Kinross Gold Corporation · TSX:K
Kinross Gold — Q2 2012 Earnings Presentation
13 slides from Kinross Gold's earnings presentation, Aug 9, 2012
Slide 1: Second Quarter 2012 Operating & Financial Results
SECOND QUARTER OPERATING 2012 & FINANCIAL RESULTS August 9, 2012 1
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
Slide 3: Paul Rollinson, Chief Executive Officer
PAUL ROLLINSON CHIEF EXECUTIVE OFFICER 3
Slide 4: Guiding Principles Going Forward
GUIDING PRINCIPLES GOING FORWARD 1) Managing for value • Focus on opportunities to optimize free cash flow • Reduce operating & capital costs: initiating company-wide cost reduction initiative 2) Focusing on the fundamentals • Deliver on key metrics • Improve decision-making & efficiency 3) Taking t
Slide 5: Paul Barry, Executive Vice-President & Chief Financial Officer
PAUL BARRY EXECUTIVE VICE-PRESIDENT & CHIEF FINANCIAL OFFICER 5
Slide 6: Q2 2012 Results
Q2 2012 RESULTS Realized Margin(3,4) (in millions, except ounces and per Q2 2011 Q2 2012 % Change Gold Price -4% share amounts) +8% $843/oz $1,568/oz Gold equivalent production(1) 660,807 632,772 -4% (ounces) Gold equivalent sales (1) 669,658 634,538 -5% (ounces) Revenue $963.6 $1,006.7 4% Productio
Slide 7: 2012 Outlook
2012 OUTLOOK(5) • Updated to reflect the sale of Crixás Production % of Total Production cost of Sales(3) Region (000 ounces) Production ($/oz) South America 890 – 930 36% $830– $870 North America 640 – 660 25% $620 – $660 West Africa 430 – 460 17% $780 – $820 (attributable) Russia 535 – 565 22% $47
Slide 8: Brant Hinze, President & Chief Operating Officer
BRANT HINZE PRESIDENT & CHIEF OPERATING OFFICER 8
Slide 9: Q2 2012 Operating Results
Q2 2012 OPERATING RESULTS Gold equivalent production(1) Production cost of sales(3) (oz.) (US$/oz.) Q2 2012 H1 2012 Q2 2012 H1 2012 Fort Knox 71,952 133,668 $757 $805 Round Mountain 53,147 97,905 $662 $749 Kettle River 35,985 78,603 $508 $496 North America total: 161,084 310,176 $666 $707 Russia tot
Slide 10: Update on Tasiast Optimization
UPDATE ON TASIAST OPTIMIZATION • Conducting a pre-feasibility study on a mid-size CIL mill in the 30k tpd range with potential for further expansion Staged approach could reduce initial capital costs and execution risk May deliver a rate of return comparable to a larger initial mill • Pre-feasib
Slide 11: Dvoinoye Continues on Schedule
DVOINOYE CONTINUES ON SCHEDULE • Underground development continues ahead of plan At end of Q2, 1,400 m completed 3,700 m completed since development began • Surface infrastructure construction 22% complete • Temporary camp complete; foundations for permanent camp near completion • 51 km of the a
Slide 12: Endnotes
ENDNOTES 1) Unless otherwise noted, gold equivalent production, gold equivalent ounces sold and production cost of sales figures in this presentation are based on Kinross’ 90% share of Chirano production, and do not include production from Crixas, due to the sale of Kinross’ 50% ownership completed
Slide 13: Kinross Gold Corporation
KINROSS GOLD CORPORATION 25 YORK STREET, 17TH FLOOR TORONTO, ON M5J 2V5 WWW.KINROSS.COM 13