Kinross Gold Corporation · TSX:K
Kinross Gold — Q4 2020 Earnings Presentation
31 slides from Kinross Gold's earnings presentation, Feb 11, 2021
Slide 1: Fourth Quarter & Year-end 2020 Results
Fourth Quarter & Year-end 2020 Results February 11, 2021 Delivering Value. Kinross Gold Corporation
Slide 2: Cautionary Statement on Forward-Looking Information
Fourth Quarter and Year-end 2020 February 11, 2021 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
Slide 3: Nine Consecutive Years of Meeting Guidance
Fourth Quarter and Year-end 2020 February 11, 2021 Nine Consecutive Years of Meeting Guidance Kinross has met or exceeded guidance for production, costs and capital expenditures for the past nine years, despite impacts from COVID-19 2012 2013 2014 2015 2016 2017 2018 2019 2020 Met or exceeded annual
Slide 4: Strong 2020 Results
Strong 2020 Results Portfolio well-positioned to carry us through this decade Discipline on costs and capital Record free cash flow and significant increase in margins Paracatu, Kupol-Dvoinoye and Tasiast 62% of production and lowest costs in portfolio Further enhanced financial position $1.2 billio
Slide 5: Additional Accomplishments in 2020
Fourth Quarter and Year-end 2020 February 11, 2021 Additional Accomplishments in 2020 • Closed the Chulbatkan acquisition; acquired additional licenses surrounding the property Successful • Acquired Kayenmyvaam and Kavralyanskaya Acquisitions licenses within the Kupol Synergy Zone of Influence (KSP)
Slide 6: Advancing the Project Pipeline
Fourth Quarter and Year-end 2020 February 11, 2021 Advancing the Project Pipeline Expected project milestones at growth projects that span all three operating regions H1 2021 >> H2 2021 >> 2022 >> 2023+ La Coipa Restart Q4 Round Mountain: Mid-2023 Tasiast 24k Commence Chulbatkan: Udinsk Phase S Ph
Slide 7: Leading ESG Performance
Leading ESG Performance Safety is Our First Priority Meaningful Contributions to Host Communities Top-Ranking & Award-Winning ESG Performance Among the Lowest GHG Emitters in the Sector 7
Slide 8: Financial Results
Financial Results 8
Slide 9: Financial Highlights
Fourth Quarter and Year-end 2020 February 11, 2021 Financial Highlights Q4 was a strong finish to the year, driving margin expansion and resulting in record annual free cash flow of over $1 billion Year-over-year improvements Quarter and Annual Results Q4 Full-year 2020 Results 2020 Results 6x Free
Slide 10: Strong Liquidity and Financial Flexibility
Fourth Quarter and Year-end 2020 February 11, 2021 Strong Liquidity and Financial Flexibility Another quarter of robust free cash flow further strengthened our financial position Liquidity Position Financial Flexibility • Available liquidity of ~$2.8 billion, including over $1.2 billion of cash • Ma
Slide 11: 2021E Outlook
Fourth Quarter and Year-end 2020 February 11, 2021 2021E Outlook Expected 2021 production and capex in-line with 2020; costs up on temporary factors 2020 Guidance 2020 Full-year 2021 Guidance (+/- 5%) Results (+/- 5%) Gold equivalent production 2.4 million 2.4 million 2.4 million (ounces)(1) Product
Slide 12: Manageable Capital Expenditure Profile
Fourth Quarter and Year-end 2020 February 11, 2021 Manageable Capital Expenditure Profile Forecast capex requirements are manageable for Kinross’ size Precise amounts tied to long-term production levels ~$300/oz. for 3Moz. long-term $ 900 production ~$300/oz. for 2.5Moz. long-term production $ 600 U
Slide 13: Operating Results
Operating Results 13
Slide 14: COVID-19 Update
Fourth Quarter and Year-end 2020 February 11, 2021 COVID-19 Update Prioritizing the health and safety of employees and host communities Managing the Pandemic and Minimizing Impacts • Portfolio of mines continues to manage well – all remain in operation through the pandemic • Working closely with hos
Slide 15: Significant Reserve Growth
Fourth Quarter and Year-end 2020 February 11, 2021 Significant Reserve Growth Extended mine life at Kupol and Paracatu by one year, Chirano by three years Kinross Mineral Reserve and Resource estimates (i) Substantial reserve increase due to: 2P Reserves (Au Moz.) • Over 6 million probable ounces fr
Slide 16: Prospective Exploration Targets in Russia
Fourth Quarter and Year-end 2020 February 11, 2021 Prospective Exploration Targets in Russia 2020 drill program added approximately 409koz. to mineral reserves(i) to largely offset depletion at Kupol-Dvoinoye, the largest reserve addition since 2014 Kupol-Dvoinoye • 6 underground and 2 surface drill
Slide 17: Promising Prospects at Chirano
Fourth Quarter and Year-end 2020 February 11, 2021 Promising Prospects at Chirano 2021 exploration budget increased by 20% to $12 million to build off successful year in 2020 • 2021 program is expected to drill • Budget also contemplates construction depth extensions at Obra, Akwaaba, of exploration
Slide 18: Exploration in the Americas
Fourth Quarter and Year-end 2020 February 11, 2021 Exploration in the Americas Promising brownfields opportunities at Kinross’ U.S. properties Bald Mountain Round Mountain Fort Knox Curlew $6.5 million $6 million $5.5 million $12.6 million budget for 2021 budget for 2021 budget for 2021 budget for 2
Slide 19: Strong Performance at Paracatu
Fourth Quarter and Year-end 2020 February 11, 2021 Strong Performance at Paracatu Largest producer in the portfolio, generating robust cash flow • Production increased by ~17koz., costs declined by ~$150/oz. quarter-over- quarter(2) o Largely driven by higher mill grades and lower maintenance costs,
Slide 20: Excellent Year at Kupol-Dvoinoye
Fourth Quarter and Year-end 2020 February 11, 2021 Excellent Year at Kupol-Dvoinoye Russian operations delivered annual cost of sales below $600/oz.(2) • Another consistent quarter from Russia; production largely in-line with previous quarters • Completed mining activities at Dvoinoye in November 20
Slide 21: Udinsk Advancing on Plan
Fourth Quarter and Year-end 2020 February 11, 2021 Udinsk Advancing on Plan 60,000m of infill drilling completed in 2020; approximately 260koz. added to M&I resources(i) • 2020 drill program supported advancement of the Udinsk PFS and confirmed the layout of the Udinsk area • Project studies advanci
Slide 22: Another Record Year at Tasiast
Fourth Quarter and Year-end 2020 February 11, 2021 Another Record Year at Tasiast Exceeded 2019’s record for production and cost of sales as the 24k project continues to advance • Record quarterly production in Q4 and annual Tasiast year-over-year performance production in 2020 o Production increase
Slide 23: Additional Portfolio Highlights
Fourth Quarter and Year-end 2020 February 11, 2021 Additional Portfolio Highlights • ~20% increase in production over 2019 • Construction at the Gilmore project Fort Knox, completed on time and under budget; first Alaska gold poured in January 2021 • Commenced drilling and awarded engineering contra
Slide 24: Kinross Investment Case
Kinross Investment Case Operational Excellence Financial Strength & Flexibility Diverse portfolio of mines consistently meeting Maintaining a strong balance sheet continues to or outperforming operational targets be a priority objective 9 Available liquidity of ~$2.8 billion Met or exceeded Attracti
Slide 25: Appendix
IX Append KINROSS
Slide 26: Mineral Reserve and Mineral Resource Statement
Fourth Quarter and Year-end 2020 February 11, 2021 MINERAL RESERVE AND MINERAL RESOURCE STATEMENT MINERAL RESERVE AND MINERAL RESOURCE STATEMENT GOLD PROVEN AND PROBABLE MINERAL RESERVES (1,2,3,4,5,6) Kinross Gold Corporation's Share at December 31, 2020 Kinross Proven Probable Proven and Probable P
Slide 27: Mineral Reserve and Mineral Resource Statement
Fourth Quarter and Year-end 2020 February 11, 2021 MINERAL RESERVE AND MINERAL RESOURCE STATEMENT MINERAL RESERVE AND MINERAL RESOURCE STATEMENT GOLD MEASURED AND INDICATED MINERAL RESOURCES (EXCLUDES PROVEN AND PROBABLE MINERAL RESERVES) (2,3,4,5,6,9,10,11) Kinross Gold Corporation's Share at Decem
Slide 28: Mineral Reserve and Mineral Resource Statement
Fourth Quarter and Year-end 2020 February 11, 2021 MINERAL RESERVE AND MINERAL RESOURCE STATEMENT MINERAL RESERVE AND MINERAL RESOURCE STATEMENT GOLD INFERRED MINERAL RESOURCES (2,3,4,5,6,9,10,11) Kinross Gold Corporation's Share at December 31, 2020 Kinross Inferred Property Location Interest Tonne
Slide 29: Mineral Reserve and Mineral Resource Statement Notes
Fourth Quarter and Year-end 2020 February 11, 2021 MINERAL RESERVE AND MINERAL RESOURCE STATEMENT NOTES (1) Unless otherwise noted, the Company’s mineral reserves are estimated using appropriate cut-off grades based on an assumed gold price of $1,200 per ounce and a silver price of $17.00 per ounce.
Slide 30: Endnotes
Fourth Quarter and Year-end 2020 February 11, 2021 Endnotes 1. Unless otherwise noted, gold equivalent production, gold equivalent ounces sold, production cost of sales, all-in sustaining cost figures and attributable margin in this presentation are based on Kinross’ 90% share of Chirano production
Slide 31: Slide 31