september 2006 1 · 2015. 10. 15. · kinross: a major gold producer 2006 estimated: • gld i l d...

Kinross Gold Corporation

1

Kinross Gold CorporationCorporate Presentation

September 2006

Certain statements set forth in this presentation constitute “forward looking statements" within the meaning of the United States Private Securities Litigationstatements 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, performance or achievements to differ from

those expressed or implied by such forward looking statements. Such risks and uncertainties are described in periodic filings made by Kinross Gold Corporationuncertainties are described in periodic filings made by Kinross Gold Corporation

with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.

2

All dollar amounts used throughout this presentation are expressedin US dollars, unless otherwise noted.

2

Focus Areas

Fort Knox (100%)

Musselwhite (32%)

Porcupine JV (49%)

Kettle River (100%)

Round Mountain (50%)

C i (50%)

Refugio (50%)

La Coipa (50%)

Crixas (50%)

Paracatu (100%)

3

Producing AssetsExploration Targets

Kinross: A Major Gold Producer

2006 estimated:G ld i l d i 1 44 illi• Gold equivalent production – 1.44 million ounces

• Cost of sales1 – est. $305 – $315 per ounce

3 700 emplo ees in 5 co ntries~3,700 employees in 5 countries

Straight-forward balance sheetStraight forward balance sheet• Simple debt structure• No gold hedging

Continuing reserve growth• 24 7 million ounces at Dec 31/05 ($400/oz Au)

4

24.7 million ounces at Dec. 31/05 ($400/oz Au)

1. Cost of sales is defined as operating costs divided by ounces sold.

Prospective & Stable Geography

Geographical breakdown of 2005 reserves

64%9%

17%10%

US C d B il ChilUS Canada Brazil Chile

24.7 million ounces of gold at Dec. 31, 2005, an increase of 27% over 2004

5

Reserves located in politically stable countries

Secure Production Base

Geographical breakdown of 2005 production

48%

16%17%

9%10%

US Canada Brazil Chile OtherUS Canada Brazil Chile Other

64% of production is North American based60% of costs are U.S. dollar-based

6

Large U.S. base offers security, lowers foreign exchange risk

Four-Point Plan

Objective: Enhance net asset value and cash flow per share

Paracatu expansion

GROWTH FROMTHE CORE

Regionally streamlined

BUILDING BLOCKSFOR THE FUTURE

Crown Resources

NEW OPPORTUNITIES

Strengthened management t & B d

BEST PEOPLE

Paracatu expansion

Round Mountainlayback / underground

approach

Implementing new systems

closed

Round Mountainunderground

team & Board

Promote from within

Kettle River / BuckhornContinuous

improvement program

Excellence in environmental tt d t

Pipeline for growth opportunities

matters and corporategovernance

77

Core Fundamentals

Strong operating fundamentals

Excellence in operations and corporate management

New merger accounting methodology

Cl f i t t t i lClear four-point strategic plan

Dramatic increase in gold reservesg

Growth profile in production and cash flow through 2009

8

2009

Continued Reserve GrowthGold Reserves and Resources

35,000

Measured and Indicated

25,000

30,000go

ldMeasured and Indicated

Proven and Probable

15,000

20,000

00 o

unce

s g

5,000

10,000

'00

Reserves at Dec. 31, 2004 19.4

-2001

$300/$3252002

$300/$3252003

$325/$3502004

$350/$4002005

$400/$450Year

9

Less: Assets sold/reclassified (2.0) 2005 depletion (1.8)

Add: New reserves in 2005 9.1 Reserves at Dec. 31, 2005 24.7

YearGold price used for Reserves/Resources

Second Quarter 2006

Revenue of $252.3 million; net earnings of $65.6 million ($0.19 per share)($ p )

Gold equivalent production was 385,514 ounces (on-target for ’06 est. 1.44 mm gold equivalent ounces)g q )

Cost of sales1 of $311 per ounce on 403,507 gold equivalent ounces sold

Cash flow from operating activities of $94.9 million

Cash position of $149.0 million; total debt of $163.2 million

10101. Cost of sales is defined as operating costs divided by ounces sold.

Refining Portfolio

Non-core assets sold:

George/Goose LakeE-CreteNorsemanLupin (in process)Lupin (in process)

AquariusBlanketBlanketKatangaE it iti

1111

Equity positions

Cash Margin – Senior Producers

200

250

Barrick

150

200

S$/o

unce

a c

New mont

Kinross

50

100

U

2000 2001 2002 2003 2004 2005

Cash Margin Per Ounce Produced2000 2001 2002 2003 2004 2005 CAGR

Barrick 191 164 165 191 179 214 2%Newmont 111 87 124 163 181 182 10%Kinross 96 103 105 136 158 170 12%

g

12

Kinross 96 103 105 136 158 170 12%

Source: Company Reports

Paracatu, Brazil (100%)

13

Paracatu, Brazil

Ownership: 100% Kinross

Reserves: 15,210,000 gold ozs (as at Dec. 31, 2005)Reserves: 15,210,000 gold ozs (as at Dec. 31, 2005)

Highlights: $470 million expansion project approved, expansion will contribute 2008 and beyond

Q2 2006 Operating ResultsQ2 2006 Operating ResultsProduction: 44,465 gold eq. ozsCost of sales: $ 335 / oz

YTD 2006 Operating ResultsProduction: 87,365 gold eq. ozsCost of sales: $ 331 / oz

14

Cost of sales: $ 331 / oz

Paracatu – A World-class Mine

35

s)

25

30

ons

of o

unce

s

10

15

20

eser

ves

(mill

io

0

5

10Re

0

Laro

nde

guna

s N

orte

Cor

tez

Vel

ader

o

Par

acat

u

Gol

dstri

ke

Yan

acoc

ha

15

Lag

Largest Operating Mines in North and South America

Paracatu Expansion Project

$470 million expansion project is expected to be completed in 2008

2009 - 2013 2009 - 2018LOM

2009 - 2036Average throughput (mtpa) 58.4 51.2 40.9A d ( /t) 0 37 0 37 0 40Average grade (g/t) 0.37 0.37 0.40Average recovery (%) 80.3 80.0 79.6Average annual gold production (oz) 556,700 489,800 418,100Average mining costs ($/tonne) 0 47 0 50 0 69Average mining costs ($/tonne) 0.47 0.50 0.69Average milling costs ($/tonne) 1.50 1.67 1.96Cost of sales ($/oz) 230 259 307

Average annual sustaining capital is expected to be approximately $15 million

16

Brasilia Belt- Aeromagnetic Image

Paracatu Paracatu

Thrust

FormationFormationVazante Vazante

FormationFormation

Pit outline

Thrust Front

2005 Drill

NS maganomaly

8 MAIN MAGNETICTRENDS SELECTED ON THE BRASILIABELT FOR FOLLOW UP ProgramUP

SW-NE Mag Anomaly reflects

i li iOre Boundary

17

mineralizationSPI imageDepth of mag source Total Magnetic Field image

Round Mountain, USA (50%, operator)

18

Round Mountain, USA

Ownership: 50% (Kinross operated)


Highlights: - Pre-stripping commenced for a pit layback, ore from layback expected to contribute in late 2006

- Exploration drilling to begin on underground in 2H/06



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District/Exploration MapKey 2006 Exploration Targets

Rd Mtn UndergroundN Round

MountainReno

Nevada

gDrifting and drilling

Rd Mtn – Gold Hill TrendGeophysical survey and drilling

Moores CreekCaldera

Jefferson

Las Vegas

Gold HillEngineering Optimization

Sh l Pit

ROUND ROUND MOUNTAINMOUNTAIN

GOLD HILLGOLD HILL SVCO Area of Mutual InterestSVCO Area of Mutual Interest

JeffersonJefferson

Trail CanyonCaldera

Caldera

Round Mtn Shale PitShale Pit Shale Pit Geophysical survey and drilling

Manhattan MineDrillingS li bS li bPalo AltoPalo Alto

ManhattanManhattan

ManhattanCaldera

Round MtnCaldera

Drilling

Salisbury Drilling

SalisburySalisburyPalo AltoPalo Alto

2006 Pl d D illi

20

Palo Alto Drilling

0 10 km2006 Planned Drilling

Refugio, Chile (50%, operator)

21

Refugio, Chile

Ownership: 50% (Kinross operated)


Highlights: Restart is complete, producing as plannedDrilling commenced on nearby Pancho deposit



22


Exploration Map

Compania Minera Maricunga Claims130 claims for 650 hectares

Verde Volcanic andIntrusive Complex

Refugio Volcanics

Pancho DepositREFUGIO

Laguna Tuff

Volcanics(undivided)

Mesozoic

Pancho Diorite& Volcanics

Leach Pad

Process

Rocks

Chile

Buffer Zone

Plant

0 2km

Verde WestEast & Mines

23

0 2kmGrade (g/t Au) / core length (metres) 1.02g/116m

Capital Projects Drive New Growth

First Full YearContributes

1. Puren

First Full Year

2007

Contributes

Q3 2006

2. Round Mtn. Layback 2007Q4 2006

3. Buckhorn

4 Paracatu Exp

2008

2009

Q2 2007

Q2 20084. Paracatu Exp. 2009Q2 2008

24

Kinross Driving Forward

Production rising from approximately 1.44 million ounces to 1.8-1.9 million ounces in 2009

1 8

1.9

on

Expected range of

d ti

1.6

1.7

1.8

nt p

rodu

ctio

of o

unce

s)

production

1 3

1.4

1.5

old

equi

vale

n(m

illio

ns o

1.2

1.3

2006E 2007E 2008E 2009E

Go

25

2006 - 2009 Forecast

Four Exploration Focus Regions

Alaska, B.C.,Nevada, Mexico Far NE

Russia

ChileBrazil

26

Producing AssetsExploration Targets

Positioned For Success

Fourth largest primary gold producer in North America, eighth largest in the world

Strong production and growth profile through 2009

Eight mines globally focused in North and SouthEight mines globally, focused in North and South America

“Cleared decks” for the future

Exploration expertise: track record of replacing reserves

Operating in stable and prospective countriesOperating in stable and prospective countries

Strong, experienced management team focused on clear four-point strategic plan

2727

Kinross Outperforms

2.50

2.00

orm

ance

+78%

1 00

1.50

elat

ive

Perf

o

+31%

+ 8%

0.50

1.00

5 5 5 5 6 6 6 6 6 6 6 6

Re

Sep-

05

Oct

-05

Nov

-05

Dec

-05

Jan-

06

Feb-

06

Mar

-06

Apr-

06

May

-06

Jun-

06

Jul-0

6

Aug-

06

Major North American Gold Producers (Average) Kinross Gold Price

28

Major North American Gold Producers include: Barrick and NewmontAll shares prices are based on closing prices on the New York Stock Exchange

Shares outstanding: 362 millionMarket cap.: US$4.6 billion (at September 11, 2006)

KGC: NYSE (Common shares)K: TSX (Common shares)


K: TSX (Common shares)K.U: TSX (US dollar trading symbol)

K.WT: TSX (Warrants expiring 05/12/07)

29

Kinross Gold Corporation40 King Street West, 52nd Floor, Scotia Plaza, Toronto, ON M5H 3Y2Tel: 416-365-5123 | Fax: 416-363-6622 | Toll Free: 866-561-3636

[email protected]

www.kinross.com

30

Appendix

2005 Production Statistics

Reserves Cost ofReserves Cost ofOwnership @ 12/31/05 sales/oz

(millions)

Fort Knox 100% 1,953 329,300 275$ R d M t i 50% 2 338 373 900 255$

Production

Round Mountain 50% 2,338 373,900 255$ La Coipa 50% 397 126,000 346$ Crixas 50% 379 96,200 151$ Paracatu 100% 15,210 181,000 281$Paracatu 100% 15,210 181,000 281$ Musselw hite 32% 639 79,900 330$ Porcupine Joint Venture 49% 1,653 184,000 282$ Refugio 50% 2,158 30,600 314$

$Kettle River* 100% 14 68,100 270$

31

* Reserves at Kettle River are expected to be enhanced pending completion of Crown Resources acquisition and addition of reserves from the Buckhorn Mountain deposit.

Musselwhite, Canada(32%, Goldcorp operated)

3232

Musselwhite, Canada


Reserves: 639 000 gold ozs ( t D 31 2005)Reserves: 639,000 gold ozs (as at Dec. 31, 2005)



33


Fort Knox, USA (100%)

3434

Fort Knox, USA


Reserves: 1 953 000 gold ozs ( t D 31 2005)Reserves: 1,953,000 gold ozs (as at Dec. 31, 2005)

Highlights: Heap leach scenario being evaluated



35


Porcupine JV, Canada(49%, Goldcorp operated)

3636

Porcupine JV, Canada


Reserves: 1,653,000 gold ozs (as at Dec. 31, 2005)

Highlights: Pamour pit now contributing to production



37


La Coipa, Chile (50%, Goldcorp operated)

3838

La Coipa, Chile


Reserves: 397 000 gold ozs ( t D 31 2005)Reserves: 397,000 gold ozs (as at Dec. 31, 2005)24,389,000 silver ozs (as at Dec. 31, 2005)

Highlights: Puren deposit pre-strip underway for contribution in Q3/06



39


Crixas, Brazil (50%, AngloGold operated)

4040

Crixas, Brazil


Reserves: 379 000 gold ozs ( t D 31 2005)Reserves: 379,000 gold ozs (as at Dec. 31, 2005)

Q2 2006 Operating ResultsQ2 2006 Operating ResultsProduction: 24,424 gold ozsCost of sales: $ 202 / oz

YTD 2006 Operating ResultsProduction: 48,545 gold ozsCost of sales: $ 195 / oz

41


Kettle River, USA (100%)

4242

Kettle River, USA


Highlights: Buckhorn Mountain and Crown transaction:- Acquisition completed September 2006- Permitting is ongoing- Construction expected to begin in late 2006, production expected late 2007expected late 2007

2005 Operating ResultsProduction: 68 100 gold ozsProduction: 68,100 gold ozsCost of sales: $ 270 / oz

There has been no production in 2006 as the

43

There has been no production in 2006 as the mill has been shutdown, awaiting construction of the Buckhorn mine.

Shares outstanding: 347.7 millionMarket cap.: US$4.6 billion (at September 11, 2006)

KGC: NYSE (Common shares)K: TSX (Common shares)


K: TSX (Common shares)K.U: TSX (US dollar trading symbol)

K.WT: TSX (Warrants expiring 05/12/07)

44

Kinross Gold Corporation40 King Street West, 52nd Floor, Scotia Plaza, Toronto, ON M5H 3Y2Tel: 416-365-5123 | Fax: 416-363-6622 | Toll Free: 866-561-3636

[email protected]

www.kinross.com

september 2006 1 · 2015. 10. 15. · kinross: a major gold producer 2006 estimated: • gld i l d...

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