delivering disciplined growth...td newcrest 2011 mining conference january 26, 2011 6 track record...
Post on 20-Aug-2020
2 Views
Preview:
TRANSCRIPT
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
1
Delivering Disciplined Growth
TD Newcrest 2011 Mining Conference
January 26, 2011
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” within the meaning of applicable securities laws, including the provisions of the Securities Act (Ontario) and the provisions for “safe harbour” under the United States Private Securities Litigation Reform Act of 1995 and are based on expectations, estimates and projections as of the date of this presentation. Forward looking statements include, without limitation, possible events; opportunities; statements with respect to possible events or opportunities; estimates and the realization of such estimates; future development, mining activities, production and growth, including but not limited to cost and timing; success of exploration or development of operations; the future price of gold and silver; currency fluctuations; expected capital expenditures and requirements for additional capital; government regulation of mining operations and exploration; environmental risks; unanticipated reclamation expenses; and title disputes. The words “plans”, “expects”, “subject to”, “budget”, “scheduled”, “timeline”, “projected”, “pro forma”, “estimates”, “envision”, “view”, “forecasts”, “guidance”, “conceptual”, “target”, “possible”, “illustrative”, “model”, “opportunity”, “potential”, “intends”, “anticipates” or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “can”, “could”, “would”, “should”, “might”, “indicates”, “will be taken”, “become”, “create”, “occur”, or “be achieved”, and similar expressions identify forward looking statements. Forward‐looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Kinross as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Statements representing management’s financial and other outlook have been prepared solely for purposes of expressing their current views regarding the Company’s financial and other outlook and may not be appropriate for any other purpose. Many of these uncertainties and contingencies can affect, and could cause, Kinross’ actual results to differ materially from those expressed or implied in any forward looking statements made by, or on behalf of, Kinross. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. All of the forward looking statements made in this presentation are qualified by these cautionary statements, and those made in our filings with the securities regulators of Canada and the U.S., including but not limited to those cautionary statements made in the “Risk Factors” section of our most recently filed Annual Information Form, the “Risk Analysis” section of our FYE 2009 Management’s Discussion and Analysis and the “Cautionary Statement on Forward‐Looking Information” in our news release dated November 3, 2010, to which readers are referred and which are incorporated by reference in this presentation, all of which qualify any and all forward‐looking statements made in this presentation. These factors are not intended to represent a
2
complete list of the factors that could affect Kinross. Kinross disclaims any intention or obligation to update or revise any forward‐looking statements or to explain any material difference between subsequent actual events and such forward‐looking statements, except to the extent required by applicable law.
Other information
Where we say "we", "us", "our", the "Company", or "Kinross" in this presentation, we mean Kinross Gold Corporation and/or one or more or all of its subsidiaries, as may be applicable. The technical information about the Company’s mineral properties contained in this presentation has been prepared under the supervision of Mr. Rob Henderson, an officer of the Company who is a “qualified person” within the meaning of National Instrument 43‐101 (“NI 43‐101”). The technical information about the Tasiast mineral resource contained in this presentation has been prepared under the supervision of Mr. Nic Johnson, who is a “qualified person” with the meaning of NI 43‐101.
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
2
I. Why Gold Now?y
3
Increasing Demand for Gold
$1,250
$1,450
$150
$160
$170
$180 Investment / Other
Total Fabrication
Gold Price (US$/oz)Current gold price
$250
$450
$650
$850
$1,050
$
$50
$60
$70
$80
$90
$100
$110
$120
$130
$140
$ 50
Gold Price (US$/oz.)
tal G
old Deman
d (US$ billions)
Current gold price
4Source: GFMS World Gold Survey 2010 – Update 1
‐$150
$50
$
$0
$10
$20
$30
$40
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e
Tot
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
3
2,500
3,000Other
Big Four*
Declining world supply from mine production
500
1,000
1,500
2,000
Tonnes
5
0
1970 1975 1980 1985 1990 1995 2000 2005 2010e
* South Africa, United States, Australia, Canada
Source: GFMS World Gold Survey 2010 and Updates 1 & 2
Major Gold Discoveries: 1997 ‐ Present
70
80
90
3,000
3,500
(MM
oz.
)
Sp
en
din
g
10
20
30
40
50
60
70
500
1,000
1,500
2,000
2,500
Ave
rage
of
Ma
jor A
u D
isco
verie
s (
era
ge o
f G
rass
roo
ts +
La
te S
tage
S(U
S$
MM
)
6
Source: Metals Economics Group and Company estimates
0-
1997 Present 3 Y
ea
r A
3 Y
ea
r Ave
Total Au Ounces Discovered (3 yr. Avg) Gold Exploration Spending (3 yr. Avg)
10 5 6 5 2 3 7 5 08 2# of Major Gold Discoveries
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
4
II. Why Kinross Now?y
7
Continuing the Kinross Transformation
Kinross Yesterday
4.5 – 4.9
Kinross Now(1)
1.6
2.2
Gold equivalen
t production (mm oz)
2.6*
Gold equivalen
t production (mm oz)
8
(1) Please refer to endnote #1.* Figure represents Kinross’ 2010 preliminary production results, including estimated full year production from the West African assets, which were acquired September 17th, 2010
2005 2009 2010e 2015e
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
5
United StatesBrazil Chile
World Gold Reserves and Resources
Top Countries(mm oz.)
Total Reserves & Resources(mm oz.)
CountryTotal Reserves &
Resources%
South Africa
Ghana
Canada
Mexico
Russia
United States
1. South Africa 997 29.7%
2. Russia 225 6.7%
3. Australia 193 5.8%
4. Indonesia 193 5.8%
5. U.S 177 5.3%
6. Canada 135 4.0%
7. China 132 3.9%
8. Chile 109 3.3%
9
Australia
Indonesia
China
Other Countries
Source: USGS
9. Mexico 109 3.3%
10. Ghana 87 2.6%
11. Brazil 80 2.4%
Other 916 27.3%
Total: 3,353 100%
Focused in the World’s Best Gold Districts
Fort Knox
White Gold
Dvoinoye
Kupol
High‐grade epithermal district with exploration upside
Strong North American asset base in the Tintinagold belt, Nevada and
WashingtonWhite Gold
Kettle River‐Buckhorn
Round Mountain
Fruta del Crixas
Paracatu
Tasiast
Chirano
Cornerstone assets in a highly prospective region
Washington
10
‐ Operating mine ‐ Development project
NorteParacatu
La Coipa
MaricungaCerro Casale
Lobo‐Marte
Substantial production base and major
development pipeline
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
6
Track Record of Gold Reserve Growth)
Tasiast & Chirano
Kinross Today
and
Pro
bab
le G
old
Res
erv
es (
mm
oz)
(2
20.8 13.3
20 0
33.2
8.2 53.4
Mined
Divested
Acquired
Exploration & Development
11
Pro
ven
a
15.320.0
2004 Current
(2) Please refer to endnote #2.Totals may not add due to rounding
Strong Balance Sheet
• Cash on hand: ~$1.5 bn*• Long‐term investments: $713 mm
o Includes equity investment portfolio valued at ~$292 mm
$1,381
$713
$524
US$ m
illions
As at September 30, 2010
12
Cash and cash equivalents Long‐term investments Long‐term debt
* After sale of Osisko Mining Corporation shares, completed in December 2010
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
7
Q3 2010 Highlights
• Continuing to deliver strong financial results
Adjusted Operating Cash
$582
$736
$203
$261 $124
Revenue +26%
Adjusted Operating Cash Flow(3,4)
+28%
Adjusted Net Earnings(4)
US
$ m
illio
ns
13
(3) Please refer to endnote #3.(4) Please refer to endnote #4.
Q3/09 Q3/10 Q3/09 Q3/10
$2
Q3/09 Q3/10
U
Q3 2010 Highlights
• Production: 575,065 ounces (up 7% from Q3/09)
• Cost of sales margin(5,6) of $673/oz (up 37% from Q3/09)Cost of sales margin( , ) of $673/oz. (up 37% from Q3/09)
• Paracatu outperforms expectations; 4th ball mill approved
• Closed acquisition of Red Back Mining
• Appointment of Brant Hinze as COO, effective October 1st, 2010
• Sold Harry Winston / Diavik interest
• Consolidated ownership of Kupol East & West exploration licenses
14
Consolidated ownership of Kupol East & West exploration licenses
• Closed acquisition of Dvoinoye
• Tasiast update: ‐ Added 3.2 mm oz of mineral resource(7)
‐ Scoping study in progress
(5) Please refer to endnote #5.(6) Please refer to endnote #6.(7) Please refer to endnote #7.
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
8
Q3 2010 Results
(in millions, except ounces and per share amounts)
Q3/09 Q3/10 % ChangeRealized Gold Price
24%
COS Margin(6)
Gold equivalent production(ounces)
537,440 575,065 7%
Gold equivalent sales(ounces)
554,232 576,955 4%
Revenue $582.3 $735.5 26%
Adjusted operating cash flow $203.0 $260.8 28%
(8)
(3,4)
(8)
+24%$1,190/oz
Cost of Sales(5)
+37%$673/oz
15
per share $0.29 $0.34 17%
Adjusted net earnings $1.7 $123.6
per share $0.00 $0.16
(4)
+11%$517/oz
(3) Please refer to endnote #3.(4) Please refer to endnote #4.(5) Please refer to endnote #5.(6) Please refer to endnote #6.
(8) Please refer to endnote #8.
Paracatu Continues to Perform Ahead of Plan
129,257
$650
$700130,000
108,421
117,472 118,101
$350
$400
$450
$500
$550
$600
$650
105,000
110,000
115,000
120,000
125,000
Cost of Sales ($/oz)
uivalent production (ounces)
16
$200
$250
$300
95,000
100,000
Q4/09 Q1/10 Q2/10 Q3/10
Gold eq
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
9
Expanding Margins
$6482004 – YTD Q3 2010:
• Average realized gold price: +182%
Ki ’ tt ib t bl t f l i (6) +302%
$170
$279
$329
$436
$530
t of Sales Margin ($/oz.)
• Kinross’ attributable cost of sales margin(6): +302%
+302%
17
$161 $170
FY/04 FY/05 FY/06 FY/07 FY/08 FY/09 YTD Q3/10
Cost
(6) Please refer to endnote #6.
• Record high operating cash flow in 2009 (+35% vs. 2008)
• 5‐yr CAGR : 25%
Growing Cash Flow per Share
$1 36 YTD/09 vs. YTD/105 yr CAGR : 25%
$0.45$0.51
$0.80
$0.56
$1.01
$1.36
Cash Flow per Share (US$)(4)
$0.93
$1.05
/ /
18
FY/04 FY/05 FY/06 FY/07 FY/08 FY/09
Adjusted
YTD Q3/09 YTD Q3/10
(4) Please refer to endnote #4.
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
10
2010: Met Production and Cost Guidance(1)
Country Production (000 ounces ) Cost of Sales / oz.
Production and Costs
USA 690 – 745 $480 – 520
Russia(8) 495 – 525 $340 – 365
Brazil 510 – 580 $490 – 555
Chile 350 – 380 $700 – 720
Kinross (w/o West Africa) 2.2 mm oz. $495 – 510
19
Key Sensitivities: Approximately 50% ‐60% of the Company’s costs are denominated in US dollars. A 10% change in foreign exchange could result in anapproximate $7 impact on cost of sales per ounce. A $10 change in the price of oil could result in an approximate $3 impact on cost of sales per ounce.The impact on royalties of a $100 change in the gold price could result in an approximate $4 impact on cost of sales per ounce.
West Africa(8,9) 135 – 155 $650 – 675
Total Kinross: 2.30 – 2.35 mm oz $505 – 520
(1) Please refer to endnote #1.(8) Please refer to endnote #8.(9) Please refer to endnote #9.
III. New Project Portfolioj
20
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
11
Kinross Project Portfolio
Paracatu 3rd Ball Mill
2011 2012 2013 2014 2015
Paracatu 3 Ball Mill
Paracatu Desulphurization
Maricunga SART Plant
Paracatu 4th Ball Mill
Dvoinoye
Tasiast
21
Lobo‐Marte
Fruta del Norte
Cerro Casale
Conceptual timeline based on current Company estimates.
Paracatu: 3rd Ball Mill Update
22
Lifting mill feed end to mill shell Mill feed end lifted to mill shell
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
12
Paracatu: At‐site Expansion
3rd Ball Mill
• Installing 3rd ball mill to increase throughputg g p
• Procurement commitments at 90%
• Total project 60% complete; construction at site 40% complete
• On schedule for completion and commissioning in H1 2011
4th Ball Mill
• Allows Paracatu to sustain planned throughput of ~41 mtpa in future years
23
Allows Paracatu to sustain planned throughput of 41 mtpa in future years
• Capital estimate: $145 mm (includes $120 mm for mill; $25 mm for
additional truck and electric shovel)
• Expected to start‐up in the first half of 2012
Exploration Update at Tasiast
• Added 11 drills since acquisition; 22 rigs currently on‐site
o 16 currently on West Brancho 16 currently on West Branch
• Completed ~194,000 m of drilling in 2010
• Scoping study completed in December
• Feasibility study expected to be complete mid‐2011
• Reserve & resource update on Feb. 16th with FY’10 results
24
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
13
Plan View of Drilling at Tasiast
25
Greenschist Target
Aug. ’09: 21 m at 1.74 g/t
Aug.’09: 17 m at 1.69 g/t Jan’10: 84 m at 1.92 g/t
Jan.’10: 85 m at 2.42 g/t
Jan.’10:94 m at 2.78 g/t
Sep.’10:81 m at 3.00g/t
Sep.’10:45 m at 4.26 g/t
Sep.’10:74 m at 4.52 g/t
26
Scale 100 m
Felsic Volcanic Banded Iron Formation Volcaniclastic Greenschist
Source: Red Back Mining news releases dated August 31, 2009, January 20, 2010 and September 7, 2010, available on SEDAR as Red Back Mining documents.
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
14
Resource Growth at Tasiast
• 3.2 mm oz of Inferred Resource added in November 2010
3.75.4
9.2 9.30.8
1.4
1.9
5.1
Ounces (m
illions)
(7,10)
27
Year‐end 2008 November 2009 September 2010 November 2010
Measured & Indicated Mineral Resources Inferred Mineral Resources
(7) Please refer to endnote #7.(10) Please refer to endnote #10.
Note: Mineral Resources are reported inclusive of Mineral Reserves. For the most recent Mineral Reserve statement for Tasiast, see the Kinross website.
Tasiast: Conceptual Pit Shell
5 mm oz reserve pit
20 mm oz exploration target pit
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
15
C6734m at 1.71g/t4m at 11.10g/t
C6734m at 1.71g/t4m at 11.10g/t
District Targets
19m at 1.19g/t12m at 2.18g/t19m at 1.19g/t12m at 2.18g/t
Aoeouat15m at 3.72g/t
Aoeouat15m at 3.72g/t
6m at 10.62g/t6m at 10.62g/t
9 t 7 41 /t9 t 7 41 /t
292910km
C6913m at 3.89/t21m at 0.88g/t15m at 1.72g/t12m at 1.07g/t10m at 1.66g/t
C6913m at 3.89/t21m at 0.88g/t15m at 1.72g/t12m at 1.07g/t10m at 1.66g/t
Prolongation13m at 4.08g/t6m at 2.61g/t6m at 13.0g/t
Prolongation13m at 4.08g/t6m at 2.61g/t6m at 13.0g/t
9m at 7.41g/t9m at 7.41g/t
12m at 11.1g/t12m at 11.1g/t
Please refer to the Tasiast Technical Report, dated August 18, 2010, available on Kinross’ website.
District Potential – 82 x 25 km Archean Greenstone Belt
Tasiast Geology Timmins Geology with Major Au Mines & Au Occurrences(i)
Tasiast
(i) Source: Ontario Geological Survey
25 km 25 km
30
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
16
Dvoinoye, Russia
• Closed acquisition August 27, 2010
l d f l d ll
Pevek
• Completed over 10,000 m of linear drilling
• Completed road connection between site and paved highway to Pevek
• Clearing of old mine infrastructure well underway
• Targeted to commence commissioning in 2013 Kupol mine
Dvoinoye deposit & Vodorazdelnaya
concession
~100 km
31
• Pre‐feasibility study completed at year‐end 2010
Details to be discussed with Q4 results Feb 16
Fruta del Norte, Ecuador
Quito
oDetails to be discussed with Q4 results Feb. 16
• Geotechnical and hydrogeological drilling on La Zarza and Colibri concessions
• Progress on permit approvals at Colibri and La Zarza
Gold Mineral Resources(2)
32
Gold Mineral Resources
Tonnes (thousands)
Grade (g/t)
Ounces(thousands)
Measured & Indicated 15,932 11.20 5,737
Inferred 24,306 7.85 6,135
(2) Please refer to endnote #2.
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
17
Fruta del Norte/Condor (100%)
FDN
• Exploration to date has located a number of epithermal and porphyry‐style targets which ill b th f f ti d i l FDN
Pull-apartbasin
will be the focus of continued regional exploration
• FDN NI 43‐101 Technical Report:Describes major exploration targets in area of Suarez pull‐apart basin
• 2010 FDN exploration spending: $34 mm
33
• Updated pre‐feasibility study for Lobo‐Marte completed
• Feasibility study in the first half of 2011
Lobo‐Marte, Chile
Lobo Marte
La Coipa
• Feasibility study in the first half of 2011
• Remain on schedule to submit the EIA in mid‐2011
• Permitting an additional 20,000 m of drilling for 2011
• Commissioning for the project is targeted to commence in 2014
Lobo‐Marte
Maricunga
Cerro Casale
~110 km
Gold Mineral Reserves and Resources(11)
34
Gold Mineral Reserves and Resources(11)
Tonnes(thousands)
Grade (g/t)
Ounces(thousands)
Proven and Probable Reserves 141,124 1.22 5,552
Measured & Indicated Resources 20,091 0.91 590
(2) Please refer to endnote #2.
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
18
Valuation
35
TD: P / NAV
2.0
1.41.4
1.1 1.1
36
AEM GG ABX AUY KGC
Source: TD Newcrest research – January 18, 2011
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
19
TD: P / 2011e CFPS
16.3
13.3
10.9
9.07.6
37
AEM GG KGC AUY ABX
Source: TD Newcrest research – January 18, 2011
Key Objectives for 2010
Declare increased reserves
Complete Lobo‐Marte pre‐feasibility study
Close sale of 25% of Cerro Casale
Close sale of 25% of Cerro Casale
Complete 18,000 drill program at Fruta del Norte
Complete investment in Red Back Mining
Complete acquisition of Underworld Resources
Final feasibility study for Cerro Casale
Complete Maricunga Expansion feasibility study (H1 2010)
Close Dvoinoye acquisition
38
Close and integrate Red Back acquisition
Advance Fruta del Norte pre‐feasibility study
Delivery and construction of 3rd ball mill at Paracatu
Complete metallurgical testing and finalize pre‐feasibility study at Lobo‐Marte
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
20
Why Kinross Now?
1. High‐growth major
2. Strong cash flow from pure gold production
3. Attractive valuation
y
39
Endnotes
1) For more information regarding Kinross’ preliminary operating results, and the production and cost outlook for 2010, including Kinross’ production and cost estimate for the West African assets acquired through the acquisition of Red Back Mining, the please refer to the news releases dated January 13, 2011 and November 3, 2010, available on our website at www.kinross.com.
2) “Current” proven and probable mineral reserves reflect Kinross’ Mineral Reserve and Mineral Resource Statement as at December 31, 2009, contained in our news release dated January 28, 2010, adjusted to reflect the sale of half of Kinross’ 50% interest in the Cerro Casale project to Barrick in March 2010 and the acquisition of Tasiast and Chirano. For historical reserve and resource information, refer to Kinross’ public filings, available on our q , p g ,website. Proven and Probable Mineral Reserves for Tasiast and Chirano reflect Red Back’s Mineral Reserve and Mineral Resource statement as at December 31, 2009, adjusted to reflect updates in 2010. Please refer to the Red Back 2009 Annual Information Form and the Red Back news releases dated February 1, 2010, March 1, 2010, July 19, 2010 and September 7, 2010, which are available as Red Back documents on SEDAR at www.sedar.com. For historical mineral reserve and mineral resource relating the Tasiast and Chirano properties, please refer to Red Back’s public filings, available under Red Back’s profile on SEDAR.
3) Unless otherwise stated, all cash flow and cash flow per share figures in this presentation are adjusted operating cash flow.
4) Adjusted net earnings and adjusted operating cash flow numbers are non‐GAAP financial measures which are meant to provide additional information and should not be used as a substitute for performance measures prepared in accordance with GAAP. For more information about these non‐GAAP financial measures, and a reconciliation of these non‐GAAP financial measures for the three months and nine months ended September 30, 2010 and September 30, 2009, please refer to the press release dated November 3, 2010, available on our website at www.kinross.com under the heading “Reconciliation of non‐GAAP financial measures”.
5) Cost of sales per ounce is defined as cost of sales as per the financial statements divided by the number of gold equivalent ounces sold, both reduced for Kupol sales attributable to a third‐party 25% shareholder and for Chirano sales attributable to a 10% minority interest holder.
6) Cost of sales margin is defined as the average realized price of gold less attributable cost of sales per ounce
40
6) Cost of sales margin is defined as the average realized price of gold less attributable cost of sales per ounce.
7) For more information on Kinross’ updated Measured and Indicated Mineral Resource and Inferred Mineral Resource estimate for Tasiast, please refer to the news release dated November 3, 2010, which is available on our website at www.kinross.com.
8) Unless otherwise stated, gold equivalent production, gold equivalent ounces sold and cost of sales figures in this presentation are based on Kinross’ share of Kupol production (75%) and Chirano production (90%).
9) For details regarding the reconciliation of the cost of sales forecast for the West African assets, please refer to the section titled “Red Back Cost of Sales Reconciliation” in our news release dated November 3, 2010, available on our website at www.kinross.com.
10) For historical mineral resource estimates relating to the Tasiast property, please refer to Red Back’s public filings, available under Red Back’s profile on SEDAR.
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
21
Appendixpp
41
Fort Knox, USA (100%)
• Located in Alaska
• Expansion and new heap leach to extend mine life
• Material being stacked on new pads
Operating Results
Production (Au eq. oz)
Cost of Sales($/oz)
YTD Q3 2010 264,590 $550
YTD Q3 2009 176,646 $596
2009 Gold Reserves and Resources(2)
42
2009 Gold Reserves and Resources(2)
Tonnes(thousands)
Grade (g/t)
Ounces(thousands)
2P Reserves 252,945 0.45 3,692
M&I Resources 105,768 0.50 1,694
(2) Please refer to endnote #2.
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
22
Round Mountain, USA (50%)
• Kinross‐operated JV with Barrick
• Located in Nevada, USA
• Open pit mine
Operating Results
Production (Au eq. oz)
Cost of Sales($/oz)
YTD Q3 2010 141,033 $614
YTD Q3 2009 160,873 $527
2009 Gold Reserves and Resources(2)
43
2009 Gold Reserves and Resources
Tonnes(thousands)
Grade (g/t)
oz (thousands)
2P Reserves 71,493 0.64 1,468
M&I Resources 39,837 0.73 938
(2) Please refer to endnote #2.
Kettle River, USA (100%)
• Entered production in Q4’08
• Small foot‐print, underground mine
• Near‐mine exploration targets
Operating Results
Production (Au eq. oz)
Cost of Sales($/oz)
YTD Q3 2010 145,555 $318
YTD Q3 2009 111,192 $308
2009 Gold Reserves and Resources(2)
44
2009 Gold Reserves and Resources(2)
Tonnes(thousands)
Grade (g/t)
oz (thousands)
2P Reserves 1,701 13.88 759
M&I Resources ‐ ‐ ‐
(2) Please refer to endnote #2.
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
23
Kupol, Russia (75%)
• 3,000 tpd mill with open‐pit and underground
• 2009 first full year of production
Operating Results
Production (Au eq. oz)
Cost of Sales($/oz)
YTD Q3 2010 404,504 $318
YTD Q3 2009 529,421 $255
2009 Reserves and Resources(2)
Tonnes Grade Ounces
45
(thousands) (g/t) (thousands)
2P Reserves: AuAg
6,11813.04167.8
2,56533,010
M&I Resources: AuAg
1715.48269.2
9149
(2) Please refer to endnote #2.
Paracatu, Brazil (100%)
• Recoveries near target
• Major expansion commissioning
Operating Results
Production (Au eq. oz)
Cost of Sales($/oz)
YTD Q3 2010 364,830 $528
YTD Q3 2009 245,975 $711
2009 Gold Reserves and Resources(2)
• Adding 3rd and 4th ball mills
46
Tonnes(thousands)
Grade (g/t)
Ounces (thousands)
2P Reserves 1,320,886 0.41 17,472
M&I Resources 225,581 0.41 2,994
(2) Please refer to endnote #2.
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
24
Crixas, Brazil (50%)
• JV with AngloGold Ashanti
• Underground mine located in the Brazil
Operating Results
Production (Au eq. oz)
Cost of Sales($/oz)
YTD Q3 2010 56,798 $477
YTD Q3 2009 52,624 $430
Reserves and Resources(2)
47
Tonnes(thousands)
Grade (g/t)
Ounces (thousands)
2P Reserves 2,923 3.70 347
M&I Resources 303 3.40 33
(2) Please refer to endnote #2.
La Coipa, Chile (100%)
• Gold/silver mine in the Maricunga district
• Comprehensive exploration program
Operating Results
Production (Au eq. oz)
Cost of Sales($/oz)
YTD Q3 2010 136,310 $666
YTD Q3 2009 174,384 $409
2009 Reserves and Resources(2)
Tonnes(th d )
Grade ( /t)
Ounces(th d )
48
(thousands) (g/t) (thousands)
2P Reserves: AuAg
26,5681.3044.4
1,10737,944
M&I Resources: AuAg
11,2290.8838.5
31713,901
(2) Please refer to endnote #2.
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
25
Maricunga, Chile (100%)
• Located the highly prospective Maricunga District
• Open pit, heap leach operation
Operating Results
Production (Au eq. oz)
Cost of Sales($/oz)
YTD Q3 2010 123,611 $682
YTD Q3 2009 173,692 $525
2009 Gold Reserves and Resources(2)
49
Tonnes(thousands)
Grade (g/t)
Ounces(thousands)
2P Reserves 280,792 0.71 6,403
M&I Resources 160,049 0.57 2,945
(2) Please refer to endnote #2.
Tasiast, Mauritania (100%)
• Open-pit mine located in Mauritania, ~300 km north of the capital city of Nouakchott
Sit t d i t fl t l l t d d t• Situated in remote, flat, sparsely populated desert
• Commercial production commenced in January 2008
• 2.5 Mtpa CIL mill and 4.5 Mtpa dump leach operation
• 2010e production(1): ~185-195k oz
• Road access to mine and small air strip on site
• Highly prospective, underexplored gold belt
50
g y p p , p g
• Only 8 km of 70 km strike length tested
• 156,784 m of drilling completed (as of Q3’10)
Tonnes(000)
Grade(g/t)
Cont’d Au (mm oz.)
2P Mineral Reserves(2) 115,200 1.4 5.03
M&I Mineral Resources(7) 196,400 1.47 9.27
Inferred Mineral Resources(7) 105,600 1.5 5.15
M&I Mineral Resources are stated inclusive of mineral reserves.
(1) Please refer to endnote #1.(5) Please refer to endnote #5.(7) Please refer to endnote #7.
Kinross Gold CorporationTD Newcrest 2011 Mining Conference
January 26, 2011
26
Chirano, Ghana (90%)
• Open‐pit and underground mining operation
• 90% owned by Red Back; Government of Ghana holds a 10% carried interest
• 9 open‐pits and 2 recently‐discovered underground deposits
• 2010e production of ~215‐225 k oz(1)
• Current estimated mine life of 10+ years
Gold Reserves and Resources(2)
Tonnes Grade Contained
51
Tonnes(thousands)
Grade (g/t)
Contained Au (mm oz)
2P Reserves 41,300 2.4 3.19
M&I Resources 46,600 2.71 4.07
Inferred Resources 9,600 2.7 0.8
(1) Please refer to endnote #1.(2) Please refer to endnote #2.
M&I Mineral Resources are stated inclusive of mineral reserves.
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON M5J 2V5
Tel: 416‐365‐5123
Toll‐Free: 1‐866‐561‐3636
p
52
www.kinross.com
top related