Kinross Gold Corporation · TSX:K
Kinross Gold — Q2 2016 Earnings Presentation
21 slides from Kinross Gold's earnings presentation, Jul 28, 2016
Slide 1: Kinross Gold Corporation Q2 2016 Results Conference Call & Webcast
July 28 KINROSS GOLD CORPORATION 2016 Q2 2016 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: Q2 2016 Results Highlights
Q2 2016 RESULTS HIGHLIGHTS 33 www.kinross.com
Slide 4: Financial Strength & Flexibility
SECOND QUARTER HIGHLIGHTS FINANCIAL STRENGTH & FLEXIBILITY • Generated robust free cash flow, increasing CASH AND CASH EQUIVALENTS cash balance by $218 MILLION in Q2 2016 $968 • Results driven by: Strong performance from mines in Russia, $750 US, and Brazil Benefits from favourable oil prices an
Slide 5: Operating Results
SECOND QUARTER 2016 HIGHLIGHTS OPERATING RESULTS Strong performance from mines in Russia, US, and Brazil KUPOL-DVOINOYE PARACATU • Continued strong performance • Higher production and good cost performance • Lowest cost of sales per ounce since Q2 2011 • Benefits from tailings reprocessing initiativ
Slide 6: 2016 Production & Cost Outlook
SECOND QUARTER 2016 HIGHLIGHTS 2016 PRODUCTION & COST OUTLOOK(4) On track to meet 2016 guidance targets Gold Equivalent Production(1) Production Cost of Sales(2) All-in Sustaining Cost(3) (millions) ($ per ounce) ($ per ounce) 2.7 – 2.9 $975 $890 to $990 2.6 $675 to $735 $696 2015 2016E 2015 2016E 2
Slide 7: Tasiast Update
SECOND QUARTER 2016 HIGHLIGHTS TASIAST UPDATE Normal operations expected to resume in first half of August • Temporarily suspended mining and processing operations at Tasiast on June 18, 2016 due to expatriate work permit issues • Agreed on required “Mauritanization” plan to increase number of skill
Slide 8: Nevada Mine Operations
ATTRACTIVE GROWTH OPPORTUNITIES NEVADA MINE OPERATIONS Nevada mine tour highlights growth potential at Bald Mountain and Round Mountain BALD MOUNTAIN • Near-term opportunities which could double mineral reserve estimates by end of Q1 2017 • Additional opportunities to extend mine life estimates • Ex
Slide 9: Financial Highlights
FINANCIAL HIGHLIGHTS 99 www.kinross.com
Slide 10: Financial Results
SECOND QUARTER 2016 HIGHLIGHTS FINANCIAL RESULTS Q2 2015 Q2 2016 Attributable gold equivalent ounces (oz.)(1) Produced 660,898 671,267 Sold 626,246 686,752 Average realized gold price ($/oz.) $1,194 $1,266 Production cost of sales ($/oz.)(2) Gold equivalent $724 $731 By-product $712 $711 All-in sust
Slide 11: Solid Financial Position
STRONG BALANCE SHEET SOLID FINANCIAL POSITION Maintaining balance sheet strength & financial flexibility remain priority objectives LIQUIDITY POSITION MAINTAINING FINANCIAL FLEXIBILITY • Robust cash flow generation added $218M to cash balance in Q2 2016 • Extended maturity dates of the $500M term lo
Slide 12: Operating Highlights
OPERATING HIGHLIGHTS 1212 www.kinross.com
Slide 13: Diversified Portfolio of Operating Mines
OPERATIONAL EXCELLENCE DIVERSIFIED PORTFOLIO OF OPERATING MINES Over RUSSIA 60% of estimated 2016 gold equivalent production from mines located in the Americas AMERICAS AMERICAS Dvoinoye Kupol Fort Knox RUSSIA Kettle River-Buckhorn Bald Mountain Round Mountain 2016E GOLD EQUIVALENT PRODUCTION(1,4) T
Slide 14: Russia
SECOND QUARTER 2016 HIGHLIGHTS RUSSIA KUPOL-DVOINOYE • Q2 production cost of sales decreased to $417/oz. Lowest level since Q2 2011 Benefiting from sustained favourable FX rates and rigorous cost management MOROSHKA PROJECT • Construction of ore haulage road complete • Mine production expected t
Slide 15: Americas
SECOND QUARTER 2016 HIGHLIGHTS AMERICAS • Strong performances at FORT KNOX, ROUND • PARACATU production increased due to MOUNTAIN, KETTLE-RIVER BUCKHORN and higher ore processed and benefits from the PARACATU tailings reprocessing initiative • BALD MOUNTAIN production higher compared Region receiv
Slide 16: Maricunga Update
SECOND QUARTER 2016 HIGHLIGHTS MARICUNGA UPDATE Recommenced mining and crushing in early July; expect to suspend mining in Q4 • Recommenced operations in early July following temporary suspension as a result of water curtailment orders Appeals pending • Have been assessing Maricunga’s mine plan in
Slide 17: West Africa
SECOND QUARTER 2016 HIGHLIGHTS WEST AFRICA • TASIAST Q2 production lower due to 18-day strike and temporary suspension of mining and processing • CHIRANO production decreased as site transitions from mining in the Awkaaba underground to Paboase Resulted in fewer tonnes mined and lower grades Rec
Slide 18: Principles for Building Value
PRINCIPLES FOR BUILDING VALUE • Focus on operational excellence • Quality over quantity • Disciplined capital allocation • Maintaining a strong balance sheet 1818 www.kinross.com
Slide 19: Appendix
APPENDIX 19 19 www.kinross.com
Slide 20: 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 and sales. 2) Attributable production cost of sales per gold equivalent ounce sold and per gold
Slide 21: Kinross Gold Corporation
KINROSS GOLD CORPORATION 25 York Street, 17th Floor │Toronto, ON │ M5J 2V5 www.kinross.com 2121 www.kinross.com