Kinross Gold Corporation · TSX:K

Kinross Gold — Q3 2018 Earnings Presentation

25 slides from Kinross Gold's earnings presentation, Nov 8, 2018

  1. Slide 1: Third Quarter Results

    Third Quarter Results November 8, 2018 Delivering Value. Kinross Gold Corporation

  2. 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

  3. Slide 3: On Track to Meet 2018 Guidance

    Third Quarter 2018 November 8, 2018 On Track to Meet 2018 Guidance Continued track record of meeting our operational targets • Overall portfolio delivered strong results; on track to meet 2018 guidance targets • Commissioning of Tasiast Phase One complete; temporary operational challenges during Q3,

  4. Slide 4: Operating Results Highlights

    Third Quarter 2018 November 8, 2018 Operating Results Highlights Overall portfolio has performed well in the first nine months of 2018 Paracatu, Brazil Bald Mountain, USA Round Mountain, USA Production Production Production 375,941 237,435 288,886 (Au. Eq. oz.) (Au. Eq. oz.) (Au. Eq. oz.) Cost of sa

  5. Slide 5: Tasiast Phase One Commissioning Complete

    Third Quarter 2018 November 8, 2018 Tasiast Phase One Commissioning Complete Following a successful ramp-up of the new SAG mill, Tasiast delivered record monthly production in October Q3 Performance • Ramp-up of the new SAG mill proceeded well, and commissioning is complete • Ramp-up in mining rate

  6. Slide 6: Tasiast Update

    Third Quarter 2018 November 8, 2018 Tasiast Update Kinross has continued to advance discussions with Government of Mauritania regarding our activities in the country • Has included: meeting with the Minister of Petroleum, Energy and Mines who is overseeing the process on behalf of the government; an

  7. Slide 7: Advancing Our Projects

    Third Quarter 2018 November 8, 2018 Advancing Our Projects Portfolio of development projects and future opportunities progressing well Tasiast Phase One Round Mountain Phase W Bald Mountain Vantage Complex Expected to extend mining until Initiates production in the South Area Commissioning complete

  8. Slide 8: Strong Balance Sheet & Financial Flexibility

    Strong Balance Sheet & Financial Flexibility With strong cash flow and no debt maturities until 2021, we have the financial strength and flexibility to fund our pipeline of development projects 8

  9. Slide 9: Financial Results

    Third Quarter 2018 November 8, 2018 Financial Results YTD Q3 YTD Q3 All figures in US$ millions, except ounces, per share and per ounce amounts Q3 2018 Q3 2017 2018 2017 Attributable gold equivalent ounces (oz.)(2) Produced 586,260 653,993 1,842,246 2,020,823 Sold 618,463 638,659 1,874,236 1,968,189

  10. Slide 10: Tasiast Phase One Project Financing Update

    Third Quarter 2018 November 8, 2018 Tasiast Phase One Project Financing Update Project financing has progressed, with strong interest from multilateral organizations and commercial banks • Targeting approximately $300 million in financing • Have now signed mandate letter with IFC, a division of the

  11. Slide 11: Solid Financial Position

    Third Quarter 2018 November 8, 2018 Solid Financial Position Strong position to finance organic development projects with existing liquidity and cash flow generation Strategic investments to add value to our Liquidity Position portfolio ($ billion) • Completed the Phase One expansion and advanced ou

  12. Slide 12: Operating Results

    Operating Results We remain focused on operational excellence, building a culture of continuous improvement, innovation and disciplined cost management 12

  13. Slide 13: Tasiast Q3 Performance

    Third Quarter 2018 November 8, 2018 Tasiast Q3 Performance Temporary headwinds impacted production and costs in Q3; challenges have been addressed and performance has significantly improved during month of October • Ramp-up in mining rate and completion of the SAG mill construction were slower than

  14. Slide 14: Fort Knox Q3 Performance

    Third Quarter 2018 November 8, 2018 Fort Knox Q3 Performance Fort Knox continues to work through impacts of the pit wall slide that occurred during the first quarter • Location is challenging as it affects two phases of mining in 2018  Not uncommon for a pit the size and depth of Fort Knox  Occurr

  15. Slide 15: Americas

    Third Quarter 2018 November 8, 2018 Americas 60% of estimated 2018E gold equivalent production from mines located in the Americas Q3 Results Highlights: • Continued strong results at Bald Mountain  Certain mining areas outperforming expectations, delivering more ore tonnes with better recoveries •

  16. Slide 16: Russia

    Third Quarter 2018 November 8, 2018 Russia Continued strong performance at Kupol-Dvoinoye, generating strong margins and cash flow Q3 Results Highlights: • Production in-line with expectations • Moroshka complete & production commenced in October • Development of Dvoinoye Zone 1 continues on schedul

  17. Slide 17: West Africa

    Third Quarter 2018 November 8, 2018 West Africa Continued strong performance at Chirano in 2018, following improvements to mine performance and right-sizing of cost structure which occurred over past 18 months Q3 Results Highlights: • Chirano continues to perform well  Production and costs in-line

  18. Slide 18: Development Projects

    Development Projects Our portfolio of development projects are progressing well, and we are advancing an additional pipeline of future opportunities 18

  19. Slide 19: Round Mountain Phase W

    Third Quarter 2018 November 8, 2018 Round Mountain Phase W The Phase W project is progressing well; on schedule and on budget • Detailed engineering for all major infrastructure is now complete • Pre-stripping is proceeding well; expect to encounter initial Phase W ore in mid-2019 • Construction of

  20. Slide 20: Bald Mountain Vantage Complex

    Third Quarter 2018 November 8, 2018 Bald Mountain Vantage Complex Vantage Complex project in the South Area of Bald Mountain is proceeding well; on schedule and on budget • Stripping and stacking of economic but previously leached ore on the new heap leach pad has commenced • Engineering is complete

  21. Slide 21: Fort Knox Gilmore

    Third Quarter 2018 November 8, 2018 Fort Knox Gilmore Initial production from Gilmore is expected in early 2020 • Project includes:  The first two phases of a potential multi-phase layback of the Fort Knox pit; and  Construction of a new heap leach pad • Engineering is now essentially complete • P

  22. Slide 22: Chile Projects

    Third Quarter 2018 November 8, 2018 Chile Projects We are evaluating the potential for a return to production in Chile La Coipa Restart Project • Initiated a feasibility study on the Phase 7 deposit  Expected to be complete in H2 2019 Lobo Marte Project • Located 80km from La Coipa • Measured & ind

  23. Slide 23: Kinross Value Proposition

    Kinross Value Proposition Operational Excellence Financial Strength & Flexibility Diverse portfolio of operating mines consistently Maintaining a strong balance sheet continues to meeting or outperforming operational targets be a priority objective Repaid over $1.0 billion of debt 6 Met or exceeded

  24. Slide 24: Endnotes

    Third Quarter 2018 November 8, 2018 Endnotes 1) For more information regarding Kinross’ production, cost, overhead expense and capital expenditures outlook for 2018, please refer to the news releases dated February 14, 2018 and November 7, 2018, both of which are available on our website at www.kinr

  25. Slide 25: Kinross

    KINROSS 25 YEARS

Kinross Gold — Q3 2018 Earnings Presentation on 6ix