Company on track to meet annual guidance
Tasiast achieves record quarterly production and delivers strong free cash flow
Phase S supports production at
This news release contains forward-looking information about expected future events and financial and operating performance of the Company. Please refer to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located on page 29 of this release. All dollar amounts are expressed in
Q3 2023 highlights from continuing operations:
- Guidance: Kinross remains on track to meet its 2023 annual guidance ranges for production, cost of sales per ounce, all-in sustaining cost and attributable capital expenditures. The Company is tracking in the lower end of its 2023 production cost of sales guidance and the higher end of its capital expenditure guidance.
- Production of 585,449 gold equivalent ounces (Au eq. oz.), a 11% year-over-year increase.
- Production cost of sales1 of
$911 per Au eq. oz. sold and all-in sustaining cost2 of$1,296 per Au eq. oz. sold. - Margins3 of
$1,018 per Au eq. oz. sold. - Operating cash flow4 of
$406.8 million and adjusted operating cash flow2 of$470.6 million . Free cash flow2 of$122.9 million . - Reported net earnings5 of
$109.7 million , or$0.09 per share, with adjusted net earnings2, 6 of$144.6 million , or$0.12 per share2. - Cash and cash equivalents of
$464.9 million , and total liquidity7 of approximately$2.0 billion atSeptember 30, 2023 . - Kinross’ Board of Directors declared a quarterly dividend of
$0.03 per common share payable onDecember 14, 2023 , to shareholders of record at the close of business onNovember 30, 2023 .
Operational and development project highlights:
- Tasiast achieved record quarterly production and sales, significantly exceeding the previous record achieved in the second quarter.
- Paracatu delivered higher production both quarter-over-quarter and year-over-year.
- La Coipa performed well and was once again the lowest cost mine in the portfolio, delivering high-margin production.
- At
Manh Choh , a ceremonial groundbreaking was held, pre-stripping has commenced, and the project remains on track for initial production in the second half of 2024. - At Round Mountain, Kinross has approved mining of the optimized Phase S open pit, which is expected to extend production out to the end of the decade and increase life-of-mine production by ~750,000 Au eq. oz. Phase S could provide synergies with potential future production from underground at Phase X and Gold Hill.
- At
Great Bear , the exploration program continues to make excellent progress and drill results continue to exceed expectations around the strong resource potential of the deposit, including a recent high-grade intercept from the Hinge zone that returned 2.8 metres true width grading at approximately 260 grams per tonne (g/t) at a vertical depth of 870 metres. Permitting is ongoing at both the provincial and federal levels.
CEO commentary:
“It has been a great nine months at Kinross and we have delivered another strong quarter. Our production profile has been solid and generated significant cash flow. We continue to reduce the debt on our investment grade balance sheet and have completed our expansion projects at Tasiast and La Coipa. We remain well positioned to meet our annual guidance building on the robust results year-to-date.
“Our project pipeline continued to make excellent progress. At
“Our decision to proceed with Round Mountain Phase S underscores the successful optimization work to build a lower-investment, high-return operation that we expect will add approximately 750,000 ounces to the life-of-mine production profile. The future of
“Kinross is delivering on its ESG commitments. In that regard, we’re excited that our 34MW solar power plant at Tasiast is on schedule to deliver power by the end of the year. This, combined with other elements of our Climate Strategy, means Kinross is well on track to meet our goal of a 30% reduction in greenhouse gas emissions by 2030.”
Summary of financial and operating results
Three months ended | Nine months ended | |||||||||||||
(unaudited, in millions of | 2023 | 2022 | 2023 | 2022 | ||||||||||
Operating Highlights | ||||||||||||||
Total gold equivalent ounces from continuing operations(a),(b) | ||||||||||||||
Produced | 585,449 | 529,155 | 1,606,507 | 1,361,554 | ||||||||||
Sold | 571,248 | 494,413 | 1,614,547 | 1,307,219 | ||||||||||
Financial Highlights from Continuing Operations(a) | ||||||||||||||
Metal sales | $ | 1,102.4 | $ | 856.5 | $ | 3,124.0 | $ | 2,378.9 | ||||||
Production cost of sales | $ | 520.6 | $ | 465.3 | $ | 1,502.4 | $ | 1,279.2 | ||||||
Depreciation, depletion and amortization | $ | 263.9 | $ | 185.1 | $ | 715.1 | $ | 532.1 | ||||||
Operating earnings | $ | 226.2 | $ | 111.3 | $ | 607.9 | $ | 277.8 | ||||||
Net earnings from continuing operations attributable to common shareholders | $ | 109.7 | $ | 65.9 | $ | 350.9 | $ | 137.9 | ||||||
Basic earnings per share from continuing operations attributable to common shareholders | $ | 0.09 | $ | 0.05 | $ | 0.29 | $ | 0.11 | ||||||
Diluted earnings per share from continuing operations attributable to common shareholders | $ | 0.09 | $ | 0.05 | $ | 0.28 | $ | 0.11 | ||||||
Adjusted net earnings from continuing operations attributable to common shareholders(c) | $ | 144.6 | $ | 68.7 | $ | 399.8 | $ | 174.9 | ||||||
Adjusted net earnings from continuing operations per share(c) | $ | 0.12 | $ | 0.05 | $ | 0.33 | $ | 0.14 | ||||||
Net cash flow of continuing operations provided from operating activities | $ | 406.8 | $ | 173.2 | $ | 1,194.4 | $ | 528.2 | ||||||
Adjusted operating cash flow from continuing operations(c) | $ | 470.6 | $ | 259.4 | $ | 1,262.5 | $ | 760.4 | ||||||
Capital expenditures from continuing operations(d) | $ | 283.9 | $ | 197.3 | $ | 787.0 | $ | 447.4 | ||||||
Free cash flow from continuing operations(c) | $ | 122.9 | $ | (24.1 | ) | $ | 407.4 | $ | 80.8 | |||||
Average realized gold price per ounce from continuing operations(e) | $ | 1,929 | $ | 1,732 | $ | 1,935 | $ | 1,821 | ||||||
Production cost of sales from continuing operations per equivalent ounce(b) sold(f) | $ | 911 | $ | 941 | $ | 931 | $ | 979 | ||||||
Production cost of sales from continuing operations per ounce sold on a by-product basis(c) | $ | 860 | $ | 919 | $ | 876 | $ | 966 | ||||||
All-in sustaining cost from continuing operations per ounce sold on a by-product basis(c) | $ | 1,264 | $ | 1,269 | $ | 1,269 | $ | 1,279 | ||||||
All-in sustaining cost from continuing operations per equivalent ounce(b) sold(c) | $ | 1,296 | $ | 1,282 | $ | 1,303 | $ | 1,287 | ||||||
Attributable all-in cost(g) from continuing operations per ounce sold on a by-product basis(c) | $ | 1,561 | $ | 1,555 | $ | 1,590 | $ | 1,543 | ||||||
Attributable all-in cost(g) from continuing operations per equivalent ounce(b) sold(c) | $ | 1,579 | $ | 1,560 | $ | 1,608 | $ | 1,547 |
(a) | Results for the three and nine months ended |
(b) | “Gold equivalent ounces” include silver ounces produced and sold converted to a gold equivalent based on a ratio of the average spot market prices for the commodities for each period. The ratio for the third quarter and first nine months of 2023 was 81.82:1 and 82.50:1, respectively (third quarter and first nine months of 2022 – 89.91:1 and 83.22:1, respectively). |
(c) | The definition and reconciliation of these non-GAAP financial measures and ratios is included on pages 17 to 21 of this news release. Non-GAAP financial measures and ratios have no standardized meaning under IFRS and therefore, may not be comparable to similar measures presented by other issuers. |
(d) | “Capital expenditures from continuing operations” is as reported as “Additions to property, plant and equipment” on the interim condensed consolidated statements of cash flows. |
(e) | “Average realized gold price per ounce from continuing operations” is defined as gold metal sales from continuing operations divided by total gold ounces sold from continuing operations. |
(f) | “Production cost of sales from continuing operations per equivalent ounce sold” is defined as production cost of sales divided by total gold equivalent ounces sold from continuing operations. |
(g) | “Attributable all-in cost” includes Kinross’ share of |
The following operating and financial results are based on third-quarter gold equivalent production:
Production: Kinross produced 585,449 Au eq. oz. in Q3 2023 from continuing operations, compared with 529,155 Au eq. oz. in Q3 2022. The 11% year-over-year increase was primarily attributable to higher mill grades, recovery and throughput at Tasiast, higher production at La Coipa due to the ramp-up of operations in 2022, and higher production at Paracatu due to higher throughput and timing of ounces processed.
Average realized gold price: The average realized gold price from continuing operations in Q3 2023 was
Revenue: During the third quarter, revenue from continuing operations increased to
Production cost of sales: Production cost of sales1 from continuing operations per Au eq. oz. sold decreased to
Production cost of sales from continuing operations per Au oz. sold2 on a by-product basis decreased to
Margins3: Kinross’ margin from continuing operations per Au eq. oz. sold increased to
All-in sustaining cost2: All-in sustaining cost from continuing operations per Au eq. oz. sold was
In Q3 2023, all-in sustaining cost from continuing operations per Au oz. sold on a by-product basis was
Operating cash flow: Operating cash flow from continuing operations4 was
Adjusted operating cash flow from continuing operations2 increased to
Free cash flow2: Free cash flow from continuing operations in Q3 2023 was
Earnings: Reported net earnings5 from continuing operations increased to
Adjusted net earnings from continuing operations2,6 was
Capital expenditures: Capital expenditures from continuing operations increased to
Balance sheet
As of
The Company had available credit9 of approximately
In the third quarter of 2023, the Company issued
Return of capital
As part of its continuing quarterly dividend program, the Company declared a dividend of
Operating results
Mine-by-mine summaries for 2023 third-quarter operating results may be found on pages 12 and 16 of this news release. Highlights include the following:
Tasiast had another strong quarter and achieved record quarterly production and sales. Quarter-over-quarter, production increased mainly due to higher throughput and cost of sales per ounce sold was slightly higher due to the timing of inventory movements. Year-over-year production increased mainly due to higher grades, recoveries and throughput as mining continued in the higher-grade section of
Paracatu delivered higher production in both comparable periods. Quarter-over-quarter production increased mainly due to the timing of processing higher-grade ounces from the southwest area of the pit, and year-over-year production increased mainly due to higher throughput and timing of ounces processed. Cost of sales per ounce sold were slightly higher quarter-over-quarter due to timing of inventory movements and lower year-over-year mainly due to the increase in production.
La Coipa performed well with an increase in production in both comparable periods mainly due to higher throughput and grades. Cost of sales per ounce sold was slightly lower compared with the previous quarter, and higher year-over-year mainly due to increased production as the site reached higher production following its ramp-up in 2022.
At Fort Knox, quarter-over-quarter production increased due to more ounces recovered from the heap leach pads. Cost of sales per ounce sold was in line compared with the previous quarter. Year-over-year production was lower mainly due to lower mill throughput, partially offset by higher mill grade and an increase in ounces recovered from the heap leach pads. Cost of sales per ounce sold was slightly lower compared with Q3 2022 mainly due to planned mine sequencing involving less operating waste mined.
At Round Mountain, production increased compared with the previous quarter primarily due to higher-grade ore from Phase W2. Quarter-over-quarter, cost of sales per ounce sold was slightly higher due to timing of ounces recovered from the heap leach pads, however it was lower than expected due to increased stacking and mill grades. Year-over-year, production increased slightly due to higher grades, and cost of sales per ounce sold increased mainly as a result of less capital development.
At
Projects and exploration updates
Tasiast Solar Power Plant
The Tasiast solar power plant, which has power generation capacity of 34MW and a battery system of 18MW, continues to advance on plan for solar power-to-grid by the end of the year. Integration and load scenario testing is expected to continue into early 2024 while delivering maximum allowable power. Installation of the photovoltaic panels, inverters and transformer stations are complete, and the battery system installation is well progressed and awaiting battery module delivery. Electrical works and completion of the grid connection are continuing with pre-commissioning testing of the panel arrays and inverters underway.
At the
Kinross’ focus this year is on inferred drilling in the area half a kilometre to one kilometre below surface. In the second quarter, the Company began using directional drilling, which allows multiple drill holes to branch off from a single pilot hole. The system is now being used on 6 of the 11 drills on site to target the LP Fault and Hinge zones, with the goal of further delineating the deposit at depth as well as adding inferred resource ounces. This is complemented by additional exploration drilling on other areas of the property.
Drilling-to-date has demonstrated potential for a meaningful increase in the LP Fault underground resource and the potential of the Hinge and Limb zones to supplement the LP Fault zone with their demonstrated continuity of mineralization at depth. The Company expects to declare a resource update as part of its year-end results.
Since the last update on
Notable exploration results10 at
- BR-696 (Bruma) 4.1 m @ 15.53 g/t Au at a vertical depth of 1150 m
- Including 1.4 m @ 45.60 g/t Au
- BR-778C1 (Yuma) 14.2 m @ 5.63 g/t Au at a vertical depth of 1075 m
- Including 4.9 m @ 15.57 g/t Au
- BR-806 (Discovery) 3.6 m @ 11.20 g/t Au at a vertical depth of 600 m
- BR-814C1A (Yauro) 8.3 m @ 5.28 g/t Au at a vertical depth of 700 m
- BR-825 (Viggo) 0.5 m @ 147.0 g/t Au at a vertical depth of 580 m
- DL-085C7 (Hinge) 2.8 m @ 259.45 g/t Au at a vertical depth of 870 m
Recent results continue to support the view of a high-grade, large, long-life mining complex. Holes BR-696 and BR-778C1 continue to demonstrate the potential for wide, high-grade mineralization at greater than 1-kilometre vertical depth under Bruma and Yuma while holes BR-806 and BR-814C1A demonstrate the continuity between the new deep intercepts and the current resource. Hole BR-825 intersected 0.5 m @ 147 g/t in under-tested ground between Viggo and Auro demonstrating potential that mineralization exists at depths greater than 500 m between the two zones.
With the goal of deep resource growth, recent drilling at the Hinge zone has yielded promising results. The more accurate targeting, afforded through directional drilling, has allowed for precise infill drilling of the known quartz vein hosted mineralization at approximately 900 m vertical depth. Following on the success of previously reported holes DL-132 and DL-142, hole DL-085C7 has intersected 2.8 m @ 259 g/t, showing continuity of mineralization.
For the main project, Kinross continues to advance technical studies, including engineering and field testwork campaigns, with plans to release the results of this work in the form of a preliminary economic assessment in the second half of 2024. Also underway is geochemical work that includes static testing, humidity cells, column testing, tailings residue sampling and field leach barrels. An extensive field bedrock and soils geotechnical drilling and testing program was kicked off in August, building on the campaign completed late last year. Bedrock geotechnical analysis is indicating very robust rock strengths in both the open pit and underground.
The Company continues to progress studies and provincial permitting for an advanced exploration program that would establish an underground decline to obtain a bulk sample and allow for definition and infill drilling in the LP Fault zone. Feasibility level engineering for advanced exploration infrastructure is now complete and the procurement process for long-lead items such as the camp, power infrastructure and water treatment plant is progressing well.
Kinross is targeting a potential start of the surface construction for the advanced exploration program in the second half of 2024, subject to receipt of permits.
Permitting for the main project is ongoing at both the provincial and federal levels. Permitting efforts have been initiated with the
Selected Great Bear Drill Results
See Appendix A for full results.
Hole ID | From (m) | To (m) | Width (m) | True Width (m) | Au (g/t) | Target | |
BR-696 | 1,347.7 | 1,352.2 | 4.5 | 4.1 | 15.53 | Bruma | |
BR-696 | including | 1,349.2 | 1,350.7 | 1.5 | 1.4 | 45.60 | |
BR-696 | and | 1,364.1 | 1,367.8 | 3.7 | 3.4 | 1.33 | |
BR-696 | and | 1,510.0 | 1,514.0 | 4.0 | 3.7 | 0.53 | |
BR-696 | and | 1,521.0 | 1,526.4 | 5.4 | 5.0 | 0.41 | |
BR-696 | and | 1,539.4 | 1,543.5 | 4.1 | 3.8 | 0.43 | |
BR-696 | and | 1,568.0 | 1,578.0 | 10.0 | 9.2 | 0.63 | |
BR-696 | and | 1,583.5 | 1,587.2 | 3.7 | 3.4 | 0.75 | |
BR-696 | and | 1,594.5 | 1,597.5 | 3.0 | 2.8 | 0.33 | |
BR-696 | and | 1,599.6 | 1,603.2 | 3.6 | 3.3 | 0.40 | |
BR-778C1 | 1,392.7 | 1,396.1 | 3.4 | 2.3 | 0.64 | Yuma | |
BR-778C1 | and | 1,452.8 | 1,473.4 | 20.6 | 14.2 | 5.63 | |
BR-778C1 | including | 1,466.3 | 1,473.4 | 7.1 | 4.9 | 15.57 | |
BR-778C1 | and | 1,489.0 | 1,546.7 | 57.7 | 39.8 | 0.94 | |
BR-778C1 | including | 1,534.8 | 1,540.3 | 5.5 | 3.8 | 6.16 | |
BR-778C1 | and | 1,559.2 | 1,572.8 | 13.7 | 9.4 | 4.51 | |
BR-778C1 | including | 1,565.9 | 1,568.3 | 2.4 | 1.6 | 22.81 | |
BR-778C1 | and | 1,595.3 | 1,602.5 | 7.2 | 4.9 | 2.01 | |
BR-778C1 | including | 1,598.6 | 1,600.8 | 2.2 | 1.5 | 4.23 | |
BR-806 | 732.9 | 738.0 | 5.1 | 3.6 | 11.20 | Discovery | |
BR-806 | including | 736.7 | 738.0 | 1.4 | 0.9 | 39.50 | |
BR-806 | and | 785.4 | 795.4 | 10.0 | 7.0 | 0.47 | |
BR-806 | and | 810.0 | 824.1 | 14.1 | 9.9 | 0.60 | |
BR-806 | and | 844.0 | 875.3 | 31.3 | 21.9 | 0.51 | |
BR-814C1A | 850.5 | 853.5 | 3.0 | 2.2 | 1.95 | Yauro | |
BR-814C1A | and | 867.6 | 879.0 | 11.4 | 8.3 | 5.28 | |
BR-814C1A | including | 868.6 | 877.0 | 8.4 | 6.1 | 6.95 | |
BR-814C1A | and | 880.0 | 883.0 | 3.0 | 2.2 | 0.36 | |
BR-814C1A | and | 899.4 | 903.0 | 3.6 | 2.6 | 0.54 | |
BR-814C1A | and | 927.0 | 928.5 | 1.5 | 1.1 | 17.00 | |
BR-825 | 696.8 | 896.4 | 199.6 | 157.7 | 0.51 | Viggo | |
BR-825 | including | 741.2 | 741.8 | 0.6 | 0.5 | 147.00 | |
DL-085C7 | 868.0 | 871.5 | 3.5 | 2.8 | 259.45 | Hinge | |
DL-085C7 | including | 869.8 | 870.3 | 0.5 | 0.4 | 908.00 |
Results are preliminary in nature and are subject to on-going QA/QC. Lengths are subject to rounding.
See Appendix B for a LP Fault zone long section.
See Appendix C for a Hinge zone long section.
At the 70% owned
At Fort Knox, where the Manh Choh ore will be processed, outdoor construction continues to progress with all concrete works complete. Work continues inside the mill with progress on tanks and piping and further work on additional mill modifications expected during the winter months.
A groundbreaking ceremony was held during the quarter and Kinross was pleased to welcome Chief
Round Mountain
At
Kinross is pleased to announce that the optimization work at Phase S over the last year has resulted in an improved design with a lower overall strip ratio, higher grade, similar overall ounces, and a significantly lower capital investment and cash outflow. This was achieved by stepping-in the pit design in areas that had higher stripping, lower-margin ounces and identifying opportunities to add some near-surface, lower-strip ounces that come earlier in the plan, helping to reduce the cash outflow in the near term. With this optimized design and plan, at current gold prices we expect
Phase S is expected to increase life-of-mine production by approximately 750,000 Au eq. oz. and generate an incremental internal rate of return11 (IRR) of 45% and incremental net present value11 (NPV) of
Phase S was included in the Company's 2022 year-end estimated mineral reserves and the Company expects to provide an update with the optimized Phase S design at the 2023 year-end.
Round Mountain Phase S | |
Operational metric | Incremental Phase S estimate11 |
NPV (5%) (million) | |
IRR | 45% |
Total life-of-mine cash flow (million) | |
Total production (thousand Au oz.) | ~750 |
Initial capital costs (million)12 | |
Initial capital costs (million) (strip)11, 12 | |
Sustaining capital costs (million) | |
Payback | 2027 |
Total material mined (million tonnes) | 153 |
Average strip ratio | 2.1 |
Ore milled (million tonnes) | 17 |
Ore leached (million tonnes) | 32 |
Mill grade | 0.83 g/t |
Leach grade | 0.52 g/t |
Round Mountain Phase S gold price sensitivity estimates (incremental) Average gold price | |||||
Financial Metric | |||||
Incremental IRR | 19% | 33% | 45% | 58% | 70% |
Incremental NPV |
The combination of the optimization results and extensive technical diligence completed over the last year on Phase S provides confidence in strong returns and margins while proceeding with this next phase of mine life at
By providing meaningful production scale at
While still mining Phase S,
At Phase X, construction of the exploration decline continues to progress well with approximately 1,000 metres developed so far, remaining on plan to start definition drilling in early 2024. Kinross has also initiated technical studies for the Phase X project. Phase X is envisioned to be a bulk long-hole open stoping operation. Current intercepts suggest 3 to 4 g/t average stope grades.
At Gold Hill, located approximately seven kilometres northeast of
Kinross’ activities in
At the Curlew Basin exploration project in
The top three significant intercepts received during the quarter include:
- Roadrunner:
- RR-1168 – 14.2m @ 16.5 g/t Au, includes 7.3m @ 25.3 g/t Au
- ST-1179 – 4.7m @ 11.7 g/t Au
- K2N-1171 – 3.9m @ 11.3 g/t Au
Results-to-date continue to demonstrate the high grade and upside potential of the
Company Guidance
The following section of the news release represents forward-looking information and users are cautioned that actual results may vary. We refer to the risks and assumptions contained in the Cautionary Statement on Forward-Looking Information on page 29.
The Company is on track to meet its 2023 production guidance range of 2.1 million Au eq. oz. (+/- 5%) and all-in sustaining cost guidance range.
The Company is tracking in the lower end of its production cost of sales guidance range of
Kinross’ annual production is expected to remain stable in 2024 and 2025 at 2.1 million and 2.0 million attributable14 Au eq. oz. (+/- 5%), respectively.
Environment, Social and Governance (ESG) update
In accordance with the Company’s updated ESG strategy, Kinross has conducted a comprehensive review of its Community Engagement Management System with the objective of supporting sites with improved clarity and ease of application. Kinross’ updated Social Performance Management System will be rolled out across sites beginning in late 2023, on plan, and will enhance local accountability with clear expectations and guidance recognizing the role that all site functions have in social performance.
Kinross completed the first steps towards developing a specific Natural Capital Strategy to enhance the approach in this priority focus area. Natural capital is fundamentally about minimizing loss, ensuring reclamation and the restoration of valuable natural habitats through proper water, air, and mining waste management, as well as wholistic mine closure. Kinross’ vision for natural capital builds upon the sustainability foundation established across its operations and projects.
Kinross has also progressed on its Climate Strategy. The Tasiast 34MW photovoltaic solar facility is one of the important steps the Company is taking to address climate change through renewable energy projects. Kinross is also focused on renewable power purchase agreements, electric autonomous haulage partnerships, and energy-efficient opportunities across sites. The outcome of these initiatives is that Kinross is on track to achieve its greenhouse gas reduction goal of reducing emissions intensity by 30% in 2030 from its baseline.
Conference call details
In connection with this news release, Kinross will hold a conference call and audio webcast on
Outside of
Replay (available up to 14 days after the call):
Outside of
You may also access the conference call on a listen-only basis via webcast at our website www.kinross.com. The audio webcast will be archived on www.kinross.com.
This release should be read in conjunction with Kinross’ 2023 third-quarter unaudited Financial Statements and Management’s Discussion and Analysis report at www.kinross.com. Kinross’ 2023 third-quarter unaudited Financial Statements and Management’s Discussion and Analysis have been filed with Canadian securities regulators (available at www.sedar.com) and furnished with the
About
Kinross is a Canadian-based global senior gold mining company with operations and projects in
Media Contact
Senior Director, Corporate Communications
phone: 647-788-4153
victoria.barrington@kinross.com
Investor Relations Contact
Vice-President, Investor Relations
phone: 416-365-2761
chris.lichtenheldt@kinross.com
Review of operations
Three months ended | Gold equivalent ounces | ||||||||||||||
Produced | Sold | Production cost of sales ($millions) | Production cost of sales/equivalent ounce sold | ||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||
Tasiast | 171,140 | 132,754 | 162,823 | 128,014 | $ | 108.5 | $ | 94.8 | $ | 666 | $ | 741 | |||
Paracatu | 172,482 | 159,113 | 167,105 | 152,616 | 141.2 | 131.1 | 845 | 859 | |||||||
La Coipa | 65,975 | 33,955 | 65,856 | 24,681 | 41.4 | 12.2 | 629 | 494 | |||||||
Fort Knox | 71,611 | 75,522 | 71,616 | 74,221 | 82.3 | 88.6 | 1,149 | 1,194 | |||||||
Round Mountain | 63,648 | 62,417 | 61,931 | 61,757 | 93.1 | 87.0 | 1,503 | 1,409 | |||||||
40,593 | 65,394 | 41,300 | 52,472 | 53.9 | 51.2 | 1,305 | 976 | ||||||||
United States Total | 175,852 | 203,333 | 174,847 | 188,450 | 229.3 | 226.8 | 1,311 | 1,204 | |||||||
Maricunga | - | - | 617 | 652 | 0.2 | 0.4 | 324 | 613 | |||||||
Continuing Operations Total | 585,449 | 529,155 | 571,248 | 494,413 | 520.6 | 465.3 | 911 | 941 | |||||||
Discontinued Operations | |||||||||||||||
- | - | - | - | - | - | $ | - | $ | - | ||||||
Chirano (100%) | - | 13,522 | - | 15,018 | - | 24.3 | - | 1,618 | |||||||
- | 13,522 | - | 15,018 | - | 24.3 | ||||||||||
Nine months ended | Gold equivalent ounces | ||||||||||||||
Produced | Sold | Production cost of sales ($millions) | Production cost of sales/equivalent ounce sold | ||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||
Tasiast | 460,029 | 395,589 | 443,866 | 372,273 | $ | 296.4 | $ | 283.9 | $ | 668 | $ | 763 | |||
Paracatu | 460,059 | 396,545 | 459,338 | 387,974 | 394.4 | 367.3 | 859 | 947 | |||||||
La Coipa | 186,315 | 41,893 | 195,014 | 31,780 | 129.9 | 17.8 | 666 | 560 | |||||||
Fort Knox | 206,436 | 207,509 | 206,226 | 204,732 | 239.2 | 248.6 | 1,160 | 1,214 | |||||||
Round Mountain | 179,926 | 164,445 | 177,569 | 160,171 | 275.1 | 214.1 | 1,549 | 1,337 | |||||||
113,742 | 155,573 | 130,764 | 147,961 | 166.4 | 146.0 | 1,273 | 987 | ||||||||
United States Total | 500,104 | 527,527 | 514,559 | 512,864 | 680.7 | 608.7 | 1,323 | 1,187 | |||||||
Maricunga | - | - | 1,770 | 2,328 | 1.0 | 1.5 | 565 | 644 | |||||||
Continuing Operations Total | 1,606,507 | 1,361,554 | 1,614,547 | 1,307,219 | 1,502.4 | 1,279.2 | 931 | 979 | |||||||
Discontinued Operations | |||||||||||||||
- | 169,156 | - | 122,295 | - | 83.8 | - | 685 | ||||||||
Chirano (100%) | - | 82,060 | - | 87,823 | - | 131.2 | - | 1,494 | |||||||
- | 251,216 | - | 210,118 | - | 215.0 |
Interim condensed consolidated balance sheets
(unaudited, expressed in millions of | |||||||||
As at | |||||||||
2023 | 2022 | ||||||||
Assets | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 464.9 | $ | 418.1 | |||||
Restricted cash | 8.9 | 10.1 | |||||||
Accounts receivable and other assets | 280.9 | 318.2 | |||||||
Current income tax recoverable | 6.2 | 8.5 | |||||||
Inventories | 1,202.3 | 1,072.2 | |||||||
Unrealized fair value of derivative assets | 15.3 | 25.5 | |||||||
1,978.5 | 1,852.6 | ||||||||
Non-current assets | |||||||||
Property, plant and equipment | 7,843.1 | 7,741.4 | |||||||
Long-term investments | 65.2 | 116.9 | |||||||
Other long-term assets | 700.6 | 680.9 | |||||||
Deferred tax assets | 5.7 | 4.6 | |||||||
Total assets | $ | 10,593.1 | $ | 10,396.4 | |||||
Liabilities | |||||||||
Current liabilities | |||||||||
Accounts payable and accrued liabilities | $ | 545.8 | $ | 550.0 | |||||
Current income tax payable | 79.8 | 89.4 | |||||||
Current portion of long-term debt and credit facilities | 32.0 | 36.0 | |||||||
Current portion of provisions | 58.6 | 50.8 | |||||||
Other current liabilities | 16.1 | 25.3 | |||||||
732.3 | 751.5 | ||||||||
Non-current liabilities | |||||||||
Long-term debt and credit facilities | 2,383.3 | 2,556.9 | |||||||
Provisions | 768.9 | 755.9 | |||||||
Long-term lease liabilities | 20.2 | 23.1 | |||||||
Other long-term liabilities | 129.1 | 125.3 | |||||||
Deferred tax liabilities | 394.3 | 301.5 | |||||||
Total liabilities | $ | 4,428.1 | $ | 4,514.2 | |||||
Equity | |||||||||
Common shareholders' equity | |||||||||
Common share capital | $ | 4,480.8 | $ | 4,449.5 | |||||
Contributed surplus | 10,645.8 | 10,667.5 | |||||||
Accumulated deficit | (9,011.2 | ) | (9,251.6 | ) | |||||
Accumulated other comprehensive income (loss) | (55.0 | ) | (41.7 | ) | |||||
Total common shareholders' equity | 6,060.4 | 5,823.7 | |||||||
Non-controlling interests | 104.6 | 58.5 | |||||||
Total equity | 6,165.0 | 5,882.2 | |||||||
Total liabilities and equity | $ | 10,593.1 | $ | 10,396.4 | |||||
Common shares | |||||||||
Authorized | Unlimited | Unlimited | |||||||
Issued and outstanding | 1,227,699,367 | 1,221,891,341 | |||||||
Interim condensed consolidated statements of operations
(unaudited, expressed in millions of | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Revenue | |||||||||||||||||
Metal sales | $ | 1,102.4 | $ | 856.5 | $ | 3,124.0 | $ | 2,378.9 | |||||||||
Cost of sales | |||||||||||||||||
Production cost of sales | 520.6 | 465.3 | 1,502.4 | 1,279.2 | |||||||||||||
Depreciation, depletion and amortization | 263.9 | 185.1 | 715.1 | 532.1 | |||||||||||||
Total cost of sales | 784.5 | 650.4 | 2,217.5 | 1,811.3 | |||||||||||||
Gross profit | 317.9 | 206.1 | 906.5 | 567.6 | |||||||||||||
Other operating expense | 14.9 | 12.2 | 82.1 | 83.7 | |||||||||||||
Exploration and business development | 51.0 | 42.3 | 134.3 | 105.6 | |||||||||||||
General and administrative | 25.8 | 40.3 | 82.2 | 100.5 | |||||||||||||
Operating earnings | 226.2 | 111.3 | 607.9 | 277.8 | |||||||||||||
Other (expense) income - net | (0.3 | ) | 5.6 | (6.3 | ) | (0.4 | ) | ||||||||||
Finance income | 11.3 | 6.5 | 32.2 | 10.7 | |||||||||||||
Finance expense | (25.9 | ) | (23.3 | ) | (79.4 | ) | (68.0 | ) | |||||||||
Earnings from continuing operations before tax | 211.3 | 100.1 | 554.4 | 220.1 | |||||||||||||
Income tax expense - net | (102.4 | ) | (34.5 | ) | (204.2 | ) | (82.7 | ) | |||||||||
Earnings from continuing operations after tax | 108.9 | 65.6 | 350.2 | 137.4 | |||||||||||||
Loss from discontinued operations after tax | - | (0.8 | ) | - | (636.3 | ) | |||||||||||
Net earnings (loss) | $ | 108.9 | $ | 64.8 | $ | 350.2 | $ | (498.9 | ) | ||||||||
Net earnings (loss) from continuing operations attributable to: | |||||||||||||||||
Non-controlling interests | $ | (0.8 | ) | $ | (0.3 | ) | $ | (0.7 | ) | $ | (0.5 | ) | |||||
Common shareholders | $ | 109.7 | $ | 65.9 | $ | 350.9 | $ | 137.9 | |||||||||
Net earnings (loss) from discontinued operations attributable to: | |||||||||||||||||
Non-controlling interests | $ | - | $ | 0.2 | $ | - | $ | 0.8 | |||||||||
Common shareholders | $ | - | $ | (1.0 | ) | $ | - | $ | (637.1 | ) | |||||||
Net earnings (loss) attributable to: | |||||||||||||||||
Non-controlling interests | $ | (0.8 | ) | $ | (0.1 | ) | $ | (0.7 | ) | $ | 0.3 | ||||||
Common shareholders | $ | 109.7 | $ | 64.9 | $ | 350.9 | $ | (499.2 | ) | ||||||||
Earnings per share from continuing operations attributable to common shareholders | |||||||||||||||||
Basic | $ | 0.09 | $ | 0.05 | $ | 0.29 | $ | 0.11 | |||||||||
Diluted | $ | 0.09 | $ | 0.05 | $ | 0.28 | $ | 0.11 | |||||||||
Earnings (loss) per share from discontinued operations attributable to common shareholders | $ | - | $ | - | $ | - | $ | (0.49 | ) | ||||||||
Basic | $ | - | $ | - | $ | - | $ | (0.49 | ) | ||||||||
Diluted | |||||||||||||||||
Earnings (loss) per share attributable to common shareholders | |||||||||||||||||
Basic | $ | 0.09 | $ | 0.05 | $ | 0.29 | $ | (0.39 | ) | ||||||||
Diluted | $ | 0.09 | $ | 0.05 | $ | 0.28 | $ | (0.39 | ) |
Interim condensed consolidated statements of cash flows
(unaudited, expressed in millions of | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Net inflow (outflow) of cash related to the following activities: | |||||||||||||||||
Operating: | |||||||||||||||||
Earnings from continuing operations after tax | $ | 108.9 | $ | 65.6 | $ | 350.2 | $ | 137.4 | |||||||||
Adjustments to reconcile net earnings from continuing operations to net cash provided from operating activities: | |||||||||||||||||
Depreciation, depletion and amortization | 263.9 | 185.1 | 715.1 | 532.1 | |||||||||||||
Share-based compensation expense | 2.9 | 1.4 | 4.3 | 7.4 | |||||||||||||
Finance expense | 25.9 | 23.3 | 79.4 | 68.0 | |||||||||||||
Deferred tax expense | 74.1 | 5.5 | 92.8 | 3.4 | |||||||||||||
Foreign exchange losses (gains) and other | 13.0 | (1.5 | ) | 34.8 | 8.2 | ||||||||||||
Reclamation (recovery) expense | (18.1 | ) | (20.0 | ) | (14.1 | ) | 3.9 | ||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Accounts receivable and other assets | (21.0 | ) | (15.6 | ) | 66.6 | 47.0 | |||||||||||
Inventories | (10.1 | ) | (70.0 | ) | (93.2 | ) | (222.4 | ) | |||||||||
Accounts payable and accrued liabilities | (15.0 | ) | 12.9 | 70.4 | 64.0 | ||||||||||||
Cash flow provided from operating activities | 424.5 | 186.7 | 1,306.3 | 649.0 | |||||||||||||
Income taxes paid | (17.7 | ) | (13.5 | ) | (111.9 | ) | (120.8 | ) | |||||||||
Net cash flow of continuing operations provided from operating activities | 406.8 | 173.2 | 1,194.4 | 528.2 | |||||||||||||
Net cash flow of discontinued operation provided from (used in) operating activities | - | (1.6 | ) | - | 47.6 | ||||||||||||
Investing: | |||||||||||||||||
Additions to property, plant and equipment | (283.9 | ) | (197.3 | ) | (787.0 | ) | (447.4 | ) | |||||||||
Interest paid capitalized to property, plant and equipment | (43.0 | ) | (20.5 | ) | (89.8 | ) | (36.7 | ) | |||||||||
Acquisitions net of cash acquired | - | - | - | (1,027.5 | ) | ||||||||||||
Net (additions) disposals to long-term investments and other assets | (2.5 | ) | (9.5 | ) | 2.4 | (43.6 | ) | ||||||||||
(Increase) decrease in restricted cash - net | (0.2 | ) | (1.2 | ) | 1.2 | (2.3 | ) | ||||||||||
Interest received and other - net | 6.6 | 2.0 | 13.5 | 6.7 | |||||||||||||
Net cash flow of continuing operations used in investing activities | (323.0 | ) | (226.5 | ) | (859.7 | ) | (1,550.8 | ) | |||||||||
Net cash flow of discontinued operations provided from investing activities | - | 43.3 | 45.0 | 296.2 | |||||||||||||
Financing: | |||||||||||||||||
Proceeds from issuance or drawdown of debt | 488.1 | 100.0 | 588.1 | 1,197.6 | |||||||||||||
Repayment of debt | (550.0 | ) | (200.0 | ) | (770.0 | ) | (320.0 | ) | |||||||||
Interest paid | (26.5 | ) | (26.2 | ) | (53.0 | ) | (51.8 | ) | |||||||||
Payment of lease liabilities | (4.4 | ) | (6.0 | ) | (25.5 | ) | (17.1 | ) | |||||||||
Funding from non-controlling interest | 27.0 | - | 38.8 | 1.5 | |||||||||||||
Dividends paid to common shareholders | (36.8 | ) | (39.0 | ) | (110.5 | ) | (116.9 | ) | |||||||||
Repurchase and cancellation of shares | - | (60.2 | ) | - | (60.2 | ) | |||||||||||
Other - net | 6.3 | (4.9 | ) | (1.2 | ) | 2.4 | |||||||||||
Net cash flow of continuing operations (used in) provided from financing activities | (96.3 | ) | (236.3 | ) | (333.3 | ) | 635.5 | ||||||||||
Net cash flow of discontinued operations provided from financing activities | - | - | - | - | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents of continuing operations | (1.0 | ) | (1.0 | ) | 0.4 | (1.4 | ) | ||||||||||
Effect of exchange rate changes on cash and cash equivalents of discontinued operations | - | (0.3 | ) | - | 1.6 | ||||||||||||
(Decrease) increase in cash and cash equivalents | (13.5 | ) | (249.2 | ) | 46.8 | (43.1 | ) | ||||||||||
Cash and cash equivalents, beginning of period | 478.4 | 719.1 | 418.1 | 531.5 | |||||||||||||
Cash and cash equivalents of assets held for sale, beginning of period | - | 18.5 | - | - | |||||||||||||
Cash and cash equivalents, end of period | $ | 464.9 | $ | 488.4 | $ | 464.9 | $ | 488.4 |
Operating Summary | ||||||||||||||||||||
Mine | Period | Tonnes Ore Mined | Ore Processed (Milled) | Ore Processed (Heap Leach) | Grade (Heap Leach) | Recovery (a)(d) | Gold Eq Production(b) | Gold Eq Sales(b) | Production cost of sales | Production cost of sales/oz(c) | Cap Ex - sustaining(e) | Total Cap Ex (e) | DD&A | |||||||
('000 tonnes) | ('000 tonnes) | ('000 tonnes) | (g/t) | (g/t) | (%) | (ounces) | (ounces) | ($ millions) | ($/ounce) | ($ millions) | ($ millions) | ($ millions) | ||||||||
Tasiast | Q3 2023 | 3,486 | 1,796 | - | 3.10 | - | 92% | 171,140 | 162,823 | $ | 108.5 | $ | 666 | $ | 12.2 | $ | 77.3 | $ | 69.0 | |
Q2 2023 | 1,688 | 1,663 | - | 3.25 | - | 93% | 157,844 | 152,564 | $ | 99.5 | $ | 652 | $ | 9.1 | $ | 81.9 | $ | 58.6 | ||
Q1 2023 | 1,690 | 1,208 | - | 3.49 | - | 91% | 131,045 | 128,479 | $ | 88.4 | $ | 688 | $ | 14.6 | $ | 64.6 | $ | 46.2 | ||
Q4 2022 | 3,737 | 1,627 | - | 3.21 | - | 90% | 143,002 | 147,019 | $ | 96.2 | $ | 654 | $ | 38.3 | $ | 90.3 | $ | 48.7 | ||
Q3 2022 | 4,437 | 1,741 | - | 2.72 | - | 89% | 132,754 | 128,014 | $ | 94.8 | $ | 741 | $ | 3.6 | $ | 33.4 | $ | 58.0 | ||
Paracatu | Q3 2023 | 14,725 | 14,669 | - | 0.41 | - | 79% | 172,482 | 167,105 | $ | 141.2 | $ | 845 | $ | 58.4 | $ | 58.4 | $ | 53.1 | |
Q2 2023 | 14,199 | 15,104 | - | 0.42 | - | 80% | 164,243 | 163,889 | $ | 135.2 | $ | 825 | $ | 39.7 | $ | 39.7 | $ | 49.8 | ||
Q1 2023 | 8,056 | 15,130 | - | 0.37 | - | 79% | 123,334 | 128,344 | $ | 118.0 | $ | 919 | $ | 27.8 | $ | 27.8 | $ | 40.4 | ||
Q4 2022 | 13,324 | 13,847 | - | 0.50 | - | 81% | 180,809 | 183,190 | $ | 130.3 | $ | 711 | $ | 43.9 | $ | 43.9 | $ | 52.7 | ||
Q3 2022 | 11,752 | 13,797 | - | 0.45 | - | 79% | 159,113 | 152,616 | $ | 131.1 | $ | 859 | $ | 33.6 | $ | 33.6 | $ | 47.2 | ||
La Coipa(f) | Q3 2023 | 1,137 | 1,017 | - | 1.69 | - | 81% | 65,975 | 65,856 | $ | 41.4 | $ | 629 | $ | 7.5 | $ | 15.2 | $ | 48.3 | |
Q2 2023 | 869 | 971 | - | 1.62 | - | 81% | 66,744 | 67,378 | $ | 43.6 | $ | 647 | $ | 19.9 | $ | 23.3 | $ | 48.3 | ||
Q1 2023 | 748 | 691 | - | 1.68 | - | 88% | 53,596 | 61,780 | $ | 44.9 | $ | 727 | $ | 1.6 | $ | 25.4 | $ | 36.4 | ||
Q4 2022 | 1,047 | 933 | - | 1.47 | - | 84% | 67,683 | 68,135 | $ | 39.4 | $ | 578 | $ | 2.6 | $ | 46.0 | $ | 25.6 | ||
Q3 2022 | 1,079 | 637 | - | 1.19 | - | 83% | 33,955 | 24,681 | $ | 12.1 | $ | 490 | $ | 2.9 | $ | 34.7 | $ | - | ||
Fort Knox | Q3 2023 | 6,667 | 1,912 | 5,961 | 0.81 | 0.21 | 78% | 71,611 | 71,616 | $ | 82.3 | $ | 1,149 | $ | 52.1 | $ | 57.8 | $ | 24.6 | |
Q2 2023 | 7,624 | 2,075 | 6,837 | 0.82 | 0.24 | 82% | 69,438 | 69,206 | $ | 79.3 | $ | 1,146 | $ | 52.1 | $ | 58.2 | $ | 22.1 | ||
Q1 2023 | 7,412 | 1,966 | 5,972 | 0.78 | 0.22 | 82% | 65,387 | 65,404 | $ | 77.6 | $ | 1,186 | $ | 38.6 | $ | 39.1 | $ | 18.6 | ||
Q4 2022 | 12,205 | 2,395 | 11,454 | 0.69 | 0.20 | 79% | 83,739 | 87,061 | $ | 102.1 | $ | 1,173 | $ | 34.4 | $ | 39.1 | $ | 40.9 | ||
Q3 2022 | 15,547 | 2,477 | 13,120 | 0.71 | 0.21 | 80% | 75,522 | 74,221 | $ | 88.6 | $ | 1,194 | $ | 30.5 | $ | 31.0 | $ | 21.8 | ||
Round Mountain | Q3 2023 | 8,474 | 911 | 7,644 | 0.75 | 0.38 | 75% | 63,648 | 61,931 | $ | 93.1 | $ | 1,503 | $ | 7.7 | $ | 7.8 | $ | 44.1 | |
Q2 2023 | 10,496 | 1,021 | 10,028 | 0.67 | 0.35 | 76% | 57,446 | 57,412 | $ | 85.5 | $ | 1,489 | $ | 10.5 | $ | 10.5 | $ | 33.5 | ||
Q1 2023 | 5,019 | 878 | 4,367 | 0.81 | 0.44 | 79% | 58,832 | 58,226 | $ | 96.5 | $ | 1,657 | $ | 7.4 | $ | 7.4 | $ | 34.6 | ||
Q4 2022 | 5,177 | 962 | 4,772 | 0.74 | 0.36 | 74% | 61,929 | 67,484 | $ | 95.1 | $ | 1,409 | $ | 41.1 | $ | 41.1 | $ | 19.1 | ||
Q3 2022 | 8,856 | 1,021 | 8,336 | 0.64 | 0.27 | 79% | 62,417 | 61,757 | $ | 87.0 | $ | 1,409 | $ | 24.7 | $ | 24.7 | $ | 17.6 | ||
Q3 2023 | 7,412 | - | 7,412 | - | 0.39 | nm | 40,593 | 41,300 | $ | 53.9 | $ | 1,305 | $ | 20.6 | $ | 24.9 | $ | 23.3 | ||
Q2 2023 | 4,142 | - | 4,119 | - | 0.42 | nm | 39,321 | 42,181 | $ | 54.5 | $ | 1,292 | $ | 16.5 | $ | 31.4 | $ | 25.6 | ||
Q1 2023 | 1,864 | - | 1,857 | - | 0.47 | nm | 33,828 | 47,283 | $ | 58.0 | $ | 1,227 | $ | 6.1 | $ | 25.2 | $ | 33.9 | ||
Q4 2022 | 3,002 | - | 2,957 | - | 0.37 | nm | 58,521 | 66,847 | $ | 62.8 | $ | 939 | $ | 17.2 | $ | 37.4 | $ | 63.4 | ||
Q3 2022 | 4,152 | - | 4,152 | - | 0.37 | nm | 65,394 | 52,472 | $ | 51.2 | $ | 976 | $ | 10.4 | $ | 28.2 | $ | 39.1 |
(a) | Due to the nature of heap leach operations, recovery rates at |
(b) | Gold equivalent ounces include silver ounces produced and sold converted to a gold equivalent based on the ratio of the average spot market prices for the commodities for each period. The ratios for the quarters presented are as follows: Q3 2023: 81.82:1; Q2 2023: 81.88:1; Q1 2023: 83.82:1; Q4 2022: 81.88:1; Q3 2022: 89.91:1. |
(c) | “Production cost of sales per equivalent ounce sold” is defined as production cost of sales divided by total gold equivalent ounces sold from continuing operations. |
(d) | "nm" means not meaningful. |
(e) | "Total Cap Ex" is as reported as “Additions to property, plant and equipment” on the interim condensed consolidated statements of cash flows. "Capital expenditures - sustaining" is a non-GAAP financial measure. The definition and reconciliation of this non-GAAP financial measure is included on page 21 of this news release. |
(f) | La Coipa silver grade and recovery were as follows: Q3 2023: 106.70 g/t, 63%; Q2 2023: 109.84 g/t, 56%; Q1 2023: 125.77 g/t, 70%; Q4 2022: 137.53 g/t, 68%; Q3 2022: 121.06 g/t, 61%. |
Reconciliation of non-GAAP financial measures and ratios
The Company has included certain non-GAAP financial measures and ratios in this document. These financial measures and ratios are not defined under International Financial Reporting Standards (IFRS) and should not be considered in isolation. The Company believes that these financial measures and ratios, together with financial measures and ratios determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. The inclusion of these financial measures and ratios is meant to provide additional information and should not be used as a substitute for performance measures prepared in accordance with IFRS. These financial measures and ratios are not necessarily standard and therefore may not be comparable to other issuers.
All the non-GAAP financial measures and ratios in this document are from continuing operations and exclude results from the Company’s Chirano and Russian operations due to the classification of these operations as discontinued and their sale in 2022. As a result of the exclusion of Chirano, the following non-GAAP financial measures and ratios are no longer on an attributable basis, but on a total basis: production cost of sales from continuing operations per ounce sold on a by-product basis and all-in-sustaining cost from continuing operations per equivalent ounce sold and per ounce sold on a by-product basis.
Adjusted net earnings from continuing operations attributable to common shareholders and adjusted net earnings from continuing operations per share are non-GAAP financial measures and ratios which determine the performance of the Company, excluding certain impacts which the Company believes are not reflective of the Company’s underlying performance for the reporting period, such as the impact of foreign exchange gains and losses, reassessment of prior year taxes and/or taxes otherwise not related to the current period, impairment charges (reversals), gains and losses and other one-time costs related to acquisitions, dispositions and other transactions, and non-hedge derivative gains and losses. Although some of the items are recurring, the Company believes that they are not reflective of the underlying operating performance of its current business and are not necessarily indicative of future operating results. Management believes that these measures and ratios, which are used internally to assess performance and in planning and forecasting future operating results, provide investors with the ability to better evaluate underlying performance, particularly since the excluded items are typically not included in public guidance. However, adjusted net earnings from continuing operations and adjusted net earnings from continuing operations per share measures and ratios are not necessarily indicative of net earnings from continuing operations and earnings per share measures and ratios as determined under IFRS.
The following table provides a reconciliation of net earnings from continuing operations to adjusted net earnings from continuing operations for the periods presented:
(unaudited, expressed in millions of except per share amounts) | Three months ended | Nine months ended | ||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Net earnings from continuing operations attributable to common shareholders - as reported | $ | 109.7 | $ | 65.9 | $ | 350.9 | $ | 137.9 | ||||||
Adjusting items: | ||||||||||||||
Foreign exchange gains | (7.1 | ) | (5.9 | ) | (0.8 | ) | (0.1 | ) | ||||||
Foreign exchange losses (gains) on translation of tax basis and foreign exchange on deferred income taxes within income tax expense | 36.9 | 3.1 | 5.2 | (8.4 | ) | |||||||||
Taxes in respect of prior periods | 5.2 | 5.0 | 33.8 | 15.8 | ||||||||||
Reclamation (recovery) expense | (18.1 | ) | (20.0 | ) | (14.1 | ) | 3.9 | |||||||
Other(a) | 16.2 | 16.9 | 26.6 | 21.4 | ||||||||||
Tax effects of the above adjustments | 1.8 | 3.7 | (1.8 | ) | 4.4 | |||||||||
34.9 | 2.8 | 48.9 | 37.0 | |||||||||||
Adjusted net earnings from continuing operations attributable to common shareholders | $ | 144.6 | $ | 68.7 | $ | 399.8 | $ | 174.9 | ||||||
Weighted average number of common shares outstanding - Basic | 1,227.6 | 1,299.8 | 1,226.7 | 1,288.0 | ||||||||||
Adjusted net earnings from continuing operations per share | $ | 0.12 | $ | 0.05 | $ | 0.33 | $ | 0.14 | ||||||
Basic earnings per share from continuing operations attributable to common shareholders - as reported | $ | 0.09 | $ | 0.05 | $ | 0.29 | $ | 0.11 | ||||||
(a) | Other includes various impacts, such as one-time costs at sites, and gains and losses on hedges and the sale of assets, which the Company believes are not reflective of the Company’s underlying performance for the reporting period. |
Free cash flow from continuing operations is a non-GAAP financial measure and is defined as net cash flow of continuing operations provided from operating activities less additions to property, plant and equipment. The Company believes that this measure, which is used internally to evaluate the Company’s underlying cash generation performance and the ability to repay creditors and return cash to shareholders, provides investors with the ability to better evaluate the Company’s underlying performance. However, the free cash flow from continuing operations measure is not necessarily indicative of operating earnings or net cash flow of continuing operations provided from operating activities as determined under IFRS.
The following table provides a reconciliation of free cash flow from continuing operations for the periods presented:
(unaudited, expressed in millions of | Three months ended | Nine months ended | ||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Net cash flow of continuing operations provided from operating activities - as reported | $ | 406.8 | $ | 173.2 | $ | 1,194.4 | $ | 528.2 | ||||||
Less: Additions to property, plant and equipment | (283.9 | ) | (197.3 | ) | (787.0 | ) | (447.4 | ) | ||||||
Free cash flow from continuing operations | $ | 122.9 | $ | (24.1 | ) | $ | 407.4 | $ | 80.8 | |||||
Adjusted operating cash flow from continuing operations is a non-GAAP financial measure and is defined as net cash flow of continuing operations provided from operating activities excluding certain impacts which the Company believes are not reflective of the Company’s regular operating cash flow and excluding changes in working capital. Working capital can be volatile due to numerous factors, including the timing of tax payments. The Company uses adjusted operating cash flow from continuing operations internally as a measure of the underlying operating cash flow performance and future operating cash flow-generating capability of the Company. However, the adjusted operating cash flow from continuing operations measure is not necessarily indicative of net cash flow of continuing operations provided from operating activities as determined under IFRS.
The following table provides a reconciliation of adjusted operating cash flow from continuing operations for the periods presented:
(unaudited, expressed in millions of | Three months ended | Nine months ended | ||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Net cash flow of continuing operations provided from operating activities - as reported | $ | 406.8 | $ | 173.2 | $ | 1,194.4 | $ | 528.2 | ||||||
Adjusting items: | ||||||||||||||
Working capital changes: | ||||||||||||||
Accounts receivable and other assets | 21.0 | 15.6 | (66.6 | ) | (47.0 | ) | ||||||||
Inventories | 10.1 | 70.0 | 93.2 | 222.4 | ||||||||||
Accounts payable and other liabilities, including income taxes paid | 32.7 | 0.6 | 41.5 | 56.8 | ||||||||||
Total working capital changes | 63.8 | 86.2 | 68.1 | 232.2 | ||||||||||
Adjusted operating cash flow from continuing operations | $ | 470.6 | $ | 259.4 | $ | 1,262.5 | $ | 760.4 | ||||||
Production cost of sales from continuing operations per ounce sold on a by-product basis is a non-GAAP ratio which calculates the Company’s non-gold production as a credit against its per ounce production costs, rather than converting its non-gold production into gold equivalent ounces and crediting it to total production, as is the case in co-product accounting. Management believes that this ratio provides investors with the ability to better evaluate Kinross’ production cost of sales per ounce on a comparable basis with other major gold producers who routinely calculate their cost of sales per ounce using by-product accounting rather than co-product accounting.
The following table provides a reconciliation of production cost of sales from continuing operations per ounce sold on a by-product basis for the periods presented:
(unaudited, expressed in millions of except ounces and production cost of sales per equivalent ounce) | Three months ended | Nine months ended | ||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Production cost of sales from continuing operations - as reported | $ | 520.6 | $ | 465.3 | $ | 1,502.4 | $ | 1,279.2 | ||||||
Less: silver revenue(a) | (52.4 | ) | (23.6 | ) | (160.6 | ) | (37.0 | ) | ||||||
Production cost of sales from continuing operations net of silver by-product revenue | $ | 468.2 | $ | 441.7 | $ | 1,341.8 | $ | 1,242.2 | ||||||
Gold ounces sold from continuing operations | 544,199 | 480,775 | 1,531,816 | 1,286,196 | ||||||||||
Total gold equivalent ounces sold from continuing operations | 571,248 | 494,413 | 1,614,547 | 1,307,219 | ||||||||||
Production cost of sales from continuing operations per equivalent ounce sold(b) | $ | 911 | $ | 941 | $ | 931 | $ | 979 | ||||||
Production cost of sales from continuing operations per ounce sold on a by-product basis | $ | 860 | $ | 919 | $ | 876 | $ | 966 | ||||||
See Endnotes on page 21 for details of the footnotes referenced within the table above.
All-in sustaining cost and attributable all-in cost from continuing operations per ounce sold on a by-product basis are non-GAAP financial measures and ratios, as applicable, calculated based on guidance published by the
All-in sustaining cost includes both operating and capital costs required to sustain gold production on an ongoing basis. The value of silver sold is deducted from the total production cost of sales as it is considered residual production, i.e. a by-product. Sustaining operating costs represent expenditures incurred at current operations that are considered necessary to maintain current production. Sustaining capital represents capital expenditures at existing operations comprising mine development costs, including capitalized stripping, and ongoing replacement of mine equipment and other capital facilities, and does not include capital expenditures for major growth projects or enhancement capital for significant infrastructure improvements at existing operations.
All-in cost is comprised of all-in sustaining cost as well as operating expenditures incurred at locations with no current operation, or costs related to other non-sustaining activities, and capital expenditures for major growth projects or enhancement capital for significant infrastructure improvements at existing operations.
All-in sustaining cost and attributable all-in cost from continuing operations per ounce sold on a by-product basis are calculated by adjusting production cost of sales from continuing operations, as reported on the interim condensed consolidated statements of operations, as follows:
(unaudited, expressed in millions of except ounces and costs per ounce) | Three months ended | Nine months ended | ||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Production cost of sales from continuing operations - as reported | $ | 520.6 | $ | 465.3 | $ | 1,502.4 | $ | 1,279.2 | ||||||
Less: silver revenue from continuing operations(a) | (52.4 | ) | (23.6 | ) | (160.6 | ) | (37.0 | ) | ||||||
Production cost of sales from continuing operations net of silver by-product revenue | $ | 468.2 | $ | 441.7 | $ | 1,341.8 | $ | 1,242.2 | ||||||
Adjusting items: | ||||||||||||||
General and administrative(d) | 24.0 | 27.3 | 80.4 | 87.5 | ||||||||||
Other operating expense - sustaining(e) | 6.3 | 11.7 | 17.8 | 23.5 | ||||||||||
Reclamation and remediation - sustaining(f) | 14.1 | 10.7 | 46.8 | 28.5 | ||||||||||
Exploration and business development - sustaining(g) | 11.8 | 7.4 | 27.9 | 22.9 | ||||||||||
Additions to property, plant and equipment - sustaining(h) | 159.1 | 105.9 | 404.2 | 224.6 | ||||||||||
Lease payments - sustaining(i) | 4.2 | 5.6 | 24.9 | 16.3 | ||||||||||
All-in Sustaining Cost on a by-product basis | $ | 687.7 | $ | 610.3 | $ | 1,943.8 | $ | 1,645.5 | ||||||
Adjusting items on an attributable(c) basis: | ||||||||||||||
Other operating expense - non-sustaining(e) | 8.7 | 11.2 | 27.4 | 32.3 | ||||||||||
Reclamation and remediation - non-sustaining(f) | 1.2 | 2.8 | 5.4 | 6.1 | ||||||||||
Exploration and business development - non-sustaining(g) | 38.5 | 34.6 | 105.8 | 82.2 | ||||||||||
Additions to property, plant and equipment - non-sustaining(h) | 113.3 | 88.4 | 353.1 | 218.0 | ||||||||||
Lease payments - non-sustaining(i) | 0.2 | 0.4 | 0.6 | 0.8 | ||||||||||
All-in Cost on a by-product basis - attributable(c) | $ | 849.6 | $ | 747.7 | $ | 2,436.1 | $ | 1,984.9 | ||||||
Gold ounces sold from continuing operations | 544,199 | 480,775 | 1,531,816 | 1,286,196 | ||||||||||
Production cost of sales from continuing operations per equivalent ounce sold(b) | $ | 911 | $ | 941 | $ | 931 | $ | 979 | ||||||
All-in sustaining cost from continuing operations per ounce sold on a by-product basis | $ | 1,264 | $ | 1,269 | $ | 1,269 | $ | 1,279 | ||||||
Attributable(c) all-in cost from continuing operations per ounce sold on a by-product basis | $ | 1,561 | $ | 1,555 | $ | 1,590 | $ | 1,543 | ||||||
See Endnotes on page 21 for details of the footnotes referenced within the table above.
The Company also assesses its all-in sustaining cost and attributable all-in cost from continuing operations on a gold equivalent ounce basis. Under these non-GAAP financial measures and ratios, the Company’s production of silver is converted into gold equivalent ounces and credited to total production.
All-in sustaining cost and attributable all-in cost from continuing operations per equivalent ounce sold are calculated by adjusting production cost of sales from continuing operations, as reported on the interim condensed consolidated statements of operations, as follows:
(unaudited, expressed in millions of except ounces and costs per ounce) | Three months ended | Nine months ended | ||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Production cost of sales from continuing operations - as reported | $ | 520.6 | $ | 465.3 | $ | 1,502.4 | $ | 1,279.2 | ||||||
Adjusting items: | ||||||||||||||
General and administrative(d) | 24.0 | 27.3 | 80.4 | 87.5 | ||||||||||
Other operating expense - sustaining(e) | 6.3 | 11.7 | 17.8 | 23.5 | ||||||||||
Reclamation and remediation - sustaining(f) | 14.1 | 10.7 | 46.8 | 28.5 | ||||||||||
Exploration and business development - sustaining(g) | 11.8 | 7.4 | 27.9 | 22.9 | ||||||||||
Additions to property, plant and equipment - sustaining(h) | 159.1 | 105.9 | 404.2 | 224.6 | ||||||||||
Lease payments - sustaining(i) | 4.2 | 5.6 | 24.9 | 16.3 | ||||||||||
All-in Sustaining Cost | $ | 740.1 | $ | 633.9 | $ | 2,104.4 | $ | 1,682.5 | ||||||
Adjusting items on an attributable(c) basis: | ||||||||||||||
Other operating expense - non-sustaining(e) | 8.7 | 11.2 | 27.4 | 32.3 | ||||||||||
Reclamation and remediation - non-sustaining(f) | 1.2 | 2.8 | 5.4 | 6.1 | ||||||||||
Exploration and business development - non-sustaining(g) | 38.5 | 34.6 | 105.8 | 82.2 | ||||||||||
Additions to property, plant and equipment - non-sustaining(h) | 113.3 | 88.4 | 353.1 | 218.0 | ||||||||||
Lease payments - non-sustaining(i) | 0.2 | 0.4 | 0.6 | 0.8 | ||||||||||
All-in Cost - attributable(c) | $ | 902.0 | $ | 771.3 | $ | 2,596.7 | $ | 2,021.9 | ||||||
Gold equivalent ounces sold from continuing operations | 571,248 | 494,413 | 1,614,547 | 1,307,219 | ||||||||||
Production cost of sales from continuing operations per equivalent ounce sold(b) | $ | 911 | $ | 941 | $ | 931 | $ | 979 | ||||||
All-in sustaining cost from continuing operations per equivalent ounce sold | $ | 1,296 | $ | 1,282 | $ | 1,303 | $ | 1,287 | ||||||
Attributable(c) all-in cost from continuing operations per equivalent ounce sold | $ | 1,579 | $ | 1,560 | $ | 1,608 | $ | 1,547 | ||||||
See Endnotes on page 21 for details of the footnotes referenced within the table above.
Capital expenditures from continuing operations are classified as either sustaining capital expenditures or non-sustaining capital expenditures, depending on the nature of the expenditure. Sustaining capital expenditures typically represent capital expenditures at existing operations including capitalized exploration costs and capitalized stripping unless related to major projects, ongoing replacement of mine equipment and other capital facilities and other capital expenditures and is calculated as total additions to property, plant and equipment (as reported on the interim condensed consolidated statements of cash flows), less non-sustaining capital expenditures. Non-sustaining capital expenditures represent capital expenditures for major projects, including major capital stripping projects at existing operations that are expected to materially benefit the operation, as well as enhancement capital for significant infrastructure improvements at existing operations. Management believes this to be a useful indicator of the purpose of capital expenditures and this distinction is an input into the calculation of all-in sustaining costs from continuing operations per ounce and attributable all-in costs from continuing operations per ounce. The categorization of sustaining capital expenditures and non-sustaining capital expenditures is consistent with the definitions under the WGC all-in cost standard. Sustaining capital expenditures and non-sustaining capital expenditures are not defined under IFRS, however, the sum of these two measures total to additions to property, plant and equipment as disclosed under IFRS on the interim condensed consolidated statements of cash flows.
The following table provides a reconciliation of the classification of capital expenditures for the periods presented:
(unaudited, expressed in millions of | |||||||||||||||||||||
Three months ended | Tasiast ( | Paracatu ( | La Coipa ( | Fort Knox ( | Round Mountain ( | Other | Total | ||||||||||||||
Sustaining capital expenditures | $ | 12.2 | $ | 58.4 | $ | 7.5 | $ | 52.1 | $ | 7.7 | $ | 20.6 | $ | - | $ | 80.4 | $ | 0.6 | $ | 159.1 | |
Non-sustaining capital expenditures | 65.1 | - | 7.7 | 5.7 | 0.1 | 4.3 | 38.2 | 48.3 | 3.7 | 124.8 | |||||||||||
Additions to property, plant and equipment - per cash flow | $ | 77.3 | $ | 58.4 | $ | 15.2 | $ | 57.8 | $ | 7.8 | $ | 24.9 | $ | 38.2 | $ | 128.7 | $ | 4.3 | $ | 283.9 | |
Three months ended | |||||||||||||||||||||
Sustaining capital expenditures | $ | 3.6 | $ | 33.6 | $ | 2.9 | $ | 30.5 | $ | 24.7 | $ | 10.4 | $ | - | $ | 65.6 | $ | 0.2 | $ | 105.9 | |
Non-sustaining capital expenditures | 29.8 | - | 31.8 | 0.5 | - | 17.8 | 10.0 | 28.3 | 1.5 | 91.4 | |||||||||||
Additions to property, plant and equipment - per cash flow | $ | 33.4 | $ | 33.6 | $ | 34.7 | $ | 31.0 | $ | 24.7 | $ | 28.2 | $ | 10.0 | $ | 93.9 | $ | 1.7 | $ | 197.3 | |
(unaudited, expressed in millions of | |||||||||||||||||||||
Nine months ended | Tasiast ( | Paracatu ( | La Coipa ( | Fort Knox ( | Round Mountain ( | Other | Total | ||||||||||||||
Sustaining capital expenditures | $ | 35.9 | $ | 125.9 | $ | 29.0 | $ | 142.8 | $ | 25.6 | $ | 43.2 | $ | - | $ | 211.6 | $ | 1.8 | $ | 404.2 | |
Non-sustaining capital expenditures | 187.9 | - | 34.9 | 12.3 | 0.1 | 38.3 | 99.0 | 149.7 | 10.3 | 382.8 | |||||||||||
Additions to property, plant and equipment - per cash flow | $ | 223.8 | $ | 125.9 | $ | 63.9 | $ | 155.1 | $ | 25.7 | $ | 81.5 | $ | 99.0 | $ | 361.3 | $ | 12.1 | $ | 787.0 | |
Nine months ended | |||||||||||||||||||||
Sustaining capital expenditures | $ | 14.5 | $ | 80.8 | $ | 5.2 | $ | 44.3 | $ | 61.2 | $ | 18.2 | $ | - | $ | 123.7 | $ | 0.4 | $ | 224.6 | |
Non-sustaining capital expenditures | 62.6 | - | 104.3 | 2.7 | 0.1 | 32.0 | 16.1 | 50.9 | 5.0 | 222.8 | |||||||||||
Additions to property, plant and equipment - per cash flow | $ | 77.1 | $ | 80.8 | $ | 109.5 | $ | 47.0 | $ | 61.3 | $ | 50.2 | $ | 16.1 | $ | 174.6 | $ | 5.4 | $ | 447.4 |
(a) | Represents 100% of capital expenditures, of which 70% is Kinross’ share. |
Endnotes
(a) | “Silver revenue” represents the portion of metal sales realized from the production of the secondary or by-product metal (i.e. silver). Revenue from the sale of silver, which is produced as a by-product of the process used to produce gold, effectively reduces the cost of gold production. |
(b) | “Production cost of sales from continuing operations per equivalent ounce sold” is defined as production cost of sales from continuing operations divided by total gold equivalent ounces sold from continuing operations. |
(c) | “Attributable” includes Kinross’ share of |
(d) | “General and administrative” expenses are as reported on the interim condensed consolidated statements of operations, net of certain restructuring expenses. General and administrative expenses are considered sustaining costs as they are required to be absorbed on a continuing basis for the effective operation and governance of the Company. |
(e) | “Other operating expense – sustaining” is calculated as “Other operating expense” as reported on the interim condensed consolidated statements of operations, less other operating and reclamation and remediation expenses related to non-sustaining activities as well as other items not reflective of the underlying operating performance of our business. Other operating expenses are classified as either sustaining or non-sustaining based on the type and location of the expenditure incurred. The majority of other operating expenses that are incurred at existing operations are considered costs necessary to sustain operations, and are therefore classified as sustaining. Other operating expenses incurred at locations where there is no current operation or related to other non-sustaining activities are classified as non-sustaining. |
(f) | “Reclamation and remediation - sustaining” is calculated as current period accretion related to reclamation and remediation obligations plus current period amortization of the corresponding reclamation and remediation assets, and is intended to reflect the periodic cost of reclamation and remediation for currently operating mines. Reclamation and remediation costs for development projects or closed mines are excluded from this amount and classified as non-sustaining. |
(g) | “Exploration and business development – sustaining” is calculated as “Exploration and business development” expenses as reported on the interim condensed consolidated statements of operations, less non-sustaining exploration and business development expenses. Exploration expenses are classified as either sustaining or non-sustaining based on a determination of the type and location of the exploration expenditure. Exploration expenditures within the footprint of operating mines are considered costs required to sustain current operations and so are included in sustaining costs. Exploration expenditures focused on new ore bodies near existing mines (i.e. brownfield), new exploration projects (i.e. greenfield) or for other generative exploration activity not linked to existing mining operations are classified as non-sustaining. Business development expenses are classified as either sustaining or non-sustaining based on a determination of the type of expense and requirement for general or growth related operations. |
(h) | “Additions to property, plant and equipment – sustaining and non-sustaining are as presented on page 21 of this News Release. Non-sustaining capital expenditures included in the calculation of attributable all-in-cost includes Kinross’ share of |
(i) | “Lease payments – sustaining” represents the majority of lease payments as reported on the interim condensed consolidated statements of cash flows and is made up of the principal and financing components of such cash payments, less non-sustaining lease payments. Lease payments for development projects or closed mines are classified as non-sustaining. |
APPENDIX A
Recent LP Fault zone assay results
Hole ID | From (m) | To (m) | Width (m) | True Width (m) | Au (g/t) | Target | |
BR-696 | 1,347.7 | 1,352.2 | 4.5 | 4.1 | 15.53 | Bruma | |
BR-696 | including | 1,349.2 | 1,350.7 | 1.5 | 1.4 | 45.60 | |
BR-696 | and | 1,364.1 | 1,367.8 | 3.7 | 3.4 | 1.33 | |
BR-696 | and | 1,510.0 | 1,514.0 | 4.0 | 3.7 | 0.53 | |
BR-696 | and | 1,521.0 | 1,526.4 | 5.4 | 5.0 | 0.41 | |
BR-696 | and | 1,539.4 | 1,543.5 | 4.1 | 3.8 | 0.43 | |
BR-696 | and | 1,568.0 | 1,578.0 | 10.0 | 9.2 | 0.63 | |
BR-696 | and | 1,583.5 | 1,587.2 | 3.7 | 3.4 | 0.75 | |
BR-696 | and | 1,594.5 | 1,597.5 | 3.0 | 2.8 | 0.33 | |
BR-696 | and | 1,599.6 | 1,603.2 | 3.6 | 3.3 | 0.40 | |
BR-698 | No Significant Intersections | Yauro | |||||
BR-778 | 1,394.5 | 1,397.5 | 3.0 | 2.6 | 0.44 | Yuma | |
BR-778 | and | 1,442.5 | 1,447.1 | 4.6 | 3.9 | 6.02 | |
BR-778 | including | 1,444.0 | 1,447.1 | 3.1 | 2.6 | 8.53 | |
BR-778 | and | 1,495.3 | 1,534.2 | 38.9 | 33.4 | 0.99 | |
BR-778 | and | 1,554.2 | 1,561.5 | 7.3 | 6.3 | 0.55 | |
BR-778 | and | 1,612.4 | 1,615.8 | 3.4 | 2.9 | 1.28 | |
BR-778 | and | 1,717.9 | 1,723.1 | 5.2 | 4.5 | 15.27 | |
BR-778C1 | 1,392.7 | 1,396.1 | 3.4 | 2.3 | 0.64 | Yuma | |
BR-778C1 | and | 1,452.8 | 1,473.4 | 20.6 | 14.2 | 5.63 | |
BR-778C1 | including | 1,466.3 | 1,473.4 | 7.1 | 4.9 | 15.57 | |
BR-778C1 | and | 1,489.0 | 1,546.7 | 57.7 | 39.8 | 0.94 | |
BR-778C1 | including | 1,534.8 | 1,540.3 | 5.5 | 3.8 | 6.16 | |
BR-778C1 | and | 1,559.2 | 1,572.8 | 13.7 | 9.4 | 4.51 | |
BR-778C1 | including | 1,565.9 | 1,568.3 | 2.4 | 1.6 | 22.81 | |
BR-778C1 | and | 1,595.3 | 1,602.5 | 7.2 | 4.9 | 2.01 | |
BR-778C1 | including | 1,598.6 | 1,600.8 | 2.2 | 1.5 | 4.23 | |
BR-778C2 | 1,506.5 | 1,528.0 | 21.5 | 14.0 | 1.70 | Yuma | |
BR-778C2 | including | 1,518.0 | 1,522.5 | 4.5 | 2.9 | 4.41 | |
BR-778C2 | and | 1,587.5 | 1,594.1 | 6.6 | 4.3 | 0.44 | |
BR-778C3 | 1,528.2 | 1,544.3 | 16.1 | 10.8 | 1.55 | Yuma | |
BR-778C3 | and | 1,554.2 | 1,557.2 | 3.0 | 2.0 | 0.61 | |
BR-778C3 | and | 1,618.7 | 1,643.0 | 24.3 | 16.3 | 1.29 | |
BR-779 | No Significant Intersections | Brownfields Exploration | |||||
BR-788 | 795.0 | 798.6 | 3.6 | 2.5 | 0.41 | Yuma | |
BR-788 | and | 837.0 | 871.7 | 34.7 | 23.9 | 0.78 | |
BR-788 | and | 964.0 | 967.4 | 3.4 | 2.3 | 0.46 | |
BR-798C1 | 1,159.2 | 1,171.1 | 11.9 | 8.9 | 0.52 | Bruma | |
BR-798C1 | and | 1,182.9 | 1,205.3 | 22.4 | 16.8 | 0.41 | |
BR-798C1 | and | 1,248.5 | 1,251.5 | 3.0 | 2.3 | 0.37 | |
BR-798C1 | and | 1,268.0 | 1,277.0 | 9.0 | 6.8 | 1.47 | |
BR-798C1 | and | 1,361.5 | 1,370.5 | 9.0 | 6.8 | 0.83 | |
BR-798C2 | No Significant Intersections | Bruma | |||||
BR-798C2A | 1,200.2 | 1,204.3 | 4.0 | 3.0 | 0.87 | Bruma | |
BR-798C2A | and | 1,238.0 | 1,243.0 | 5.0 | 3.8 | 0.79 | |
BR-798C2A | and | 1,252.1 | 1,265.8 | 13.7 | 10.3 | 0.64 | |
BR-798C2A | and | 1,318.0 | 1,328.0 | 10.0 | 7.5 | 0.52 | |
BR-798C2A | and | 1,490.4 | 1,494.8 | 4.4 | 3.3 | 0.61 | |
BR-798C3 | 1,059.5 | 1,062.5 | 3.0 | 2.3 | 1.98 | Bruma | |
BR-798C3 | and | 1,227.6 | 1,236.6 | 9.0 | 6.8 | 0.54 | |
BR-798C3 | and | 1,244.8 | 1,249.1 | 4.3 | 3.2 | 0.43 | |
BR-798C3 | and | 1,259.9 | 1,265.4 | 5.5 | 4.1 | 0.55 | |
BR-798C3 | and | 1,288.2 | 1,294.2 | 6.0 | 4.5 | 2.02 | |
BR-798C3 | including | 1,289.9 | 1,292.7 | 2.8 | 2.1 | 3.83 | |
BR-798C3 | and | 1,331.0 | 1,337.2 | 6.3 | 4.7 | 1.13 | |
BR-798C3 | and | 1,369.2 | 1,372.5 | 3.3 | 2.5 | 0.45 | |
BR-798C4A | No Significant Intersections | Bruma | |||||
BR-806 | 732.9 | 738.0 | 5.1 | 3.57 | 11.20 | Discovery | |
BR-806 | including | 736.7 | 738.0 | 1.4 | 0.95 | 39.50 | |
BR-806 | and | 785.4 | 795.4 | 10.0 | 6.97 | 0.47 | |
BR-806 | and | 810.0 | 824.1 | 14.1 | 9.87 | 0.60 | |
BR-806 | and | 844.0 | 875.3 | 31.3 | 21.88 | 0.51 | |
BR-813 | and | 611.5 | 616.0 | 4.5 | 3.0 | 0.91 | Yauro |
BR-813W1 | 746.9 | 750.0 | 3.1 | 2.3 | 3.16 | Yauro | |
BR-813W1 | and | 812.5 | 817.8 | 5.3 | 3.9 | 1.02 | |
BR-813W1 | and | 988.0 | 991.0 | 3.0 | 2.2 | 0.90 | |
BR-813W1 | and | 1,068.0 | 1,071.0 | 3.0 | 2.2 | 0.67 | |
BR-813W1 | and | 1,095.4 | 1,102.8 | 7.5 | 5.5 | 1.43 | |
BR-813W1 | and | 1,136.7 | 1,140.5 | 3.8 | 2.8 | 1.31 | |
BR-814 | 263.2 | 269.9 | 6.7 | 4.9 | 1.08 | Yauro | |
BR-814 | and | 278.8 | 324.2 | 45.4 | 33.1 | 0.74 | |
BR-814 | and | 342.7 | 348.3 | 5.6 | 4.1 | 0.62 | |
BR-814 | and | 360.5 | 405.5 | 45.0 | 32.9 | 1.10 | |
BR-814 | and | 728.0 | 736.1 | 8.0 | 5.9 | 0.39 | |
BR-814 | and | 855.8 | 862.5 | 6.7 | 4.9 | 5.25 | |
BR-814 | including | 860.1 | 861.1 | 1.0 | 0.7 | 32.50 | |
BR-814 | and | 873.0 | 886.5 | 13.5 | 9.9 | 0.71 | |
BR-814 | and | 981.6 | 987.5 | 6.0 | 4.3 | 0.38 | |
BR-814C1A | 850.5 | 853.5 | 3.0 | 2.2 | 1.95 | Yauro | |
BR-814C1A | and | 867.6 | 879.0 | 11.4 | 8.3 | 5.28 | |
BR-814C1A | including | 868.6 | 877.0 | 8.4 | 6.1 | 6.95 | |
BR-814C1A | and | 880.0 | 883.0 | 3.0 | 2.2 | 0.36 | |
BR-814C1A | and | 899.4 | 903.0 | 3.6 | 2.6 | 0.54 | |
BR-814C1A | and | 927.0 | 928.5 | 1.5 | 1.1 | 17.00 | |
BR-814C2A | 864.0 | 872.4 | 8.4 | 6.1 | 1.46 | Yauro | |
BR-814C2A | 986.5 | 992.5 | 6.0 | 4.4 | 0.39 | ||
BR-814C3A | 948.1 | 953.1 | 5.0 | 3.7 | 1.82 | Yauro | |
BR-814C3A | and | 987.4 | 991.9 | 4.5 | 3.3 | 1.82 | |
BR-814C3A | and | 1,049.2 | 1,060.7 | 11.5 | 8.4 | 0.58 | |
BR-814C4A | No Significant Intersections | Yauro | |||||
BR-815 | No Significant Intersections | Viggo | |||||
BR-816 | 1,026.9 | 1,032.4 | 5.5 | 4.2 | 0.51 | Auro | |
BR-817 | 769.5 | 772.5 | 3.0 | 2.5 | 0.42 | Auro | |
BR-817 | and | 803.3 | 810.0 | 6.7 | 5.5 | 0.63 | |
BR-817 | and | 822.0 | 834.0 | 12.0 | 9.8 | 1.45 | |
BR-818 | 789.0 | 793.5 | 4.5 | 3.6 | 0.51 | Auro | |
BR-818 | and | 798.6 | 805.5 | 7.0 | 5.6 | 1.07 | |
BR-818 | and | 810.7 | 822.5 | 11.9 | 9.6 | 2.39 | |
BR-822 | No Significant Intersections | Brownfields Exploration | |||||
BR-823 | 886.5 | 895.5 | 9.0 | 7.5 | 1.02 | Viggo | |
BR-824 | 699.3 | 706.3 | 7.0 | 5.7 | 0.97 | Viggo | |
BR-825 | 696.8 | 896.4 | 199.6 | 157.7 | 0.51 | Viggo | |
BR-825 | including | 741.2 | 741.8 | 0.6 | 0.5 | 147.00 | |
BR-826 | 583.0 | 590.0 | 7.0 | 0.50 | Viggo | ||
BR-830 | 784.6 | 791.0 | 6.5 | 5.5 | 0.45 | Yuma | |
BR-830 | and | 920.2 | 928.0 | 7.9 | 6.7 | 2.66 | |
BR-830 | including | 921.2 | 924.3 | 3.1 | 2.6 | 6.07 | |
BR-830 | and | 961.1 | 969.1 | 8.0 | 6.8 | 1.01 | |
BR-830 | and | 989.0 | 1,002.1 | 13.1 | 11.1 | 0.62 | |
BR-831 | 1,096.0 | 1,138.0 | 42.0 | 28.6 | 0.55 | Yuma | |
BR-831 | and | 1,150.0 | 1,176.4 | 26.4 | 17.9 | 1.97 | |
BR-831 | including | 1,150.0 | 1,151.0 | 1.0 | 0.7 | 20.80 | |
BR-832 | 1,128.6 | 1,148.9 | 20.3 | 18.0 | 0.88 | Yuma | |
BR-832 | and | 1,164.0 | 1,177.5 | 13.5 | 12.0 | 0.48 | |
BR-832 | and | 1,193.3 | 1,207.0 | 13.7 | 12.2 | 1.30 | |
BR-832 | and | 1,240.8 | 1,260.8 | 20.0 | 17.8 | 1.50 | |
BR-832 | and | 1,273.4 | 1,285.6 | 12.3 | 10.9 | 0.38 | |
BR-832 | and | 1,294.3 | 1,311.3 | 17.1 | 15.2 | 0.40 | |
BR-832 | and | 1,362.8 | 1,368.5 | 5.7 | 5.1 | 3.79 | |
BR-832 | including | 1,363.5 | 1,368.5 | 5.0 | 4.5 | 4.21 | |
BR-832C1 | 1,080.0 | 1,085.5 | 5.5 | 4.9 | 0.38 | Yuma | |
BR-832C1 | and | 1,092.0 | 1,097.8 | 5.8 | 5.2 | 0.37 | |
BR-832C1 | and | 1,131.5 | 1,137.0 | 5.5 | 4.9 | 1.68 | |
BR-832C1 | and | 1,143.8 | 1,177.8 | 34.0 | 30.2 | 0.72 | |
BR-832C2B | 1,122.0 | 1,159.5 | 37.5 | 33.8 | 1.02 | Yuma | |
BR-832C2B | and | 1,169.7 | 1,201.5 | 31.9 | 28.7 | 1.01 | |
BR-832C3 | 1,199.0 | 1,209.0 | 10.1 | 9.0 | 0.69 | Yuma | |
BR-832C3 | and | 1,222.5 | 1,257.0 | 34.5 | 31.1 | 0.72 | |
BR-832C3 | and | 1,262.6 | 1,285.0 | 22.4 | 20.2 | 0.54 | |
BR-833 | 468.0 | 475.5 | 7.5 | 5.0 | 0.89 | Auro | |
BR-833 | and | 524.2 | 531.9 | 7.7 | 5.2 | 0.49 | |
BR-834 | 586.9 | 589.9 | 3.0 | 2.7 | 0.57 | Auro | |
BR-840 | 627.0 | 634.8 | 7.8 | 5.1 | 0.39 | Yauro | |
BR-840 | and | 759.9 | 771.9 | 12.1 | 8.0 | 0.54 | |
BR-840 | and | 1,085.9 | 1,176.7 | 90.8 | 59.9 | 0.59 | |
BR-840 | and | 1,104.6 | 1,105.6 | 1.0 | 0.7 | 24.70 | |
BR-841 | 199.5 | 208.8 | 9.3 | 8.4 | 1.56 | Yauro | |
BR-841 | and | 214.0 | 220.8 | 6.8 | 6.2 | 1.26 | |
BR-841 | and | 230.4 | 238.0 | 7.6 | 6.9 | 0.49 | |
BR-841 | and | 247.7 | 256.2 | 8.5 | 7.7 | 0.68 | |
BR-841 | and | 367.0 | 445.5 | 78.5 | 71.4 | 0.89 | |
BR-841 | including | 367.0 | 370.7 | 3.7 | 3.3 | 6.35 | |
BR-841 | and | 452.4 | 458.0 | 5.6 | 5.1 | 1.17 | |
BR-841 | and | 512.0 | 521.0 | 9.0 | 8.2 | 1.39 | |
BR-841 | and | 595.9 | 599.6 | 3.7 | 3.4 | 0.39 | |
BR-841 | and | 615.0 | 675.4 | 60.4 | 54.9 | 0.36 | |
BR-841 | and | 787.7 | 802.0 | 14.4 | 13.1 | 0.50 | |
BR-842 | 253.3 | 276.0 | 22.8 | 20.5 | 0.93 | Yauro | |
BR-842 | including | 258.4 | 260.8 | 2.4 | 2.2 | 3.49 | |
BR-842 | and | 296.7 | 302.5 | 5.9 | 5.3 | 0.55 | |
BR-842 | and | 386.8 | 401.2 | 14.4 | 12.9 | 0.75 | |
BR-842 | and | 575.4 | 581.9 | 6.5 | 5.8 | 1.65 | |
BR-842 | and | 596.4 | 677.0 | 80.6 | 72.5 | 1.54 | |
BR-842 | including | 635.8 | 651.6 | 15.8 | 14.2 | 4.82 | |
BR-842 | and | 755.1 | 769.4 | 14.3 | 12.9 | 1.97 | |
BR-842 | including | 756.7 | 761.8 | 5.1 | 4.6 | 3.09 | |
BR-842 | and | 776.0 | 782.5 | 6.5 | 5.9 | 0.60 | |
BR-842 | and | 812.9 | 838.3 | 25.5 | 22.9 | 0.67 | |
BR-842 | and | 910.9 | 917.9 | 7.0 | 6.3 | 0.71 | |
BR-850 | 558.5 | 562.2 | 3.6 | 3.1 | 0.63 | Discovery | |
BR-850 | and | 588.0 | 591.0 | 3.0 | 2.5 | 0.35 | |
BR-850 | and | 688.0 | 699.0 | 11.1 | 9.3 | 0.80 | |
BR-850 | and | 705.5 | 735.0 | 29.5 | 24.8 | 1.07 | |
BR-850 | and | 741.9 | 758.5 | 16.6 | 13.9 | 0.78 | |
BR-850 | and | 882.4 | 885.8 | 3.4 | 2.8 | 0.62 | |
BR-860 | 352.8 | 355.8 | 3.0 | 2.3 | 1.59 | Brownfields Exploration | |
BR-862 | No Significant Intersections | Brownfields Exploration | |||||
BR-863 | 279.5 | 282.5 | 3.0 | 2.6 | 0.34 | Brownfields Exploration | |
BR-870 | 1,212.0 | 1,223.0 | 11.0 | 7.7 | 12.32 | Yuma | |
BR-870 | including | 1,213.5 | 1,223.0 | 9.5 | 6.7 | 14.07 | |
BR-870 | and | 1,225.5 | 1,228.5 | 3.0 | 2.1 | 0.35 | |
BR-870 | and | 1,239.9 | 1,242.9 | 3.0 | 2.1 | 0.87 | |
BR-870 | and | 1,272.5 | 1,278.7 | 6.3 | 4.4 | 0.84 | |
BR-870 | and | 1,291.3 | 1,295.8 | 4.5 | 3.2 | 0.42 | |
BR-870C1 | 1,155.2 | 1,159.2 | 4.0 | 2.8 | 0.59 | Yuma | |
BR-870C1 | and | 1,173.5 | 1,182.5 | 9.0 | 6.3 | 0.55 | |
BR-870C1 | and | 1,267.6 | 1,279.8 | 12.3 | 8.6 | 0.40 | |
BR-870C1 | and | 1,288.0 | 1,292.1 | 4.1 | 2.9 | 0.67 | |
BR-870C1 | and | 1,300.6 | 1,306.5 | 5.9 | 4.1 | 1.37 | |
BR-870C1 | and | 1,312.8 | 1,318.2 | 5.4 | 3.8 | 1.84 | |
BR-870C2 | No Significant Intersections | Yuma | |||||
BR-870C3 | No Significant Intersections | Yuma | |||||
DL-085C1 | No Significant Intersections | Hinge | |||||
DL-085C2 | No Significant Intersections | Hinge | |||||
DL-085C3 | 892.0 | 900.0 | 8.0 | 6.7 | 0.86 | Hinge | |
DL-085C4 | 687.6 | 693.2 | 5.6 | 4.3 | 1.87 | Hinge | |
DL-085C4 | and | 906.5 | 908.5 | 2.1 | 1.6 | 5.31 | |
DL-085C5 | 657.8 | 664.5 | 6.7 | 5.4 | 0.97 | Hinge | |
DL-085C5 | and | 1,048.0 | 1,053.5 | 5.5 | 4.4 | 4.12 | |
DL-085C6 | 641.0 | 655.6 | 14.6 | 12.1 | 0.91 | Hinge | |
DL-085C6 | and | 987.0 | 990.0 | 3.0 | 2.5 | 0.43 | |
DL-085C7 | 868.0 | 871.5 | 3.5 | 2.8 | 259.45 | Hinge | |
DL-085C7 | including | 869.8 | 870.3 | 0.5 | 0.4 | 908.00 | |
DL-144 | No Significant Intersections | Limb | |||||
DL-145 | No Significant Intersections | Limb | |||||
DL-146 | 631.4 | 641.7 | 10.3 | 8.9 | 2.95 | Limb | |
DL-146 | including | 634.8 | 641.7 | 6.9 | 5.9 | 4.09 | |
DL-148 | 789.6 | 798.0 | 8.4 | 5.7 | 1.76 | Limb | |
REG-084 | No Significant Intersections | Brownfields Exploration | |||||
REG-085 | 561.1 | 564.8 | 3.7 | 2.6 | 1.05 | Brownfields Exploration |
Appendix B
LP long section demonstrating potential for extension of a high-grade underground resource.
An infographic accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c61d00f1-48aa-47cb-a07a-9fff900b1397
Composites are generated from drill intersections from fully assayed holes completed since the
Appendix C
The Hinge zone, a potential source of high-grade supplemental feed, recently returned a high-grade intercept at 2.8 metres true width grading 259 grams per tonne at a vertical depth of 870 metres.
An infographic accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b4f57241-6505-4e61-98ae-29eeb10a4dbc
Cautionary statement on forward-looking information
All statements, other than statements of historical fact, contained or incorporated by reference in this news release including, but not limited to, any information as to the future financial or operating performance of Kinross, constitute “forward-looking information” or “forward-looking statements” within the meaning of certain securities laws, including the provisions of the Securities Act (
Key Sensitivities
Approximately 70%-80% of the Company's costs are denominated in
A 10% change in foreign currency exchange rates would be expected to result in an approximate
Specific to the Brazilian real, a 10% change in the exchange rate would be expected to result in an approximate
Specific to the Chilean peso, a 10% change in the exchange rate would be expected to result in an approximate
A
A
Other information
Where we say ‘‘we’’, ‘‘us’’, ‘‘our’’, the ‘‘Company’’, or ‘‘Kinross’’ in this news release, we mean
The technical information about the Company’s mineral properties contained in this news release has been prepared under the supervision of Mr.
All dollar amounts are expressed as
Source:
1 “Production cost of sales from continuing operations per equivalent ounce sold” is defined as production cost of sales, as reported on the interim condensed consolidated statements of operations, divided by total gold equivalent ounces sold from continuing operations.
2 These figures are non-GAAP financial measures and ratios, as applicable, and are defined and reconciled on pages 17 to 21 of this news release. Non-GAAP financial measures and ratios have no standardized meaning under IFRS and therefore, may not be comparable to similar measures presented by other issuers.
3 “Margins” from continuing operations per equivalent ounce sold is defined as average realized gold price per ounce from continuing operations less production cost of sales from continuing operations per equivalent ounce sold.
4 Operating cash flow figures in this release represent “Net cash flow of continuing operations provided from operating activities,” as reported on the interim condensed consolidated statements of cash flows.
5 Reported net earnings figures in this news release represent “Net earnings (loss) from continuing operations attributable to common shareholders,” as reported on the interim condensed consolidated statements of operations.
6 Adjusted net earnings figures in this news release represent “Adjusted net earnings from continuing operations attributable to common shareholders.”
7 “Total liquidity” is defined as the sum of cash and cash equivalents, as reported on the interim condensed consolidated balance sheets, and available credit under the Company’s credit facilities (as calculated in Section 6 – Liquidity and Capital Resources of Kinross’ MD&A for the three and nine months ended
8 Total working capital changes is defined as the sum of the changes in operating assets and liabilities, including income taxes paid, as reported on the interim condensed consolidated statements of cash flows (as shown in the adjusted operating cash flow from continuing operations reconciliation table on page 18 of this news release).
9 “Available credit” is defined as available credit under the Company’s credit facilities and is calculated in Section 6 – Liquidity and Capital Resources of Kinross’ MD&A for the three and nine months ended
10 All reported widths are true width, all reported depths are vertical depth below surface.
11 Economics at
12 Considered to be non-sustaining capital.
13 Attributable capital expenditure guidance includes Kinross’ share of
14 Attributable production guidance includes Kinross’ share of
15 Refers to all of the currencies in the countries where the Company has mining operations, fluctuating simultaneously by 10% in the same direction, either appreciating or depreciating, taking into consideration the impact of hedging and the weighting of each currency within our consolidated cost structure.
Appendix B
LP long section demonstrating potential for extension of a high-grade underground resource.
Appendix C
The Hinge zone, a potential source of high-grade supplemental feed, recently returned a high-grade intercept at 2.8 metres true width grading 259 grams per tonne at a vertical depth of 870 metres.
2023 GlobeNewswire, Inc., source