Risky Business –how risk is used as a strategic tool

March 2, 2015

1© 2015 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

What is Risk ?

“To expose someone or something valued to danger, harm or loss.”

Source: Wikipedia

2© 2015 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

“Risk comes from not knowing what you are doing” - Warren Buffett

What is Risk ?

3© 2015 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Risk Management

The process of identification, analysis and either acceptance or mitigation of uncertainty in investment making decisions.

Source: Wikipedia

KPMG at PDAC – Risky BusinessMarch 2015

• The Company regularly identifies risks through a risk register which is updated on a quarterly basis

• The risk register uses a scoring system to rank all risks according to likelihood and potential impact

• Mitigating measures are then determined and implemented as needed

• Management reviews the risk ratings and determines if any additional responses are required to reduce risk exposures

Lundin Mining – How Do We Deal with Risks?

Identify Risks

Assess and Rank

Identify & Implement Mitigation Strategies

Assess Residual Likelihood and

Impact

Review Risk Ratings and Determine Strategy to

Reduce Exposure

5

Identified Risk:

• Historically, Lundin has had relatively high political risk through its stake in the Tenke Fungurume mine located in the Democratic Republic of Congo

Mitigation Strategy:

• Embark on a strategy of growth outside of “higher risk” jurisdictions –geographic diversification

• After careful consideration of numerous opportunities, the Company acquired partial or complete interest in the Kokkola cobalt refinery (Finland) in 2012, the Eagle mine (USA) in 2013 and the Candelaria mining complex (Chile) in 2014

• These acquisitions had the effect of reducing the Company’s overall political risk profile, as well as significantly increasing our growth profile

• Each acquisition also resulted in a new set of risks that need to be carefully considered and managed, as well as opportunities

Acquisitions as a Mitigation Strategy

6

• Lundin acquired a 100% interest in the high grade Eagle nickel/copper mine from Rio Tinto for $315 million in cash

– Low financial risk - paid with cash on hand & revolving credit facility

• High quality, low-cost asset with similar scale to our existing operations– Low operational risk - underground mine with standard processing methodology

• At time of acquisition the project was approximately 50% complete – Moderate development risk as project was acquired during construction phase – Construction was subsequently completed in 2014 ahead of schedule & under budget

• Opportunity and risks identified to refresh & refocus local stakeholder engagement– Community relations have improved and local engagement remains a high priority

Eagle Acquisition (2013)

9

Candelaria Acquisition (2014)

• Lundin acquired an 80% interest in the Candelaria copper mining complex from Freeport for $1.8 billion in cash

– Moderate financial risk due to scale of acquisition cost relative to Lundin’s size– Financial risk mitigated by streaming portion of Au/Ag for upfront payment of $648M

• Large-scale open pit operation which doubled Lundin’s copper production– Moderate organizational risk due to large scale of operation– Risk mitigated by retaining highly experienced local staff and transition services

provided by seller

• Located in Chile’s Region III with wholly-owned infrastructure (port, desal plant) – Low jurisdiction risk for LUN’s first operational entry into South America– Chilean presence allows LUN to further seek regional consolidation opportunities

9

Geographic Diversification

• The Company’s exposure to the DR Congo has been reduced by more than half following the recent acquisitions

• In 2015, more than 50% of the Company’s revenues are now expected to come from the Americas (ie. Chile and USA)

Lundin in 2013 2015 Forecast(Post Eagle & Candelaria Acquisitions)

Chile33%

USA19%

Portugal19%

DRC15%

Sweden10%

Spain4%Sweden

19%

Spain13%

Portugal37%

DRC31%

Attributable Cu Eq. Production by Country

Note: Equivalency calculated according to the following prices: $3.00/lb Cu, $1.00/lb Zn, $8.00/lb Ni, $12.00/lb Co and $1.05/lb Pb9

Well-Diversified Base Metals Exposure

• The Company continues to have well-diversified exposure to copper, nickel and zinc

• Beyond 2015, the Company looks to maintain its focus on copper while continuing to maintain excellent exposure to nickel and zinc

Copper58%

Nickel10%

Zinc21%

Cobalt6%

Lead6%

Copper64%

Nickel17%

Zinc13%

Cobalt3%

Lead3%

Attributable Cu Eq. Production by Commodity

Lundin in 2013 2015 Forecasts(Post Eagle & Candelaria Acquisition)

Note: Equivalency calculated according to the following prices: $3.00/lb Cu, $1.00/lb Zn, $8.00/lb Ni, $12.00/lb Co and $1.05/lb Pb10

Thank You

Click to edit Master title style

TSX : IMG NYSE : IAG

IAMGOLD CorporationEnterprise Risk ManagementMarch 2, 2014

Click to edit Master title styleIAMGOLD’s Gold Assets – Global

Four Operating Gold Mines: Current Production 845k oz. 131

3

Click to edit Master title styleERM – Process Overview

Link to Strategy and Operations

Document, Consolidate and Categorize Risk

Prioritize Risks by Impact and Likelihood

Establish Risk Oversight and

Assign Ownership

… refreshing the risk set…

Explore Opportunities

Reframe Risks for Opportunity

… prospecting for upside opportunity…

Prevent / Minimize Risks Prepare Response

… protecting against downside loss…

14

Click to edit Master title styleRisk Culture

Definition

In risk management, accountability represents the duty of an individual or organization to account for its activities, accept responsibility for actions, to be answerable and to disclose the results in a transparent manner.

Objective

Management shall be accountable and responsible for managing actions associated with effective risk management including proactive risk mitigation, engage in implementing improvement opportunities and timely reporting.

Risk Accountability

Everyone understands IAMGOLD’s approach to risk, takes personal responsibility to manage risk in everything that they do, and encourages others to follow their example

Key Factors to establish a sound “Risk Culture”

Set right tone-at-the-top

Broad and consistent communication

Coach employees to be risk managers

Clarify expectations and requirements

Support identification and escalation of issues

Link performance and risk management

15

Click to edit Master title style

TighterLinkage to Strategy and

Operations

Identify, categorize and document strategic and

operational risks

Prioritize risks by impact and likelihood

Greater Focus on Downside Protection

Risk preventionRisk minimization

Response preparation in the event of occurrence

Consideration for Upside

Opportunities

Reframe risk for opportunities

ERM – Risk Parameters and Priorities

Threaten viability of the enterprise

Destruction of value

Materially affect longer term performance

16

Click to edit Master title style

EmbeddedVulnerabilities

Operational

Compliance

Organization

Finance

External

Strategy

Embedded Vulnerabilities and Risk Identification Framework

DEFINITION

Conditions or weaknesses already present within IAMGOLD’s capabilities and resources that increases the likelihood and/or the severity of risks

Such as . . . a weak balance sheet or high cost structure

17

Click to edit Master title styleIAMGOLD Risk Universe

Strategic Cost containment / reduction Capital allocation Pipeline shrinkage Acquisition / Dispositions Joint venture Exploration Capacity constraints Investor relations\ Erosion of relative shareholder value

Compliance Fraud and corruption Legal Regulatory Title Standard of business conduct

Finance Access to & cost of capital Capital structure and liquidity: Dividend Debt level

Taxation: Strategy and planning Compliance

Financial reporting

Operations Reserves and resources

Life of Mine (LOM) Environment / sustainability Mine development Security Health Safety Capital projects Technical Labour relations IT/Network

External Gold price volatility Country / Political risk Energy and input volatility Community Engagement Social relations Competition for properties and talent Commodity - FX volatility Supply chain Resource nationalism Hostile takeover

Organization Leadership Governance: Performance Oversight and authority Control environment

Human Resources: Talent management (attraction and

retention) Succession planning Compensation & benefits

Embedded Vulnerabilities High All In Sustaining Costs Insufficient capital to develop several projects Limitations on debt capacity Declining production profile / finite resources Operations in higher-risk jurisdictions Pipeline shrinkage

Geo-technical failures Limited control over joint venture Declining market capitalization Shareholder activism Pandemic: Ebola Illegal mining

18

Click to edit Master title styleCorporate strategy and risk relationship

Strategic Directions, Objectives and Initiatives Key Business Risks

Link

Bus

ines

s O

bjec

tives

To

Ris

ksE

valu

ate

the

sign

ifica

nce

of th

e ris

k to

bus

ines

s ob

ject

ives

Achieve 10% CAGR in production over

next 5 years

Develop robust pipeline to sustain production at the

higher level

Reduce cash cost to remain in the 2nd

Quartile of Cash cost by year end 2015

Capital prioritization and discipline for achieving a risk adjusted cost of

capital for desired short and long terms

returns

Cash Cost Per Ounce

CapitalAllocation

RegionalStrategy

Increase reserves by 124% to 26MMozs by

year end 2016

Increase resources by 69% to 47MMozs

by year end 2016

1. Threat of increased unpaid state participation in mining

2. Unfavourable revision of tax terms applicable to investment

3. Unlawful expropriation

8. Compliance breaches due to fraud, kick backs, commissions and facilitation payments to secure business

Strategic

Operational

Compliance

Financial

Brownfields development

Alternative Energy

Reduce equity production – sale of

Tarkwa and Damang and acquire Sadiola

Niobec Value enhancement

9. Large capital expenditures and cost pressures impacting the cash flow

10. Volatility in the market price for variousminerals directly impacting the earnings

4. Shortage of critical resources, equipment and skilled labor adversely affecting costs and projects scheduling

5. Threat to physical security of the mines6. Loss of production due to catastrophic

failure of key production components (such as conveyers, mills, etc)

7. Supply chain disruptions impacting ongoing operations, infrastructure development and exploration activities

Zero Harm

M&A Plans

Implementation of Regional Organizational

Model

Portfolio risk diversification – Focus on the Americas (e.g..

Colombia)

Review of REE potential

Niobec spin out or strategic investor

Increase Dividends

1919

“Risky Business” Seminar

March 2

2015KINROSS ENTERPRISE RISK MANAGEMENT PROGRAM

kinross.com

KINROSS GOLD CORPORATION

OVERVIEW

54%

19%

28%

Americas West Africa RussiaGLOBAL PORTFOLIO

Operating mineDevelopment project

Round Mountain

Kettle River-Buckhorn

Fort Knox

La Coipa

Paracatu

Maricunga

KupolDvoinoye

Chirano

Tasiast

AMERICASRUSSIA

WEST AFRICA

2.45-2.65M ounces

2015E GOLD EQUIVALENT PRODUCTION(1,2)

1) 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. 2) For more information regarding Kinross’ production, cost and capital expenditures outlook for 2015, please refer to the news release dated February 10, 2015, available on our website at www.kinross.com. Kinross’ outlook for 2015 represents forward-looking information and users are cautioned that actual results may vary.

kinross.com

“CRADLE-TO-GRAVE” MANAGEMENT OF RISKKINROSS ENTERPRISE RISK MANAGEMENT PROGRAM

Exploration Project Study / Execution Operation Closure

Life of Mine (LOM):

Focus:• Access• Resource

quality• Licence to

Operate• ….

Focus:• Safety• Design• Budget• Schedule• Quality• License to

Operate• …..

Focus:• Job Hazards

(FLRA’s)• Security• Asset Loss

Prevention / Failure Modes (ERA’s)

• Business Interruption• Site Responsibility

Plans• …..

Focus:• Obligations• Funding• Security• …..

22

kinross.com

RISK UNIVERSE - SOURCES OF RISKKINROSS RISK MANAGEMENT PROCESS

● Community Relations

● Energy● Environment● Equipment● Financial● Government

Relations● Human Resources● Infrastructure● Legal● Mining● Modelling

● Permitting & Regulatory

● Processing● Project Execution● Reputation● Health & Safety● Security● Supply Chain● Systems & IT● Tax● Treasury● Water Management● etc.

23

kinross.com

AGGREGATED MANAGEMENT OF RISKKINROSS ENTERPRISE RISK MANAGEMENT PROGRAM

Key Risk

Rating Rank

H&S 1

Equip-ment

2

HR 3

Tax 4

Ops. 5

Credit 6

Risk List

Health & Safety

Strategic

Human Resources

Political

Operational

Environmental

Financial

Community

Risk Identification

Aggregation

Risk Assessment Mitigation / Monitoring

Risk Owner

Risk Mitigation Plan

Action Plan

Due Date Status

QuarterlySLT / Board

Key RiskReporting

n > 500 n < 175 n < 20

SBP / PlanningSessions

Risk Workshops

Engineered Risk Assessments (ERA’s)

Asset Loss PreventionSurveys

Insurance Surveys / Assessments

HS&E Audits

Regulatory Inspections

C.I. Reviews

Security Assessments

Project Gate Reviews

Political Risk Assessments

Internal Audits

Employee Surveys

Assessments -Corporate Functions

(eg. Legal, Tax)

Site Responsibility Audits

etc.

24

25© 2015 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Risk

Questions

26© 2015 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Final Thoughts ………

The biggest risk is not taking any risk…..In a world that is changing really quickly, the only strategy that is guaranteed to fail is not taking risks – Mark Zuckerberg

Only those who will risk going too far can possibly find out how far one can go – T.S. Eliot

A ship is always safe at shore – but that is not what it is built for - Albert Einstein

The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.”

Thank You!

© 2015 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.