SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of November, 2024
Commission File Number: 001-13382
KINROSS GOLD
CORPORATION
(Translation of registrant's name into English)
17th Floor, 25 York Street,
Toronto, Ontario M5J 2V5
(Address of principal executive offices)
Indicate by check mark whether
the registrant files or will file annual reports under cover of Form 20-F or Form 40F:
Form 20-F ¨ Form 40-F x
This Current Report on Form 6-K, dated November 5,
2024 is specifically incorporated by reference into Kinross Gold Corporation's Registration Statements on Form S-8 [Registration
No. 333-262966 filed on February 24, 2022, Registration No. 333-217099 filed on April 3, 2017 and Registration Nos.
333-180824, 333-180823 and 333-180822 filed on April 19, 2012.]
Page 2
This report on Form 6-K is being furnished
for the sole purpose of providing copies of the two press releases dated November 5, 2024 in which Kinross Gold Corporation reported
its unaudited results for the third quarter ended September 30, 2024 and declared a dividend to be paid on December 12, 2024.
INDEX
Table of Contents
SIGNATURES
EXHIBIT INDEX
Page 3
SIGNATURES
Pursuant to the requirements
of Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
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KINROSS GOLD CORPORATION |
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Signed: |
//Lucas R. Crosby// |
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Vice President, General Counsel and Corporate Secretary |
November 5, 2024
Exhibit 99.1
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Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
For more information,
please see Kinross’
2024 Q3
Financial Statements and MD&A
at www.kinross.com
NEWS RELEASE
Kinross reports
strong 2024 third-quarter results
Significant margin
growth and record free cash flow, $350 million debt repayment
First gold from
Manh Choh, strong PEA results at Great Bear
On track to meet
annual guidance
Toronto, Ontario
– November 5, 2024 – 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. |
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.
| p. 1 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
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.”
| p. 2 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
Summary of financial
and operating results
| | |
Three months ended | | |
Nine months ended | |
| | |
September 30, | | |
September 30, | |
| (unaudited, in millions of U.S. dollars, except ounces, per share amounts, and per ounce amounts) | |
2024 | | |
2023 | | |
2024 | | |
2023 | |
| Operating Highlights(a) | |
| | | |
| | | |
| | | |
| | |
| 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. |
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.
5 “Average realized gold price
per ounce” is defined as gold metal sales divided by total gold ounces sold.
| p. 3 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
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.
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).
| p. 4 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
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.
| p. 5 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
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.
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.
| p. 6 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
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.
| p. 7 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
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: 9135525
Outside 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: 9135525
Outside 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 Barrington
Senior Director, Corporate Communications
phone: 647-788-4153
victoria.barrington@kinross.com
Investor Relations Contact
David Shaver
Senior Vice-President
phone: 416-365-2761
InvestorRelations@kinross.com
| p. 8 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
Review of operations
| |
Gold equivalent ounces | | |
| | |
| | |
| | |
| |
| Three months ended September 30, | |
Produced | | |
Sold | | |
Production cost of sales
($millions) | | |
Production cost of
sales/equivalent ounce sold | |
| (unaudited) | |
2024 | | |
2023 | | |
2024 | | |
2023 | | |
2024 | | |
2023 | | |
2024 | | |
2023 | |
| 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 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 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 | |
| |
Gold equivalent ounces | | |
| | |
| | |
| | |
| |
| Nine months ended September 30, | |
Produced | | |
Sold | | |
Production cost of sales
($millions) | | |
Production cost of
sales/equivalent ounce sold | |
| (unaudited) | |
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.
| p. 9 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
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 | |
| p. 10 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
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 | |
| p. 11 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
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 | |
| p. 12 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
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 | |
| p. 13 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
| (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. |
| p. 14 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
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:
| | |
Three months ended | | |
Nine months ended | |
| (unaudited, expressed in millions of U.S. dollars, | |
September 30, | | |
September 30, | |
| except per share amounts) | |
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.
| p. 15 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
The following table provides a reconciliation of attributable free cash flow for the periods presented:
| |
Three months ended | | |
Nine months ended | |
| | |
September 30, | | |
September 30, | |
| (unaudited, expressed in millions of U.S. dollars) | |
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:
| | |
Three months ended | | |
Nine months ended | |
| | |
September 30, | | |
September 30, | |
| (unaudited, expressed in millions of U.S. dollars) | |
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.
| p. 16 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
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:
| |
|
Three months ended |
|
|
Nine months
ended |
|
| (unaudited, expressed in millions of U.S. dollars, |
|
September 30, |
|
|
September 30, |
|
| except ounces and production cost of sales per equivalent ounce) |
|
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:
| |
|
Three months ended |
|
|
Nine months ended |
|
| (unaudited, expressed in millions of U.S. dollars, |
|
September 30, |
|
|
September 30, |
|
| except ounces and production cost of sales per ounce) |
|
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.
| p. 17 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
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:
| | |
Three months ended | | |
Nine
months ended | |
| (unaudited, expressed in
millions of U.S. dollars, | |
September 30, | | |
September 30, | |
| except ounces and costs per ounce) | |
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.
| p. 18 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
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:
| | |
Three months ended | | |
Nine
months ended | |
| (unaudited, expressed in
millions of U.S. dollars, | |
September 30, | | |
September 30, | |
| except ounces and costs per ounce) | |
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.
| p. 19 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
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. |
| p. 20 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
| (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. |
| p. 21 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
Appendix A
Drilling at Round Mountain Phase X demonstrating strong grades
and widths within the exploration target and potential for extensions.
| p. 22 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
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.
| p. 23 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
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.
| p. 24 Kinross reports 2024 third-quarter results | www.kinross.com |
| |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5 |
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
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.
| p. 25 Kinross reports 2024 third-quarter results | www.kinross.com |
Exhibit 99.2
 | | Kinross
Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5
|
NEWS RELEASE
Kinross declares
quarterly dividend
Toronto, Ontario, November 5, 2024
– Kinross Gold Corporation (TSX: K; NYSE: KGC) (the “Company”) today announced that the Company’s Board of
Directors has declared a dividend of US$0.03 per common share for the third quarter of 2024.
The dividend is payable on December 12,
2024, to shareholders of record as of the close of business on November 28, 2024. This dividend qualifies as an “eligible
dividend” for Canadian income tax purposes while dividends paid to shareholders outside Canada (non-resident investors) will be
subject to Canadian non-resident withholding taxes.
About Kinross Gold Corporation
Kinross is a Canadian-based global senior gold
mining company with operations and projects in the United States, Brazil, Mauritania, Chile and Canada. Our focus is on delivering value
based on the core principles of responsible mining, operational excellence, disciplined growth, and balance sheet strength. Kinross maintains
listings on the Toronto Stock Exchange (symbol: K) and the New York Stock Exchange (symbol: KGC).
Media Contact
Victoria Barrington
Senior Director, Corporate Communications
phone: 647-788-4153
victoria.barrington@kinross.com
Investor Relations Contact
David Shaver
Senior Vice-President
phone: 416-365-2761
investorrelations@kinross.com
Source: Kinross Gold Corporation
www.kinross.com
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