building Kupol… Construction of Kinross’ newest mine – Open pit and underground mining, processing 3,000 tpd
Slide 12: 2007 Kinross Guidance
Kinross Gold Corporation 2007 Denver Gold Forum September 26, 2007 2007 Kinross Guidance 2007e (all dollar amounts in US dollars) Production (Au eq.) 1.65 mm Cost of Sales (per ounce) $330 – $340 2007e Capex $660 mm (11) Exploration $55 mm Production Beyond 2007: 2008 2.1 – 2.2 mm oz Au eq. 2009 2.6
Slide 13: Exploration Focus
Kinross Gold Corporation 2007 Denver Gold Forum September 26, 2007 Exploration Focus Restructured to combine exploration and corporate development efforts Key focus on reserve development – Reserve extensions at existing mines – Resource to reserve conversion Brown fields and district explorat
Slide 14: Key Exploration Initiatives
Kinross Gold Corporation 2007 Denver Gold Forum September 26, 2007 Key Exploration Initiatives Fort Knox (Phase 7) Kupol Round Mt. (South & North) (Underground) Chukotka JV Nevada (K-E & K-W JV) (South Monitor JV) Brazil (Grupi) Mexico (Ixhuatan JV) Brazil (Monte do Carmo JV, Patrocinio JV) Ecuador
Slide 15: Kinross Goals & Objectives
Kinross Gold Corporation 2007 Denver Gold Forum September 26, 2007 Kinross Goals & Objectives – 2007 Deliver Asset Best Talent, Building Blocks Drive Future Value Performance Best Teams for the Future 9 9 Enhance Financial & Optimize Future Industry Leading in EH&S Attract & Retain the Best Manageme
Slide 16: Price / Cash Flow Per Share
Kinross Gold Corporation 2007 Denver Gold Forum September 26, 2007 Price / Cash Flow Per Share Attractive value on forward cash flows 23.7 15.5 15.4 15.3 13.9 13.4 12.4 10.7 GG KGC NEM ABX GG ABX NEM KGC 2008 2009 Source: Bloomberg Estimates 31 Year-to-Date Share Price Performance Barrick 31.2% Ki
Slide 17: The Kinross Advantage
Kinross Gold Corporation 2007 Denver Gold Forum September 26, 2007 The Kinross Advantage Industry Challenge Kinross Today By 2009, over 40% of production to be High Cost Low Cost from new low-cost projects. Production Producer CoS Margin is up 209% while Gold is up 116% (Q2’07 vs. FY ’02) (4)
Slide 18: Footnotes
Kinross Gold Corporation 2007 Denver Gold Forum September 26, 2007 Footnotes (1) Kinross production based on Company guidance (see April 11, 2007 press release). (2) For further information, please refer to Kinross’ Mineral Reserve and Resource Statements at December 31, 2006, as released April 11,
Slide 19: Paracatu, Brazil and Round Mountain, USA
Kinross Gold Corporation 2007 Denver Gold Forum September 26, 2007 Paracatu, Brazil (100%) $470 million expansion project to triple production and reduce costs Expansion is ~ 45% complete, with production in 2008 > 33 year mine life Mineralization Tonnes Grade Ounces as at Dec.31.06 (x 1,000)
Slide 20: Maricunga, Chile and Fort Knox, USA
Kinross Gold Corporation 2007 Denver Gold Forum September 26, 2007 Maricunga, Chile (100%) Kinross is now the 100% owner after the Bema acquisition Reviewing the newly expanded exploration area (18,000 ha) New drilling and test work being completed this year Mineralization Tonnes Grade Ounces
Slide 21: La Coipa, Chile and Other Joint Ventures
Kinross Gold Corporation 2007 Denver Gold Forum September 26, 2007 La Coipa, Chile (50%) Low-cost gold-silver production Puren ore body went from discovery to production in less than 4 years World-class mineralized district Exploration efforts continuing Mineralization Tonnes Grade Ounces as