Kinross Gold Corporation Denver Gold Forum September 22, 2010 1 Delivering Disciplined Growth Denver Gold Forum Denver CO Denver , CO September 19-22, 2010 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, including 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 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; opportunities; statements with respect to possible events or opportunities; estimates and the realization of such estimates; future development, mining activities, production and growth, including but not limited to cost and timing; success of exploration; the future price of gold and silver; currency fluctuations; expected capital expenditures and requirements for additional capital; government regulation of mining operations and exploration; environmental risks; unanticipated reclamation expenses; and title disputes. The words “plans”, “expects”, “subject to”, “budget”, “scheduled”, “projected”, “pro forma”, “estimates”, “envision”, “forecasts”, “opportunity”, “potential”, “intends”, “anticipates” or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “can”, “could”, “would”, “should”, “might”, “will be taken”, “become”, “create”, “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. The estimates and assumptions of Kinross underlying the forward‐looking statements in this presentation which may prove to be incorrect include, but are not limited to, the various assumptions set forth in the “Statements Regarding Forward‐Looking Information” section of our Management Information Circular dated August 16, 2010 (as amended and supplemented, the “Circular”) mailed to Kinross shareholders in connection with the friendly combination between Kinross and Red Back pursuant to a plan of arrangement (the “Arrangement”), our most recently filed Annual Information Form and our Management’s Discussion and Analysis for the period ending December 31, 2009, as well as: (1) management’s assessment of the effects of completing the Arrangement; (2) the accuracy of Kinross’ and Red Back’s mineral reserve and mineral resource estimates; and (3) the viability of the Tasiast and Chirano mines, and the development and expansion of Tasiast and Chirano mines on a basis consistent with Kinross current expectations. 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 2009 Management’s Discussion and Analysis and the “Statements Regarding Forward‐Looking Information” and “Risk Factors” sections of the Circular, 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 2 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 or the Arrangement or the resulting combined company. 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. Where we say “Red Back” in this presentation, we mean Red Back Mining Inc. 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.
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, including 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 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; opportunities; statements with respect to possible events or opportunities; estimates and the realization of such estimates; future development, mining activities, production and growth, including but not limited to cost and timing; success of exploration; the future price of gold and silver; currency fluctuations; expected capital expenditures and requirements for additional capital; government regulation of mining operations and exploration; environmental risks; unanticipated reclamation expenses; and title disputes. The words “plans”, “expects”, “subject to”, “budget”, “scheduled”, “projected”, “pro forma”, “estimates”, ; p p ; p p , p , j , g , , p j , p f , ,“envision”, “forecasts”, “opportunity”, “potential”, “intends”, “anticipates” or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “can”, “could”, “would”, “should”, “might”, “will be taken”, “become”, “create”, “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. The estimates and assumptions of Kinross underlying the forward‐looking statements in this presentation which may prove to be incorrect include, but are not limited to, the various assumptions set forth in the “Statements Regarding Forward‐Looking Information” section of our Management Information Circular dated August 16, 2010 (as amended and supplemented, the “Circular”) mailed to Kinross shareholders in connection with the friendly combination between Kinross and Red Back pursuant to a plan of arrangement (the “Arrangement”), our most recently filed Annual Information Form and our Management’s Discussion and Analysis for the period ending December 31, 2009, as well as: (1) management’s assessment of the effects of completing the Arrangement; (2) the accuracy of Kinross’ and Red Back’s mineral reserve and mineral resource estimates; and (3) the viability of the Tasiast and Chirano mines, and the development and expansion of Tasiast and Chirano mines on a basis consistent with Kinross current expectations. 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 2009 Management’s Discussion and Analysis and the “Statements Regarding Forward‐Looking Information” and “Risk Factors” sections of the Circular, 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
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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 or the Arrangement or the resulting combined company. 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. Where we say “Red Back” in this presentation, we mean Red Back Mining Inc. 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.
• Received Environmental License for La Zarza orebody; allows drilling for geotechnical, hydrogeological, infill and metallurgy
• Approval to proceed with hydrogeological and geotechnical drilling at the Colibri concession
• Government review of the exploration decline EIA at La Zarzacommenced Q3, and government review of the EIA for additional exploration drilling at Colibri expected to commence Q4.
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Gold Resources(2)
Tonnes (thousands)
Grade (g/t)
Ounces(thousands)
Measured & Indicated 15,932 11.20 5,737
Inferred 24,306 7.85 6,135
(2) Please refer to endnote #2.
Fruta del Norte/Condor (100%)
FDN
• Exploration to date has located a number of epithermal and porphyry‐style targets hi h ill b th f f ti d FDN
Pull-apartbasin
which will be the focus of continued regional exploration
• FDN NI 43‐101 Technical Report*: Describes major exploration targets in area of Suarez pull‐apart basin
• 2010 FDN exploration spending: $34 mm
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*Source: Fruta del Norte Project Ecuador NI 43-101 Report - December 31, 2009
• Located the highly prospective Maricunga District
• Open pit, heap leach operation
• Expansion under review
Operating Results
Production (Au eq. oz)
Cost of Sales($/oz)
H1 2010 94,767 $620
H1 2009 116,439 $529
2009 Gold Reserves and Resources(2)
T G d O
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Tonnes(thousands)
Grade (g/t)
Ounces(thousands)
2P Reserves 280,792 0.71 6,403
M&I Resources 160,049 0.57 2,945
(2) Please refer to endnote #2.
Chirano, Ghana (90%)
• Open‐pit and underground mining operation
• 90% owned by Red Back; Government of Ghana holds a 10% carried interest
• 9 open‐pits and 2 recently‐discovered underground deposits
• 2010e production of ~240‐250 k oz(2)
• Current estimated mine life of 10+ years
Gold Reserves and Resources*
Tonnes Grade Contained
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Tonnes(thousands)
Grade (g/t)
Contained Au (mm oz)
2P Reserves 33,200 2.1 2.24
M&I Resources 41,700 2.5 3.34
Inferred Resources 12,600 3.2 1.30
(2) Please refer to endnote #2.*Source: Red Back Mining 2009 Annual Information Form (excludes Paboase update contained in the news release dated July 19, 2010). Resources are stated inclusive of reserves.
1) Production guidance for 2010 reflects Kinross’ standalone production forecast pro forma the acquisition of Red Back Mining. For more information on Kinross’ production and cost outlook for 2010, please refer to the news releases dated January 14, 2010 and May 4, 2010, available on our website at www.kinross.com. For more information on the 2010 production outlook for the assets acquired through the combination with Red Back, please refer to the news releases dated July 21, 2010 and August 3, 2010, available on Red Back’s website at www.redbackmining.com.
) f b bl l fl ’ l l b2) Pro forma proven and probable mineral reserves reflect Kinross’ Mineral Reserve and Mineral Resource Statement as at December31, 2009, contained in our news release dated January 28, 2010, adjusted to reflect the sale of half of Kinross’ 50% interest in the Cerro Casale project to Barrick in March 2010. For historical reserve and resource information, refer to Kinross’ public filings, available on our website. “Current RBI” Proven and Probable Mineral Reserves reflect Red Back’s Mineral Reserve and Mineral Resource statement as at December 31, 2009, adjusted to reflect updates in 2010. Please refer to Red Back’s website at: www.redbackmining.com/s/ResourcesReserves.asp, and the news releases dated February 1, 2010, March 1, 2010, July 19, 2010 and September 7, 2010, available on its website at www.redbackmining.com.
3) Unless otherwise stated, all cash flow and cash flow per share figures in this presentation are adjusted operating cash flow.Adjusted net earnings and operating cash flow figures are non‐GAAP financial measures which are meant to provide additional information and should not be used as a substitute for performance measures prepared in accordance with GAAP. For more information about these non‐GAAP financial measures, and a reconciliation of these non‐GAAP financial measures for the three andsix months ended June 30, 2009 and June 30, 2010, please refer to the press release dated August 4, 2010, available on our website at www.kinross.com under the heading “Reconciliation of non‐GAAP financial measures”. Comparative figures for the periods 2004 to 2008 represent cash flow from operating activities adjusted for changes in working capital only. Prior to the three and six months
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p p g j g g p yended December 31, 2009, the Company did not prepare a reconciliation of adjusted operating cash flow, and readers should refer to the Company’s financial statements and Management’s Discussion and Analysis for the applicable periods for additional financial Management s information prepared in accordance with GAAP.
4) Cost of sales margin is defined as the average realized price of gold less attributable cost of sales per ounce.5) Under National Instrument 43‐101 Standards of Disclosure for Mineral Projects (NI 43‐101), these potential tonnage and grade
estimates are conceptual in nature, as there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the targeted deposit being delineated as a mineral resource. Please refer to news release dated September 7, 2010, available on our website at www.kinross.com
