Kinross Gold Corporation · TSX:K
Kinross Gold — Q3 2020 Earnings Presentation
17 slides from Kinross Gold's earnings presentation, Nov 5, 2020
Slide 1: Third Quarter 2020 Results
Third Quarter 2020 Results November 5, 2020 Delivering Value. Kinross Gold Corporation
Slide 2: Cautionary Statement on Forward-Looking Information
Third Quarter 2020 November 5, 2020 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
Slide 3: Strong Third Quarter Results
Strong Third Quarter Results On track to meet annual guidance for 9th consecutive year Effectively managing the impacts of COVID-19; safety remains our first priority Technically strong with an excellent operational track record Delivering robust free cash flow with attractive yield
Slide 4: Operational and Financial Highlights
Third Quarter 2020 November 5, 2020 Operational and Financial Highlights Significant growth in margins, earnings and free cash flow • Paracatu, Kupol-Dvoinoye and Tasiast accounted for over 60% of production and delivered among the Q3 First Nine Months lowest costs 2020 Results 2020 Results • Robust
Slide 5: Key Developments
Third Quarter 2020 November 5, 2020 Key Developments • Chronicles Kinross’ progress over the past 2019 Sustainability two years in delivering on our commitment to Report responsible mining • Reinstated 2020 guidance Introduced • Introduced 3-year guidance: production Multi-Year expected to grow by 2
Slide 6: Financial Results
Financial Results 6
Slide 7: Third Quarter Financial Highlights
Third Quarter 2020 November 5, 2020 Third Quarter Financial Highlights Produced approximately 603,000 oz.(1) at an average cost of sales of $737/oz.(1,2) and an all-in sustaining cost of $958/oz.(1,2) Year-over-year improvements Quarter-over-quarter improvements 213% Adjusted net earnings(2) Adjuste
Slide 8: Strong Liquidity and Financial Flexibility
Third Quarter 2020 November 5, 2020 Strong Liquidity and Financial Flexibility Another quarter of strong results and free cash flow further strengthened our financial position Liquidity Position Financial Flexibility ($ billion) • Available liquidity of ~$2.5 billion, including $934 million of cash
Slide 9: Operating Results
Operating Results 9
Slide 10: COVID-19 Update
Third Quarter 2020 November 5, 2020 COVID-19 Update Prioritizing the health and safety of employees and host communities Managing the Pandemic and Minimizing Impacts • Portfolio of mines continues to manage well; all remain in operation year-to-date • No material negative impacts to the business • O
Slide 11: Strong Performance at Paracatu
Third Quarter 2020 November 5, 2020 Strong Performance at Paracatu Largest producer in the portfolio continues to deliver consistent results • Production and throughput slightly lower than Q2 due to planned maintenance • Recoveries were in-line with expectations – related to anticipated variation in
Slide 12: Lowest Costs at Kupol-Dvoinoye
Third Quarter 2020 November 5, 2020 Lowest Costs at Kupol-Dvoinoye Russian operations delivered cost of sales below $550/oz.(1,2), the lowest level in 2.5 years • Another consistent quarter from Russia; production largely in-line with previous quarters • Production costs benefitting from reduced min
Slide 13: Tasiast Continuing to Ramp-up
Third Quarter 2020 November 5, 2020 Tasiast Continuing to Ramp-up Record monthly production of 46,000 ounces in August; mill grades of 2.78 g/t set a new quarterly record • Production increased 16% quarter-over- quarter • Mining rates are now near full capacity • ~100,000 ounces deferred from 2021 t
Slide 14: Additional Portfolio Highlights
Third Quarter 2020 November 5, 2020 Additional Portfolio Highlights • 30% increase in production(1), 19% decrease in cost of sales(2) over Q2 • Expect a continuation of strong results Fort Knox, going forward Alaska • Gilmore infrastructure substantially complete; first ore stacked on the new Barnes
Slide 15: Kinross Investment Case
Kinross Investment Case Operational Excellence Financial Strength & Flexibility Diverse portfolio of mines consistently meeting Maintaining a strong balance sheet continues to or outperforming operational targets be a priority objective 8 Available liquidity of ~$2.5 billion On track to meet $2.5 At
Slide 16: Endnotes
Third Quarter 2020 November 5, 2020 Endnotes 1. Unless otherwise noted, gold equivalent production, gold equivalent ounces sold, production cost of sales, all-in sustaining cost figures and attributable margin in this presentation are based on Kinross’ 90% share of Chirano and 70% share of Peak prod
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