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080217 q2 webcast

This document is the transcript from Kinross Gold Corporation's Q2 2017 results conference call. Some key points: - Kinross is on track to meet its 2017 guidance targets for the sixth consecutive year, including producing 2.5-2.7 million ounces of gold at a production cost of sales of $660-720 per ounce and all-in sustaining costs of $925-1,025 per ounce. - The two-phased expansion at Tasiast is progressing well, with phase one approximately 55% complete and on budget for commercial production in Q2 2018. Kinross will finalize the phase two feasibility study in September. - Bald Mountain is expected to double its production with reduced

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1 www.kinross.com 1 KINROSS GOLD CORPORATION Q2 2017 Results Conference Call & Webcast August 3 2017
2 www.kinross.com 2 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 and responses to questions, including but not limited to 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 harbor” 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 contained in this presentation include those statements on slides with, and statements made under, the headings “2017 Priorities”, “Financial Strength and Flexibility”, “2017 Outlook”, “Operating Highlights”, “Attractive Development Projects” and “Building Momentum for the Future”, and include without limitation statements with respect to our guidance for production, production costs of sales, all-in sustaining cost and capital expenditures, continuous improvement and other cost savings opportunities, as well as references to other possible events include, without limitation, possible events; opportunities; statements with respect to possible events or opportunities; estimates (including, without limitation, gold / mineral resources, gold / mineral reserves and mine life) 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 completion and results of any studies including, without limitation, feasibility studies; the future price of gold and silver; currency fluctuations; expected capital requirements; government regulation; and environmental risks. The words “2017E”, “2018E”, “2020E”, “ahead”, “anticipate”, “assumption”, “budget”, “contemplate”, “enhancing”, “envision”, “estimate”, “expect”, “explore”, “feasibility”, “flexibility”, “focus”, “forecast”, “forward”, “future”, “goal”, “growth”, “guidance”, “indicate”, “liquidity”, “momentum”, “objective”, “on track”, “opportunity”, “option”, “outlook”, “PFS”, “phased”, “plan”, “positive”, “positioned”, “possible”, “potential”, “pre-feasibility”, “priority”, “progressing”, “project”, “risk”, “study”, “target”, “trend”, “upside” or “view”, or variations of or similar such words and phrases or statements that certain actions, events or results may, can, could, would, should, might, indicates, or will be taken, 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 recently filed Annual Information Form, the “Risk Analysis” section of our FYE 2016 and Q2 2017 Management’s Discussion and Analysis, and the “Cautionary Statement on Forward-Looking Information” in our news release dated August 2, 2017, 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. John Sims, an officer of the Company who is a “qualified person” within the meaning of National Instrument 43-101.
3 www.kinross.com 3 2017 Priorities
4 www.kinross.com 4 2017 Guidance(1) H1 2017 Results Gold equivalent production (oz.)(2) 2.5 to 2.7 million 1,366,830 Production cost of sales (US$/oz.)(3) $660 to $720 $680 All-in sustaining cost (US$/oz.)(3) $925 to $1,025 $931 Capital Expenditures (US$M) $900 (+/-5%) $380 2017 PRIORITIES DELIVER OPERATIONAL EXCELLENCE • Operations continue to deliver solid results  Stand-out quarter from Round Mountain – delivering higher production with lowest quarter cost of sales per ounce in nearly five years  Record quarterly production at Paracatu, driven by higher recoveries  Impressive grades at Kettle River • On track to meet guidance targets for sixth consecutive year Continuing our track record of meeting or outperforming our operational targets (1) Refer to endnote #1. (2) Refer to endnote #2. (3) Refer to endnote #3.
5 www.kinross.com 5 Combined Phase One and Two expansions expected to transform Tasiast into our largest producer with costs amongst the lowest in our portfolio 2017 PRIORITIES ADVANCE TASIAST TWO-PHASED EXPANSION Phase One progressing well • Approximately 55% complete • Project continues to be on time and on budget • Expect commercial production in Q2 2018 Advancing the Phase Two feasibility study • Study is advancing well and is expected to be finalized in September • Expect to make a development decision at that time Recent view of Phase One construction
6 www.kinross.com 6 2017 PRIORITIES DEVELOP BALD MOUNTAIN’S POTENTIAL Kinross envisions Bald Mountain as a long-life asset with significant upside potential and mineral resource growth • On track to double production with reduced costs, compared with 2016(1) • Trend of increasing production and declining costs continued in Q2 • Continued to advance engineering of the Vantage Complex in the South Area  Construction expected to begin in H1 2018 • Exploration activities focused on pit extensions and targets identified in 2016, with encouraging results (1) Refer to endnote #1. 32,675 44,343 47,077 49,881 0 200 400 600 800 1000 1200 1400 0 10000 20000 30000 40000 50000 60000 Q3 2016 Q4 2016 Q1 2017 Q2 2017 CostofSales($/oz.) Goldequivalentproduction(ounces) Bald Mountain Quarterly Production & Cost of Sales
7 www.kinross.com 7 2017 PRIORITIES ADVANCE ORGANIC PROJECTS Round Mountain Phase W Nevada • Potential opportunity to extend mine life • Expect to provide results of the feasibility & to make a development decision in September September Northeast Russia • High-grade deposit located approximately 15 km from Dvoinoye • Began processing ore through the Kupol mill in June as planned Moroshka Russia • Located approximately 4 km from Kupol • Decline development well- advanced • Installation of surface infrastructure now complete Organic projects offer opportunities to expand production or increase mine life at our operations
8 www.kinross.com 8 EXCELLENT operational track record Balance sheet STRENGTH COMPELLING relative value ATTRACTIVE organic projects Kinross Value Proposition
9 www.kinross.com 9 Financial Strength & Flexibility
10 www.kinross.com 10 Q2 2017 Highlights FINANCIAL RESULTS All figures in US$ millions, except ounces, per share amounts and per ounce amounts Q2 2017 Q2 2016 H1 2017 H1 2016 Attributable gold equivalent ounces (oz.)(2) Produced 694,874 671,267 1,366,830 1,358,730 Sold 683,584 686,752 1,329,530 1,346,149 Average realized gold price ($/oz.) $1,260 $1,266 $1,241 $1,223 Production cost of sales(3) Gold equivalent ($/oz. Au eq.) $660 $731 $680 $709 By-product ($/oz.) $645 $711 $665 $693 All-in sustaining cost (3) Gold equivalent ($/oz. Au eq.) $910 $988 $931 $972 By-product ($/oz.) $901 $976 $922 $963 Capital expenditures $200.7 $114.0 $379.6 $253.5 Revenue $868.6 $876.4 $1,664.7 $1,659.0 Adjusted operating cash flow(3) $230.8 $187.2 $481.7 $394.8 Operating cash flow $179.7 $315.9 $387.5 $530.4 Adjusted net earnings (loss) attributable to common shareholders(3) $54.9 ($9.8) $78.3 $11.4 per share $0.04 ($0.01) $0.06 $0.01 Reported net earnings (loss) $33.1 ($25.0) $167.7 $10.0 per share $0.03 ($0.02) $0.13 $0.01 (2) Refer to endnote #2. (3) Refer to endnote #3.
11 www.kinross.com 11 FINANCIAL DISCIPLINE 2017 OUTLOOK(1) Region Sustaining Non-Sustaining Regional Total Americas $295 $65 $360 West Africa $80 $375 $455 Russia $40 $15 $55 Corporate $5 - $5 TOTAL $420 $455 $875 Capitalized Interest $25 TOTAL KINROSS $900 +/- 5% Capital Expenditures ($ millions) (1) Refer to endnote #1. Previous Guidance Revised Guidance Other operating costs ($ millions) $60 $80 to $90 Depreciation, depletion & amortization ($/oz.) $350 $300 to $325 Other Expenditures
12 www.kinross.com 12 BALANCE SHEET STRENGTH SOLID FINANCIAL POSITION $1.1B $1.4B Cash & cash equivalents Undrawn credit facilities LIQUIDITY POSITION Maintaining balance sheet strength & financial flexibility remain priority objectives MAINTAINING FINANCIAL FLEXIBILITY • Cash and cash equivalents of $1.1 billion as at June 30, 2017  Increase of $240 million since Q1 2017 resulting from sale of non-core assets • Net debt to EBITDA as at June 30, 2017: 0.6x • Strong financial position to finance future development opportunities As at June 30 $2.5B
13 www.kinross.com 13 FINANCIAL DISCIPLINE MANAGEABLE DEBT PROFILE No significant debt maturities prior to 2021 $0 $500 $0 $500 $0 $500 $250 Through 2020 2021 2022 to 2023 2024 2025 to 2026 2027 2028 to 2040 2041 $millions Debt Schedule Senior Notes due 2021 5.125% Senior Notes due 2024 5.950% Senior Notes due 2027 4.50% Senior Notes due 2041 6.875% Interest Rates Agency Rating S&P BB+ (Positive) Moody’s Ba1 (Stable) Fitch BBB- (Stable) Debt Ratings• $500 million debt offering completed in July  Used net proceeds and available cash on hand to repay $500 million term loan due 2020 • As a result, no debt maturities prior to 2021 $- $- $- $-
14 www.kinross.com 14 Operating Highlights
15 www.kinross.com 15 OPERATING HIGHLIGHTS AMERICAS • Continued strong performance at Round Mountain • 2017 production expected to double at Bald Mountain with lower costs compared to 2016  Production expected to be heavily weighted towards H2 2017, particularly the fourth quarter • Kettle River-Buckhorn concluded mining in July • Commenced temporary production curtailment at Paracatu in July due to reduced regional rainfall  Do not expect to impact 2017 regional guidance  Reprocessing of tailings through Plant 1 continues in Q3, at a higher-than-normal rate of 50,000 tpd o Expected to produce 25 to 35koz. in Q3 Q2 2017 H1 2017 2017 Regional Guidance(1) Production (oz. Au eq.) 442,379 853,906 1.52 – 1.63 million Cost of sales ($/oz. Au eq.)(3) $658 $700 $680 to $750 (1) Refer to endnote #1. (3) Refer to endnote #3.
16 www.kinross.com 16 OPERATING HIGHLIGHTS WEST AFRICA • Strong performance continued at Tasiast in Q2 2017  Slightly lower grades as mining through lower grade sequence of mine plan • Production slightly lower than Q1 2017 at Chirano as surface mining was completed as scheduled • Mining now focused on the higher grade underground Akoti and Paboase mines (1) Refer to endnote #1. (2) Refer to endnote #2. (3) Refer to endnote #3. Q2 2017 H1 2017 2017 Regional Guidance(1) Production (oz. Au eq.)(2) 106,482 223,533 420,000 to 470,000 Cost of sales ($/oz. Au eq.)(3) $842 $813 $740 to $820
17 www.kinross.com 17 OPERATING HIGHLIGHTS RUSSIA • Production lower as a result of planned decline in grades  Costs remain among the lowest in the portfolio • Development of September Northeast project completed on time and on budget  Began processing ore through Kupol mill in June as planned • Completed construction of surface infrastructure at Moroshka  Decline development progressing on plan (1) Refer to endnote #1. (3) Refer to endnote #3. Q2 2017 H1 2017 2017 Regional Guidance(1) Production (oz. Au eq.) 146,013 289,391 560,000 to 600,000 Cost of sales ($/oz. Au eq.)(3) $540 $520 $520 to $570
18 www.kinross.com 18Attractive Development Projects
19 www.kinross.com 19 ATTRACTIVE DEVELOPMENT PROJECTS ADVANCING ORGANIC PROJECTS September NE Development complete Organic projects spanning all 3 of our regions offer opportunities to expand production or extend mine life at our operations Q2 2018 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Bald Mountain Mineral reserve estimate update Bald Mountain Vantage PFS Tasiast Phase 2 Feasibility study La Coipa Phase 7 Sectoral permits expected Tasiast Phase 1 Expected to reach full commercial production Project Location Americas West Africa Russia Round Mountain Phase W Feasibility study Vantage Major construction expected to begin Kupol Potential mineral resource addition Fort Knox Potential East & South Wall mineral resource addition   Tasiast Sud Potential mineral resource addition
20 www.kinross.com 20 ATTRACTIVE DEVELOPMENT PROJECTS TASIAST TWO-PHASED EXPANSION • Mechanical installation progressing well:  SAG mill shell fully in place; trunnions and bearings currently being installed  Apron feeders for stockpile & reclaim tunnel now in place  Mechanical works commenced at primary crusher  Conveyor foundations complete with installation expected to commence in in August  Installation of 3 new leach tanks progressing • Early commissioning progressing well  Oxygen plant commissioned, with new tailings facility scheduled to be commissioned in August • Early electrical works have been initiated Phase One construction ~55% complete; expect full commercial production in Q2 2018 Primary Crusher
21 www.kinross.com 21 ATTRACTIVE DEVELOPMENT PROJECTS TASIAST PHASE ONE PROGRESSING WELL Phase One on schedule & on budget with full commercial production expected in Q2 2018 Reclaim tunnelSAG mill Leach tanks Oxygen plant
22 www.kinross.com 22 ATTRACTIVE DEVELOPMENT PROJECTS BALD MOUNTAIN VANTAGE COMPLEX Vantage Complex (South area) • Detailed engineering progressing on schedule • Contemplates construction of a new heap leach facility and related infrastructure  Design includes additional 68M tonnes of capacity for both the known resources in the Vantage area as well as potential future deposits • Estimated capital expenditures: $105M • Permitting proceeding on schedule • Major construction expected to begin in mid-2018 www.kinross.com 22 As at December 31, 2016 Proven & probable gold reserves 568koz. Measured & indicated gold resources 474koz. Inferred gold resources 40koz. South Area: Mineral Reserve & Mineral Resource Estimates(4) (4) Refer to endnote #4.
23 www.kinross.com 23 EXPLORATION UPDATE KUPOL VEIN SYSTEM Mineralization open in certain zones, with greatest potential for near-term extensions to the north and south • Completed 44,000 meters of core drilling at North and South extensions in H1 2017 with encouraging results • Commencing geological modelling & evaluation to determine potential resource additions or reserve conversions For additional information, please see Kinross’ news release dated February 15, 2017 and Appendices A and B, which are available on our website at www.kinross.com, as well as the Explanatory Notes available on slide 33 of this presentation. Big Bend 650 SE Extension North Extension/Star 1 km ~1.8 km Geochemical Anomaly Looking West 0 >5 Au g/t
24 www.kinross.com 24 EXPLORATION TASIAST SUD Accelerating drill program and initiating pre-feasibility study at Tasiast Sud C6.13 C6.15 Tamaya Sadraya C6.14 • Drilling focused on the C6.13 and C6.15 deposits in the Tasiast Sud area  Located immediately south of the Tasiast mine and west of the Tamaya deposit • Completed 13,000 metres of drilling in H1 2017  Majority of material at both targets is within a banded iron formation  C6.13 defined over approximately 2 km of strike; open to the north and south  C6.15 defined over 3 km of strike • Accelerated drill program planned for H2 2017  Goal of potential mineral resource additions at year-end • Initiated a pre-feasibility study for a Tasiast Sud dump leach operation that combines material from Tamaya, C6.13 and C6.15
25 www.kinross.com 25 Delivered SOLID PRODUCTION of 2.8Moz. 2016 Stronger year expected at BALD MOUNTAIN 2017E TASIAST PHASE ONE expected to reach full commercial production 2018E Expected start-up of potential TASIAST PHASE TWO 2020E Building Momentum for the Future 25
26 www.kinross.com 26 ENDNOTES 1) For more information regarding Kinross’ production, cost, overhead expense and capital expenditures outlook for 2017, please refer to the news releases dated February 15, 2017 and August 2, 2017, both of which are available on our website at www.kinross.com. Kinross’ outlook for 2017 represents forward-looking information and users are cautioned that actual results may vary. Please refer to the Cautionary Statement on Forward-Looking Information on slide 2 of this presentation and in our news release dated August 2, 2017, available on our website at www.kinross.com. 2) Unless otherwise noted, gold equivalent production, gold equivalent ounces sold and production cost of sales figures in this presentation are based on Kinross’ 90% share of Chirano production and sales. 3) Attributable production cost of sales per gold equivalent ounce sold and per gold ounce sold on a by-product basis, all- in sustaining cost per gold equivalent ounce sold and per gold ounce sold on a by-product basis, adjusted net earnings attributable to common shareholders, and adjusted operating cash flow numbers are non-GAAP financial measures. For more information and reconciliations of these non-GAAP measures for the three months and six months ended June 30, 2017, please refer to the news release dated August 2, 2017, under the heading “Reconciliation of non- GAAP financial measures,” available on our website at www.kinross.com. 4) Mineral reserves and mineral resources are estimates. For more information regarding Kinross’ 2016 mineral reserve and mineral resource estimates, please refer to our Annual Mineral Reserve and Mineral Resource Statement as at December 31, 2016 contained in our news release dated February 15, 2017, which is available on our website at www.kinross.com.
27 www.kinross.com 27 KINROSS GOLD CORPORATION 25 York Street, 17th Floor │Toronto, ON │ M5J 2V5 www.kinross.com

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080217 q2 webcast

  • 1.
    1 www.kinross.com 1 KINROSS GOLD CORPORATION Q22017 Results Conference Call & Webcast August 3 2017
  • 2.
    2 www.kinross.com 2 CAUTIONARY STATEMENT ONFORWARD-LOOKING INFORMATION All statements, other than statements of historical fact, contained or incorporated by reference in or made in giving this presentation and responses to questions, including but not limited to 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 harbor” 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 contained in this presentation include those statements on slides with, and statements made under, the headings “2017 Priorities”, “Financial Strength and Flexibility”, “2017 Outlook”, “Operating Highlights”, “Attractive Development Projects” and “Building Momentum for the Future”, and include without limitation statements with respect to our guidance for production, production costs of sales, all-in sustaining cost and capital expenditures, continuous improvement and other cost savings opportunities, as well as references to other possible events include, without limitation, possible events; opportunities; statements with respect to possible events or opportunities; estimates (including, without limitation, gold / mineral resources, gold / mineral reserves and mine life) 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 completion and results of any studies including, without limitation, feasibility studies; the future price of gold and silver; currency fluctuations; expected capital requirements; government regulation; and environmental risks. The words “2017E”, “2018E”, “2020E”, “ahead”, “anticipate”, “assumption”, “budget”, “contemplate”, “enhancing”, “envision”, “estimate”, “expect”, “explore”, “feasibility”, “flexibility”, “focus”, “forecast”, “forward”, “future”, “goal”, “growth”, “guidance”, “indicate”, “liquidity”, “momentum”, “objective”, “on track”, “opportunity”, “option”, “outlook”, “PFS”, “phased”, “plan”, “positive”, “positioned”, “possible”, “potential”, “pre-feasibility”, “priority”, “progressing”, “project”, “risk”, “study”, “target”, “trend”, “upside” or “view”, or variations of or similar such words and phrases or statements that certain actions, events or results may, can, could, would, should, might, indicates, or will be taken, 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 recently filed Annual Information Form, the “Risk Analysis” section of our FYE 2016 and Q2 2017 Management’s Discussion and Analysis, and the “Cautionary Statement on Forward-Looking Information” in our news release dated August 2, 2017, 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. John Sims, an officer of the Company who is a “qualified person” within the meaning of National Instrument 43-101.
  • 3.
  • 4.
    4 www.kinross.com 4 2017 Guidance(1) H12017 Results Gold equivalent production (oz.)(2) 2.5 to 2.7 million 1,366,830 Production cost of sales (US$/oz.)(3) $660 to $720 $680 All-in sustaining cost (US$/oz.)(3) $925 to $1,025 $931 Capital Expenditures (US$M) $900 (+/-5%) $380 2017 PRIORITIES DELIVER OPERATIONAL EXCELLENCE • Operations continue to deliver solid results  Stand-out quarter from Round Mountain – delivering higher production with lowest quarter cost of sales per ounce in nearly five years  Record quarterly production at Paracatu, driven by higher recoveries  Impressive grades at Kettle River • On track to meet guidance targets for sixth consecutive year Continuing our track record of meeting or outperforming our operational targets (1) Refer to endnote #1. (2) Refer to endnote #2. (3) Refer to endnote #3.
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    5 www.kinross.com 5 Combined Phase Oneand Two expansions expected to transform Tasiast into our largest producer with costs amongst the lowest in our portfolio 2017 PRIORITIES ADVANCE TASIAST TWO-PHASED EXPANSION Phase One progressing well • Approximately 55% complete • Project continues to be on time and on budget • Expect commercial production in Q2 2018 Advancing the Phase Two feasibility study • Study is advancing well and is expected to be finalized in September • Expect to make a development decision at that time Recent view of Phase One construction
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    6 www.kinross.com 6 2017 PRIORITIES DEVELOP BALDMOUNTAIN’S POTENTIAL Kinross envisions Bald Mountain as a long-life asset with significant upside potential and mineral resource growth • On track to double production with reduced costs, compared with 2016(1) • Trend of increasing production and declining costs continued in Q2 • Continued to advance engineering of the Vantage Complex in the South Area  Construction expected to begin in H1 2018 • Exploration activities focused on pit extensions and targets identified in 2016, with encouraging results (1) Refer to endnote #1. 32,675 44,343 47,077 49,881 0 200 400 600 800 1000 1200 1400 0 10000 20000 30000 40000 50000 60000 Q3 2016 Q4 2016 Q1 2017 Q2 2017 CostofSales($/oz.) Goldequivalentproduction(ounces) Bald Mountain Quarterly Production & Cost of Sales
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    7 www.kinross.com 7 2017 PRIORITIES ADVANCE ORGANICPROJECTS Round Mountain Phase W Nevada • Potential opportunity to extend mine life • Expect to provide results of the feasibility & to make a development decision in September September Northeast Russia • High-grade deposit located approximately 15 km from Dvoinoye • Began processing ore through the Kupol mill in June as planned Moroshka Russia • Located approximately 4 km from Kupol • Decline development well- advanced • Installation of surface infrastructure now complete Organic projects offer opportunities to expand production or increase mine life at our operations
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    8 www.kinross.com 8 EXCELLENT operational track record Balancesheet STRENGTH COMPELLING relative value ATTRACTIVE organic projects Kinross Value Proposition
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    10 www.kinross.com 10 Q2 2017 Highlights FINANCIALRESULTS All figures in US$ millions, except ounces, per share amounts and per ounce amounts Q2 2017 Q2 2016 H1 2017 H1 2016 Attributable gold equivalent ounces (oz.)(2) Produced 694,874 671,267 1,366,830 1,358,730 Sold 683,584 686,752 1,329,530 1,346,149 Average realized gold price ($/oz.) $1,260 $1,266 $1,241 $1,223 Production cost of sales(3) Gold equivalent ($/oz. Au eq.) $660 $731 $680 $709 By-product ($/oz.) $645 $711 $665 $693 All-in sustaining cost (3) Gold equivalent ($/oz. Au eq.) $910 $988 $931 $972 By-product ($/oz.) $901 $976 $922 $963 Capital expenditures $200.7 $114.0 $379.6 $253.5 Revenue $868.6 $876.4 $1,664.7 $1,659.0 Adjusted operating cash flow(3) $230.8 $187.2 $481.7 $394.8 Operating cash flow $179.7 $315.9 $387.5 $530.4 Adjusted net earnings (loss) attributable to common shareholders(3) $54.9 ($9.8) $78.3 $11.4 per share $0.04 ($0.01) $0.06 $0.01 Reported net earnings (loss) $33.1 ($25.0) $167.7 $10.0 per share $0.03 ($0.02) $0.13 $0.01 (2) Refer to endnote #2. (3) Refer to endnote #3.
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    11 www.kinross.com 11 FINANCIAL DISCIPLINE 2017 OUTLOOK(1) RegionSustaining Non-Sustaining Regional Total Americas $295 $65 $360 West Africa $80 $375 $455 Russia $40 $15 $55 Corporate $5 - $5 TOTAL $420 $455 $875 Capitalized Interest $25 TOTAL KINROSS $900 +/- 5% Capital Expenditures ($ millions) (1) Refer to endnote #1. Previous Guidance Revised Guidance Other operating costs ($ millions) $60 $80 to $90 Depreciation, depletion & amortization ($/oz.) $350 $300 to $325 Other Expenditures
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    12 www.kinross.com 12 BALANCE SHEET STRENGTH SOLIDFINANCIAL POSITION $1.1B $1.4B Cash & cash equivalents Undrawn credit facilities LIQUIDITY POSITION Maintaining balance sheet strength & financial flexibility remain priority objectives MAINTAINING FINANCIAL FLEXIBILITY • Cash and cash equivalents of $1.1 billion as at June 30, 2017  Increase of $240 million since Q1 2017 resulting from sale of non-core assets • Net debt to EBITDA as at June 30, 2017: 0.6x • Strong financial position to finance future development opportunities As at June 30 $2.5B
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    13 www.kinross.com 13 FINANCIAL DISCIPLINE MANAGEABLE DEBTPROFILE No significant debt maturities prior to 2021 $0 $500 $0 $500 $0 $500 $250 Through 2020 2021 2022 to 2023 2024 2025 to 2026 2027 2028 to 2040 2041 $millions Debt Schedule Senior Notes due 2021 5.125% Senior Notes due 2024 5.950% Senior Notes due 2027 4.50% Senior Notes due 2041 6.875% Interest Rates Agency Rating S&P BB+ (Positive) Moody’s Ba1 (Stable) Fitch BBB- (Stable) Debt Ratings• $500 million debt offering completed in July  Used net proceeds and available cash on hand to repay $500 million term loan due 2020 • As a result, no debt maturities prior to 2021 $- $- $- $-
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    15 www.kinross.com 15 OPERATING HIGHLIGHTS AMERICAS • Continuedstrong performance at Round Mountain • 2017 production expected to double at Bald Mountain with lower costs compared to 2016  Production expected to be heavily weighted towards H2 2017, particularly the fourth quarter • Kettle River-Buckhorn concluded mining in July • Commenced temporary production curtailment at Paracatu in July due to reduced regional rainfall  Do not expect to impact 2017 regional guidance  Reprocessing of tailings through Plant 1 continues in Q3, at a higher-than-normal rate of 50,000 tpd o Expected to produce 25 to 35koz. in Q3 Q2 2017 H1 2017 2017 Regional Guidance(1) Production (oz. Au eq.) 442,379 853,906 1.52 – 1.63 million Cost of sales ($/oz. Au eq.)(3) $658 $700 $680 to $750 (1) Refer to endnote #1. (3) Refer to endnote #3.
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    16 www.kinross.com 16 OPERATING HIGHLIGHTS WEST AFRICA •Strong performance continued at Tasiast in Q2 2017  Slightly lower grades as mining through lower grade sequence of mine plan • Production slightly lower than Q1 2017 at Chirano as surface mining was completed as scheduled • Mining now focused on the higher grade underground Akoti and Paboase mines (1) Refer to endnote #1. (2) Refer to endnote #2. (3) Refer to endnote #3. Q2 2017 H1 2017 2017 Regional Guidance(1) Production (oz. Au eq.)(2) 106,482 223,533 420,000 to 470,000 Cost of sales ($/oz. Au eq.)(3) $842 $813 $740 to $820
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    17 www.kinross.com 17 OPERATING HIGHLIGHTS RUSSIA • Productionlower as a result of planned decline in grades  Costs remain among the lowest in the portfolio • Development of September Northeast project completed on time and on budget  Began processing ore through Kupol mill in June as planned • Completed construction of surface infrastructure at Moroshka  Decline development progressing on plan (1) Refer to endnote #1. (3) Refer to endnote #3. Q2 2017 H1 2017 2017 Regional Guidance(1) Production (oz. Au eq.) 146,013 289,391 560,000 to 600,000 Cost of sales ($/oz. Au eq.)(3) $540 $520 $520 to $570
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    19 www.kinross.com 19 ATTRACTIVE DEVELOPMENT PROJECTS ADVANCINGORGANIC PROJECTS September NE Development complete Organic projects spanning all 3 of our regions offer opportunities to expand production or extend mine life at our operations Q2 2018 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Bald Mountain Mineral reserve estimate update Bald Mountain Vantage PFS Tasiast Phase 2 Feasibility study La Coipa Phase 7 Sectoral permits expected Tasiast Phase 1 Expected to reach full commercial production Project Location Americas West Africa Russia Round Mountain Phase W Feasibility study Vantage Major construction expected to begin Kupol Potential mineral resource addition Fort Knox Potential East & South Wall mineral resource addition   Tasiast Sud Potential mineral resource addition
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    20 www.kinross.com 20 ATTRACTIVE DEVELOPMENT PROJECTS TASIASTTWO-PHASED EXPANSION • Mechanical installation progressing well:  SAG mill shell fully in place; trunnions and bearings currently being installed  Apron feeders for stockpile & reclaim tunnel now in place  Mechanical works commenced at primary crusher  Conveyor foundations complete with installation expected to commence in in August  Installation of 3 new leach tanks progressing • Early commissioning progressing well  Oxygen plant commissioned, with new tailings facility scheduled to be commissioned in August • Early electrical works have been initiated Phase One construction ~55% complete; expect full commercial production in Q2 2018 Primary Crusher
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    21 www.kinross.com 21 ATTRACTIVE DEVELOPMENT PROJECTS TASIASTPHASE ONE PROGRESSING WELL Phase One on schedule & on budget with full commercial production expected in Q2 2018 Reclaim tunnelSAG mill Leach tanks Oxygen plant
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    22 www.kinross.com 22 ATTRACTIVE DEVELOPMENT PROJECTS BALDMOUNTAIN VANTAGE COMPLEX Vantage Complex (South area) • Detailed engineering progressing on schedule • Contemplates construction of a new heap leach facility and related infrastructure  Design includes additional 68M tonnes of capacity for both the known resources in the Vantage area as well as potential future deposits • Estimated capital expenditures: $105M • Permitting proceeding on schedule • Major construction expected to begin in mid-2018 www.kinross.com 22 As at December 31, 2016 Proven & probable gold reserves 568koz. Measured & indicated gold resources 474koz. Inferred gold resources 40koz. South Area: Mineral Reserve & Mineral Resource Estimates(4) (4) Refer to endnote #4.
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    23 www.kinross.com 23 EXPLORATION UPDATE KUPOL VEINSYSTEM Mineralization open in certain zones, with greatest potential for near-term extensions to the north and south • Completed 44,000 meters of core drilling at North and South extensions in H1 2017 with encouraging results • Commencing geological modelling & evaluation to determine potential resource additions or reserve conversions For additional information, please see Kinross’ news release dated February 15, 2017 and Appendices A and B, which are available on our website at www.kinross.com, as well as the Explanatory Notes available on slide 33 of this presentation. Big Bend 650 SE Extension North Extension/Star 1 km ~1.8 km Geochemical Anomaly Looking West 0 >5 Au g/t
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    24 www.kinross.com 24 EXPLORATION TASIAST SUD Accelerating drillprogram and initiating pre-feasibility study at Tasiast Sud C6.13 C6.15 Tamaya Sadraya C6.14 • Drilling focused on the C6.13 and C6.15 deposits in the Tasiast Sud area  Located immediately south of the Tasiast mine and west of the Tamaya deposit • Completed 13,000 metres of drilling in H1 2017  Majority of material at both targets is within a banded iron formation  C6.13 defined over approximately 2 km of strike; open to the north and south  C6.15 defined over 3 km of strike • Accelerated drill program planned for H2 2017  Goal of potential mineral resource additions at year-end • Initiated a pre-feasibility study for a Tasiast Sud dump leach operation that combines material from Tamaya, C6.13 and C6.15
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    25 www.kinross.com 25 Delivered SOLID PRODUCTION of 2.8Moz. 2016Stronger year expected at BALD MOUNTAIN 2017E TASIAST PHASE ONE expected to reach full commercial production 2018E Expected start-up of potential TASIAST PHASE TWO 2020E Building Momentum for the Future 25
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    26 www.kinross.com 26 ENDNOTES 1) For moreinformation regarding Kinross’ production, cost, overhead expense and capital expenditures outlook for 2017, please refer to the news releases dated February 15, 2017 and August 2, 2017, both of which are available on our website at www.kinross.com. Kinross’ outlook for 2017 represents forward-looking information and users are cautioned that actual results may vary. Please refer to the Cautionary Statement on Forward-Looking Information on slide 2 of this presentation and in our news release dated August 2, 2017, available on our website at www.kinross.com. 2) Unless otherwise noted, gold equivalent production, gold equivalent ounces sold and production cost of sales figures in this presentation are based on Kinross’ 90% share of Chirano production and sales. 3) Attributable production cost of sales per gold equivalent ounce sold and per gold ounce sold on a by-product basis, all- in sustaining cost per gold equivalent ounce sold and per gold ounce sold on a by-product basis, adjusted net earnings attributable to common shareholders, and adjusted operating cash flow numbers are non-GAAP financial measures. For more information and reconciliations of these non-GAAP measures for the three months and six months ended June 30, 2017, please refer to the news release dated August 2, 2017, under the heading “Reconciliation of non- GAAP financial measures,” available on our website at www.kinross.com. 4) Mineral reserves and mineral resources are estimates. For more information regarding Kinross’ 2016 mineral reserve and mineral resource estimates, please refer to our Annual Mineral Reserve and Mineral Resource Statement as at December 31, 2016 contained in our news release dated February 15, 2017, which is available on our website at www.kinross.com.
  • 27.
    27 www.kinross.com 27 KINROSS GOLD CORPORATION 25York Street, 17th Floor │Toronto, ON │ M5J 2V5 www.kinross.com