Kinross Gold Corporation · TSX:K
Kinross Gold — Merrill Lynch Mining Conference 2005
30 slides from Kinross Gold's conference presentation, September 2005
Slide 1: Driving Value Growth
Driving Value Growth Merrill Lynch Mining Conference Kinross Gold Corporation Corporate Overview September 2005
Slide 2: Legal Notice
Legal Notice Certain statements set forth in this presentation constitute "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties and other factors that may cause the actual results, performan
Slide 3: Agenda
Agenda ¬ Kinross Today ¬ Current Initiatives ¬ Kinross Looking Forward 3
Slide 4: Kinross Overview: Key Facts
Kinross Overview Key Facts: • Major gold producer ¬ 2005 estimated gold production of 1.6 million ounces ¬ Total cash costs $260 to $270 per ounce • ~4,000 employees in 6 countries • Straight-forward balance sheet ¬ Simple debt structure ¬ No gold hedging • Continuing reserve growth ¬ 19.4 million o
Slide 5: Kinross Overview: Key Attributes
Kinross Overview Key Attributes: • Exceptional EH&S record • Excellent spread of geopolitical risk: focus in Americas • Experienced management team • Modern, high-capacity asset base • Building pipeline of development projects and exploration targets Delivering results 5
Slide 6: Where We Are
Where We Are Kubaka (98.1%) Fort Knox (100%) Magadan, Russia (Open Pit, U/G) Alaska, USA (Open Pit) Musselwhite (32%) Ontario, Canada (U/G) Porcupine (49%) Kettle River (100%) Ontario, Canada (Open Pit, U/G) Washington, USA (U/G) Round Mountain (50%) Nevada, USA (Open Pit) La Coipa (50%) Chile (Open
Slide 7: Balanced Geopolitical Risk
Balanced Geopolitical Risk 2005 PRODUCTION 15% 16% 48% 13% 8% US Canada Brazil Chile Other 63% of production is North American based 65% of costs are US dollar based Large U.S. base offers security, lowers foreign exchange risk 7
Slide 8: Kinross Has Grown
Kinross Has Grown 2,500 2,000 equivalent production 000's ounces gold 1,500 1,000 500 0 93 94 00 95 96 97 98 99 01 02 03 E E E E E 07 08 04 05 06 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 Formation Nerco Falconbridge Macassa AMAX Echo Bay / TVX Crown New Paracatu Growth organically and through
Slide 9: Balanced Geopolitical Risk
Balanced Geopolitical Risk 2004 RESERVES 17% 23% 46% 11% 3% US Canada Brazil Chile Other 19.4 million ounces of gold at Dec. 31, 2004, an increase of 38% over last year Reserves located in politically stable countries 9
Slide 10: Production Profile and Cash Margin
Production Profile and Cash Margin 500 1.8 450 1.6 400 1.4 Ounces of Production (millions) 350 1.2 300 1.0 US$ 250 0.8 200 0.6 150 100 0.4 50 0.2 - - 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005e Gold Equivalent Production Average Realized Gold Price Total Cash Costs Expanding Ca
Slide 11: Production Profile and Cash Margin
Production Profile and Cash Margin 180 160 140 120 100 Increasing 80 cash 60 margin 40 20 - 2000 2001 2002 2003 2004 2005e 500 1.8 450 1.6 Ounces of Production (millions) 400 1.4 350 1.2 300 1.0 US$ 250 0.8 200 0.6 150 100 0.4 50 0.2 - - 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 20
Slide 12: Kinross Shares
Kinross Shares (source: Merrill Lynch reports) 40 35 GLG 30 MDG 25 P/CF 20 BVN ABX PDG GG 15 AU NEM 10 HMY 5 KGC 0 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% Daily Liquidity % of float Highly Liquid, Value Stock 12
Slide 13: Looking Ahead
Looking Ahead ¬ Immediate Action List ¬ Building Blocks ¬ Growth From the Core 13
Slide 14: Strategy: Immediate Action Items
Strategy Immediate Action Items • Resolving accounting issues • Talent review • Asset analysis and prioritization • Re-negotiate Crown transaction • Refugio restart 14
Slide 15: Strategy: Building Blocks
Strategy Building Blocks • Getting the “right people in the right places” • Complete engineering studies • Financial plan: new banking facility in place • Facilities and process management 15
Slide 16: Strategy: Focus on the Core Assets
Strategy Focus on the Core Assets • Sold half of equity portfolio positions • Sell non-strategic properties: sold E-Crete, Norseman • Reviewing other assets, JVs • Focus management attention on key assets for our future 16
Slide 17: Paracatu, Brazil (100%)
Paracatu, Brazil (100%)
Slide 18: Fort Knox, Alaska (100%)
Fort Knox, Alaska (100%)
Slide 19: Round Mountain, Nevada (50%, operator)
Round Mountain, Nevada (50%, operator)
Slide 20: Refugio, Chile (50%, operator)
Refugio, Chile (50%, operator)
Slide 21: Strategy: Driving Forward
Strategy Driving Forward • Continue with strong EH&S component • Capital programs at Core Operations • Focus on quality mines, Kinross as operator • Continuous cost control and gross margin focus • Metrics: NAV and CF per share 21
Slide 22: Priority Regions
Priority Regions Kubaka (98.1%) Fort Knox (100%) Magadan, Russia (Open Pit, U/G) Alaska, USA (Open Pit) Musselwhite (32%) Ontario, Canada (U/G) Porcupine (49%) Ontario, Canada (Open Pit, U/G) Kettle River (100%) Washington, USA (U/G) Round Mountain (50%) Nevada, USA (Open Pit) Crixas (50%) Brazil (U
Slide 23: Project Pipeline
Project Pipeline Exploration Pre-feasibility Feasibility Construction Production Refugio Pamour Puren Round Mtn Exp. Gurupi Gold Hill Paracatu Exp. Pancho Exp. Round Mtn. U/G Measured & Indicated Resources Proven & Probable Reserves Progress Jan. 04 to Sept. 05 Oroch New Discovery Pantanillo Pending
Slide 24: Reserve Growth
Reserve Growth 20 4.3 19.4 16 2.9 2.7 14.1 (1.9) (1.8) Millions of ounces 13.2 12 8 4 0 31-Dec-02 Depletion Reserve 31-Dec-03 Depletion Reserve Acquisitions 31-Dec-04 @ $300 Additions @ $325 Additions @ $350 Continued reserve growth 24
Slide 25: Paracatu Exploration
Paracatu Exploration 298,000E 300,000E 302,000E Mineral Rights and 8,100,000N Surface Access Area Brazil $400 Paracatu Scoping RPM Mine Pit Crest Plant Rio de Janeiro Active Toe Mining Lease 8,098,000N Mine grade ore Dec.04 Low grade ore Section 10200N Pit Outline Old drill hole 2004 drill hole Phas
Slide 26: Paracatu Mine, Cross Section
Paracatu Mine, Cross Section Existing drill hole Phase B completed drill hole Phase C planned drill hole Metasiltstone Laterite Reserve mineralization Potential mineralization Visible mineralization 10,200N West Rico Creek, Looking North 7,500E 8,000E 8,500E Surface 0.59g/t Au / 111m WCR-706 0.50g/t
Slide 27: Gold Price
Gold Price US$ Ja n- 0 275 300 325 350 375 400 425 450 475 A 2 pr -0 2 Ju l-0 O 2 Gold Price ct -0 Ja 2 n- 0 A 3 pr -0 3 Ju l-0 O 3 ct -0 Ja 3 n- 0 A 4 pr -0 4 Ju l-0 O 4 ct -0 Ja 4 n- 0 A 5 pr -0 5 Ju Bullish on Gold - US$ weakness, Supply/Demand Fundamentals l-0 5
Slide 28: Gold Price in Other Currencies
0.60 0.80 1.00 1.20 1.40 1.60 1.80 Jan-02 Apr-02 Jul-02 Oct-02 Gold Price Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 India U.S. Europe Canada Australia South Africa 28
Slide 29: Kinross Driving Forward
Kinross Driving Forward Disciplined capital and Growth from the core attention to assets that contribute value to Kinross Location, location… Asset portfolio in secure countries Strong management team; Management strength excellence in operations and EH&S Proven transactional Corporate transactions
Slide 30: Kinross Gold Corporation
Shares outstanding: 345.3 million Market cap.: US$2.6 billion (at Sep. 14, 2005) KGC: NYSE (Common shares) K: TSX (Common shares) K.U: TSX (US dollar trading symbol) K.WT: TSX (Warrants expiring 05/12/07) Kinross Gold Corporation 40 King Street West, 52nd Floor Scotia Plaza Toronto, ON M5H 3Y2 416-3