Delivering Disciplined Growth GMP Sales Desk Presentation Toronto, - PDF document

Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 Delivering Disciplined Growth GMP Sales Desk Presentation Toronto, ON April 7 2010 April 7, 2010 Cautionary Statement on Forward ‐ Looking Information All statements, other than statements of historical fact, contained or incorporated by reference in this presentation, including any information as to the future financial or operating performance of Kinross, constitute “forward ‐ looking information” or “forward ‐ looking statements” within the meaning of certain 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, statements with respect to possible events, the future price of gold and silver, the estimation of mineral reserves and resources and the realization of such estimates, the timing and amount and costs of estimated future production, expected capital expenditures, development and mining activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation, environmental risks, unanticipated p g y q p g g p reclamation expenses, title disputes or claims. The words “plan”, “expects”, “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “targets”, “intends”, “anticipates”, “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “should”, “might”, or “will be taken”, “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 statement 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 recently filed Annual Information Form, the “Risk Analysis” section of our most recently filed Management’s Discussion and Analysis and the “Cautionary Statement on Forward ‐ Looking Information” in our news release dated February 17, 2010, to which readers are referred and which are incorporated by reference in this presentation, and 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. 2 1

Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 Why Kinross? • Growing cash flow – Production has risen while margins have expanded – CFPS (1) : 5 yr CAGR : 25% – Strong balance sheet: ~$1.1 bn in cash • Pipeline of future opportunities Kinross Today Kinross Today – Increasing reserve and resource base  Portfolio of 8 operating mines  Portfolio of 8 operating mines  Pure gold/silver producer  Pure gold/silver producer – Growth in gold oz. per share – 19% 5 ‐ yr CAGR (2,3)  ’10e: 2.2 mm oz Au eq (4)  ’10e: 2.2 mm oz Au eq (4)  Policy of no gold ‐ hedging  Policy of no gold ‐ hedging – High ‐ quality projects & new mine expansions High quality projects & new mine expansions  Low cost of sales  Low cost of sales  ’10e: $460 ‐ $490/oz. (4,5)  ’10e: $460 ‐ $490/oz. (4,5) • Compelling valuation  No base metal credits  No base metal credits  US$12.4 bn market cap  US$12.4 bn market cap – Projects will re ‐ rate as they are advanced (1) Refer to endnote #1. (5) Refer to endnote #5. (2) Refer to endnote #2. 3 (3) Refer to endnote #3. (4) Refer to endnote #4. Kinross’ Evolution Kinross Tomorrow Next wave of growth Next wave of growth through project Kinross Today development 2011 ‐ 2012 • 8 operating mines • 3 rd ball mill at Paracatu • Focus in core regions Kinross • Maricunga Expansion • $937.2 mm cash flow (‘09) Yesterday • Dvoinoye* • ~$1.1 bn cash on hand 2013 – 2015+ • $12.4 bn market cap • Non ‐ operated JVs Non operated JVs • Lobo ‐ Marte • Lobo Marte • Margin: $530/oz. (‘09) M i $530/ (‘09) • Various geographies • Proven track record • Fruta del Norte • $154 mm cash flow (’04) • Investment strategy • Cerro Casale • $54 mm cash on hand • White Gold** • $2.4 bn market cap • Margin : $161/oz. (‘04) *Subject to completion of acquisition announced on January 20, 2010. Please refer to endnote #10. **Subject to completion of acquisition announced March 11, 2010. Please refer to endnote #11. 4 2

Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 Major gold discoveries: 1997 ‐ 2008 3,500 90 Spending (MM oz.) 80 3,000 70 70 erage of Grassroots + Late Stage S Average of Major Au Discoveries ( 2,500 60 2,000 50 (US$ MM) 40 1,500 30 1,000 20 500 10 3 Year A 3 Year Ave - 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 # of Major 10 8 5 6 5 2 3 7 5 2 0 Gold Discoveries Total Au Ounces Discovered (3 yr. Avg) Gold Exploration Spending (3 yr. Avg) 5 Source: : Metals Economics Group and Company estimates World Gold Reserves and Resources Total Reserves & Resources Total Reserves & Country % (mm ozs) Resources (tonnes) Chile Brazil 1. South Africa 997 29.7% United States 2. Russia 225 6.7% 3. Australia 193 5.8% Russia South Africa 4. Indonesia 193 5.8% Mexico 5. U.S 177 5.3% 6. Canada 135 4.0% Canada 7. China 132 3.9% Ghana 8. Chile 109 3.3% 9. Mexico 109 3.3% 10. Ghana 87 2.6% Australia Australia Other 11. Brazil 80 2.4% Countries Total focus areas 591 17.6% Indonesia Subtotal 2,437.0 72.7% China Other Non ‐ Focus Other countries 916 27.3% Countries World total: 3,353 100% 6 Source: USGS 3

Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 Growing Margins and Growing Cash Flow g • 41% production growth: 2007 to 2009 • Margin growth: 27% 5 ‐ yr CAGR • CFPS growth: 25% 5 ‐ yr CAGR 7 Focused Portfolio in Five Countries Portfolio of Mines and Projects  Chile  United States • Maricunga • Fort Knox • • La Coipa Kettle River ‐ Buckhorn • Lobo ‐ Marte • Round Mountain • Cerro Casale  Brazil  Russia  Paracatu  Paracatu • • Kupol Kupol  Crixas • Dvoinoye*  Ecuador  Canada • Fruta del Norte White Gold** ‐ Operating mine ‐ Development project *Subject to completion of acquisition announced on January 20, 2010. Please refer to endnote #10. **Subject to completion of acquisition announced March 11, 2010. Please refer to endnote #11. 8 4

Kinross Gold Corporation GMP Sales Desk Presentation April 7, 2010 2010 Production Guidance Production Cost of Number Estimated Country Country % of 2010e % of 2010e Sales / oz. of Mines Mine Life Ounces (000s) total Chile 460 – 480 21% $500 – 520 2 16+ Brazil 510 – 580 24% $490 – 555 2 30+ Russia (6) 495 – 525 23% $340 – 365 1 8+ USA 690 – 745 32% $480 – 520 3 7+ Total Kinross (4) : 2.2 mm oz. $460 ‐ 490 8 20+ (4) Refer to endnote #4. (6) Refer to endnote #6. 9 Expanding Margins: +27% 5 ‐ yr CAGR 2004 – 2009: $530 • Average realized gold price: +139% i (7) +229% • Kinross’ attributable cost of sales margin (7) : +229% Ki ’ tt ib t bl t f l $436 +229% t of Sales Margin ($/oz.) $329 $279 $170 $ $161 $161 Cost FY'04 FY'05 FY'06 FY'07 FY'08 FY'09 (7) Refer to endnote #7. 10 5