Delivering Disciplined Delivering Disciplined G R O W T H G R O W T H February 2 0 0 7 February 2 0 0 7
Cautionary Statement Cautionary Statement All statements, other t hat 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 statements" within the meaning of certain securities laws, including the “ safe harbour” provisions of the S ecurities Act (Ontario) and the United S tates Private S ecurities Litigation Reform Act of 1995 and are based on expectations, estimates and proj ections as of the date of this presentation. Forward-looking statements include, without limitation, statements with respect to the future price of gold and silver, the estimation of mineral reserves and resources, the realization of mineral reserve and resource estimates, the timing and amount of estimated future production, costs of production, expected capital expendit ures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. The words “ plans,” “ expects,” or “ does not expect,” “ is expect ed,” “ budget,” “ scheduled,” “ estimates,” “ forecasts,” “ int ends,” “ anticipates,” or “ does not anticipat e,” or “ believes,” or variat ions of such words and phrases or statements that certain actions, events or results “ may,” “ could,” “ would,” “ might,” or “ will be taken,” “ occur” or “ be achieved” and similar expressions identify forward-looking statements. Forward-looking statement s are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Kinross as of the date of this presentation, are inherently subj ect to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions of Kinross include, but are not limited to, the various assumptions set forth in Kinross’ most recent annual information form and management’ s discussion and analysis as well as: (1) there being no significant disruptions affecting operat ions, whether due to labour disruptions, supply disruptions, damage to equipment or otherwise during the balance of 2006; (2) development at Paracatu proceeding on a basis consistent with our current expectations; (3) permitting and development at Buckhorn proceeding on a basis consistent with Kinross’ current expectations; (4) that the exchange rate bet ween t he Canadian dollar, Brazilian real, Chilean peso and the U.S . dollar will be approximately consistent with current levels; (5) certain price assumptions for gold and silver; (6) prices for natural gas, fuel oil, electricity and other key supplies remaining consistent wit h current levels; (7) production forecasts meet expectations for the balance of 2006; and (8) the accuracy of our current mineral reserve and mineral resource estimates. Known and unknown factors could cause act ual result s to differ materially from those proj ected in the forward-looking statements. S uch factors include, but are not limited to: fluctuations in the currency markets; fluctuations in the spot and forward price of gold or certain other commodities (such as silver, diesel fuel and electricity); changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada, the United S tat es, Chile, Brazil, Russia or other countries in which we do or may carry on business in the future; business opportunities that may be present ed to, or pursued by, us; operating or technical difficulties in connect ion wit h mining or development activities; the speculative nat ure of gold exploration and development, including the risks of obtaining necessary licenses and permits; and diminishing quantities or grades of reserves. In addition, t here are risks and hazards associated wit h the business of gold exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance, or inabilit y to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can affect Kinross’ actual results and could cause 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 t his presentation are qualified by t hese cautionary statements. S pecific reference is made t o Kinross’ most recent annual information form, annual management ’ s discussion and analysis and ot her filings with the securities regulators of Canada and t he United S tates of Kinross. In addition, the following factors, among others, related to the proposed business combination of Kinross and Bema could cause actual results to differ materially from the forward-looking statements: the businesses of Kinross and Bema may not be int egrated successfully or such integration may be more difficult, time-consuming or costly than expected; and t he expect ed combination benefit from the Kinross and Bema transaction may not be fully realized or not realized within the expect ed time frame. These factors are not intended to represent a complete list of the factors that could affect Kinross or the combination of Kinross and Bema. Kinross disclaims any int ention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking statements, except to t he ext ent required by applicable law. For further information regarding Proven and Probable Mineral Reserves and Measured and Indicated Mineral Resources for either of Kinross or Bema, please refer to each companies 2005 Mineral Reserve and Resource statements as filed with regulatory authorities.Qualified persons as defined by National Instrument 43-101 are: Rob Henderson, Kinross Gold Corporation for all Kinross assets Brian Scott, Bema Gold Corporation for Julietta Tom Garagan, Bema Gold Corporation for Kupol and Cerro Casale L. Smith, AMEC for Cerro Casale All dollar amounts used throughout this presentation are expressed in US dollars, unless otherwise noted. 2
Tye W. Burt Clive T. Johnson Tye W. Burt Clive T. Johnson President & CEO Chairman, President & CEO President & CEO Chairman, President & CEO Kinross Gold Corporation Bema Gold Corporation Kinross Gold Corporation Bema Gold Corporation 3
Acquisition Terms Acquisition Terms Plan of Arrangement Plan of Arrangement Structure: Structure: Tax-free share for share exchange (Cdn) Tax-free share for share exchange (Cdn) 0.441 of a Kinross share for each Bema share 0.441 of a Kinross share for each Bema share Exchange Ratio: Exchange Ratio: C$6.61 per share (1) C$6.61 per share (1) Premium of 34% to the 20-day volume weighted average Premium of 34% to the 20-day volume weighted average Consideration Consideration price of Bema shares price of Bema shares Offered: Offered: Transaction value of C$3.5 Billion (US $3.1 Billion) Transaction value of C$3.5 Billion (US $3.1 Billion) Break-fee of C$79 million Break-fee of C$79 million Other Term s: Other Term s: Right to match competing bid Right to match competing bid Transaction Transaction 2/ 3 vote of Bema shareholders 2/ 3 vote of Bema shareholders Approvals: Approvals: Definitive agreement: November 2006 Definitive agreement: November 2006 Circular mailed: December 2006 Circular mailed: December 2006 Next Steps: Next Steps: Bema shareholder vote: Mid-January 2007 Bema shareholder vote: Mid-January 2007 Anticipated closing: Late January 2007 Anticipated closing: Late January 2007 (1) Based on closing price of Kinross shares on November 3, 2006 4
Strategic Rationale Strategic Rationale S ignificant increase to Mineral S ignificant increase to Mineral Reserve and Resource base Reserve and Resource base 68% increase to Kinross’ 2005 68% increase to Kinross’ 2005 reported gold reserves reported gold reserves 38% increase to Kinross’ 2005 38% increase to Kinross’ 2005 reported gold resources reported gold resources Kupol is a world class growth proj ect Kupol is a world class growth proj ect Reserves: 4.4 million ounces of gold, Reserves: 4.4 million ounces of gold, 54 million ounces of silver 54 million ounces of silver Fully financed, comes with Fully financed, comes with development team development team Advancing towards production, Advancing towards production, on schedule for 2008 on schedule for 2008 Compliments Kinross’ Russian Compliments Kinross’ Russian experience experience 5
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