Kinross Gold Corporation Kinross Gold Corporation Corporate - PowerPoint PPT Presentation

Kinross Gold Corporation Kinross Gold Corporation Corporate Presentation September 2006 1

Certain statements set forth in this presentation constitute “forward looking statements" within the meaning of the United States Private Securities Litigation 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 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. 2 2

Focus Areas Fort Knox (100%) Musselwhite (32%) Porcupine JV (49%) Kettle River (100%) Round Mountain (50%) C i Crixas (50%) (50%) La Coipa (50%) Paracatu (100%) Refugio (50%) Producing Assets Exploration Targets 3

Kinross: A Major Gold Producer � 2006 estimated: • G ld Gold equivalent production – 1.44 million ounces i l d i 1 44 illi Cost of sales 1 – est. $305 – $315 per ounce • � ~3,700 employees in 5 countries 3 700 emplo ees in 5 co ntries � Straight-forward balance sheet Straight forward balance sheet • Simple debt structure • No gold hedging � Continuing reserve growth • 24 7 million ounces at Dec 31/05 ($400/oz Au) 24.7 million ounces at Dec. 31/05 ($400/oz Au) 1. Cost of sales is defined as operating costs divided by ounces sold. 4

Prospective & Stable Geography Geographical breakdown of 2005 reserves 9% 64% 17% 10% US US C Canada d Brazil B il Chil Chile 24.7 million ounces of gold at Dec. 31, 2005, an increase of 27% over 2004 Reserves located in politically stable countries 5

Secure Production Base Geographical breakdown of 2005 production 16% 17% 48% 10% 9% US US Canada Canada Brazil Brazil Chile Chile Other Other 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 6

Four-Point Plan Objective: Enhance net asset value and cash flow per share GROWTH FROM BUILDING BLOCKS BEST PEOPLE NEW OPPORTUNITIES THE CORE FOR THE FUTURE Regionally streamlined Crown Resources Strengthened management Paracatu expansion Paracatu expansion t team & Board & B d approach closed Round Mountain Round Mountain Implementing new systems Promote from within layback / underground underground Continuous Pipeline for growth Kettle River / Buckhorn opportunities improvement program Excellence in environmental matters and corporate tt d t governance 7 7

Core Fundamentals � Strong operating fundamentals � Excellence in operations and corporate management � New merger accounting methodology � Clear four-point strategic plan Cl f i t t t i l � Dramatic increase in gold reserves g � Growth profile in production and cash flow through 2009 2009 8

Continued Reserve Growth Gold Reserves and Resources 35,000 Measured and Indicated Measured and Indicated 30,000 Proven and Probable 25,000 gold 00 ounces g 20,000 15,000 '00 10,000 5,000 - 2001 2002 2003 2004 2005 $300/$325 $300/$325 $325/$350 $350/$400 $400/$450 Reserves at Dec. 31, 2004 19.4 Year Year Less: Assets sold/reclassified (2.0) Gold price used for Reserves/Resources 2005 depletion (1.8) Add: New reserves in 2005 9.1 Reserves at Dec. 31, 2005 24.7 9

Second Quarter 2006 � Revenue of $252.3 million; net earnings of $65.6 million ($0.19 per share) ($ p ) � Gold equivalent production was 385,514 ounces (on-target for ’06 est. 1.44 mm gold equivalent ounces) g q ) � Cost of sales 1 of $311 per ounce on 403,507 gold equivalent ounces sold � Cash flow from operating activities of $94.9 million � Cash position of $149.0 million; total debt of $163.2 million 1. Cost of sales is defined as operating costs divided by ounces sold. 10 10

Refining Portfolio Non-core assets sold: � George/Goose Lake � E-Crete � Norseman � � Lupin (in process) Lupin (in process) � Aquarius � � Blanket Blanket � Katanga Equity positions E it iti � 11 11

Cash Margin – Senior Producers 250 Barrick a c 200 200 New mont S$/ounce Kinross 150 U 100 50 2000 2001 2002 2003 2004 2005 Cash Margin Per Ounce Produced g 2000 2001 2002 2003 2004 2005 CAGR 191 164 165 191 179 214 2% Barrick Newmont 111 87 124 163 181 182 10% 96 96 103 103 105 105 136 136 158 158 170 170 12% 12% Kinross Kinross Source: Company Reports 12

13 Paracatu, Brazil (100%)

Paracatu, Brazil Ownership: 100% Kinross Reserves: Reserves: 15,210,000 gold ozs (as at Dec. 31, 2005) 15,210,000 gold ozs (as at Dec. 31, 2005) Highlights: $470 million expansion project approved, expansion will contribute 2008 and beyond Q2 2006 Operating Results Q2 2006 Operating Results Production: 44,465 gold eq. ozs Cost of sales: $ 335 / oz YTD 2006 Operating Results Production: 87,365 gold eq. ozs Cost of sales: Cost of sales: $ 331 / oz $ 331 / oz 14

15 Yanacocha Paracatu – A World-class Mine Largest Operating Mines in North and South America Goldstrike Paracatu Veladero Cortez gunas Norte Lag Laronde 35 30 25 20 15 10 10 5 0 0 s) ons of ounces eserves (millio Re

Paracatu Expansion Project � $470 million expansion project is expected to be completed in 2008 LOM 2009 - 2013 2009 - 2018 2009 - 2036 Average throughput (mtpa) 58.4 51.2 40.9 Average grade (g/t) A d ( /t) 0 37 0.37 0 37 0.37 0 40 0.40 Average recovery (%) 80.3 80.0 79.6 Average annual gold production (oz) 556,700 489,800 418,100 Average mining costs ($/tonne) Average mining costs ($/tonne) 0 47 0.47 0 50 0.50 0 69 0.69 Average milling costs ($/tonne) 1.50 1.67 1.96 Cost of sales ($/oz) 230 259 307 � Average annual sustaining capital is expected to be approximately $15 million 16

Brasilia Belt- Aeromagnetic Image Paracatu Paracatu Formation Formation Vazante Vazante Formation Formation Thrust Thrust Front 8 MAIN MAGNETIC NS mag TRENDS SELECTED anomaly Pit ON THE BRASILIA outline BELT FOR FOLLOW 2005 Drill UP UP Program SW-NE Mag Anomaly reflects Ore Boundary mineralization i li i SPI image Total Magnetic Field image Depth of mag source 17

18 Round Mountain, USA (50%, operator)

Round Mountain, USA Ownership: 50% (Kinross operated) Reserves: Reserves: 2,338,000 gold ozs (as at Dec. 31, 2005) 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 2H/06 Q2 2006 Operating Results Q2 2006 Operating Results Production: 88,469 gold eq. ozs Cost of sales: $ 270 / oz YTD 2006 Operating Results Production: 173,560 gold eq. ozs Cost of sales: Cost of sales: $ 282 / oz $ 282 / oz 19

District/Exploration Map Key 2006 Exploration Targets Nevada N Round Reno Mountain � Rd Mtn Underground g Drifting and drilling Las Moores Creek Vegas Caldera � Rd Mtn – Gold Hill Trend Geophysical survey and drilling Jefferson Caldera SVCO Area of Mutual Interest SVCO Area of Mutual Interest � GOLD HI LL GOLD HI LL Gold Hill Jefferson Jefferson Engineering Optimization ROUND ROUND Trail Canyon MOUNTAI N MOUNTAI N Shale Pit Shale Pit Caldera � Round Mtn Round Mtn Sh l Shale Pit Pit Caldera Geophysical survey and drilling Manhattan Caldera � Manhattan Mine Manhattan Manhattan Drilling Drilling Palo Alto Palo Alto Palo Alto Palo Alto Salisbury Salisbury S li b S li b � Salisbury Drilling 2006 Pl 2006 Planned Drilling d D illi � Palo Alto 0 10 km Drilling 20

21 Refugio, Chile (50%, operator)

Refugio, Chile Ownership: 50% (Kinross operated) Reserves: Reserves: 2,158,000 gold ozs (as at Dec. 31, 2005) 2,158,000 gold ozs (as at Dec. 31, 2005) Highlights: Restart is complete, producing as planned Drilling commenced on nearby Pancho deposit Q2 2006 Operating Results Q2 2006 Operating Results Production: 26,711 gold eq. ozs Cost of sales: $ 379 / oz YTD 2006 Operating Results Production: 58,925 gold eq. ozs Cost of sales: Cost of sales: $ 355 / oz $ 355 / oz 22

Exploration Map Compania Minera Maricunga Claims 130 claims for 650 hectares Pancho Deposit Verde Volcanic and REFUGIO Intrusive Complex Refugio Volcanics Volcanics (undivided) Pancho Diorite Laguna Tuff & Volcanics Mesozoic Rocks Leach Pad Chile Process Plant Verde West East & Mines Buffer Zone 0 0 2km 2km Grade (g/t Au) / core length (metres) 1.02g/116m 23

Capital Projects Drive New Growth Contributes Contributes First Full Year First Full Year 1. Puren 2007 Q3 2006 2. Round Mtn. Layback 2007 Q4 2006 3. Buckhorn 2008 Q2 2007 4 4. Paracatu Exp. Paracatu Exp 2009 2009 Q2 2008 Q2 2008 24