Kinross Gold Corporation (TSX: K, NYSE: KGC) (“Kinross” or the
“Company”) today announced its results for the third quarter ended
September 30, 20241.This news release contains forward-looking
information about expected future events and financial and
operating performance of the Company. We refer to the risks and
assumptions set out in our Cautionary Statement on Forward-Looking
Information located on pages 24 and 25 of this release. All dollar
amounts are expressed in U.S. dollars, unless otherwise noted.
2024 third-quarter highlights:
- Production of 564,106 gold equivalent ounces
(Au eq. oz.).
- Production cost of sales of $976 per Au eq.
oz. sold and attributable production cost of
sales2 of $980 per Au eq. oz. sold.
- Attributable all-in sustaining
cost2 of $1,350 per Au eq. oz. sold.
- Operating cash flow of $733.5 million.
- Attributable free
cash flow2 record of $414.6 million and
year-to-date attributable free cash flow2 of
$905.8 million.
- Margins3 increased to $1,501 per Au eq. oz.
sold, outpacing the rise in the average realized gold price.
- Reported net earnings of $355.3 million, or
$0.29 per share, with adjusted net earnings2 of
$298.7 million, or $0.24 per share2.
- Balance sheet strength: Kinross continued
to strengthen its balance sheet, repaying $350.0 million on its
term loan in Q3 2024 and an additional $100.0 million on November
1, 2024.
- Kinross’ Board of Directors declared a
quarterly dividend of $0.03 per common share
payable on December 12, 2024, to shareholders of record at the
close of business on November 28, 2024.
- Guidance reaffirmed4: Kinross remains on
track to meet its 2024 annual guidance for production, cost of
sales, all-in sustaining cost and capital expenditures.
Operations:
- Tasiast had
another excellent quarter with higher mill throughput rates and was
again the lowest cost asset in the portfolio.
- Fort Knox
delivered record grade and recovery as production commenced from
Manh Choh during the quarter, resulting in a
significant increase in cash flow from Fort Knox.
- Paracatu increased
production compared with Q2 2024 as a result of higher grades, in
accordance with planned mine sequencing, and strong
recoveries.
- At Round Mountain Phase
S, the heap leach pad expansion is now complete, on
schedule and under budget, with solution application permits
received.
Development projects and exploration:
- At Great Bear, the
Company released the Preliminary Economic Assessment (PEA) on
September 10, 2024. The Project is expected to produce over 500,000
ounces per year at impressive margins with an all-in sustaining
cost of approximately $800 per ounce during the first 8 years. For
the Advanced Exploration (AEX) program, Kinross has submitted its
final Closure Plan to the Ontario Ministry of Mines for its
approval and is expecting to start early works construction in
the near term.
- At Round Mountain
Phase X and Curlew, exploration
drilling is progressing well, with results to date showing strong
grades and widths.
CEO commentary:J. Paul Rollinson, CEO, made the
following comments in relation to 2024 third-quarter results:
“I am pleased to report that our portfolio of
mines continued its excellent performance, and we are on track to
meet our annual guidance.
“We remain heavily focused on consistent
operational performance, cost control, capital discipline and
delivering on planned grades to generate value for our
shareholders. Our ability to hold costs in this strong gold price
environment continues to benefit our margins, which grew by 14% to
$1,501 per ounce sold compared with Q2 and the 6% increase in the
realized gold price. We also delivered record free cash flow, which
increased by 20% compared with the previous quarter.
“During the quarter, we released the PEA at
Great Bear, which reaffirms our view of a high-quality, high-margin
asset with robust economics, modest capital requirements and clear
opportunity for resource growth. Following an invitation from the
Ontario Ministry of Mines, we are pleased to have submitted our
final AEX Closure Plan for approval, which is an important
permitting milestone. We also completed the commissioning of our
Manh Choh project resulting in a significant increase in cash flow
from Fort Knox and advanced Phase X at Round Mountain.”
Summary of financial and operating
results
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Three months ended |
Nine months ended |
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September 30, |
September 30, |
|
(unaudited, in millions of U.S. dollars, except ounces, per share
amounts, and per ounce amounts) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
Operating Highlights(a) |
|
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|
|
|
Total gold equivalent ounces(b) |
|
|
|
|
|
Produced |
|
593,699 |
|
|
585,449 |
|
|
1,656,436 |
|
|
1,606,507 |
|
|
Sold |
|
578,323 |
|
|
571,248 |
|
|
1,621,483 |
|
|
1,614,547 |
|
|
|
|
|
|
|
|
|
Attributable gold equivalent ounces(b) |
|
|
|
|
|
Produced |
|
564,106 |
|
|
585,449 |
|
|
1,626,843 |
|
|
1,606,507 |
|
|
Sold |
|
550,548 |
|
|
571,248 |
|
|
1,593,708 |
|
|
1,614,547 |
|
|
|
|
|
|
|
|
|
Financial Highlights(a) |
|
|
|
|
|
Metal sales |
$ |
1,432.0 |
|
$ |
1,102.4 |
|
$ |
3,733.0 |
|
$ |
3,124.0 |
|
|
Production cost of sales |
$ |
564.3 |
|
$ |
520.6 |
|
$ |
1,613.3 |
|
$ |
1,502.4 |
|
|
Depreciation, depletion and amortization |
$ |
296.2 |
|
$ |
263.9 |
|
$ |
862.7 |
|
$ |
715.1 |
|
|
Reversal of impairment charge |
$ |
(74.1 |
) |
$ |
- |
|
$ |
(74.1 |
) |
$ |
- |
|
|
Operating earnings |
$ |
547.7 |
|
$ |
226.2 |
|
$ |
1,039.2 |
|
$ |
607.9 |
|
|
Net earnings attributable to common shareholders |
$ |
355.3 |
|
$ |
109.7 |
|
$ |
673.2 |
|
$ |
350.9 |
|
|
Basic earnings per share attributable to common shareholders |
$ |
0.29 |
|
$ |
0.09 |
|
$ |
0.55 |
|
$ |
0.29 |
|
|
Diluted earnings per share attributable to common shareholders |
$ |
0.29 |
|
$ |
0.09 |
|
$ |
0.55 |
|
$ |
0.28 |
|
|
Adjusted net earnings attributable to common shareholders(c) |
$ |
298.7 |
|
$ |
144.6 |
|
$ |
598.3 |
|
$ |
399.8 |
|
|
Adjusted net earnings per share(c) |
$ |
0.24 |
|
$ |
0.12 |
|
$ |
0.49 |
|
$ |
0.33 |
|
|
Net cash flow provided from operating activities |
$ |
733.5 |
|
$ |
406.8 |
|
$ |
1,711.9 |
|
$ |
1,194.4 |
|
|
Attributable adjusted operating cash flow(c) |
$ |
625.0 |
|
$ |
472.1 |
|
$ |
1,529.0 |
|
$ |
1,267.1 |
|
|
Capital expenditures(d) |
$ |
278.7 |
|
$ |
283.9 |
|
$ |
794.8 |
|
$ |
787.0 |
|
|
Attributable capital expenditures(c) |
$ |
275.5 |
|
$ |
272.4 |
|
$ |
772.1 |
|
$ |
757.3 |
|
|
Attributable free cash flow(c) |
$ |
414.6 |
|
$ |
137.7 |
|
$ |
905.8 |
|
$ |
443.0 |
|
|
Average realized gold price per ounce(e) |
$ |
2,477 |
|
$ |
1,929 |
|
$ |
2,304 |
|
$ |
1,935 |
|
|
Production cost of sales per equivalent ounce(b) sold(f) |
$ |
976 |
|
$ |
911 |
|
$ |
995 |
|
$ |
931 |
|
|
Attributable production cost of sales per equivalent ounce(b)
sold(c) |
$ |
980 |
|
$ |
911 |
|
$ |
997 |
|
$ |
931 |
|
|
Attributable production cost of sales per ounce sold on a
by-product basis(c) |
$ |
956 |
|
$ |
860 |
|
$ |
962 |
|
$ |
876 |
|
|
Attributable all-in sustaining cost per ounce sold on a by-product
basis(c) |
$ |
1,332 |
|
$ |
1,264 |
|
$ |
1,324 |
|
$ |
1,269 |
|
|
Attributable all-in sustaining cost per equivalent ounce(b)
sold(c) |
$ |
1,350 |
|
$ |
1,296 |
|
$ |
1,349 |
|
$ |
1,303 |
|
|
Attributable all-in cost per ounce sold on a by-product
basis(c) |
$ |
1,677 |
|
$ |
1,561 |
|
$ |
1,682 |
|
$ |
1,590 |
|
|
Attributable all-in cost per equivalent ounce(b) sold(c) |
$ |
1,689 |
|
$ |
1,579 |
|
$ |
1,697 |
|
$ |
1,608 |
|
| |
|
|
|
|
|
|
(a) All measures and ratios include 100% of the results
from Manh Choh, except measures and ratios denoted as
“attributable.” “Attributable” includes Kinross’ 70% share of Manh
Choh production, sales, cash flow, capital expenditures and costs,
as applicable. |
|
(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
2024 was 84.06:1 and 84.34:1, respectively (third quarter and first
nine months of 2023 – 81.82:1 and 82.50:1, respectively). |
|
(c) The definition and reconciliation of these non-GAAP
financial measures and ratios is included on pages 15 to 20 of this
news release. Non-GAAP financial measures and ratios have no
standardized meaning under International Financial Reporting
Standards (“IFRS”) and therefore, may not be comparable to similar
measures presented by other issuers. |
|
(d) “Capital expenditures” 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” is defined
as gold metal sales divided by total gold ounces sold. |
|
(f) “Production cost of sales per equivalent ounce sold”
is defined as production cost of sales divided by total gold
equivalent ounces sold. |
| |
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The following operating and financial results
are based on third-quarter gold equivalent production:
Production: Kinross produced
564,106 Au eq. oz. in Q3 2024, compared with 585,449 Au eq. oz. in
Q3 2023. The 4% year-over-year decrease was primarily a result of
planned lower production at Paracatu due to mine sequencing and
fewer ounces recovered from the heap leach pads at Round Mountain,
partially offset by the commencement of production from Manh
Choh.
Average realized gold price5:
The average realized gold price in Q3 2024 was $2,477 per ounce,
compared with $1,929 per ounce in Q3 2023.
Revenue: During the third
quarter, revenue increased to $1,432.0 million, compared with
$1,102.4 million during Q3 2023.
Production cost of sales:
Production cost of sales per Au eq. oz. sold was $976 for the
quarter, compared with $911 in Q3 2023.
Attributable production cost of sales per Au oz.
sold on a by-product basis2 was $956 in Q3 2024, compared with
$860 in Q3 2023, based on attributable gold sales of 541,829
ounces and attributable silver sales of 732,857 ounces.
Margins3: Kinross’ margin per
Au eq. oz. sold increased by 47% to $1,501 for Q3 2024, compared
with the Q3 2023 margin of $1,018, outpacing the 28% increase in
average realized gold price5.
Attributable all-in sustaining
cost2: Attributable all-in sustaining cost per Au eq. oz.
sold was $1,350 in Q3 2024, compared with $1,296 in Q3 2023.
In Q3 2024, attributable all-in sustaining cost
per Au oz. sold on a by-product basis was $1,332, compared with
$1,264 in Q3 2023.
Operating cash flow: Operating
cash flow was $733.5 million for Q3 2024, compared with $406.8
million for Q3 2023.
Attributable adjusted operating cash flow2 for
Q3 2024 was $625.0 million, compared with $472.1 million for Q3
2023.
Attributable free cash flow2:
Attributable free cash flow tripled to a record $414.6 million in
Q3 2024, compared with $137.7 million in Q3 2023. Year-to-date
attributable free cash flow was $905.8 million.
Earnings: Reported net earnings
more than tripled to $355.3 million for Q3 2024, or $0.29 per
share, compared with reported net earnings of $109.7 million, or
$0.09 per share, for Q3 2023.
Adjusted net earnings2 increased to $298.7
million, or $0.24 per share2, for Q3 2024, compared with $144.6
million, or $0.12 per share2, for Q3 2023.
Attributable capital
expenditures2: Attributable capital expenditures were
$275.5 million for Q3 2024, in line with $272.4 million for Q3
2023.
Balance sheet
The Company continued to strengthen its balance
sheet by repaying $350.0 million on its term loan in the quarter
and an additional $100.0 million following the quarter. As of
November 5, 2024, $650.0 million has been repaid on the $1.0
billion term loan in 2024.
Kinross had cash and cash equivalents of $472.8
million as of September 30, 2024, compared with $352.4 million at
December 31, 2023.
The Company has additional available credit6 of
$1.65 billion and total liquidity7 of approximately $2.1
billion.
On October 28, 2024, the Company amended its
$1,500.0 million revolving credit facility to extend the maturity
by two years to October 2029, restoring a five-year term.
Dividend
As part of its quarterly dividend program, the
Board of Directors declared a dividend of $0.03 per common share
payable on December 12, 2024, to shareholders of record as of
November 28, 2024.
Operating results
Mine-by-mine summaries for 2024 third-quarter
operating results may be found on pages 9 and 13 of this news
release. Highlights include the following:
Tasiast delivered another
strong quarter, with production increasing compared with Q2 2024
mainly due to record mill throughput, and cost of sales per ounce
sold increased due to higher royalty costs relating to higher gold
prices. Production decreased compared with Q3 2023 mainly as a
result of a decrease in mill grades, and cost of sales per ounce
sold was slightly higher due to the lower production and higher
royalty costs.
At Paracatu, production
increased quarter-over-quarter mainly due to higher grades and
recoveries as a result of the addition of Knelson gravity
concentrators to the processing circuit, and cost of sales per
ounce sold decreased mainly due to the higher production.
Production was lower compared with Q3 2023 mainly due to the timing
of ounces processed through the mill and lower grades according to
the planned mine sequence. Cost of sales per ounce sold was higher
mainly due to the planned decrease in grades and production
compared with Q3 2023.
At La Coipa, production was
lower quarter-over-quarter mainly due to lower mill throughput and
recoveries. Cost of sales per ounce sold was higher
quarter-over-quarter mainly due to the lower production.
Year-over-year, production decreased as a result of lower mill
throughput, and cost of sales per ounce sold increased primarily
due to the lower production and higher mill maintenance costs.
At La Coipa, mill throughput is being managed
while optimization initiatives are implemented. Full-year
production guidance at La Coipa remains on track.
At Fort Knox, production
increased significantly quarter-over-quarter and year-over-year due
to the commencement of production from higher-grade Manh
Choh ore. Fort Knox realized record grade and recovery,
resulting in a significant increase in cash flow. Cost of sales per
ounce sold decreased in both comparable periods mainly due to the
increase in production.
Construction and commissioning of the Fort Knox
mill modifications have been completed.
At Round Mountain, production
decreased quarter-over-quarter and year-over-year mainly due to
fewer ounces recovered from the heap leach pads. Cost of sales per
ounce sold was in line quarter-over-quarter and was higher
year-over-year mainly due to the decrease in production and higher
cost ounces produced from the heap leach pads.
At Round Mountain Phase S,
mining remains on track. Construction of the heap leach pad
expansion is complete, on schedule and under budget, with solution
application permits received.
At Bald Mountain, production
was lower quarter-over-quarter due to the timing of ounces produced
from the heap leach pads. Production increased year-over-year due
to higher grades, partially offset by the timing of ounces
recovered from the heap leach pads. Cost of sales per ounce sold
was higher in both comparable periods as a result of higher cost
ounces produced from the heap leach pads.
Development Projects and
Exploration
Great Bear
Kinross continues to make excellent progress at
the Great Bear project.
Kinross released the PEA for Great Bear on
September 10, 2024. The PEA provided visibility into the potential
production scale, construction capital, all-in sustaining cost and
margins for both the open pit and the underground. The PEA
represents a point in time estimate and is only a window into the
long-term potential of the asset given the indications of continued
mineralization at depth.
The PEA supports the Company’s acquisition
thesis of a top-tier, high-margin operation in a stable
jurisdiction with strong infrastructure. Based on mineral resources
drilled to date, the PEA outlines a high-grade combined open pit
and underground mine with an initial planned mine life of
approximately 12 years and production cost of sales of $594
per ounce. The Project is expected to produce over 500,000 ounces
per year at an all-in sustaining cost of approximately $800
per ounce during the first eight years through a conventional,
modest capital 10,000 tonne per day mill8.
Kinross also released an updated mineral
resource estimate for the project, increasing the Inferred resource
estimate by 568 koz. to 3.9 Moz., which is in addition to the
Measured & Indicated resource estimate of 2.7 Moz. The mineral
resource estimate and PEA for the Great Bear project are
available here.
For the AEX program, permitting, detailed
engineering, execution planning, and procurement continue to
advance. Kinross has submitted its final Closure Plan to the
Ontario Ministry of Mines and approval is expected shortly. This is
an important permit milestone that is required for all AEX
construction activities. The Closure Plan will allow for the
immediate commencement of early works construction on the site
including laydown areas, temporary offices, and
earthworks.
The Company is focused on progressing the AEX
program to begin drilling underground to continue unlocking the
full potential of the asset, with construction of the underground
decline planned to commence in 2025.
For the Main Project,
Kinross expects to advance engineering definition
and execution planning following the selection of design
partners later this year.
Following the receipt of the Tailored Impact
Statement Guidelines earlier this year, the Company continues to
work with the Impact Assessment Agency of Canada on advancing
its Impact Statement, which is planned to be
submitted later in 2025.
Kinross will also be working closely with the
Ontario authorities on obtaining provincial permits, similar
to the AEX permits, for the Main Project.
In 2025, Kinross intends to conduct regional
exploration with the goal of identifying new open pit and
underground deposits.
Round Mountain Phase X
Infill drilling on the lower zone of the primary
Phase X exploration target commenced in Q3, as
planned, alongside continued opportunity drilling outside the
primary Phase X exploration target.
The drilling in Q3 has demonstrated strong
grades and widths from within the primary Phase X target:
- DX-0071: 36.6m @ 10.9 g/t Au Eq.
- DX-0078: 32.0m @ 7.7 g/t Au Eq.
- DX-0070: 20.5m @ 10.5 g/t Au Eq.
- DX-0074: 27.7m @ 7.7 g/t Au Eq.
- DX-0075: 25.3m @ 5.0 g/t Au Eq.
- DX-0072: 20.4m @ 5.8 g/t Au Eq.
Drilling outside of the primary exploration
target also continues to indicate strong grades and widths.
These results continue to support the Company’s
hypothesis of potential for higher-margin mining from a bulk
underground operation.
See Appendix A for a Phase X long section.
Curlew Basin exploration
At Curlew, drilling progressed
in the third quarter with three drill rigs active underground
testing the Stealth (ST) and EVP Zones. Highlights from holes
drilled in the quarter include (true widths):
- Hole 1313 returned 9.73m @ 13.00 g/t Au from the ST Zone
- Hole 1458 returned 13.20m @ 5.20 g/t Au from the ST Zone
- Hole 1446 returned 11.20m @ 9.50 g/t Au from the EVP Zone
Drilling this year expanded mineralization in
zones with favourable grade and width to support higher-margin
production.
See Appendix B for a Curlew Basin long section.
Chile
Kinross is progressing baseline studies at
Lobo-Marte and continues to engage and build
relationships with communities and government stakeholders.
Lobo-Marte continues to be a potential
large, low-cost mine upon the conclusion of mining at La Coipa
where Kinross remains focused on potential opportunities to extend
mine life.
Company Guidance4 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 pages 24 and 25.
Kinross is on track to meet its 2024 production
guidance of 2.1 million Au eq. oz. (+/- 5%), as well as its
production cost of sales, all-in sustaining cost and capital
expenditure guidance ranges.
Kinross’ annual production is expected to remain
stable in 2025 and 2026 at approximately 2.0 million Au eq.
oz. per year.
Sustainability
In the third quarter, Kinross continued to
advance Sustainability initiatives. At Tasiast, and in partnership
with local institutions, 90 apprentices received certificates of
recognition for training aimed at equipping young Mauritanians with
in-demand technical skills in growing sectors such as renewable
energy, electrical, mechanical, refrigeration and carpentry. Since
the program’s inception in 2018, nearly 350 young people have
completed their training.
Bald Mountain received the Nevada Mining
Association’s award for ‘Leadership in Concurrent Reclamation.’ The
award recognizes the successful reclamation of a former heap leach
facility that was regraded and revegetated in 2020, and today
provides a natural ecosystem for livestock and wildlife.
Committed to advancing career opportunities for
women in mining, Kinross nominated seven mentors and three mentees
to the 2024 International Women in Mining Resources Mentoring
Program. The Company also recently welcomed 30 new participants to
the internally developed Women at Kinross program, a six-month
learning and coaching initiative now in its fourth cohort.
Conference call details
In connection with this news release, Kinross
will hold a conference call and audio webcast on Wednesday,
November 6, 2024, 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)
596-4144; Passcode: 9135525Outside of Canada &
US – 1 (646) 968-2525; Passcode: 9135525
Replay (available up to 14 days after the
call):
Canada & US toll-free – 1 (800)
770-2030; Passcode: 9135525Outside of Canada &
US – 1 (647) 362-9199; Passcode: 9135525
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.
About Kinross Gold Corporation
Kinross is a Canadian-based global senior gold
mining company with operations and projects in the United States,
Brazil, Mauritania, Chile and Canada. Our focus is on delivering
value based on the core principles of responsible mining,
operational excellence, disciplined growth, and balance sheet
strength. Kinross maintains listings on the Toronto Stock Exchange
(symbol: K) and the New York Stock Exchange (symbol: KGC).
Media Contact Victoria BarringtonSenior
Director, Corporate Communicationsphone:
647-788-4153victoria.barrington@kinross.com
Investor Relations ContactDavid ShaverSenior
Vice-Presidentphone: 416-365-2761InvestorRelations@kinross.com
Review of operations
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Three months ended September 30, (unaudited) |
Gold equivalent ounces |
|
|
|
|
|
|
|
|
|
|
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Produced |
|
Sold |
|
Production cost of sales ($millions) |
|
Production cost of sales/equivalent ounce
sold |
|
|
2024 |
2023 |
|
2024 |
2023 |
|
2024 |
2023 |
|
2024 |
2023 |
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|
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|
Tasiast |
162,155 |
|
171,140 |
|
|
158,521 |
|
162,823 |
|
|
109.0 |
|
108.5 |
|
|
688 |
|
666 |
|
|
Paracatu |
146,174 |
|
172,482 |
|
|
145,235 |
|
167,105 |
|
|
146.1 |
|
141.2 |
|
|
1,006 |
|
845 |
|
|
La Coipa |
50,502 |
|
65,975 |
|
|
48,594 |
|
65,856 |
|
|
52.2 |
|
41.4 |
|
|
1,074 |
|
629 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Fort Knox |
149,093 |
|
71,611 |
|
|
140,121 |
|
71,616 |
|
|
134.2 |
|
82.3 |
|
|
958 |
|
1,149 |
|
|
Round Mountain |
42,279 |
|
63,648 |
|
|
41,436 |
|
61,931 |
|
|
63.8 |
|
93.1 |
|
|
1,540 |
|
1,503 |
|
|
Bald Mountain |
43,496 |
|
40,593 |
|
|
44,410 |
|
41,300 |
|
|
58.9 |
|
53.9 |
|
|
1,326 |
|
1,305 |
|
|
United States Total |
234,868 |
|
175,852 |
|
|
225,967 |
|
174,847 |
|
|
256.9 |
|
229.3 |
|
|
1,137 |
|
1,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations Total(a) |
593,699 |
|
585,449 |
|
|
578,323 |
|
571,248 |
|
|
564.3 |
|
520.6 |
|
|
976 |
|
911 |
|
|
Less: Manh Choh non-controlling interest (30%) |
(29,593 |
) |
- |
|
|
(27,775 |
) |
- |
|
|
(24.9 |
) |
- |
|
|
|
|
|
|
|
Attributable Total(a) |
564,106 |
|
585,449 |
|
|
550,548 |
|
571,248 |
|
|
539.4 |
|
520.6 |
|
|
980 |
|
911 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, (unaudited) |
|
Gold equivalent ounces |
|
|
|
|
|
|
|
|
|
|
|
|
|
Produced |
|
Sold |
|
Production cost of sales ($millions) |
|
Production cost of sales/equivalent ounce
sold |
|
|
2024 |
2023 |
|
|
2024 |
2023 |
|
|
2024 |
2023 |
|
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tasiast |
482,983 |
|
460,029 |
|
|
465,573 |
|
443,866 |
|
|
311.0 |
|
296.4 |
|
|
668 |
|
668 |
|
|
Paracatu |
404,675 |
|
460,059 |
|
|
403,519 |
|
459,338 |
|
|
417.0 |
|
394.4 |
|
|
1,033 |
|
859 |
|
|
La Coipa |
187,598 |
|
186,315 |
|
|
183,225 |
|
195,014 |
|
|
163.1 |
|
129.9 |
|
|
890 |
|
666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fort Knox |
272,357 |
|
206,436 |
|
|
266,890 |
|
206,226 |
|
|
311.5 |
|
239.2 |
|
|
1,167 |
|
1,160 |
|
|
Round Mountain |
172,418 |
|
179,926 |
|
|
169,654 |
|
177,569 |
|
|
248.3 |
|
275.1 |
|
|
1,464 |
|
1,549 |
|
|
Bald Mountain |
136,405 |
|
113,742 |
|
|
131,469 |
|
130,764 |
|
|
161.6 |
|
166.4 |
|
|
1,229 |
|
1,273 |
|
|
United States Total |
581,180 |
|
500,104 |
|
|
568,013 |
|
514,559 |
|
|
721.4 |
|
680.7 |
|
|
1,270 |
|
1,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations Total(a) |
1,656,436 |
|
1,606,507 |
|
|
1,621,483 |
|
1,614,547 |
|
|
1,613.3 |
|
1,502.4 |
|
|
995 |
|
931 |
|
|
Less: Manh Choh non-controlling interest (30%) |
(29,593 |
) |
- |
|
|
(27,775 |
) |
- |
|
|
(24.9 |
) |
- |
|
|
|
|
|
|
|
Attributable Total(a) |
1,626,843 |
|
1,606,507 |
|
|
1,593,708 |
|
1,614,547 |
|
|
1,588.4 |
|
1,502.4 |
|
|
997 |
|
931 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Totals include immaterial sales and related costs from
Maricunga for each period presented. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interim condensed consolidated balance
sheets
| |
|
|
|
|
|
|
(unaudited, expressed in millions of U.S. dollars, except share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at |
|
|
|
|
September 30, |
|
December 31, |
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
472.8 |
|
|
$ |
352.4 |
|
|
|
Restricted cash |
|
|
10.8 |
|
|
|
9.8 |
|
|
|
Accounts receivable and other assets |
|
|
307.6 |
|
|
|
268.7 |
|
|
|
Current income tax recoverable |
|
|
1.1 |
|
|
|
3.4 |
|
|
|
Inventories |
|
|
1,232.2 |
|
|
|
1,153.0 |
|
|
|
Unrealized fair value of derivative assets |
|
|
5.6 |
|
|
|
15.0 |
|
|
|
|
|
|
2,030.1 |
|
|
|
1,802.3 |
|
|
|
Non-current assets |
|
|
|
|
|
|
Property, plant and equipment |
|
|
7,943.1 |
|
|
|
7,963.2 |
|
|
|
Long-term investments |
|
|
64.7 |
|
|
|
54.7 |
|
|
|
Other long-term assets |
|
|
707.9 |
|
|
|
710.6 |
|
|
|
Deferred tax assets |
|
|
12.6 |
|
|
|
12.5 |
|
|
|
Total assets |
|
$ |
10,758.4 |
|
|
$ |
10,543.3 |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
548.1 |
|
|
$ |
531.5 |
|
|
|
Current income tax payable |
|
|
205.8 |
|
|
|
92.9 |
|
|
|
Current portion of long-term debt and credit facilities |
|
|
449.7 |
|
|
|
- |
|
|
|
Current portion of provisions |
|
|
51.1 |
|
|
|
48.8 |
|
|
|
Other current liabilities |
|
|
7.9 |
|
|
|
12.3 |
|
|
|
|
|
|
1,262.6 |
|
|
|
685.5 |
|
|
|
Non-current liabilities |
|
|
|
|
|
|
Long-term debt and credit facilities |
|
|
1,235.0 |
|
|
|
2,232.6 |
|
|
|
Provisions |
|
|
903.8 |
|
|
|
889.9 |
|
|
|
Long-term lease liabilities |
|
|
15.0 |
|
|
|
17.5 |
|
|
|
Other long-term liabilities |
|
|
93.8 |
|
|
|
82.4 |
|
|
|
Deferred tax liabilities |
|
|
455.4 |
|
|
|
449.7 |
|
|
|
Total liabilities |
|
$ |
3,965.6 |
|
|
$ |
4,357.6 |
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
Common shareholders' equity |
|
|
|
|
|
|
Common share capital |
|
$ |
4,486.8 |
|
|
$ |
4,481.6 |
|
|
|
Contributed surplus |
|
|
10,641.4 |
|
|
|
10,646.0 |
|
|
|
Accumulated deficit |
|
|
(8,420.0 |
) |
|
|
(8,982.6 |
) |
|
|
Accumulated other comprehensive loss |
|
|
(62.3 |
) |
|
|
(61.3 |
) |
|
|
Total common shareholders' equity |
|
|
6,645.9 |
|
|
|
6,083.7 |
|
|
|
Non-controlling interests |
|
|
146.9 |
|
|
|
102.0 |
|
|
|
Total equity |
|
$ |
6,792.8 |
|
|
$ |
6,185.7 |
|
|
|
Total liabilities and equity |
|
$ |
10,758.4 |
|
|
$ |
10,543.3 |
|
|
|
|
|
|
|
|
|
|
Common shares |
|
|
|
|
|
|
Authorized |
|
Unlimited |
|
|
Unlimited |
|
|
|
Issued and outstanding |
|
|
1,229,048,190 |
|
|
|
1,227,837,974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interim condensed consolidated statements of
operations
| |
|
|
|
|
|
|
|
|
|
|
(unaudited, expressed in millions of U.S. dollars, except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
|
|
September 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
Metal sales |
|
$ |
1,432.0 |
|
|
$ |
1,102.4 |
|
|
$ |
3,733.0 |
|
|
$ |
3,124.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
|
|
|
|
|
|
|
|
Production cost of sales |
|
|
564.3 |
|
|
|
520.6 |
|
|
|
1,613.3 |
|
|
|
1,502.4 |
|
|
|
Depreciation, depletion and amortization |
|
|
296.2 |
|
|
|
263.9 |
|
|
|
862.7 |
|
|
|
715.1 |
|
|
|
Reversal of impairment charge |
|
|
(74.1 |
) |
|
|
- |
|
|
|
(74.1 |
) |
|
|
- |
|
|
|
Total cost of sales |
|
|
786.4 |
|
|
|
784.5 |
|
|
|
2,401.9 |
|
|
|
2,217.5 |
|
|
|
Gross profit |
|
|
645.6 |
|
|
|
317.9 |
|
|
|
1,331.1 |
|
|
|
906.5 |
|
|
|
Other operating expense |
|
|
21.1 |
|
|
|
14.9 |
|
|
|
50.6 |
|
|
|
82.1 |
|
|
|
Exploration and business development |
|
|
49.6 |
|
|
|
51.0 |
|
|
|
147.0 |
|
|
|
134.3 |
|
|
|
General and administrative |
|
|
27.2 |
|
|
|
25.8 |
|
|
|
94.3 |
|
|
|
82.2 |
|
|
|
Operating earnings |
|
|
547.7 |
|
|
|
226.2 |
|
|
|
1,039.2 |
|
|
|
607.9 |
|
|
|
Other expense - net |
|
|
(6.0 |
) |
|
|
(0.3 |
) |
|
|
(0.2 |
) |
|
|
(6.3 |
) |
|
|
Finance income |
|
|
6.3 |
|
|
|
11.3 |
|
|
|
14.7 |
|
|
|
32.2 |
|
|
|
Finance expense |
|
|
(23.5 |
) |
|
|
(25.9 |
) |
|
|
(66.8 |
) |
|
|
(79.4 |
) |
|
|
Earnings before tax |
|
|
524.5 |
|
|
|
211.3 |
|
|
|
986.9 |
|
|
|
554.4 |
|
|
|
Income tax expense - net |
|
|
(134.2 |
) |
|
|
(102.4 |
) |
|
|
(281.1 |
) |
|
|
(204.2 |
) |
|
|
Net earnings |
|
$ |
390.3 |
|
|
$ |
108.9 |
|
|
$ |
705.8 |
|
|
$ |
350.2 |
|
|
|
Net earnings (loss) attributable to: |
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
$ |
35.0 |
|
|
$ |
(0.8 |
) |
|
$ |
32.6 |
|
|
$ |
(0.7 |
) |
|
|
Common shareholders |
|
$ |
355.3 |
|
|
$ |
109.7 |
|
|
$ |
673.2 |
|
|
$ |
350.9 |
|
|
|
Earnings per share attributable to common
shareholders |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.29 |
|
|
$ |
0.09 |
|
|
$ |
0.55 |
|
|
$ |
0.29 |
|
|
|
Diluted |
|
$ |
0.29 |
|
|
$ |
0.09 |
|
|
$ |
0.55 |
|
|
$ |
0.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
Net inflow (outflow) of cash related to the following
activities: |
|
|
|
|
|
|
|
|
|
|
Operating: |
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
$ |
390.3 |
|
|
$ |
108.9 |
|
|
$ |
705.8 |
|
|
$ |
350.2 |
|
|
|
Adjustments to reconcile net earnings to net cash provided from
operating activities: |
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
296.2 |
|
|
|
263.9 |
|
|
|
862.7 |
|
|
|
715.1 |
|
|
|
Reversal of impairment charge |
|
|
(74.1 |
) |
|
|
- |
|
|
|
(74.1 |
) |
|
|
- |
|
|
|
Share-based compensation expense |
|
|
1.3 |
|
|
|
2.9 |
|
|
|
6.6 |
|
|
|
4.3 |
|
|
|
Finance expense |
|
|
23.5 |
|
|
|
25.9 |
|
|
|
66.8 |
|
|
|
79.4 |
|
|
|
Deferred tax expense |
|
|
21.6 |
|
|
|
74.1 |
|
|
|
9.0 |
|
|
|
92.8 |
|
|
|
Foreign exchange losses and other |
|
|
8.9 |
|
|
|
13.0 |
|
|
|
16.8 |
|
|
|
34.8 |
|
|
|
Reclamation recovery |
|
|
- |
|
|
|
(18.1 |
) |
|
|
- |
|
|
|
(14.1 |
) |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
Accounts receivable and other assets |
|
|
(24.9 |
) |
|
|
(21.0 |
) |
|
|
26.4 |
|
|
|
66.6 |
|
|
|
Inventories |
|
|
(11.5 |
) |
|
|
(10.1 |
) |
|
|
(3.1 |
) |
|
|
(93.2 |
) |
|
|
Accounts payable and accrued liabilities |
|
|
121.4 |
|
|
|
(15.0 |
) |
|
|
245.7 |
|
|
|
70.4 |
|
|
|
Cash flow provided from operating activities |
|
|
752.7 |
|
|
|
424.5 |
|
|
|
1,862.6 |
|
|
|
1,306.3 |
|
|
|
Income taxes paid |
|
|
(19.2 |
) |
|
|
(17.7 |
) |
|
|
(150.7 |
) |
|
|
(111.9 |
) |
|
|
Net cash flow provided from operating
activities |
|
|
733.5 |
|
|
|
406.8 |
|
|
|
1,711.9 |
|
|
|
1,194.4 |
|
|
|
Investing: |
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
|
(278.7 |
) |
|
|
(283.9 |
) |
|
|
(794.8 |
) |
|
|
(787.0 |
) |
|
|
Interest paid capitalized to property, plant and equipment |
|
|
(33.0 |
) |
|
|
(43.0 |
) |
|
|
(84.9 |
) |
|
|
(89.8 |
) |
|
|
Net (additions) disposals to long-term investments and other
assets |
|
|
(11.4 |
) |
|
|
(2.5 |
) |
|
|
(30.2 |
) |
|
|
2.4 |
|
|
|
(Increase) decrease in restricted cash - net |
|
|
(1.3 |
) |
|
|
(0.2 |
) |
|
|
(1.0 |
) |
|
|
1.2 |
|
|
|
Interest received and other - net |
|
|
6.0 |
|
|
|
6.6 |
|
|
|
13.7 |
|
|
|
13.5 |
|
|
|
Net cash flow of continuing operations used in investing
activities |
|
|
(318.4 |
) |
|
|
(323.0 |
) |
|
|
(897.2 |
) |
|
|
(859.7 |
) |
|
|
Net cash flow of discontinued operations provided from
investing activities |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
45.0 |
|
|
|
Financing: |
|
|
|
|
|
|
|
|
|
|
Repayment of debt |
|
|
(350.0 |
) |
|
|
(550.0 |
) |
|
|
(550.0 |
) |
|
|
(770.0 |
) |
|
|
Proceeds from issuance or drawdown of debt |
|
|
- |
|
|
|
488.1 |
|
|
|
- |
|
|
|
588.1 |
|
|
|
Interest paid |
|
|
(17.1 |
) |
|
|
(26.5 |
) |
|
|
(35.6 |
) |
|
|
(53.0 |
) |
|
|
Payment of lease liabilities |
|
|
(3.3 |
) |
|
|
(4.4 |
) |
|
|
(10.1 |
) |
|
|
(25.5 |
) |
|
|
Funding from non-controlling interest |
|
|
4.1 |
|
|
|
27.0 |
|
|
|
31.3 |
|
|
|
38.8 |
|
|
|
Distributions to non-controlling interest |
|
|
(19.5 |
) |
|
|
- |
|
|
|
(19.5 |
) |
|
|
- |
|
|
|
Dividends paid to common shareholders |
|
|
(36.9 |
) |
|
|
(36.8 |
) |
|
|
(110.6 |
) |
|
|
(110.5 |
) |
|
|
Other - net |
|
|
0.1 |
|
|
|
6.3 |
|
|
|
0.4 |
|
|
|
(1.2 |
) |
|
|
Net cash flow used in financing activities |
|
|
(422.6 |
) |
|
|
(96.3 |
) |
|
|
(694.1 |
) |
|
|
(333.3 |
) |
|
|
Effect of exchange rate changes on cash and cash
equivalents |
|
|
0.3 |
|
|
|
(1.0 |
) |
|
|
(0.2 |
) |
|
|
0.4 |
|
|
|
(Decrease) increase in cash and cash
equivalents |
|
|
(7.2 |
) |
|
|
(13.5 |
) |
|
|
120.4 |
|
|
|
46.8 |
|
|
|
Cash and cash equivalents, beginning of
period |
|
|
480.0 |
|
|
|
478.4 |
|
|
|
352.4 |
|
|
|
418.1 |
|
|
|
Cash and cash equivalents, end of period |
|
$ |
472.8 |
|
|
$ |
464.9 |
|
|
$ |
472.8 |
|
|
$ |
464.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating Summary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mine |
Period |
Tonnes Ore Mined |
Ore Processed (Milled) |
Ore Processed (Heap Leach) |
Grade (Mill) |
Grade (Heap Leach) |
Recovery (a)(b) |
Gold Eq Production(c) |
Gold Eq Sales(c) |
Production cost of sales |
Production cost of
sales/oz(d) |
Cap Ex - sustaining(e) |
Total Cap Ex (e) |
DD&A |
|
|
|
|
('000 tonnes) |
('000 tonnes) |
('000 tonnes) |
(g/t) |
(g/t) |
(%) |
(ounces) |
(ounces) |
($ millions) |
($/ounce) |
($ millions) |
($ millions) |
($ millions) |
|
West Africa |
Tasiast |
Q3 2024 |
1,748 |
2,203 |
- |
2.46 |
- |
91 |
% |
162,155 |
158,521 |
$ |
109.0 |
$ |
688 |
$ |
13.5 |
$ |
83.8 |
$ |
94.3 |
|
Q2 2024 |
1,985 |
2,161 |
- |
2.70 |
- |
92 |
% |
161,629 |
156,038 |
$ |
102.3 |
$ |
656 |
$ |
7.0 |
$ |
75.2 |
$ |
84.0 |
|
Q1 2024 |
2,044 |
2,073 |
- |
2.46 |
- |
91 |
% |
159,199 |
151,014 |
$ |
99.7 |
$ |
660 |
$ |
10.1 |
$ |
79.5 |
$ |
77.9 |
|
Q4 2023 |
2,937 |
2,056 |
- |
3.04 |
- |
93 |
% |
160,764 |
171,199 |
$ |
110.4 |
$ |
645 |
$ |
9.7 |
$ |
85.2 |
$ |
70.6 |
|
Q3 2023 |
3,486 |
1,796 |
- |
3.10 |
- |
92 |
% |
171,140 |
162,823 |
$ |
108.5 |
$ |
666 |
$ |
12.2 |
$ |
77.3 |
$ |
69.0 |
|
Americas |
Paracatu |
Q3 2024 |
13,127 |
14,551 |
- |
0.38 |
- |
81 |
% |
146,174 |
145,235 |
$ |
146.1 |
$ |
1,006 |
$ |
41.2 |
$ |
41.2 |
$ |
52.6 |
|
Q2 2024 |
14,094 |
15,053 |
- |
0.35 |
- |
80 |
% |
130,228 |
130,174 |
$ |
135.2 |
$ |
1,039 |
$ |
44.6 |
$ |
44.6 |
$ |
45.7 |
|
Q1 2024 |
14,078 |
15,609 |
- |
0.31 |
- |
79 |
% |
128,273 |
128,110 |
$ |
135.7 |
$ |
1,059 |
$ |
19.6 |
$ |
19.6 |
$ |
46.7 |
|
Q4 2023 |
16,865 |
15,279 |
- |
0.35 |
- |
79 |
% |
127,940 |
132,886 |
$ |
144.2 |
$ |
1,085 |
$ |
41.6 |
$ |
41.6 |
$ |
43.3 |
|
Q3 2023 |
14,725 |
14,669 |
- |
0.41 |
- |
79 |
% |
172,482 |
167,105 |
$ |
141.2 |
$ |
845 |
$ |
58.4 |
$ |
58.4 |
$ |
53.1 |
|
La Coipa(f) |
Q3 2024 |
786 |
809 |
- |
2.17 |
- |
80 |
% |
50,502 |
48,594 |
$ |
52.2 |
$ |
1,074 |
$ |
21.3 |
$ |
24.9 |
$ |
33.5 |
|
Q2 2024 |
690 |
882 |
- |
1.97 |
- |
84 |
% |
65,851 |
63,506 |
$ |
58.8 |
$ |
926 |
$ |
10.7 |
$ |
10.7 |
$ |
45.8 |
|
Q1 2024 |
1,035 |
827 |
- |
2.09 |
- |
87 |
% |
71,245 |
71,125 |
$ |
52.1 |
$ |
733 |
$ |
7.2 |
$ |
7.2 |
$ |
50.0 |
|
Q4 2023 |
1,591 |
1,188 |
- |
1.92 |
- |
78 |
% |
73,823 |
73,477 |
$ |
52.9 |
$ |
720 |
$ |
7.0 |
$ |
10.9 |
$ |
54.8 |
|
Q3 2023 |
1,137 |
1,017 |
- |
1.69 |
- |
81 |
% |
65,975 |
65,856 |
$ |
41.4 |
$ |
629 |
$ |
7.5 |
$ |
15.2 |
$ |
48.3 |
|
Fort Knox (100%)(g) |
Q3 2024 |
7,612 |
1,105 |
5,822 |
4.03 |
0.19 |
91 |
% |
149,093 |
140,121 |
$ |
134.2 |
$ |
958 |
$ |
56.6 |
$ |
70.4 |
$ |
37.2 |
|
Q2 2024 |
8,331 |
2,003 |
6,385 |
0.85 |
0.22 |
81 |
% |
69,914 |
70,477 |
$ |
94.8 |
$ |
1,345 |
$ |
47.6 |
$ |
89.2 |
$ |
25.9 |
|
Q1 2024 |
10,037 |
1,850 |
8,778 |
0.67 |
0.24 |
76 |
% |
53,350 |
56,292 |
$ |
82.5 |
$ |
1,466 |
$ |
37.7 |
$ |
78.6 |
$ |
20.5 |
|
Q4 2023 |
11,018 |
2,173 |
9,930 |
0.69 |
0.22 |
78 |
% |
84,215 |
81,306 |
$ |
104.3 |
$ |
1,283 |
$ |
50.6 |
$ |
114.3 |
$ |
31.5 |
|
Q3 2023 |
6,667 |
1,912 |
5,961 |
0.81 |
0.21 |
78 |
% |
71,611 |
71,616 |
$ |
82.3 |
$ |
1,149 |
$ |
52.1 |
$ |
96.0 |
$ |
24.6 |
|
Fort Knox (attributable)(g) |
Q3 2024 |
7,509 |
991 |
5,822 |
3.44 |
0.19 |
91 |
% |
119,500 |
112,346 |
$ |
109.3 |
$ |
973 |
$ |
55.4 |
$ |
67.2 |
$ |
31.5 |
|
Q2 2024 |
8,249 |
2,003 |
6,385 |
0.85 |
0.22 |
81 |
% |
69,914 |
70,477 |
$ |
94.8 |
$ |
1,345 |
$ |
47.6 |
$ |
79.5 |
$ |
25.9 |
|
Q1 2024 |
10,009 |
1,850 |
8,778 |
0.67 |
0.24 |
76 |
% |
53,350 |
56,292 |
$ |
82.5 |
$ |
1,466 |
$ |
37.7 |
$ |
68.8 |
$ |
20.5 |
|
Q4 2023 |
11,014 |
2,173 |
9,930 |
0.69 |
0.22 |
78 |
% |
84,215 |
81,306 |
$ |
104.3 |
$ |
1,283 |
$ |
50.6 |
$ |
100.7 |
$ |
31.5 |
|
Q3 2023 |
6,667 |
1,912 |
5,961 |
0.81 |
0.21 |
78 |
% |
71,611 |
71,616 |
$ |
82.3 |
$ |
1,149 |
$ |
52.1 |
$ |
84.5 |
$ |
24.6 |
|
Round Mountain |
Q3 2024 |
2,958 |
790 |
1,032 |
0.74 |
0.29 |
80 |
% |
42,279 |
41,436 |
$ |
63.8 |
$ |
1,540 |
$ |
5.2 |
$ |
35.9 |
$ |
37.4 |
|
Q2 2024 |
2,956 |
806 |
1,541 |
1.11 |
0.35 |
73 |
% |
61,787 |
60,049 |
$ |
93.9 |
$ |
1,564 |
$ |
2.1 |
$ |
37.2 |
$ |
65.9 |
|
Q1 2024 |
4,246 |
960 |
3,257 |
1.32 |
0.37 |
73 |
% |
68,352 |
68,169 |
$ |
90.6 |
$ |
1,329 |
$ |
3.7 |
$ |
19.3 |
$ |
47.3 |
|
Q4 2023 |
4,666 |
884 |
2,729 |
0.91 |
0.48 |
68 |
% |
55,764 |
56,495 |
$ |
82.6 |
$ |
1,462 |
$ |
4.6 |
$ |
4.8 |
$ |
45.0 |
|
Q3 2023 |
8,474 |
911 |
7,644 |
0.75 |
0.38 |
75 |
% |
63,648 |
61,931 |
$ |
93.1 |
$ |
1,503 |
$ |
7.7 |
$ |
7.8 |
$ |
44.1 |
|
Bald Mountain |
Q3 2024 |
6,384 |
- |
6,384 |
- |
0.53 |
nm |
43,496 |
44,410 |
$ |
58.9 |
$ |
1,326 |
$ |
5.0 |
$ |
6.1 |
$ |
39.7 |
|
Q2 2024 |
2,906 |
- |
2,906 |
- |
0.47 |
nm |
45,929 |
39,818 |
$ |
50.6 |
$ |
1,271 |
$ |
4.4 |
$ |
4.6 |
$ |
27.0 |
|
Q1 2024 |
1,480 |
- |
1,480 |
- |
0.42 |
nm |
46,980 |
47,241 |
$ |
52.1 |
$ |
1,103 |
$ |
32.4 |
$ |
32.4 |
$ |
27.0 |
|
Q4 2023 |
3,894 |
- |
3,918 |
- |
0.47 |
nm |
44,007 |
49,375 |
$ |
57.1 |
$ |
1,156 |
$ |
36.3 |
$ |
38.8 |
$ |
25.0 |
|
Q3 2023 |
7,412 |
- |
7,412 |
- |
0.39 |
nm |
40,593 |
41,300 |
$ |
53.9 |
$ |
1,305 |
$ |
20.6 |
$ |
24.9 |
$ |
23.3 |
|
|
|
|
(a) Due to the nature of heap leach operations, recovery
rates at Bald Mountain cannot be accurately measured on a quarterly
basis. Recovery rates at Fort Knox and Round Mountain represent
mill recovery only. |
|
(b) "nm" means not meaningful. |
|
(c) Gold equivalent ounces include silver ounces produced and
sold converted to a gold equivalent based on the ratio of the
average spot market prices for the commodities for each period. The
ratios for the quarters presented are as follows: Q3 2024: 84.06:1;
Q2 2024: 81.06:1; Q1 2024: 88.70:1; Q4 2023: 85.00:1; Q3 2023:
81.82:1. |
|
(d) “Production cost of sales per equivalent ounce sold” is
defined as production cost of sales divided by total gold
equivalent ounces
sold. |
|
(e) "Total Cap Ex" is as reported as “Additions to property,
plant and equipment” on the interim condensed consolidated
statements of cash flows. "Cap Ex - sustaining" is a non-GAAP
financial measure. The definition and reconciliation of this
non-GAAP financial measure is included on pages 19 and
20 of this news release |
|
(f) La Coipa silver grade and recovery were as follows: Q3
2024: 49.13 g/t, 58%; Q2 2024: 65.02 g/t, 51%; Q1 2024: 87.20 g/t,
58%; Q4 2023: 96.24 g/t, 44%; Q3 2023: 106.70 g/t,
63%. |
|
(g) The Fort Knox segment is composed of Fort Knox and Manh
Choh, and comparative results shown are presented in accordance
with the current year’s presentation. Manh Choh tonnes of ore
processed and grade were 379,786 and 9.13, respectively, for Q3
2024 and nil for all other periods presented as production
commenced in July 2024. The attributable results for Fort Knox
include 100% of Fort Knox and 70% of Manh Choh. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of non-GAAP financial measures and
ratios
The Company has included certain non-GAAP
financial measures and ratios in this document. These financial
measures and ratios are not defined under IFRS and should not be
considered in isolation. The Company believes that these financial
measures and ratios, together with financial measures and ratios
determined in accordance with IFRS, provide investors with an
improved ability to evaluate the underlying performance of the
Company. The inclusion of these financial measures and ratios is
meant to provide additional information and should not be used as a
substitute for performance measures prepared in accordance with
IFRS. These financial measures and ratios are not necessarily
standard and therefore may not be comparable to other issuers.
Adjusted Net Earnings Attributable to
Common Shareholders and Adjusted Net Earnings per
Share
Adjusted net earnings attributable to common
shareholders and adjusted net earnings per share are non-GAAP
financial measures and ratios which determine the performance of
the Company, excluding certain impacts which the Company believes
are not reflective of the Company’s underlying performance for the
reporting period, such as the impact of foreign exchange gains and
losses, reassessment of prior year taxes and/or taxes otherwise not
related to the current period, impairment charges (reversals),
gains and losses and other one-time costs related to acquisitions,
dispositions and other transactions, and non-hedge derivative gains
and losses. Although some of the items are recurring, the Company
believes that they are not reflective of the underlying operating
performance of its current business and are not necessarily
indicative of future operating results. Management believes that
these measures and ratios, which are used internally to assess
performance and in planning and forecasting future operating
results, provide investors with the ability to better evaluate
underlying performance, particularly since the excluded items are
typically not included in public guidance. However, adjusted net
earnings and adjusted net earnings per share measures and ratios
are not necessarily indicative of net earnings and earnings per
share measures and ratios as determined under IFRS.
The following table provides a reconciliation of
net earnings to adjusted net earnings for the periods
presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, expressed in millions of U.S. dollars, except per share
amounts) |
Three months ended |
|
Nine months ended |
|
September 30, |
|
September 30, |
|
|
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to common shareholders - as reported |
$ |
355.3 |
|
$ |
109.7 |
|
|
$ |
673.2 |
|
$ |
350.9 |
|
|
Adjusting items: |
|
|
|
|
|
|
|
Foreign exchange losses (gains) |
|
4.8 |
|
|
(7.1 |
) |
|
|
(5.1 |
) |
|
(0.8 |
) |
|
|
Foreign exchange losses on translation of tax basis and foreign
exchange on deferred income taxes within income tax expense |
|
7.7 |
|
|
36.9 |
|
|
|
32.0 |
|
|
5.2 |
|
|
|
Taxes in respect of prior periods |
|
(0.2 |
) |
|
5.2 |
|
|
|
(22.9 |
) |
|
33.8 |
|
|
|
Reversal of impairment charge |
|
(74.1 |
) |
|
- |
|
|
|
(74.1 |
) |
|
- |
|
|
|
Insurance recoveries |
|
- |
|
|
(0.5 |
) |
|
|
(22.9 |
) |
|
(1.2 |
) |
|
|
Other(a) |
|
0.8 |
|
|
(1.4 |
) |
|
|
16.2 |
|
|
13.7 |
|
|
|
Tax effects of the above adjustments |
|
4.4 |
|
|
1.8 |
|
|
|
1.9 |
|
|
(1.8 |
) |
|
|
|
|
(56.6 |
) |
|
34.9 |
|
|
|
(74.9 |
) |
|
48.9 |
|
|
Adjusted net earnings attributable to common shareholders |
$ |
298.7 |
|
$ |
144.6 |
|
|
$ |
598.3 |
|
$ |
399.8 |
|
|
Weighted average number of common shares outstanding - Basic |
|
1,229.0 |
|
|
1,227.6 |
|
|
|
1,228.8 |
|
|
1,226.7 |
|
|
Adjusted net earnings per share |
$ |
0.24 |
|
$ |
0.12 |
|
|
$ |
0.49 |
|
$ |
0.33 |
|
|
Basic earnings per share attributable to common shareholders - as
reported |
$ |
0.29 |
|
$ |
0.09 |
|
|
$ |
0.55 |
|
$ |
0.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Other includes various impacts, such as one-time
costs at sites, restructuring costs, legal settlements and gains
and losses on hedges and the sale of assets, which the Company
believes are not reflective of the Company’s underlying performance
for the reporting period. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable Free Cash Flow
Attributable free cash flow is a non-GAAP
financial measure and is defined as net cash flow provided from
operating activities less attributable capital expenditures and
non-controlling interest included in net cash flows provided from
operating activities. The Company believes that this measure, which
is used internally to evaluate the Company’s underlying cash
generation performance and the ability to repay creditors and
return cash to shareholders, provides investors with the ability to
better evaluate the Company’s underlying performance. However, this
measure is not necessarily indicative of operating earnings or net
cash flow provided from operating activities as determined under
IFRS.
The following table provides a reconciliation of
attributable free cash flow for the periods presented:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, expressed in millions of U.S. dollars) |
Three months
ended |
|
Nine months ended |
|
September 30, |
|
September 30, |
|
|
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
Net cash flow provided from operating activities - as reported |
$ |
733.5 |
|
$ |
406.8 |
|
|
$ |
1,711.9 |
|
$ |
1,194.4 |
|
|
Adjusting items: |
|
|
|
|
|
|
|
Attributable(a) capital expenditures |
|
(275.5 |
) |
|
(272.4 |
) |
|
|
(772.1 |
) |
|
(757.3 |
) |
|
Non-controlling interest(b) cash flow used in operating
activities |
|
(43.4 |
) |
|
3.3 |
|
|
|
(34.0 |
) |
|
5.9 |
|
|
Attributable(a) free cash flow |
$ |
414.6 |
|
$ |
137.7 |
|
|
$ |
905.8 |
|
$ |
443.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See pages 20 and 21 for details of the footnotes referenced within
the table above. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable Adjusted Operating Cash Flow
Attributable adjusted operating cash flow is a
non-GAAP financial measure and is defined as net cash flow provided
from operating activities excluding changes in working capital,
certain impacts which the Company believes are not reflective of
the Company’s regular operating cash flow, and net cash flows
provided from operating activities, net of working capital changes,
relating to non-controlling interests. Working capital can be
volatile due to numerous factors, including the timing of tax
payments. The Company uses attributable adjusted operating cash
flow internally as a measure of the underlying operating cash flow
performance and future operating cash flow-generating capability of
the Company. However, the attributable adjusted operating cash flow
measure is not necessarily indicative of net cash flow provided
from operating activities as determined under IFRS.
The following table provides a reconciliation of
attributable adjusted operating cash flow for the periods
presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, expressed in millions of U.S. dollars) |
Three months ended |
|
Nine months ended |
|
September 30, |
|
September 30, |
|
|
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
Net cash flow provided from operating activities - as reported |
$ |
733.5 |
|
$ |
406.8 |
|
|
$ |
1,711.9 |
|
$ |
1,194.4 |
|
|
|
|
|
|
|
|
|
|
Adjusting items: |
|
|
|
|
|
|
Insurance proceeds received in respect of prior years |
|
|
- |
|
|
- |
|
|
|
(22.9 |
) |
|
- |
|
|
Working capital changes: |
|
|
|
|
|
|
Accounts receivable and other assets |
|
24.9 |
|
|
21.0 |
|
|
|
(26.4 |
) |
|
(66.6 |
) |
|
Inventories |
|
11.5 |
|
|
10.1 |
|
|
|
3.1 |
|
|
93.2 |
|
|
Accounts payable and other liabilities, including income taxes
paid |
|
(102.2 |
) |
|
32.7 |
|
|
|
(95.0 |
) |
|
41.5 |
|
|
|
|
|
667.7 |
|
|
470.6 |
|
|
|
1,570.7 |
|
|
1,262.5 |
|
|
Non-controlling interest(b) cash flow used in operating activities,
net of working capital changes |
|
(42.7 |
) |
|
1.5 |
|
|
|
(41.7 |
) |
|
4.6 |
|
|
Attributable(a) adjusted operating cash flow |
$ |
625.0 |
|
$ |
472.1 |
|
|
$ |
1,529.0 |
|
$ |
1,267.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See pages 20 and 21 for details of the footnotes referenced within
the table above. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production Cost of Sales and
Attributable Production Cost of Sales per Equivalent Ounce
Sold
Production cost of
sales per equivalent ounce sold is defined as production cost of
sales, as reported on the consolidated statement of operations,
divided by the total number of gold equivalent ounces sold. This
measure converts the Company’s non-gold production into gold
equivalent ounces and credits it to total production.
Attributable
production cost of sales per equivalent ounce sold is a non-GAAP
ratio and is defined as attributable production cost of sales
divided by the attributable number of gold equivalent ounces sold.
This measure converts the Company’s non-gold production into gold
equivalent ounces and credits it to total production. Management
uses this measure to monitor and evaluate the performance of its
operating properties that are attributable to its shareholders.
The following table
provides a reconciliation of production cost of sales and
attributable production cost of sales per equivalent ounce sold 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, |
|
|
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
Production cost of sales - as reported |
|
$ |
564.3 |
|
$ |
520.6 |
|
|
$ |
1,613.3 |
|
$ |
1,502.4 |
|
|
Less: non-controlling interest(b) production cost of sales |
|
(24.9 |
) |
|
- |
|
|
|
(24.9 |
) |
|
- |
|
|
Attributable(a) production cost of sales |
$ |
539.4 |
|
$ |
520.6 |
|
|
$ |
1,588.4 |
|
$ |
1,502.4 |
|
|
|
|
|
|
|
|
|
|
Gold equivalent ounces sold |
|
|
578,323 |
|
|
571,248 |
|
|
|
1,621,483 |
|
|
1,614,547 |
|
|
Less: non-controlling interest(b) gold equivalent ounces sold |
|
(27,775 |
) |
|
- |
|
|
|
(27,775 |
) |
|
- |
|
|
Attributable(a) gold equivalent ounces sold |
|
550,548 |
|
|
571,248 |
|
|
|
1,593,708 |
|
|
1,614,547 |
|
|
Attributable(a) production cost of sales per equivalent ounce
sold |
$ |
980 |
|
$ |
911 |
|
|
$ |
997 |
|
$ |
931 |
|
|
Production cost of sales per equivalent ounce sold(c) |
$ |
976 |
|
$ |
911 |
|
|
$ |
995 |
|
$ |
931 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See pages 20 and 21 for details of the footnotes referenced within
the table above. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable Production Cost of Sales per Ounce Sold on
a By-Product Basis
Attributable
production cost of sales per ounce sold on a by-product basis is a
non-GAAP ratio which calculates the Company’s non-gold production
as a credit against its per ounce production costs, rather than
converting its non-gold production into gold equivalent ounces and
crediting it to total production, as is the case in co-product
accounting. Management believes that this ratio provides investors
with the ability to better evaluate Kinross’ production cost of
sales per ounce on a comparable basis with other major gold
producers who routinely calculate their cost of sales per ounce
using by-product accounting rather than co-product accounting.
The following table provides a reconciliation of
attributable production cost of sales per ounce sold on a
by-product basis for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, expressed in millions of U.S. dollars, except ounces
and production cost of sales per ounce) |
Three months ended |
|
Nine months ended |
|
September 30, |
|
September 30, |
|
|
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
Production cost of sales - as reported |
|
$ |
564.3 |
|
$ |
520.6 |
|
|
$ |
1,613.3 |
|
$ |
1,502.4 |
|
|
Less: non-controlling interest(b) production cost of sales |
|
(24.9 |
) |
|
- |
|
|
|
(24.9 |
) |
|
- |
|
|
Less: attributable(a) silver revenue(d) |
|
(21.4 |
) |
|
(52.4 |
) |
|
|
(97.2 |
) |
|
(160.6 |
) |
|
Attributable(a) production cost of sales net of silver by-product
revenue |
$ |
518.0 |
|
$ |
468.2 |
|
|
$ |
1,491.2 |
|
$ |
1,341.8 |
|
|
|
|
|
|
|
|
|
|
Gold ounces sold |
|
|
569,506 |
|
|
544,199 |
|
|
|
1,578,232 |
|
|
1,531,816 |
|
|
Less: non-controlling interest(b) gold ounces sold |
|
(27,676 |
) |
|
- |
|
|
|
(27,676 |
) |
|
- |
|
|
Attributable(a) gold ounces sold |
|
541,830 |
|
|
544,199 |
|
|
|
1,550,556 |
|
|
1,531,816 |
|
|
Attributable(a) production cost of sales per ounce sold on a
by-product basis |
$ |
956 |
|
$ |
860 |
|
|
$ |
962 |
|
$ |
876 |
|
|
Production cost of sales per equivalent ounce sold(c) |
$ |
976 |
|
$ |
911 |
|
|
$ |
995 |
|
$ |
931 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See pages 20 and 21 for details of the footnotes referenced within
the table above. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable All-In Sustaining Cost and All-In Cost per
Ounce Sold on a By-Product Basis
Attributable all-in sustaining cost and all-in
cost per ounce sold on a by-product basis are non-GAAP financial
measures and ratios, as applicable, calculated based on guidance
published by the World Gold Council (“WGC”). The WGC is a market
development organization for the gold industry and is an
association whose membership comprises leading gold mining
companies including Kinross. Although the WGC is not a mining
industry regulatory organization, it worked closely with its member
companies to develop these metrics. Adoption of the all-in
sustaining cost and all-in cost metrics is voluntary and not
necessarily standard, and therefore, these measures and ratios
presented by the Company may not be comparable to similar measures
and ratios presented by other issuers. The Company believes that
the all-in sustaining cost and all-in cost measures complement
existing measures and ratios reported by Kinross.
All-in sustaining cost includes both operating
and capital costs required to sustain gold production on an ongoing
basis. The value of silver sold is deducted from the total
production cost of sales as it is considered residual production,
i.e. a by-product. Sustaining operating costs represent
expenditures incurred at current operations that are considered
necessary to maintain current production. Sustaining capital
represents capital expenditures at existing operations comprising
mine development costs, including capitalized development, 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.
Attributable all-in sustaining cost and all-in
cost per ounce sold on a by-product basis are calculated by
adjusting production cost of sales, as reported on the interim
condensed consolidated statements of operations, as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, expressed in millions of U.S. dollars, except ounces
and costs per ounce) |
Three months ended |
|
Nine months ended |
|
September 30, |
|
September 30, |
|
|
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
Production cost of sales - as reported |
$ |
564.3 |
|
$ |
520.6 |
|
|
$ |
1,613.3 |
|
$ |
1,502.4 |
|
|
Less: non-controlling interest(b) production cost of sales |
|
(24.9 |
) |
|
- |
|
|
|
(24.9 |
) |
|
- |
|
|
Less: attributable(a) silver revenue(d) |
|
(21.4 |
) |
|
(52.4 |
) |
|
|
(97.2 |
) |
|
(160.6 |
) |
|
Attributable(a) production cost of sales net of silver by-product
revenue |
$ |
518.0 |
|
$ |
468.2 |
|
|
$ |
1,491.2 |
|
$ |
1,341.8 |
|
|
Adjusting items on an attributable(a) basis: |
|
|
|
|
|
|
General and administrative(e) |
|
27.2 |
|
|
24.0 |
|
|
|
90.3 |
|
|
80.4 |
|
|
Other operating expense - sustaining(f) |
|
2.5 |
|
|
6.3 |
|
|
|
4.9 |
|
|
17.8 |
|
|
Reclamation and remediation - sustaining(g) |
|
18.4 |
|
|
14.1 |
|
|
|
56.1 |
|
|
46.8 |
|
|
Exploration and business development - sustaining(h) |
|
10.6 |
|
|
11.8 |
|
|
|
32.4 |
|
|
27.9 |
|
|
Additions to property, plant and equipment - sustaining(i) |
|
141.8 |
|
|
159.1 |
|
|
|
367.6 |
|
|
404.2 |
|
|
Lease payments - sustaining(j) |
|
3.2 |
|
|
4.2 |
|
|
|
9.9 |
|
|
24.9 |
|
|
All-in Sustaining Cost on a by-product basis - attributable(a) |
$ |
721.7 |
|
$ |
687.7 |
|
|
$ |
2,052.4 |
|
$ |
1,943.8 |
|
|
Adjusting items on an attributable(a) basis: |
|
|
|
|
|
|
Other operating expense - non-sustaining(f) |
|
12.9 |
|
|
8.7 |
|
|
|
32.8 |
|
|
27.4 |
|
|
Reclamation and remediation - non-sustaining(g) |
|
1.7 |
|
|
1.2 |
|
|
|
5.1 |
|
|
5.4 |
|
|
Exploration and business development - non-sustaining(h) |
|
38.3 |
|
|
38.5 |
|
|
|
113.0 |
|
|
105.8 |
|
|
Additions to property, plant and equipment - non-sustaining(i) |
|
133.7 |
|
|
113.3 |
|
|
|
404.5 |
|
|
353.1 |
|
|
Lease payments - non-sustaining(j) |
|
0.1 |
|
|
0.2 |
|
|
|
0.2 |
|
|
0.6 |
|
|
All-in Cost on a by-product basis - attributable(a) |
$ |
908.4 |
|
$ |
849.6 |
|
|
$ |
2,608.0 |
|
$ |
2,436.1 |
|
|
Gold ounces sold |
|
|
569,506 |
|
|
544,199 |
|
|
|
1,578,232 |
|
|
1,531,816 |
|
|
Less: non-controlling interest(b) gold ounces sold |
|
(27,676 |
) |
|
- |
|
|
|
(27,676 |
) |
|
- |
|
|
Attributable(a) gold ounces sold |
|
541,830 |
|
|
544,199 |
|
|
|
1,550,556 |
|
|
1,531,816 |
|
|
Attributable(a) all-in sustaining cost per ounce sold on a
by-product basis |
$ |
1,332 |
|
$ |
1,264 |
|
|
$ |
1,324 |
|
$ |
1,269 |
|
|
Attributable(a) all-in cost per ounce sold on a by-product
basis |
$ |
1,677 |
|
$ |
1,561 |
|
|
$ |
1,682 |
|
$ |
1,590 |
|
|
Production cost of sales per equivalent ounce sold(c) |
$ |
976 |
|
$ |
911 |
|
|
$ |
995 |
|
$ |
931 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See pages 20 and 21 for details of the footnotes referenced within
the table above. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable All-In Sustaining Cost and All-In Cost per
Equivalent Ounce Sold
The Company also assesses its attributable
all-in sustaining cost and all-in cost on a gold equivalent ounce
basis. Under these non-GAAP financial measures and ratios, the
Company’s production of silver is converted into gold equivalent
ounces and credited to total production.
Attributable all-in sustaining cost and all-in
cost per equivalent ounce sold are calculated by adjusting
production cost of sales, as reported on the interim condensed
consolidated statements of operations, as follows:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, expressed in millions of U.S. dollars, except ounces
and costs per ounce) |
Three months
ended |
|
Nine months ended |
|
September 30, |
|
September 30, |
|
|
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
Production cost of sales - as reported |
$ |
564.3 |
|
$ |
520.6 |
|
|
$ |
1,613.3 |
|
$ |
1,502.4 |
|
|
Less: non-controlling interest(b) production cost of sales |
|
(24.9 |
) |
|
- |
|
|
|
(24.9 |
) |
|
- |
|
|
Attributable(a) production cost of sales |
$ |
539.4 |
|
$ |
520.6 |
|
|
$ |
1,588.4 |
|
$ |
1,502.4 |
|
|
Adjusting items on an attributable(a) basis: |
|
|
|
|
|
|
|
General and
administrative(e) |
|
27.2 |
|
|
24.0 |
|
|
|
90.3 |
|
|
80.4 |
|
|
|
Other
operating expense - sustaining(f) |
|
2.5 |
|
|
6.3 |
|
|
|
4.9 |
|
|
17.8 |
|
|
|
Reclamation
and remediation - sustaining(g) |
|
18.4 |
|
|
14.1 |
|
|
|
56.1 |
|
|
46.8 |
|
|
|
Exploration
and business development - sustaining(h) |
|
10.6 |
|
|
11.8 |
|
|
|
32.4 |
|
|
27.9 |
|
|
|
Additions to
property, plant and equipment - sustaining(i) |
|
141.8 |
|
|
159.1 |
|
|
|
367.6 |
|
|
404.2 |
|
|
|
Lease
payments - sustaining(j) |
|
3.2 |
|
|
4.2 |
|
|
|
9.9 |
|
|
24.9 |
|
|
All-in Sustaining Cost - attributable(a) |
$ |
743.1 |
|
$ |
740.1 |
|
|
$ |
2,149.6 |
|
$ |
2,104.4 |
|
|
Adjusting items on an attributable(a) basis: |
|
|
|
|
|
|
|
Other
operating expense - non-sustaining(f) |
|
12.9 |
|
|
8.7 |
|
|
|
32.8 |
|
|
27.4 |
|
|
|
Reclamation
and remediation - non-sustaining(g) |
|
1.7 |
|
|
1.2 |
|
|
|
5.1 |
|
|
5.4 |
|
|
|
Exploration
and business development - non-sustaining(h) |
|
38.3 |
|
|
38.5 |
|
|
|
113.0 |
|
|
105.8 |
|
|
|
Additions to
property, plant and equipment - non-sustaining(i) |
|
133.7 |
|
|
113.3 |
|
|
|
404.5 |
|
|
353.1 |
|
|
|
Lease
payments - non-sustaining(j) |
|
0.1 |
|
|
0.2 |
|
|
|
0.2 |
|
|
0.6 |
|
|
All-in Cost - attributable(a) |
$ |
929.8 |
|
$ |
902.0 |
|
|
$ |
2,705.2 |
|
$ |
2,596.7 |
|
|
Gold equivalent ounces sold |
|
578,323 |
|
|
571,248 |
|
|
|
1,621,483 |
|
|
1,614,547 |
|
|
Less: non-controlling interest(b) gold equivalent ounces sold |
|
(27,775 |
) |
|
- |
|
|
|
(27,775 |
) |
|
- |
|
|
Attributable(a) gold equivalent ounces sold |
|
550,548 |
|
|
571,248 |
|
|
|
1,593,708 |
|
|
1,614,547 |
|
|
Attributable(a) all-in sustaining cost per equivalent ounce
sold |
$ |
1,350 |
|
$ |
1,296 |
|
|
$ |
1,349 |
|
$ |
1,303 |
|
|
Attributable(a) all-in cost per equivalent ounce sold |
$ |
1,689 |
|
$ |
1,579 |
|
|
$ |
1,697 |
|
$ |
1,608 |
|
|
Production cost of sales per equivalent ounce sold(c) |
$ |
976 |
|
$ |
911 |
|
|
$ |
995 |
|
$ |
931 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
See pages 20 and 21 for details of the footnotes referenced within
the table above. |
|
|
|
|
|
| |
|
|
|
|
|
|
Capital Expenditures and Attributable Capital
Expenditures
Capital expenditures are classified as either
sustaining capital expenditures or non-sustaining capital
expenditures, depending on the nature of the expenditure.
Sustaining capital expenditures typically represent capital
expenditures at existing operations including capitalized
exploration costs and capitalized development 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 development projects at existing operations
that are expected to materially benefit the operation, as well as
enhancement capital for significant infrastructure improvements at
existing operations. Management believes the distinction between
sustaining capital expenditures and non-sustaining expenditures is
a useful indicator of the purpose of capital expenditures and this
distinction is an input into the calculation of attributable all-in
sustaining costs per ounce and attributable all-in costs per ounce.
The categorization of sustaining capital expenditures and
non-sustaining capital expenditures is consistent with the
definitions under the WGC all-in cost standard. Sustaining capital
expenditures and non-sustaining capital expenditures are not
defined under IFRS, however, the sum of these two measures total to
additions to property, plant and equipment as disclosed under IFRS
on the interim condensed consolidated statements of cash flows.
Additions to property, plant and equipment per
the statement of cash flow includes 100% of capital expenditures
for Manh Choh. Attributable capital expenditures includes Kinross'
70% share of capital expenditures for Manh Choh. Management
believes this to be a useful indicator of Kinross’ cash resources
utilized for capital expenditures.
The following table provides a reconciliation of
the classification of capital expenditures for the periods
presented:
|
(unaudited, expressed in millions of U.S. dollars) |
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, 2024 |
Tasiast (Mauritania) |
Paracatu (Brazil) |
La Coipa (Chile) |
Fort Knox(k)
(USA) |
Round Mountain (USA) |
Bald Mountain (USA) |
Total USA |
Other |
Total |
|
Sustaining capital expenditures |
$ |
13.5 |
$ |
41.2 |
$ |
21.3 |
$ |
56.6 |
|
$ |
5.2 |
$ |
5.0 |
$ |
66.8 |
|
$ |
0.2 |
|
$ |
143.0 |
|
|
Non-sustaining capital expenditures |
|
70.3 |
|
- |
|
3.6 |
|
13.8 |
|
|
30.7 |
|
1.1 |
|
45.6 |
|
|
16.2 |
|
|
135.7 |
|
|
Additions to property, plant and equipment - per cash flow |
$ |
83.8 |
$ |
41.2 |
$ |
24.9 |
$ |
70.4 |
|
$ |
35.9 |
$ |
6.1 |
$ |
112.4 |
|
$ |
16.4 |
|
$ |
278.7 |
|
|
Less: Non-controlling interest(b) |
$ |
- |
$ |
- |
$ |
- |
$ |
(3.2 |
) |
$ |
- |
$ |
- |
$ |
(3.2 |
) |
$ |
- |
|
$ |
(3.2 |
) |
|
Attributable(a) capital expenditures |
$ |
83.8 |
$ |
41.2 |
$ |
24.9 |
$ |
67.2 |
|
$ |
35.9 |
$ |
6.1 |
$ |
109.2 |
|
$ |
16.4 |
|
$ |
275.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
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 |
|
43.9 |
|
|
0.1 |
|
4.3 |
|
48.3 |
|
|
3.7 |
|
|
124.8 |
|
|
Additions to property, plant and equipment - per cash flow |
$ |
77.3 |
$ |
58.4 |
$ |
15.2 |
$ |
96.0 |
|
$ |
7.8 |
$ |
24.9 |
$ |
128.7 |
|
$ |
4.3 |
|
$ |
283.9 |
|
|
Less: Non-controlling interest(b) |
$ |
- |
$ |
- |
$ |
- |
$ |
(11.5 |
) |
$ |
- |
$ |
- |
$ |
(11.5 |
) |
$ |
- |
|
$ |
(11.5 |
) |
|
Attributable(a) capital expenditures |
$ |
77.3 |
$ |
58.4 |
$ |
15.2 |
$ |
84.5 |
|
$ |
7.8 |
$ |
24.9 |
$ |
117.2 |
|
$ |
4.3 |
|
$ |
272.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, expressed in millions of U.S. dollars) |
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, 2024 |
Tasiast (Mauritania) |
Paracatu (Brazil) |
La Coipa (Chile) |
Fort Knox(k)
(USA) |
Round Mountain (USA) |
Bald Mountain (USA) |
Total USA |
Other |
Total |
|
Sustaining capital expenditures |
$ |
30.6 |
$ |
105.4 |
$ |
39.2 |
$ |
141.9 |
|
$ |
11.0 |
$ |
41.8 |
$ |
194.7 |
|
$ |
(1.0 |
) |
$ |
368.9 |
|
|
Non-sustaining capital expenditures |
|
207.9 |
|
- |
|
3.6 |
|
96.3 |
|
|
81.4 |
|
1.3 |
|
179.0 |
|
|
35.4 |
|
|
425.9 |
|
|
Additions to property, plant and equipment - per cash flow |
$ |
238.5 |
$ |
105.4 |
$ |
42.8 |
$ |
238.2 |
|
$ |
92.4 |
$ |
43.1 |
$ |
373.7 |
|
$ |
34.4 |
|
$ |
794.8 |
|
|
Less: Non-controlling interest(b) |
$ |
- |
$ |
- |
$ |
- |
$ |
(22.7 |
) |
$ |
- |
$ |
- |
$ |
(22.7 |
) |
$ |
- |
|
$ |
(22.7 |
) |
|
Attributable(a) capital expenditures |
$ |
238.5 |
$ |
105.4 |
$ |
42.8 |
$ |
215.5 |
|
$ |
92.4 |
$ |
43.1 |
$ |
351.0 |
|
$ |
34.4 |
|
$ |
772.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
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 |
|
111.3 |
|
|
0.1 |
|
38.3 |
|
149.7 |
|
|
10.3 |
|
|
382.8 |
|
|
Additions to property, plant and equipment - per cash flow |
$ |
223.8 |
$ |
125.9 |
$ |
63.9 |
$ |
254.1 |
|
$ |
25.7 |
$ |
81.5 |
$ |
361.3 |
|
$ |
12.1 |
|
$ |
787.0 |
|
|
Less: Non-controlling interest(b) |
$ |
- |
$ |
- |
$ |
- |
$ |
(29.7 |
) |
$ |
- |
$ |
- |
$ |
(29.7 |
) |
$ |
- |
|
$ |
(29.7 |
) |
|
Attributable(a) capital expenditures |
$ |
223.8 |
$ |
125.9 |
$ |
63.9 |
$ |
224.4 |
|
$ |
25.7 |
$ |
81.5 |
$ |
331.6 |
|
$ |
12.1 |
|
$ |
757.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See pages 20 and 21 for details of the footnotes referenced within
the table above. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) “Attributable” includes Kinross’ share of Manh Choh (70%)
cash flows, costs, sales and capital
expenditures.(b) “Non-controlling interest” represents the
non-controlling interest portion in Manh Choh (30%) and other
subsidiaries for which the Company’s interest is less than 100% for
cash flow from operating activities, costs, sales and capital
expenditures, as appropriate.(c) “Production cost of sales per
equivalent ounce sold” is defined as production cost of sales
divided by total gold equivalent ounces sold.(d) “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.(e) “General and administrative” expenses are as
reported on the interim condensed consolidated statements of
operations, excluding certain impacts which the Company believes
are not reflective of the Company’s underlying performance for the
reporting period. General and administrative expenses are
considered sustaining costs as they are required to be absorbed on
a continuing basis for the effective operation and governance of
the Company.(f) “Other operating expense – sustaining” is
calculated as “Other operating expense” as reported on the interim
condensed consolidated statements of operations, less the
non-controlling interest portion in Manh Choh (30%) and other
subsidiaries for which the Company’s interest is less than 100% and
other operating and reclamation and remediation expenses related to
non-sustaining activities as well as other items not reflective of
the underlying operating performance of our business. Other
operating expenses are classified as either sustaining or
non-sustaining based on the type and location of the expenditure
incurred. The majority of other operating expenses that are
incurred at existing operations are considered costs necessary to
sustain operations, and are therefore, classified as sustaining.
Other operating expenses incurred at locations where there is no
current operation or related to other non-sustaining activities are
classified as non-sustaining.(g) “Reclamation and remediation
– sustaining” is calculated as current period accretion related to
reclamation and remediation obligations plus current period
amortization of the corresponding reclamation and remediation
assets, less the non-controlling interest portion in Manh Choh
(30%) and other subsidiaries for which the Company’s interest is
less than 100%, and is intended to reflect the periodic cost of
reclamation and remediation for currently operating mines.
Reclamation and remediation costs for development projects or
closed mines are excluded from this amount and classified as
non-sustaining.(h) “Exploration and business development –
sustaining” is calculated as “Exploration and business development”
expenses as reported on the interim condensed consolidated
statements of operations, less the non-controlling interest portion
in Manh Choh (30%) and other subsidiaries for which the Company’s
interest is less than 100% and 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 are therefore
included in sustaining costs. Exploration expenditures focused on
new ore bodies near existing mines (i.e. brownfield), new
exploration projects (i.e. greenfield) or for other generative
exploration activity not linked to existing mining operations are
classified as non-sustaining. Business development expenses are
classified as either sustaining or non-sustaining based on a
determination of the type of expense and requirement for general or
growth related operations.(i) “Additions to property, plant
and equipment – sustaining” and non-sustaining are as presented on
pages 19 and 20 of this news release and include Kinross’ share of
Manh Choh’s (70%) sustaining and non-sustaining capital
expenditures.(j) “Lease payments – sustaining” represents the
majority of lease payments as reported on the interim condensed
consolidated statements of cash flows and is made up of the
principal and financing components of such cash payments, less the
non-controlling interest portion in Manh Choh (30%) and other
subsidiaries for which the Company’s interest is less than 100%,
and non-sustaining lease payments. Lease payments for development
projects or closed mines are classified as
non-sustaining.(k) The Fort Knox segment is composed of Fort
Knox and Manh Choh for all periods presented. |
|
|
|
|
|
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Appendix A
Drilling at Round Mountain Phase X
demonstrating strong grades and widths within the exploration
target and potential for extensions.
An infographic accompanying this announcement is available
at
https://www.globenewswire.com/NewsRoom/AttachmentNg/f1da5154-7107-48ec-b89d-b5d15f749068
Appendix B
Curlew Basin long section demonstrating
positive exploration results outside of the known resource at the
Stealth, EVP and Roadrunner zones. These intercepts demonstrate
higher gold grades and increased vein widths relative to those in
the current mine plan, reinforcing Curlew’s potential for continued
resource growth.
An infographic accompanying this announcement is available
at
https://www.globenewswire.com/NewsRoom/AttachmentNg/d06ba9b6-bbab-4644-8bba-25b05581976c
Cautionary statement on forward-looking
information
All statements, other than statements of
historical fact, contained or incorporated by reference in this
news release including, but not limited to, any information as to
the future financial or operating performance of Kinross,
constitute “forward-looking information” or “forward-looking
statements” within the meaning of certain securities laws,
including the provisions of the Securities Act (Ontario) and the
provisions for “safe harbor” under the United States Private
Securities Litigation Reform Act of 1995 and are based on
expectations, estimates and projections as of the date of this news
release. Forward-looking statements contained in this news release,
include, but are not limited to, those under the headings (or
headings that include) “2024 third-quarter highlights”, “CEO
commentary”, and “Operating Results”, “Development Projects and
Exploration”, as well as statements with respect to our guidance
for production, cost guidance, including production costs of sales,
all-in sustaining cost of sales, and capital expenditures;
statements with respect to our guidance for cash flow and free cash
flow; the declaration, payment and sustainability of the Company’s
dividends; identification of additional resources and reserves or
the conversion of resources to reserves; the Company’s liquidity;
the Company’s plan to reduce debt; the schedules budgets, and
forecast economics for the Company’s development projects; budgets
for and future plans for exploration, development and operation at
the Company’s operations and projects, including the Great Bear
project; the projected yearly gold production profile from both
open pit and underground operations, all-in sustaining costs, mill
throughput and average grades at the Great Bear project; potential
mine life extensions at the Company’s operations; the Company’s
balance sheet and liquidity outlook, as well as references to other
possible events including, the future price of gold and silver,
costs of production, operating costs; price inflation; capital
expenditures, costs and timing of the development of projects and
new deposits, estimates and the realization of such estimates (such
as mineral or gold reserves and resources or mine life), success of
exploration, development and mining, currency fluctuations, capital
requirements, project studies, government regulation, permit
applications, environmental risks and proceedings, and resolution
of pending litigation. The words “advance”, “aimed”, “continue”,
“expects”, “focus”, “goal”, “guidance”, “on plan”, “on track”,
“opportunity”, “plan”, “potential”, “priority”, “target”, “upside”,
“view”, or variations of or similar such words and phrases or
statements that certain actions, events or results may, could,
should or will be achieved, received or taken, or will occur or
result and similar such expressions identify forward-looking
statements. Forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered
reasonable by Kinross as of the date of such statements, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. The estimates, models
and assumptions of Kinross referenced, contained or incorporated by
reference in this news release, which may prove to be incorrect,
include, but are not limited to, the various assumptions set forth
herein and in our Management’s Discussion and Analysis (“MD&A”)
for the year ended December 31, 2023, and the Annual Information
Form dated March 27, 2024 as well as: (1) there being no
significant disruptions affecting the operations of the Company,
whether due to extreme weather events (including, without
limitation, excessive snowfall, excessive or lack of rainfall) and
other or related natural disasters, labour disruptions (including
but not limited to strikes or workforce reductions), supply
disruptions, power disruptions, damage to equipment, pit wall
slides or otherwise; (2) permitting, development, operations and
production from the Company’s operations and development projects
being consistent with Kinross’ current expectations including,
without limitation: the maintenance of existing permits and
approvals and the timely receipt of all permits and authorizations
necessary for the operation of Tasiast; water and power supply and
continued operation of the tailings reprocessing facility at
Paracatu; permitting of the Great Bear project (including the
consultation process with Indigenous groups), permitting and
development of the Lobo-Marte project; in each case in a manner
consistent with the Company’s expectations; and the successful
completion of exploration consistent with the Company’s
expectations at the Company’s projects; (3) political and legal
developments in any jurisdiction in which the Company operates
being consistent with its current expectations including, without
limitation, restrictions or penalties imposed, or actions taken, by
any government, including but not limited to amendments to the
mining laws, and potential power rationing and tailings facility
regulations in Brazil (including those related to financial
assurance requirements), potential amendments to water laws and/or
other water use restrictions and regulatory actions in Chile, new
dam safety regulations, potential amendments to minerals and mining
laws and energy levies laws, new regulations relating to work
permits, potential amendments to customs and mining laws (including
but not limited to amendments to the VAT) and the potential
application of the tax code in Mauritania, potential amendments to
and enforcement of tax laws in Mauritania (including, but not
limited to, the interpretation, implementation, application and
enforcement of any such laws and amendments thereto), potential
third party legal challenges to existing permits, and the impact of
any trade tariffs being consistent with Kinross’ current
expectations; (4) the completion of studies, including scoping
studies, preliminary economic assessments, pre-feasibility or
feasibility studies, on the timelines currently expected and the
results of those studies being consistent with Kinross’ current
expectations; (5) the exchange rate between the Canadian dollar,
Brazilian real, Chilean peso, Mauritanian ouguiya and the U.S.
dollar being approximately consistent with current levels; (6)
certain price assumptions for gold and silver; (7) prices for
diesel, natural gas, fuel oil, electricity and other key supplies
being approximately consistent with the Company’s expectations; (8)
attributable production and cost of sales forecasts for the Company
meeting expectations; (9) the accuracy of the current mineral
reserve and mineral resource estimates of the Company and Kinross’
analysis thereof being consistent with expectations (including but
not limited to ore tonnage and ore grade estimates), future mineral
resource and mineral reserve estimates being consistent with
preliminary work undertaken by the Company, mine plans for the
Company’s current and future mining operations, and the Company’s
internal models; (10) labour and materials costs increasing on a
basis consistent with Kinross’ current expectations; (11) the terms
and conditions of the legal and fiscal stability agreements for
Tasiast being interpreted and applied in a manner consistent with
their intent and Kinross’ expectations and without material
amendment or formal dispute (including without limitation the
application of tax, customs and duties exemptions and royalties);
(12) asset impairment potential; (13) the regulatory and
legislative regime regarding mining, electricity production and
transmission (including rules related to power tariffs) in Brazil
being consistent with Kinross’ current expectations; (14) access to
capital markets, including but not limited to maintaining our
current credit ratings consistent with the Company’s current
expectations; (15) potential direct or indirect operational impacts
resulting from infectious diseases or pandemics; (16) changes in
national and local government legislation or other government
actions, including the Canadian federal impact assessment regime;
(17) litigation, regulatory proceedings and audits, and the
potential ramifications thereof, being concluded in a manner
consistent with the Corporation’s expectations (including without
limitation litigation in Chile relating to the alleged damage of
wetlands and the scope of any remediation plan or other
environmental obligations arising therefrom); (18) the Company’s
financial results, cash flows and future prospects being consistent
with Company expectations in amounts sufficient to permit sustained
dividend payments; and (19) the impacts of detected pit wall
instability at Round Mountain and Bald Mountain being consistent
with the Company’s expectations. Known and unknown factors could
cause actual results to differ materially from those projected in
the forward-looking statements. Such factors include, but are not
limited to: the inaccuracy of any of the foregoing assumptions;
fluctuations in the currency markets; fluctuations in the spot and
forward price of gold or certain other commodities (such as fuel
and electricity); price inflation of goods and services; changes in
the discount rates applied to calculate the present value of net
future cash flows based on country-specific real weighted average
cost of capital; changes in the market valuations of peer group
gold producers and the Company, and the resulting impact on market
price to net asset value multiples; changes in various market
variables, such as interest rates, foreign exchange rates, gold or
silver prices and lease rates, or global fuel prices, that could
impact the mark-to-market value of outstanding derivative
instruments and ongoing payments/receipts under any financial
obligations; risks arising from holding derivative instruments
(such as credit risk, market liquidity risk and mark-to-market
risk); changes in national and local government legislation,
taxation (including but not limited to income tax, advance income
tax, stamp tax, withholding tax, capital tax, tariffs, value-added
or sales tax, capital outflow tax, capital gains tax, windfall or
windfall profits tax, production royalties, excise tax,
customs/import or export taxes/duties, asset taxes, asset transfer
tax, property use or other real estate tax, together with any
related fine, penalty, surcharge, or interest imposed in connection
with such taxes), controls, policies and regulations; the security
of personnel and assets; political or economic developments in
Canada, the United States, Chile, Brazil, Mauritania or other
countries in which Kinross does business or may carry on business;
business opportunities that may be presented to, or pursued by, us;
our ability to successfully integrate acquisitions and complete
divestitures; operating or technical difficulties in connection
with mining, development or refining activities; employee
relations; litigation or other claims against, or regulatory
investigations and/or any enforcement actions, administrative
orders or sanctions in respect of the Company (and/or its
directors, officers, or employees) including, but not limited to,
securities class action litigation in Canada and/or the United
States, environmental litigation or regulatory proceedings or any
investigations, enforcement actions and/or sanctions under any
applicable anti-corruption, international sanctions and/or
anti-money laundering laws and regulations in Canada, the United
States or any other applicable jurisdiction; the speculative nature
of gold exploration and development including, but not limited to,
the risks of obtaining and maintaining necessary licenses and
permits; diminishing quantities or grades of reserves; adverse
changes in our credit ratings; and contests over title to
properties, particularly title to undeveloped properties. In
addition, there are risks and hazards associated with the business
of gold exploration, development and mining, including
environmental hazards, industrial accidents, unusual or unexpected
formations, pressures, cave-ins, flooding and gold bullion losses
(and the risk of inadequate insurance, or the inability to obtain
insurance, to cover these risks). Many of these uncertainties and
contingencies can directly or indirectly affect, and could cause,
Kinross’ actual results to differ materially from those expressed
or implied in any forward-looking statements made by, or on behalf
of, Kinross, including but not limited to resulting in an
impairment charge on goodwill and/or assets. There can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements.
Forward-looking statements are provided for the purpose of
providing information about management’s expectations and plans
relating to the future. All of the forward-looking statements made
in this news release are qualified by this cautionary statement and
those made in our other filings with the securities regulators of
Canada and the United States including, but not limited to, the
cautionary statements made in the “Risk Analysis” section of our
MD&A for the year ended December 31, 2023, and the “Risk
Factors” set forth in the Company’s Annual Information Form dated
March 27, 2024. These factors are not intended to represent a
complete list of the factors that could affect Kinross. Kinross
disclaims any intention or obligation to update or revise any
forward-looking statements or to explain any material difference
between subsequent actual events and such forward-looking
statements, except to the extent required by applicable law.
Key Sensitivities
Approximately 70%-80% of the Company's costs are
denominated in U.S. dollars.
A 10% change in foreign currency exchange rates
would be expected to result in an approximate $20 impact on
production cost of sales per equivalent ounce sold9.
Specific to the Brazilian real, a 10% change in
the exchange rate would be expected to result in an approximate $40
impact on Brazilian production cost of sales per equivalent ounce
sold.
Specific to the Chilean peso, a 10% change in
the exchange rate would be expected to result in an approximate $30
impact on Chilean production cost of sales per equivalent ounce
sold.
A $10 per barrel change in the price of oil
would be expected to result in an approximate $3 impact on
production cost of sales per equivalent ounce sold.
A $100 change in the price of gold would be
expected to result in an approximate $4 impact on production cost
of sales per equivalent ounce sold as a result of a change in
royalties.
Other information
Where we say "we", "us", "our", the "Company",
or "Kinross" in this news release, we mean Kinross Gold Corporation
and/or one or more or all of its subsidiaries, as may be
applicable.
The technical information about the Company’s
mineral properties contained in this news release has been prepared
under the supervision of Mr. Nicos Pfeiffer, an officer of the
Company who is a “qualified person” within the meaning of National
Instrument 43-101.
Source: Kinross Gold Corporation
__________________________________
1 Unless otherwise stated, production figures in this news
release are on an attributable basis and include Kinross’ 70% share
of Manh Choh production. Financial figures include 100% of Manh
Choh results except when denoted as “attributable”.2 These figures
are non-GAAP financial measures and ratios, as applicable, and are
defined and reconciled on pages 15 to 20 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” per equivalent ounce sold is
defined as average realized gold price per ounce less production
cost of sales per equivalent ounce sold. 4 Guidance figures within
this news release are on an attributable basis and include Kinross’
70% share of Manh Choh production, costs and capital expenditures.
Attributable guidance figures are non-GAAP financial measures and
ratios. Refer to footnote 2.5 “Average realized gold price per
ounce” is defined as gold metal sales divided by total gold ounces
sold.6 “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, 2024.7 “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, 2024).8 The PEA is
preliminary in nature and is based, in part, on Inferred Mineral
Resources. Inferred Mineral Resources are considered too
geologically speculative to have the economic considerations
applied to them that would enable them to be categorized as Mineral
Reserves. There is no certainty that the economic forecasts on
which the PEA is based will be realized.9 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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