Company on track to meet annual guidance
Tasiast achieves record quarterly production and delivers strong
free cash flow
Phase S supports production at Round Mountain through end of
decade
TORONTO, Nov. 08, 2023 (GLOBE NEWSWIRE) --
Kinross Gold Corporation (TSX: K, NYSE: KGC) (“Kinross” or the
“Company”) today announced its results for the third quarter ended
September 30, 2023.
This news release contains forward-looking
information about expected future events and financial and
operating performance of the Company. Please refer to the risks and
assumptions set out in our Cautionary Statement on Forward-Looking
Information located on page 29 of this release. All dollar amounts
are expressed in U.S. dollars, unless otherwise noted.
Q3 2023 highlights from continuing
operations:
-
Guidance: Kinross remains on track to meet
its 2023 annual guidance ranges for production, cost of sales per
ounce, all-in sustaining cost and attributable capital
expenditures. The Company is tracking in the lower end of its 2023
production cost of sales guidance and the higher end of its capital
expenditure guidance.
- Production of
585,449 gold equivalent ounces (Au eq. oz.), a 11% year-over-year
increase.
- Production cost of
sales1 of $911 per Au eq. oz. sold and
all-in sustaining cost2 of $1,296 per
Au eq. oz. sold.
-
Margins3 of $1,018 per Au eq. oz.
sold.
- Operating cash
flow4 of $406.8 million and adjusted
operating cash flow2 of $470.6 million.
Free cash flow2 of $122.9 million.
- Reported net
earnings5 of $109.7 million, or $0.09 per
share, with adjusted net
earnings2, 6 of $144.6
million, or $0.12 per share2.
- Cash and cash
equivalents of $464.9 million, and total
liquidity7 of approximately $2.0
billion at September 30, 2023.
-
Kinross’ Board of Directors declared a
quarterly dividend of $0.03 per common
share payable on December 14, 2023, to shareholders of record
at the close of business on November 30, 2023.
Operational and development project
highlights:
- Tasiast achieved
record quarterly production and sales, significantly exceeding the
previous record achieved in the second quarter.
- Paracatu delivered
higher production both quarter-over-quarter and
year-over-year.
- La Coipa performed
well and was once again the lowest cost mine in the portfolio,
delivering high-margin production.
- At Manh Choh, a
ceremonial groundbreaking was held, pre-stripping has commenced,
and the project remains on track for initial production in the
second half of 2024.
- At Round Mountain,
Kinross has approved mining of the optimized Phase
S open pit, which is expected to extend production out to
the end of the decade and increase life-of-mine production by
~750,000 Au eq. oz. Phase S could provide synergies with potential
future production from underground at Phase X and
Gold Hill.
- At Great Bear, the
exploration program continues to make excellent progress and drill
results continue to exceed expectations around the strong resource
potential of the deposit, including a recent high-grade intercept
from the Hinge zone that returned 2.8 metres true width grading at
approximately 260 grams per tonne (g/t) at a vertical depth of 870
metres. Permitting is ongoing at both the provincial and federal
levels.
CEO commentary:
J. Paul Rollinson, President and CEO, made the following
comments in relation to 2023 third-quarter results:
“It has been a great nine months at Kinross and
we have delivered another strong quarter. Our production profile
has been solid and generated significant cash flow. We continue to
reduce the debt on our investment grade balance sheet and have
completed our expansion projects at Tasiast and La Coipa. We remain
well positioned to meet our annual guidance building on the robust
results year-to-date.
“Our project pipeline continued to make
excellent progress. At Great Bear, permitting is advancing well and
drill results continue to exceed our expectations, demonstrating
the strength of the resource at depth and in less-explored areas of
the deposit, including a recent exceptional intercept from the
Hinge zone. We officially broke ground at Manh Choh as the project
continues to advance on schedule and on budget for initial
production in the second half of next year.
“Our decision to proceed with Round Mountain
Phase S underscores the successful optimization work to build a
lower-investment, high-return operation that we expect will add
approximately 750,000 ounces to the life-of-mine production
profile. The future of Round Mountain has become clear, with the
approval of Phase S, combined with Phase W that we are currently
mining, we’re now expecting production at Round Mountain until the
end of the decade. Longer-term, we see strong potential to
supplement that production with high-grade contributions from Phase
X and Gold Hill, which we continue to explore and study.
“Kinross is delivering on its ESG commitments.
In that regard, we’re excited that our 34MW solar power plant at
Tasiast is on schedule to deliver power by the end of the year.
This, combined with other elements of our Climate Strategy, means
Kinross is well on track to meet our goal of a 30% reduction in
greenhouse gas emissions by 2030.”
Summary of financial and operating
results
|
|
|
Three months ended
|
|
Nine months ended |
|
|
|
September 30,
|
|
September 30, |
|
(unaudited, in millions of U.S. dollars, except ounces, per share
amounts, and per ounce amounts) |
2023 |
2022 |
|
2023 |
2022 |
|
Operating Highlights |
|
|
|
|
|
|
|
|
|
Total gold equivalent ounces from continuing
operations(a),(b) |
|
|
|
|
|
|
|
|
Produced |
|
585,449 |
|
|
529,155 |
|
|
|
1,606,507 |
|
|
1,361,554 |
|
|
Sold |
|
571,248 |
|
|
494,413 |
|
|
|
1,614,547 |
|
|
1,307,219 |
|
|
|
|
|
|
|
|
|
Financial Highlights from Continuing
Operations(a) |
|
|
|
|
|
|
Metal sales |
|
$ |
1,102.4 |
|
$ |
856.5 |
|
|
$ |
3,124.0 |
|
$ |
2,378.9 |
|
|
Production cost of sales |
|
$ |
520.6 |
|
$ |
465.3 |
|
|
$ |
1,502.4 |
|
$ |
1,279.2 |
|
|
Depreciation, depletion and amortization |
|
$ |
263.9 |
|
$ |
185.1 |
|
|
$ |
715.1 |
|
$ |
532.1 |
|
| Operating
earnings |
|
$ |
226.2 |
|
$ |
111.3 |
|
|
$ |
607.9 |
|
$ |
277.8 |
|
| Net
earnings from continuing operations attributable to common
shareholders |
|
$ |
109.7 |
|
$ |
65.9 |
|
|
$ |
350.9 |
|
$ |
137.9 |
|
| Basic
earnings per share from continuing operations attributable to
common shareholders |
|
$ |
0.09 |
|
$ |
0.05 |
|
|
$ |
0.29 |
|
$ |
0.11 |
|
| Diluted
earnings per share from continuing operations attributable to
common shareholders |
|
$ |
0.09 |
|
$ |
0.05 |
|
|
$ |
0.28 |
|
$ |
0.11 |
|
| Adjusted
net earnings from continuing operations attributable to common
shareholders(c) |
|
$ |
144.6 |
|
$ |
68.7 |
|
|
$ |
399.8 |
|
$ |
174.9 |
|
| Adjusted
net earnings from continuing operations per
share(c) |
|
$ |
0.12 |
|
$ |
0.05 |
|
|
$ |
0.33 |
|
$ |
0.14 |
|
| Net cash
flow of continuing operations provided from operating
activities |
|
$ |
406.8 |
|
$ |
173.2 |
|
|
$ |
1,194.4 |
|
$ |
528.2 |
|
| Adjusted
operating cash flow from continuing operations(c) |
|
$ |
470.6 |
|
$ |
259.4 |
|
|
$ |
1,262.5 |
|
$ |
760.4 |
|
| Capital
expenditures from continuing operations(d) |
|
$ |
283.9 |
|
$ |
197.3 |
|
|
$ |
787.0 |
|
$ |
447.4 |
|
| Free cash
flow from continuing operations(c) |
|
$ |
122.9 |
|
$ |
(24.1 |
) |
|
$ |
407.4 |
|
$ |
80.8 |
|
| Average
realized gold price per ounce from continuing
operations(e) |
|
$ |
1,929 |
|
$ |
1,732 |
|
|
$ |
1,935 |
|
$ |
1,821 |
|
|
Production cost of sales from continuing operations per equivalent
ounce(b) sold(f) |
|
$ |
911 |
|
$ |
941 |
|
|
$ |
931 |
|
$ |
979 |
|
|
Production cost of sales from continuing operations per ounce sold
on a by-product basis(c) |
|
$ |
860 |
|
$ |
919 |
|
|
$ |
876 |
|
$ |
966 |
|
| All-in
sustaining cost from continuing operations per ounce sold on a
by-product basis(c) |
|
$ |
1,264 |
|
$ |
1,269 |
|
|
$ |
1,269 |
|
$ |
1,279 |
|
| All-in
sustaining cost from continuing operations per equivalent
ounce(b) sold(c) |
|
$ |
1,296 |
|
$ |
1,282 |
|
|
$ |
1,303 |
|
$ |
1,287 |
|
|
Attributable all-in cost(g) from continuing operations
per ounce sold on a by-product basis(c) |
|
$ |
1,561 |
|
$ |
1,555 |
|
|
$ |
1,590 |
|
$ |
1,543 |
|
|
Attributable all-in cost(g) from continuing operations
per equivalent ounce(b) sold(c) |
|
$ |
1,579 |
|
$ |
1,560 |
|
|
$ |
1,608 |
|
$ |
1,547 |
|
|
(a) |
Results for the three and nine months ended September 30, 2023
and 2022 are from continuing operations and exclude results from
the Company’s Chirano and Russian operations due to the
classification of these operations as discontinued and their sale
in 2022. |
|
(b) |
“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 third quarter and first nine months of 2023 was 81.82:1 and
82.50:1, respectively (third quarter and first nine months of 2022
– 89.91:1 and 83.22:1, respectively). |
|
(c) |
The definition and reconciliation of these non-GAAP financial
measures and ratios is included on pages 17 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. |
|
(d) |
“Capital expenditures from continuing operations” is as
reported as “Additions to property, plant and equipment” on the
interim condensed consolidated statements of cash flows. |
|
(e) |
“Average realized gold price per ounce from continuing
operations” is defined as gold metal sales from continuing
operations divided by total gold ounces sold from continuing
operations. |
|
(f) |
“Production cost of sales from continuing operations per
equivalent ounce sold” is defined as production cost of sales
divided by total gold equivalent ounces sold from continuing
operations. |
|
(g) |
“Attributable all-in cost” includes Kinross’ share of Manh Choh
(70%) costs. |
|
|
|
The following operating and financial results are based on
third-quarter gold equivalent production:
Production: Kinross produced
585,449 Au eq. oz. in Q3 2023 from continuing operations, compared
with 529,155 Au eq. oz. in Q3 2022. The 11% year-over-year increase
was primarily attributable to higher mill grades, recovery and
throughput at Tasiast, higher production at La Coipa due to the
ramp-up of operations in 2022, and higher production at Paracatu
due to higher throughput and timing of ounces processed.
Average realized gold price:
The average realized gold price from continuing operations in Q3
2023 was $1,929 per ounce, compared with $1,732 per ounce in Q3
2022.
Revenue: During the third
quarter, revenue from continuing operations increased to $1,102.4
million, compared with $856.5 million during Q3 2022. The 29%
increase is due to an increase in gold equivalent ounces sold and
an increase in average realized gold price.
Production cost of sales:
Production cost of sales1 from continuing operations per
Au eq. oz. sold decreased to $911 for the quarter, compared with
$941 in Q3 2022. The 12% decrease was primarily due to the ramp-up
of production at La Coipa, which continued to be the lowest cost
operation in Q3 2023.
Production cost of sales from continuing
operations per Au oz. sold2 on a by-product basis
decreased to $860 in Q3 2023, compared with $919 in Q3 2022,
based on gold sales of 544,199 ounces and silver sales of 2,213,044
ounces.
Margins3: Kinross’
margin from continuing operations per Au eq. oz. sold increased to
$1,018 for Q3 2023, compared with the Q3 2022 margin of $791.
All-in sustaining
cost2: All-in sustaining cost from continuing
operations per Au eq. oz. sold was $1,296 in Q3 2023, compared with
$1,282 in Q3 2022.
In Q3 2023, all-in sustaining cost from
continuing operations per Au oz. sold on a by-product basis was
$1,264, compared with $1,269 in Q3 2022.
Operating cash flow: Operating
cash flow from continuing operations4 was $406.8 million
for Q3 2023, compared with $173.2 million for Q3 2022.
Adjusted operating cash flow from continuing
operations2 increased to $470.6 million in Q3 2023,
compared with $259.4 million for Q3 2022.
Free cash
flow2: Free cash flow from
continuing operations in Q3 2023 was $122.9 million, compared with
an outflow of $24.1 million in Q3 2022. Excluding working capital
changes8, free cash flow from continuing operations in
Q3 2023 was $186.7 million, compared with $62.1 million in Q3
2022.
Earnings: Reported net
earnings5 from continuing operations increased to $109.7
million, or $0.09 per share for Q3 2023, compared with $65.9
million, or $0.05 per share, for Q3 2022. The increase in reported
net earnings was mainly due to the increase in margins.
Adjusted net earnings from continuing
operations2,6 was $144.6 million,
or $0.12 per share, for Q3 2023, compared with $68.7 million, or
$0.05 per share, for Q3 2022.
Capital expenditures: Capital
expenditures from continuing operations increased to $283.9 million
for Q3 2023, compared with $197.3 million for Q3 2022, primarily
due to an increase in capital stripping at Tasiast and Fort Knox
and development activities at Manh Choh.
Balance sheet
As of September 30, 2023, Kinross had cash and
cash equivalents of $464.9 million, compared with $478.4 million at
June 30, 2023.
The Company had available credit9 of
approximately $1.5 billion and total liquidity7 of
approximately $2.0 billion as of September 30, 2023, an increase
from $1.9 billion at June 30, 2023.
In the third quarter of 2023, the Company issued
$500 million 6.25% senior notes due in 2033 and used the net
proceeds to redeem the $500 million 5.95% senior notes due March
15, 2024. The Company also repaid $50.0 million of the outstanding
balance on the revolving credit facility during the quarter and
repaid the remaining balance of $50.0 million in October
2023.
Return of capital
As part of its continuing quarterly dividend
program, the Company declared a dividend of $0.03 per common share
payable on December 14, 2023, to shareholders of record as of
November 30, 2023.
Operating results
Mine-by-mine summaries for 2023 third-quarter
operating results may be found on pages 12 and 16 of this news
release. Highlights include the following:
Tasiast had another strong
quarter and achieved record quarterly production and sales.
Quarter-over-quarter, production increased mainly due to higher
throughput and cost of sales per ounce sold was slightly higher due
to the timing of inventory movements. Year-over-year production
increased mainly due to higher grades, recoveries and throughput as
mining continued in the higher-grade section of West Branch 4. Cost
of sales per ounce sold was lower year-over-year due to the
increase in production and less operating waste mined as the site
progressed with capital stripping of West Branch 5.
Paracatu delivered higher
production in both comparable periods. Quarter-over-quarter
production increased mainly due to the timing of processing
higher-grade ounces from the southwest area of the pit, and
year-over-year production increased mainly due to higher throughput
and timing of ounces processed. Cost of sales per ounce sold were
slightly higher quarter-over-quarter due to timing of inventory
movements and lower year-over-year mainly due to the increase in
production.
La Coipa performed well with an
increase in production in both comparable periods mainly due to
higher throughput and grades. Cost of sales per ounce sold was
slightly lower compared with the previous quarter, and higher
year-over-year mainly due to increased production as the site
reached higher production following its ramp-up in 2022.
At Fort Knox,
quarter-over-quarter production increased due to more ounces
recovered from the heap leach pads. Cost of sales per ounce sold
was in line compared with the previous quarter. Year-over-year
production was lower mainly due to lower mill throughput, partially
offset by higher mill grade and an increase in ounces recovered
from the heap leach pads. Cost of sales per ounce sold was slightly
lower compared with Q3 2022 mainly due to planned mine sequencing
involving less operating waste mined.
At Round Mountain, production
increased compared with the previous quarter primarily due to
higher-grade ore from Phase W2. Quarter-over-quarter, cost of sales
per ounce sold was slightly higher due to timing of ounces
recovered from the heap leach pads, however it was lower than
expected due to increased stacking and mill grades. Year-over-year,
production increased slightly due to higher grades, and cost of
sales per ounce sold increased mainly as a result of less capital
development.
At Bald Mountain, production
and cost of sales per ounce sold were largely in line
quarter-over-quarter. Compared with Q3 2022, production decreased
mainly due to the timing of ounces recovered from the heap leach
pads. Year-over-year, cost of sales per ounce sold was higher
mainly due to lower production, lower capital development and
higher contractor and maintenance costs.
Projects and exploration
updates
Tasiast Solar Power Plant
The Tasiast solar power plant,
which has power generation capacity of 34MW and a battery system of
18MW, continues to advance on plan for solar power-to-grid by the
end of the year. Integration and load scenario testing is expected
to continue into early 2024 while delivering maximum allowable
power. Installation of the photovoltaic panels, inverters and
transformer stations are complete, and the battery system
installation is well progressed and awaiting battery module
delivery. Electrical works and completion of the grid connection
are continuing with pre-commissioning testing of the panel arrays
and inverters underway.
Great Bear
At the Great Bear project, the
Company’s robust exploration program continues to make excellent
progress, with approximately 48,500 metres drilled in the third
quarter and the completion of feasibility level engineering for the
advanced exploration decline.
Kinross’ focus this year is on inferred drilling
in the area half a kilometre to one kilometre below surface. In the
second quarter, the Company began using directional drilling, which
allows multiple drill holes to branch off from a single pilot hole.
The system is now being used on 6 of the 11 drills on site to
target the LP Fault and Hinge zones, with the goal of further
delineating the deposit at depth as well as adding inferred
resource ounces. This is complemented by additional exploration
drilling on other areas of the property.
Drilling-to-date has demonstrated potential for
a meaningful increase in the LP Fault underground resource and the
potential of the Hinge and Limb zones to supplement the LP Fault
zone with their demonstrated continuity of mineralization at depth.
The Company expects to declare a resource update as part of its
year-end results.
Since the last update on August 2, 2023, the
Company has received additional assay results, with a selection of
the new results highlighted in the table below.
Notable exploration results10 at
Great Bear in the third quarter include:
- BR-696 (Bruma) 4.1 m @ 15.53 g/t Au at a vertical depth of 1150
m
- Including 1.4 m @ 45.60 g/t Au
- BR-778C1 (Yuma) 14.2 m @ 5.63 g/t Au at a vertical depth of
1075 m
- Including 4.9 m @ 15.57 g/t Au
- BR-806 (Discovery) 3.6 m @ 11.20 g/t Au at a vertical depth of
600 m
- BR-814C1A (Yauro) 8.3 m @ 5.28 g/t Au at a vertical depth of
700 m
- BR-825 (Viggo) 0.5 m @ 147.0 g/t Au at a vertical depth of 580
m
- DL-085C7 (Hinge) 2.8 m @ 259.45 g/t Au at a vertical depth of
870 m
Recent results continue to support the view of a
high-grade, large, long-life mining complex. Holes BR-696 and
BR-778C1 continue to demonstrate the potential for wide, high-grade
mineralization at greater than 1-kilometre vertical depth under
Bruma and Yuma while holes BR-806 and BR-814C1A demonstrate the
continuity between the new deep intercepts and the current
resource. Hole BR-825 intersected 0.5 m @ 147 g/t in under-tested
ground between Viggo and Auro demonstrating potential that
mineralization exists at depths greater than 500 m between the two
zones.
With the goal of deep resource growth, recent
drilling at the Hinge zone has yielded promising results. The more
accurate targeting, afforded through directional drilling, has
allowed for precise infill drilling of the known quartz vein hosted
mineralization at approximately 900 m vertical depth. Following on
the success of previously reported holes DL-132 and DL-142, hole
DL-085C7 has intersected 2.8 m @ 259 g/t, showing continuity
of mineralization.
For the main project, Kinross continues to
advance technical studies, including engineering and field testwork
campaigns, with plans to release the results of this work in the
form of a preliminary economic assessment in the second half of
2024. Also underway is geochemical work that includes static
testing, humidity cells, column testing, tailings residue sampling
and field leach barrels. An extensive field bedrock and soils
geotechnical drilling and testing program was kicked off in August,
building on the campaign completed late last year. Bedrock
geotechnical analysis is indicating very robust rock strengths in
both the open pit and underground.
The Company continues to progress studies and
provincial permitting for an advanced exploration program that
would establish an underground decline to obtain a bulk sample and
allow for definition and infill drilling in the LP Fault zone.
Feasibility level engineering for advanced exploration
infrastructure is now complete and the procurement process for
long-lead items such as the camp, power infrastructure and water
treatment plant is progressing well.
Kinross is targeting a potential start of the
surface construction for the advanced exploration program in the
second half of 2024, subject to receipt of permits.
Permitting for the main project is ongoing at
both the provincial and federal levels. Permitting efforts have
been initiated with the Impact Assessment Agency of Canada to
review potential project impacts within Federal authority. The
comprehensive baseline study program encompassing air, noise,
hydrogeology, geochemistry, archeology, water quality and a number
of other metrics continues to advance. These studies underpin the
Company’s Indigenous consultation process and permitting
efforts.
Selected Great Bear Drill
Results
See Appendix A for full results.
|
Hole ID |
|
From
(m) |
To
(m) |
Width
(m) |
True
Width (m) |
Au
(g/t) |
Target |
|
BR-696 |
|
1,347.7 |
1,352.2 |
4.5 |
4.1 |
15.53 |
Bruma |
|
BR-696 |
including |
1,349.2 |
1,350.7 |
1.5 |
1.4 |
45.60 |
|
|
BR-696 |
and |
1,364.1 |
1,367.8 |
3.7 |
3.4 |
1.33 |
|
|
BR-696 |
and |
1,510.0 |
1,514.0 |
4.0 |
3.7 |
0.53 |
|
|
BR-696 |
and |
1,521.0 |
1,526.4 |
5.4 |
5.0 |
0.41 |
|
|
BR-696 |
and |
1,539.4 |
1,543.5 |
4.1 |
3.8 |
0.43 |
|
|
BR-696 |
and |
1,568.0 |
1,578.0 |
10.0 |
9.2 |
0.63 |
|
|
BR-696 |
and |
1,583.5 |
1,587.2 |
3.7 |
3.4 |
0.75 |
|
|
BR-696 |
and |
1,594.5 |
1,597.5 |
3.0 |
2.8 |
0.33 |
|
|
BR-696 |
and |
1,599.6 |
1,603.2 |
3.6 |
3.3 |
0.40 |
|
|
BR-778C1 |
|
1,392.7 |
1,396.1 |
3.4 |
2.3 |
0.64 |
Yuma |
|
BR-778C1 |
and |
1,452.8 |
1,473.4 |
20.6 |
14.2 |
5.63 |
|
|
BR-778C1 |
including |
1,466.3 |
1,473.4 |
7.1 |
4.9 |
15.57 |
|
|
BR-778C1 |
and |
1,489.0 |
1,546.7 |
57.7 |
39.8 |
0.94 |
|
|
BR-778C1 |
including |
1,534.8 |
1,540.3 |
5.5 |
3.8 |
6.16 |
|
|
BR-778C1 |
and |
1,559.2 |
1,572.8 |
13.7 |
9.4 |
4.51 |
|
|
BR-778C1 |
including |
1,565.9 |
1,568.3 |
2.4 |
1.6 |
22.81 |
|
|
BR-778C1 |
and |
1,595.3 |
1,602.5 |
7.2 |
4.9 |
2.01 |
|
|
BR-778C1 |
including |
1,598.6 |
1,600.8 |
2.2 |
1.5 |
4.23 |
|
|
BR-806 |
|
732.9 |
738.0 |
5.1 |
3.6 |
11.20 |
Discovery |
|
BR-806 |
including |
736.7 |
738.0 |
1.4 |
0.9 |
39.50 |
|
|
BR-806 |
and |
785.4 |
795.4 |
10.0 |
7.0 |
0.47 |
|
|
BR-806 |
and |
810.0 |
824.1 |
14.1 |
9.9 |
0.60 |
|
|
BR-806 |
and |
844.0 |
875.3 |
31.3 |
21.9 |
0.51 |
|
|
BR-814C1A |
|
850.5 |
853.5 |
3.0 |
2.2 |
1.95 |
Yauro |
|
BR-814C1A |
and |
867.6 |
879.0 |
11.4 |
8.3 |
5.28 |
|
|
BR-814C1A |
including |
868.6 |
877.0 |
8.4 |
6.1 |
6.95 |
|
|
BR-814C1A |
and |
880.0 |
883.0 |
3.0 |
2.2 |
0.36 |
|
|
BR-814C1A |
and |
899.4 |
903.0 |
3.6 |
2.6 |
0.54 |
|
|
BR-814C1A |
and |
927.0 |
928.5 |
1.5 |
1.1 |
17.00 |
|
|
BR-825 |
|
696.8 |
896.4 |
199.6 |
157.7 |
0.51 |
Viggo |
|
BR-825 |
including |
741.2 |
741.8 |
0.6 |
0.5 |
147.00 |
|
|
DL-085C7 |
|
868.0 |
871.5 |
3.5 |
2.8 |
259.45 |
Hinge |
|
DL-085C7 |
including |
869.8 |
870.3 |
0.5 |
0.4 |
908.00 |
|
Results are preliminary in nature and are subject to
on-going QA/QC. Lengths are subject to rounding.
See Appendix B for a LP Fault zone long section.
See Appendix C for a Hinge zone long section.
Manh Choh
At the 70% owned Manh
Choh project, of which Kinross is
the operator, activities remain on budget and on schedule for
initial production in the second half of 2024. Construction is now
90% complete with commissioning activities underway, pre-stripping
has commenced, and work is ongoing to transition the project to
operations.
At Fort Knox, where the Manh Choh ore will be
processed, outdoor construction continues to progress with all
concrete works complete. Work continues inside the mill with
progress on tanks and piping and further work on additional mill
modifications expected during the winter months.
A groundbreaking ceremony was held during the
quarter and Kinross was pleased to welcome Chief Michael Sam,
elders, and delegates from the Native Village of Tetlin, as well as
Alaska Governor Michael Dunleavy and other government
officials.
Round Mountain
At Round Mountain, Kinross is continuing to mine
Phase W2 and will be proceeding with mining of the
optimized Phase S open pit early next year,
providing production out to the end of the decade and a bridge to
the potential higher margin underground opportunities at
Phase X and Gold
Hill, which the Company continues to
explore and study.
Kinross is pleased to announce that the
optimization work at Phase S over the last year
has resulted in an improved design with a lower overall strip
ratio, higher grade, similar overall ounces, and a significantly
lower capital investment and cash outflow. This was achieved by
stepping-in the pit design in areas that had higher stripping,
lower-margin ounces and identifying opportunities to add some
near-surface, lower-strip ounces that come earlier in the plan,
helping to reduce the cash outflow in the near term. With this
optimized design and plan, at current gold prices we expect Round
Mountain to be able to self-fund the Phase S expansion, driving a
significant change in the risk profile and return of this expansion
for the Company.
Phase S is expected to increase life-of-mine
production by approximately 750,000 Au eq. oz. and generate an
incremental internal rate of return11 (IRR) of 45% and
incremental net present value11 (NPV) of $170 million.
Initial capital expenditures are expected to be $170 million, of
which $140 million is related to pre-stripping. The remaining $30
million is planned for an expansion of the existing North Heap
Leach Pad and some additional tailings infrastructure. Phase S is
expected to improve the cash cost at Round Mountain, particularly
later in the mine life, as the mine plan reaches the higher-grade
Phase S ore towards the bottom of the pit. Including Phase S, the
Company expects Round Mountain to produce approximately 215,000 Au
eq. oz. per year from 2024-2028.
Phase S was included in the Company's 2022
year-end estimated mineral reserves and the Company expects to
provide an update with the optimized Phase S design at the 2023
year-end.
|
Round Mountain Phase S |
|
Operational metric |
Incremental Phase S
estimate11 |
|
NPV (5%) (million) |
$170 |
|
IRR |
45% |
|
Total life-of-mine cash flow (million) |
$220 |
|
Total production (thousand Au oz.) |
~750 |
|
Initial capital costs (million)12 |
$30 |
|
Initial capital costs (million) (strip)11,
12 |
$140 |
|
Sustaining capital costs (million) |
$60 |
|
Payback |
2027 |
|
Total material mined (million tonnes) |
153 |
|
Average strip ratio |
2.1 |
|
Ore milled (million tonnes) |
17 |
|
Ore leached (million tonnes) |
32 |
|
Mill grade |
0.83 g/t |
|
Leach grade |
0.52 g/t |
|
|
Round Mountain Phase S gold price sensitivity
estimates (incremental)
Average gold price |
|
Financial Metric |
$1,650/oz. |
$1,750/oz. |
$1,850/oz. |
$1,950/oz. |
$2,050/oz. |
|
Incremental IRR |
19% |
33% |
45% |
58% |
70% |
|
Incremental NPV |
$52 million |
$111 million |
$170 million |
$229 million |
$288 million |
The combination of the optimization results and extensive technical
diligence completed over the last year on Phase S provides
confidence in strong returns and margins while proceeding with this
next phase of mine life at Round Mountain.
By providing meaningful production scale at
Round Mountain out to the end of the decade, the Phase S pushback
could also drive cost synergies if the Company proceeds with future
underground mining at Phase X and Gold
Hill. The two underground opportunities continue to show
potential for higher-margin, higher-return operations at Round
Mountain, particularly when combined with production and scale from
Phase S.
While still mining Phase S, Round Mountain could
potentially develop and ramp-up Phase X underground, which could
then concurrently be exploited with Phase S in the second half of
the decade. Gold Hill underground development could follow Phase X,
adding higher-grade mill feed to supplement production from Phase X
at the end of the decade and into the 2030s.
At Phase X, construction of the
exploration decline continues to progress well with approximately
1,000 metres developed so far, remaining on plan to start
definition drilling in early 2024. Kinross has also initiated
technical studies for the Phase X project. Phase X is envisioned to
be a bulk long-hole open stoping operation. Current intercepts
suggest 3 to 4 g/t average stope grades.
At Gold Hill, located approximately seven
kilometres northeast of Round Mountain, prior drill results show
potential for a higher-grade narrow vein operation which could
supplement mill feed from Phase X, increasing the average processed
grade and margin. Kinross plans to continue drilling at Gold Hill
in Q4 2023 and into 2024 to progress exploration and studies.
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 the Curlew Basin exploration
project in Washington State, underground exploration drill results
documented a new vein zone, ‘Roadrunner’. The new vein zone is open
and more drilling will be conducted over the coming quarters in
order to delineate the extents. Underground exploration drilling in
the third quarter also continued to build on the existing resource
through proximal growth.
The top three significant intercepts received during the quarter
include:
- Roadrunner:
- RR-1168 – 14.2m @
16.5 g/t Au, includes 7.3m @ 25.3 g/t
Au
- ST-1179 – 4.7m @ 11.7 g/t Au
- K2N-1171 – 3.9m @ 11.3 g/t Au
Results-to-date continue to demonstrate the high
grade and upside potential of the Curlew Basin.
Company Guidance
The following section of the news release represents
forward-looking information and users are cautioned that actual
results may vary. We refer to the risks and assumptions contained
in the Cautionary Statement on Forward-Looking Information on page
29.
The Company is on track to meet its 2023
production guidance range of 2.1 million Au eq. oz. (+/- 5%) and
all-in sustaining cost guidance range.
The Company is tracking in the lower end of its
production cost of sales guidance range of $970 per Au eq. oz. (+/-
5%) and the higher end of its attributable13 capital
expenditure guidance range.
Kinross’ annual production is expected to remain
stable in 2024 and 2025 at 2.1 million and 2.0 million
attributable14 Au eq. oz. (+/- 5%),
respectively.
Environment, Social and Governance (ESG)
update
In accordance with the Company’s updated ESG
strategy, Kinross has conducted a comprehensive review of its
Community Engagement Management System with the objective of
supporting sites with improved clarity and ease of application.
Kinross’ updated Social Performance Management System will be
rolled out across sites beginning in late 2023, on plan, and will
enhance local accountability with clear expectations and guidance
recognizing the role that all site functions have in social
performance.
Kinross completed the first steps towards
developing a specific Natural Capital Strategy to enhance the
approach in this priority focus area. Natural capital is
fundamentally about minimizing loss, ensuring reclamation and the
restoration of valuable natural habitats through proper water, air,
and mining waste management, as well as wholistic mine closure.
Kinross’ vision for natural capital builds upon the sustainability
foundation established across its operations and projects.
Kinross has also progressed on its Climate Strategy. The Tasiast
34MW photovoltaic solar facility is one of the important steps the
Company is taking to address climate change through renewable
energy projects. Kinross is also focused on renewable power
purchase agreements, electric autonomous haulage partnerships, and
energy-efficient opportunities across sites. The outcome of these
initiatives is that Kinross is on track to achieve its greenhouse
gas reduction goal of reducing emissions intensity by 30% in 2030
from its baseline.
Conference call details
In connection with this news release, Kinross
will hold a conference call and audio webcast on Thursday, November
9, 2023, at 8:00 a.m. ET 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: 4915537
Outside 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: 4915537
Outside 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.
This release should be read in conjunction with
Kinross’ 2023 third-quarter unaudited Financial Statements and
Management’s Discussion and Analysis report at www.kinross.com.
Kinross’ 2023 third-quarter unaudited Financial Statements and
Management’s Discussion and Analysis have been filed with Canadian
securities regulators (available at www.sedar.com) 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 Barrington
Senior Director, Corporate Communications
phone: 647-788-4153
victoria.barrington@kinross.com
Investor Relations Contact
Chris Lichtenheldt
Vice-President, Investor Relations
phone: 416-365-2761
chris.lichtenheldt@kinross.com
Review of operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30,
(unaudited)
|
Gold equivalent ounces |
|
|
|
|
|
|
|
|
Produced |
|
Sold |
|
Production cost of sales ($millions) |
|
Production cost of sales/equivalent ounce
sold |
|
|
2023 |
2022 |
|
2023 |
2022 |
|
2023 |
2022 |
|
2023 |
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tasiast |
171,140 |
132,754 |
|
162,823 |
128,014 |
|
$ |
108.5 |
$ |
94.8 |
|
$ |
666 |
$ |
741 |
|
Paracatu |
172,482 |
159,113 |
|
167,105 |
152,616 |
|
|
141.2 |
|
131.1 |
|
|
845 |
|
859 |
|
La Coipa |
65,975 |
33,955 |
|
65,856 |
24,681 |
|
|
41.4 |
|
12.2 |
|
|
629 |
|
494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fort Knox |
71,611 |
75,522 |
|
71,616 |
74,221 |
|
|
82.3 |
|
88.6 |
|
|
1,149 |
|
1,194 |
|
Round Mountain |
63,648 |
62,417 |
|
61,931 |
61,757 |
|
|
93.1 |
|
87.0 |
|
|
1,503 |
|
1,409 |
|
Bald Mountain |
40,593 |
65,394 |
|
41,300 |
52,472 |
|
|
53.9 |
|
51.2 |
|
|
1,305 |
|
976 |
|
United States Total |
175,852 |
203,333 |
|
174,847 |
188,450 |
|
|
229.3 |
|
226.8 |
|
|
1,311 |
|
1,204 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maricunga |
- |
- |
|
617 |
652 |
|
|
0.2 |
|
0.4 |
|
|
324 |
|
613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations Total |
585,449 |
529,155 |
|
571,248 |
494,413 |
|
|
520.6 |
|
465.3 |
|
|
911 |
|
941 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations |
|
|
|
|
|
|
|
|
|
|
|
|
Kupol |
- |
- |
|
- |
- |
|
|
- |
|
- |
|
$ |
- |
$ |
- |
| Chirano
(100%) |
- |
13,522 |
|
- |
15,018 |
|
|
- |
|
24.3 |
|
|
- |
|
1,618 |
|
|
- |
13,522 |
|
- |
15,018 |
|
|
- |
|
24.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30,
(unaudited)
|
Gold equivalent ounces |
|
|
|
|
|
|
|
|
Produced |
|
Sold |
|
Production cost of sales ($millions) |
|
Production cost of sales/equivalent ounce
sold |
|
|
2023 |
2022 |
|
2023 |
2022 |
|
2023 |
2022 |
|
2023 |
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tasiast |
460,029 |
395,589 |
|
443,866 |
372,273 |
|
$ |
296.4 |
$ |
283.9 |
|
$ |
668 |
$ |
763 |
|
Paracatu |
460,059 |
396,545 |
|
459,338 |
387,974 |
|
|
394.4 |
|
367.3 |
|
|
859 |
|
947 |
|
La Coipa |
186,315 |
41,893 |
|
195,014 |
31,780 |
|
|
129.9 |
|
17.8 |
|
|
666 |
|
560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fort Knox |
206,436 |
207,509 |
|
206,226 |
204,732 |
|
|
239.2 |
|
248.6 |
|
|
1,160 |
|
1,214 |
|
Round Mountain |
179,926 |
164,445 |
|
177,569 |
160,171 |
|
|
275.1 |
|
214.1 |
|
|
1,549 |
|
1,337 |
|
Bald Mountain |
113,742 |
155,573 |
|
130,764 |
147,961 |
|
|
166.4 |
|
146.0 |
|
|
1,273 |
|
987 |
|
United States Total |
500,104 |
527,527 |
|
514,559 |
512,864 |
|
|
680.7 |
|
608.7 |
|
|
1,323 |
|
1,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maricunga |
- |
- |
|
1,770 |
2,328 |
|
|
1.0 |
|
1.5 |
|
|
565 |
|
644 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations Total |
1,606,507 |
1,361,554 |
|
1,614,547 |
1,307,219 |
|
|
1,502.4 |
|
1,279.2 |
|
|
931 |
|
979 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations |
|
|
|
|
|
|
|
|
|
|
|
|
Kupol |
- |
169,156 |
|
- |
122,295 |
|
|
- |
|
83.8 |
|
|
- |
|
685 |
| Chirano
(100%) |
- |
82,060 |
|
- |
87,823 |
|
|
- |
|
131.2 |
|
|
- |
|
1,494 |
|
|
- |
251,216 |
|
- |
210,118 |
|
|
- |
|
215.0 |
|
|
|
Interim condensed consolidated balance
sheets
|
(unaudited, expressed in millions of U.S. dollars, except share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at |
|
|
|
|
September 30, |
|
December 31, |
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
464.9 |
|
|
$ |
418.1 |
|
|
|
Restricted cash |
|
|
8.9 |
|
|
|
10.1 |
|
|
|
Accounts receivable and other assets |
|
|
280.9 |
|
|
|
318.2 |
|
|
|
Current income tax recoverable |
|
|
6.2 |
|
|
|
8.5 |
|
|
|
Inventories |
|
|
1,202.3 |
|
|
|
1,072.2 |
|
|
|
Unrealized fair value of derivative assets |
|
|
15.3 |
|
|
|
25.5 |
|
|
|
|
|
|
1,978.5 |
|
|
|
1,852.6 |
|
|
|
Non-current assets |
|
|
|
|
|
|
Property, plant and equipment |
|
|
7,843.1 |
|
|
|
7,741.4 |
|
|
|
Long-term investments |
|
|
65.2 |
|
|
|
116.9 |
|
|
|
Other long-term assets |
|
|
700.6 |
|
|
|
680.9 |
|
|
|
Deferred tax assets |
|
|
5.7 |
|
|
|
4.6 |
|
|
|
Total assets |
|
$ |
10,593.1 |
|
|
$ |
10,396.4 |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
545.8 |
|
|
$ |
550.0 |
|
|
|
Current income tax payable |
|
|
79.8 |
|
|
|
89.4 |
|
|
|
Current portion of long-term debt and credit facilities |
|
|
32.0 |
|
|
|
36.0 |
|
|
|
Current portion of provisions |
|
|
58.6 |
|
|
|
50.8 |
|
|
|
Other current liabilities |
|
|
16.1 |
|
|
|
25.3 |
|
|
|
|
|
|
732.3 |
|
|
|
751.5 |
|
|
|
Non-current liabilities |
|
|
|
|
|
|
Long-term debt and credit facilities |
|
|
2,383.3 |
|
|
|
2,556.9 |
|
|
|
Provisions |
|
|
768.9 |
|
|
|
755.9 |
|
|
|
Long-term lease liabilities |
|
|
20.2 |
|
|
|
23.1 |
|
|
|
Other long-term liabilities |
|
|
129.1 |
|
|
|
125.3 |
|
|
|
Deferred tax liabilities |
|
|
394.3 |
|
|
|
301.5 |
|
|
|
Total liabilities |
|
$ |
4,428.1 |
|
|
$ |
4,514.2 |
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
Common shareholders' equity |
|
|
|
|
|
|
Common share capital |
|
$ |
4,480.8 |
|
|
$ |
4,449.5 |
|
|
|
Contributed surplus |
|
|
10,645.8 |
|
|
|
10,667.5 |
|
|
|
Accumulated deficit |
|
|
(9,011.2 |
) |
|
|
(9,251.6 |
) |
|
|
Accumulated other comprehensive income (loss) |
|
|
(55.0 |
) |
|
|
(41.7 |
) |
|
|
Total common shareholders' equity |
|
|
6,060.4 |
|
|
|
5,823.7 |
|
|
|
Non-controlling interests |
|
|
104.6 |
|
|
|
58.5 |
|
|
|
Total equity |
|
|
6,165.0 |
|
|
|
5,882.2 |
|
|
|
Total liabilities and equity |
|
$ |
10,593.1 |
|
|
$ |
10,396.4 |
|
|
|
|
|
|
|
|
|
|
Common shares |
|
|
|
|
|
|
Authorized |
|
Unlimited
|
|
|
Unlimited |
|
|
|
Issued and outstanding |
|
|
1,227,699,367 |
|
|
|
1,221,891,341 |
|
|
|
|
|
|
|
|
|
Interim condensed consolidated statements of
operations
|
(unaudited, expressed in millions of U.S. dollars, except share
and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
|
|
September 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
Metal sales |
|
$ |
1,102.4 |
|
|
$ |
856.5 |
|
|
$ |
3,124.0 |
|
|
$ |
2,378.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
|
|
|
|
|
|
|
|
Production cost of sales |
|
|
520.6 |
|
|
|
465.3 |
|
|
|
1,502.4 |
|
|
|
1,279.2 |
|
|
|
Depreciation, depletion and amortization |
|
|
263.9 |
|
|
|
185.1 |
|
|
|
715.1 |
|
|
|
532.1 |
|
|
|
Total cost of sales |
|
|
784.5 |
|
|
|
650.4 |
|
|
|
2,217.5 |
|
|
|
1,811.3 |
|
|
|
Gross profit |
|
|
317.9 |
|
|
|
206.1 |
|
|
|
906.5 |
|
|
|
567.6 |
|
|
|
Other operating expense |
|
|
14.9 |
|
|
|
12.2 |
|
|
|
82.1 |
|
|
|
83.7 |
|
|
|
Exploration and business development |
|
|
51.0 |
|
|
|
42.3 |
|
|
|
134.3 |
|
|
|
105.6 |
|
|
|
General and administrative |
|
|
25.8 |
|
|
|
40.3 |
|
|
|
82.2 |
|
|
|
100.5 |
|
|
|
Operating earnings |
|
|
226.2 |
|
|
|
111.3 |
|
|
|
607.9 |
|
|
|
277.8 |
|
|
|
Other (expense) income - net |
|
|
(0.3 |
) |
|
|
5.6 |
|
|
|
(6.3 |
) |
|
|
(0.4 |
) |
|
|
Finance income |
|
|
11.3 |
|
|
|
6.5 |
|
|
|
32.2 |
|
|
|
10.7 |
|
|
|
Finance expense |
|
|
(25.9 |
) |
|
|
(23.3 |
) |
|
|
(79.4 |
) |
|
|
(68.0 |
) |
|
|
Earnings from continuing operations before
tax |
|
|
211.3 |
|
|
|
100.1 |
|
|
|
554.4 |
|
|
|
220.1 |
|
|
|
Income tax expense - net |
|
|
(102.4 |
) |
|
|
(34.5 |
) |
|
|
(204.2 |
) |
|
|
(82.7 |
) |
|
|
Earnings from continuing operations after tax |
|
|
108.9 |
|
|
|
65.6 |
|
|
|
350.2 |
|
|
|
137.4 |
|
|
|
Loss from discontinued operations after tax |
|
|
- |
|
|
|
(0.8 |
) |
|
|
- |
|
|
|
(636.3 |
) |
|
|
Net earnings (loss) |
|
$ |
108.9 |
|
|
$ |
64.8 |
|
|
$ |
350.2 |
|
|
$ |
(498.9 |
) |
|
|
Net earnings (loss) from continuing operations attributable
to: |
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
$ |
(0.8 |
) |
|
$ |
(0.3 |
) |
|
$ |
(0.7 |
) |
|
$ |
(0.5 |
) |
|
|
Common shareholders |
|
$ |
109.7 |
|
|
$ |
65.9 |
|
|
$ |
350.9 |
|
|
$ |
137.9 |
|
|
|
Net earnings (loss) from discontinued operations
attributable to: |
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
$ |
- |
|
|
$ |
0.2 |
|
|
$ |
- |
|
|
$ |
0.8 |
|
|
|
Common shareholders |
|
$ |
- |
|
|
$ |
(1.0 |
) |
|
$ |
- |
|
|
$ |
(637.1 |
) |
|
|
Net earnings (loss) attributable to: |
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
$ |
(0.8 |
) |
|
$ |
(0.1 |
) |
|
$ |
(0.7 |
) |
|
$ |
0.3 |
|
|
|
Common shareholders |
|
$ |
109.7 |
|
|
$ |
64.9 |
|
|
$ |
350.9 |
|
|
$ |
(499.2 |
) |
|
|
Earnings per share from continuing operations attributable
to common shareholders |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.09 |
|
|
$ |
0.05 |
|
|
$ |
0.29 |
|
|
$ |
0.11 |
|
|
|
Diluted |
|
$ |
0.09 |
|
|
$ |
0.05 |
|
|
$ |
0.28 |
|
|
$ |
0.11 |
|
|
|
Earnings (loss) per share from discontinued operations
attributable to common shareholders |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
(0.49 |
) |
|
|
Basic |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
(0.49 |
) |
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share attributable to common
shareholders |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.09 |
|
|
$ |
0.05 |
|
|
$ |
0.29 |
|
|
$ |
(0.39 |
) |
|
|
Diluted |
|
$ |
0.09 |
|
|
$ |
0.05 |
|
|
$ |
0.28 |
|
|
$ |
(0.39 |
) |
|
Interim condensed consolidated statements of cash
flows
|
(unaudited, expressed in millions of U.S. dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
|
|
September 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
Net inflow (outflow) of cash related to the following
activities: |
|
|
|
|
|
|
|
|
|
|
Operating: |
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations after tax |
|
$ |
108.9 |
|
|
$ |
65.6 |
|
|
$ |
350.2 |
|
|
$ |
137.4 |
|
|
|
Adjustments to reconcile net earnings from continuing operations to
net cash provided from operating activities: |
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
263.9 |
|
|
|
185.1 |
|
|
|
715.1 |
|
|
|
532.1 |
|
|
|
Share-based compensation expense |
|
|
2.9 |
|
|
|
1.4 |
|
|
|
4.3 |
|
|
|
7.4 |
|
|
|
Finance expense |
|
|
25.9 |
|
|
|
23.3 |
|
|
|
79.4 |
|
|
|
68.0 |
|
|
|
Deferred tax expense |
|
|
74.1 |
|
|
|
5.5 |
|
|
|
92.8 |
|
|
|
3.4 |
|
|
|
Foreign exchange losses (gains) and other |
|
|
13.0 |
|
|
|
(1.5 |
) |
|
|
34.8 |
|
|
|
8.2 |
|
|
|
Reclamation (recovery) expense |
|
|
(18.1 |
) |
|
|
(20.0 |
) |
|
|
(14.1 |
) |
|
|
3.9 |
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
Accounts receivable and other assets |
|
|
(21.0 |
) |
|
|
(15.6 |
) |
|
|
66.6 |
|
|
|
47.0 |
|
|
|
Inventories |
|
|
(10.1 |
) |
|
|
(70.0 |
) |
|
|
(93.2 |
) |
|
|
(222.4 |
) |
|
|
Accounts payable and accrued liabilities |
|
|
(15.0 |
) |
|
|
12.9 |
|
|
|
70.4 |
|
|
|
64.0 |
|
|
|
Cash flow provided from operating activities |
|
|
424.5 |
|
|
|
186.7 |
|
|
|
1,306.3 |
|
|
|
649.0 |
|
|
|
Income taxes paid |
|
|
(17.7 |
) |
|
|
(13.5 |
) |
|
|
(111.9 |
) |
|
|
(120.8 |
) |
|
|
Net cash flow of continuing operations provided from
operating activities |
|
|
406.8 |
|
|
|
173.2 |
|
|
|
1,194.4 |
|
|
|
528.2 |
|
|
|
Net cash flow of discontinued operation provided from (used
in) operating activities |
|
|
- |
|
|
|
(1.6 |
) |
|
|
- |
|
|
|
47.6 |
|
|
|
Investing: |
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
|
(283.9 |
) |
|
|
(197.3 |
) |
|
|
(787.0 |
) |
|
|
(447.4 |
) |
|
|
Interest paid capitalized to property, plant and equipment |
|
|
(43.0 |
) |
|
|
(20.5 |
) |
|
|
(89.8 |
) |
|
|
(36.7 |
) |
|
|
Acquisitions net of cash acquired |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,027.5 |
) |
|
|
Net (additions) disposals to long-term investments and other
assets |
|
|
(2.5 |
) |
|
|
(9.5 |
) |
|
|
2.4 |
|
|
|
(43.6 |
) |
|
|
(Increase) decrease in restricted cash - net |
|
|
(0.2 |
) |
|
|
(1.2 |
) |
|
|
1.2 |
|
|
|
(2.3 |
) |
|
|
Interest received and other - net |
|
|
6.6 |
|
|
|
2.0 |
|
|
|
13.5 |
|
|
|
6.7 |
|
|
|
Net cash flow of continuing operations used in investing
activities |
|
|
(323.0 |
) |
|
|
(226.5 |
) |
|
|
(859.7 |
) |
|
|
(1,550.8 |
) |
|
|
Net cash flow of discontinued operations provided from
investing activities |
|
|
- |
|
|
|
43.3 |
|
|
|
45.0 |
|
|
|
296.2 |
|
|
|
Financing: |
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance or drawdown of debt |
|
|
488.1 |
|
|
|
100.0 |
|
|
|
588.1 |
|
|
|
1,197.6 |
|
|
|
Repayment of debt |
|
|
(550.0 |
) |
|
|
(200.0 |
) |
|
|
(770.0 |
) |
|
|
(320.0 |
) |
|
|
Interest paid |
|
|
(26.5 |
) |
|
|
(26.2 |
) |
|
|
(53.0 |
) |
|
|
(51.8 |
) |
|
|
Payment of lease liabilities |
|
|
(4.4 |
) |
|
|
(6.0 |
) |
|
|
(25.5 |
) |
|
|
(17.1 |
) |
|
|
Funding from non-controlling interest |
|
|
27.0 |
|
|
|
- |
|
|
|
38.8 |
|
|
|
1.5 |
|
|
|
Dividends paid to common shareholders |
|
|
(36.8 |
) |
|
|
(39.0 |
) |
|
|
(110.5 |
) |
|
|
(116.9 |
) |
|
|
Repurchase and cancellation of shares |
|
|
- |
|
|
|
(60.2 |
) |
|
|
- |
|
|
|
(60.2 |
) |
|
|
Other - net |
|
|
6.3 |
|
|
|
(4.9 |
) |
|
|
(1.2 |
) |
|
|
2.4 |
|
|
|
Net cash flow of continuing operations (used in) provided
from financing activities |
|
|
(96.3 |
) |
|
|
(236.3 |
) |
|
|
(333.3 |
) |
|
|
635.5 |
|
|
|
Net cash flow of discontinued operations provided from
financing activities |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
Effect of exchange rate changes on cash and cash
equivalents of continuing operations |
|
|
(1.0 |
) |
|
|
(1.0 |
) |
|
|
0.4 |
|
|
|
(1.4 |
) |
|
|
Effect of exchange rate changes on cash and cash
equivalents of discontinued operations |
|
|
- |
|
|
|
(0.3 |
) |
|
|
- |
|
|
|
1.6 |
|
|
|
(Decrease) increase in cash and cash
equivalents |
|
|
(13.5 |
) |
|
|
(249.2 |
) |
|
|
46.8 |
|
|
|
(43.1 |
) |
|
|
Cash and cash equivalents, beginning of
period |
|
|
478.4 |
|
|
|
719.1 |
|
|
|
418.1 |
|
|
|
531.5 |
|
|
|
Cash and cash equivalents of assets held for sale,
beginning of period |
|
|
- |
|
|
|
18.5 |
|
|
|
- |
|
|
|
- |
|
|
|
Cash and cash equivalents, end of period |
|
$ |
464.9 |
|
|
$ |
488.4 |
|
|
$ |
464.9 |
|
|
$ |
488.4 |
|
|
Operating Summary
|
|
|
Mine |
Period |
Tonnes Ore Mined |
Ore
Processed (Milled) |
Ore
Processed (Heap Leach) |
Grade (Mill) |
Grade (Heap Leach) |
Recovery (a)(d) |
Gold Eq Production(b) |
Gold Eq Sales(b) |
Production cost of sales |
Production cost of sales/oz(c) |
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 |
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 |
|
Q4 2022 |
3,737 |
1,627 |
- |
3.21 |
- |
90% |
143,002 |
147,019 |
$ |
96.2 |
$ |
654 |
$ |
38.3 |
$ |
90.3 |
$ |
48.7 |
|
Q3 2022 |
4,437 |
1,741 |
- |
2.72 |
- |
89% |
132,754 |
128,014 |
$ |
94.8 |
$ |
741 |
$ |
3.6 |
$ |
33.4 |
$ |
58.0 |
|
Americas |
Paracatu |
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 |
|
Q4 2022 |
13,324 |
13,847 |
- |
0.50 |
- |
81% |
180,809 |
183,190 |
$ |
130.3 |
$ |
711 |
$ |
43.9 |
$ |
43.9 |
$ |
52.7 |
|
Q3 2022 |
11,752 |
13,797 |
- |
0.45 |
- |
79% |
159,113 |
152,616 |
$ |
131.1 |
$ |
859 |
$ |
33.6 |
$ |
33.6 |
$ |
47.2 |
|
La Coipa(f) |
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 |
|
Q4 2022 |
1,047 |
933 |
- |
1.47 |
- |
84% |
67,683 |
68,135 |
$ |
39.4 |
$ |
578 |
$ |
2.6 |
$ |
46.0 |
$ |
25.6 |
|
Q3 2022 |
1,079 |
637 |
- |
1.19 |
- |
83% |
33,955 |
24,681 |
$ |
12.1 |
$ |
490 |
$ |
2.9 |
$ |
34.7 |
$ |
- |
|
Fort Knox |
Q3 2023 |
6,667 |
1,912 |
5,961 |
0.81 |
0.21 |
78% |
71,611 |
71,616 |
$ |
82.3 |
$ |
1,149 |
$ |
52.1 |
$ |
57.8 |
$ |
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 |
$ |
58.2 |
$ |
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 |
$ |
39.1 |
$ |
18.6 |
|
Q4 2022 |
12,205 |
2,395 |
11,454 |
0.69 |
0.20 |
79% |
83,739 |
87,061 |
$ |
102.1 |
$ |
1,173 |
$ |
34.4 |
$ |
39.1 |
$ |
40.9 |
|
Q3 2022 |
15,547 |
2,477 |
13,120 |
0.71 |
0.21 |
80% |
75,522 |
74,221 |
$ |
88.6 |
$ |
1,194 |
$ |
30.5 |
$ |
31.0 |
$ |
21.8 |
|
Round Mountain |
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 |
|
Q4 2022 |
5,177 |
962 |
4,772 |
0.74 |
0.36 |
74% |
61,929 |
67,484 |
$ |
95.1 |
$ |
1,409 |
$ |
41.1 |
$ |
41.1 |
$ |
19.1 |
|
Q3 2022 |
8,856 |
1,021 |
8,336 |
0.64 |
0.27 |
79% |
62,417 |
61,757 |
$ |
87.0 |
$ |
1,409 |
$ |
24.7 |
$ |
24.7 |
$ |
17.6 |
|
Bald Mountain |
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 |
|
Q4 2022 |
3,002 |
- |
2,957 |
- |
0.37 |
nm |
58,521 |
66,847 |
$ |
62.8 |
$ |
939 |
$ |
17.2 |
$ |
37.4 |
$ |
63.4 |
|
Q3 2022 |
4,152 |
- |
4,152 |
- |
0.37 |
nm |
65,394 |
52,472 |
$ |
51.2 |
$ |
976 |
$ |
10.4 |
$ |
28.2 |
$ |
39.1 |
|
(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) |
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: Q3 2023: 81.82:1; Q2
2023: 81.88:1; Q1 2023: 83.82:1; Q4 2022: 81.88:1; Q3 2022:
89.91:1. |
|
(c) |
“Production cost of sales per equivalent ounce sold” is defined
as production cost of sales divided by total gold equivalent ounces
sold from continuing operations. |
|
(d) |
"nm" means not meaningful. |
|
(e) |
"Total Cap Ex" is as reported as “Additions to property, plant
and equipment” on the interim condensed consolidated statements of
cash flows. "Capital expenditures - sustaining" is a non-GAAP
financial measure. The definition and reconciliation of this
non-GAAP financial measure is included on page 21 of this news
release. |
|
(f) |
La Coipa silver grade and recovery were as follows: Q3 2023:
106.70 g/t, 63%; Q2 2023: 109.84 g/t, 56%; Q1 2023: 125.77 g/t,
70%; Q4 2022: 137.53 g/t, 68%; Q3 2022: 121.06 g/t, 61%. |
|
|
|
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 International Financial
Reporting Standards (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.
All the non-GAAP financial measures and ratios
in this document are from continuing operations and exclude results
from the Company’s Chirano and Russian operations due to the
classification of these operations as discontinued and their sale
in 2022. As a result of the exclusion of Chirano, the following
non-GAAP financial measures and ratios are no longer on an
attributable basis, but on a total basis: production cost of sales
from continuing operations per ounce sold on a by-product basis and
all-in-sustaining cost from continuing operations per equivalent
ounce sold and per ounce sold on a by-product basis.
Adjusted net earnings from continuing
operations attributable to common shareholders and
adjusted net earnings from continuing operations 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 from continuing operations
and adjusted net earnings from continuing operations per share
measures and ratios are not necessarily indicative of net earnings
from continuing operations and earnings per share measures and
ratios as determined under IFRS.
The following table provides a reconciliation of
net earnings from continuing operations to adjusted net earnings
from continuing operations for the periods presented:
|
|
|
|
|
|
|
|
(unaudited, expressed in millions of U.S dollars,
except per share amounts) |
Three months ended |
|
Nine months ended |
|
September 30, |
|
September 30, |
|
|
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Net earnings from continuing operations attributable to common
shareholders - as reported |
$ |
109.7 |
|
$ |
65.9 |
|
|
$ |
350.9 |
|
$ |
137.9 |
|
| Adjusting
items: |
|
|
|
|
|
|
|
Foreign exchange gains |
|
(7.1 |
) |
|
(5.9 |
) |
|
|
(0.8 |
) |
|
(0.1 |
) |
|
|
Foreign exchange losses
(gains) on translation of tax basis and foreign exchange on
deferred income taxes within income tax expense |
|
36.9 |
|
|
3.1 |
|
|
|
5.2 |
|
|
(8.4 |
) |
|
|
Taxes in respect of prior
periods |
|
5.2 |
|
|
5.0 |
|
|
|
33.8 |
|
|
15.8 |
|
|
|
Reclamation (recovery)
expense |
|
(18.1 |
) |
|
(20.0 |
) |
|
|
(14.1 |
) |
|
3.9 |
|
|
|
Other(a) |
|
16.2 |
|
|
16.9 |
|
|
|
26.6 |
|
|
21.4 |
|
|
|
Tax effects of the above
adjustments |
|
1.8 |
|
|
3.7 |
|
|
|
(1.8 |
) |
|
4.4 |
|
|
|
|
|
34.9 |
|
|
2.8 |
|
|
|
48.9 |
|
|
37.0 |
|
|
Adjusted net earnings from continuing operations attributable to
common shareholders |
$ |
144.6 |
|
$ |
68.7 |
|
|
$ |
399.8 |
|
$ |
174.9 |
|
|
Weighted average number of common shares outstanding - Basic |
|
1,227.6 |
|
|
1,299.8 |
|
|
|
1,226.7 |
|
|
1,288.0 |
|
|
Adjusted net earnings from continuing operations per share |
$ |
0.12 |
|
$ |
0.05 |
|
|
$ |
0.33 |
|
$ |
0.14 |
|
|
Basic earnings per share from continuing operations attributable to
common shareholders - as reported |
$ |
0.09 |
|
$ |
0.05 |
|
|
$ |
0.29 |
|
$ |
0.11 |
|
|
|
|
|
|
|
|
|
|
(a) |
Other includes various impacts, such as one-time costs at
sites, 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. |
|
|
|
Free cash flow from continuing
operations is a non-GAAP financial measure and is defined
as net cash flow of continuing operations provided from operating
activities less additions to property, plant and equipment. 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, the free cash flow from
continuing operations measure is not necessarily indicative of
operating earnings or net cash flow of continuing operations
provided from operating activities as determined under
IFRS.
The following table provides a reconciliation of
free cash flow from continuing operations for the periods
presented:
|
|
|
|
|
|
|
|
|
(unaudited, expressed in millions of U.S dollars) |
Three months ended |
|
Nine months ended |
|
September 30, |
|
September 30, |
|
|
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Net cash flow of continuing operations provided from operating
activities - as reported |
$ |
406.8 |
|
$ |
173.2 |
|
|
$ |
1,194.4 |
|
$ |
528.2 |
|
|
|
|
|
|
|
|
|
| Less:
Additions to property, plant and equipment |
|
(283.9 |
) |
|
(197.3 |
) |
|
|
(787.0 |
) |
|
(447.4 |
) |
|
|
|
|
|
|
|
|
| Free cash
flow from continuing operations |
$ |
122.9 |
|
$ |
(24.1 |
) |
|
$ |
407.4 |
|
$ |
80.8 |
|
|
|
|
|
|
|
|
|
Adjusted operating cash flow from continuing operations is
a non-GAAP financial measure and is defined as net cash flow of
continuing operations 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 from continuing operations 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 from continuing
operations measure is not necessarily indicative of net cash flow
of continuing operations provided from operating activities as
determined under IFRS.
The following table provides a reconciliation of
adjusted operating cash flow from continuing operations for the
periods presented:
|
|
|
|
|
|
|
|
|
(unaudited, expressed in millions of U.S dollars) |
Three months ended |
|
Nine months ended |
|
September 30, |
|
September 30, |
|
|
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Net cash flow of continuing operations provided from operating
activities - as reported |
$ |
406.8 |
|
$ |
173.2 |
|
|
$ |
1,194.4 |
|
$ |
528.2 |
|
|
|
|
|
|
|
|
|
| Adjusting
items: |
|
|
|
|
|
|
|
Working capital changes: |
|
|
|
|
|
|
|
Accounts receivable and other assets |
|
21.0 |
|
|
15.6 |
|
|
|
(66.6 |
) |
|
(47.0 |
) |
|
|
Inventories |
|
10.1 |
|
|
70.0 |
|
|
|
93.2 |
|
|
222.4 |
|
|
|
Accounts payable and other liabilities, including income taxes
paid |
|
32.7 |
|
|
0.6 |
|
|
|
41.5 |
|
|
56.8 |
|
|
|
Total working capital
changes |
|
63.8 |
|
|
86.2 |
|
|
|
68.1 |
|
|
232.2 |
|
| Adjusted
operating cash flow from continuing operations |
$ |
470.6 |
|
$ |
259.4 |
|
|
$ |
1,262.5 |
|
$ |
760.4 |
|
|
|
|
|
|
|
|
|
Production cost of sales from continuing operations 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 from continuing operations 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 |
|
Nine months ended |
|
September 30, |
|
September 30, |
|
|
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Production cost of sales from continuing operations - as
reported |
$ |
520.6 |
|
$ |
465.3 |
|
|
$ |
1,502.4 |
|
$ |
1,279.2 |
|
|
Less: silver revenue(a) |
|
(52.4 |
) |
|
(23.6 |
) |
|
|
(160.6 |
) |
|
(37.0 |
) |
|
Production cost of sales from continuing operations net of silver
by-product revenue |
$ |
468.2 |
|
$ |
441.7 |
|
|
$ |
1,341.8 |
|
$ |
1,242.2 |
|
|
|
|
|
|
|
|
|
| Gold
ounces sold from continuing operations |
|
544,199 |
|
|
480,775 |
|
|
|
1,531,816 |
|
|
1,286,196 |
|
| Total
gold equivalent ounces sold from continuing operations |
|
571,248 |
|
|
494,413 |
|
|
|
1,614,547 |
|
|
1,307,219 |
|
|
Production cost of sales from continuing operations per equivalent
ounce sold(b) |
$ |
911 |
|
$ |
941 |
|
|
$ |
931 |
|
$ |
979 |
|
|
Production cost of sales from continuing operations per ounce sold
on a by-product basis |
$ |
860 |
|
$ |
919 |
|
|
$ |
876 |
|
$ |
966 |
|
|
|
|
|
|
|
|
|
See Endnotes on page 21 for
details of the footnotes referenced within the table
above.
All-in sustaining cost and attributable
all-in cost from continuing operations 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 from continuing operations per ounce sold on a
by-product basis are calculated by adjusting production
cost of sales from continuing operations, 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 |
|
Nine months ended |
|
September 30, |
|
September 30, |
|
|
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Production cost of sales from continuing operations - as
reported |
$ |
520.6 |
|
$ |
465.3 |
|
|
$ |
1,502.4 |
|
$ |
1,279.2 |
|
|
Less: silver revenue from continuing operations(a) |
|
(52.4 |
) |
|
(23.6 |
) |
|
|
(160.6 |
) |
|
(37.0 |
) |
|
Production cost of sales from continuing operations net of silver
by-product revenue |
$ |
468.2 |
|
$ |
441.7 |
|
|
$ |
1,341.8 |
|
$ |
1,242.2 |
|
|
Adjusting items: |
|
|
|
|
|
|
|
General and
administrative(d) |
|
24.0 |
|
|
27.3 |
|
|
|
80.4 |
|
|
87.5 |
|
|
|
Other operating expense -
sustaining(e) |
|
6.3 |
|
|
11.7 |
|
|
|
17.8 |
|
|
23.5 |
|
|
|
Reclamation and remediation -
sustaining(f) |
|
14.1 |
|
|
10.7 |
|
|
|
46.8 |
|
|
28.5 |
|
|
|
Exploration and business
development - sustaining(g) |
|
11.8 |
|
|
7.4 |
|
|
|
27.9 |
|
|
22.9 |
|
|
|
Additions to property, plant
and equipment - sustaining(h) |
|
159.1 |
|
|
105.9 |
|
|
|
404.2 |
|
|
224.6 |
|
|
|
Lease payments -
sustaining(i) |
|
4.2 |
|
|
5.6 |
|
|
|
24.9 |
|
|
16.3 |
|
|
All-in Sustaining Cost on a by-product basis |
$ |
687.7 |
|
$ |
610.3 |
|
|
$ |
1,943.8 |
|
$ |
1,645.5 |
|
|
Adjusting items on an attributable(c) basis: |
|
|
|
|
|
|
|
Other operating expense -
non-sustaining(e) |
|
8.7 |
|
|
11.2 |
|
|
|
27.4 |
|
|
32.3 |
|
|
|
Reclamation and remediation -
non-sustaining(f) |
|
1.2 |
|
|
2.8 |
|
|
|
5.4 |
|
|
6.1 |
|
|
|
Exploration and business
development - non-sustaining(g) |
|
38.5 |
|
|
34.6 |
|
|
|
105.8 |
|
|
82.2 |
|
|
|
Additions to property, plant
and equipment - non-sustaining(h) |
|
113.3 |
|
|
88.4 |
|
|
|
353.1 |
|
|
218.0 |
|
|
|
Lease payments -
non-sustaining(i) |
|
0.2 |
|
|
0.4 |
|
|
|
0.6 |
|
|
0.8 |
|
|
All-in Cost on a by-product basis - attributable(c) |
$ |
849.6 |
|
$ |
747.7 |
|
|
$ |
2,436.1 |
|
$ |
1,984.9 |
|
| Gold
ounces sold from continuing operations |
|
544,199 |
|
|
480,775 |
|
|
|
1,531,816 |
|
|
1,286,196 |
|
|
Production cost of sales from continuing operations per equivalent
ounce sold(b) |
$ |
911 |
|
$ |
941 |
|
|
$ |
931 |
|
$ |
979 |
|
|
All-in sustaining cost from continuing operations per ounce sold on
a by-product basis |
$ |
1,264 |
|
$ |
1,269 |
|
|
$ |
1,269 |
|
$ |
1,279 |
|
|
Attributable(c) all-in cost from continuing operations
per ounce sold on a by-product basis |
$ |
1,561 |
|
$ |
1,555 |
|
|
$ |
1,590 |
|
$ |
1,543 |
|
|
|
|
|
|
|
|
|
See Endnotes on page 21 for details
of the footnotes referenced within the table above.
The Company also assesses its all-in sustaining
cost and attributable all-in cost from continuing operations 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 from continuing operations per equivalent ounce
sold are calculated by adjusting production cost of sales
from continuing operations, 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 |
|
Nine months ended |
|
September 30, |
|
September 30, |
|
|
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Production cost of sales from continuing operations - as
reported |
$ |
520.6 |
|
$ |
465.3 |
|
|
$ |
1,502.4 |
|
$ |
1,279.2 |
|
|
Adjusting items: |
|
|
|
|
|
|
|
General and
administrative(d) |
|
24.0 |
|
|
27.3 |
|
|
|
80.4 |
|
|
87.5 |
|
|
|
Other operating expense -
sustaining(e) |
|
6.3 |
|
|
11.7 |
|
|
|
17.8 |
|
|
23.5 |
|
|
|
Reclamation and remediation -
sustaining(f) |
|
14.1 |
|
|
10.7 |
|
|
|
46.8 |
|
|
28.5 |
|
|
|
Exploration and business
development - sustaining(g) |
|
11.8 |
|
|
7.4 |
|
|
|
27.9 |
|
|
22.9 |
|
|
|
Additions to property, plant
and equipment - sustaining(h) |
|
159.1 |
|
|
105.9 |
|
|
|
404.2 |
|
|
224.6 |
|
|
|
Lease payments -
sustaining(i) |
|
4.2 |
|
|
5.6 |
|
|
|
24.9 |
|
|
16.3 |
|
|
All-in Sustaining Cost |
$ |
740.1 |
|
$ |
633.9 |
|
|
$ |
2,104.4 |
|
$ |
1,682.5 |
|
|
Adjusting items on an attributable(c) basis: |
|
|
|
|
|
|
|
Other operating expense -
non-sustaining(e) |
|
8.7 |
|
|
11.2 |
|
|
|
27.4 |
|
|
32.3 |
|
|
|
Reclamation and remediation -
non-sustaining(f) |
|
1.2 |
|
|
2.8 |
|
|
|
5.4 |
|
|
6.1 |
|
|
|
Exploration and business
development - non-sustaining(g) |
|
38.5 |
|
|
34.6 |
|
|
|
105.8 |
|
|
82.2 |
|
|
|
Additions to property, plant
and equipment - non-sustaining(h) |
|
113.3 |
|
|
88.4 |
|
|
|
353.1 |
|
|
218.0 |
|
|
|
Lease payments -
non-sustaining(i) |
|
0.2 |
|
|
0.4 |
|
|
|
0.6 |
|
|
0.8 |
|
|
All-in Cost - attributable(c) |
$ |
902.0 |
|
$ |
771.3 |
|
|
$ |
2,596.7 |
|
$ |
2,021.9 |
|
|
Gold equivalent ounces sold from continuing operations |
|
571,248 |
|
|
494,413 |
|
|
|
1,614,547 |
|
|
1,307,219 |
|
|
Production cost of sales from continuing operations per equivalent
ounce sold(b) |
$ |
911 |
|
$ |
941 |
|
|
$ |
931 |
|
$ |
979 |
|
|
All-in sustaining cost from continuing operations per equivalent
ounce sold |
$ |
1,296 |
|
$ |
1,282 |
|
|
$ |
1,303 |
|
$ |
1,287 |
|
|
Attributable(c) all-in cost from continuing operations
per equivalent ounce sold |
$ |
1,579 |
|
$ |
1,560 |
|
|
$ |
1,608 |
|
$ |
1,547 |
|
|
|
|
|
|
|
|
|
See Endnotes on page 21 for
details of the footnotes referenced within the table
above.
Capital expenditures from continuing
operations 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 this to be a useful indicator of the purpose of
capital expenditures and this distinction is an input into the
calculation of all-in sustaining costs from continuing operations
per ounce and attributable all-in costs from continuing operations
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.
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 September 30, 2023: |
Tasiast (Mauritania) |
Paracatu (Brazil) |
La Coipa (Chile) |
Fort Knox (USA) |
Round Mountain (USA) |
Bald Mountain (USA) |
Manh Choh (USA)(a) |
Total USA |
|
Other |
Total |
|
Sustaining capital expenditures |
$ |
12.2 |
$ |
58.4 |
$ |
7.5 |
$ |
52.1 |
$ |
7.7 |
$ |
20.6 |
$ |
- |
$ |
80.4 |
|
$ |
0.6 |
$ |
159.1 |
|
Non-sustaining capital expenditures |
|
65.1 |
|
- |
|
7.7 |
|
5.7 |
|
0.1 |
|
4.3 |
|
38.2 |
|
48.3 |
|
|
3.7 |
|
124.8 |
|
Additions to property, plant and equipment - per cash flow |
$ |
77.3 |
$ |
58.4 |
$ |
15.2 |
$ |
57.8 |
$ |
7.8 |
$ |
24.9 |
$ |
38.2 |
$ |
128.7 |
|
$ |
4.3 |
$ |
283.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, 2022: |
|
|
|
|
|
|
|
|
|
|
|
|
Sustaining capital expenditures |
$ |
3.6 |
$ |
33.6 |
$ |
2.9 |
$ |
30.5 |
$ |
24.7 |
$ |
10.4 |
$ |
- |
$ |
65.6 |
|
$ |
0.2 |
$ |
105.9 |
|
Non-sustaining capital expenditures |
|
29.8 |
|
- |
|
31.8 |
|
0.5 |
|
- |
|
17.8 |
|
10.0 |
|
28.3 |
|
|
1.5 |
|
91.4 |
|
Additions to property, plant and equipment - per cash flow |
$ |
33.4 |
$ |
33.6 |
$ |
34.7 |
$ |
31.0 |
$ |
24.7 |
$ |
28.2 |
$ |
10.0 |
$ |
93.9 |
|
$ |
1.7 |
$ |
197.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, expressed in millions of U.S dollars) |
|
|
|
|
Nine months ended September 30, 2023: |
Tasiast (Mauritania) |
Paracatu (Brazil) |
La Coipa (Chile) |
Fort Knox (USA) |
Round Mountain (USA) |
Bald Mountain (USA) |
Manh Choh (USA)(a) |
Total USA |
|
Other |
Total |
|
Sustaining capital expenditures |
$ |
35.9 |
$ |
125.9 |
$ |
29.0 |
$ |
142.8 |
$ |
25.6 |
$ |
43.2 |
$ |
- |
$ |
211.6 |
|
$ |
1.8 |
$ |
404.2 |
|
Non-sustaining capital expenditures |
|
187.9 |
|
- |
|
34.9 |
|
12.3 |
|
0.1 |
|
38.3 |
|
99.0 |
|
149.7 |
|
|
10.3 |
|
382.8 |
|
Additions to property, plant and equipment - per cash flow |
$ |
223.8 |
$ |
125.9 |
$ |
63.9 |
$ |
155.1 |
$ |
25.7 |
$ |
81.5 |
$ |
99.0 |
$ |
361.3 |
|
$ |
12.1 |
$ |
787.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, 2022: |
|
|
|
|
|
|
|
|
|
|
|
|
Sustaining capital expenditures |
$ |
14.5 |
$ |
80.8 |
$ |
5.2 |
$ |
44.3 |
$ |
61.2 |
$ |
18.2 |
$ |
- |
$ |
123.7 |
|
$ |
0.4 |
$ |
224.6 |
|
Non-sustaining capital expenditures |
|
62.6 |
|
- |
|
104.3 |
|
2.7 |
|
0.1 |
|
32.0 |
|
16.1 |
|
50.9 |
|
|
5.0 |
|
222.8 |
|
Additions to property, plant and equipment - per cash flow |
$ |
77.1 |
$ |
80.8 |
$ |
109.5 |
$ |
47.0 |
$ |
61.3 |
$ |
50.2 |
$ |
16.1 |
$ |
174.6 |
|
$ |
5.4 |
$ |
447.4 |
|
(a) |
Represents 100% of capital expenditures, of which 70% is
Kinross’ share. |
|
|
|
Endnotes
|
(a) |
“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. |
|
(b) |
“Production cost of sales from continuing operations per
equivalent ounce sold” is defined as production cost of sales from
continuing operations divided by total gold equivalent ounces sold
from continuing operations. |
|
(c) |
“Attributable” includes Kinross’ share of Manh Choh (70%)
costs. As Manh Choh is a non-operating site, the attributable costs
are non-sustaining costs and as such only impact the all-in-cost
measures. |
|
(d) |
“General and administrative” expenses are as reported on the
interim condensed consolidated statements of operations, net of
certain restructuring expenses. 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. |
|
(e) |
“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. |
|
(f) |
“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. |
|
(g) |
“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. |
|
(h) |
“Additions to property, plant and equipment – sustaining and
non-sustaining are as presented on page 21 of this News Release.
Non-sustaining capital expenditures included in the calculation of
attributable all-in-cost includes Kinross’ share of Manh Choh (70%)
costs. |
|
(i) |
“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. |
| |
|
APPENDIX A
Recent LP Fault zone assay results
|
Hole ID |
|
From
(m) |
To
(m) |
Width
(m) |
True
Width (m) |
Au
(g/t) |
Target |
|
BR-696 |
|
1,347.7 |
1,352.2 |
4.5 |
4.1 |
15.53 |
Bruma |
|
BR-696 |
including |
1,349.2 |
1,350.7 |
1.5 |
1.4 |
45.60 |
|
|
BR-696 |
and |
1,364.1 |
1,367.8 |
3.7 |
3.4 |
1.33 |
|
|
BR-696 |
and |
1,510.0 |
1,514.0 |
4.0 |
3.7 |
0.53 |
|
|
BR-696 |
and |
1,521.0 |
1,526.4 |
5.4 |
5.0 |
0.41 |
|
|
BR-696 |
and |
1,539.4 |
1,543.5 |
4.1 |
3.8 |
0.43 |
|
|
BR-696 |
and |
1,568.0 |
1,578.0 |
10.0 |
9.2 |
0.63 |
|
|
BR-696 |
and |
1,583.5 |
1,587.2 |
3.7 |
3.4 |
0.75 |
|
|
BR-696 |
and |
1,594.5 |
1,597.5 |
3.0 |
2.8 |
0.33 |
|
|
BR-696 |
and |
1,599.6 |
1,603.2 |
3.6 |
3.3 |
0.40 |
|
|
BR-698 |
No Significant Intersections |
Yauro |
|
BR-778 |
|
1,394.5 |
1,397.5 |
3.0 |
2.6 |
0.44 |
Yuma |
|
BR-778 |
and |
1,442.5 |
1,447.1 |
4.6 |
3.9 |
6.02 |
|
|
BR-778 |
including |
1,444.0 |
1,447.1 |
3.1 |
2.6 |
8.53 |
|
|
BR-778 |
and |
1,495.3 |
1,534.2 |
38.9 |
33.4 |
0.99 |
|
|
BR-778 |
and |
1,554.2 |
1,561.5 |
7.3 |
6.3 |
0.55 |
|
|
BR-778 |
and |
1,612.4 |
1,615.8 |
3.4 |
2.9 |
1.28 |
|
|
BR-778 |
and |
1,717.9 |
1,723.1 |
5.2 |
4.5 |
15.27 |
|
|
BR-778C1 |
|
1,392.7 |
1,396.1 |
3.4 |
2.3 |
0.64 |
Yuma |
|
BR-778C1 |
and |
1,452.8 |
1,473.4 |
20.6 |
14.2 |
5.63 |
|
|
BR-778C1 |
including |
1,466.3 |
1,473.4 |
7.1 |
4.9 |
15.57 |
|
|
BR-778C1 |
and |
1,489.0 |
1,546.7 |
57.7 |
39.8 |
0.94 |
|
|
BR-778C1 |
including |
1,534.8 |
1,540.3 |
5.5 |
3.8 |
6.16 |
|
|
BR-778C1 |
and |
1,559.2 |
1,572.8 |
13.7 |
9.4 |
4.51 |
|
|
BR-778C1 |
including |
1,565.9 |
1,568.3 |
2.4 |
1.6 |
22.81 |
|
|
BR-778C1 |
and |
1,595.3 |
1,602.5 |
7.2 |
4.9 |
2.01 |
|
|
BR-778C1 |
including |
1,598.6 |
1,600.8 |
2.2 |
1.5 |
4.23 |
|
|
BR-778C2 |
|
1,506.5 |
1,528.0 |
21.5 |
14.0 |
1.70 |
Yuma |
|
BR-778C2 |
including |
1,518.0 |
1,522.5 |
4.5 |
2.9 |
4.41 |
|
|
BR-778C2 |
and |
1,587.5 |
1,594.1 |
6.6 |
4.3 |
0.44 |
|
|
BR-778C3 |
|
1,528.2 |
1,544.3 |
16.1 |
10.8 |
1.55 |
Yuma |
|
BR-778C3 |
and |
1,554.2 |
1,557.2 |
3.0 |
2.0 |
0.61 |
|
|
BR-778C3 |
and |
1,618.7 |
1,643.0 |
24.3 |
16.3 |
1.29 |
|
|
BR-779 |
No Significant Intersections |
Brownfields Exploration |
|
BR-788 |
|
795.0 |
798.6 |
3.6 |
2.5 |
0.41 |
Yuma |
|
BR-788 |
and |
837.0 |
871.7 |
34.7 |
23.9 |
0.78 |
|
|
BR-788 |
and |
964.0 |
967.4 |
3.4 |
2.3 |
0.46 |
|
|
BR-798C1 |
|
1,159.2 |
1,171.1 |
11.9 |
8.9 |
0.52 |
Bruma |
|
BR-798C1 |
and |
1,182.9 |
1,205.3 |
22.4 |
16.8 |
0.41 |
|
|
BR-798C1 |
and |
1,248.5 |
1,251.5 |
3.0 |
2.3 |
0.37 |
|
|
BR-798C1 |
and |
1,268.0 |
1,277.0 |
9.0 |
6.8 |
1.47 |
|
|
BR-798C1 |
and |
1,361.5 |
1,370.5 |
9.0 |
6.8 |
0.83 |
|
|
BR-798C2 |
No Significant Intersections |
Bruma |
|
BR-798C2A |
|
1,200.2 |
1,204.3 |
4.0 |
3.0 |
0.87 |
Bruma |
|
BR-798C2A |
and |
1,238.0 |
1,243.0 |
5.0 |
3.8 |
0.79 |
|
|
BR-798C2A |
and |
1,252.1 |
1,265.8 |
13.7 |
10.3 |
0.64 |
|
|
BR-798C2A |
and |
1,318.0 |
1,328.0 |
10.0 |
7.5 |
0.52 |
|
|
BR-798C2A |
and |
1,490.4 |
1,494.8 |
4.4 |
3.3 |
0.61 |
|
|
BR-798C3 |
|
1,059.5 |
1,062.5 |
3.0 |
2.3 |
1.98 |
Bruma |
|
BR-798C3 |
and |
1,227.6 |
1,236.6 |
9.0 |
6.8 |
0.54 |
|
|
BR-798C3 |
and |
1,244.8 |
1,249.1 |
4.3 |
3.2 |
0.43 |
|
|
BR-798C3 |
and |
1,259.9 |
1,265.4 |
5.5 |
4.1 |
0.55 |
|
|
BR-798C3 |
and |
1,288.2 |
1,294.2 |
6.0 |
4.5 |
2.02 |
|
|
BR-798C3 |
including |
1,289.9 |
1,292.7 |
2.8 |
2.1 |
3.83 |
|
|
BR-798C3 |
and |
1,331.0 |
1,337.2 |
6.3 |
4.7 |
1.13 |
|
|
BR-798C3 |
and |
1,369.2 |
1,372.5 |
3.3 |
2.5 |
0.45 |
|
|
BR-798C4A |
No Significant Intersections |
Bruma |
|
BR-806 |
|
732.9 |
738.0 |
5.1 |
3.57 |
11.20 |
Discovery |
|
BR-806 |
including |
736.7 |
738.0 |
1.4 |
0.95 |
39.50 |
|
|
BR-806 |
and |
785.4 |
795.4 |
10.0 |
6.97 |
0.47 |
|
|
BR-806 |
and |
810.0 |
824.1 |
14.1 |
9.87 |
0.60 |
|
|
BR-806 |
and |
844.0 |
875.3 |
31.3 |
21.88 |
0.51 |
|
|
BR-813 |
and |
611.5 |
616.0 |
4.5 |
3.0 |
0.91 |
Yauro |
|
BR-813W1 |
|
746.9 |
750.0 |
3.1 |
2.3 |
3.16 |
Yauro |
|
BR-813W1 |
and |
812.5 |
817.8 |
5.3 |
3.9 |
1.02 |
|
|
BR-813W1 |
and |
988.0 |
991.0 |
3.0 |
2.2 |
0.90 |
|
|
BR-813W1 |
and |
1,068.0 |
1,071.0 |
3.0 |
2.2 |
0.67 |
|
|
BR-813W1 |
and |
1,095.4 |
1,102.8 |
7.5 |
5.5 |
1.43 |
|
|
BR-813W1 |
and |
1,136.7 |
1,140.5 |
3.8 |
2.8 |
1.31 |
|
|
BR-814 |
|
263.2 |
269.9 |
6.7 |
4.9 |
1.08 |
Yauro |
|
BR-814 |
and |
278.8 |
324.2 |
45.4 |
33.1 |
0.74 |
|
|
BR-814 |
and |
342.7 |
348.3 |
5.6 |
4.1 |
0.62 |
|
|
BR-814 |
and |
360.5 |
405.5 |
45.0 |
32.9 |
1.10 |
|
|
BR-814 |
and |
728.0 |
736.1 |
8.0 |
5.9 |
0.39 |
|
|
BR-814 |
and |
855.8 |
862.5 |
6.7 |
4.9 |
5.25 |
|
|
BR-814 |
including |
860.1 |
861.1 |
1.0 |
0.7 |
32.50 |
|
|
BR-814 |
and |
873.0 |
886.5 |
13.5 |
9.9 |
0.71 |
|
|
BR-814 |
and |
981.6 |
987.5 |
6.0 |
4.3 |
0.38 |
|
|
BR-814C1A |
|
850.5 |
853.5 |
3.0 |
2.2 |
1.95 |
Yauro |
|
BR-814C1A |
and |
867.6 |
879.0 |
11.4 |
8.3 |
5.28 |
|
|
BR-814C1A |
including |
868.6 |
877.0 |
8.4 |
6.1 |
6.95 |
|
|
BR-814C1A |
and |
880.0 |
883.0 |
3.0 |
2.2 |
0.36 |
|
|
BR-814C1A |
and |
899.4 |
903.0 |
3.6 |
2.6 |
0.54 |
|
|
BR-814C1A |
and |
927.0 |
928.5 |
1.5 |
1.1 |
17.00 |
|
|
BR-814C2A |
|
864.0 |
872.4 |
8.4 |
6.1 |
1.46 |
Yauro |
|
BR-814C2A |
|
986.5 |
992.5 |
6.0 |
4.4 |
0.39 |
|
|
BR-814C3A |
|
948.1 |
953.1 |
5.0 |
3.7 |
1.82 |
Yauro |
|
BR-814C3A |
and |
987.4 |
991.9 |
4.5 |
3.3 |
1.82 |
|
|
BR-814C3A |
and |
1,049.2 |
1,060.7 |
11.5 |
8.4 |
0.58 |
|
|
BR-814C4A |
No Significant Intersections |
Yauro |
|
BR-815 |
No Significant Intersections |
Viggo |
|
BR-816 |
|
1,026.9 |
1,032.4 |
5.5 |
4.2 |
0.51 |
Auro |
|
BR-817 |
|
769.5 |
772.5 |
3.0 |
2.5 |
0.42 |
Auro |
|
BR-817 |
and |
803.3 |
810.0 |
6.7 |
5.5 |
0.63 |
|
|
BR-817 |
and |
822.0 |
834.0 |
12.0 |
9.8 |
1.45 |
|
|
BR-818 |
|
789.0 |
793.5 |
4.5 |
3.6 |
0.51 |
Auro |
|
BR-818 |
and |
798.6 |
805.5 |
7.0 |
5.6 |
1.07 |
|
|
BR-818 |
and |
810.7 |
822.5 |
11.9 |
9.6 |
2.39 |
|
|
BR-822 |
No Significant Intersections |
Brownfields Exploration |
|
BR-823 |
|
886.5 |
895.5 |
9.0 |
7.5 |
1.02 |
Viggo |
|
BR-824 |
|
699.3 |
706.3 |
7.0 |
5.7 |
0.97 |
Viggo |
|
BR-825 |
|
696.8 |
896.4 |
199.6 |
157.7 |
0.51 |
Viggo |
|
BR-825 |
including |
741.2 |
741.8 |
0.6 |
0.5 |
147.00 |
|
|
BR-826 |
|
583.0 |
590.0 |
7.0 |
|
0.50 |
Viggo |
|
BR-830 |
|
784.6 |
791.0 |
6.5 |
5.5 |
0.45 |
Yuma |
|
BR-830 |
and |
920.2 |
928.0 |
7.9 |
6.7 |
2.66 |
|
|
BR-830 |
including |
921.2 |
924.3 |
3.1 |
2.6 |
6.07 |
|
|
BR-830 |
and |
961.1 |
969.1 |
8.0 |
6.8 |
1.01 |
|
|
BR-830 |
and |
989.0 |
1,002.1 |
13.1 |
11.1 |
0.62 |
|
|
BR-831 |
|
1,096.0 |
1,138.0 |
42.0 |
28.6 |
0.55 |
Yuma |
|
BR-831 |
and |
1,150.0 |
1,176.4 |
26.4 |
17.9 |
1.97 |
|
|
BR-831 |
including |
1,150.0 |
1,151.0 |
1.0 |
0.7 |
20.80 |
|
|
BR-832 |
|
1,128.6 |
1,148.9 |
20.3 |
18.0 |
0.88 |
Yuma |
|
BR-832 |
and |
1,164.0 |
1,177.5 |
13.5 |
12.0 |
0.48 |
|
|
BR-832 |
and |
1,193.3 |
1,207.0 |
13.7 |
12.2 |
1.30 |
|
|
BR-832 |
and |
1,240.8 |
1,260.8 |
20.0 |
17.8 |
1.50 |
|
|
BR-832 |
and |
1,273.4 |
1,285.6 |
12.3 |
10.9 |
0.38 |
|
|
BR-832 |
and |
1,294.3 |
1,311.3 |
17.1 |
15.2 |
0.40 |
|
|
BR-832 |
and |
1,362.8 |
1,368.5 |
5.7 |
5.1 |
3.79 |
|
|
BR-832 |
including |
1,363.5 |
1,368.5 |
5.0 |
4.5 |
4.21 |
|
|
BR-832C1 |
|
1,080.0 |
1,085.5 |
5.5 |
4.9 |
0.38 |
Yuma |
|
BR-832C1 |
and |
1,092.0 |
1,097.8 |
5.8 |
5.2 |
0.37 |
|
|
BR-832C1 |
and |
1,131.5 |
1,137.0 |
5.5 |
4.9 |
1.68 |
|
|
BR-832C1 |
and |
1,143.8 |
1,177.8 |
34.0 |
30.2 |
0.72 |
|
|
BR-832C2B |
|
1,122.0 |
1,159.5 |
37.5 |
33.8 |
1.02 |
Yuma |
|
BR-832C2B |
and |
1,169.7 |
1,201.5 |
31.9 |
28.7 |
1.01 |
|
|
BR-832C3 |
|
1,199.0 |
1,209.0 |
10.1 |
9.0 |
0.69 |
Yuma |
|
BR-832C3 |
and |
1,222.5 |
1,257.0 |
34.5 |
31.1 |
0.72 |
|
|
BR-832C3 |
and |
1,262.6 |
1,285.0 |
22.4 |
20.2 |
0.54 |
|
|
BR-833 |
|
468.0 |
475.5 |
7.5 |
5.0 |
0.89 |
Auro |
|
BR-833 |
and |
524.2 |
531.9 |
7.7 |
5.2 |
0.49 |
|
|
BR-834 |
|
586.9 |
589.9 |
3.0 |
2.7 |
0.57 |
Auro |
|
BR-840 |
|
627.0 |
634.8 |
7.8 |
5.1 |
0.39 |
Yauro |
|
BR-840 |
and |
759.9 |
771.9 |
12.1 |
8.0 |
0.54 |
|
|
BR-840 |
and |
1,085.9 |
1,176.7 |
90.8 |
59.9 |
0.59 |
|
|
BR-840 |
and |
1,104.6 |
1,105.6 |
1.0 |
0.7 |
24.70 |
|
|
BR-841 |
|
199.5 |
208.8 |
9.3 |
8.4 |
1.56 |
Yauro |
|
BR-841 |
and |
214.0 |
220.8 |
6.8 |
6.2 |
1.26 |
|
|
BR-841 |
and |
230.4 |
238.0 |
7.6 |
6.9 |
0.49 |
|
|
BR-841 |
and |
247.7 |
256.2 |
8.5 |
7.7 |
0.68 |
|
|
BR-841 |
and |
367.0 |
445.5 |
78.5 |
71.4 |
0.89 |
|
|
BR-841 |
including |
367.0 |
370.7 |
3.7 |
3.3 |
6.35 |
|
|
BR-841 |
and |
452.4 |
458.0 |
5.6 |
5.1 |
1.17 |
|
|
BR-841 |
and |
512.0 |
521.0 |
9.0 |
8.2 |
1.39 |
|
|
BR-841 |
and |
595.9 |
599.6 |
3.7 |
3.4 |
0.39 |
|
|
BR-841 |
and |
615.0 |
675.4 |
60.4 |
54.9 |
0.36 |
|
|
BR-841 |
and |
787.7 |
802.0 |
14.4 |
13.1 |
0.50 |
|
|
BR-842 |
|
253.3 |
276.0 |
22.8 |
20.5 |
0.93 |
Yauro |
|
BR-842 |
including |
258.4 |
260.8 |
2.4 |
2.2 |
3.49 |
|
|
BR-842 |
and |
296.7 |
302.5 |
5.9 |
5.3 |
0.55 |
|
|
BR-842 |
and |
386.8 |
401.2 |
14.4 |
12.9 |
0.75 |
|
|
BR-842 |
and |
575.4 |
581.9 |
6.5 |
5.8 |
1.65 |
|
|
BR-842 |
and |
596.4 |
677.0 |
80.6 |
72.5 |
1.54 |
|
|
BR-842 |
including |
635.8 |
651.6 |
15.8 |
14.2 |
4.82 |
|
|
BR-842 |
and |
755.1 |
769.4 |
14.3 |
12.9 |
1.97 |
|
|
BR-842 |
including |
756.7 |
761.8 |
5.1 |
4.6 |
3.09 |
|
|
BR-842 |
and |
776.0 |
782.5 |
6.5 |
5.9 |
0.60 |
|
|
BR-842 |
and |
812.9 |
838.3 |
25.5 |
22.9 |
0.67 |
|
|
BR-842 |
and |
910.9 |
917.9 |
7.0 |
6.3 |
0.71 |
|
|
BR-850 |
|
558.5 |
562.2 |
3.6 |
3.1 |
0.63 |
Discovery |
|
BR-850 |
and |
588.0 |
591.0 |
3.0 |
2.5 |
0.35 |
|
|
BR-850 |
and |
688.0 |
699.0 |
11.1 |
9.3 |
0.80 |
|
|
BR-850 |
and |
705.5 |
735.0 |
29.5 |
24.8 |
1.07 |
|
|
BR-850 |
and |
741.9 |
758.5 |
16.6 |
13.9 |
0.78 |
|
|
BR-850 |
and |
882.4 |
885.8 |
3.4 |
2.8 |
0.62 |
|
|
BR-860 |
|
352.8 |
355.8 |
3.0 |
2.3 |
1.59 |
Brownfields Exploration |
|
BR-862 |
No Significant Intersections |
Brownfields Exploration |
|
BR-863 |
|
279.5 |
282.5 |
3.0 |
2.6 |
0.34 |
Brownfields Exploration |
|
BR-870 |
|
1,212.0 |
1,223.0 |
11.0 |
7.7 |
12.32 |
Yuma |
|
BR-870 |
including |
1,213.5 |
1,223.0 |
9.5 |
6.7 |
14.07 |
|
|
BR-870 |
and |
1,225.5 |
1,228.5 |
3.0 |
2.1 |
0.35 |
|
|
BR-870 |
and |
1,239.9 |
1,242.9 |
3.0 |
2.1 |
0.87 |
|
|
BR-870 |
and |
1,272.5 |
1,278.7 |
6.3 |
4.4 |
0.84 |
|
|
BR-870 |
and |
1,291.3 |
1,295.8 |
4.5 |
3.2 |
0.42 |
|
|
BR-870C1 |
|
1,155.2 |
1,159.2 |
4.0 |
2.8 |
0.59 |
Yuma |
|
BR-870C1 |
and |
1,173.5 |
1,182.5 |
9.0 |
6.3 |
0.55 |
|
|
BR-870C1 |
and |
1,267.6 |
1,279.8 |
12.3 |
8.6 |
0.40 |
|
|
BR-870C1 |
and |
1,288.0 |
1,292.1 |
4.1 |
2.9 |
0.67 |
|
|
BR-870C1 |
and |
1,300.6 |
1,306.5 |
5.9 |
4.1 |
1.37 |
|
|
BR-870C1 |
and |
1,312.8 |
1,318.2 |
5.4 |
3.8 |
1.84 |
|
|
BR-870C2 |
No Significant Intersections |
Yuma |
|
BR-870C3 |
No Significant Intersections |
Yuma |
|
DL-085C1 |
No Significant Intersections |
Hinge |
|
DL-085C2 |
No Significant Intersections |
Hinge |
|
DL-085C3 |
|
892.0 |
900.0 |
8.0 |
6.7 |
0.86 |
Hinge |
|
DL-085C4 |
|
687.6 |
693.2 |
5.6 |
4.3 |
1.87 |
Hinge |
|
DL-085C4 |
and |
906.5 |
908.5 |
2.1 |
1.6 |
5.31 |
|
|
DL-085C5 |
|
657.8 |
664.5 |
6.7 |
5.4 |
0.97 |
Hinge |
|
DL-085C5 |
and |
1,048.0 |
1,053.5 |
5.5 |
4.4 |
4.12 |
|
|
DL-085C6 |
|
641.0 |
655.6 |
14.6 |
12.1 |
0.91 |
Hinge |
|
DL-085C6 |
and |
987.0 |
990.0 |
3.0 |
2.5 |
0.43 |
|
|
DL-085C7 |
|
868.0 |
871.5 |
3.5 |
2.8 |
259.45 |
Hinge |
|
DL-085C7 |
including |
869.8 |
870.3 |
0.5 |
0.4 |
908.00 |
|
|
DL-144 |
No Significant Intersections |
Limb |
|
DL-145 |
No Significant Intersections |
Limb |
|
DL-146 |
|
631.4 |
641.7 |
10.3 |
8.9 |
2.95 |
Limb |
|
DL-146 |
including |
634.8 |
641.7 |
6.9 |
5.9 |
4.09 |
|
|
DL-148 |
|
789.6 |
798.0 |
8.4 |
5.7 |
1.76 |
Limb |
|
REG-084 |
No Significant Intersections |
Brownfields Exploration |
|
REG-085 |
|
561.1 |
564.8 |
3.7 |
2.6 |
1.05 |
Brownfields Exploration |
Appendix B
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/c61d00f1-48aa-47cb-a07a-9fff900b1397
Composites are generated from drill intersections from fully
assayed holes completed since the August 2, 2023, news release and
includes results for 52 holes at LP, 7 holes at Hinge, 4 holes at
Limb, and 7 brownfields holes. Composites are generated using 0.3
g/t minimum grade, minimum downhole composite length of 3.0 m,
maximum linear internal dilution of 5.0 m and allows short
high-grade intervals greater than 20 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
The Hinge zone, a potential source of high-grade supplemental
feed, recently returned a high-grade intercept at 2.8 metres true
width grading 259 grams per tonne at a vertical depth of 870
metres.
An infographic accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/b4f57241-6505-4e61-98ae-29eeb10a4dbc
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) “Q3 2023 highlights from continuing
operations”, “Operational and development project highlights”, “CEO
commentary”, “Return of capital”, “Development project and
exploration update”, “Company Guidance”, and “Environment, Social
and Governance (ESG) update” 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; the Company’s liquidity; greenhouse gas
reduction initiatives and targets; the implementation and
effectiveness of the Company’s ESG or Climate Change strategy; 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, Manh Choh and the
Tasiast solar project; the Company’s liquidity outlook, as well as
references to other possible events, the future price of gold and
silver, the timing and amount of estimated future production, 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, restarting suspended or disrupted operations;
environmental risks and proceedings; and resolution of pending
litigation. The words “advance”, “continue”, “estimates”,
“expects”, “focus”, “forecast”, “guidance”, “on plan”, “on
schedule”, “on track”, “opportunity” “outlook”, “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, 2022, and the
Annual Information Form dated March 31, 2023 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 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 optimization
studies, improvement studies; scoping studies and preliminary
economic assessments, pre-feasibility and 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 future
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 share repurchases and
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, 2022, and the “Risk
Factors” set forth in the Company’s Annual Information Form dated
March 31, 2023. 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
sold15.
Specific to the Brazilian real, a 10% change
in the exchange rate would be expected to result in an approximate
$30 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
$50 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 who is a
“qualified person” within the meaning of National Instrument
43-101.
All dollar amounts are expressed as U.S.
dollars, unless otherwise noted.
Source: Kinross Gold Corporation
1 “Production cost of sales from continuing operations 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 from
continuing operations.
2 These figures are non-GAAP financial measures and
ratios, as applicable, and are defined and reconciled on pages 17
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.
3 “Margins” from continuing operations per equivalent ounce
sold is defined as average realized gold price per ounce from
continuing operations less production cost of sales from continuing
operations per equivalent ounce sold.
4 Operating cash flow figures in this release represent “Net
cash flow of continuing operations provided from operating
activities,” as reported on the interim condensed consolidated
statements of cash flows.
5 Reported net earnings figures in this news release
represent “Net earnings (loss) from continuing operations
attributable to common shareholders,” as reported on the interim
condensed consolidated statements of operations.
6 Adjusted net earnings figures in this news release represent
“Adjusted net earnings from continuing operations attributable to
common shareholders.”
7 “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 and nine months ended
September 30, 2023).
8 Total working capital changes is defined as the sum of the
changes in operating assets and liabilities, including income taxes
paid, as reported on the interim condensed consolidated statements
of cash flows (as shown in the adjusted operating cash flow from
continuing operations reconciliation table on page 18 of this news
release).
9 “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
and nine months ended September 30, 2023.
10 All reported widths are true width, all reported depths
are vertical depth below surface.
11 Economics at $1,850/oz Au; $23/oz Ag; $85/bbl
oil.
12 Considered to be non-sustaining
capital.
13 Attributable capital expenditure guidance
includes Kinross’ share of Manh Choh (70%) capital
expenditures.
14 Attributable production guidance
includes Kinross’ share of Manh Choh (70%)
production.
15 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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