KINROSS GOLD CORPORATION May 2011 1 DELIVERING DISCIPLINED GROWTH GROWTH
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, including any information as to the future performance of Kinross, constitute “forward looking statements” within the meaning of applicable securities laws, including the provisions of the Securities Act (Ontario) and the provisions for “safe harbour” under the United States Private Securities Litigation Reform Act of 1995 and are based on expectations, estimates and projections as of the date of this presentation. Forward looking statements include, without limitation, possible events; p p j p g p opportunities; statements with respect to possible events or opportunities; estimates and the realization of such estimates; future development, mining activities, production and growth, including but not limited to cost and timing; success of exploration or development of operations; the future price of gold and silver; currency fluctuations; expected capital expenditures and requirements for additional capital; government regulation of mining operations and exploration; environmental risks; unanticipated reclamation expenses; and title disputes. The words “plans”, “expects”, “subject to”, “budget”, “estimate”, “scheduled”, “timeline”, “projected”, “pro forma”, “estimates”, “envision”, “view”, “forecasts”, “guidance”, “conceptual”, “target”, “possible”, “illustrative”, “model”, “opportunity”, “objective”, “potential”, “intends”, “anticipates” or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “can”, “could”, “would”, “should”, “might”, “indicates”, “will be taken”, “become”, “create”, “occur”, or “be achieved”, and similar expressions identify forward looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Kinross as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Statements representing management’s financial and other outlook have been prepared solely for purposes of expressing their current views regarding the Company’s financial and other outlook and may not be appropriate for any other purpose. Many of these uncertainties and contingencies can affect, and could cause, Kinross’ actual results to differ materially from those expressed or implied in any forward looking statements made by, or on behalf of, Kinross. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. All of the forward looking statements made in this presentation are qualified by these cautionary statements, and those made in our filings with the securities regulators of Canada and the U.S., including but not limited to those cautionary statements made in the “Risk Factors” section of our most ith th iti l t f C d d th U S i l di b t t li it d t th ti t t t d i th “Ri k F t ” ti f t recently filed Annual Information Form, the “Risk Analysis” section of our FYE 2010 Management’s Discussion and Analysis and the “Cautionary Statement on Forward-Looking Information” in our news release dated May 3, 2011, to which readers are referred and which are incorporated by reference in this presentation, all of which qualify any and all forward ‐ looking statements made in this presentation. These factors are not intended to represent a complete list of the factors that could affect Kinross. Kinross disclaims any intention or obligation to update or revise any forward ‐ looking statements or to explain any material difference between subsequent actual events and such forward ‐ looking statements, except to the extent required by applicable law. Other information Where we say "we", "us", "our", the "Company", or "Kinross" in this presentation, we mean Kinross Gold Corporation and/or one or more or all of its subsidiaries, as may be applicable. The technical information about the Company’s mineral properties contained in this presentation has been prepared under the supervision of Mr. Rob Henderson, an officer of the Company who is a “qualified person” within the meaning of National Instrument 43-101 (“NI 43-101”). The technical information about the White Gold mineral resource contained in this presentation has been prepared under the supervision of Mr. Wayne Barnett and Mr. Marek Nowak, who is a “qualified person” with the meaning of NI 43 ‐ 101. 2
3 WHY GOLD? WHY GOLD? WHY KINROSS? WHY NOW? WHY NOW?
INDUSTRY PRODUCTION DECLINING • Forecasted world production from gold mining likely to decline 2,800 2,700 s) uction (Tonnes 2 600 2,600 2,500 Gold Produ 2,400 2,300 2,200 2,100 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 Source: GFMS 10 Year Outlook on Gold (December 2010) 4
INCREASING DEMAND FOR GOLD $225 $1,520 Investment / Other Total Fabrication $200 $1,320 Gold Price (US$/oz) Current gold price $175 $1,120 $150 ns) oz.) $920 $920 d Price (US$/o and (US$ billio $125 $720 $100 Gold tal Gold Dema $520 $75 $320 $50 Tot $120 $25 $0 -$80 1999 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 Source: GFMS Gold Survey 2011 5
FEWER GOLD DISCOVERIES Total gold ounces discovered (mm oz.) 3,500 90 Gold exploration spending (US$ mm) 80 80 3,000 US$ mm) 70 Ounc 2,500 60 60 ces discovered on spending ( 2,000 50 40 1,500 1,500 Gold exploratio d (mm oz.) 30 1,000 20 G 500 10 - 0 1997 1997 1998 1998 1999 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 Source: Metals Economics Group and Company estimates 6
7 WHY KINROSS? WHY GOLD? WHY NOW? WHY NOW?
WHY KINROSS? 1. Industry-leading growth from a senior gold producer 2. World-class projects with experienced teams and financial resources to build them 3 3. Attractive valuation Attractive valuation 8
CONTINUING THE KINROSS TRANSFORMATION Kinross Gold Production Now (1) Kinross Gold Production Yesterday 4.5 – 4.9 ction (mm oz) on (mm oz) valent produc lent productio 2.6 – 2.7 2.3 1.6 1 6 Gold equival Gold equi 2005 2010 2011e 2015e (revised upwards) (revised upwards) 9 (1) Refer to endnote #1.
FOCUSED IN THE WORLD’S BEST DISTRICTS Dvoinoye Kupol Fort Knox Fort Knox Kettle River-Buckhorn Round Mountain Tasiast Chirano Fruta del Norte Crixas Paracatu La Coipa Lobo-Marte Maricunga Cerro Casale 10 operating mines 10 operating mines 5 development projects 10
Q1 2011 RESULTS: CONTINUING TO DELIVER Adjusted Net Earnings (2) Revenue Adjusted Operating Cash Flow (2) +42% +81% +67% $937 $180 $398 millions $658 $239 US$ $100 $100 $0.34/sh $0.35/sh $0.16/sh $0.14/sh Q1 2010 Q1 2010 Q1 2011 Q1 2011 Q1 2010 Q1 2010 Q1 2011 Q1 2011 Q1 2010 Q1 2010 Q1 2011 Q1 2011 11 (2) Refer to endnote #2.
DELIVERING EXPANDING MARGINS 2005 – Q1 2011: $784 • Average realized gold price: +198% • Average realized gold price: +198% • Kinross’ attributable margin (3,4) : +361% $683 +361% ($ per ounce) $530 $436 butable margin $329 $279 Attrib $170 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 Q1 2011 Q1 2011 (3) Refer to endnote #3. 12 (4) Refer to endnote #4.
GROWING CASH FLOW PER SHARE • 5-yr CAGR : 21% $1.36 $1.32 S$) (2) w per Share (U $1.01 $0.80 ted Cash Flow $0.56 $0.51 $0.35 Adjust 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 Q1 2011 Q1 2011 (2) Refer to endnote #2. 13
INCREASING GOLD RESOURCES 110 140 Inferred Resources Measured & Indicated Resources 100 Proven and Probable Reserves 120 24.0 24 0 T t l Total resource ounce per 1,000 shares 1 000 h 90 00 shares 80 100 oz.) (5) 16.2 17.7 70 20.7 rce oz per 1,00 esources (mm 80 7.0 60 16.6 13.7 11.1 50 60 Gold re Gold resou 40 3.9 2.9 8.0 40 62.4 30 6.1 51.0 46.6 45.6 20 20 20 27.9 24.7 10 0 0 2005 2006 2007 2008 2009 2010 (5) Refer to endnote #5. 14
TRACK RECORD OF RESERVE GROWTH KINROSS ORGANIC RESERVE TODAY ADDITIONS 9.7 62.4 WEST AFRICA Reserves (5) RESERVE ADDITION 2.4 10.0 51.0 PRODUCTION 5.8 5 8 obable Gold R DEPLETION CERRO CASALE 25% (mm oz) SALE roven and Pro 19.4 P 2004 2004 2009 009 2010 0 0 Numbers may not add due to rounding *As of December 31, 2010, not at date of acquisition. (5) Refer to endnote #5. 15
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