Kinross Gold Corporation Corporate Presentation July 2006 Certain - - PDF document

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Kinross Gold Corporation Corporate Presentation July 2006 Certain - - PDF document

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1 Kinross Gold Corporation Corporate Presentation July 2006 Certain statements set forth in this presentation constitute forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of

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Kinross Gold Corporation Corporate Presentation July 2006

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Certain statements set forth in this presentation constitute “forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties and other factors that may cause the actual results, performance or achievements to differ from those expressed or implied by such forward looking statements. Such risks and uncertainties are described in periodic filings made by Kinross Gold Corporation with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.

All dollar amounts used throughout this presentation are expressed in US dollars, unless otherwise noted.

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Global Position

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Kinross: A Major Gold Producer 2006 estimated:

  • Gold equivalent production – 1.44 million ounces
  • Cost of sales1 – est. $305 – $315 per ounce

~4,000 employees in 5 countries Straight-forward balance sheet

  • Simple debt structure
  • No gold hedging

Continuing reserve growth

  • 24.7 million ounces at Dec. 31/05 ($400/oz Au)
  • 1. Cost of sales is defined as operating costs divided by ounces sold.
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Prospective & Stable Geography

Geographical breakdown of 2005 reserves

64% 9% 17% 10%

US Canada Brazil Chile

24.7 million ounces of gold at Dec. 31, 2005, an increase of 27% over 2004 Reserves located in politically stable countries

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9% 47% 17% 17% 10%

US Canada Brazil Chile Other

Secure Production Base

Geographical breakdown of 2005 production

64% of production is North American based 60% of costs are U.S. dollar-based

Large U.S. base offers security, lowers foreign exchange risk

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Four-Point Plan

Objective: Enhance net asset value and cash flow per share

Paracatu expansion

GROWTH FROM THE CORE

Round Mountain expansion / underground Kettle River / Buckhorn Regionally streamlined approach

BUILDING BLOCKS FOR THE FUTURE

Implement new systems Continuous improvement program Crown Resources transaction

NEW OPPORTUNITIES

Round Mountain underground Pancho at Refugio Excellence in environmental matters and corporate governance Strengthened management team & Board

BEST PEOPLE

Promote from within Pipeline for growth

  • pportunities

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Strengthened management team New merger accounting methodology Strong operating fundamentals Clear four-point strategic plan Dramatic increase in gold reserves Growth profile in production and cash flow through 2009

Core Fundamentals

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2005 Highlights

Produced 1.6 million gold equivalent ounces at cost of sales of $275 per ounce Revenues of $725.5 million Cash flow from operating activities of $133.7 million Net loss of $216.0 million non cash impairment and future reclamation Gold reserves increased 27% to 24.7 million ounces

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Continued Reserve Growth

Reserves at Dec. 31, 2004 19.4 Less: Assets sold/reclassified (2.0) 2005 depletion (1.8) Add: New reserves in 2005 9.1 Reserves at Dec. 31, 2005 24.7

Gold Reserves and Resources

  • 5,000

10,000 15,000 20,000 25,000 30,000 35,000

2001 $300/$325 2002 $300/$325 2003 $325/$350 2004 $350/$400 2005 $400/$450 Year Gold price used for Reserves/Resources

'000 ounces gold

Measured and Indicated Proven and Probable

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Gold equivalent production was 362,395 ounces On-target for estimated 1.44 million gold equivalent ounces Revenue of $198.3 million Average realized price: $532 per ounce of gold sold Cost of sales of $327 per ounce

First Quarter 2006

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Net earnings of $8.9 million, or $0.03 per share Cash flow from operating activities of $20.1 million Capital expenditures of $34.2 million Cash position of $84.1 million; debt of $158.7 million Exploration spending at $7.5 million

First Quarter 2006 (cont…)

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Refining Portfolio

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Non-core assets sold:

George/Goose Lake/Ulu E-Crete Norseman Lupin Aquarius Blanket Equity positions

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Cash Margin – Senior Producers

2000 2001 2002 2003 2004 2005 CAGR Barrick 191 164 165 191 179 214 2% Newmont 111 87 124 163 181 182 10% Kinross 96 103 105 136 158 170 12% 50 100 150 200 250 2000 2001 2002 2003 2004 2005 US$/ounce

Barrick New mont Kinross

Source: Company Reports

Cash Margin Per Ounce Produced

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Refugio, Chile (50%, operator)

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Refugio, Chile

Ownership:

50% (Kinross operated)

Reserves:

2,158,000 ozs (as at Dec. 31, 2005)

Highlights:

Restart is complete, producing as planned Drilling commenced on nearby Pancho deposit

2005 Operating Results

Production: 30,600 gold eq. ozs Cost of sales: $ 314 / oz

Q1 2006 Operating Results

Production: 32,200 gold eq. ozs Cost of sales: $ 335 / oz

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Exploration Map

Buffer Zone Leach Pad Process Plant

Verde Volcanic and Intrusive Complex

Laguna Tuff

Refugio Volcanics (undivided)

Mesozoic Rocks Pancho Diorite & Volcanics 2km Grade (g/t Au) / core length (metres) 1.02g/116m

Verde West East & Mines Pancho Deposit

Compania Minera Maricunga Claims 130 claims for 650 hectares

Chile

REFUGIO

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Round Mountain, USA (50%, operator)

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Round Mountain, USA

Ownership:

50% (Kinross operated)

Reserves:

2,338,000 gold ozs (as at Dec. 31, 2005)

Highlights:

Pre-stripping commenced for a pit layback, ore from layback expected to contribute in late 2006. Exploration drilling to begin on underground in Q2/06.

2005 Operating Results

Production: 373,900 gold eq. ozs Cost of sales: $ 255 / oz

Q1 2006 Operating Results

Production: 85,100 gold eq. ozs Cost of sales: $ 293 / oz

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District/Exploration Map

Key 2006 Exploration Targets

  • Rd Mtn Underground

Drifting and drilling

  • Rd Mtn – Gold Hill Trend

Geophysical survey and drilling

  • Gold Hill

Engineering Optimization

  • Shale Pit

Geophysical survey and drilling

  • Manhattan Mine

Drilling

  • Salisbury

Drilling

  • Palo Alto

Drilling

ROUND ROUND MOUNTAI N MOUNTAI N GOLD HI LL GOLD HI LL

SVCO Area of Mutual Interest SVCO Area of Mutual Interest Salisbury Salisbury Palo Alto Palo Alto Jefferson Jefferson Manhattan Manhattan

10 km

N

2006 Planned Drilling Trail Canyon Caldera Moores Creek Caldera Jefferson Caldera Manhattan Caldera Round Mtn Caldera Shale Pit Shale Pit

Round Mountain

Las Vegas

Reno

Nevada

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Paracatu, Brazil (100%)

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Paracatu, Brazil

Ownership:

100% Kinross

Reserves:

15,210,000 ozs gold (as at Dec. 31, 2005)

Highlights:

Expansion study to be completed in Q2/06, will contribute 2008 and beyond.

2005 Operating Results

Production: 181,000 gold ozs Cost of sales: $ 281 / oz

Q1 2006 Operating Results

Production: 42,900 gold ozs Cost of sales: $ 327 / oz

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5 10 15 20 25 30 35

Laronde Lagunas Norte Cortez Veladero Paracatu Goldstrike Yanacocha

Largest Operating Mines in North and South America

Reserves (millions of ounces)

Paracatu – A World-class Mine

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Feasibility study being finalized and optimized Adding new 38-foot SAG mill Building a world-class operation Throughput and production rising Cash cost profile improving

Paracatu Engineering Study

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Brasilia Belt- Aeromagnetic Image

Pit

  • utline

SW-NE Mag Anomaly reflects mineralization Thrust Front Ore Boundary

Paracatu Paracatu Formation Formation Vazante Vazante Formation Formation

2005 Drill Program NS mag anomaly 8 MAIN MAGNETIC TRENDS SELECTED ON THE BRASILIA BELT FOR FOLLOW UP SPI image Depth of mag source

Total Magnetic Field image

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Capital Projects Drive New Growth

  • 1. Puren
  • 2. Round Mtn. Layback
  • 3. Buckhorn
  • 4. Paracatu Exp.

First Full Year

2007 2007 2008 2009

Contributes

Q3 2006 Q4 2006 Q2 2007 Q2 2008

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Production rising from approximately 1.44 million ounces to 1.7-1.75 million

  • unces in 2009

1.2 1.3 1.4 1.5 1.6 1.7 1.8 2006E 2007E 2008E 2009E 2006 - 2009 Forecast

Gold equivalent production

(millions of ounces)

Expected range of production

Kinross Driving Forward

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Four Exploration Focus Regions

Alaska, B.C., Nevada, Mexico Chile Brazil Far NE Russia

Producing Assets Exploration Targets

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Fourth largest primary gold producer in North America, eighth largest in the world Strong production and growth profile through 2009 Nine mines globally, focused in North and South America “Clear decks” for the future Exploration expertise Operating in stable and prospective countries Strong, experienced management team Focused on clear four-point strategic plan

Positioned For Success

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Kinross Outperforms

0.50 1.00 1.50 2.00 2.50 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Relative Performance Gold Price Major Gold Producers (average) Kinross

Major gold producers includes: Barrick, Newmont, Goldfields and AngloGold Ashanti All shares prices are based on closing prices on the New York Stock Exchange

+79% +49% +43%

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Kinross Gold Corporation

40 King Street West, 52nd Floor, Scotia Plaza, Toronto, ON M5H 3Y2 Tel: 416-365-5123 | Fax: 416-363-6622 | Toll Free: 866-561-3636 info@kinross.com

www.kinross.com

Shares outstanding: 345.9 million Market cap.: US$3.9 billion (at July 14, 2006)

KGC: NYSE (Common shares) K: TSX (Common shares) K.U: TSX (US dollar trading symbol) K.WT: TSX (Warrants expiring 05/12/07)

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Appendix

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2005 Production Statistics

Reserves Cost of Ownership @ 12/31/05 sales/oz

(millions)

Fort Knox 100% 1,953 329,300 275 $ Round Mountain 50% 2,338 373,900 255 $ La Coipa 50% 397 126,000 346 $ Crixas 50% 379 96,200 151 $ Paracatu 100% 15,210 181,000 281 $ Musselw hite 32% 639 79,900 330 $ Porcupine Joint Venture 49% 1,653 184,000 282 $ Refugio 50% 2,158 30,600 314 $ Kettle River 100% 14 68,100 240 $ Production

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Musselwhite, Canada

(32%, Goldcorp operated)

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Musselwhite, Canada

Ownership:

32% Kinross

Reserves:

639,000 ozs (as at Dec. 31, 2005)

2005 Operating Results

Production: 79,900 gold eq.ozs Cost of sales: $ 330 / oz

Q1 2006 Operating Results

Production: 16,200 gold eq. ozs Cost of sales: $ 427 / oz

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Fort Knox, USA (100%)

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Fort Knox, USA

Ownership:

100% Kinross

Reserves:

1,953,000 gold ozs (as at Dec. 31, 2005)

Highlights:

Heap leach scenario being evaluated

2005 Operating Results

Production: 329,300 gold ozs Cost of sales: $ 275 / oz

Q1 2006 Operating Results

Production: 79,700 gold ozs Cost of sales: $ 318 / oz

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Porcupine JV, Canada

(49%, Goldcorp operated)

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Porcupine JV, Canada

Ownership:

49% Kinross

Reserves:

1,653,000 gold ozs

(as at Dec. 31, 2005)

Highlights:

Pamour pit now contributing to production

2005 Operating Results

Production: 184,000 gold ozs Cost of sales: $ 282 / oz

Q1 2006 Operating Results

Production: 30,100 gold ozs Cost of sales: $ 439 / oz

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La Coipa, Chile

(50%, Goldcorp operated)

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La Coipa, Chile

Ownership:

50% Kinross

Reserves:

397,000 gold ozs (as at Dec. 31, 2005) 24,389,000 silver ozs (as at Dec. 31, 2005)

Highlights:

Puren deposit pre-strip underway for contribution in Q3/06

2005 Operating Results

Production: 126,000 gold eq..ozs Cost of sales: $ 346 / oz

Q1 2006 Operating Results

Production: 38,600 gold eq. ozs Cost of sales: $ 282 / oz

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Crixas, Brazil

(50%, AngloGold operated)

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Crixas, Brazil

2005 Operating Results

Production: 96,200 gold ozs Cost of sales: $ 151 / oz

Ownership:

50% Kinross

Reserves:

379,000 gold ozs (as at Dec. 31, 2005)

Q1 2006 Operating Results

Production: 24,100 gold ozs Cost of sales: $ 188 / oz

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Kettle River, USA (100%)

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Kettle River, USA

Ownership:

100% Kinross

Highlights:

Buckhorn Mountain and Crown transaction:

  • Agreement extended to December 31, 2006
  • Crown shareholders will receive 0.32 of a Kinross share
  • Permitting in progress

2005 Operating Results

Production: 68,100 gold ozs Cost of sales: $ 240 / oz

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Kinross Gold Corporation

40 King Street West, 52nd Floor, Scotia Plaza, Toronto, ON M5H 3Y2 Tel: 416-365-5123 | Fax: 416-363-6622 | Toll Free: 866-561-3636 info@kinross.com

www.kinross.com

Shares outstanding: 345.9 million Market cap.: US$3.9 billion (at July 14, 2006)

KGC: NYSE (Common shares) K: TSX (Common shares) K.U: TSX (US dollar trading symbol) K.WT: TSX (Warrants expiring 05/12/07)