Kinross Gold Corporation · TSX:K
Kinross Gold — Q1 2014 Earnings Presentation
17 slides from Kinross Gold's earnings presentation, May 8, 2014
Slide 1: Kinross Gold Corporation Q1 2014 Results Webcast
May 08 KINROSS GOLD CORPORATION 2014 Q1 2014 Results 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 any information as to the future performance of Kinross, constitute “forwa
Slide 3: J. Paul Rollinson, Chief Executive Officer
J. PAUL ROLLINSON CHIEF EXECUTIVE OFFICER 33 www.kinross.com
Slide 4: Delivering Strong Operating Performance
OPERATIONAL EXCELLENCE DELIVERING STRONG OPERATING PERFORMANCE • Strong performance from operations delivered solid Q1 2014 results Results for production, cost of sales and all-in sustaining costs favourable year-over-year GOLD EQUIVALENT PRODUCTION COST OF ALL-IN SUSTAINING COST(3) PRODUCTION(1)
Slide 5: Continued Focus on Cost Reduction
OPERATIONAL EXCELLENCE CONTINUED FOCUS ON COST REDUCTION • Focus on cost reductions and continuous improvement resulting in lower cost of sales at three of our sites CHIRANO, GHANA TASIAST, MAURITANIA MARICUNGA, CHILE • Production cost of sales per • Production cost of sales per • Production cost of
Slide 6: Tasiast, Mauritania: Feasibility Study on Mill Expansion Complete
TASIAST, MAURITANIA FEASIBILITY STUDY ON MILL EXPANSION COMPLETE • Feasibility study based on 38,000 tpd mill produced promising results • A mill expansion has the potential to: Add a major source of new production to Kinross’ portfolio Lower the company’s overall cost structure Generate signi
Slide 7: Tony Giardini, Chief Financial Officer
TONY GIARDINI CHIEF FINANCIAL OFFICER 77 www.kinross.com
Slide 8: First Quarter 2014 Financial Results
FIRST QUARTER 2014 FINANCIAL RESULTS (in millions, except ounces and per share amounts) Q1 2013 Q1 2014 % Change AVERAGE REALIZED GOLD PRICE Gold equivalent production(1) 648,897 664,690 2% (ounces) $1,624 Gold equivalent sales(1) $ per gold ounce 645,252 621,531 -4% (ounces) $1,299 Revenue $1,058.1
Slide 9: Maintaining a Solid Balance Sheet
AS AT MARCH 31, 2014 MAINTAINING A SOLID BALANCE SHEET • Balance sheet strength continues to be a priority objective • Net debt position of $1,327 million at March 31, 2014 INCREASED FINANCIAL FLEXIBILITY • Completed $500 million debt offering in March 2014 Net proceeds used to repay $500 million
Slide 10: Brant Hinze, President & Chief Operating Officer
BRANT HINZE PRESIDENT & CHIEF OPERATING OFFICER 1010 www.kinross.com
Slide 11: Delivering Strong Operating Results
OPERATIONAL EXCELLENCE DELIVERING STRONG OPERATING RESULTS • All three regions on track to meet 2014 production and cost of sales guidance THE AMERICAS RUSSIA Dvoinoye Kupol Fort Knox Kettle River - Buckhorn Round Mountain Tasiast 2014 OUTLOOK(1,5) Chirano expected gold equivalent production WEST AF
Slide 12: Americas 2014 Regional Guidance
OPERATIONAL EXCELLENCE AMERICAS 2014 REGIONAL GUIDANCE • Americas expected to produce 1,330-1,430k gold equivalent ounces at $780 - $840/oz.(5) FIRST QUARTER 2014 HIGHLIGHTS • Slightly lower production from Fort Knox due to seasonal slow down of the heap leach and slightly lower mill grades • Paraca
Slide 13: Russia 2014 Regional Guidance
OPERATIONAL EXCELLENCE RUSSIA 2014 REGIONAL GUIDANCE • Russia is expected to produce 690-730k gold equivalent ounces at $560 - $590/oz.(5) FIRST QUARTER 2014 HIGHLIGHTS • Increased production reflects benefit of first full quarter of production from higher grade Dvoinoye ore • Dvoinoye contributed a
Slide 14: West Africa 2014 Regional Guidance
OPERATIONAL EXCELLENCE WEST AFRICA 2014 REGIONAL GUIDANCE • West Africa expected to produce 480-540k gold equivalent ounces at $810 - $880/oz.(5) FIRST QUARTER 2014 HIGHLIGHTS • Tasiast achieved record quarterly production • Primarily a result of higher grades and mill throughput • Cost improvements
Slide 15: 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 1515 www.kinross.com
Slide 16: 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. 2) Attributable production cost of sales per gold equivalent ounce sold is a non-GAAP measure.
Slide 17: Kinross Gold Corporation
KINROSS GOLD CORPORATION 25 York Street, 17th Floor │Toronto, ON │ M5J 2V5 www.kinross.com 1717 www.kinross.com