Kinross Gold Corporation · TSX:K
Kinross Gold — Q1 2015 Earnings Presentation
19 slides from Kinross Gold's earnings presentation, May 6, 2015
Slide 1: Kinross Gold Corporation Q1 2015 Results Conference Call & Webcast
May 6 KINROSS GOLD CORPORATION 2015 Q1 2015 Results Conference Call & Webcast 11 www.kinross.com
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 and responses to questions, including but not limited to any information as to the future performance of Kinross
Slide 3: First Quarter Results Highlights
FIRST QUARTER RESULTS HIGHLIGHTS 33 www.kinross.com J. PAUL ROLLINSON, CEO
Slide 4: Delivering Strong Performance
FIRST QUARTER HIGHLIGHTS DELIVERING STRONG PERFORMANCE 11 consecutive quarters of meeting our operational targets • Strong performance from operations delivered solid Q1 2015 results Cost of sales and all-in sustaining costs favourable year-over-year • On track to meet 2015 production, cost of sal
Slide 5: Maricunga Update
FIRST QUARTER 2015 MARICUNGA UPDATE • Heavy rains in late March significantly damaged roads and power lines in the region • Mine facilities did not sustain any damage • Mining and crushing operations expected to restart in June with support of an additional backup power plant • No change to 2015 Ame
Slide 6: Organic Production Initiatives
FIRST QUARTER HIGHLIGHTS ORGANIC PRODUCTION INITIATIVES PARACATU, BRAZIL CHIRANO, GHANA LA COIPA PHASE 7, CHILE • Reprocessing of tailings • Extension of mine life to • Pre-feasibility study from Santo Antonio dam 2020 with additional ounces expected to be completed at two deposits: during Q3 2015 •
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS 77 www.kinross.com TONY GIARDINI, CFO
Slide 8: Strong Balance Sheet: Solid Financial Position
STRONG BALANCE SHEET SOLID FINANCIAL POSITION Balance sheet strength continues to be a priority objective STRONG LIQUIDITY POSITION MAINTAINING FINANCIAL FLEXIBILITY • Improved balance sheet in Q1 2015: Repaid $30M of debt Ended Q1 2015 with over $1.0B in cash, $1.1 $2.6B a $27M increase from ye
Slide 9: Financial Results
FIRST QUARTER 2015 FINANCIAL RESULTS Q1 2014 Q1 2015 Attributable gold equivalent ounces (oz.)(2) Produced 664,690 629,360 Sold 621,531 634,565 Average realized gold price ($/oz.) $1,299 $1,218 Production cost of sales ($/oz.)(3) Gold equivalent $727 $709 By-product $708 $696 All-in sustaining cost
Slide 10: Operating Highlights
OPERATING HIGHLIGHTS 1010 www.kinross.com WARWICK MORLEY-JEPSON, COO
Slide 11: Delivering Strong Operating Results
OPERATIONAL EXCELLENCE DELIVERING STRONG OPERATING RESULTS RUSSIA AMERICAS Dvoinoye Kupol Fort Knox Kettle River-Buckhorn Round Mountain 2015E GOLD EQUIVALENT Tasiast PRODUCTION(1) Chirano 29% WEST AFRICA 2.4-2.6M Paracatu ounces 54% La Coipa Maricunga 17% GLOBAL PORTFOLIO Operating mine Americas We
Slide 12: Americas
OPERATIONAL EXCELLENCE AMERICAS • Successfully recommissioned the mill at ROUND MOUNTAIN, which is now operating at full capacity • FORT KNOX production lower compared with Q4 2014 due to expected seasonal slow down of production from the heap leach • Expected decline in grades at KETTLE RIVER-BUCKH
Slide 13: Maricunga Update
AMERICAS MARICUNGA UPDATE • Severe weather event in northern Chile occurred in late March • Roads and power lines in the area were severely damaged, while Maricunga facilities did not sustain any damage • Mining and crushing temporarily suspended ADR plant continues to operate at 80% capacity • Pl
Slide 14: New Processing Initiative at Paracatu
AMERICAS NEW PROCESSING INITIATIVE AT PARACATU Expected to start-up Q4, contributing ~11,000 ounces in 2015 • Low-cost, incremental production resulting from: Enriched grades near discharge areas of the facility Utilization of excess capacity in Plant 1 due to ore blending strategy Lower energ
Slide 15: Russia
OPERATIONAL EXCELLENCE RUSSIA • First quarter production at the combined operation increased compared with Q4 2014 • Production cost of sales decreased to $476 per Au eq. oz. Lowest level since Q4 2012 • Mainly due to savings associated with favourable foreign exchange movements • Began to increas
Slide 16: West Africa
OPERATIONAL EXCELLENCE WEST AFRICA • TASIAST production declined compared with Q4 2014 as a result of mine sequencing and lower mill grades • Ongoing continuous improvement initiatives focused on improving efficiency and reducing costs • Minimal impact to CHIRANO production as a result of power rati
Slide 17: The Way Forward: Principles for Building Value
THE WAY FORWARD PRINCIPLES FOR BUILDING VALUE • Focus on operational excellence • Quality over quantity • Disciplined capital allocation • Maintaining a strong balance sheet 1717 www.kinross.com
Slide 18: Endnotes
ENDNOTES 1) For more information regarding Kinross’ production, cost and capital expenditures outlook for 2015, please refer to the news release dated February 10, 2015, available on our website at www.kinross.com. Kinross’ outlook for 2015 represents forward-looking information and users are cautio
Slide 19: Kinross Gold Corporation
KINROSS GOLD CORPORATION 25 York Street, 17th Floor │Toronto, ON │ M5J 2V5 www.kinross.com 1919 www.kinross.com