dedicated to being world class Denver Gold Forum September 28, 2004 Robert M. Buchan President & Chief Executive Officer
Forward Looking Statement 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.
Why Kinross? Very liquid senior gold producer Strong balance sheet Total cash costs similar to other senior gold producers No gold hedging Experienced management team Part of S&P TSX 60, S&P TSX Capped Gold Index, XAU Index, HUI Index
Kinross at a Glance Key Facts Senior gold producer, 2004 gold equivalent production of 1.7 million ozs @ $230 total cash cost ~3,600 employees in 6 countries Debt free Key Attributes Excellent spread of geopolitical risk Modern, low cost asset base Exciting pipeline of development projects and exploration targets
Highly liquid, undervalued stock 3.5 3.0 Glamis Price / NAV 2.5 2.0 Meridian Cambior Barrick Placer Goldcorp Newmont 1.5 Kinross 1.0 0.2% 0.3% 0.4% 0.5% 0.6% 0.7% 0.8% 0.9% 1.0% Liquidity
Kinross Today Kinross is now a major gold producer, focused in the Americas Concerns addressed: Financial leverage strong balance sheet
Balance Sheet (at December 31, 1999) Assets Liabilities $ millions $ millions Cash 113.9 Current liabilities 50.5 Other working capital 101.2 Property, plant and equipment 632.6 Total debt 397.7 Other long term assets 34.7 Site restoration costs 58.5 Future Taxes 7.3 Common Shareholders Equity 368.4 Total assets 882.4 Total Liabilities 882.4
Balance Sheet (at June 30, 2004) Assets Liabilities $ millions $ millions Cash 189.0 Current liabilities 79.6 Other working capital 182.7 Property, plant and equipment 778.8 Total debt 31.5 Goodwill 918.0 Site restoration costs 128.4 Other long term assets 51.7 Future taxes 52.4 Common shareholders equity 1,828.3 Total assets 2,120.2 Total Liabilities 2,120.2
From Net Debt to Net Cash 200 100 $ millions 0-100 -200 ~$478M -300 1998 1999 2000 2001 2002 2003 2004E Estimated net cash at year end 2004
Kinross Today Kinross is now a major gold producer, focused in the Americas Concerns addressed: Financial leverage strong balance sheet Cash costs comparable to other North American seniors
Total Cash Costs 400 How Kinross has improved relative to other producers over time? 350 300 Total Cash Costs 2000 Total Cash Costs 2004E US dollars 250 200 150 100 50 0 Harmony Anglo Placer Kinross Newmont Cambior Barrick Glamis Goldcorp Agnico Eagle Meridian
Kinross Today Kinross is now a major gold producer, focused in the Americas Concerns addressed: Financial leverage strong balance sheet Cash costs comparable to other North American seniors Deliver on production and cost targets
Deliverables 600 500 Production - Budget Production - Actual 000s gold equivalent ounces 400 300 200 100 0 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004E Q4 2004E
Kinross Today Kinross is now a major gold producer, focused in the Americas Concerns addressed: Financial leverage strong balance sheet Cash costs comparable to other North American seniors Deliver on production and cost targets Reserve life increasing year over year
Low Price/NAV due to short mine life? Source: Merrill Lynch 20 18 16 Reserve mine life Price/NAV 3.5 3 14 2.5 Years 12 10 8 2 1.5 Price / NAV multiple 6 1 4 2 0.5 0 Harmony Barrick Agnico Eagle Placer Glamis Anglo Meridian Newmont GoldCorp Kinross Cambior 0
Reserve Replacement - 2003 16 13.2 (1.8) 2.7 14.1 Millions of ounces 12 8 4 0 31-Dec-02 Depletion New Discoveries 31-Dec-03
Reserve Replacement 2004E 16 14.1 (2.1) 2.7 0.8 0.5 16.0 Millions of ounces 12 8 4 0 31-Dec-03 ($325) Depletion New Discoveries Acquisitions Gold Price 31-Dec-04E ($350)
Reserve Growth (excluding production) Estimated New 2P Reserves To Be Added in 2004 Gurupi Buckhorn Fort Knox Kubaka PJV Round Mtn La Coipa Musselwhite Crixas Blanket Lupin Kettle River 0 200 400 600 800 1000 1200 1400 1600 Reserve Ounces (000's)
Reserve Growth 2005 Round Mountain Fort Knox Kettle River Paracatu
Round Mountain Area 0.5 Mile 1 Deep Vein Target N $350 Pit Outline Mt. Jefferson Caldera Margin Target Gold Hill Mine South Gold Hill Target Mt. Jefferson Caldera Mt Jefferson Caldera Margin Fault Dry Canyon Caldera Fa ul t Margin Fault Ra ng ef ro nt 0 Dry Canyon Caldera Jefferson District Round Mountain Mine
Gold Hill Exploration Concepts A A Current Reserve Pit Sinter Basins Midas-style veins Caldera Margin Mineralization Sediment hosted gold 1000 Resource > 0.006 opt Au Mt Jefferson Caldera Margin Resource is open towards the South-West and at Depth 0 1000
Round Mountain / Gold Hill Deep HG Feeder Target S325 Pit Outline Mt Jefferson Caldera Margin Target Quaternary Cover Mt. Jefferson Caldera East Surprise Target South Gold Hill Target Completed drilling Q2 Proposed drilling Caldera boundary Fault half mile
Round Mountain Pit Expansion Ultimate Pit Current Pit Crest Potential Pit Expansion 1000
Fort Knox Drill Targets A South SECTION 10,600 E Looking West A' North Ultimate Pit Current Pit FFC-04-716 65 feet @ 0.316 OPT Au 35 feet @ 0.273 OPT Au Pit Expansion Target 5ft @ 0.16 OPT Au 5ft @ 0.18 OPT Au 5ft @ 0.45 OPT Au 5ft @ 0.33 OPT Au 5ft @ 0.09 OPT Au 5ft @ 0.20 OPT Au 5ft @ 0.11 OPT Au E X P L A N A T I O N Mineralized Shear > 0.030 Au opt Drill Intercept > 0.015 Au opt Granite Schist SCALE 1,000 FT FORT KNOX MINE SECTION 10,600 E PIT EXPANSION TARGET
Kettle River North Emanuel Creek 4500 E 5000 E SURFACE DRILL SITES 5500 E 6000 E EMANUEL NORTH 2004 EXPLORATION DRILLING PLAN MAP ENS04-01 thru ENS04-08 14.0 / 0.351 11.0 / 2.905 198.3 / 0.905 10.5 / 0.599 47500 N EXPLANATION Mineralized Zone 45 / 0.234 Surface Projection 47000 N A-A (47,000 N) 79.8 / 0.216 53.0 / 0.331 47000 N 2004 Drill Hole Trace 2004 Planned Drill Hole Drill Hole Trace 53.9 / 0.312 22.0 / 0.264 24.2 / 0.429 9.0 / 0.552 50.1 / 0.20t 10.0 / 0.349 Intervals > 0.2 Au opt 46500 N 17.0 / 0.503 39.0 / 0.303 46500 N 4500 E 10.0 / 2.05 B-B 860 North Drill Station 5500 E 41.3 / 0.219 43.0 / 0.190 6000 E 37.7 / 0.229 15.0 / 0.255 5.0 / 0.231 SCALE 500 FT EN04-01 thru EN04-08
Paracatu, Cross Section Looking N30 W 240 060 900m surface WATER TABLE 700m Hydrothermally Altered Ore Zone 350-400 Mt TARGET SAG EXPANSION (161Mt) CURRENT PIT LIMIT (369Mt) Phyllite 500m 1000 metres Existing drill hole Lower Pyrrhotite Ore Horizon B2 Calha Ore As >2,500 ppm
Kinross Today Kinross is now a major gold producer, focused in the Americas Concerns addressed: Financial leverage strong balance sheet Cash costs comparable to other North American seniors Deliver on production and cost targets Reserve life increasing year over year
Current Project Pipeline Refugio Pamour Birkachan Exploration Pre-feasibility Feasibility Construction Production Paracatu Exp. Puren Gurupi Gold Hill PQ Deeps Emanuel North Forquilha Sul Round Mtn Exp. Measured & Indicated Resources Proven & Probable Reserves Progress January 03 to September 04 New Discovery Pending Acquisition Round Mtn U/G South Gold Hill Buckhorn
Cash Flow Supporting Capex 200 160 Cash flow Capex Millions US dollars 120 80 40 0 1997 1999 2000 2001 2002 2003 2004E
2004 Capex Summary Millions US dollars 50 45 40 35 30 25 20 15 10 5 0 Refugio Fort Knox Porcupine Kubaka Round Mountain Project Sustaining Other
2004 Capex Fort Knox Investment - $74 million over three years to complete pit laybacks on phase 5 and phase 6 of mine plan Liberates 1.4 million oz of gold to be produced in 2005 2009 timeframe Porcupine Investment $33 million spread over 2004 2005 to bring Pamour mine into operation Ensures adequate mill feed for the 15,000 tpd mill
2004 Capex Refugio $56 million (Kinross share) to retrofit and restart plant that has been idle since 2001 Produce 210,000 to 230,000 oz/year (100% basis) @ $220 to $240
Summary Strong balance sheet Total cash costs similar to other senior gold producers Meet or exceed production targets Reserve concern being addressed
dedicated to being world class Shares outstanding: 345.6 million KGC: NYSE K: TSX K.U: TSX (US dollar trading symbol) K.WT: TSX www.kinross.com Kinross Gold Corporation 40 King Street West, 52 nd Floor Scotia Plaza Toronto, ON M5H 3Y2 416-365-5123 416-363-6622 866-561-3636 info@kinross.com