Kinross Gold Corporation (TSX: K, NYSE: KGC) (“Kinross” or the
“Company”) today announced its results for the first quarter ended
March 31, 2024.
This news release contains forward-looking
information about expected future events and financial and
operating performance of the Company. We refer to the risks and
assumptions set out in our Cautionary Statement on Forward-Looking
Information located on pages 27 and 28 of this release. All dollar
amounts are expressed in U.S. dollars, unless otherwise noted.
2024 first-quarter highlights:
-
Production of 527,399 gold equivalent ounces (Au
eq. oz.), a 13% year-over-year increase.
-
Production cost of sales1, 2 of
$982 per Au eq. oz. sold and all-in sustaining
cost2, 3 of $1,310 per Au eq. oz. sold,
both of which are in line with Q1 2023.
-
Margins4 increased by 20% to $1,088 per Au eq. oz.
sold, outpacing the rise in the average realized gold price.
-
Operating cash flow5 of $374.4 million and
adjusted operating cash flow3 of $424.9 million.
Attributable6 free cash
flow3 of $145.3 million.
-
Reported net earnings7 of $107.0 million, or $0.09
per share, with adjusted net earnings3, 8 of
$124.9 million, or $0.10 per share3.
-
Kinross’ Board of Directors declared a
quarterly dividend of $0.03 per common
share payable on June 13, 2024, to shareholders of record at
the close of business on May 30, 2024.
- On track to meet annual
guidance: On an attributable basis6, Kinross expects
to produce 2.1 million Au eq. oz. (+/- 5%) at a production cost of
sales per Au eq. oz.1 of $1,020 (+/- 5%) and all-in sustaining
cost3 of $1,360 (+/- 5%) per ounce sold for 2024. Total
attributable6 capital expenditures3 are forecast to be
approximately $1,050 million (+/- 5%).
- Balance sheet
strength: Kinross has improved its debt metrics and
continues to maintain its investment grade credit ratings. As of
March 31, 2024, Kinross had cash and cash equivalents of $406.9
million, for total liquidity9 of approximately $2 billion.
-
Operations:
-
Kinross’ three largest producing mines – Tasiast,
Paracatu and La Coipa – delivered
68% of total production, with production cost of sales of $821 per
Au eq. oz. sold1 and margins4 of $1,251 per Au eq. oz. sold.
-
Tasiast achieved record quarterly throughput as
the mine continued its strong performance since the completion of
the 24k project.
-
Paracatu achieved record quarterly throughput and
La Coipa continued to deliver high margin
production.
-
Development projects:
- Kinross’ pipeline
of development projects continues to advance on plan.
- At Great
Bear, the drilling campaign made strong progress in Q1
2024 and continues to successfully target extensions of the
resource at depth.
- At Manh
Choh, operations are ramping up and the project is on
track for first production in early Q3 2024.
- At Round
Mountain, Phase S mining is on plan, and
the exploration decline at Phase X is progressing
well, with approximately 1,800 metres developed to date.
- Sustainability
Report: Kinross expects to publish its 2023 Sustainability
Report later this month, providing a comprehensive summary of its
performance over the past year.
CEO commentary:J. Paul Rollinson, CEO, made the
following comments in relation to 2024 first-quarter results:
“We have had a strong start to the year and are
well positioned to meet our annual guidance. Our portfolio of mines
performed well, driven by strong operational performance,
disciplined cost management and higher gold prices. The Company
delivered a 20% increase in margins to $1,088 per ounce sold, which
is approximately double the percentage increase in the gold price
over the same period. As a result, free cash flow more than tripled
over Q1 2023.
“With the strong sustained gold price, we will
continue to prioritize our financial discipline and operational
excellence. We will focus on maintaining our margins and cost
profile, prudent capital allocation and debt reduction.
“Our development projects are all proceeding as
planned. At Great Bear, we made excellent progress on our 2024
drilling campaign, which continued to successfully target
extensions of the resource at depth, and we remain on track to
release a preliminary economic assessment (PEA) in the second half
of the year. At Round Mountain, Phase S and Phase X are advancing
well. We are also looking forward to first production at Manh Choh
early in the third quarter. At Tasiast, our solar power plant is
complete and generating power at full capacity.
“Kinross’ commitment to Sustainability is deeply
rooted in our values and culture, and we are proud of our
consistent high rankings in our industry. We are looking forward to
publishing our 2023 Sustainability Report later this month, marking
our 16th year of reporting in this important area.”
Summary of financial and operating
results
|
|
|
Three months ended |
|
|
|
March 31, |
|
(unaudited, in millions of U.S. dollars, except ounces, per share
amounts, and per ounce amounts) |
2024 |
2023 |
|
Operating Highlights |
|
|
|
| Total
gold equivalent ounces(a) |
|
|
|
Produced |
|
527,399 |
|
466,022 |
|
Sold |
|
522,400 |
|
490,330 |
|
|
|
|
|
|
Financial Highlights |
|
|
|
|
Metal sales |
|
$ |
1,081.5 |
$ |
929.3 |
|
Production cost of sales |
|
$ |
512.9 |
$ |
483.9 |
|
Depreciation, depletion and amortization |
|
$ |
270.7 |
$ |
211.9 |
| Operating
earnings |
|
$ |
193.2 |
$ |
143.9 |
| Net
earnings attributable to common shareholders |
|
$ |
107.0 |
$ |
90.2 |
| Basic
earnings per share attributable to common shareholders |
|
$ |
0.09 |
$ |
0.07 |
| Diluted
earnings per share attributable to common shareholders |
|
$ |
0.09 |
$ |
0.07 |
| Adjusted
net earnings attributable to common shareholders(b) |
|
$ |
124.9 |
$ |
87.6 |
| Adjusted
net earnings per share(b) |
|
$ |
0.10 |
$ |
0.07 |
| Net cash
flow provided from operating activities |
|
$ |
374.4 |
$ |
259.0 |
| Adjusted
operating cash flow(b) |
|
$ |
424.9 |
$ |
358.2 |
| Capital
expenditures(c) |
|
$ |
241.9 |
$ |
221.2 |
|
Attributable(d)capital expenditures(b) |
|
$ |
232.1 |
$ |
211.8 |
|
Attributable(d)free cash flow(b) |
|
$ |
145.3 |
$ |
47.8 |
| Average
realized gold price per ounce(e) |
|
$ |
2,070 |
$ |
1,894 |
|
Production cost of sales per equivalent ounce(a)sold(f)(g) |
|
$ |
982 |
$ |
987 |
|
Production cost of sales per ounce sold on a by-product
basis(b)(g) |
|
$ |
941 |
$ |
929 |
| All-in
sustaining cost per ounce sold on a by-product basis(b)(g) |
|
$ |
1,281 |
$ |
1,284 |
| All-in
sustaining cost per equivalent ounce(a)sold(b)(g) |
|
$ |
1,310 |
$ |
1,321 |
|
Attributable(d)all-in cost per ounce sold on a by-product
basis(b) |
|
$ |
1,613 |
$ |
1,616 |
|
Attributable(d)all-in cost per equivalent ounce(a)sold(b) |
|
$ |
1,630 |
$ |
1,634 |
|
(a) |
|
“Gold equivalent ounces” include silver ounces produced and sold
converted to a gold equivalent based on a ratio of the average spot
market prices for the commodities for each period. The ratio for
the first quarter of 2024 was 88.70:1 (first quarter of 2023 –
83.82:1). |
|
(b) |
|
The definition and reconciliation of these non-GAAP financial
measures and ratios is included on pages 16 to 21 of this news
release. Non-GAAP financial measures and ratios have no
standardized meaning under IFRS and therefore, may not be
comparable to similar measures presented by other issuers. |
|
(c) |
|
“Capital expenditures” is as reported as “Additions to property,
plant and equipment” on the interim condensed consolidated
statements of cash flows. |
|
(d) |
|
“Attributable” includes Kinross’ 70% share of Manh Choh costs,
capital expenditures and cash flow, as appropriate. |
|
(e) |
|
“Average realized gold price per ounce” is defined as gold metal
sales divided by total gold ounces sold. |
|
(f) |
|
“Production cost of sales per equivalent ounce sold” is defined as
production cost of sales divided by total gold equivalent ounces
sold. |
|
(g) |
|
As production from Manh Choh is expected to commence in the third
quarter of 2024, production cost of sales and attributable all-in
sustaining cost figures and ratios for Manh Choh are nil for all
periods presented. As a result, production cost of sales and all-in
sustaining cost figures and ratios are equal to attributable
production cost of sales and attributable all-in sustaining cost
figures and ratios, as applicable. |
|
|
|
|
The following operating and financial results
are based on first-quarter gold equivalent production:
Production: Kinross produced
527,399 Au eq. oz. in Q1 2024, compared with 466,022 Au eq. oz. in
Q1 2023. The 13% year-over-year increase was primarily due to
higher throughput at Tasiast, higher grades at La Coipa, and higher
production at Bald Mountain due to timing of ounces recovered from
the heap leach pads.
Average realized gold price10:
The average realized gold price in Q1 2024 was $2,070 per ounce,
compared with $1,894 per ounce in Q1 2023.
Revenue: During the first
quarter, revenue increased to $1,081.5 million, compared with
$929.3 million during Q1 2023. The 16% year-over-year increase is
primarily due to increases in gold equivalent ounces sold and
average metal prices realized.
Production cost of sales:
Production cost of sales per Au eq. oz. sold1, 2 decreased slightly
to $982 for the quarter, compared with $987 in Q1 2023.
Production cost of sales per Au oz. sold on a
by-product basis2, 3 was $941 in Q1 2024, compared with
$929 in Q1 2023, based on gold sales of 503,604 ounces and
silver sales of 1,667,248 ounces.
Margins4: Kinross’ margin per
Au eq. oz. sold increased by 20% to $1,088 for Q1 2024, compared
with the Q1 2023 margin of $907, outpacing the 9% increase in
average realized gold price10.
All-in sustaining cost2, 3:
All-in sustaining cost per Au eq. oz. sold was $1,310 in Q1 2024,
compared with $1,321 in Q1 2023.
In Q1 2024, all-in sustaining cost per Au oz.
sold on a by-product basis was $1,281, compared with $1,284 in Q1
2023.
Operating cash flow5: Operating
cash flow was $374.4 million for Q1 2024, compared with $259.0
million for Q1 2023.
Adjusted operating cash flow3 for Q1 2024 was
$424.9 million, compared with $358.2 million for Q1 2023.
Attributable6
free cash flow3: Attributable
free cash flow more than tripled to $145.3 million in Q1 2024,
compared with $47.8 million in Q1 2023.
Earnings: Reported net
earnings7 increased by 19% to $107.0 million for Q1 2024, or $0.09
per share, compared with reported net earnings of $90.2 million, or
$0.07 per share, for Q1 2023.
Adjusted net earnings3, 8 increased by 43% to
$124.9 million, or $0.10 per share, for Q1 2024, compared with
$87.6 million, or $0.07 per share, for Q1 2023.
Attributable6
capital expenditures3: Attributable capital
expenditures increased to $232.1 million for Q1 2024, compared with
$211.8 million for Q1 2023, primarily due to an increase in capital
stripping at Tasiast and Fort Knox11, as well as the start of Phase
S capital development at Round Mountain, partially offset by a
decrease in capital stripping at La Coipa.
Balance sheet
Kinross had cash and cash equivalents of $406.9
million as of March 31, 2024, compared with $352.4 million at
December 31, 2023. The increase was primarily due to the increase
in operating cash flow.
Kinross has improved its debt metrics and
continues to prioritize maintaining and strengthening its
investment grade balance sheet. Kinross plans to further reduce
debt during the year by allocating excess free cash generated
towards the term loan due in 2025.
The Company had additional available credit12 of
$1.6 billion and total liquidity9 of approximately $2 billion as of
March 31, 2024.
Dividend
As part of its continuing quarterly dividend
program, the Company declared a dividend of $0.03 per common share
payable on June 13, 2024, to shareholders of record as of May 30,
2024.
Operating results
Mine-by-mine summaries for 2024 first-quarter
operating results may be found on pages 10 and 14 of this news
release. Highlights include the following:
At Tasiast, production was in
line with the previous quarter, and was higher year-over-year
mainly due to record quarterly throughput following the completion
of the Tasiast 24k project in the second half of 2023, partly
offset by lower grades, as planned. Cost of sales per ounce sold
was largely in line quarter-over-quarter, and lower year-over-year
mainly due to the higher ounces sold.
Paracatu delivered according to
plan, with production largely in line with the previous quarter,
and higher year-over-year mainly due to an increase in throughput,
partly offset by lower grades as a result of planned mine
sequencing. Cost of sales per ounce sold decreased
quarter-over-quarter primarily due to lower maintenance, labour and
contractor costs. Year-over-year, cost of sales per ounce sold
increased mainly due to an increase in labour, drilling, blasting
and fuel costs related to an increase in tonnes mined.
At La Coipa, production was
slightly lower than the previous quarter mainly as a result of a
decrease in throughput, which was offset by higher grades and
recoveries. Production increased compared with the same period last
year primarily due to an increase in gold grades, and an increase
in mill throughput. Cost of sales per ounce sold was largely in
line with both comparable periods.
At Fort Knox11, production was
lower quarter-over-quarter due to lower mill grade, throughput and
recovery, and the seasonal effect of fewer ounces recovered from
the heap leach pads. Year-over-year, production was lower due to
lower mill grade, throughput and recovery. In both comparable
periods, cost of sales per ounce sold was higher primarily due to
lower production.
Round Mountain performed well,
with production increasing quarter-over-quarter due to higher mill
throughput, grade, and recoveries, partially offset by fewer ounces
recovered from the heap leach pads. The increase in production
compared to Q1 2023 was primarily due to higher mill grade and
throughput, partially offset by lower mill recovery and fewer
ounces recovered from the heap leach pads. In both comparable
periods, cost of sales per ounce sold was lower due to the increase
in production as well as an increase in capital development related
to the start of stripping Phase S.
At Bald Mountain, production
increased in both comparable periods mainly due to an increase in
ounces recovered from the heap leach pads. Cost of sales per ounce
sold was lower quarter-over-quarter mainly as a result of a higher
proportion of capital development, and similarly, lower
year-over-year due to a higher proportion of capital development as
well as higher production.
Development Projects and
Exploration
Great Bear
At the Great Bear project, the
Company’s robust exploration program continues to make excellent
progress, execution planning for the advanced exploration program
is well underway, and permitting continues to advance on plan.
The drilling results below (at true width)
continue to support the view of a high-grade, long-life mining
complex at Great Bear, with recent results showing extension of
mineralization at depth across multiple zones.
At Yuma, results continue to intersect higher
grade mineralization at depth in close proximity to the current
resource, with holes BR-843AC3 and BR-695C1A intersecting 10.2m @
18.59 g/t at 975m vertical depth and 6.2m @ 6.24 g/t at 1,085m
vertical depth, respectively.
At Yauro, BR-708AC1B intersected 2.0m @ 11.41
g/t at a vertical depth of 1,095m well below the current resources,
showing the potential for Yauro to continue to expand at depth with
high grade mineralization, similar to how depth extensions
progressed with continued drilling at Yuma.
At Auro, recent drilling also intersected high
grade mineralization with a minable width below the current
resources with hole BR-882 intersecting 6.1m @ 25.71 g/t at a
vertical depth of 720m.
At Discovery to the northwest, hole BR-847 has
intersected 2.4m @ 5.53 g/t at 870m in the under-tested area
beneath the current resource, demonstrating continuity of
mineralization between previously reported drill holes. The 2024
drill program will continue to target mineralization below the
existing mineral resource, explore for additional deposits along
strike, and expand our Red Lake style mineralization at Hinge and
Limb.
For the Advanced Exploration (AEX) program,
Kinross is progressing provincial permitting, engineering, and
execution planning activities that would establish an underground
decline to obtain a bulk sample and allow for definition and infill
drilling in the LP zone. Kinross has the necessary surface rights
to develop the AEX project, subject to obtaining the required
provincial permits.
Detailed engineering, execution planning, and
procurement continue to progress well. Some required infrastructure
such as the camp and water treatment plant have now been
purchased.
Kinross is targeting a start of the surface
construction for the AEX program in the second half of 2024,
subject to receipt of permits, with start of the underground
decline planned in mid-2025.
For the Main Project, Kinross continues to
advance technical studies, including engineering and field test
work campaigns. In the last quarter, substantial geotechnical field
work was conducted to help de-risk project construction through
strong early technical studies.
Kinross remains on track to release a PEA in the
second half of 2024. Kinross has opted to pursue a PEA as it
enables the inclusion of a portion of the inferred underground
resource. This provides visibility into the potential production
scale, construction capital, all-in sustaining cost and margins for
both the open pit and the underground. The PEA will only include a
subset of the ounces in the measured, indicated, and inferred
resources drilled to date.
The Detailed Project Description for the Main
Project was submitted to the Impact Assessment Agency of Canada in
Q1 2024, as planned, and the Federal Impact Assessment is underway.
Studies are ongoing and the Company expects to file its Impact
Statement in the first half of 2025.
Selected Great Bear Drill
ResultsSee Appendix A for full results.
|
Hole ID |
|
From (m) |
To (m) |
Width (m) |
True Width (m) |
Au (g/t) |
Target |
|
BR-695C1A |
|
1,324.7 |
1,333.0 |
8.3 |
7.3 |
5.35 |
Yuma |
|
BR-695C1A |
Including |
1,324.7 |
1,331.7 |
7.0 |
6.2 |
6.24 |
|
|
BR-695C1A |
|
1,441.2 |
1,444.2 |
3.0 |
2.6 |
0.58 |
|
|
BR-695C1A |
|
1,469.0 |
1,517.5 |
48.5 |
42.7 |
0.86 |
|
|
BR-695C1A |
Including |
1,502.6 |
1,506.3 |
3.7 |
2.8 |
4.49 |
|
|
BR-695C1A |
|
1,524.5 |
1,537.8 |
13.3 |
11.3 |
0.81 |
|
|
BR-708AC1B |
|
1,271.7 |
1,276.7 |
5.0 |
4.5 |
0.64 |
Yauro |
|
BR-708AC1B |
|
1,319.9 |
1,323.7 |
3.8 |
3.4 |
0.50 |
|
|
BR-708AC1B |
|
1,376.2 |
1,441.7 |
65.5 |
59.0 |
0.96 |
|
|
BR-708AC1B |
Including |
1,438.7 |
1,441.1 |
2.4 |
2.0 |
11.41 |
|
|
BR-843AC3 |
|
1,256.3 |
1,259.8 |
3.5 |
2.7 |
0.68 |
Yuma |
|
BR-843AC3 |
|
1,354.7 |
1,395.0 |
40.3 |
36.3 |
5.65 |
|
|
BR-843AC3 |
|
1,377.4 |
1,388.8 |
11.3 |
10.2 |
18.59 |
|
|
BR-843AC3 |
|
1,509.7 |
1,513.7 |
4.0 |
3.5 |
3.39 |
|
|
BR-847 |
|
934.7 |
950.0 |
15.3 |
13.0 |
2.08 |
Discovery |
|
BR-847 |
Including |
934.7 |
937.5 |
2.8 |
2.4 |
5.21 |
|
|
BR-847 |
|
975.0 |
992.5 |
17.5 |
14.9 |
0.85 |
|
|
BR-847 |
|
998.8 |
1,001.8 |
3.0 |
2.6 |
0.48 |
|
|
BR-847 |
|
1,027.2 |
1,036.1 |
8.9 |
7.8 |
1.54 |
|
|
BR-847 |
|
1,048.5 |
1,051.5 |
3.0 |
2.7 |
0.35 |
|
|
BR-847 |
|
1,052.9 |
1,080.0 |
27.1 |
24.4 |
1.38 |
|
|
BR-847 |
Including |
1,063.6 |
1,066.3 |
2.7 |
2.4 |
5.53 |
|
|
BR-882 |
|
953.0 |
957.5 |
4.5 |
3.7 |
0.45 |
Auro |
|
BR-882 |
|
1,015.2 |
1,022.4 |
7.2 |
6.1 |
25.71 |
|
|
BR-882 |
Including |
1,017.5 |
1,019.4 |
1.9 |
1.6 |
95.27 |
|
Results are preliminary in nature and are
subject to on-going QA/QC. Lengths are subject to rounding.
See Appendix B for a LP zone long section.
Fort Knox
At the Kinross-operated, 70%-owned Manh Choh
project, the Company is on track for first production in early Q3
2024. Ore and waste mining are ongoing with the full mining fleet
now in operation as planned. Following several months of
orientation runs, transportation of ore to Fort Knox, where the ore
will be processed, continues to ramp up with all contracted trucks
received, the majority of the drivers onboarded, and trailer
manufacturing now complete.
At Fort Knox, mill modifications and site
preparation remain on plan, including the completion of the ore
delivery road and tie-ins for the pebble recycle conveyor. Building
construction is advancing well, along with interior piping and
electrical works.
Round Mountain
The extension strategy at Round
Mountain is advancing well. At Phase S,
mining is on plan. For the heap leach pad expansion, earthworks
began during the quarter, procurement is advancing as expected and
construction activities remain on track.
At Phase X, development of the
exploration decline is progressing well, with over 1,800
metres developed to date. The decline has now progressed to
the point that infill drilling of the primary Phase X target can
commence in Q2 2024, as planned.
The Company also took the opportunity, as the
decline was advancing, to perform exploration drilling in between
the open pit and the underground target. This drilling13 has
intersected high-grade mineralization with significant widths in
this area outside of the primary Phase X target, which is also an
area that did not have significant historic drilling, as
highlighted below:
- DX-0012:
8.4m @ 16.6 g/t Au Eq
- DX-0019:
21.3m @ 9.9 g/t Au Eq
- DX-0014:
9.1m @ 9.5 g/t Au Eq
These results show potential for expansion of
the target area for mineralization and for potential future mining
at Phase X (see Appendix C).
At Gold Hill, infill drilling
of the underground targets is being completed from the bottom of
the historical pit and exploration drilling is being completed from
surface, testing continuity and extensions at depth and on
strike.
Chile
Kinross’ activities in Chile are currently
focused on La Coipa and potential opportunities to extend its mine
life. The Lobo-Marte project continues to provide
optionality as a potential large, low-cost mine upon the conclusion
of mining at La Coipa. While the Company focuses its technical
resources on La Coipa, it will continue to engage and build
relationships with communities related to Lobo-Marte and government
stakeholders.
Curlew Basin exploration
At Curlew, Kinross is working on optimizing the
potential mine design with a focus on improving the efficiency and
margin of potential underground mining. The Company continues to
progress underground drilling to follow up on recent high-grade
intersections at the Roadrunner and Stealth vein zones, and has
intersected multiple zones of stockwork veining with assays
pending.
Conference call details
In connection with this news release, Kinross
will hold a conference call and audio webcast on Wednesday, May 8,
2024, at 7:45 a.m. EDT to discuss the results, followed by a
question-and-answer session. To access the call, please dial:
Canada & US toll-free – 1
(888) 330-2446; Passcode: 4915537Outside of Canada &
US – 1 (240) 789-2732; Passcode: 4915537
Replay (available up to 14 days after the
call):
Canada & US toll-free – 1
(800) 770-2030; Passcode: 4915537Outside of Canada &
US – 1 (647) 362-9199; Passcode: 4915537
You may also access the conference call on a
listen-only basis via webcast at our website www.kinross.com. The
audio webcast will be archived on www.kinross.com.
Virtual Annual Meeting of
Shareholders
Kinross’ virtual Annual Meeting of Shareholders
will be held on Wednesday, May 8, 2024, at 10:00 a.m.
EDT.
The virtual meeting will be accessible online
at: web.lumiagm.com/#/429018094. The link to the virtual
meeting will also be accessible at www.kinross.com and
will be archived for later use.
Voting and participation instructions for
eligible shareholders are provided in the Company’s Notice of
Annual Meeting of Shareholders and Management Information
Circular.
This release should be read in conjunction with
Kinross’ 2024 first-quarter unaudited Financial Statements and
Management’s Discussion and Analysis report at www.kinross.com.
Kinross’ 2024 first-quarter Financial Statements and Management’s
Discussion and Analysis have been filed with Canadian securities
regulators (available at www.sedarplus.ca) and furnished with the
U.S. Securities and Exchange Commission (available at www.sec.gov).
Kinross shareholders may obtain a copy of the financial statements
free of charge upon request to the Company.
About Kinross Gold Corporation
Kinross is a Canadian-based global senior gold
mining company with operations and projects in the United States,
Brazil, Mauritania, Chile and Canada. Our focus is on delivering
value based on the core principles of responsible mining,
operational excellence, disciplined growth, and balance sheet
strength. Kinross maintains listings on the Toronto Stock Exchange
(symbol: K) and the New York Stock Exchange (symbol: KGC).
Media Contact Victoria BarringtonSenior
Director, Corporate Communicationsphone:
647-788-4153victoria.barrington@kinross.com
Investor Relations ContactChris Lichtenheldt
Vice-President, Investor Relations phone:
416-365-2761chris.lichtenheldt@kinross.com
Review of operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, (unaudited) |
|
Gold equivalent ounces |
|
|
|
|
|
|
|
|
|
Produced |
|
Sold |
|
Production cost of sales($millions) |
|
Production cost ofsales/equivalent ounce sold |
|
|
2024 |
2023 |
|
2024 |
2023 |
|
2024 |
2023 |
|
2024 |
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tasiast |
159,199 |
131,045 |
|
151,014 |
128,479 |
|
99.7 |
88.4 |
|
660 |
688 |
|
Paracatu |
128,273 |
123,334 |
|
128,110 |
128,344 |
|
135.7 |
118.0 |
|
1,059 |
919 |
| La
Coipa |
71,245 |
53,596 |
|
71,125 |
61,780 |
|
52.1 |
44.9 |
|
733 |
727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fort
Knox |
53,350 |
65,387 |
|
56,292 |
65,404 |
|
82.5 |
77.6 |
|
1,466 |
1,186 |
| Round
Mountain |
68,352 |
58,832 |
|
68,169 |
58,226 |
|
90.6 |
96.5 |
|
1,329 |
1,657 |
| Bald
Mountain |
46,980 |
33,828 |
|
47,241 |
47,283 |
|
52.1 |
58.0 |
|
1,103 |
1,227 |
|
United States Total |
168,682 |
158,047 |
|
171,702 |
170,913 |
|
225.2 |
232.1 |
|
1,312 |
1,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maricunga |
- |
- |
|
449 |
814 |
|
0.2 |
0.5 |
|
445 |
614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations Total |
527,399 |
466,022 |
|
522,400 |
490,330 |
|
512.9 |
483.9 |
|
982 |
987 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interim condensed consolidated balance
sheets
| (unaudited, expressed in
millions of U.S. dollars, except share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at |
|
|
|
|
March 31, |
|
December 31, |
|
|
|
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
406.9 |
|
|
$ |
352.4 |
|
|
|
Restricted cash |
|
|
10.3 |
|
|
|
9.8 |
|
|
|
Accounts receivable and other assets |
|
|
283.2 |
|
|
|
268.7 |
|
|
|
Current income tax recoverable |
|
|
2.7 |
|
|
|
3.4 |
|
|
|
Inventories |
|
|
1,117.7 |
|
|
|
1,153.0 |
|
|
|
Unrealized fair value of derivative assets |
|
|
10.9 |
|
|
|
15.0 |
|
|
|
|
|
|
1,831.7 |
|
|
|
1,802.3 |
|
|
|
Non-current assets |
|
|
|
|
|
|
Property, plant and equipment |
|
|
7,942.4 |
|
|
|
7,963.2 |
|
|
|
Long-term investments |
|
|
49.4 |
|
|
|
54.7 |
|
|
|
Other long-term assets |
|
|
716.8 |
|
|
|
710.6 |
|
|
|
Deferred tax assets |
|
|
12.6 |
|
|
|
12.5 |
|
|
|
Total assets |
|
$ |
10,552.9 |
|
|
$ |
10,543.3 |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
466.8 |
|
|
$ |
531.5 |
|
|
|
Current income tax payable |
|
|
68.6 |
|
|
|
92.9 |
|
|
|
Current portion of long-term debt and credit facilities |
|
|
999.3 |
|
|
|
- |
|
|
|
Current portion of provisions |
|
|
47.0 |
|
|
|
48.8 |
|
|
|
Other current liabilities |
|
|
12.1 |
|
|
|
12.3 |
|
|
|
|
|
|
1,593.8 |
|
|
|
685.5 |
|
|
|
Non-current liabilities |
|
|
|
|
|
|
Long-term debt and credit facilities |
|
|
1,234.0 |
|
|
|
2,232.6 |
|
|
|
Provisions |
|
|
893.9 |
|
|
|
889.9 |
|
|
|
Long-term lease liabilities |
|
|
16.4 |
|
|
|
17.5 |
|
|
|
Other long-term liabilities |
|
|
86.8 |
|
|
|
82.4 |
|
|
|
Deferred tax liabilities |
|
|
458.6 |
|
|
|
449.7 |
|
|
|
Total liabilities |
|
$ |
4,283.5 |
|
|
$ |
4,357.6 |
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
Common shareholders' equity |
|
|
|
|
|
|
Common share capital |
|
$ |
4,486.5 |
|
|
$ |
4,481.6 |
|
|
|
Contributed surplus |
|
|
10,640.3 |
|
|
|
10,646.0 |
|
|
|
Accumulated deficit |
|
|
(8,912.5 |
) |
|
|
(8,982.6 |
) |
|
|
Accumulated other comprehensive loss |
|
|
(62.4 |
) |
|
|
(61.3 |
) |
|
|
Total common shareholders' equity |
|
|
6,151.9 |
|
|
|
6,083.7 |
|
|
|
Non-controlling interests |
|
|
117.5 |
|
|
|
102.0 |
|
|
|
Total equity |
|
|
6,269.4 |
|
|
|
6,185.7 |
|
|
|
Total liabilities and equity |
|
$ |
10,552.9 |
|
|
$ |
10,543.3 |
|
|
|
|
|
|
|
|
|
|
Common shares |
|
|
|
|
|
|
Authorized |
|
Unlimited |
|
|
Unlimited |
|
|
|
Issued and outstanding |
|
|
1,228,982,701 |
|
|
|
1,227,837,974 |
|
|
|
|
|
|
|
|
|
Interim condensed consolidated statements of
operations
| (unaudited, expressed in
millions of U.S. dollars, except per share amounts) |
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
March 31, |
|
March 31, |
|
|
|
|
2024 |
|
2023 |
|
|
Revenue |
|
|
|
|
|
|
Metal sales |
|
$ |
1,081.5 |
|
|
$ |
929.3 |
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
|
|
|
|
Production cost of sales |
|
|
512.9 |
|
|
|
483.9 |
|
|
|
Depreciation, depletion and amortization |
|
|
270.7 |
|
|
|
211.9 |
|
|
|
Total cost of sales |
|
|
783.6 |
|
|
|
695.8 |
|
|
|
Gross profit |
|
|
297.9 |
|
|
|
233.5 |
|
|
|
Other operating expense |
|
|
27.6 |
|
|
|
31.2 |
|
|
|
Exploration and business development |
|
|
41.7 |
|
|
|
34.0 |
|
|
|
General and administrative |
|
|
35.4 |
|
|
|
24.4 |
|
|
|
Operating earnings |
|
|
193.2 |
|
|
|
143.9 |
|
|
|
Other income - net |
|
|
0.1 |
|
|
|
4.4 |
|
|
|
Finance income |
|
|
3.9 |
|
|
|
9.4 |
|
|
|
Finance expense |
|
|
(21.5 |
) |
|
|
(27.5 |
) |
|
|
Earnings before tax |
|
|
175.7 |
|
|
|
130.2 |
|
|
|
Income tax expense - net |
|
|
(69.1 |
) |
|
|
(39.8 |
) |
|
|
Net earnings |
|
$ |
106.6 |
|
|
$ |
90.4 |
|
|
|
Net earnings (loss) attributable to: |
|
|
|
|
|
|
Non-controlling interests |
|
$ |
(0.4 |
) |
|
$ |
0.2 |
|
|
|
Common shareholders |
|
$ |
107.0 |
|
|
$ |
90.2 |
|
|
|
Earnings per share attributable to common
shareholders |
|
|
|
|
|
|
Basic |
|
$ |
0.09 |
|
|
$ |
0.07 |
|
|
|
Diluted |
|
$ |
0.09 |
|
|
$ |
0.07 |
|
|
Interim condensed consolidated statements of cash
flows
| (unaudited, expressed in
millions of U.S. dollars) |
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
|
March 31, |
|
March 31, |
|
|
|
|
|
2024 |
|
2023 |
|
|
Net inflow (outflow) of cash related to the following
activities: |
|
|
|
|
|
|
|
Operating: |
|
|
|
|
|
|
|
Net earnings |
|
|
$ |
106.6 |
|
|
$ |
90.4 |
|
|
|
Adjustments to reconcile net earnings to net cash provided from
operating activities: |
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
|
270.7 |
|
|
|
211.9 |
|
|
|
Finance expense |
|
|
|
21.5 |
|
|
|
27.5 |
|
|
|
Deferred tax expense |
|
|
|
8.6 |
|
|
|
9.0 |
|
|
|
Foreign exchange losses and other |
|
|
|
17.5 |
|
|
|
15.4 |
|
|
|
Reclamation expense |
|
|
|
- |
|
|
|
4.0 |
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable and other assets |
|
|
|
10.3 |
|
|
|
20.0 |
|
|
|
Inventories |
|
|
|
5.9 |
|
|
|
(43.2 |
) |
|
|
Accounts payable and accrued liabilities |
|
|
|
12.1 |
|
|
|
(5.8 |
) |
|
|
Cash flow provided from operating activities |
|
|
|
453.2 |
|
|
|
329.2 |
|
|
|
Income taxes paid |
|
|
|
(78.8 |
) |
|
|
(70.2 |
) |
|
|
Net cash flow provided from operating
activities |
|
|
|
374.4 |
|
|
|
259.0 |
|
|
|
Investing: |
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
|
|
(241.9 |
) |
|
|
(221.2 |
) |
|
|
Interest paid capitalized to property, plant and equipment |
|
|
|
(34.9 |
) |
|
|
(38.3 |
) |
|
|
Net (additions) disposals to long-term investments and other
assets |
|
|
|
(3.1 |
) |
|
|
15.3 |
|
|
|
Increase in restricted cash - net |
|
|
|
(0.5 |
) |
|
|
(0.8 |
) |
|
|
Interest received and other - net |
|
|
|
3.9 |
|
|
|
2.7 |
|
|
|
Net cash flow of continuing operations used in investing
activities |
|
|
|
(276.5 |
) |
|
|
(242.3 |
) |
|
|
Net cash flow of discontinued operations provided from
investing activities |
|
|
|
- |
|
|
|
5.0 |
|
|
|
Financing: |
|
|
|
|
|
|
|
Proceeds from drawdown of debt |
|
|
|
- |
|
|
|
100.0 |
|
|
|
Interest paid |
|
|
|
(18.5 |
) |
|
|
(24.2 |
) |
|
|
Payment of lease liabilities |
|
|
|
(3.4 |
) |
|
|
(15.5 |
) |
|
|
Funding from non-controlling interest |
|
|
|
15.5 |
|
|
|
5.1 |
|
|
|
Dividends paid to common shareholders |
|
|
|
(36.9 |
) |
|
|
(36.8 |
) |
|
|
Other - net |
|
|
|
0.3 |
|
|
|
2.1 |
|
|
|
Net cash flow (used in) provided from financing
activities |
|
|
|
(43.0 |
) |
|
|
30.7 |
|
|
|
Effect of exchange rate changes on cash and cash
equivalents |
|
|
|
(0.4 |
) |
|
|
0.5 |
|
|
|
Increase in cash and cash equivalents |
|
|
|
54.5 |
|
|
|
52.9 |
|
|
|
Cash and cash equivalents, beginning of
period |
|
|
|
352.4 |
|
|
|
418.1 |
|
|
|
Cash and cash equivalents, end of period |
|
|
$ |
406.9 |
|
|
$ |
471.0 |
|
|
|
|
|
|
|
|
|
|
|
Operating Summary |
|
|
Mine |
Period |
Tonnes Ore Mined |
OreProcessed (Milled) |
OreProcessed (Heap Leach) |
Grade(Mill) |
Grade(Heap Leach) |
Recovery(a)(b) |
Gold Eq Production(c) |
Gold Eq Sales(c) |
Productioncost of sales |
Productioncost of
sales/oz(d) |
Cap Ex - sustaining(e) |
Total Cap Ex(e) |
DD&A |
|
|
|
|
('000 tonnes) |
('000 tonnes) |
('000 tonnes) |
(g/t) |
(g/t) |
(%) |
(ounces) |
(ounces) |
($ millions) |
($/ounce) |
($ millions) |
($ millions) |
($ millions) |
|
West Africa |
Tasiast |
Q1 2024 |
2,044 |
2,073 |
- |
2.46 |
- |
91% |
159,199 |
151,014 |
$ |
99.7 |
$ |
660 |
$ |
10.1 |
$ |
79.5 |
$ |
77.9 |
| Q4
2023 |
2,937 |
2,056 |
- |
3.04 |
- |
93% |
160,764 |
171,199 |
$ |
110.4 |
$ |
645 |
$ |
9.7 |
$ |
85.2 |
$ |
70.6 |
| Q3
2023 |
3,486 |
1,796 |
- |
3.10 |
- |
92% |
171,140 |
162,823 |
$ |
108.5 |
$ |
666 |
$ |
12.2 |
$ |
77.3 |
$ |
69.0 |
| Q2
2023 |
1,688 |
1,663 |
- |
3.25 |
- |
93% |
157,844 |
152,564 |
$ |
99.5 |
$ |
652 |
$ |
9.1 |
$ |
81.9 |
$ |
58.6 |
|
Q1 2023 |
1,690 |
1,208 |
- |
3.49 |
- |
91% |
131,045 |
128,479 |
$ |
88.4 |
$ |
688 |
$ |
14.6 |
$ |
64.6 |
$ |
46.2 |
|
Americas |
Paracatu |
Q1 2024 |
14,078 |
15,609 |
- |
0.31 |
- |
79% |
128,273 |
128,110 |
$ |
135.7 |
$ |
1,059 |
$ |
19.6 |
$ |
19.6 |
$ |
46.7 |
| Q4
2023 |
16,865 |
15,279 |
- |
0.35 |
- |
79% |
127,940 |
132,886 |
$ |
144.2 |
$ |
1,085 |
$ |
41.6 |
$ |
41.6 |
$ |
43.3 |
| Q3
2023 |
14,725 |
14,669 |
- |
0.41 |
- |
79% |
172,482 |
167,105 |
$ |
141.2 |
$ |
845 |
$ |
58.4 |
$ |
58.4 |
$ |
53.1 |
| Q2
2023 |
14,199 |
15,104 |
- |
0.42 |
- |
80% |
164,243 |
163,889 |
$ |
135.2 |
$ |
825 |
$ |
39.7 |
$ |
39.7 |
$ |
49.8 |
| Q1
2023 |
8,056 |
15,130 |
- |
0.37 |
- |
79% |
123,334 |
128,344 |
$ |
118.0 |
$ |
919 |
$ |
27.8 |
$ |
27.8 |
$ |
40.4 |
|
La Coipa(f) |
Q1 2024 |
1,035 |
827 |
- |
2.09 |
- |
87% |
71,245 |
71,125 |
$ |
52.1 |
$ |
733 |
$ |
7.2 |
$ |
7.2 |
$ |
50.0 |
| Q4
2023 |
1,591 |
1,188 |
- |
1.92 |
- |
78% |
73,823 |
73,477 |
$ |
52.9 |
$ |
720 |
$ |
7.0 |
$ |
10.9 |
$ |
54.8 |
| Q3
2023 |
1,137 |
1,017 |
- |
1.69 |
- |
81% |
65,975 |
65,856 |
$ |
41.4 |
$ |
629 |
$ |
7.5 |
$ |
15.2 |
$ |
48.3 |
| Q2
2023 |
869 |
971 |
- |
1.62 |
- |
81% |
66,744 |
67,378 |
$ |
43.6 |
$ |
647 |
$ |
19.9 |
$ |
23.3 |
$ |
48.3 |
|
Q1 2023 |
748 |
691 |
- |
1.68 |
- |
88% |
53,596 |
61,780 |
$ |
44.9 |
$ |
727 |
$ |
1.6 |
$ |
25.4 |
$ |
36.4 |
|
Fort
Knox(100%)(g) |
Q1 2024 |
10,037 |
1,850 |
8,778 |
0.67 |
0.24 |
76% |
53,350 |
56,292 |
$ |
82.5 |
$ |
1,466 |
$ |
37.7 |
$ |
78.6 |
$ |
20.5 |
| Q4
2023 |
11,018 |
2,173 |
9,930 |
0.69 |
0.22 |
78% |
84,215 |
81,306 |
$ |
104.3 |
$ |
1,283 |
$ |
50.6 |
$ |
114.3 |
$ |
31.5 |
| Q3
2023 |
6,667 |
1,912 |
5,961 |
0.81 |
0.21 |
78% |
71,611 |
71,616 |
$ |
82.3 |
$ |
1,149 |
$ |
52.1 |
$ |
96.0 |
$ |
24.6 |
| Q2
2023 |
7,624 |
2,075 |
6,837 |
0.82 |
0.24 |
82% |
69,438 |
69,206 |
$ |
79.3 |
$ |
1,146 |
$ |
52.1 |
$ |
90.3 |
$ |
22.1 |
| Q1
2023 |
7,412 |
1,966 |
5,972 |
0.78 |
0.22 |
82% |
65,387 |
65,404 |
$ |
77.6 |
$ |
1,186 |
$ |
38.6 |
$ |
67.8 |
$ |
18.6 |
|
Fort
Knox(attributable)(g) |
Q1 2024 |
10,009 |
1,850 |
8,778 |
0.67 |
0.24 |
76% |
53,350 |
56,292 |
$ |
82.5 |
$ |
1,466 |
$ |
37.7 |
$ |
68.8 |
$ |
20.5 |
| Q4
2023 |
11,014 |
2,173 |
9,930 |
0.69 |
0.22 |
78% |
84,215 |
81,306 |
$ |
104.3 |
$ |
1,283 |
$ |
50.6 |
$ |
100.7 |
$ |
31.5 |
| Q3
2023 |
6,667 |
1,912 |
5,961 |
0.81 |
0.21 |
78% |
71,611 |
71,616 |
$ |
82.3 |
$ |
1,149 |
$ |
52.1 |
$ |
84.5 |
$ |
24.6 |
| Q2
2023 |
7,624 |
2,075 |
6,837 |
0.82 |
0.24 |
82% |
69,438 |
69,206 |
$ |
79.3 |
$ |
1,146 |
$ |
52.1 |
$ |
81.5 |
$ |
22.1 |
| Q1
2023 |
7,412 |
1,966 |
5,972 |
0.78 |
0.22 |
82% |
65,387 |
65,404 |
$ |
77.6 |
$ |
1,186 |
$ |
38.6 |
$ |
58.4 |
$ |
18.6 |
|
Round Mountain |
Q1 2024 |
4,246 |
960 |
3,257 |
1.32 |
0.37 |
73% |
68,352 |
68,169 |
$ |
90.6 |
$ |
1,329 |
$ |
3.7 |
$ |
19.3 |
$ |
47.3 |
| Q4
2023 |
4,666 |
884 |
2,729 |
0.91 |
0.48 |
68% |
55,764 |
56,495 |
$ |
82.6 |
$ |
1,462 |
$ |
4.6 |
$ |
4.8 |
$ |
45.0 |
| Q3
2023 |
8,474 |
911 |
7,644 |
0.75 |
0.38 |
75% |
63,648 |
61,931 |
$ |
93.1 |
$ |
1,503 |
$ |
7.7 |
$ |
7.8 |
$ |
44.1 |
| Q2
2023 |
10,496 |
1,021 |
10,028 |
0.67 |
0.35 |
76% |
57,446 |
57,412 |
$ |
85.5 |
$ |
1,489 |
$ |
10.5 |
$ |
10.5 |
$ |
33.5 |
| Q1
2023 |
5,019 |
878 |
4,367 |
0.81 |
0.44 |
79% |
58,832 |
58,226 |
$ |
96.5 |
$ |
1,657 |
$ |
7.4 |
$ |
7.4 |
$ |
34.6 |
|
Bald Mountain |
Q1 2024 |
1,480 |
- |
1,480 |
- |
0.42 |
nm |
46,980 |
47,241 |
$ |
52.1 |
$ |
1,103 |
$ |
32.4 |
$ |
32.4 |
$ |
27.0 |
| Q4
2023 |
3,894 |
- |
3,918 |
- |
0.47 |
nm |
44,007 |
49,375 |
$ |
57.1 |
$ |
1,156 |
$ |
36.3 |
$ |
38.8 |
$ |
25.0 |
| Q3
2023 |
7,412 |
- |
7,412 |
- |
0.39 |
nm |
40,593 |
41,300 |
$ |
53.9 |
$ |
1,305 |
$ |
20.6 |
$ |
24.9 |
$ |
23.3 |
| Q2
2023 |
4,142 |
- |
4,119 |
- |
0.42 |
nm |
39,321 |
42,181 |
$ |
54.5 |
$ |
1,292 |
$ |
16.5 |
$ |
31.4 |
$ |
25.6 |
|
Q1 2023 |
1,864 |
- |
1,857 |
- |
0.47 |
nm |
33,828 |
47,283 |
$ |
58.0 |
$ |
1,227 |
$ |
6.1 |
$ |
25.2 |
$ |
33.9 |
|
(a) |
|
Due to the nature of heap leach operations, recovery rates at Bald
Mountain cannot be accurately measured on a quarterly basis.
Recovery rates at Fort Knox and Round Mountain represent
mill recovery only. |
|
(b) |
|
"nm" means not meaningful. |
|
(c) |
|
Gold equivalent ounces include
silver ounces produced and sold converted to a gold equivalent
based on the ratio of the average spot market prices for the
commodities for each period. The ratios for the quarters presented
are as follows: Q1 2024: 88.70:1; Q4 2023: 85.00:1; Q3 2023:
81.82:1; Q2 2023: 81.88:1; Q1 2023: 83.82:1. |
|
(d) |
|
“Production cost of sales per
equivalent ounce sold” is defined as production cost of sales
divided by total gold equivalent ounces sold. |
|
(e) |
|
"Total Cap Ex" is as reported as
“Additions to property, plant and equipment” on the interim
condensed consolidated statements of cash flows. "Cap Ex -
sustaining" is a non-GAAP financial measure. The definition and
reconciliation of this non-GAAP financial measure is included on
pages 20 and 21 of this news release. |
|
(f) |
|
La Coipa silver grade and
recovery were as follows: Q1 2024: 87.20 g/t, 58%; Q4 2023: 96.24
g/t, 44%; Q3 2023: 106.70 g/t, 63%; Q2 2023: 109.84 g/t, 56%; Q1
2023: 125.77 g/t, 70%. |
|
(g) |
|
The Fort Knox segment is composed
of Fort Knox and Manh Choh, and comparative results shown are
presented in accordance with the current year’s presentation. Manh
Choh tonnes of ore processed and grade were nil for all periods
presented as production is expected to commence in the third
quarter of 2024. The attributable results for Fort Knox include
100% of Fort Knox and 70% of Manh Choh. |
| |
|
|
Reconciliation of non-GAAP financial measures and
ratios
The Company has included certain non-GAAP
financial measures and ratios in this document. These financial
measures and ratios are not defined under IFRS and should not be
considered in isolation. The Company believes that these financial
measures and ratios, together with financial measures and ratios
determined in accordance with IFRS, provide investors with an
improved ability to evaluate the underlying performance of the
Company. The inclusion of these financial measures and ratios is
meant to provide additional information and should not be used as a
substitute for performance measures prepared in accordance with
IFRS. These financial measures and ratios are not necessarily
standard and therefore may not be comparable to other
issuers.Adjusted Net Earnings Attributable to Common
Shareholders and Adjusted Net Earnings per Share
Adjusted net earnings attributable to common
shareholders and adjusted net earnings per share are non-GAAP
financial measures and ratios which determine the performance of
the Company, excluding certain impacts which the Company believes
are not reflective of the Company’s underlying performance for the
reporting period, such as the impact of foreign exchange gains and
losses, reassessment of prior year taxes and/or taxes otherwise not
related to the current period, impairment charges (reversals),
gains and losses and other one-time costs related to acquisitions,
dispositions and other transactions, and non-hedge derivative gains
and losses. Although some of the items are recurring, the Company
believes that they are not reflective of the underlying operating
performance of its current business and are not necessarily
indicative of future operating results. Management believes that
these measures and ratios, which are used internally to assess
performance and in planning and forecasting future operating
results, provide investors with the ability to better evaluate
underlying performance, particularly since the excluded items are
typically not included in public guidance. However, adjusted net
earnings and adjusted net earnings per share measures and ratios
are not necessarily indicative of net earnings and earnings per
share measures and ratios as determined under IFRS.
The following table provides a reconciliation of
net earnings to adjusted net earnings for the periods
presented:
|
|
|
|
|
|
(unaudited, expressed in millions of U.S. dollars, except per share
amounts) |
Three months ended |
|
March 31, |
|
|
|
2024 |
2023 |
|
|
|
|
|
| Net
earnings attributable to common shareholders - as reported |
$ |
107.0 |
|
$ |
90.2 |
|
| Adjusting
items: |
|
|
|
|
Foreign exchange gains |
|
(3.5 |
) |
|
(3.8 |
) |
|
|
Foreign exchange losses (gains)
on translation of tax basis and foreign exchange on deferred
income taxes within income tax expense |
|
4.0 |
|
|
(13.2 |
) |
|
|
Taxes in respect of prior
periods |
|
8.0 |
|
|
12.0 |
|
|
|
Other(a) |
|
10.5 |
|
|
2.8 |
|
|
|
Tax effects of the above
adjustments |
|
(1.1 |
) |
|
(0.4 |
) |
|
|
|
|
17.9 |
|
|
(2.6 |
) |
| Adjusted
net earnings attributable to common shareholders |
$ |
124.9 |
|
$ |
87.6 |
|
| Weighted
average number of common shares outstanding - Basic |
|
1,228.3 |
|
|
1,225.0 |
|
| Adjusted
net earnings per share |
$ |
0.10 |
|
$ |
0.07 |
|
| Basic
earnings per share attributable to common shareholders - as
reported |
$ |
0.09 |
|
$ |
0.07 |
|
|
|
|
|
|
|
(a) |
|
Other includes various impacts, such as one-time costs at sites,
restructuring costs, and gains and losses on hedges and the sale of
assets, which the Company believes are not reflective of the
Company’s underlying performance for the reporting period. |
|
|
|
|
Attributable Free Cash Flow
Attributable free cash flow is a non-GAAP
financial measure and is defined as net cash flow provided from
operating activities less attributable capital expenditures and
non-controlling interest included in net cash flows provided from
operating activities. The Company believes that this measure, which
is used internally to evaluate the Company’s underlying cash
generation performance and the ability to repay creditors and
return cash to shareholders, provides investors with the ability to
better evaluate the Company’s underlying performance. However, this
measure is not necessarily indicative of operating earnings or net
cash flow provided from operating activities as determined under
IFRS.
The following table provides a reconciliation of
free cash flow for the periods presented:
|
|
|
|
|
(unaudited, expressed in millions of U.S. dollars) |
Three months ended |
|
March 31, |
|
|
2024 |
2023 |
|
|
|
|
|
Net cash flow provided from operating activities - as reported |
$ |
374.4 |
|
$ |
259.0 |
|
| Adjusting
items: |
|
|
|
Attributable(a) capital expenditures |
|
(232.1 |
) |
|
(211.8 |
) |
|
Non-controlling interest(b) cash flow used in operating
activities |
|
3.0 |
|
|
0.6 |
|
|
Attributable(a) free cash flow |
$ |
145.3 |
|
$ |
47.8 |
|
|
|
|
|
See page 21 for details of the endnotes referenced within the
table above.
Adjusted Operating Cash
Flow
Adjusted operating cash flow is a non-GAAP
financial measure and is defined as net cash flow provided from
operating activities excluding certain impacts which the Company
believes are not reflective of the Company’s regular operating cash
flow and excluding changes in working capital. Working capital can
be volatile due to numerous factors, including the timing of tax
payments. The Company uses adjusted operating cash flow internally
as a measure of the underlying operating cash flow performance and
future operating cash flow-generating capability of the Company.
However, the adjusted operating cash flow measure is not
necessarily indicative of net cash flow provided from operating
activities as determined under IFRS.
The following table provides a reconciliation of
adjusted operating cash flow for the periods presented:
|
|
|
|
|
|
(unaudited, expressed in millions of U.S. dollars) |
Three months ended |
|
March 31, |
|
|
|
2024 |
2023 |
|
|
|
|
|
| Net cash
flow provided from operating activities - as reported |
$ |
374.4 |
|
$ |
259.0 |
|
|
|
|
|
|
| Adjusting
items: |
|
|
|
|
Working capital changes: |
|
|
|
|
Accounts receivable and other assets |
|
(10.3 |
) |
|
(20.0 |
) |
|
|
Inventories |
|
(5.9 |
) |
|
43.2 |
|
|
|
Accounts payable and other liabilities, including income taxes
paid |
|
66.7 |
|
|
76.0 |
|
|
|
Total working capital
changes |
|
50.5 |
|
|
99.2 |
|
| Adjusted
operating cash flow |
$ |
424.9 |
|
$ |
358.2 |
|
|
|
|
|
|
See page 21 for details of the endnotes referenced within the
table above.
Production Cost of Sales per Ounce Sold
on a By-Product Basis(l)
Production cost of
sales per ounce sold on a by-product basis is a non-GAAP ratio
which calculates the Company’s non-gold production as a credit
against its per ounce production costs, rather than converting its
non-gold production into gold equivalent ounces and crediting it to
total production, as is the case in co-product accounting.
Management believes that this ratio provides investors with the
ability to better evaluate Kinross’ production cost of sales per
ounce on a comparable basis with other major gold producers who
routinely calculate their cost of sales per ounce using by-product
accounting rather than co-product accounting.
The following table
provides a reconciliation of production cost of sales per ounce
sold on a by-product basis for the periods presented:
|
|
|
|
|
|
(unaudited, expressed in millions of U.S. dollars,except ounces and
production cost of sales per equivalent ounce) |
Three months ended |
|
March 31, |
|
|
|
2024 |
2023 |
|
|
|
|
|
|
Production cost of sales - as reported |
$ |
512.9 |
|
$ |
483.9 |
|
|
Less: silver revenue(c) |
|
|
(39.1 |
) |
|
(54.9 |
) |
|
Production cost of sales net of silver by-product revenue |
$ |
473.8 |
|
$ |
429.0 |
|
|
|
|
|
|
| Gold
ounces sold |
|
503,604 |
|
|
461,696 |
|
| Total
gold equivalent ounces sold |
|
522,400 |
|
|
490,330 |
|
|
Production cost of sales per equivalent ounce sold(d) |
$ |
982 |
|
$ |
987 |
|
|
Production cost of sales per ounce sold on a by-product basis |
$ |
941 |
|
$ |
929 |
|
|
|
|
|
|
See page 21 for details of the endnotes
referenced within the table above.
All-In Sustaining
Cost(l) and Attributable All-In
Cost per Ounce Sold on a By-Product Basis
All-in sustaining cost and attributable all-in
cost per ounce sold on a by-product basis are non-GAAP financial
measures and ratios, as applicable, calculated based on guidance
published by the World Gold Council (“WGC”). The WGC is a market
development organization for the gold industry and is an
association whose membership comprises leading gold mining
companies including Kinross. Although the WGC is not a mining
industry regulatory organization, it worked closely with its member
companies to develop these metrics. Adoption of the all-in
sustaining cost and all-in cost metrics is voluntary and not
necessarily standard, and therefore, these measures and ratios
presented by the Company may not be comparable to similar measures
and ratios presented by other issuers. The Company believes that
the all-in sustaining cost and all-in cost measures complement
existing measures and ratios reported by Kinross.
All-in sustaining cost includes both operating
and capital costs required to sustain gold production on an ongoing
basis. The value of silver sold is deducted from the total
production cost of sales as it is considered residual production,
i.e. a by-product. Sustaining operating costs represent
expenditures incurred at current operations that are considered
necessary to maintain current production. Sustaining capital
represents capital expenditures at existing operations comprising
mine development costs, including capitalized stripping, and
ongoing replacement of mine equipment and other capital facilities,
and does not include capital expenditures for major growth projects
or enhancement capital for significant infrastructure improvements
at existing operations.
All-in cost is comprised of all-in sustaining
cost as well as operating expenditures incurred at locations with
no current operation, or costs related to other non-sustaining
activities, and capital expenditures for major growth projects or
enhancement capital for significant infrastructure improvements at
existing operations.
All-in sustaining cost and attributable all-in
cost per ounce sold on a by-product basis are calculated by
adjusting production cost of sales, as reported on the interim
condensed consolidated statements of operations, as follows:
|
|
|
|
|
| (unaudited,
expressed in millions of U.S. dollars, except ounces and costs per
ounce) |
Three months ended |
|
March 31, |
|
|
|
2024 |
2023 |
|
|
|
|
|
|
Production cost of sales - as reported |
$ |
512.9 |
|
$ |
483.9 |
|
| Less:
silver revenue(c) |
|
(39.1 |
) |
|
(54.9 |
) |
|
Production cost of sales net of silver by-product revenue |
$ |
473.8 |
|
$ |
429.0 |
|
| Adjusting
items: |
|
|
|
|
General and administrative(e) |
|
30.7 |
|
|
24.4 |
|
|
|
Other operating expense -
sustaining(f) |
|
0.8 |
|
|
6.5 |
|
|
|
Reclamation and remediation -
sustaining(g) |
|
18.3 |
|
|
14.3 |
|
|
|
Exploration and business
development - sustaining(h) |
|
8.7 |
|
|
6.6 |
|
|
|
Additions to property, plant
and equipment - sustaining(i) |
|
109.3 |
|
|
96.6 |
|
|
|
Lease payments -
sustaining(j) |
|
3.4 |
|
|
15.2 |
|
| All-in
Sustaining Cost on a by-product basis |
$ |
645.0 |
|
$ |
592.6 |
|
| Adjusting
items on an attributable(a) basis: |
|
|
|
|
Other operating expense -
non-sustaining(f) |
|
10.1 |
|
|
8.7 |
|
|
|
Reclamation and remediation -
non-sustaining(g) |
|
1.7 |
|
|
1.9 |
|
|
|
Exploration and business
development - non-sustaining(h) |
|
32.9 |
|
|
27.6 |
|
|
|
Additions to property, plant
and equipment - non-sustaining(i) |
|
122.8 |
|
|
115.2 |
|
|
|
Lease payments -
non-sustaining(j) |
|
- |
|
|
0.3 |
|
| All-in
Cost on a by-product basis - attributable(a) |
$ |
812.5 |
|
$ |
746.3 |
|
| Gold
ounces sold |
|
503,604 |
|
|
461,696 |
|
|
Production cost of sales per equivalent ounce sold(d) |
$ |
982 |
|
$ |
987 |
|
| All-in
sustaining cost per ounce sold on a by-product basis |
$ |
1,281 |
|
$ |
1,284 |
|
|
Attributable(a) all-in cost per ounce sold on a by-product
basis |
$ |
1,613 |
|
$ |
1,616 |
|
|
|
|
|
|
See page 21 for details of the endnotes referenced within the
table above.
The Company also assesses its all-in sustaining
cost and attributable all-in cost on a gold equivalent ounce basis.
Under these non-GAAP financial measures and ratios, the Company’s
production of silver is converted into gold equivalent ounces and
credited to total production.
All-In Sustaining
Cost(l) and Attributable All-In
Cost per Equivalent Ounce Sold
The Company also assesses its all-in sustaining
cost and attributable all-in cost on a gold equivalent ounce basis.
Under these non-GAAP financial measures and ratios, the Company’s
production of silver is converted into gold equivalent ounces and
credited to total production.
All-in sustaining cost and attributable all-in
cost per equivalent ounce sold are calculated by adjusting
production cost of sales, as reported on the interim condensed
consolidated statements of operations, as follows:
|
|
|
|
|
| (unaudited,
expressed in millions of U.S. dollars,except ounces and costs per
ounce) |
Three months ended |
|
March 31, |
|
|
|
2024 |
2023 |
|
|
|
|
|
|
Production cost of sales - as reported |
$ |
512.9 |
$ |
483.9 |
| Adjusting
items: |
|
|
|
|
General and administrative(e) |
|
30.7 |
|
24.4 |
|
|
Other operating expense -
sustaining(f) |
|
0.8 |
|
6.5 |
|
|
Reclamation and remediation -
sustaining(g) |
|
18.3 |
|
14.3 |
|
|
Exploration and business
development - sustaining(h) |
|
8.7 |
|
6.6 |
|
|
Additions to property, plant
and equipment - sustaining(i) |
|
109.3 |
|
96.6 |
|
|
Lease payments -
sustaining(j) |
|
3.4 |
|
15.2 |
| All-in
Sustaining Cost |
$ |
684.1 |
$ |
647.5 |
| Adjusting
items on an attributable(a)basis: |
|
|
|
|
Other operating expense -
non-sustaining(f) |
|
10.1 |
|
8.7 |
|
|
Reclamation and remediation -
non-sustaining(g) |
|
1.7 |
|
1.9 |
|
|
Exploration and business
development - non-sustaining(h) |
|
32.9 |
|
27.6 |
|
|
Additions to property, plant
and equipment - non-sustaining(i) |
|
122.8 |
|
115.2 |
|
|
Lease payments -
non-sustaining(j) |
|
- |
|
0.3 |
| All-in
Cost - attributable(a) |
$ |
851.6 |
$ |
801.2 |
| Gold
equivalent ounces sold |
|
522,400 |
|
490,330 |
|
Production cost of sales per equivalent ounce sold(d) |
$ |
982 |
$ |
987 |
| All-in
sustaining cost per equivalent ounce sold |
$ |
1,310 |
$ |
1,321 |
|
Attributable(a)all-in cost per equivalent ounce sold |
$ |
1,630 |
$ |
1,634 |
|
|
|
|
|
See page 21 for details of the endnotes referenced within the
table above.
Capital Expenditures and Attributable
Capital Expenditures
Capital expenditures are classified as either
sustaining capital expenditures or non-sustaining capital
expenditures, depending on the nature of the expenditure.
Sustaining capital expenditures typically represent capital
expenditures at existing operations including capitalized
exploration costs and capitalized stripping unless related to major
projects, ongoing replacement of mine equipment and other capital
facilities and other capital expenditures and is calculated as
total additions to property, plant and equipment (as reported on
the interim condensed consolidated statements of cash flows), less
non-sustaining capital expenditures. Non-sustaining capital
expenditures represent capital expenditures for major projects,
including major capital stripping projects at existing operations
that are expected to materially benefit the operation, as well as
enhancement capital for significant infrastructure improvements at
existing operations. Management believes the distinction between
sustaining capital expenditures and non-sustaining expenditures is
a useful indicator of the purpose of capital expenditures and this
distinction is an input into the calculation of all-in sustaining
costs per ounce and attributable all-in costs per ounce. The
categorization of sustaining capital expenditures and
non-sustaining capital expenditures is consistent with the
definitions under the WGC all-in cost standard. Sustaining capital
expenditures and non-sustaining capital expenditures are not
defined under IFRS, however, the sum of these two measures total to
additions to property, plant and equipment as disclosed under IFRS
on the interim condensed consolidated statements of cash flows.
Additions to property, plant and equipment per
the statement of cash flow includes 100% of capital expenditures
for Manh Choh. Attributable capital expenditures includes Kinross'
70% share of capital expenditures for Manh Choh. Management
believes this to be a useful indicator of Kinross’ cash resources
utilized for capital expenditures.
The following table provides a reconciliation of
the classification of capital expenditures for the periods
presented:
|
(unaudited, expressed in millions of U.S. dollars) |
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2024 |
Tasiast(Mauritania) |
Paracatu (Brazil) |
La Coipa(Chile) |
Fort Knox(k)(USA) |
Round Mountain(USA) |
Bald Mountain(USA) |
TotalUSA |
|
Other |
Total |
|
Sustaining capital expenditures |
$ |
10.1 |
$ |
19.6 |
$ |
7.2 |
$ |
37.7 |
|
$ |
3.7 |
$ |
32.4 |
$ |
73.8 |
|
|
$ |
(1.4 |
) |
$ |
109.3 |
|
|
Non-sustaining capital expenditures |
|
69.4 |
|
- |
|
- |
|
40.9 |
|
|
15.6 |
|
- |
|
56.5 |
|
|
|
6.7 |
|
|
132.6 |
|
|
Additions to property, plant and equipment - per cash flow |
$ |
79.5 |
$ |
19.6 |
$ |
7.2 |
$ |
78.6 |
|
$ |
19.3 |
$ |
32.4 |
$ |
130.3 |
|
|
$ |
5.3 |
|
$ |
241.9 |
|
| Less:
Non-controlling interest(b) |
$ |
- |
$ |
- |
$ |
- |
$ |
(9.8 |
) |
$ |
- |
$ |
- |
$ |
(9.8 |
) |
|
$ |
- |
|
$ |
(9.8 |
) |
|
Attributable(a)capital expenditures |
$ |
79.5 |
$ |
19.6 |
$ |
7.2 |
$ |
68.8 |
|
$ |
19.3 |
$ |
32.4 |
$ |
120.5 |
|
|
$ |
5.3 |
|
$ |
232.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
Sustaining capital expenditures |
$ |
14.6 |
$ |
27.8 |
$ |
1.6 |
$ |
38.6 |
|
$ |
7.4 |
$ |
6.1 |
$ |
52.1 |
|
|
$ |
0.4 |
|
$ |
96.5 |
|
|
Non-sustaining capital expenditures |
|
50.0 |
|
- |
|
23.8 |
|
29.2 |
|
|
- |
|
19.1 |
|
48.3 |
|
|
|
2.6 |
|
|
124.7 |
|
|
Additions to property, plant and equipment - per cash flow |
$ |
64.6 |
$ |
27.8 |
$ |
25.4 |
$ |
67.8 |
|
$ |
7.4 |
$ |
25.2 |
$ |
100.4 |
|
|
$ |
3.0 |
|
$ |
221.2 |
|
| Less:
Non-controlling interest(b) |
$ |
- |
$ |
- |
$ |
- |
$ |
(9.4 |
) |
$ |
- |
$ |
- |
$ |
(9.4 |
) |
|
$ |
- |
|
$ |
(9.4 |
) |
|
Attributable(a) capital expenditures |
$ |
64.6 |
$ |
27.8 |
$ |
25.4 |
$ |
58.4 |
|
$ |
7.4 |
$ |
25.2 |
$ |
91.0 |
|
|
$ |
3.0 |
|
$ |
211.8 |
|
See page 21 for details of the endnotes referenced within the
table above.
Endnotes
|
(a) |
|
“Attributable” includes Kinross’ share of Manh Choh (70%) free cash
flow, costs and capital expenditures. |
|
(b) |
|
“Non-controlling interest” represents the non-controlling interest
portion in Manh Choh (30%) and other subsidiaries for which the
Company’s interest is less than 100% for cash flow from operating
activities and capital expenditures. |
|
(c) |
|
“Silver revenue” represents the portion of metal sales realized
from the production of the secondary or by-product metal (i.e.
silver). Revenue from the sale of silver, which is produced as a
by-product of the process used to produce gold, effectively reduces
the cost of gold production. |
|
(d) |
|
“Production cost of sales per equivalent ounce sold” is defined as
production cost of sales divided by total gold equivalent ounces
sold. |
|
(e) |
|
“General and administrative” expenses are as reported on the
interim condensed consolidated statements of operations. General
and administrative expenses are considered sustaining costs as they
are required to be absorbed on a continuing basis for the effective
operation and governance of the Company. |
|
(f) |
|
“Other operating expense – sustaining” is calculated as “Other
operating expense” as reported on the interim condensed
consolidated statements of operations, less other operating and
reclamation and remediation expenses related to non-sustaining
activities as well as other items not reflective of the underlying
operating performance of our business. Other operating expenses are
classified as either sustaining or non-sustaining based on the type
and location of the expenditure incurred. The majority of other
operating expenses that are incurred at existing operations are
considered costs necessary to sustain operations, and are therefore
classified as sustaining. Other operating expenses incurred at
locations where there is no current operation or related to other
non-sustaining activities are classified as non-sustaining. |
|
(g) |
|
“Reclamation and remediation - sustaining” is calculated as current
period accretion related to reclamation and remediation obligations
plus current period amortization of the corresponding reclamation
and remediation assets, and is intended to reflect the periodic
cost of reclamation and remediation for currently operating mines.
Reclamation and remediation costs for development projects or
closed mines are excluded from this amount and classified as
non-sustaining. |
|
(h) |
|
“Exploration and business development – sustaining” is calculated
as “Exploration and business development” expenses as reported on
the interim condensed consolidated statements of operations, less
non-sustaining exploration and business development expenses.
Exploration expenses are classified as either sustaining or
non-sustaining based on a determination of the type and location of
the exploration expenditure. Exploration expenditures within the
footprint of operating mines are considered costs required to
sustain current operations and so are included in sustaining costs.
Exploration expenditures focused on new ore bodies near existing
mines (i.e. brownfield), new exploration projects (i.e. greenfield)
or for other generative exploration activity not linked to existing
mining operations are classified as non-sustaining. Business
development expenses are classified as either sustaining or
non-sustaining based on a determination of the type of expense and
requirement for general or growth related operations. |
|
(i) |
|
“Additions to property, plant and equipment – sustaining” and
non-sustaining are as presented on pages 20 and 21. Non-sustaining
capital expenditures included in the calculation of attributable
all-in-cost includes Kinross’ share of Manh Choh (70%) costs. |
|
(j) |
|
“Lease payments – sustaining” represents the majority of lease
payments as reported on the interim condensed consolidated
statements of cash flows and is made up of the principal and
financing components of such cash payments, less non-sustaining
lease payments. Lease payments for development projects or closed
mines are classified as non-sustaining. |
|
(k) |
|
The Fort Knox segment is composed of Fort Knox and Manh Choh for
all periods presented. |
|
(l) |
|
As production from Manh Choh is expected to commence in the third
quarter of 2024, production cost of sales and attributable all-in
sustaining cost figures and ratios for Manh Choh are nil for all
periods presented. As a result, production cost of sales and all-in
sustaining cost figures and ratios are equal to attributable
production cost of sales and attributable all-in sustaining cost
figures and ratios, as applicable. |
| |
|
|
APPENDIX A
Recent LP zone assay results
|
Hole ID |
|
From (m) |
To (m) |
Width (m) |
True Width (m) |
Au (g/t) |
Target |
|
BR-695C1A |
|
1,324.7 |
1,333.0 |
8.3 |
7.3 |
5.35 |
Yuma |
|
BR-695C1A |
Including |
1,324.7 |
1,331.7 |
7.0 |
6.2 |
6.24 |
|
|
BR-695C1A |
|
1,441.2 |
1,444.2 |
3.0 |
2.6 |
0.58 |
|
|
BR-695C1A |
|
1,469.0 |
1,517.5 |
48.5 |
42.7 |
0.86 |
|
|
BR-695C1A |
Including |
1,502.6 |
1,506.3 |
3.7 |
2.8 |
4.49 |
|
|
BR-695C1A |
|
1,524.5 |
1,537.8 |
13.3 |
11.3 |
0.81 |
|
|
BR-695C2 |
|
1,460.3 |
1,463.3 |
3.0 |
2.7 |
0.61 |
Yuma |
|
BR-695C2 |
|
1,477.9 |
1,482.6 |
4.7 |
4.2 |
0.58 |
|
|
BR-695C2 |
|
1,509.0 |
1,521.4 |
12.4 |
11.2 |
0.82 |
|
|
BR-695C2 |
|
1,532.5 |
1,536.1 |
3.6 |
3.2 |
1.08 |
|
|
BR-695C3 |
No Significant Intersections |
Yuma |
|
BR-708AC1B |
|
1,271.7 |
1,276.7 |
5.0 |
4.5 |
0.64 |
Yauro |
|
BR-708AC1B |
|
1,319.9 |
1,323.7 |
3.8 |
3.4 |
0.50 |
|
|
BR-708AC1B |
|
1,376.2 |
1,441.7 |
65.5 |
59.0 |
0.96 |
|
|
BR-708AC1B |
Including |
1,438.7 |
1,441.1 |
2.4 |
2.0 |
11.41 |
|
|
BR-708AC2 |
No Significant Intersections |
Yauro |
|
BR-770C1 |
|
541.3 |
544.9 |
3.6 |
3.0 |
2.13 |
Yauro |
|
BR-770C1 |
|
1,229.9 |
1,236.9 |
6.9 |
5.8 |
1.60 |
|
|
BR-770C1 |
|
1,293.5 |
1,297.1 |
3.6 |
3.0 |
1.13 |
|
|
BR-770C1 |
|
1,304.0 |
1,307.0 |
3.0 |
2.5 |
1.88 |
|
|
BR-770C2B |
No Significant Intersections |
Yauro |
|
BR-799DC1 |
|
1,566.7 |
1,573.7 |
7.0 |
5.2 |
0.91 |
Bruma |
|
BR-799DC1 |
|
1,584.5 |
1,591.9 |
7.5 |
5.6 |
0.61 |
|
|
BR-843AC2 |
|
1,189.5 |
1,192.5 |
3.0 |
2.3 |
1.19 |
Yuma |
|
BR-843AC2 |
|
1,245.0 |
1,248.0 |
3.0 |
2.3 |
0.33 |
|
|
BR-843AC2 |
|
1,316.4 |
1,319.4 |
3.0 |
2.6 |
0.48 |
|
|
BR-843AC2 |
|
1,321.7 |
1,325.3 |
3.5 |
2.7 |
0.39 |
|
|
BR-843AC2 |
|
1,335.5 |
1,347.3 |
11.8 |
8.9 |
2.91 |
|
|
BR-843AC2 |
Including |
1,337.8 |
1,340.5 |
2.7 |
2.4 |
9.66 |
|
|
BR-843AC2 |
|
1,365.5 |
1,373.1 |
7.6 |
6.7 |
0.91 |
|
|
BR-843AC2 |
|
1,376.5 |
1,379.5 |
3.0 |
2.7 |
0.55 |
|
|
BR-843AC3 |
|
1,256.3 |
1,259.8 |
3.5 |
2.7 |
0.68 |
Yuma |
|
BR-843AC3 |
|
1,354.7 |
1,395.0 |
40.3 |
36.3 |
5.65 |
|
|
BR-843AC3 |
|
1,377.4 |
1,388.8 |
11.3 |
10.2 |
18.59 |
|
|
BR-843AC3 |
|
1,509.7 |
1,513.7 |
4.0 |
3.5 |
3.39 |
|
|
BR-844C2B |
|
1,444.1 |
1,450.2 |
6.1 |
5.4 |
0.81 |
Bruma |
|
BR-844C2B |
|
1,500.9 |
1,527.0 |
26.2 |
23.0 |
0.52 |
|
|
BR-844C3A |
|
1,436.8 |
1,440.0 |
3.2 |
2.8 |
1.08 |
Bruma |
|
BR-844C3A |
|
1,502.0 |
1,509.1 |
7.1 |
6.1 |
0.95 |
|
|
BR-844C3A |
|
1,518.0 |
1,530.0 |
12.0 |
10.2 |
0.65 |
|
|
BR-847 |
|
934.7 |
950.0 |
15.3 |
13.0 |
2.08 |
Discovery |
|
BR-847 |
Including |
934.7 |
937.5 |
2.8 |
2.4 |
5.21 |
|
|
BR-847 |
|
975.0 |
992.5 |
17.5 |
14.9 |
0.85 |
|
|
BR-847 |
|
998.8 |
1,001.8 |
3.0 |
2.6 |
0.48 |
|
|
BR-847 |
|
1,027.2 |
1,036.1 |
8.9 |
7.8 |
1.54 |
|
|
BR-847 |
|
1,048.5 |
1,051.5 |
3.0 |
2.7 |
0.35 |
|
|
BR-847 |
|
1,052.9 |
1,080.0 |
27.1 |
24.4 |
1.38 |
|
|
BR-847 |
Including |
1,063.6 |
1,066.3 |
2.7 |
2.4 |
5.53 |
|
|
BR-848 |
|
1,015.3 |
1,024.8 |
9.5 |
7.9 |
0.70 |
Bruma |
|
BR-848 |
|
1,031.2 |
1,054.3 |
23.1 |
19.4 |
0.51 |
|
|
BR-848 |
|
1,095.4 |
1,113.7 |
18.3 |
15.3 |
0.61 |
|
|
BR-849 |
|
867.0 |
872.4 |
5.4 |
4.3 |
0.91 |
Bruma |
|
BR-849 |
|
884.5 |
897.5 |
13.1 |
10.4 |
0.70 |
|
|
BR-849 |
|
916.0 |
920.9 |
4.9 |
4.0 |
0.95 |
|
|
BR-851 |
No Significant Intersections |
Viggo |
|
BR-853 |
|
469.9 |
474.5 |
4.6 |
3.8 |
1.34 |
Auro |
|
BR-853 |
|
665.5 |
668.5 |
3.0 |
2.3 |
0.42 |
|
|
BR-854A |
|
701.5 |
706.0 |
4.5 |
4.0 |
1.13 |
Auro |
|
BR-854A |
|
874.0 |
880.1 |
6.0 |
5.3 |
4.79 |
|
|
BR-854A |
Including |
878.5 |
880.1 |
1.5 |
1.4 |
17.73 |
|
|
BR-855 |
|
810.2 |
814.5 |
4.4 |
3.8 |
1.63 |
Discovery |
|
BR-856A |
No Significant Intersections |
Discovery |
|
BR-870C5B |
|
1,229.0 |
1,232.0 |
3.0 |
2.6 |
0.39 |
Yuma |
|
BR-870C5B |
|
1,313.5 |
1,319.0 |
5.5 |
4.7 |
0.68 |
|
|
BR-870C5B |
|
1,349.2 |
1,353.0 |
3.8 |
3.3 |
0.51 |
|
|
BR-870C5B |
|
1,366.3 |
1,380.5 |
14.2 |
12.2 |
1.53 |
|
|
BR-871 |
|
1,173.5 |
1,194.7 |
21.3 |
18.3 |
0.36 |
Yuma |
|
BR-872 |
|
990.6 |
997.4 |
6.8 |
6.1 |
0.42 |
Yuma |
|
BR-872 |
|
1,005.8 |
1,010.3 |
4.5 |
3.7 |
0.80 |
|
|
BR-872 |
|
1,017.2 |
1,033.5 |
16.3 |
12.9 |
0.54 |
|
|
BR-882 |
|
953.0 |
957.5 |
4.5 |
3.7 |
0.45 |
Auro |
|
BR-882 |
|
1,015.2 |
1,022.4 |
7.2 |
6.1 |
25.71 |
|
|
BR-882 |
Including |
1,017.5 |
1,019.4 |
1.9 |
1.6 |
95.27 |
|
|
BR-884 |
|
716.9 |
722.8 |
5.9 |
4.9 |
2.56 |
Auro |
|
BR-884 |
Including |
720.1 |
722.8 |
2.6 |
2.3 |
4.55 |
|
|
BR-884 |
|
801.4 |
805.9 |
4.5 |
3.9 |
0.83 |
|
|
BR-885 |
|
714.1 |
715.5 |
1.4 |
1.1 |
26.60 |
Yuma |
|
BR-885 |
|
871.4 |
883.2 |
11.9 |
9.4 |
1.36 |
|
|
BR-885 |
|
914.1 |
922.7 |
8.5 |
6.8 |
0.73 |
|
|
BR-886 |
|
1,060.5 |
1,070.7 |
10.2 |
8.0 |
0.39 |
Yuma |
|
BR-886 |
|
1,078.2 |
1,085.4 |
7.3 |
5.7 |
2.80 |
|
|
BR-886 |
Including |
1,082.4 |
1,084.5 |
2.2 |
1.7 |
7.86 |
|
|
BR-886 |
|
1,131.1 |
1,134.2 |
3.1 |
2.7 |
1.26 |
|
|
BR-886 |
|
1,141.7 |
1,160.7 |
19.0 |
16.9 |
0.76 |
|
|
BR-886 |
|
1,170.0 |
1,175.8 |
5.8 |
4.8 |
1.33 |
|
|
BR-886 |
|
1,184.7 |
1,188.0 |
3.3 |
2.7 |
0.49 |
|
|
BR-886 |
|
1,231.2 |
1,231.7 |
0.5 |
0.4 |
44.80 |
|
|
BR-891 |
|
432.0 |
435.0 |
3.0 |
2.5 |
1.07 |
Discovery |
|
BR-891 |
|
1,096.0 |
1,111.0 |
15.1 |
12.3 |
1.44 |
|
|
BR-891 |
Including |
1,096.6 |
1,100.1 |
3.5 |
2.9 |
3.00 |
|
|
BR-891 |
|
1,117.5 |
1,125.0 |
7.5 |
6.2 |
0.82 |
|
|
BR-891 |
|
1,137.0 |
1,141.0 |
4.0 |
3.3 |
0.52 |
|
|
BR-891 |
|
1,194.0 |
1,197.0 |
3.0 |
2.5 |
0.40 |
|
|
BR-891 |
|
1,242.3 |
1,308.4 |
66.1 |
54.2 |
0.42 |
|
|
BR-900B |
|
1,214.6 |
1,223.6 |
9.0 |
7.4 |
0.73 |
Yauro |
|
DL-131C4 |
|
929.2 |
934.3 |
5.1 |
4.3 |
1.24 |
Hinge |
|
DL-131C5 |
No Significant Intersections |
Hinge |
|
DL-131C6 |
No Significant Intersections |
Hinge |
|
DL-131C6W |
No Significant Intersections |
Hinge |
APPENDIX B
Great Bear: LP long section demonstrating potential for
extension of a high-grade underground resource.
An infographic accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/12d656a2-96da-42d9-ac04-3da030e75ce6
Composites generated from drill intersections received since the
February 14, 2024, news release includes assays from 29 fully
assayed drill holes at the LP zone and 4 fully assayed drill
holes at the Hinge and Limb zone. Composites are generated using
0.3 g/t minimum grade, maximum linear internal dilution of 5.0 m,
and allows short high-grade intervals greater than 8 GXM to be
retained. Results are preliminary in nature and are subject to
on-going QA/QC. For full list of significant, composited assay
results, see Appendix A.
APPENDIX C
Round Mountain Phase X drilling: High-grade zones encountered
between portals and targeted mineralization.
An infographic accompanying this announcement is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/bc9fd7a8-a1f1-45cc-bea5-8119f4ee672c
Cautionary statement on forward-looking
information
All statements, other than statements of
historical fact, contained or incorporated by reference in this
news release including, but not limited to, any information as to
the future financial or operating performance of Kinross,
constitute “forward-looking information” or “forward-looking
statements” within the meaning of certain 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 news
release. Forward-looking statements contained in this news release,
include, but are not limited to, those under the headings (or
headings that include) “2024 first-quarter highlights”, “CEO
commentary”, “Balance Sheet”, and “Development Projects and
Exploration”, as well as statements with respect to our guidance
for production, cost guidance, including production costs of sales,
all-in sustaining cost of sales, and capital expenditures;
statements with respect to our guidance for cash flow and free cash
flow; the declaration, payment and sustainability of the Company’s
dividends; identification of additional resources and reserves or
the conversion of resources to reserves; the Company’s liquidity;
the Company’s plan to reduce debt; the schedules budgets, and
forecast economics for the Company’s development projects; budgets
for and future prospects for exploration, development and operation
at the Company’s operations and projects, including the Great Bear
project; potential mine life extensions at the Company’s
operations; the Company’s balance sheet and liquidity outlook, as
well as references to other possible events including, the future
price of gold and silver, costs of production, operating costs;
price inflation; capital expenditures, costs and timing of the
development of projects and new deposits, estimates and the
realization of such estimates (such as mineral or gold reserves and
resources or mine life), success of exploration, development and
mining, currency fluctuations, capital requirements, project
studies, government regulation, permit applications, environmental
risks and proceedings, and resolution of pending litigation. The
words “advance”, “continue”, “expects”, “focus”, “forecast”,
“guidance”, “on plan”, “on track”, “opportunity”, “plan”,
“potential”, “priority”, “prospect”, “target” or variations of or
similar such words and phrases or statements that certain actions,
events or results may, could, should or will be achieved, received
or taken, or will occur or result and similar such 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. The
estimates, models and assumptions of Kinross referenced, contained
or incorporated by reference in this news release, which may prove
to be incorrect, include, but are not limited to, the various
assumptions set forth herein and in our Management’s Discussion and
Analysis (“MD&A”) for the year ended December 31, 2023, and the
Annual Information Form dated March 27, 2024 as well as: (1) there
being no significant disruptions affecting the operations of the
Company, whether due to extreme weather events (including, without
limitation, excessive snowfall, excessive or lack of rainfall, in
particular, the potential for further production curtailments at
Paracatu resulting from insufficient rainfall and the operational
challenges at Fort Knox and Bald Mountain resulting from excessive
rainfall or snowfall, which can impact costs and/or production) and
other or related natural disasters, labour disruptions (including
but not limited to strikes or workforce reductions), supply
disruptions, power disruptions, damage to equipment, pit wall
slides or otherwise; (2) permitting, development, operations and
production from the Company’s operations and development projects
being consistent with Kinross’ current expectations including,
without limitation: the maintenance of existing permits and
approvals and the timely receipt of all permits and authorizations
necessary for the operation of Tasiast; water and power supply and
continued operation of the tailings reprocessing facility at
Paracatu; permitting of the Great Bear project (including the
consultation process with Indigenous groups), permitting and
development of the Lobo-Marte project; in each case in a manner
consistent with the Company’s expectations; and the successful
completion of exploration consistent with the Company’s
expectations at the Company’s projects; (3) political and legal
developments in any jurisdiction in which the Company operates
being consistent with its current expectations including, without
limitation, restrictions or penalties imposed, or actions taken, by
any government, including but not limited to amendments to the
mining laws, and potential power rationing and tailings facility
regulations in Brazil (including those related to financial
assurance requirements), potential amendments to water laws and/or
other water use restrictions and regulatory actions in Chile, new
dam safety regulations, potential amendments to minerals and mining
laws and energy levies laws, new regulations relating to work
permits, potential amendments to customs and mining laws (including
but not limited to amendments to the VAT) and the potential
application of the tax code in Mauritania, potential amendments to
and enforcement of tax laws in Mauritania (including, but not
limited to, the interpretation, implementation, application and
enforcement of any such laws and amendments thereto), potential
third party legal challenges to existing permits, and the impact of
any trade tariffs being consistent with Kinross’ current
expectations; (4) the completion of studies, including scoping
studies, preliminary economic assessments, pre-feasibility or
feasibility studies, on the timelines currently expected and the
results of those studies being consistent with Kinross’ current
expectations; (5) the exchange rate between the Canadian dollar,
Brazilian real, Chilean peso, Mauritanian ouguiya and the U.S.
dollar being approximately consistent with current levels; (6)
certain price assumptions for gold and silver; (7) prices for
diesel, natural gas, fuel oil, electricity and other key supplies
being approximately consistent with the Company’s expectations; (8)
attributable production and cost of sales forecasts for the Company
meeting expectations; (9) the accuracy of the current mineral
reserve and mineral resource estimates of the Company and Kinross’
analysis thereof being consistent with expectations (including but
not limited to ore tonnage and ore grade estimates), future mineral
resource and mineral reserve estimates being consistent with
preliminary work undertaken by the Company, mine plans for the
Company’s current and future mining operations, and the Company’s
internal models; (10) labour and materials costs increasing on a
basis consistent with Kinross’ current expectations; (11) the terms
and conditions of the legal and fiscal stability agreements for
Tasiast being interpreted and applied in a manner consistent with
their intent and Kinross’ expectations and without material
amendment or formal dispute (including without limitation the
application of tax, customs and duties exemptions and royalties);
(12) asset impairment potential; (13) the regulatory and
legislative regime regarding mining, electricity production and
transmission (including rules related to power tariffs) in Brazil
being consistent with Kinross’ current expectations; (14) access to
capital markets, including but not limited to maintaining our
current credit ratings consistent with the Company’s current
expectations; (15) potential direct or indirect operational impacts
resulting from infectious diseases or pandemics; (16) changes in
national and local government legislation or other government
actions, including the Canadian federal impact assessment regime;
(17) litigation, regulatory proceedings and audits, and the
potential ramifications thereof, being concluded in a manner
consistent with the Corporation’s expectations (including without
limitation litigation in Chile relating to the alleged damage of
wetlands and the scope of any remediation plan or other
environmental obligations arising therefrom); (18) the Company’s
financial results, cash flows and future prospects being consistent
with Company expectations in amounts sufficient to permit sustained
dividend payments; and (19) the impacts of detected pit wall
instability at Round Mountain and Bald Mountain being consistent
with the Company’s expectations. Known and unknown factors could
cause actual results to differ materially from those projected in
the forward-looking statements. Such factors include, but are not
limited to: the inaccuracy of any of the foregoing assumptions;
fluctuations in the currency markets; fluctuations in the spot and
forward price of gold or certain other commodities (such as fuel
and electricity); price inflation of goods and services; changes in
the discount rates applied to calculate the present value of net
future cash flows based on country-specific real weighted average
cost of capital; changes in the market valuations of peer group
gold producers and the Company, and the resulting impact on market
price to net asset value multiples; changes in various market
variables, such as interest rates, foreign exchange rates, gold or
silver prices and lease rates, or global fuel prices, that could
impact the mark-to-market value of outstanding derivative
instruments and ongoing payments/receipts under any financial
obligations; risks arising from holding derivative instruments
(such as credit risk, market liquidity risk and mark-to-market
risk); changes in national and local government legislation,
taxation (including but not limited to income tax, advance income
tax, stamp tax, withholding tax, capital tax, tariffs, value-added
or sales tax, capital outflow tax, capital gains tax, windfall or
windfall profits tax, production royalties, excise tax,
customs/import or export taxes/duties, asset taxes, asset transfer
tax, property use or other real estate tax, together with any
related fine, penalty, surcharge, or interest imposed in connection
with such taxes), controls, policies and regulations; the security
of personnel and assets; political or economic developments in
Canada, the United States, Chile, Brazil, Mauritania or other
countries in which Kinross does business or may carry on business;
business opportunities that may be presented to, or pursued by, us;
our ability to successfully integrate acquisitions and complete
divestitures; operating or technical difficulties in connection
with mining, development or refining activities; employee
relations; litigation or other claims against, or regulatory
investigations and/or any enforcement actions, administrative
orders or sanctions in respect of the Company (and/or its
directors, officers, or employees) including, but not limited to,
securities class action litigation in Canada and/or the United
States, environmental litigation or regulatory proceedings or any
investigations, enforcement actions and/or sanctions under any
applicable anti-corruption, international sanctions and/or
anti-money laundering laws and regulations in Canada, the United
States or any other applicable jurisdiction; the speculative nature
of gold exploration and development including, but not limited to,
the risks of obtaining and maintaining necessary licenses and
permits; diminishing quantities or grades of reserves; adverse
changes in our credit ratings; and contests over title to
properties, particularly title to undeveloped properties. In
addition, there are risks and hazards associated with the business
of gold exploration, development and mining, including
environmental hazards, industrial accidents, unusual or unexpected
formations, pressures, cave-ins, flooding and gold bullion losses
(and the risk of inadequate insurance, or the inability to obtain
insurance, to cover these risks). Many of these uncertainties and
contingencies can directly or indirectly 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, including but not limited to resulting in an
impairment charge on goodwill and/or assets. 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.
Forward-looking statements are provided for the purpose of
providing information about management’s expectations and plans
relating to the future. All of the forward-looking statements made
in this news release are qualified by this cautionary statement and
those made in our other filings with the securities regulators of
Canada and the United States including, but not limited to, the
cautionary statements made in the “Risk Analysis” section of our
MD&A for the year ended December 31, 2023, and the “Risk
Factors” set forth in the Company’s Annual Information Form dated
March 27, 2024. 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.
Key Sensitivities
Approximately 70%-80% of the Company's costs are
denominated in U.S. dollars.
A 10% change in foreign currency exchange rates
would be expected to result in an approximate $20 impact on
production cost of sales per equivalent ounce sold14.
Specific to the Brazilian real, a 10% change in
the exchange rate would be expected to result in an approximate $40
impact on Brazilian production cost of sales per equivalent ounce
sold.
Specific to the Chilean peso, a 10% change in
the exchange rate would be expected to result in an approximate $30
impact on Chilean production cost of sales per equivalent ounce
sold.
A $10 per barrel change in the price of oil
would be expected to result in an approximate $3 impact on
production cost of sales per equivalent ounce sold.
A $100 change in the price of gold would be
expected to result in an approximate $4 impact on production cost
of sales per equivalent ounce sold as a result of a change in
royalties.
Other information
Where we say "we", "us", "our", the "Company",
or "Kinross" in this news release, 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 news release has been prepared
under the supervision of Mr. Nicos Pfeiffer, an officer of the
Company who is a “qualified person” within the meaning of National
Instrument 43-101.
Source: Kinross Gold Corporation
1 “Production cost of sales per equivalent ounce sold” is
defined as production cost of sales, as reported on the interim
condensed consolidated statements of operations, divided by total
gold equivalent ounces sold.2 As production from Manh Choh is
expected to commence in the third quarter of 2024, production cost
of sales and attributable all-in sustaining cost figures and ratios
for Manh Choh are nil for all periods presented. As a result,
production cost of sales and all-in sustaining cost figures and
ratios are equal to attributable production cost of sales and
attributable all-in sustaining cost figures and ratios, as
applicable.3 These figures are non-GAAP financial measures and
ratios, as applicable, and are defined and reconciled on pages 16
to 21 of this news release. Non-GAAP financial measures and ratios
have no standardized meaning under IFRS and therefore, may not be
comparable to similar measures presented by other
issuers. 4 “Margins” per equivalent ounce sold is
defined as average realized gold price per ounce less production
cost of sales per equivalent ounce sold. 5 Operating cash flow
figures in this release represent “Net cash flow provided from
operating activities,” as reported on the interim condensed
consolidated statements of cash flows. 6 “Attributable” includes
Kinross’ 70% share of Manh Choh production, costs and capital
expenditures. Attributable guidance figures are non-GAAP financial
measures and ratios. Refer to footnote 2. 7 Reported net earnings
figures in this news release represent “Net earnings (loss)
attributable to common shareholders,” as reported on the interim
condensed consolidated statements of operations. 8
Adjusted net earnings figures in this news release represent
“Adjusted net earnings attributable to common shareholders.”9
“Total liquidity” is defined as the sum of cash and cash
equivalents, as reported on the interim condensed consolidated
balance sheets, and available credit under the Company’s credit
facilities (as calculated in Section 6 Liquidity and Capital
Resources of Kinross’ MD&A for the three months ended March 31,
2024).10 “Average realized gold price per ounce” is defined as gold
metal sales divided by total gold ounces sold.11 “Fort Knox”
includes Fort Knox and Manh Choh. 12 “Available credit” is defined
as available credit under the Company’s credit facilities and is
calculated in Section 6 Liquidity and Capital Resources of Kinross’
MD&A for the three months ended March 31, 2024.13 Phase X drill
results are reported as apparent widths as true widths have yet to
be determined. 14 Refers to all of the currencies in the countries
where the Company has mining operations, fluctuating simultaneously
by 10% in the same direction, either appreciating or depreciating,
taking into consideration the impact of hedging and the weighting
of each currency within our consolidated cost structure.
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