Portfolio had highest production and lowest costs
in Q4
Maintains strong expected production of 2.0 million ounces or above
in 2023, 2024 and 2025
Returned $455 million to shareholders in 2022
TORONTO, Feb. 15, 2023 (GLOBE NEWSWIRE) --
Kinross Gold Corporation (TSX: K, NYSE: KGC) (“Kinross” or the
“Company”) today announced its results for the fourth-quarter and
year ended December 31, 2022.
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 page 39 of this release. All dollar amounts
are expressed in U.S. dollars, unless otherwise
noted.
Results from the Company's Russian and
Ghanaian assets have been excluded from its 2022 continuing
results, along with 2021 comparative figures, due to the
classification of these assets as discontinued as at December 31,
2022.
2022 Q4 and full-year highlights and
outlook:
- Production ramped up
quarter-after-quarter, with the strongest production and lowest
costs of the year in the fourth quarter.
- As part of the Great
Bear initial resource estimate, the Company has added 2.7
million Au oz. of measured and indicated mineral resources, and
added 2.3 million ounces to its inferred mineral resource. See the
Great Bear news release here: Great Bear Initial
Resource news release. View an interactive 3D
model here: Great Bear 3D
model.
- Tasiast achieved
record production in Q4 2022 at lower quarter-over-quarter costs
with record grades.
- Paracatu achieved
its second highest production quarter on record, driven by high
grades and strong recoveries.
- La Coipa
production and throughput increased substantially
quarter-over-quarter.
- In 2022, Kinross returned
$455 million in capital to shareholders consisting of
approximately $155 million in dividends and $300 million as part of
its enhanced share buyback
program. The Company expects to continue its
dividend and share buyback programs in 2023 and 2024.
- Kinross’ Board of Directors
declared a quarterly dividend of $0.03 per common
share payable on March 23, 2023 to shareholders of record
at the close of business on March 8, 2023.
- Kinross expects to increase
production to 2.1 million
attributable1 Au eq.
oz. in 2023 and 2024 and approximately 2 million
attributable1 Au eq. oz. in
2025.
2022 Q4 and year-end financial results
from continuing operations:
- Production of
595,683 Au eq. oz. in Q4 2022, and 1,957,237 Au eq. oz. in
2022.
- Production cost of
sales2 of $848 per Au eq. oz. in Q4 2022, and
$937 per Au eq. oz. in 2022.
- All-in sustaining
cost3 of $1,236 per Au eq. oz. sold in Q4 2022,
and $1,271 per Au eq. oz. sold in 2022.
-
Margins4 of $883 per Au eq. oz. sold in
Q4 2022, and $856 for 2022.
- Operating cash
flow5 of $474.3 million in Q4 2022, and
$1,002.5 million in 2022.
- Adjusted operating cash
flow3 was $496.1 million in Q4 2022, and
$1,256.5 million in 2022.
- Free cash
flow3 was $157.5 million in Q4 2022, and $238.3
million in 2022.
- Reported net
loss6 of $106.0 million in Q4 2022, or $0.08
per share, and reported net earnings6
of $31.9 million, or $0.02 per share, in 2022.
- Adjusted net
earnings3, 7 of $108.2
million, or $0.09 per share in Q4 2022, and $283.1 million, or
$0.22 per share, in 2022.
- Cash and cash
equivalents of $418.1 million, and total
liquidity8 of $1.8 billion at December
31, 2022.
Exploration and mineral reserves and
resources update:
- Excluding the divestitures,
Kinross’ total proven and probable mineral reserve estimates
decreased by 7.5%, or 2.1 million Au oz., to 25.5 million Au oz.,
primarily driven by depletion.
- Excluding the divestitures, total
measured and indicated resource estimates increased by 2%, or 459
Au koz., as the new 2.7 million Au resource estimate at Great Bear
more than offset cost pressures. Inferred resource estimates
increased by 26% or 2.2 million Au oz. driven by a 2.3 million Au
increase at Great Bear.
- Manh Choh added 698 Au koz. to its
reserve estimates following the completion of the project
feasibility study in July 2022.
________________________
1 Attributable production guidance includes Kinross' share
of Manh Choh (70%) production.
2 “Production cost of sales from continuing operations per
equivalent ounce sold” is defined as production cost of sales, as
reported on the consolidated statements of operations, divided by
total gold equivalent ounces sold from continuing
operations.
3 These figures are non-GAAP financial measures and
ratios, as applicable, and are defined and reconciled on pages 20
to 25 of this news release. Non-GAAP financial measures and ratios
have no standardized meaning under IFRS and therefore, may not be
comparable to similar measures presented by other
issuers.
4 “Margins” from continuing operations per equivalent
ounce sold is defined as average realized gold price per ounce from
continuing operations less production cost of sales from continuing
operations per equivalent ounce sold.
5 Operating cash flow figures in this release represent
“Net cash flow of continuing operations provided from operating
activities,” as reported on the consolidated statements of cash
flows.
6 Reported net earnings (loss) figures in this
release represent “Net earnings (loss) from continuing operations
attributable to common shareholders,” as reported on the
consolidated statements of operations.
7 Adjusted net earnings figures in this news release
represent “Adjusted net earnings from continuing operations
attributable to common shareholders.”
8 “Total liquidity” is defined as the sum of cash and
cash equivalents, as reported on the 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 year ended December 31, 2022).
CEO Commentary:
J. Paul Rollinson, President and CEO, made the following
comments in relation to 2022 fourth-quarter and year-end
results:
“Reflecting on 2022, it was a challenging year
with significant change. I am proud of our global team who came
together to address the challenges we faced and am pleased to note
that we finished each quarter stronger than the last. As we have
exited from Russia and Ghana, and are developing our Great Bear
project in Red Lake, Ontario, our portfolio is now more weighted in
the Americas. We are excited about the Great Bear initial mineral
resource estimate, which we announced earlier this week. We believe
we have a world-class development project at Great Bear and two
cornerstone production assets, Tasiast and Paracatu, that together
produce over 50 per cent of our gold.
“We introduced an enhanced share buyback program
which, along with our quarterly dividend, saw us return $455
million to shareholders in 2022, which represented about 8 per cent
of our market cap. We expect to continue with our dividend and
dynamic buyback program in 2023 and 2024.
“We are proud to be a consistent leader in ESG
performance and expect to publish our 2022 Sustainability Report in
May. We strengthened Board oversight of ESG and advanced strategy,
awareness and programming across the Company, focusing on achieving
our targets and metrics to maintain our strong performance. In 2022
we:
- Were awarded the Alaska Miners
Association Environmental Stewardship Award for our Abandoned Mine
Restoration initiative.
- Advanced our commitment to
diversity, equity and inclusion by working to embed inclusive
behaviours into everyday interactions across the Company.
- Made more than $10 million of
monetary and in-kind contributions through site investments, and
provided humanitarian support in Mauritania to help the country
manage the impact of extreme weather events.
- Advanced our green energy targets
with the construction of the Tasiast solar plant, which is expected
to come online in the second half of 2023.”
Financial results
Summary of financial and operating
results
|
Three months ended |
Years ended |
|
December 31, |
December 31, |
(in millions of U.S. dollars, except ounces, per share amounts, and
per ounce amounts) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Operating Highlights |
|
|
|
|
Total gold equivalent ounces(a) |
|
|
|
|
Produced(b) |
|
595,683 |
|
|
491,077 |
|
|
2,208,453 |
|
|
2,083,016 |
|
Sold(b) |
|
620,599 |
|
|
489,710 |
|
|
2,137,936 |
|
|
2,075,738 |
|
|
|
|
|
|
Attributable gold equivalent ounces(a) |
|
|
|
|
Produced(b) |
|
595,683 |
|
|
487,621 |
|
|
2,200,247 |
|
|
2,067,549 |
|
Sold(b) |
|
620,599 |
|
|
486,547 |
|
|
2,129,154 |
|
|
2,060,909 |
|
|
|
|
|
|
Total gold equivalent ounces from continuing
operations(c) |
|
|
|
|
Produced(b) |
|
595,683 |
|
|
340,337 |
|
|
1,957,237 |
|
|
1,447,240 |
|
Sold(b) |
|
620,599 |
|
|
342,184 |
|
|
1,927,818 |
|
|
1,446,477 |
|
|
|
|
|
|
Financial Highlights from Continuing
Operations(c) |
|
|
|
|
Metal sales |
$ |
1,076.2 |
|
$ |
614.9 |
|
$ |
3,455.1 |
|
$ |
2,599.6 |
|
Production cost of sales |
$ |
526.5 |
|
$ |
304.3 |
|
$ |
1,805.7 |
|
$ |
1,218.3 |
|
Depreciation, depletion and amortization |
$ |
251.9 |
|
$ |
165.4 |
|
$ |
784.0 |
|
$ |
695.7 |
|
Impairment charges and asset derecognition |
$ |
350.0 |
|
$ |
144.5 |
|
$ |
350.0 |
|
$ |
144.5 |
|
Operating (loss) earnings |
$ |
(160.1 |
) |
$ |
(137.7 |
) |
$ |
117.7 |
|
$ |
72.1 |
|
Net (loss) earnings from continuing operations attributable to
common shareholders |
$ |
(106.0 |
) |
$ |
(66.2 |
) |
$ |
31.9 |
|
$ |
(29.9 |
) |
Basic (loss) earnings per share from continuing operations
attributable to common shareholders |
$ |
(0.08 |
) |
$ |
(0.05 |
) |
$ |
0.02 |
|
$ |
(0.02 |
) |
Diluted (loss) earnings per share from continuing operations
attributable to common shareholders |
$ |
(0.08 |
) |
$ |
(0.05 |
) |
$ |
0.02 |
|
$ |
(0.02 |
) |
Adjusted net earnings from continuing operations attributable to
common shareholders(d) |
$ |
108.2 |
|
$ |
27.4 |
|
$ |
283.1 |
|
$ |
210.8 |
|
Adjusted net earnings from continuing operations per
share(d) |
$ |
0.09 |
|
$ |
0.02 |
|
$ |
0.22 |
|
$ |
0.17 |
|
Net cash flow of continuing operations provided from operating
activities |
$ |
474.3 |
|
$ |
148.0 |
|
$ |
1,002.5 |
|
$ |
695.1 |
|
Adjusted operating cash flow from continuing
operations(d) |
$ |
496.1 |
|
$ |
260.4 |
|
$ |
1,256.5 |
|
$ |
932.1 |
|
Capital expenditures from continuing operations(e) |
$ |
316.8 |
|
$ |
255.7 |
|
$ |
764.2 |
|
$ |
821.7 |
|
Free cash flow from continuing operations(d) |
$ |
157.5 |
|
$ |
(107.7 |
) |
$ |
238.3 |
|
$ |
(126.6 |
) |
Average realized gold price per ounce from continuing
operations(f) |
$ |
1,731 |
|
$ |
1,797 |
|
$ |
1,793 |
|
$ |
1,797 |
|
Production cost of sales from continuing operations per equivalent
ounce(b) sold(g) |
$ |
848 |
|
$ |
889 |
|
$ |
937 |
|
$ |
842 |
|
Production cost of sales from continuing operations per ounce sold
on a by-product basis(d) |
$ |
793 |
|
$ |
882 |
|
$ |
912 |
|
$ |
833 |
|
All-in sustaining cost from continuing operations per ounce sold on
a by-product basis(d) |
$ |
1,203 |
|
$ |
1,482 |
|
$ |
1,255 |
|
$ |
1,238 |
|
All-in sustaining cost from continuing operations per equivalent
ounce(b) sold(d) |
$ |
1,236 |
|
$ |
1,485 |
|
$ |
1,271 |
|
$ |
1,244 |
|
Attributable all-in cost(h) from continuing operations
per ounce sold on a by-product basis(d) |
$ |
1,525 |
|
$ |
1,884 |
|
$ |
1,538 |
|
$ |
1,631 |
|
Attributable all-in cost(h) from continuing operations
per equivalent ounce(b) sold(d) |
$ |
1,540 |
|
$ |
1,883 |
|
$ |
1,545 |
|
$ |
1,632 |
|
(a) Total gold equivalent ounces
produced and sold and attributable gold equivalent ounces produced
and sold include results from the Kupol, Dvoinoye and Chirano mines
up to their disposal. "Total gold equivalent ounces" includes 100%
of Chirano production. "Attributable gold equivalent ounces"
includes Kinross' share of Chirano (90%) production.
(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 2022 was 82.90:1 (2021 –
71.51:1).
(c) On June 15, 2022, the Company
announced that it had completed the sale of its Russian operations,
which includes the Kupol and Dvoinoye mines and the Udinsk project.
On August 10, 2022, the Company announced that it had completed the
sale of its Chirano mine in Ghana. Results for the years ended
December 31, 2022 and 2021 are from continuing operations and
exclude results from the Company’s Chirano and Russian operations
due to the classification of these operations as discontinued as at
December 31, 2022.
(d) The definition and reconciliation of
these non-GAAP financial measures and ratios is included on pages
20 to 25 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.
(e) “Capital expenditures from continuing
operations” is reported as “Additions to property, plant and
equipment” on the consolidated statements of cash
flows.
(f) “Average realized gold price per
ounce from continuing operations” is defined as gold metal sales
from continuing operations divided by total gold ounces sold from
continuing operations.
(g) “Production cost of sales from
continuing operations per equivalent ounce sold” is defined as
production cost of sales divided by total gold equivalent ounces
sold from continuing operations.
(h) “Attributable all-in cost” includes
Kinross’ share of Manh Choh (70%) costs.
The following operating and financial results
are based on fourth-quarter and year-end 2022 gold equivalent
production:
Production: Kinross produced
595,683 Au eq. oz. from continuing operations in Q4 2022, compared
with 340,337 Au eq. oz. from continuing operations in Q4 2021.
Over the full year, Kinross produced 1,957,237
Au eq. oz. from continuing operations, largely in line with the
Company’s revised production guidance, compared with full-year 2021
production of 1,447,240 Au eq. oz. from continuing operations. The
35% year-over-year increase was largely a result of higher
production at Tasiast due to the temporary suspension of milling
operations in the prior year, and production at La Coipa due to the
restart and ramp-up in the current year.
Average realized gold price:
The average realized gold price from continuing operations in Q4
2022 was $1,731 per ounce, compared with $1,797 per ounce in Q4
2021. For full-year 2022, the average realized gold price per ounce
from continuing operations was $1,793, in line with $1,797 per
ounce for full-year 2021.
Revenue: During the fourth
quarter, revenue from continuing operations was $1,076.2 million,
compared with $614.9 million during Q4 2021. Revenue from
continuing operations was $3,455.1 million for full-year 2022,
compared with $2,599.6 million for full-year 2021. The 33%
year-over-year increase is due to the increase in production at
Tasiast and La Coipa.
Production cost of sales:
Production cost of sales from continuing operations per Au eq. oz.
sold decreased to $848 for Q4 2022, compared with $889 in Q4 2021.
Production cost of sales2 from continuing operations per
Au eq. oz. sold was $937 for full-year 2022, compared with $842 per
Au eq. oz. for full-year 2021. The increase was mainly due to
inflationary cost pressure on key consumables such as fuel,
emulsion and reagents across the portfolio.
Production cost of sales from continuing
operations per Au oz. sold on a by-product basis3 was
$793 in Q4 2022 compared with $882 in Q4 2021, based on gold sales
of 586,146 ounces and silver sales of 2,820,983 ounces. Production
cost of sales from continuing operations per Au eq. oz. sold on a
by-product basis3 was $912 for full-year 2022, compared
with $833 for full-year 2021, based on 2022 gold sales of 1,872,342
ounces and silver sales of 4,647,415 ounces.
Margins4: Kinross’
margin from continuing operations per Au eq. oz. sold was $883 for
Q4 2022, compared with the Q4 2021 margin of $908. Full-year 2022
margin from continuing operations per Au eq. oz. sold was $856,
compared with $955 for full-year 2021.
All-in sustaining
cost3: All-in sustaining cost from continuing
operations per Au eq. oz. sold was $1,236 in Q4 2022, compared with
$1,485 in Q4 2021. Full-year all-in sustaining cost from continuing
operations per Au eq. oz. sold was $1,271, compared with $1,244 for
full-year 2021.
In Q4 2022, all-in sustaining cost from
continuing operations per Au oz. sold on a by-product basis was
$1,203, compared with $1,482 in Q4 2021. All-in sustaining cost
from continuing operations per Au oz. sold on a by-product basis
was $1,255 for full-year 2022, compared with $1,238 in 2021.
Operating cash flow: Operating
cash flow from continuing operations was $474.3 million for Q4
2022, compared with $148.0 million for Q4 2021. Operating cash flow
from continuing operations for full-year 2022 was $1,002.5 million,
compared with $695.1 million for full-year 2021, primarily due to
the increase in gold equivalent ounces sold arising from higher
production.
Adjusted operating cash flow3 from
continuing operations for Q4 2022 was $496.1 million, compared with
$260.4 million for Q4 2021. Adjusted operating cash
flow3 from continuing operations for full-year 2022 was
$1,256.5 million, compared with $932.1 million in 2021.
Free cash
flow3: Free cash flow from
continuing operations was $157.5 million in Q4 2022, compared with
a net cash outflow of $107.7 million for Q4 2021. For the full
year, free cash flow from continuing operations was $238.3 million,
compared with a net cash outflow of $126.6 million the previous
year. The increase in both periods was mainly due to an increase in
Au eq. oz. sold, insurance recoveries related to the 2021 Tasiast
mill fire, and a reduction in other operating expenses.
Impairment charge: Kinross
recorded a non-cash, after-tax impairment charge of $289.3 million
at Round Mountain. The impairment charge is related to changes to
the mine plan and slope design, and increased costs due to
inflation.
Earnings: Reported net loss
from continuing operations was $106.0 million for Q4 2022, or $0.08
per share, compared with reported net loss of $66.2 million, or
$0.05 per share, for Q4 2021. Reported net earnings in full-year
2022 was $31.9 million, or $0.02 per share, compared with reported
net loss of $29.9 million, or $0.02 per share, in 2021.
Adjusted net earnings3, 7
from continuing operations were $108.2 million, or $0.09 per share,
for Q4 2022, compared with $27.4 million, or $0.02 per share, for
Q4 2021. Full-year adjusted net earnings3, 7
from continuing operations were $283.1 million, or $0.22 per share,
compared with $210.8 million, or $0.17 per share, for full-year
2021, primarily due to the increase in Au eq. oz. sold.
Capital expenditures: Capital
expenditures from continuing operations increased to $316.8 million
for Q4 2022, compared with $255.7 million for Q4 2021. Capital
expenditures from continuing operations for full-year 2022 were
$764.2 million, compared with $821.7 million in 2021. The decrease
was primarily due to a decrease in capital stripping at certain
sites, partially offset by increased development activities at La
Coipa.
Balance sheet
As of December 31, 2022, Kinross had cash and
cash equivalents of $418.1 million, compared with $531.5 million at
December 31, 2021.
The Company had additional available
credit9 of $1,362.9 million as of December 31, 2022, and
total liquidity8 of approximately $1.8 billion.
________________________
9 “Available credit” is defined as available credit under
the Company’s credit facilities and is calculated in Section 6
Liquidity and Capital Resources of Kinross’ MD&A for the year
ended December 31, 2022.
Return of capital
In 2022, Kinross bolstered its capital
allocation strategy through its enhanced share
buyback and quarterly dividend programs. During
the past year, Kinross returned $455 million in capital to
shareholders, consisting of approximately $155 million in dividends
and $300 million as part of its share buyback program, an increase
of approximately $200 million compared with the prior year. In 2023
and 2024, the Company expects to maintain its dynamic share buyback
program, which is based on an allocation of excess free cash flow,
and baseline dividend programs while reinvesting in the business
and maintaining its investment grade balance sheet.
As part of its continuing quarterly dividend
program, the Company declared a dividend of $0.03 per common share
payable on March 23, 2023, to shareholders of record as of March 8,
2023.
Operating results
Mine-by-mine summaries for 2022 fourth-quarter
operating results may be found on pages 15 and 19 of this news
release. Highlights include the following:
Tasiast achieved record
production and record grades during the quarter. Cost of sales per
ounce sold was lower quarter-over-quarter mainly due to the
increase in production and higher year-over-year mainly due to
higher operating waste mined. Full-year production was higher due
to the temporary suspension of milling operations in the prior
year. During the quarter, the Company successfully finalized a
three-year collective labour agreement at Tasiast with no
interruption to operations.
Paracatu continued to perform
well and achieved its second highest production quarter on record,
driven by high grades and strong recoveries. Production for the
full-year 2022 increased compared with the previous year largely
due to higher grades and recoveries. Full-year cost of sales per
ounce sold increased largely due to inflationary pressures,
partially offset by increased ounces sold. Cost of sales per ounce
sold decreased quarter-over-quarter due to higher production.
Fort Knox full-year production
increased year-over-year largely due to increased mill throughput
and ounces recovered from the heap leach pads, as production from
the Barnes Creek heap leach pad ramped up. Full-year cost of sales
per ounce sold increased primarily due to inflationary cost
pressures on consumables and higher contractor costs related to
mining the Gil deposit. Q4 2022 was the strongest production
quarter of the year at Fort Knox largely due to more ounces
recovered from the Barnes Creek heap leach pad, partially offset by
marginally lower mill grades and recovery. Lower
quarter-over-quarter unit costs are mainly due to the increase in
production.
At Bald Mountain, full-year
production increased compared to 2021 due to an increase in ounces
recovered from the heap leach pads. For the full year, cost of
sales per ounce increased year-over-year largely due to
inflationary cost pressures on consumables, partially offset by the
increase in ounces sold. Production in Q4 2022 decreased
quarter-over-quarter mainly due to fewer ounces recovered from the
heap leach. Quarter-over-quarter unit costs were lower primarily
due to an increase in ounces sold.
At Round Mountain, full-year
production was lower year-over-year, primarily due to the timing of
ounces recovered from the heap leach pads. Cost of sales per ounce
sold was higher for the full year mainly due to lower production,
fewer lower-cost ounces recovered from the heap leach pads, and
inflationary cost pressures on consumables, cyanide in particular.
Production and cost of sales per ounce sold were in line
quarter-over-quarter.
The Company completed the Round Mountain
Optimization program in the third quarter and decided to prioritize
underground opportunities at Phase X and Gold Hill as they show
potential for higher-margin, higher-return operations as compared
to the open pit expansions at Phase W3 and Phase S. The Company
plans to start construction of an underground exploration decline
at Phase X in the first half of 2023. The Company is continuing to
mine Phase W (W1 and W2) while progressing underground
opportunities. The open pit expansion opportunities at Phase W3 and
Phase S remain in reserves and will continue to be optimized and
evaluated for potential exploitation with sustained macroeconomic
improvements.
La Coipa poured its first gold
in February 2022 and fourth quarter production showed significant
quarter-over-quarter improvement as Q4 throughput ramped up and as
mining and processing grades increased. Fourth quarter gold
production has ramped up and exceeded quarterly forecast levels for
2023. La Coipa has a planned mill shutdown in February for
maintenance work aimed at increasing reliability to sustain
throughput. Cost of sales per ounce sold was higher
quarter-over-quarter largely due to higher processing costs related
to maintenance and contractors.
Development projects
Tasiast
The Tasiast 24k project
continues to progress on schedule to reach throughput of 24,000 t/d
by mid-year and ramp-up to operate consistently at design tonnage
by the end of the year. The final expansion to the leach circuit is
now complete and has successfully been put into operation. The
plant is currently undergoing a planned shutdown to allow for the
installation of tie ins as part of the work for the 24k project.
Civil works are substantially complete and the mechanical
contractor is advancing with the installation of an additional
classifying cyclone which is the final stage in the series of 24k
debottlenecking scopes.
The 34MW Tasiast solar power plant continues to
advance and remains on schedule for completion in the second half
of 2023. Engineering is focused on deliverables for integration
with existing power infrastructure. Delivery of materials at site
has started and all photovoltaic modules are in transit or have
arrived. Construction is underway and earthworks are ongoing.
Mechanical works commenced in early February and electrical works
are expected to commence in early March.
Great Bear
Kinross announced a robust initial mineral
resource at the Great Bear project on February 13, 2023. The
initial mineral resource estimate consists of 2.737 Moz. of
indicated resources and 2.290 Moz. of inferred resources.
Read the announcement here: Great Bear Initial
Resource news release.
View an interactive 3D model here: Great Bear 3D
Model.
Manh Choh
At the 70% owned Manh Choh
project, activities remain on schedule and on budget, with the
early works program progressing as planned. Camp refurbishments
were completed in advance of the construction season and all
long-lead procurement orders for both the Fort Knox mill
modifications and the Manh Choh site have been placed. The Company
has selected an Alaska-based supplier for the life-of-mine ore haul
trucking and has also awarded the contract mining to a company with
significant experience working in Alaska. This contract will
include initial construction along with mining and closure
activities. Permitting is progressing well and a public comment
period is expected to open in early 2023 regarding the Company’s
applications. Kinross continues to focus on safely advancing the
project, listening to stakeholder concerns, and building on
relationships with the local communities and the Native Village of
Tetlin.
The Company announced on July 27, 2022, that it
was proceeding with the Manh Choh project as the operator of the
joint venture. Initial production from Manh Choh is expected in the
second half of 2024 and is expected to add approximately 640,000
attributable Au eq. oz. to the Company’s production profile over
its approximately 4.5 years life of mine.
Lobo-Marte
Kinross’ activities in Chile are currently
focused on La Coipa and opportunities to extend its mine life up to
the end of the decade with the potential of additional pushbacks.
The Lobo-Marte project continues to provide
optionality as a potential large, low-cost mine upon the conclusion
of mining at La Coipa. While the Company focuses its technical
resources on La Coipa, it will continue to engage and build
relationships with communities related to Lobo-Marte and government
stakeholders.
Company Guidance
The following section of the news release represents
forward-looking information and users are cautioned that actual
results may vary. We refer to the risks and assumptions contained
in the Cautionary Statement on Forward-Looking Information on page
39 of this news release.
This Company Guidance section below and
breakdown summarized in Appendix A of this news release references
all-in sustaining cost per equivalent ounce sold and sustaining and
non-sustaining capital expenditures, which are non-GAAP ratios and
financial measures, as applicable, with no standardized meaning
under IFRS and therefore, may not be comparable to similar measures
presented by other issuers. The definitions of these non-GAAP
ratios and financial measures and and comparable reconciliations
are included on pages 20 to 25 of this news
release.
The Company’s guidance, including commodity
price, foreign currency exchange rate assumptions, and a breakdown
of guidance by country, is summarized in Appendix
A: Refer to page 32 of this news release.
Production guidance
In 2023, Kinross expects to produce 2.1 million
Au eq. oz. (+/- 5%) from its operations, which is an increase of
approximately 140,000 Au eq. oz. compared with 2022 production.
Kinross’ annual production is expected to remain stable in 2024 and
2025 at 2.1 million and 2.0 million attributable1 Au eq.
oz. (+/- 5%), respectively.
Production is forecasted to be lower in the
first quarter of 2023 compared with the rest of the year, mainly as
a result of the current shutdown at Tasiast related to the 24k
project, the on-going ramp-up including planned mill shutdown at La
Coipa, and the seasonal impacts on mining at Paracatu and on the
Company’s US heap leach operations.
Cost guidance
Production cost of sales is expected to be $970
per Au eq. oz. (+/- 5%) for 2023. In 2022, production cost of sales
was $937 per Au eq. oz. The moderate year-over-year increase is
mainly due to inflationary impacts, including higher costs for
labour and consumables.
The Company expects its all-in sustaining
cost3 to be $1,320 per Au eq. oz. (+/- 5%) for
2023. In 2022, all-in sustaining cost3 was $1,271
per Au eq. oz. sold.
Capital expenditures
guidance
Attributable capital expenditures10
for 2023 are forecast to be approximately $1.0 billion (+/- 5%) and
are summarized in the table in Appendix A. The capital expenditures
guidance is higher than the prior year mainly due to carryover of
capital stripping from 2022 into 2023 across the portfolio, and the
advancement of the Manh Choh project and project studies at Great
Bear.
Kinross’ attributable capital
expenditures10 outlook for 2024 and 2025 is $850
million and $700 million, respectively, based on currently approved
projects. As Kinross continues to develop and optimize its
portfolio for production beyond 2025, other projects may be
incorporated into its capital expenditures, as well as potential
inflationary impacts, over the 2023-2024 timeframe.
Other 2023 guidance
The 2023 forecast for
exploration11 is $150 million (+/- 5%),
of which approximately $5 million is expected to be capitalized,
and is a $10 million increase from last year’s revised guidance.
The exploration program (greenfields and brownfields) will follow
up on 2022’s exploration success, and will focus on Great Bear,
developing the Phase X exploration drift at Round Mountain, and
underground exploration at Curlew Basin.
The 2023 forecast for overhead (general
and administrative and business development expenses) is
$135 million (+/- 5%), which is in line with the 2022 results, and
approximately $25 million less than the Company’s previous year
guidance primarily as a result of adjustments to Kinross’ regional
head office presence to align with its Americas-focused portfolio
following the divestitures in 2022.
Other operating costs expected
to be incurred in 2023 are approximately $100 million, which are
principally related to care and maintenance and reclamation.
Tax expense is expected to be
$135 million and taxes paid is expected to be $105
million. Adjusting the Brazilian real and Mauritanian Ouguiya to
the respective exchange rates of 5.22 and 36.64 to the U.S. dollar
in effect at December 31, 2022, the tax expense would be expected
to be approximately $175 million. Tax expense is expected to
increase by 25% of any profit resulting from higher gold prices.
Taxes paid is expected to increase by approximately $8 million for
every $100 movement in the realized gold price.
Depreciation, depletion and
amortization is forecast to be approximately $450 per Au
eq. oz. sold (+/- 5%).
Interest paid is forecast to be
approximately $160 million, which includes approximately $90
million of capitalized interest.
________________________
10 Attributable capital expenditure guidance includes
Kinross’ share of Manh Choh (70%) capital
expenditures.
11 Included in 2023 exploration guidance of $150
million are approximately $5 million of capitalized infill drilling
costs related to the Great Bear project. These costs are also
included in Great Bear’s approximately $40 million capital
guidance. See also Appendix A.
Environment, Social and
Governance
In 2022, Kinross continued its strong ESG
performance. ESG is a key factor in the Company’s culture, business
strategy and future growth plans. The Company completed the
development of its ESG strategy and strengthened its ESG
governance structure including monthly ESG
Executive Committee meetings and enhancing Board of Directors’
oversight with updates to the Board and Committee charter documents
and quarterly reports from the ESG Executive Committee.
Kinross maintained consistently high ratings as
measured by S&P CSA, MSCI, Refinitiv, Moody’s ESG, and
Sustainalytics. In The Globe and Mail’s annual Board Games
governance rating, Kinross was ranked the highest among Canadian
mining companies. The Company also began the process of external
assurance towards its conformance with the Responsible Gold Mining
Principles, which were established by the World Gold Council.
Across sites, operational ESG performance
focused on the Company’s First Priorities including health and
safety, environment, and communities. In health and
safety, the Company maintained low injury frequency rates
that were in line with three-year averages. However, this was
overshadowed by a tragic employee fatality at the Tasiast mine in
July 2022. The Company continues to prioritize health and safety as
its first priority and a newly established Global Safety Learning
Forum reinforces the Company’s people-centric and progressive
philosophy with a focus on sharing learnings across sites.
In environment, Kinross
Alaska recently received the Alaska Miners Association
Environmental Stewardship Award for best management practices in
environmental protection or restoration initiatives for its
partnership with Trout Unlimited to create the
Alaska Abandoned Mine Restoration
initiative (click here for video). In host
communities, a high level of interactions was maintained and
more than $10 million of monetary and in-kind contributions were
made through site community investment strategies throughout the
year. In the fourth quarter, humanitarian support was provided in
several parts of Mauritania due to extreme weather conditions which
affected people’s homes and livelihoods.
Kinross continues to make strides in its
commitment to diversity, equity and inclusion
(DEI) by working with key community partners, such as the Canadian
Centre for Diversity Inclusion (CCDI), Catalyst, the Black North
Initiative, Women in Mining, the Mining Industry Human Resources
Council, and many others, to offer our employees opportunities to
learn and embed inclusive behaviours in their everyday
interactions. In addition, the Kinross Global Inclusion and
Diversity Council, comprised of Kinross’ senior leaders, has
successfully provided two years of strategic direction and
oversight for the many DEI initiatives within the organization.
For more information on Kinross’ sustainability
performance, see the Company’s 2021 Sustainability Report and its
ESG Analyst Centre located on the Company website. The
Sustainability Report follows the Global Reporting Initiative (GRI)
and Sustainability Accounting Standards Board (SASB) reporting
standards and fulfills Kinross’ commitment as a participant in the
UN Global Compact. The Company’s 2022 Sustainability Report is
expected to be published in May 2023.
Kinross continues to advance its ESG strategy
across its assets by conducting workshops with sites to advance
their ESG strategy. It continues to monitor legislative initiatives
and evolving ESG reporting frameworks, and will update reporting as
required.
Exploration update
Exploration efforts and engineering optimization
added a total of approximately 380 Au koz. in estimated mineral
reserves before depletion in 2022; 530 Au koz. in measured and
indicated; and 2.23 million Au oz. inferred. The majority of the
additions are from Great Bear.
Brownfields exploration
The Company’s exploration efforts continued to
focus within the footprint of existing mines during 2022, with a
total of 336,019 metres of drilling completed for all exploration
projects.
Highlights of the 2022 brownfields exploration
program include significant results at the Company’s North America
assets: Round Mountain, Curlew Basin, Bald Mountain and Alaska. The
2022 programs focused on expanding key targets, and 2023 will test
high-grade zones.
• Round Mountain: Phase X
Underground drilling confirmed continuity of
mineralization in a key zone for both thickness and grade. Several
significant intercepts were received within the broader zone of
mineralization including:
- D-1185 – 9.8m @
4.72 g/t Au; 10.9m @ 6.56 g/t Au, (includes 3.5m @ 12.13 g/t
Au); and 3.0m @ 6.78 g/t Au (includes 0.9 @ 22.40 g/t
Au).
The 2023 Round Mountain exploration program will focus on
supporting Phase X Underground development,
geological modeling, and drilling.
• Drilling at Gold
Hill extended two major vein zones a cumulative total of
1150 metres along strike and intercepted several new veins outside
the existing model. The Gold Hill vein system remains open along
strike, with prospective structure, veining, and alteration
observed in the furthest west holes outlined below (See Appendix B:
Figure 1 for Round Mountain – Gold Hill map).
The 2021 Alexandria vein discovery was extended
over 750 metres along strike this year, significant intercept
highlights include:
- D-1166 – 2.1m @ 8.92 g/t Au,
includes 0.3m @ 31.20 g/t Au
- D-1176 – 1.9m @ 24.24 g/t Au,
includes 0.4m @ 107.00 g/t Au
The Jersey (formerly Main) vein zone was
extended over 400 metres west along strike, with robust structure,
veining, and alteration observed in the furthest west hole at Gold
Hill to-date (results pending). Significant intercept highlights
include:
- D-1173A – 2.3m @ 6.93 g/t Au,
includes 0.2m @ 36.90 g/t Au
- D-1173A – 2.3 m @ 6.01 g/t Au,
includes 0.8m @ 13.96 g/t Au
- D-1175 – 2.5m @ 8.04 g/t Au,
includes 0.8m @ 23.30 g/t Au
• Curlew Basin: Exploration
drilling resulted in a 157 koz. increase in indicated and 157 koz.
in inferred resource this year, bringing the current indicated
resource total to 393 koz. at 6.5 g/t Au. Drilling will continue
from the new underground exploration drifts which were completed in
2022. Underground exploration drilling (19,000 metres) confirmed
numerous vein zone extensions and continuity across multiple
targets, which will continue to add to the resource in 2023.
Highlights from drilling are listed below: (See Appendix B: Figure
2 for Curlew Basin map).
- Stealth 1105 – 6.0m @ 20.15
g/t Au (highest grade thickness intercept in >5 years
from Curlew)
- LP 1112 – 2.7m @ 23.89 g/t Au
- Gas LD4-002 – 2.1m @ 14.84 g/t
Au
- EVP 1202 – 4.2m @ 14.26 g/t Au
- WZ 1116 – 2.4m @ 11.59 g/t Au
- K5 – all assays pending
• Bald Mountain: Exploration tested
primarily the North area of operations with 8,150 metres of
drilling completed over six target areas. A priority focus was on
adding volume to Top underground where drilling documented
high-grade mineralization in a critical space and confirmed oxide
mineralization continues at significant distances beyond previously
known intercepts. (See Appendix B: Figure 3 for Bald Mountain map).
Highlights from 2022 results include:
- TD21-006 – 24.2m @ 19.24
g/t Au
- TD22-008 – 4.6m @ 6.80 g/t Au
Zed Williams is located southeast of the
previously mined Numbers pits and is located within the Bida-trend
intrusive related zone of mineralization. The target is primarily
near-surface and consists of thick intervals of low-grade
mineralization over a broad area. 2022 Drilling highlights
include:
- NA22-016 – 26.5m @ 1.76 g/t Au and
8.8m @ 4.07 g/t Au
- NA22-015 – 40.9m @ 0.69 g/t Au,
includes 6.4m @ 3.09 g/t Au
- ZWD22-016 – 56.4m @ 0.64 g/t Au,
includes 13.1m @ 1.79 g/t Au
• Alaska: Drilling at the Fort Knox
mine proved high-grade mineralization extends 300 metres outside
the current life-of-mine pit along the Dandelion Ore Shear.
Additionally, exploration sampled geotechnical and other holes
which also yielded significant results: (See Appendix B: Figure 4
for Alaska-Fort Knox map).
- FFC21-1835 – 12.2m @ 6.14 g/t Au, includes
4.6m @ 15.79 g/t Au (2021 geotech assays received in
2022)
- FFC22-1851 – 7.7m @ 4.51 g/t Au, includes 2.0m @ 16.78 g/t
Au
At Manh Choh, 1,979 metres of drilling was
completed at the North-East, Discovery, and Ridgeline targets, the
results of which are pending. Extensive regional reconnaissance was
conducted at the greater Tetlin lease area, which generated several
zones of interest for follow-up.
In 2023, Exploration will focus on testing the
extent and continuity of higher-grade ore-shears, outside of the
current resource shell at Fort Knox. Fairbanks District Exploration
will continue to test early-stage targets. Brownfields exploration
will continue in and around Manh Choh, as well as on the
encouraging reconnaissance results in the broader land package.
Great Bear
In 2022, Kinross completed a total of 250,000
metres of drilling, including 225,000 metres of diamond exploration
drilling. Kinross recently announced a robust estimate comprised of
an initial mineral resource of 2.7 million oz. indicated and 2.3
million oz. inferred at Great Bear.
Drilling results continue to support the view of
a high-grade, world-class deposit that underpins the prospect of a
large, long-life mining complex. Results have also confirmed gold
mineralization with good widths and high grades below the resource,
including high-grade mineralization at depths of more than 1,000
metres.
Kinross’ focus for 2023 will be exploration of
additional targets on Great Bear’s land package, as well as
exploration of the LP zone along strike and at depth with the goal
of further delineating the deposit at depth as well as adding
inferred resource ounces.
The Company is also progressing studies and
permitting for an advanced exploration program that would establish
an underground decline to obtain a bulk sample and allow for more
efficient exploration of deeper areas of the LP Fault, along with
the nearby Hinge and Limb gold zones. Kinross is targeting a
potential start of the advanced program as early as 2024.
For more information about the Great Bear
initial resource estimate, read the February 13, 2023, news release
here: Great Bear Initial
Resource news release.
Greenfields exploration
update
Kinross’ greenfields exploration strategy is to
identify areas that have the potential to host high-grade gold
deposits. The Company looks for opportunities where it can stake
its own claims or collaborate with high-quality junior exploration
companies through joint venture or equity investment. Kinross’
primary focus is for orogenic, epithermal, Carlin and intrusion
related deposits.
The greenfields exploration programs in 2022
focused on targets in Canada, Nevada, and Finland with
approximately 49,200m of drilling completed on all projects.
Canada
In Canada, exploration focused on the large land
holdings in Snow Lake, Manitoba, where both reconnaissance and
detailed mapping and prospecting took place followed by diamond
drilling of priority targets.
In Dryden, Ontario, work on the Company’s joint
venture (JV) property consisted of mechanical stripping, detail
mapping and channel sampling followed by diamond drilling.
In Red Lake, Ontario, prospecting and mapping on
two properties that were acquired as part of the Great Bear
Resources acquisition in early 2022 was completed.
Nevada
Work on the 100% owned Nevada properties
consisted of airborne geophysics, soil sampling, mapping,
prospecting and reverse circulation (RC) drilling of priority
targets. High-grade epithermal and Carlin style mineralization
remain the primary targets in Nevada.
In Nevada, mapping on our Goldbanks property
lead to the discovery of mineralized quartz veining at surface. RC
drilling of the area returned the following highlights:
- GB22-04 – 3.0m @ 2.05 g/t Au; and 4.6m @ 2.31 g/t Au
- GB22-07 – 29.0m @ 0.48 g/t Au; and 6.1m @ 1.01 g/t Au
- GB22-11 – 25.9m @ 1.60 g/t Au, including 1.5m @ 15.40 g/t
Au
- GB22-12 – 1.5m @ 9.96 g/t Au; and 7.6m @ 0.50 g/t Au
Additional mapping and drilling are planned for the Goldbanks
property in 2023.
Finland
Exploration efforts in Finland predominantly
consisted of base of till (BoT) drilling on the Company’s JV
properties in the Central Lapland Greenstone Belt. A diamond
drilling program followed up on the highest priority BoT results
and intersected low-grade gold mineralization. Base of till
drilling will continue on the properties in 2023 and drill targets
readied at the end of last year will be tested this winter.
In both Canada and Finland, Kinross’ focus is on
projects that could host high grade, mesothermal style gold
mineralization.
2023 Focus
For 2023, the exploration guidance (brownfields
and greenfields) is $150 million (+/- 5%) compared with $135.9
million spent in 2022. The 2023 program will follow up on
2022’s exploration success, including the exploration of additional
targets at Great Bear in addition to the LP zone along strike
and at depth, at Round Mountain related to the Phase X and Gold
Hill opportunities, and potentially building on the resource at
Curlew Basin.
- Great
Bear: Kinross is budgeting approximately $45
million11 for exploration of the large land
package, including exploration of the LP zone along strike and at
depth.
- Round Mountain:
Kinross is budgeting approximately $40 million for the construction
of a drift for underground exploration drilling at Phase X, and to
conduct surface exploration at Gold Hill and the greater Round
Mountain district.
-
Alaska: Kinross is budgeting approximately $10
million in Alaska for Fort Knox and Manh Choh, testing near-mine,
regional and generative targets around both deposits.
A more detailed summary of 2022 highlights is
presented below. Additional details may be found in the
Appendices.
“Appendix B” provides illustrations, captions,
and accompanying explanatory notes, and “Appendix C” provides
complete drilling results and drill hole location data
corresponding to the values below.
Appendix B: Refer to page 35 of
this news release.
Appendix C: www.kinross.com/Exploration-Drill-Results-Appendix-C-Q4-YE-2022
2022 Mineral Reserves and Mineral Resources
update
(See also the Company’s detailed Annual
Mineral Reserve and Mineral Resource Statement estimated as at
December 31, 2022 and explanatory notes starting at page
27.)
Kinross increased its gold price assumptions for
mineral reserves from $1,200 per ounce to $1,400 per ounce and
mineral resource from $1,600 per ounce to $1,700 per ounce, as of
December 31, 202212. Gold price assumptions have been
increased to better reflect the rising spot price of gold.
The Company also increased its silver price
assumption from $17 per ounce to $17.50 per ounce for its mineral
reserve estimates, but has decreased its silver price assumption to
$21.30 per ounce, from $22 per ounce for estimated mineral
resources.
Kinross continues to prioritize quality,
high-margin, low-cost ounces in its portfolio, and maintained its
fully loaded costing methodology.
Kinross Gold Mineral Reserve and Mineral Resource estimates
after divestitures13 |
|
2021 (Au koz.) |
Depletion (Au koz.) |
Exploration &
Engineering (Au koz.) |
2022 (Au koz.) |
Proven and Probable Reserves |
27,609 |
(2,448) |
374 |
25,535 |
Measured and Indicated Resources |
25,752 |
(71) |
530 |
26,211 |
Inferred Resources |
8,341 |
(53) |
2,234 |
10,522 |
Proven and Probable Mineral Reserves
Excluding the Company’s former Russian and
Ghanaian assets, Kinross’ proven and probable mineral reserve
estimates decreased by 7.5% or 2.1 million Au oz., primarily driven
by depletion.
The Company’s total proven and probable silver
mineral reserve estimate decreased by 16% to 36.1 million Ag oz. at
year-end 2022, compared with 42.9 million Ag oz. at year-end 2021.
The decrease was due to depletion at La Coipa, offset by reserve
additions at Manh Choh.
Measured and Indicated Mineral
Resources
Kinross’ total measured and indicated (M&I)
mineral resource estimate at year-end 2022 was 26.2 million Au oz.
compared with 25.8 million Au oz. at year-end 2021, excluding the
divestitures. This increase was driven by the initial resource at
Great Bear which added 2.7 million Au oz., offset by resource
decreases caused by increased costs across all assets, namely
Tasiast and Fort Knox.
The Company’s total measured and indicated
silver resources decreased by 5% to 37.6 million Ag oz. at year-end
2022, compared with 39.5 million Ag oz. at year-end 2021. The
decrease was mostly due the conversion of resource to reserve at
Manh Choh.
Inferred Mineral Resources
Kinross’ total inferred mineral resource
estimate increased to 10.5 million Au oz. at year-end 2022,
compared with 8.3 million Au oz. at year-end 2021, excluding the
divestitures. The increase can be attributed to Great Bear which
declared 2.3 million ounces of inferred mineral resources, and
Tasiast which added to its inferred underground resource estimate.
Increases were partially offset by decreases at Fort Knox and
Tasiast open pits.
________________________
12 Please see page 27 for Mineral
Reserve and Mineral Resource Statement Notes.
13 Rounding of values to the 000s may result in apparent
discrepancies.
Conference call details
In connection with this news release, Kinross
will hold a conference call and audio webcast on Thursday, February
16, 2023, at 8 a.m. ET to discuss the results, followed by a
question-and-answer session. To access the call, please dial:
Canada & US toll-free – +1
(888) 330-2446; Passcode: 4915537
Outside of Canada & US – +1 (240) 789-2732;
Passcode: 4915537
Replay (available up to 14 days after the
call):
Canada & US toll-free – +1
(800) 770-2030; Passcode: 4915537
Outside of Canada & US – +1 (647) 362-9199;
Passcode: 4915537
You may also access the conference call on a
listen-only basis via webcast at our website www.kinross.com. The
audio webcast will be archived on www.kinross.com.
This release should be read in conjunction with
Kinross’ 2022 year-end Financial Statements and Management’s
Discussion and Analysis report at www.kinross.com. Kinross’ 2022
year-end Financial Statements and Management’s Discussion and
Analysis have been filed with Canadian securities regulators
(available at www.sedar.com) and furnished
with the U.S. Securities and Exchange Commission (available at
www.sec.gov). Kinross
shareholders may obtain a copy of the financial statements free of
charge upon request to the Company.
About Kinross Gold Corporation
Kinross is a Canadian-based global senior gold
mining company with operations and projects in the United States,
Brazil, Mauritania, Chile and Canada. Our focus is on delivering
value based on the core principles of responsible mining,
operational excellence, disciplined growth, and balance sheet
strength. Kinross maintains listings on the Toronto Stock Exchange
(symbol:K) and the New York Stock Exchange (symbol:KGC).
Media Contact
Victoria Barrington
Senior Director, Corporate Communications
phone: 647-788-4153
victoria.barrington@kinross.com
Investor Relations Contact
Chris Lichtenheldt
Vice-President, Investor Relations
phone: 416-365-2761
chris.lichtenheldt@kinross.com
Review of operations
Three months ended
December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
Gold equivalent ounces |
|
|
|
|
|
|
|
|
Produced |
|
Sold |
|
Production cost of
sales ($millions) |
|
Production cost of
sales/equivalent
ounce sold |
|
2022 |
2021 |
|
2022 |
2021 |
|
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Fort Knox |
83,739 |
73,830 |
|
87,061 |
74,384 |
|
$ |
102.1 |
$ |
74.1 |
|
$ |
1,173 |
$ |
996 |
Round Mountain |
61,929 |
51,549 |
|
67,484 |
52,723 |
|
|
95.1 |
|
51.8 |
|
|
1,409 |
|
982 |
Bald Mountain |
58,521 |
61,036 |
|
66,847 |
53,559 |
|
|
62.8 |
|
50.1 |
|
|
939 |
|
935 |
Paracatu |
180,809 |
138,669 |
|
183,190 |
145,691 |
|
|
130.3 |
|
116.9 |
|
|
711 |
|
802 |
La Coipa |
67,683 |
- |
|
68,135 |
- |
|
|
39.4 |
|
- |
|
|
578 |
|
- |
Maricunga |
- |
- |
|
863 |
821 |
|
|
0.6 |
|
0.6 |
|
|
695 |
|
731 |
Americas Total |
452,681 |
325,084 |
|
473,580 |
327,178 |
|
|
430.3 |
|
293.5 |
|
|
909 |
|
897 |
|
|
|
|
|
|
|
|
|
|
|
|
Tasiast |
143,002 |
15,253 |
|
147,019 |
15,006 |
|
|
96.2 |
|
10.8 |
|
|
654 |
|
720 |
West Africa Total |
143,002 |
15,253 |
|
147,019 |
15,006 |
|
|
96.2 |
|
10.8 |
|
|
654 |
|
720 |
|
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations Total |
595,683 |
340,337 |
|
620,599 |
342,184 |
|
|
526.5 |
|
304.3 |
|
|
848 |
|
889 |
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations |
|
|
|
|
|
|
|
|
|
|
|
Kupol |
- |
116,179 |
|
- |
115,893 |
|
|
- |
|
75.2 |
|
$ |
- |
$ |
649 |
Chirano (100%) |
- |
34,561 |
|
- |
31,633 |
|
|
- |
|
45.7 |
|
|
- |
|
1,445 |
|
- |
150,740 |
|
- |
147,526 |
|
|
- |
|
120.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years months ended
December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
Gold equivalent ounces |
|
|
|
|
|
|
|
|
Produced |
|
Sold |
|
Production cost of
sales ($millions) |
|
Production cost of
sales/equivalent
ounce sold |
|
2022 |
2021 |
|
2022 |
2021 |
|
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Fort Knox |
291,248 |
264,283 |
|
291,793 |
263,590 |
|
$ |
350.7 |
$ |
267.2 |
|
$ |
1,202 |
$ |
1,014 |
Round Mountain |
226,374 |
257,005 |
|
227,655 |
259,941 |
|
|
309.2 |
|
235.9 |
|
|
1,358 |
|
908 |
Bald Mountain |
214,094 |
204,890 |
|
214,808 |
196,066 |
|
|
208.8 |
|
177.5 |
|
|
972 |
|
905 |
Paracatu |
577,354 |
550,560 |
|
571,164 |
549,900 |
|
|
497.6 |
|
412.1 |
|
|
871 |
|
749 |
La Coipa |
109,576 |
- |
|
99,915 |
- |
|
|
57.2 |
|
- |
|
|
572 |
|
- |
Maricunga |
- |
- |
|
3,191 |
2,787 |
|
|
2.1 |
|
2.0 |
|
|
658 |
|
718 |
Americas Total |
1,418,646 |
1,276,738 |
|
1,408,526 |
1,272,284 |
|
|
1,425.6 |
|
1,094.7 |
|
|
1,012 |
|
860 |
|
|
|
|
|
|
|
|
|
|
|
|
Tasiast |
538,591 |
170,502 |
|
519,292 |
174,193 |
|
|
380.1 |
|
123.6 |
|
|
732 |
|
710 |
West Africa Total |
538,591 |
170,502 |
|
519,292 |
174,193 |
|
|
380.1 |
|
123.6 |
|
|
732 |
|
710 |
|
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations Total |
1,957,237 |
1,447,240 |
|
1,927,818 |
1,446,477 |
|
|
1,805.7 |
|
1,218.3 |
|
|
937 |
|
842 |
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations |
|
|
|
|
|
|
|
|
|
|
|
Kupol |
169,156 |
481,108 |
|
122,295 |
480,968 |
|
|
83.8 |
|
306.2 |
|
|
685 |
|
637 |
Chirano (100%) |
82,060 |
154,668 |
|
87,823 |
148,293 |
|
|
131.2 |
|
201.6 |
|
|
1,494 |
|
1,359 |
|
251,216 |
635,776 |
|
210,118 |
629,261 |
|
|
215.0 |
|
507.8 |
|
|
|
Consolidated balance sheets
(expressed in millions of U.S. dollars, except share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
As at |
|
|
|
December 31, |
|
December 31, |
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
418.1 |
|
|
$ |
531.5 |
|
|
Restricted cash |
|
|
10.1 |
|
|
|
11.4 |
|
|
Accounts receivable and other assets |
|
|
318.2 |
|
|
|
214.5 |
|
|
Current income tax recoverable |
|
|
8.5 |
|
|
|
10.2 |
|
|
Inventories |
|
|
1,072.2 |
|
|
|
1,151.3 |
|
|
Unrealized fair value of derivative assets |
|
|
25.5 |
|
|
|
30.0 |
|
|
|
|
|
1,852.6 |
|
|
|
1,948.9 |
|
|
Non-current assets |
|
|
|
|
|
Property, plant and equipment |
|
|
7,741.4 |
|
|
|
7,617.7 |
|
|
Goodwill |
|
|
- |
|
|
|
158.8 |
|
|
Long-term investments |
|
|
116.9 |
|
|
|
98.2 |
|
|
Other long-term assets |
|
|
680.9 |
|
|
|
598.0 |
|
|
Deferred tax assets |
|
|
4.6 |
|
|
|
6.5 |
|
|
Total assets |
|
$ |
10,396.4 |
|
|
$ |
10,428.1 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
550.0 |
|
|
$ |
492.7 |
|
|
Current income tax payable |
|
|
89.4 |
|
|
|
95.0 |
|
|
Current portion of long-term debt and credit facilities |
|
|
36.0 |
|
|
|
40.0 |
|
|
Current portion of provisions |
|
|
50.8 |
|
|
|
90.0 |
|
|
Other current liabilities |
|
|
25.3 |
|
|
|
23.7 |
|
|
|
|
|
751.5 |
|
|
|
741.4 |
|
|
Non-current liabilities |
|
|
|
|
|
Long-term debt and credit facilities |
|
|
2,556.9 |
|
|
|
1,589.9 |
|
|
Provisions |
|
|
755.9 |
|
|
|
847.9 |
|
|
Long-term lease liabilities |
|
|
23.1 |
|
|
|
35.1 |
|
|
Other long-term liabilities |
|
|
125.3 |
|
|
|
127.4 |
|
|
Deferred tax liabilities |
|
|
301.5 |
|
|
|
436.8 |
|
|
Total liabilities |
|
$ |
4,514.2 |
|
|
$ |
3,778.5 |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
Common shareholders' equity |
|
|
|
|
|
Common share capital |
|
$ |
4,449.5 |
|
|
$ |
4,427.7 |
|
|
Contributed surplus |
|
|
10,667.5 |
|
|
|
10,664.4 |
|
|
Accumulated deficit |
|
|
(9,251.6 |
) |
|
|
(8,492.4 |
) |
|
Accumulated other comprehensive income (loss) |
|
|
(41.7 |
) |
|
|
(18.8 |
) |
|
Total common shareholders' equity |
|
|
5,823.7 |
|
|
|
6,580.9 |
|
|
Non-controlling interests |
|
|
58.5 |
|
|
|
68.7 |
|
|
Total equity |
|
|
5,882.2 |
|
|
|
6,649.6 |
|
|
Total liabilities and equity |
|
$ |
10,396.4 |
|
|
$ |
10,428.1 |
|
|
|
|
|
|
|
|
Common shares |
|
|
|
|
|
Authorized |
|
|
Unlimited |
|
|
|
Unlimited |
|
|
Issued and outstanding |
|
|
1,221,891,341 |
|
|
|
1,244,332,772 |
|
|
|
|
|
|
|
|
Consolidated statements of operations
(expressed in millions of U.S. dollars, except share and per
share amounts) |
|
|
|
|
|
|
|
Years ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
|
2022 |
|
|
|
2021 |
|
|
Revenue |
|
|
|
|
|
Metal sales |
|
$ |
3,455.1 |
|
|
$ |
2,599.6 |
|
|
|
|
|
|
|
|
Cost of sales |
|
|
|
|
|
Production cost of sales |
|
|
1,805.7 |
|
|
|
1,218.3 |
|
|
Depreciation, depletion and amortization |
|
|
784.0 |
|
|
|
695.7 |
|
|
Impairment charges and asset derecognition |
|
|
350.0 |
|
|
|
144.5 |
|
|
Total cost of sales |
|
|
2,939.7 |
|
|
|
2,058.5 |
|
|
Gross profit |
|
|
515.4 |
|
|
|
541.1 |
|
|
Other operating expense |
|
|
113.8 |
|
|
|
266.4 |
|
|
Exploration and business development |
|
|
154.1 |
|
|
|
88.2 |
|
|
General and administrative |
|
|
129.8 |
|
|
|
114.4 |
|
|
Operating earnings |
|
|
117.7 |
|
|
|
72.1 |
|
|
Other income - net |
|
|
64.4 |
|
|
|
83.6 |
|
|
Finance income |
|
|
18.3 |
|
|
|
10.8 |
|
|
Finance expense |
|
|
(93.7 |
) |
|
|
(82.2 |
) |
|
Earnings from continuing operations before
tax |
|
|
106.7 |
|
|
|
84.3 |
|
|
Income tax expense - net |
|
|
(76.1 |
) |
|
|
(115.0 |
) |
|
Earnings (loss) from continuing operations after tax |
|
|
30.6 |
|
|
|
(30.7 |
) |
|
(Loss) earnings from discontinued operations after tax |
|
|
(636.3 |
) |
|
|
249.4 |
|
|
Net (loss) earnings |
|
$ |
(605.7 |
) |
|
$ |
218.7 |
|
|
Net earnings (loss) from continuing operations attributable
to: |
|
|
|
|
|
Non-controlling interests |
|
$ |
(1.3 |
) |
|
$ |
(0.8 |
) |
|
Common shareholders |
|
$ |
31.9 |
|
|
$ |
(29.9 |
) |
|
Net (loss) earnings from discontinued operations
attributable to: |
|
|
|
|
|
Non-controlling interests |
|
$ |
0.8 |
|
|
$ |
(1.7 |
) |
|
Common shareholders |
|
$ |
(637.1 |
) |
|
$ |
251.1 |
|
|
Net (loss) earnings attributable to: |
|
|
|
|
|
Non-controlling interests |
|
$ |
(0.5 |
) |
|
$ |
(2.5 |
) |
|
Common shareholders |
|
$ |
(605.2 |
) |
|
$ |
221.2 |
|
|
Earnings (loss) per share from continuing operations
attributable to common shareholders |
|
|
|
|
|
Basic |
|
$ |
0.02 |
|
|
$ |
(0.02 |
) |
|
Diluted |
|
$ |
0.02 |
|
|
$ |
(0.02 |
) |
|
(Loss) earnings per share from discontinued operations
attributable to common shareholders |
|
$ |
(0.50 |
) |
|
$ |
0.20 |
|
|
Basic |
|
$ |
(0.50 |
) |
|
$ |
0.20 |
|
|
Diluted |
|
|
|
|
|
(Loss) earnings per share attributable to common
shareholders |
|
|
|
|
|
Basic |
|
$ |
(0.47 |
) |
|
$ |
0.18 |
|
|
Diluted |
|
$ |
(0.47 |
) |
|
$ |
0.17 |
|
|
Consolidated statements of cash flows
(expressed in millions of U.S. dollars) |
|
|
|
|
|
|
|
Years ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
|
2022 |
|
|
|
2021 |
|
|
Net inflow (outflow) of cash related to the following
activities: |
|
|
|
|
|
Operating: |
|
|
|
|
|
Earnings (loss) from continuing operations after tax |
|
$ |
30.6 |
|
|
$ |
(30.7 |
) |
|
Adjustments to reconcile net earnings (loss) from continuing
operations to net cash provided from operating activities: |
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
784.0 |
|
|
|
695.7 |
|
|
Impairment charges and asset derecognition |
|
|
350.0 |
|
|
|
144.5 |
|
|
Share-based compensation expense |
|
|
9.3 |
|
|
|
10.8 |
|
|
Finance expense |
|
|
93.7 |
|
|
|
82.2 |
|
|
Deferred tax recovery |
|
|
(56.2 |
) |
|
|
(36.9 |
) |
|
Foreign exchange losses and other |
|
|
21.6 |
|
|
|
64.7 |
|
|
Reclamation expense |
|
|
23.5 |
|
|
|
1.8 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
Accounts receivable and other assets |
- |
|
17.9 |
|
|
|
(70.1 |
) |
|
Inventories |
|
|
(261.6 |
) |
|
|
(125.0 |
) |
|
Accounts payable and accrued liabilities |
|
|
130.4 |
|
|
|
116.2 |
|
|
Cash flow provided from operating activities |
|
|
1,143.2 |
|
|
|
853.2 |
|
|
Income taxes paid |
|
|
(140.7 |
) |
|
|
(158.1 |
) |
|
Net cash flow of continuing operations provided from
operating activities |
|
|
1,002.5 |
|
|
|
695.1 |
|
|
Net cash flow of discontinued operations provided from
operating activities |
|
|
47.6 |
|
|
|
440.1 |
|
|
Investing: |
|
|
|
|
|
Additions to property, plant and equipment |
|
|
(764.2 |
) |
|
|
(821.7 |
) |
|
Interest paid capitalized to property, plant and equipment |
|
|
(43.7 |
) |
|
|
(47.8 |
) |
|
Acquisitions, net of cash acquired |
|
|
(1,027.5 |
) |
|
|
- |
|
|
Net additions to long-term investments and other assets |
|
|
(67.2 |
) |
|
|
(66.3 |
) |
|
(Increase) decrease in restricted cash - net |
|
|
(4.2 |
) |
|
|
0.2 |
|
|
Interest received and other - net |
|
|
8.8 |
|
|
|
- |
|
|
Net cash flow of continuing operations used in investing
activities |
|
|
(1,898.0 |
) |
|
|
(935.6 |
) |
|
Net cash flow of discontinued operations provided from
(used in) investing activities |
|
|
296.2 |
|
|
|
(257.0 |
) |
|
Financing: |
|
|
|
|
|
Proceeds from drawdown of debt |
|
|
1,297.6 |
|
|
|
200.0 |
|
|
Repayment of debt |
|
|
(340.0 |
) |
|
|
(500.0 |
) |
|
Interest paid |
|
|
(52.4 |
) |
|
|
(46.9 |
) |
|
Payment of lease liabilities |
|
|
(23.2 |
) |
|
|
(33.8 |
) |
|
Dividends paid to common shareholders |
|
|
(154.0 |
) |
|
|
(151.1 |
) |
|
Repurchase and cancellation of shares |
|
|
(300.8 |
) |
|
|
(100.2 |
) |
|
Other - net |
|
|
10.3 |
|
|
|
8.8 |
|
|
Net cash flow of continuing operations provided from (used
in) financing activities |
|
|
437.5 |
|
|
|
(623.2 |
) |
|
Net cash flow of discontinued operations provided from
financing activities |
|
|
- |
|
|
|
- |
|
|
Effect of exchange rate changes on cash and cash
equivalents of continuing operations |
|
|
(0.8 |
) |
|
|
0.7 |
|
|
Effect of exchange rate changes on cash and cash
equivalents of discontinued operations |
|
|
1.6 |
|
|
|
0.5 |
|
|
Decrease in cash and cash equivalents |
|
|
(113.4 |
) |
|
|
(679.4 |
) |
|
Cash and cash equivalents, beginning of
period |
|
|
531.5 |
|
|
|
1,210.9 |
|
|
Cash and cash equivalents, end of period |
|
$ |
418.1 |
|
|
$ |
531.5 |
|
|
|
Operating Summary |
|
Mine |
Period |
Tonnes Ore
Mined(d) |
Ore Processed (Milled) |
Ore Processed (Heap Leach) |
Grade (Mill)(d) |
Grade (Heap Leach) |
Recovery (a)(d) |
Gold Eq
Production(b) |
Gold Eq Sales(b) |
Production cost of sales |
Production cost of
sales/oz(c) |
Cap Ex -
sustaining(e) |
Total Cap Ex (e) |
DD&A |
|
|
|
('000 tonnes) |
('000 tonnes) |
('000 tonnes) |
(g/t) |
(g/t) |
(%) |
(ounces) |
(ounces) |
($ millions) |
($/ounce) |
($ millions) |
($ millions) |
($ millions) |
Americas |
Fort Knox |
Q4 2022 |
12,205 |
2,395 |
11,454 |
0.69 |
0.20 |
79 |
% |
83,739 |
87,061 |
$ |
102.1 |
$ |
1,173 |
$ |
34.4 |
$ |
39.1 |
$ |
40.9 |
Q3 2022 |
15,547 |
2,477 |
13,120 |
0.71 |
0.21 |
80 |
% |
75,522 |
74,221 |
$ |
88.6 |
$ |
1,194 |
$ |
30.5 |
$ |
31.0 |
$ |
21.8 |
Q2 2022 |
14,591 |
2,260 |
12,785 |
0.72 |
0.19 |
81 |
% |
77,184 |
77,698 |
$ |
92.6 |
$ |
1,192 |
$ |
12.1 |
$ |
13.1 |
$ |
26.1 |
Q1 2022 |
13,743 |
1,852 |
13,010 |
0.66 |
0.17 |
80 |
% |
54,803 |
52,813 |
$ |
67.4 |
$ |
1,276 |
$ |
1.7 |
$ |
2.9 |
$ |
20.9 |
Q4 2021 |
9,203 |
2,148 |
8,185 |
0.73 |
0.19 |
82 |
% |
73,830 |
74,384 |
$ |
74.1 |
$ |
996 |
$ |
25.2 |
$ |
31.6 |
$ |
30.9 |
Round Mountain |
Q4 2022 |
5,177 |
962 |
4,772 |
0.74 |
0.36 |
74 |
% |
61,929 |
67,484 |
$ |
95.1 |
$ |
1,409 |
$ |
41.1 |
$ |
41.1 |
$ |
19.1 |
Q3 2022 |
8,856 |
1,021 |
8,336 |
0.64 |
0.27 |
79 |
% |
62,417 |
61,757 |
$ |
87.0 |
$ |
1,409 |
$ |
24.7 |
$ |
24.7 |
$ |
17.6 |
Q2 2022 |
6,702 |
945 |
6,515 |
0.67 |
0.32 |
78 |
% |
56,709 |
51,455 |
$ |
74.8 |
$ |
1,454 |
$ |
20.5 |
$ |
20.6 |
$ |
11.7 |
Q1 2022 |
3,767 |
929 |
3,208 |
0.80 |
0.36 |
79 |
% |
45,319 |
46,959 |
$ |
52.3 |
$ |
1,114 |
$ |
15.9 |
$ |
16.0 |
$ |
12.1 |
Q4 2021 |
1,755 |
1,057 |
1,529 |
0.64 |
0.33 |
75 |
% |
51,549 |
52,723 |
$ |
51.8 |
$ |
982 |
$ |
50.1 |
$ |
50.3 |
$ |
14.5 |
Bald Mountain |
Q4 2022 |
3,002 |
- |
2,957 |
- |
0.37 |
nm |
58,521 |
66,847 |
$ |
62.8 |
$ |
939 |
$ |
17.2 |
$ |
37.4 |
$ |
63.4 |
Q3 2022 |
4,152 |
- |
4,152 |
- |
0.37 |
nm |
65,394 |
52,472 |
$ |
51.2 |
$ |
976 |
$ |
10.4 |
$ |
28.2 |
$ |
39.1 |
Q2 2022 |
4,945 |
- |
4,945 |
- |
0.60 |
nm |
54,108 |
54,472 |
$ |
54.5 |
$ |
1,001 |
$ |
5.0 |
$ |
16.2 |
$ |
38.4 |
Q1 2022 |
3,870 |
- |
3,870 |
- |
0.63 |
nm |
36,071 |
41,017 |
$ |
40.3 |
$ |
983 |
$ |
2.7 |
$ |
5.8 |
$ |
35.1 |
Q4 2021 |
5,222 |
- |
5,222 |
- |
0.52 |
nm |
61,036 |
53,559 |
$ |
50.1 |
$ |
935 |
$ |
10.4 |
$ |
17.2 |
$ |
57.2 |
Paracatu |
Q4 2022 |
13,324 |
13,847 |
- |
0.50 |
- |
81 |
% |
180,809 |
183,190 |
$ |
130.3 |
$ |
711 |
$ |
43.9 |
$ |
43.9 |
$ |
52.7 |
Q3 2022 |
11,752 |
13,797 |
- |
0.45 |
- |
79 |
% |
159,113 |
152,616 |
$ |
131.1 |
$ |
859 |
$ |
33.6 |
$ |
33.6 |
$ |
47.2 |
Q2 2022 |
11,011 |
15,133 |
- |
0.35 |
- |
75 |
% |
129,423 |
133,472 |
$ |
129.6 |
$ |
971 |
$ |
31.2 |
$ |
31.2 |
$ |
46.0 |
Q1 2022 |
6,165 |
13,645 |
- |
0.33 |
- |
75 |
% |
108,009 |
101,886 |
$ |
106.6 |
$ |
1,046 |
$ |
16.0 |
$ |
16.0 |
$ |
39.6 |
Q4 2021 |
13,036 |
15,451 |
- |
0.35 |
- |
77 |
% |
138,669 |
145,691 |
$ |
116.9 |
$ |
802 |
$ |
49.6 |
$ |
49.6 |
$ |
47.7 |
La Coipa(f) |
Q4 2022 |
1,047 |
933 |
- |
1.47 |
- |
84 |
% |
67,683 |
68,135 |
$ |
39.4 |
$ |
578 |
$ |
2.6 |
$ |
46.0 |
$ |
25.6 |
Q3 2022 |
1,079 |
637 |
- |
1.19 |
- |
83 |
% |
33,955 |
24,681 |
$ |
12.1 |
$ |
490 |
$ |
2.9 |
$ |
34.7 |
$ |
- |
Q2 2022 |
550 |
321 |
- |
0.74 |
- |
69 |
% |
7,414 |
7,099 |
$ |
5.6 |
$ |
789 |
$ |
1.6 |
$ |
39.0 |
$ |
- |
Q1 2022 |
174 |
58 |
- |
nm |
- |
nm |
524 |
- |
$ |
- |
$ |
- |
$ |
0.7 |
$ |
35.8 |
$ |
- |
Q4 2021 |
nm |
- |
- |
- |
- |
- |
|
- |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
43.2 |
$ |
- |
West Africa |
Tasiast |
Q4 2022 |
3,737 |
1,627 |
- |
3.21 |
- |
90 |
% |
143,002 |
147,019 |
$ |
96.2 |
$ |
654 |
$ |
38.3 |
$ |
90.3 |
$ |
48.7 |
Q3 2022 |
4,437 |
1,741 |
- |
2.72 |
- |
89 |
% |
132,754 |
128,014 |
$ |
94.8 |
$ |
741 |
$ |
3.6 |
$ |
33.4 |
$ |
58.0 |
Q2 2022 |
3,053 |
1,680 |
- |
2.51 |
- |
89 |
% |
129,140 |
114,064 |
$ |
93.3 |
$ |
818 |
$ |
6.7 |
$ |
24.3 |
$ |
56.4 |
Q1 2022 |
3,462 |
1,524 |
- |
2.54 |
- |
94 |
% |
133,695 |
130,195 |
$ |
95.8 |
$ |
736 |
$ |
4.1 |
$ |
19.4 |
$ |
57.1 |
Q4 2021 |
1,061 |
1,068 |
- |
1.50 |
- |
94 |
% |
15,253 |
15,006 |
$ |
10.8 |
$ |
720 |
$ |
7.3 |
$ |
52.5 |
$ |
13.1 |
(a) Due to the nature of heap leach
operations, recovery rates at Bald Mountain cannot be accurately
measured on a quarterly basis. Recovery rates at Fort Knox, Round
Mountain and Tasiast represent mill recovery
only.
(b) Gold equivalent ounces include
silver ounces produced and sold converted to a gold equivalent
based on the ratio of the average spot market prices for the
commodities for each period. The ratios for the quarters presented
are as follows: Q4 2022: 81.88:1; Q3 2022: 89.91:1; Q2 2022:
82.77:1; Q1 2022: 78.19:1; Q4 2021:
76.89:1.
(c) “Production cost of sales per
equivalent ounce sold” is defined as production cost of sales
divided by total gold equivalent ounces sold from continuing
operations.
(d) "nm" means not
meaningful.
(e) "Total Cap Ex" is reported
as “Additions to property, plant and equipment” on the consolidated
statements of cash flows. "Capital expenditures - sustaining" is a
non-GAAP financial measure. The definition and reconciliation of
this non-GAAP financial measure is included on pages 24 and 25 of
this news release.
(f) La Coipa silver grade
and recovery were as follows: Q4 2022: 137.53 g/t, 68%; Q3 2022:
121.06 g/t, 61%; Q2 2022: 56.04 g/t, 43%; Q1 2022: nm; Q4 2021:
nil.
Reconciliation of non-GAAP financial measures and
ratios
The Company has included certain non-GAAP
financial measures and ratios in this document. These financial
measures and ratios are not defined under International Financial
Reporting Standards (IFRS) and should not be considered in
isolation. The Company believes that these financial measures and
ratios, together with financial measures and ratios determined in
accordance with IFRS, provide investors with an improved ability to
evaluate the underlying performance of the Company. The inclusion
of these financial measures and ratios is meant to provide
additional information and should not be used as a substitute for
performance measures prepared in accordance with IFRS. These
financial measures and ratios are not necessarily standard and
therefore may not be comparable to other issuers.
All the non-GAAP financial measures and ratios
in this document for the years ended December 31, 2022 and 2021 are
from continuing operations and exclude results from the Company’s
Chirano and Russian operations due to the classification of these
operations as discontinued. The comparative information for the
year ended December 31, 2021, as previously presented in the
MD&A and financial statements for the year ended December 31,
2021, has been updated retrospectively to exclude Chirano and
Russia. As a result of the exclusion of Chirano, the following
non-GAAP financial measures and ratios are no longer presented on
an attributable basis for the years ended December 31, 2022 and
2021, but on a total basis: production cost of sales from
continuing operations per ounce sold on a by-product basis and
all-in-sustaining cost from continuing operations per equivalent
ounce sold and per ounce sold on a by-product basis.
Adjusted net earnings from continuing
operations attributable to common shareholders and
adjusted net earnings from continuing operations per
share are non-GAAP financial measures and ratios which
determine the performance of the Company, excluding certain impacts
which the Company believes are not reflective of the Company’s
underlying performance for the reporting period, such as the impact
of foreign exchange gains and losses, reassessment of prior year
taxes and/or taxes otherwise not related to the current period,
impairment charges (reversals), gains and losses and other one-time
costs related to acquisitions, dispositions and other transactions,
and non-hedge derivative gains and losses. Although some of the
items are recurring, the Company believes that they are not
reflective of the underlying operating performance of its current
business and are not necessarily indicative of future operating
results. Management believes that these measures and ratios, which
are used internally to assess performance and in planning and
forecasting future operating results, provide investors with the
ability to better evaluate underlying performance, particularly
since the excluded items are typically not included in public
guidance. However, adjusted net earnings from continuing operations
and adjusted net earnings from continuing operations per share
measures and ratios are not necessarily indicative of net earnings
from continuing operations and earnings per share measures and
ratios as determined under IFRS.
The following table provides a reconciliation of
net (loss) earnings from continuing operations to adjusted net
earnings from continuing operations for the periods presented:
|
|
|
|
|
|
|
(expressed in millions of U.S dollars,
except per share amounts) |
Three months ended |
|
Years ended |
December 31, |
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
Net loss (earnings) from continuing operations attributable to
common shareholders - as reported |
$ |
(106.0 |
) |
$ |
(66.2 |
) |
|
$ |
31.9 |
|
$ |
(29.9 |
) |
Adjusting items: |
|
|
|
|
|
|
Foreign exchange (gains) losses |
|
(0.7 |
) |
|
(0.3 |
) |
|
|
(0.8 |
) |
|
1.2 |
|
|
Foreign exchange (gains) losses on translation of tax basis and
foreign exchange on deferred income taxes within income tax
expense |
|
(17.1 |
) |
|
13.2 |
|
|
|
(25.5 |
) |
|
22.7 |
|
|
Taxes in respect of prior periods |
|
0.4 |
|
|
4.9 |
|
|
|
16.2 |
|
|
21.9 |
|
|
Impairment charges and asset derecognition(a) |
|
350.0 |
|
|
144.5 |
|
|
|
350.0 |
|
|
144.5 |
|
|
Restructuring costs |
|
- |
|
|
- |
|
|
|
13.0 |
|
|
- |
|
|
Reclamation expense |
|
19.6 |
|
|
1.8 |
|
|
|
23.5 |
|
|
1.8 |
|
|
VAT recovery in respect of prior periods |
|
(24.2 |
) |
|
- |
|
|
|
(24.2 |
) |
|
- |
|
|
Tasiast insurance recoveries |
|
(77.1 |
) |
|
(90.0 |
) |
|
|
(77.1 |
) |
|
(90.0 |
) |
|
Loss on sale of assets |
|
12.1 |
|
|
4.6 |
|
|
|
14.3 |
|
|
7.8 |
|
|
COVID-19 costs(b) |
|
- |
|
|
7.6 |
|
|
|
- |
|
|
20.7 |
|
|
Tasiast mill fire related costs |
|
- |
|
|
19.3 |
|
|
|
- |
|
|
60.3 |
|
|
Round Mountain pit wall stabilization costs |
|
- |
|
|
7.4 |
|
|
|
- |
|
|
50.1 |
|
|
Mediation settlement provision |
|
- |
|
|
17.1 |
|
|
|
- |
|
|
42.1 |
|
|
Tasiast definitive agreement settlement |
|
- |
|
|
- |
|
|
|
- |
|
|
10.0 |
|
|
Other(c) |
|
16.4 |
|
|
8.9 |
|
|
|
22.6 |
|
|
11.3 |
|
|
Tax effects of the above adjustments |
|
(65.2 |
) |
|
(45.4 |
) |
|
|
(60.8 |
) |
|
(63.7 |
) |
|
|
|
214.2 |
|
|
93.6 |
|
|
|
251.2 |
|
|
240.7 |
|
Adjusted net earnings from continuing operations attributable to
common shareholders |
$ |
108.2 |
|
$ |
27.4 |
|
|
$ |
283.1 |
|
$ |
210.8 |
|
Weighted average number of common shares outstanding - Basic |
|
1,258.4 |
|
|
1,261.2 |
|
|
|
1,280.5 |
|
|
1,259.1 |
|
Adjusted net earnings from continuing operations per share |
$ |
0.09 |
|
$ |
0.02 |
|
|
$ |
0.22 |
|
$ |
0.17 |
|
Basic (loss) earnings from continuing operations per share
attributable to common shareholders - as reported |
$ |
(0.08 |
) |
$ |
(0.05 |
) |
|
$ |
0.02 |
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) During the year ended December 31,
2022, the Company recognized impairment charges of $350.0 million
at Round Mountain, of which $106.8 million related to impairment of
metal inventory and $243.2 million related to impairment of
property, plant and equipment. The income tax recoveries related to
the impairment charges were $18.9 million and $41.8 million,
respectively. During the year ended December 31, 2021, the Company
recognized impairment and asset derecognition charges of $144.5
million at Bald Mountain, of which $95.2 million related to
impairment of metal inventory and $49.3 million related to the
derecognition of property, plant and equipment. The income tax
recoveries related to the impairment charges were $25.3 million and
$13.1 million,
respectively.
(b) Includes COVID-19
related labour, health and safety, donations and other support
program costs. For the year ended December 31, 2022, adjusted net
earnings has not been adjusted for COVID-19 related costs of $8.7
million incurred at operating
sites.
(c) Other includes various
impacts, such as one-time costs at sites, and gains and losses on
hedges, which the Company believes are not reflective of the
Company’s underlying performance for the reporting
period.
Free cash flow from continuing
operations is a non-GAAP financial measure and is defined
as net cash flow of continuing operations provided from operating
activities less additions to property, plant and equipment. The
Company believes that this measure, which is used internally to
evaluate the Company’s underlying cash generation performance and
the ability to repay creditors and return cash to shareholders,
provides investors with the ability to better evaluate the
Company’s underlying performance. However, the free cash flow from
continuing operations measure is not necessarily indicative of
operating earnings or net cash flow of continuing operations
provided from operating activities as determined under
IFRS.
The following table provides a reconciliation of
free cash flow from continuing operations for the periods
presented:
|
|
|
|
|
|
(expressed in millions of U.S dollars) |
Three months ended |
|
Years ended |
December 31, |
|
December 31, |
|
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
Net cash flow of continuing operations provided from operating
activities - as reported |
$ |
474.3 |
|
$ |
148.0 |
|
|
$ |
1,002.5 |
|
$ |
695.1 |
|
|
|
|
|
|
|
Less: Additions to property, plant and equipment |
|
(316.8 |
) |
|
(255.7 |
) |
|
|
(764.2 |
) |
|
(821.7 |
) |
|
|
|
|
|
|
Free cash flow from continuing operations |
$ |
157.5 |
|
$ |
(107.7 |
) |
|
$ |
238.3 |
|
$ |
(126.6 |
) |
|
|
|
|
|
|
Adjusted operating cash flow from continuing operations is
a non-GAAP financial measure and is defined as net cash flow of
continuing operations provided from operating activities excluding
certain impacts which the Company believes are not reflective of
the Company’s regular operating cash flow and excluding changes in
working capital. Working capital can be volatile due to numerous
factors, including the timing of tax payments. The Company uses
adjusted operating cash flow from continuing operations internally
as a measure of the underlying operating cash flow performance and
future operating cash flow-generating capability of the Company.
However, the adjusted operating cash flow from continuing
operations measure is not necessarily indicative of net cash flow
of continuing operations provided from operating activities as
determined under IFRS.
The following table provides a reconciliation of
adjusted operating cash flow from continuing operations for the
periods presented:
|
|
|
|
|
|
|
(expressed in millions of U.S dollars) |
Three months ended |
|
Years ended |
December 31, |
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
Net cash flow of continuing operations provided from operating
activities - as reported |
$ |
474.3 |
|
$ |
148.0 |
|
|
$ |
1,002.5 |
|
$ |
695.1 |
|
|
|
|
|
|
|
|
Adjusting items: |
|
|
|
|
|
|
Working capital changes: |
|
|
|
|
|
|
Accounts receivable and other assets |
|
29.1 |
|
|
68.1 |
|
|
|
(17.9 |
) |
|
70.1 |
|
|
Inventories |
|
39.2 |
|
|
53.8 |
|
|
|
261.6 |
|
|
125.0 |
|
|
Accounts payable and other liabilities, including income taxes
paid |
|
(46.5 |
) |
|
(9.5 |
) |
|
|
10.3 |
|
|
41.9 |
|
|
Total working capital changes |
|
21.8 |
|
|
112.4 |
|
|
|
254.0 |
|
|
237.0 |
|
Adjusted operating cash flow from continuing operations |
$ |
496.1 |
|
$ |
260.4 |
|
|
$ |
1,256.5 |
|
$ |
932.1 |
|
|
|
|
|
|
|
|
Production cost of sales from continuing operations per ounce sold
on a by-product basis is a non-GAAP ratio which calculates
the Company’s non-gold production as a credit against its per ounce
production costs, rather than converting its non-gold production
into gold equivalent ounces and crediting it to total production,
as is the case in co-product accounting. Management believes that
this ratio provides investors with the ability to better evaluate
Kinross’ production cost of sales per ounce on a comparable basis
with other major gold producers who routinely calculate their cost
of sales per ounce using by-product accounting rather than
co-product accounting.
The following table provides a reconciliation of
production cost of sales from continuing operations per ounce sold
on a by-product basis for the periods presented:
|
|
(expressed in millions of U.S. dollars,
except ounces and production cost of sales per equivalent
ounce) |
Three months ended |
|
Years ended |
December 31, |
|
December 31, |
|
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
Production cost of sales from continuing operations - as
reported |
$ |
526.5 |
|
$ |
304.3 |
|
|
$ |
1,805.7 |
|
$ |
1,218.3 |
|
Less: silver revenue(a) |
|
(61.9 |
) |
|
(5.2 |
) |
|
|
(98.9 |
) |
|
(25.2 |
) |
Production cost of sales from continuing operations net of silver
by-product revenue |
$ |
464.6 |
|
$ |
299.1 |
|
|
$ |
1,706.8 |
|
$ |
1,193.1 |
|
|
|
|
|
|
|
Gold ounces sold from continuing operations |
|
586,146 |
|
|
339,275 |
|
|
|
1,872,342 |
|
|
1,432,396 |
|
Gold equivalent ounces sold from continuing operations |
|
620,599 |
|
|
342,184 |
|
|
|
1,927,818 |
|
|
1,446,477 |
|
Production cost of sales from continuing operations per ounce sold
on a by-product basis |
$ |
793 |
|
$ |
882 |
|
|
$ |
912 |
|
$ |
833 |
|
Production cost of sales from continuing operations per equivalent
ounce sold(b) |
$ |
848 |
|
$ |
889 |
|
|
$ |
937 |
|
$ |
842 |
|
|
|
|
|
|
|
See page 26 for details of the
footnotes referenced within the table above.
All-in sustaining cost and attributable
all-in cost from continuing operations per ounce sold on a
by-product basis are non-GAAP financial measures and
ratios, as applicable, calculated based on guidance published by
the World Gold Council (“WGC”). The WGC is a market development
organization for the gold industry and is an association whose
membership comprises leading gold mining companies including
Kinross. Although the WGC is not a mining industry regulatory
organization, it worked closely with its member companies to
develop these metrics. Adoption of the all-in sustaining cost and
all-in cost metrics is voluntary and not necessarily standard, and
therefore, these measures and ratios presented by the Company may
not be comparable to similar measures and ratios presented by other
issuers. The Company believes that the all-in sustaining cost and
all-in cost measures complement existing measures and ratios
reported by Kinross.
All-in sustaining cost includes both operating
and capital costs required to sustain gold production on an ongoing
basis. The value of silver sold is deducted from the total
production cost of sales as it is considered residual production,
i.e. a by-product. Sustaining operating costs represent
expenditures incurred at current operations that are considered
necessary to maintain current production. Sustaining capital
represents capital expenditures at existing operations comprising
mine development costs, including capitalized stripping, and
ongoing replacement of mine equipment and other capital facilities,
and does not include capital expenditures for major growth projects
or enhancement capital for significant infrastructure improvements
at existing operations.
All-in cost is comprised of all-in sustaining
cost as well as operating expenditures incurred at locations with
no current operation, or costs related to other non-sustaining
activities, and capital expenditures for major growth projects or
enhancement capital for significant infrastructure improvements at
existing operations.
All-in sustaining cost and attributable
all-in cost from continuing operations per ounce sold on a
by-product basis are calculated by adjusting production
cost of sales from continuing operations, as reported on the
consolidated statements of operations, as follows:
|
|
|
|
|
|
|
(expressed in millions of U.S. dollars,
|
Three months ended |
|
Years ended |
except ounces and costs per ounce) |
December 31, |
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
Production cost of sales from continuing operations - as
reported |
$ |
526.5 |
|
$ |
304.3 |
|
|
$ |
1,805.7 |
|
$ |
1,218.3 |
|
Less: silver revenue from continuing operations(a) |
|
(61.9 |
) |
|
(5.2 |
) |
|
|
(98.9 |
) |
|
(25.2 |
) |
Production cost of sales from continuing operations net of silver
by-product revenue |
$ |
464.6 |
|
$ |
299.1 |
|
|
$ |
1,706.8 |
|
$ |
1,193.1 |
|
Adjusting items: |
|
|
|
|
|
|
General and administrative(d) |
|
29.3 |
|
|
28.9 |
|
|
|
116.8 |
|
|
114.4 |
|
|
Other operating expense - sustaining(e) |
|
5.0 |
|
|
1.5 |
|
|
|
28.5 |
|
|
9.3 |
|
|
Reclamation and remediation - sustaining(f) |
|
14.2 |
|
|
10.0 |
|
|
|
42.7 |
|
|
39.2 |
|
|
Exploration and business development -
sustaining(g) |
|
7.7 |
|
|
11.0 |
|
|
|
30.6 |
|
|
35.7 |
|
|
Additions to property, plant and equipment -
sustaining(h) |
|
178.0 |
|
|
142.9 |
|
|
|
402.6 |
|
|
349.2 |
|
|
Lease payments - sustaining(i) |
|
6.1 |
|
|
9.4 |
|
|
|
22.4 |
|
|
32.6 |
|
All-in Sustaining Cost on a by-product basis |
$ |
704.9 |
|
$ |
502.8 |
|
|
$ |
2,350.4 |
|
$ |
1,773.5 |
|
Adjusting items on an attributable(c) basis: |
|
|
|
|
|
|
Other operating expense - non-sustaining(e) |
|
12.8 |
|
|
9.6 |
|
|
|
45.1 |
|
|
37.7 |
|
|
Reclamation and remediation - non-sustaining(f) |
|
1.9 |
|
|
0.9 |
|
|
|
8.0 |
|
|
3.4 |
|
|
Exploration and business development -
non-sustaining(g) |
|
40.1 |
|
|
13.8 |
|
|
|
122.3 |
|
|
51.9 |
|
|
Additions to property, plant and equipment -
non-sustaining(h) |
|
134.4 |
|
|
111.9 |
|
|
|
352.4 |
|
|
468.4 |
|
|
Lease payments - non-sustaining(i) |
|
- |
|
|
0.3 |
|
|
|
0.8 |
|
|
1.2 |
|
All-in Cost on a by-product basis - attributable(c) |
$ |
894.1 |
|
$ |
639.3 |
|
|
$ |
2,879.0 |
|
$ |
2,336.1 |
|
Gold ounces sold from continuing operations |
|
586,146 |
|
|
339,275 |
|
|
|
1,872,342 |
|
|
1,432,396 |
|
All-in sustaining cost from continuing operations per ounce sold on
a by-product basis |
$ |
1,203 |
|
$ |
1,482 |
|
|
$ |
1,255 |
|
$ |
1,238 |
|
Attributable(c) all-in cost from continuing operations
per ounce sold on a by-product basis |
$ |
1,525 |
|
$ |
1,884 |
|
|
$ |
1,538 |
|
$ |
1,631 |
|
Production cost of sales from continuing operations per equivalent
ounce sold(b) |
$ |
848 |
|
$ |
889 |
|
|
$ |
937 |
|
$ |
842 |
|
|
|
|
|
|
|
|
See page 26 for details of the
footnotes referenced within the table above.
The Company also assesses its all-in sustaining
cost and attributable all-in cost from continuing operations on a
gold equivalent ounce basis. Under these non-GAAP financial
measures and ratios, the Company’s production of silver is
converted into gold equivalent ounces and credited to total
production.
All-in sustaining cost and attributable
all-in cost from continuing operations per equivalent ounce
sold are calculated by adjusting production cost of sales
from continuing operations, as reported on the consolidated
statements of operations, as follows:
|
|
|
|
|
|
|
(expressed in millions of U.S. dollars,
except ounces and costs per equivalent ounce) |
Three months ended |
|
Years ended |
December 31, |
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
Production cost of sales from continuing operations - as
reported |
$ |
526.5 |
|
$ |
304.3 |
|
|
$ |
1,805.7 |
|
$ |
1,218.3 |
|
Adjusting items: |
|
|
|
|
|
|
General and administrative(d) |
|
29.3 |
|
|
28.9 |
|
|
|
116.8 |
|
|
114.4 |
|
|
Other operating expense - sustaining(e) |
|
5.0 |
|
|
1.5 |
|
|
|
28.5 |
|
|
9.3 |
|
|
Reclamation and remediation - sustaining(f) |
|
14.2 |
|
|
10.0 |
|
|
|
42.7 |
|
|
39.2 |
|
|
Exploration and business development -
sustaining(g) |
|
7.7 |
|
|
11.0 |
|
|
|
30.6 |
|
|
35.7 |
|
|
Additions to property, plant and equipment -
sustaining(h) |
|
178.0 |
|
|
142.9 |
|
|
|
402.6 |
|
|
349.2 |
|
|
Lease payments - sustaining(i) |
|
6.1 |
|
|
9.4 |
|
|
|
22.4 |
|
|
32.6 |
|
All-in Sustaining Cost |
$ |
766.8 |
|
$ |
508.0 |
|
|
$ |
2,449.3 |
|
$ |
1,798.7 |
|
Adjusting items on an attributable(c) basis: |
|
|
|
|
|
|
Other operating expense - non-sustaining(e) |
|
12.8 |
|
|
9.6 |
|
|
|
45.1 |
|
|
37.7 |
|
|
Reclamation and remediation - non-sustaining(f) |
|
1.9 |
|
|
0.9 |
|
|
|
8.0 |
|
|
3.4 |
|
|
Exploration and business development -
non-sustaining(g) |
|
40.1 |
|
|
13.8 |
|
|
|
122.3 |
|
|
51.9 |
|
|
Additions to property, plant and equipment -
non-sustaining(h) |
|
134.4 |
|
|
111.9 |
|
|
|
352.4 |
|
|
468.4 |
|
|
Lease payments - non-sustaining(i) |
|
- |
|
|
0.3 |
|
|
|
0.8 |
|
|
1.2 |
|
All-in Cost - attributable(c) |
$ |
956.0 |
|
$ |
644.5 |
|
|
$ |
2,977.9 |
|
$ |
2,361.3 |
|
Gold equivalent ounces sold from continuing operations |
|
620,599 |
|
|
342,184 |
|
|
|
1,927,818 |
|
|
1,446,477 |
|
All-in sustaining cost from continuing operations per equivalent
ounce sold |
$ |
1,236 |
|
$ |
1,485 |
|
|
$ |
1,271 |
|
$ |
1,244 |
|
Attributable(c) all-in cost from continuing operations
per equivalent ounce sold |
$ |
1,540 |
|
$ |
1,883 |
|
|
$ |
1,545 |
|
$ |
1,632 |
|
Production cost of sales from continuing operations per equivalent
ounce sold(b) |
$ |
848 |
|
$ |
889 |
|
|
$ |
937 |
|
$ |
842 |
|
|
|
|
|
|
|
|
See page 26 for details of the
footnotes referenced within the table above.
Capital expenditures from continuing
operations are classified as either sustaining capital
expenditures or non-sustaining capital expenditures, depending on
the nature of the expenditure. Sustaining capital expenditures
typically represent capital expenditures at existing operations
including capitalized exploration costs and capitalized stripping
unless related to major projects, ongoing replacement of mine
equipment and other capital facilities and other capital
expenditures and is calculated as total additions to property,
plant and equipment (as reported on the consolidated statements of
cash flows), less non-sustaining capital expenditures.
Non-sustaining capital expenditures represent capital expenditures
for major projects, including major capital stripping projects at
existing operations that are expected to materially benefit the
operation, as well as enhancement capital for significant
infrastructure improvements at existing operations. Management
believes this to be a useful indicator of the purpose of capital
expenditures and this distinction is an input into the calculation
of all-in sustaining costs from continuing operations per ounce and
attributable all-in costs from continuing operations per ounce. The
categorization of sustaining capital expenditures and
non-sustaining capital expenditures is consistent with the
definitions under the WGC all-in cost standard. Sustaining capital
expenditures and non-sustaining capital expenditures are not
defined under IFRS, however, the sum of these two measures total to
additions to property, plant and equipment as disclosed under IFRS
on the consolidated statements of cash flows.
The following table provides a reconciliation of
the classification of capital expenditures for the periods
presented:
(expressed in millions of U.S dollars) |
Three months ended December 31, 2022: |
Fort
Knox
(USA) |
Round
Mountain
(USA) |
Bald
Mountain
(USA) |
Manh
Choh
(USA) |
Total
USA |
Paracatu
(Brazil) |
La Coipa
(Chile) |
Tasiast
(Mauritania) |
Other |
Total |
Sustaining capital expenditures |
$ |
34.4 |
$ |
41.1 |
$ |
17.2 |
$ |
- |
$ |
92.7 |
$ |
43.9 |
$ |
2.6 |
$ |
38.3 |
$ |
0.8 |
$ |
178.3 |
Non-sustaining capital expenditures |
|
4.7 |
|
- |
|
20.2 |
|
17.1
|
|
42.0
|
|
- |
|
43.4 |
|
52.0 |
|
1.1
|
|
138.5 |
Additions to property, plant and equipment - per cash flow |
$ |
39.1 |
$ |
41.1 |
$ |
37.4 |
$ |
17.1
|
$ |
134.7 |
$ |
43.9 |
$ |
46.0 |
$ |
90.3 |
$ |
1.9
|
$ |
316.8 |
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, 2021: |
|
|
|
|
|
|
|
|
|
|
Sustaining capital expenditures |
$ |
25.2 |
$ |
50.1 |
$ |
10.4 |
$ |
- |
$ |
85.7 |
$ |
49.6 |
$ |
- |
$ |
7.3 |
$ |
0.4 |
$ |
143.0 |
Non-sustaining capital expenditures |
|
6.4 |
|
0.2 |
|
6.8 |
|
2.9 |
|
16.3 |
|
- |
|
43.2 |
|
45.2 |
|
8.0 |
|
112.7 |
Additions to property, plant and equipment - per cash flow |
$ |
31.6 |
$ |
50.3 |
$ |
17.2 |
$ |
2.9 |
$ |
102.0 |
$ |
49.6 |
$ |
43.2 |
$ |
52.5 |
$ |
8.4 |
$ |
255.7 |
|
|
|
|
|
|
|
|
|
|
|
(expressed in millions of U.S dollars) |
|
|
|
|
|
|
Years ended December 31, 2022: |
Fort
Knox
(USA) |
Round
Mountain
(USA) |
Bald
Mountain
(USA) |
Manh
Choh
(USA) |
Total
USA |
Paracatu
(Brazil) |
La
Coipa
(Chile) |
Tasiast
(Mauritania) |
Other(a) |
Total |
Sustaining capital expenditures |
$ |
78.7 |
$ |
102.2 |
$ |
35.3 |
$ |
- |
$ |
216.2 |
$ |
124.7 |
$ |
7.8 |
$ |
52.7 |
$ |
1.2 |
$ |
402.6 |
Non-sustaining capital expenditures |
|
7.4 |
|
0.2 |
|
52.3 |
|
33.2
|
|
93.1 |
|
- |
|
147.7 |
|
114.7 |
|
6.1 |
|
361.6 |
Additions to property, plant and equipment - per cash flow |
$ |
86.1 |
$ |
102.4 |
$ |
87.6 |
$ |
33.2
|
$ |
309.3 |
$ |
124.7 |
$ |
155.5 |
$ |
167.4 |
$ |
7.3
|
$ |
764.2 |
|
|
|
|
|
|
|
|
|
|
|
Years ended December 31, 2021: |
|
|
|
|
|
|
|
|
|
|
Sustaining capital expenditures |
$ |
72.5 |
$ |
91.1 |
$ |
30.3 |
$ |
- |
$ |
193.9 |
$ |
127.9 |
$ |
- |
$ |
26.6 |
$ |
0.8 |
$ |
349.2 |
Non-sustaining capital expenditures |
|
40.6 |
|
34.4 |
|
8.7 |
|
13.5 |
|
97.2 |
|
- |
|
117.5 |
|
232.8 |
|
25.0 |
|
472.5 |
Additions to property, plant and equipment - per cash flow |
$ |
113.1 |
$ |
125.5 |
$ |
39.0 |
$ |
13.5 |
$ |
291.1 |
$ |
127.9 |
$ |
117.5 |
$ |
259.4 |
$ |
25.8 |
$ |
821.7 |
(a) Other includes non-sustaining capital
expenditures of $5.9 million in 2022 at Lobo-Marte in Chile and
sustaining and non-sustaining capital expenditures of $1.2 million
and $0.2 million in 2022, respectively, in
Canada.
(a) “Silver revenue”
represents the portion of metal sales realized from the production
of the secondary or by-product metal (i.e. silver). Revenue from
the sale of silver, which is produced as a by-product of the
process used to produce gold, effectively reduces the cost of gold
production.
(b) “Production cost of sales from continuing
operations per equivalent ounce sold” is defined as production cost
of sales from continuing operations divided by total gold
equivalent ounces sold from continuing operations.
(c) “Attributable” includes Kinross’ share of
Manh Choh (70%) costs. As Manh Choh is a non-operating site, the
attributable costs are non-sustaining costs and as such only impact
the all-in-cost measures.
(d) “General and administrative” expenses is
as reported on the consolidated statements of operations, net of
certain restructuring expenses. General and administrative expenses
are considered sustaining costs as they are required to be absorbed
on a continuing basis for the effective operation and governance of
the Company.
(e) “Other operating expense – sustaining” is
calculated as “Other operating expense” as reported on the
consolidated statements of operations, less other operating and
reclamation and remediation expenses related to non-sustaining
activities as well as other items not reflective of the underlying
operating performance of our business. Other operating expenses are
classified as either sustaining or non-sustaining based on the type
and location of the expenditure incurred. The majority of other
operating expenses that are incurred at existing operations are
considered costs necessary to sustain operations, and are therefore
classified as sustaining. Other operating expenses incurred at
locations where there is no current operation or related to other
non-sustaining activities are classified as
non-sustaining.
(f) “Reclamation and remediation - sustaining”
is calculated as current period accretion related to reclamation
and remediation obligations plus current period amortization of the
corresponding reclamation and remediation assets, and is intended
to reflect the periodic cost of reclamation and remediation for
currently operating mines. Reclamation and remediation costs for
development projects or closed mines are excluded from this amount
and classified as non-sustaining.
(g) “Exploration and business development –
sustaining” is calculated as “Exploration and business development”
expenses as reported on the consolidated statements of operations,
less non-sustaining exploration and business development expenses.
Exploration expenses are classified as either sustaining or
non-sustaining based on a determination of the type and location of
the exploration expenditure. Exploration expenditures within the
footprint of operating mines are considered costs required to
sustain current operations and so are included in sustaining costs.
Exploration expenditures focused on new ore bodies near existing
mines (i.e. brownfield), new exploration projects (i.e. greenfield)
or for other generative exploration activity not linked to existing
mining operations are classified as non-sustaining. Business
development expenses are classified as either sustaining or
non-sustaining based on a determination of the type of expense and
requirement for general or growth related operations.
(h) “Additions to property, plant and
equipment – sustaining and non-sustaining are as presented on pages
24 and 25 of this news release. Non-sustaining capital expenditures
included in the calculation of attributable all-in-cost includes
Kinross’ share of Manh Choh (70%) costs.
(i) “Lease payments – sustaining” represents
the majority of lease payments as reported on the consolidated
statements of cash flows and is made up of the principal and
financing components of such cash payments, less non-sustaining
lease payments. Lease payments for development projects or closed
mines are classified as non-sustaining.
2022 Annual Mineral Reserve and Resource
Statement
Proven and Probable Mineral Reserves
MINERAL RESERVE AND MINERAL RESOURCE
STATEMENT |
|
|
|
|
|
|
|
GOLD |
PROVEN AND PROBABLE MINERAL RESERVES
(1,4,5,6,7,8) |
|
|
|
|
|
|
|
|
Kinross Gold Corporation's Share at December 31,
2022 |
|
|
|
|
|
|
|
|
Property |
Location |
Kinross |
Proven |
Probable |
Proven and Probable |
Interest |
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
(%) |
(kt) |
(g/t) |
(koz) |
(kt) |
(g/t) |
(koz) |
(kt) |
(g/t) |
(koz) |
NORTH AMERICA |
|
|
|
|
|
|
|
|
|
|
|
|
Bald Mountain |
|
USA |
100.0 |
% |
- |
- |
- |
36,900 |
0.5 |
625 |
36,900 |
0.5 |
625 |
Fort Knox |
|
USA |
100.0 |
% |
22,726 |
0.4 |
275 |
155,238 |
0.3 |
1,660 |
177,964 |
0.3 |
1,935 |
Manh Choh |
2 |
USA |
70.0 |
% |
- |
- |
- |
2,755 |
7.9 |
698 |
2,755 |
7.9 |
698 |
Round Mountain |
9 |
USA |
100.0 |
% |
7,318 |
0.3 |
75 |
90,242 |
0.7 |
2,171 |
97,560 |
0.7 |
2,246 |
SUBTOTAL |
|
|
|
30,044 |
0.4 |
350 |
285,135 |
0.6 |
5,154 |
315,179 |
0.5 |
5,504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
SOUTH AMERICA |
|
|
|
|
|
|
|
|
|
|
|
|
La Coipa |
10 |
Chile |
100.0 |
% |
1,119 |
1.3 |
48 |
15,999 |
1.7 |
869 |
17,118 |
1.7 |
917 |
Lobo-Marte |
3 |
Chile |
100.0 |
% |
- |
- |
- |
160,702 |
1.3 |
6,733 |
160,702 |
1.3 |
6,733 |
Paracatu |
|
Brazil |
100.0 |
% |
328,208 |
0.5 |
5,000 |
179,322 |
0.3 |
1,644 |
507,530 |
0.4 |
6,644 |
SUBTOTAL |
|
|
|
329,327 |
0.5 |
5,048 |
356,023 |
0.8 |
9,246 |
685,350 |
0.6 |
14,294 |
|
|
|
|
|
|
|
|
|
|
|
|
|
AFRICA |
|
|
|
|
|
|
|
|
|
|
|
|
Tasiast |
|
Mauritania |
100.0 |
% |
54,519 |
1.2 |
2,087 |
53,529 |
2.1 |
3,650 |
108,048 |
1.7 |
5,737 |
SUBTOTAL |
|
|
|
54,519 |
1.2 |
2,087 |
53,529 |
2.1 |
3,650 |
108,048 |
1.7 |
5,737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL GOLD |
|
|
|
413,890 |
0.6 |
7,485 |
694,687 |
0.8 |
18,050 |
1,108,577 |
0.7 |
25,535 |
|
|
|
|
|
|
|
|
|
|
|
|
|
MINERAL RESERVE AND MINERAL RESOURCE
STATEMENT |
|
|
|
|
|
|
|
SILVER |
PROVEN AND PROBABLE MINERAL RESERVES
(1,4,5,6,7,8) |
|
|
|
|
|
|
|
|
Kinross Gold Corporation's Share at December 31,
2022 |
|
|
|
|
|
|
|
|
Property |
Location |
Kinross |
Proven |
Probable |
Proven and Probable |
Interest |
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
(%) |
(kt) |
(g/t) |
(koz) |
(kt) |
(g/t) |
(koz) |
(kt) |
(g/t) |
(koz) |
NORTH AMERICA |
|
|
|
|
|
|
|
|
|
|
|
|
Manh Choh |
2 |
USA |
70.0 |
% |
- |
- |
- |
2,755 |
13.6 |
1,203 |
2,755 |
13.6 |
1,203 |
Round Mountain |
9 |
USA |
100.0 |
% |
- |
- |
- |
1,358 |
6.8 |
298 |
1,358 |
6.8 |
298 |
SUBTOTAL |
|
|
|
- |
- |
- |
4,113 |
11.3 |
1,501 |
4,113 |
11.3 |
1,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
SOUTH AMERICA |
|
|
|
|
|
|
|
|
|
|
|
|
La Coipa |
10 |
Chile |
100.0 |
% |
1,119 |
108.1 |
3,888 |
15,999 |
59.6 |
30,669 |
17,118 |
62.8 |
34,557 |
SUBTOTAL |
|
|
|
1,119 |
108.1 |
3,888 |
15,999 |
59.6 |
30,669 |
17,118 |
62.8 |
34,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL SILVER |
|
|
|
1,119 |
108.1 |
3,888 |
20,112 |
49.8 |
32,170 |
21,231 |
52.8 |
36,058 |
See page 30 of this news release for details of the
footnotes referenced within the table above.
Measured and Indicated Mineral Resources
MINERAL RESERVE AND MINERAL RESOURCE
STATEMENT |
|
|
|
|
|
|
|
GOLD |
MEASURED AND INDICATED MINERAL RESOURCES (EXCLUDES PROVEN
AND PROBABLE MINERAL RESERVES)
(4,5,6,7,8,11,12,15) |
|
|
Kinross Gold Corporation's Share at December 31,
2022 |
|
|
|
|
|
|
|
|
Property |
Location |
Kinross |
Measured |
Indicated |
Measured and Indicated |
Interest |
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
(%) |
(kt) |
(g/t) |
(koz) |
(kt) |
(g/t) |
(koz) |
(kt) |
(g/t) |
(koz) |
NORTH AMERICA |
|
|
|
|
|
|
|
|
|
|
|
|
Bald Mountain |
|
USA |
100.0 |
% |
8,381 |
0.7 |
190 |
239,764 |
0.5 |
3,538 |
248,145 |
0.5 |
3,728 |
Fort Knox |
|
USA |
100.0 |
% |
5,691 |
0.3 |
60 |
99,674 |
0.3 |
1,032 |
105,365 |
0.3 |
1,092 |
Great Bear |
|
Canada |
100.0 |
% |
- |
- |
- |
33,110 |
2.6 |
2,737 |
33,110 |
2.6 |
2,737 |
Kettle River |
|
USA |
100.0 |
% |
- |
- |
- |
1,892 |
6.5 |
393 |
1,892 |
6.5 |
393 |
Manh Choh |
13 |
USA |
70.0 |
% |
- |
- |
- |
592 |
2.4 |
46 |
592 |
2.4 |
46 |
Round Mountain |
9 |
USA |
100.0 |
% |
- |
- |
- |
119,736 |
0.9 |
3,293 |
119,736 |
0.9 |
3,293 |
SUBTOTAL |
|
|
|
14,072 |
0.6 |
250 |
494,768 |
0.7 |
11,039 |
508,840 |
0.7 |
11,289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
SOUTH AMERICA |
|
|
|
|
|
|
|
|
|
|
|
|
La Coipa |
10 |
Chile |
100.0 |
% |
5,425 |
1.9 |
329 |
22,274 |
1.6 |
1,117 |
27,699 |
1.6 |
1,446 |
Lobo-Marte |
14 |
Chile |
100.0 |
% |
- |
- |
- |
99,440 |
0.7 |
2,366 |
99,440 |
0.7 |
2,366 |
Maricunga |
|
Chile |
100.0 |
% |
64,728 |
0.7 |
1,521 |
221,602 |
0.7 |
4,688 |
286,330 |
0.7 |
6,209 |
Paracatu |
|
Brazil |
100.0 |
% |
64,311 |
0.5 |
976 |
280,905 |
0.3 |
2,423 |
345,216 |
0.3 |
3,399 |
SUBTOTAL |
|
|
|
134,464 |
0.7 |
2,826 |
624,221 |
0.5 |
10,594 |
758,685 |
0.6 |
13,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
AFRICA |
|
|
|
|
|
|
|
|
|
|
|
|
Tasiast |
|
Mauritania |
100.0 |
% |
8,784 |
1.0 |
272 |
36,416 |
1.1 |
1,230 |
45,200 |
1.0 |
1,502 |
SUBTOTAL |
|
|
|
8,784 |
1.0 |
272 |
36,416 |
1.1 |
1,230 |
45,200 |
1.0 |
1,502 |
|
|
|
|
|
|
|
|
|
|
TOTAL GOLD |
|
|
|
157,320 |
0.7 |
3,348 |
1,155,405 |
0.6 |
22,863 |
1,312,725 |
0.6 |
26,211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
MINERAL RESERVE AND MINERAL RESOURCE
STATEMENT |
|
|
|
|
|
|
|
SILVER |
MEASURED AND INDICATED MINERAL RESOURCES (EXCLUDES PROVEN
AND PROBABLE MINERAL RESERVES)
(4,5,6,7,8,11,12,15) |
|
|
Kinross Gold Corporation's Share at December 31,
2022 |
|
|
|
|
|
|
|
|
Property |
Location |
Kinross |
Measured |
Indicated |
Measured and Indicated |
Interest |
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
(%) |
(kt) |
(g/t) |
(koz) |
(kt) |
(g/t) |
(koz) |
(kt) |
(g/t) |
(koz) |
NORTH AMERICA |
|
|
|
|
|
|
|
|
|
|
|
|
Manh Choh |
13 |
USA |
70.0 |
% |
- |
- |
- |
592 |
9.3 |
176 |
592 |
9.3 |
176 |
Round Mountain |
9 |
USA |
100.0 |
% |
- |
- |
- |
5,217 |
8.1 |
1,360 |
5,217 |
8.1 |
1,360 |
SUBTOTAL |
|
|
|
- |
- |
- |
5,809 |
8.2 |
1,536 |
5,809 |
8.2 |
1,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
SOUTH AMERICA |
|
|
|
|
|
|
|
|
|
|
|
|
La Coipa |
10 |
Chile |
100.0 |
% |
5,425 |
30.6 |
5,344 |
22,274 |
43.0 |
30,759 |
27,699 |
40.5 |
36,103 |
SUBTOTAL |
|
|
|
5,425 |
30.6 |
5,344 |
22,274 |
43.0 |
30,759 |
27,699 |
40.5 |
36,103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL SILVER |
|
|
|
5,425 |
30.6 |
5,344 |
28,083 |
35.8 |
32,295 |
33,508 |
34.9 |
37,639 |
See page 30 of this news release for details
of the footnotes referenced within the table above.
Inferred Mineral Resources
|
|
|
|
|
|
|
|
MINERAL RESERVE AND MINERAL RESOURCE
STATEMENT |
|
GOLD |
|
INFERRED MINERAL RESOURCES
(4,5,6,7,8,11,12,15) |
|
|
|
Kinross Gold Corporation's Share at December 31,
2022 |
|
|
|
Property |
Location |
Kinross |
Inferred |
|
Interest |
Tonnes |
Grade |
Ounces |
|
(%) |
(kt) |
(g/t) |
(koz) |
|
NORTH AMERICA |
|
|
|
|
|
|
|
Bald Mountain |
|
USA |
100.0 |
% |
50,064 |
0.3 |
522 |
|
Fort Knox |
|
USA |
100.0 |
% |
30,285 |
0.3 |
273 |
|
Great Bear |
|
Canada |
100.0 |
% |
20,037 |
3.6 |
2,290 |
|
Kettle River |
|
USA |
100.0 |
% |
2,790 |
6.0 |
535 |
|
Manh Choh |
|
USA |
70.0 |
% |
15 |
3.8 |
2 |
|
Round Mountain |
9 |
USA |
100.0 |
% |
105,644 |
0.5 |
1,624 |
|
SUBTOTAL |
|
|
|
208,835 |
0.8 |
5,246 |
|
|
|
|
|
|
|
|
|
SOUTH AMERICA |
|
|
|
|
|
|
|
La Coipa |
10 |
Chile |
100.0 |
% |
3,545 |
1.2 |
135 |
|
Lobo-Marte |
|
Chile |
100.0 |
% |
18,474 |
0.7 |
445 |
|
Maricunga |
|
Chile |
100.0 |
% |
174,847 |
0.6 |
3,097 |
|
Paracatu |
|
Brazil |
100.0 |
% |
15,179 |
0.3 |
156 |
|
SUBTOTAL |
|
|
|
212,045 |
0.6 |
3,833 |
|
|
|
|
|
|
|
|
|
AFRICA |
|
|
|
|
|
|
|
Tasiast |
|
Mauritania |
100.0 |
% |
18,565 |
2.4 |
1,443 |
|
SUBTOTAL |
|
|
|
18,565 |
2.4 |
1,443 |
|
|
|
|
|
|
|
|
|
TOTAL GOLD |
|
|
|
439,445 |
0.7 |
10,522 |
|
|
|
|
|
|
|
|
|
MINERAL RESERVE AND MINERAL RESOURCE
STATEMENT |
|
SILVER |
|
INFERRED MINERAL RESOURCES
(4,5,6,7,8,11,12,15) |
|
|
|
Kinross Gold Corporation's Share at December 31,
2022 |
|
|
|
Property |
Location |
Kinross |
Inferred |
|
Interest |
Tonnes |
Grade |
Ounces |
|
(%) |
(kt) |
(g/t) |
(koz) |
|
NORTH AMERICA |
|
|
|
|
|
|
|
Manh Choh |
|
USA |
70.0 |
% |
15 |
9.2 |
4 |
|
Round Mountain |
9 |
USA |
100.0 |
% |
349 |
1.2 |
13 |
|
SUBTOTAL |
|
|
|
364 |
1.5 |
17 |
|
|
|
|
|
|
|
|
|
SOUTH AMERICA |
|
|
|
|
|
|
|
La Coipa |
10 |
Chile |
100.0 |
% |
3,563 |
40.1 |
4,598 |
|
SUBTOTAL |
|
|
|
3,563 |
40.1 |
4,598 |
|
|
|
|
|
|
|
|
|
TOTAL SILVER |
|
|
|
3,927 |
36.6 |
4,615 |
|
See page 30 of this news release for
details of the footnotes referenced within the table
above.
Mineral Reserve and Mineral Resource Statement Notes
(1) Unless otherwise noted, the Company’s
mineral reserves are estimated using appropriate
cut‑off grades based on an assumed gold price of
$1,400 per ounce and a silver price of $17.50 per ounce. Mineral
reserves are estimated using appropriate process recoveries,
operating costs and mine plans that are unique to each property and
include estimated allowances for dilution and mining recovery.
Mineral reserve estimates are reported in contained units based on
Kinross’ interest and are estimated based on the following foreign
exchange rates:
Canadian Dollar to $US 1.30
Chilean Peso to $US 850.00
Brazilian Real to $US 5.00
Mauritanian Ouguiya to $US 35.00
(2) The mineral reserve estimates for Manh
Choh assume a $1,300 per ounce gold price and a $17 per ounce
silver price and are based on the 2022 Feasibility Study.
(3) The mineral reserve estimates for Lobo
Marte assume a $1,200 per ounce gold price and are based on the
2021 Feasibility Study. Lobo Marte assumed the following foreign
exchange rates based on the 2021 Feasibility Study: Chilean Peso to
$US
800.00
(4) The Company’s mineral reserve
and mineral resource estimates as at December 31, 2022 are
classified in accordance with the Canadian Institute of Mining,
Metallurgy and Petroleum (“CIM”) “CIM Definition Standards ‑ For
Mineral Resources and Mineral Reserves” adopted by the CIM Council
(as amended, the “CIM Definition Standards”) in accordance with the
requirements of National Instrument 43‑101 “Standards of Disclosure
for Mineral Projects” (“NI 43‑101”). Mineral reserve and mineral
resource estimates reflect the Company’s reasonable expectation
that all necessary permits and approvals will be obtained and
maintained.
(5) Cautionary note to U.S. investors
concerning estimates of mineral reserves and mineral resources.
These estimates have been prepared in accordance with the
requirements of Canadian securities laws, which differ from the
requirements of United States’ securities laws. The terms “mineral
reserve”, “proven mineral reserve”, “probable mineral reserve”,
“mineral resource”, “measured mineral resource”, “indicated mineral
resource” and “inferred mineral resource” are Canadian mining terms
as defined in accordance with NI 43‑101 and the CIM Definition
Standards. These definitions differ from the definitions in subpart
1300 of Regulation S‑K (“Subpart 1300”), which replaced the United
States Securities and Exchange Commission (“SEC”) Industry Guide 7
as part of the SEC’s amendments to its disclosure rules to
modernize the mineral property disclosure requirements. These
amendments became effective February 25, 2019 and registrants are
required to comply with the Subpart 1300 provisions by their first
fiscal year beginning on or after January 1, 2021. While the
definitions in Subpart 1300 are more similar to the definitions in
NI 43‑101 and the CIM Definitions Standard than were the Industry
Guide 7 provisions due to the adoption in Subpart 1300 of terms
describing mineral reserves and mineral resources that are
“substantially similar” to the corresponding terms under the CIM
Definition Standards, including the SEC now recognizing estimates
of “measured mineral resources”, “indicated mineral resources” and
“inferred mineral resources” and amending its definitions of
“proven mineral reserves” and “probable mineral reserves” to be
“substantially similar” to the corresponding CIM Definitions, the
definitions in Subpart 1300 still differ from the requirements of,
and the definitions in, NI 43‑101 and the CIM Definition Standards.
U.S. investors are cautioned that while the above terms are
“substantially similar” to CIM Definitions, there are differences
in the definitions in Subpart 1300 and the CIM Definition
Standards. Accordingly, there is no assurance any mineral reserves
or mineral resources that the Company may report as “proven mineral
reserves”, “probable mineral reserves”, “measured mineral
resources”, “indicated mineral resources” and “inferred mineral
resources” under NI 43‑101 would be the same had the Company
prepared the mineral reserve or mineral resource estimates under
the standards set forth in Subpart 1300. U.S. investors are also
cautioned that while the SEC recognizes “measured mineral
resources”, “indicated mineral resources” and “inferred mineral
resources” under Subpart 1300, investors should not assume that any
part or all of the mineralization in these categories will ever be
converted into a higher category of mineral resources or into
mineral reserves. Mineralization described using these terms has a
greater amount of uncertainty as to its existence and feasibility
than mineralization that has been characterized as reserves.
Accordingly, investors are cautioned not to assume that any
measured mineral resources, indicated mineral resources, or
inferred mineral resources that the Company reports are or will be
economically or legally mineable. Further, “inferred mineral
resources” have a greater amount of uncertainty as to their
existence and as to whether they can be mined legally or
economically. Therefore, U.S. investors are also cautioned not to
assume that all or any part of the “inferred mineral resources”
exist. Under Canadian securities laws, estimates of “inferred
mineral resources” may not form the basis of feasibility or
pre‑feasibility studies, except in rare cases. As a foreign private
issuer that files its annual report on Form 40‑F with the SEC
pursuant to the multi‑jurisdictional disclosure system, the Company
is not required to provide disclosure on its mineral properties
under the Subpart 1300 provisions and will continue to provide
disclosure under NI 43‑101 and the CIM Definition Standards. If the
Company ceases to be a foreign private issuer or loses its
eligibility to file its annual report on Form 40‑F pursuant to the
multi‑jurisdictional disclosure system, then the Company will be
subject to reporting pursuant to the Subpart 1300 provisions, which
differ from the requirements of NI 43‑101 and the CIM Definition
Standards.
For the above reasons, the mineral reserve
and mineral resource estimates and related information in this AIF
may not be comparable to similar information made public by U.S.
companies subject to the reporting and disclosure requirements
under the United States federal securities laws and the rules and
regulations thereunder.
(6) The Company’s mineral resource and mineral reserve
estimates were prepared under the supervision of and verified by
Mr. John Sims, who is a qualified person as defined by NI 43‑101.
Mr. Sims was an officer of Kinross until December 31, 2020. Mr.
Sims remains the Company’s qualified person as an external
consultant.
(7) The Company’s normal data verification
procedures have been used in collecting, compiling, interpreting
and processing the data used to estimate mineral reserves and
mineral resources. Independent data verification has not been
performed.
(8) Rounding of values to the 000s may
result in apparent
discrepancies.
(9) Round Mountain refers to the Round Mountain project, which
includes the Round Mountain deposit and the Gold Hill deposit. The
Round Mountain deposit does not contain silver and all silver
resources at Round Mountain are contained exclusively within the
Gold Hill deposit. Disclosure of gold mineral reserves and mineral
resources reflect both the Round Mountain deposit and the Gold Hill
deposit. Disclosure of silver mineral reserves and mineral
resources reflect only the Gold Hill deposit.
(10) Includes mineral resources and mineral
reserves from the Puren deposit in which the Company holds a 65%
interest; as well as mineral resources from the Catalina deposit,
in which the Company holds a 50% interest.
(11) Mineral resources are exclusive of
mineral
reserves.
(12) Unless otherwise noted, the Company’s mineral resources
are estimated using appropriate cut-off grades based on a gold
price of $1,700 per ounce and a silver price of $21.3 per ounce.
Foreign exchange rates for estimating mineral resources were the
same as for mineral reserves.
(13) The mineral resource estimates for Manh
Choh assume a $1,600 per ounce gold price and a $22 per ounce
silver price and are based on the 2022 Feasibility Study.
(14) The mineral resource estimates for Lobo
Marte assume a $1,600 per ounce gold price and are based on the
2021 Feasibility
Study.
(15) Mineral resources that are not mineral reserves do not
have to demonstrate economic viability. Mineral resources are
subject to infill drilling, permitting, mine planning, mining
dilution and recovery losses, among other things, to be converted
into mineral reserves. Due to the uncertainty associated with
inferred mineral resources, it cannot be assumed that all or any
part of an inferred mineral resource will ever be upgraded to
indicated or measured mineral resources, including as a result of
continued exploration.
Mineral Reserve and Mineral Resource Definitions
A ‘Mineral Resource’ is a
concentration or occurrence of solid material of economic interest
in or on the Earth’s crust in such form, grade or quality and
quantity that there are reasonable prospects for eventual economic
extraction. The location, quantity, grade or quality, continuity
and other geological characteristics of a Mineral Resource are
known, estimated or interpreted from specific geological evidence
and knowledge, including sampling.
An ‘Inferred Mineral Resource’
is that part of a Mineral Resource for which quantity and grade or
quality are estimated on the basis of limited geological evidence
and sampling. Geological evidence is sufficient to imply but not
verify geological and grade or quality continuity. An Inferred
Mineral Resource has a lower level of confidence than that applying
to an Indicated Mineral Resource and must not be converted to a
Mineral Reserve. It is reasonably expected that the majority of
Inferred Mineral Resources could be upgraded to Indicated Mineral
Resources with continued exploration.
An ‘Indicated Mineral Resource’
is that part of a Mineral Resource for which quantity, grade or
quality, densities, shape and physical characteristics are
estimated with sufficient confidence to allow the application of
Modifying Factors in sufficient detail to support mine planning and
evaluation of the economic viability of the deposit. Geological
evidence is derived from adequately detailed and reliable
exploration, sampling and testing and is sufficient to assume
geological and grade or quality continuity between points of
observation. An Indicated Mineral Resource has a lower level of
confidence than that applying to a Measured Mineral Resource and
may only be converted to a Probable Mineral Reserve.
A ‘Measured Mineral Resource’
is that part of a Mineral Resource for which quantity, grade or
quality, densities, shape, and physical characteristics are
estimated with confidence sufficient to allow the application of
Modifying Factors to support detailed mine planning and final
evaluation of the economic viability of the deposit. Geological
evidence is derived from detailed and reliable exploration,
sampling and testing and is sufficient to confirm geological and
grade or quality continuity between points of observation. A
Measured Mineral Resource has a higher level of confidence than
that applying to either an Indicated Mineral Resource or an
Inferred Mineral Resource. It may be converted to a Proven Mineral
Reserve or to a Probable Mineral Reserve.
A ‘Mineral Reserve’ is the
economically mineable part of a Measured and/or Indicated Mineral
Resource. It includes diluting materials and allowances for losses,
which may occur when the material is mined or extracted and is
defined by studies at Pre-Feasibility or Feasibility level as
appropriate that include application of Modifying Factors. Such
studies demonstrate that, at the time of reporting, extraction
could reasonably be justified. The reference point at which Mineral
Reserves are defined, usually the point where the ore is delivered
to the processing plant, must be stated. It is important that, in
all situations where the reference point is different, such as for
a saleable product, a clarifying statement is included to ensure
that the reader is fully informed as to what is being reported. The
public disclosure of a Mineral Reserve must be demonstrated by a
Pre-Feasibility Study or Feasibility Study.
A ‘Probable Mineral Reserve’ is
the economically mineable part of an Indicated, and in some
circumstances, a Measured Mineral Resource. The confidence in the
Modifying Factors applying to a Probable Mineral Reserve is lower
than that applying to a Proven Mineral Reserve.
A ‘Proven Mineral Reserve’ is the economically
mineable part of a Measured Mineral Resource. A Proven Mineral
Reserve implies a high degree of confidence in the Modifying
Factors.
APPENDIX A
Company Guidance
Annual attributable1 gold
equivalent production guidance
(+/- 5%) |
2023 |
2.1 million oz.14 |
2024 |
2.1 million oz. |
2025 |
2.0 million oz. |
2023 production and cost guidance
Accounting basis |
2023 Guidance14
(+/- 5%) |
2022 Actual |
Gold equivalent
basis |
|
|
Production (Au eq. oz.) |
2.1 million |
1.96 million |
Production cost of sales per Au eq. oz. sold |
$970 |
$937 |
All-in sustaining cost per Au eq. oz. sold3 |
$1,320 |
$1,271 |
2023 production and cost guidance by
country1
Country |
2023 production
guidance
(Au eq. oz.)
(+/-5%)
|
Percentage of
total forecast
production15 |
2023 guidance production
cost of sales
(per Au eq. oz. sold)
(+/-5%)
|
2022 production
cost of sales
(per Au eq. oz. sold) |
United States |
670,000 |
32% |
$1,370 |
$1,183 |
Brazil |
580,000 |
28% |
$890 |
$871 |
Chile |
240,000 |
11% |
$770 |
$575 |
Mauritania |
610,000 |
29% |
$680 |
$732 |
TOTAL |
2.1 million |
100% |
$970 |
$937 |
________________________
14 2023 gold equivalent ounce production guidance includes
approximately 8.1 million ounces of silver.
15 The percentages are calculated based on the mid-point
of country 2023 forecast production.
Material assumptions used to forecast 2023 production cost of sales
are as follows:
- a gold price of $1,800 per
ounce;
- a silver price of $20 per
ounce;
- an oil price of $90 per
barrel;
- foreign exchange rates of:
- 5.0 Brazilian reais to the U.S.
dollar;
- 850 Chilean pesos to the U.S.
dollar;
- 35 Mauritanian ouguiyas to the U.S.
dollar; and
- 1.30 Canadian dollars to the U.S.
dollar;
Taking into account existing currency and oil hedges:
- a 10% change in foreign currency
exchange rates would be expected to result in an approximate $20
impact on production cost of sales per ounce16;
- specific to the Brazilian real, a
10% change in this exchange rate would be expected to result in an
approximate $30 impact on Brazilian production cost of sales per
ounce;
- specific to the Chilean peso, a 10%
change in this exchange rate would be expected to result in an
approximate $50 impact on Chilean production cost of sales per
ounce;
- a $10 per barrel change in the
price of oil would be expected to result in an approximate $3
impact on fuel consumption costs on production cost of sales per
ounce; and
- a $100 change in the price of gold
would be expected to result in an approximate $4 impact on
production cost of sales per ounce as a result of a change in
royalties.
2023 capital expenditures guidance
Country |
Forecast 2023
sustaining
capital3, 17
(+/-5%)
(million) |
Forecast 2023
non-sustaining
capital3, 17
(+/-5%)
(million) |
Total 2023
forecast
capital
(+/-5%)
(million)
|
2022
sustaining
capital3, 17 (million)
|
2022
non-sustaining
capital3, 17
(million)
|
2022 total
capital
(million)
|
United States
(attributable) |
$275 |
$160 |
$435 |
$216 |
$93 |
$309 |
Brazil |
$155 |
$0 |
$155 |
$125 |
$0 |
$125 |
Chile |
$35 |
$40 |
$75 |
$8 |
$154 |
$162 |
Mauritania |
$45 |
$250 |
$295 |
$53 |
$114 |
$167 |
Canada18 |
$0 |
$40 |
$40 |
$0 |
$1 |
$1 |
TOTAL
(attributable) |
$510 |
$490 |
$1,000 |
$402 |
$362 |
$764 |
2023 sustaining capital includes the following forecast spending
estimates:
• |
|
Mine
development: |
$155 million
(United States); $25 million (Chile); |
• |
|
Mobile equipment: |
$45 million (United States); $60 million (Brazil); $5 million
(Chile); $15 million (Mauritania) |
• |
|
Mill facilities: |
$5 million (United States); $40 million (Brazil); $5 million
(Chile); $5 million (Mauritania) |
• |
|
Leach facilities: |
$45 million (United States) |
• |
|
Tailings facilities: |
$5 million (United States); $55 million (Brazil), $10 million
(Mauritania) |
________________________
16 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.
17 Forecast 2023 sustaining, non-sustaining and
total forecast capital expenditures are attributable and include
Kinross’ share of Manh Choh (70%) capital expenditures. Actual
results as reported for the year ended December 31, 2022, for
sustaining, non-sustaining and total capital expenditures are on a
total basis and include 100% of Manh Choh capital expenditures.
Sustaining and non-sustaining capital expenditures are non-GAAP
financial measures and are defined and reconciled on pages 24 and
25 of this news release.
18 Canada’s forecast non-sustaining capital expenditures
include approximately $40 million of study costs at the Great
Bear project.
2023 non-sustaining capital includes the following forecast
spending estimates:
• |
|
Tasiast West Branch stripping: |
$165 million |
• |
|
Manh Choh
(70%)19: |
$140 million |
• |
|
Development and growth
projects and studies: |
$60 million |
• |
|
Great Bear
studies11: |
$40 million |
• |
|
ESG projects: |
$35 million |
________________________
19 Manh Choh
non-sustaining capital at 100% is estimated to be approximately
$180 million.
APPENDIX B
Figure 1: Round Mountain – Gold Hill
map
View looking east where surface drilling on both of our future
underground development projects at Round Mountain (Phase X) and
Gold Hill, have demonstrated the high-grade nature of the systems
with impressive grades and widths. Underground drilling will bring
out the full extent of mineralization.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/cd4ec3a9-c256-4297-a93b-77e7e9f4667c
Figure 2: Kettle River – Curlew Basin
map
In 2022, 19,000 metres of underground drilling confirming
continuity and extensions to previously modeled veins and discovery
of multiple new veins.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c1076d79-7001-4090-9011-d8ad258f3c34
Figure 3: Bald Mountain
map
A total of approximately 8,150 metres of drilling was completed
over six target areas, with a primary focus on building volume for
the high-grade Top underground potential resource along with
growing the nearby deposits.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c24e4a61-6be1-4b8c-98bf-5d584cdad68e
Figure 4: Alaska-Fort Knox
map
Drilling at the Fort Knox mine proved high-grade mineralization
along the Dandelion Ore Shear extends 300 meters down-plunge from
the current life-of-mine pit shown here.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ddba1cda-3ed0-4000-bb16-6ae4c747414c
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) “2022 full-year results and 2023 guidance”,
“Return of Capital”, “CEO Commentary”, “Development Projects”,
“Operating Results”, “Brownfields exploration update”, “Greenfields
exploration update”, and “Company Guidance”, 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 or share repurchases;
identification of additional resources and reserves; the Company’s
liquidity; the schedules and budgets for the Company’s development
projects; budgets for and future prospects for exploration,
development and operation at the Company’s operations and projects,
including the Great Bear project, ramp-up at La Coipa, the Tasiast
24k project, Manh Choh and the Tasiast solar project; the Company’s
liquidity outlook; the identification of future mineral resources
at the project, as well as references to other possible events, the
future price of gold and silver, the timing and amount of estimated
future production, costs of production, operating costs; price
inflation; capital expenditures, costs and timing of the
development of projects and new deposits, estimates and the
realization of such estimates (such as mineral or gold reserves and
resources or mine life), success of exploration, development and
mining, currency fluctuations, capital requirements, project
studies, government regulation, permit applications, restarting
suspended or disrupted operations; environmental risks and
proceedings; and resolution of pending litigation. The words
“advance”, “believe”, “continue”, “estimates”, “expects”, “focus”,
“forecast”, “guidance”, “on schedule”, “on track”, “opportunity”
“outlook”, “plan”, “poised”, “potential”, “priority”, “prospect”,
or variations of or similar such words and phrases or statements
that certain actions, events or results may, could, should or will
be achieved, received or taken, or will occur or result and similar
such expressions identify forward-looking statements.
Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by
Kinross as of the date of such statements, are inherently subject
to significant business, economic and competitive uncertainties and
contingencies. The estimates, models and assumptions of Kinross
referenced, contained or incorporated by reference in this news
release, which may prove to be incorrect, include, but are not
limited to, the various assumptions set forth herein and in our
Management’s Discussion and Analysis (“MD&A”) for the year
ended December 31, 2022, and the Annual Information Form dated
March 31, 2022 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 or
lack of rainfall, in particular, the potential for further
production curtailments at Paracatu resulting from insufficient
rainfall and the operational challenges at Fort Knox and Bald
Mountain resulting from excessive rainfall, which can impact costs
and/or production) and other or related natural disasters, labour
disruptions (including but not limited to strikes or workforce
reductions), supply disruptions, power disruptions, damage to
equipment, pit wall slides or otherwise; (2) permitting,
development, operations and production from the Company’s
operations and development projects being consistent with Kinross’
current expectations including, without limitation: the maintenance
of existing permits and approvals and the timely receipt of all
permits and authorizations necessary for the operation of Tasiast;
water and power supply and continued operation of the tailings
reprocessing facility at Paracatu; permitting of the Great Bear
project (including the consultation process with Indigenous
groups), permitting and development of the Lobo-Marte project;
ramp-up of production at the La Coipa 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), and the
impact of any trade tariffs being consistent with Kinross’ current
expectations; (4) the completion of studies, including optimization
studies, improvement studies; scoping studies and preliminary
economic assessments, pre-feasibility and feasibility studies, on
the timelines currently expected and the results of those studies
being consistent with Kinross’ current expectations; (5) the
exchange rate between the Canadian dollar, Brazilian real, Chilean
peso, Mauritanian ouguiya and the U.S. dollar being approximately
consistent with current levels; (6) certain price assumptions for
gold and silver; (7) prices for diesel, natural gas, fuel oil,
electricity and other key supplies being approximately consistent
with the Company’s expectations; (8) attributable production and
cost of sales forecasts for the Company meeting expectations; (9)
the accuracy of: the current mineral reserve and mineral resource
estimates of the Company and Kinross’ analysis thereof being
consistent with expectations (including but not limited to ore
tonnage and ore grade estimates), future mineral resource and
mineral reserve estimates being consistent with preliminary work
undertaken by the Company, mine plans for the Company’s current and
future mining operations, and the Company’s internal models; (10)
labour and materials costs increasing on a basis consistent with
Kinross’ current expectations; (11) the terms and conditions of the
legal and fiscal stability agreements for Tasiast being interpreted
and applied in a manner consistent with their intent and Kinross’
expectations and without material amendment or formal dispute
(including without limitation the application of tax, customs and
duties exemptions and royalties); (12) asset impairment potential;
(13) the regulatory and legislative regime regarding mining,
electricity production and transmission (including rules related to
power tariffs) in Brazil being consistent with Kinross’ current
expectations; (14) access to capital markets, including but not
limited to maintaining our current credit ratings consistent with
the Company’s current expectations; (15) potential direct or
indirect operational impacts resulting from infectious diseases or
pandemics such as COVID-19; (16) changes in national and local
government legislation or other government actions; (17)
litigation, regulatory proceedings and audits, and the potential
ramifications thereof, being concluded in a manner consistent with
the Corporation’s expectations (including without limitation
litigation in Chile relating to the alleged damage of wetlands and
the scope of any remediation plan or other environmental
obligations arising therefrom); (18) the Company’s financial
results, cash flows and future prospects being consistent with
Company expectations in amounts sufficient to permit sustained
share repurchases and dividend payments; (19) the impacts of
detected pit wall instability at Round Mountain and Bald Mountain
being consistent with the Company’s expectations; (20) the
Company’s estimates regarding the timing of completion of the
Tasiast 24k project; and (21) that deferred payments in respect of
the Russia or Ghana divestitures will be paid and, in the event any
deferred payment is not paid, the applicable security packages will
be realized and enforceable in a manner 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 necessary licenses and permits; diminishing
quantities or grades of reserves; adverse changes in our credit
ratings; and contests over title to properties, particularly title
to undeveloped properties. In addition, there are risks and hazards
associated with the business of gold exploration, development and
mining, including environmental hazards, industrial accidents,
unusual or unexpected formations, pressures, cave-ins, flooding and
gold bullion losses (and the risk of inadequate insurance, or the
inability to obtain insurance, to cover these risks). Many of these
uncertainties and contingencies can directly or indirectly affect,
and could cause, Kinross’ actual results to differ materially from
those expressed or implied in any forward-looking statements made
by, or on behalf of, Kinross, including but not limited to
resulting in an impairment charge on goodwill and/or assets. There
can be no assurance that forward-looking statements will prove to
be accurate, as actual results and future events could differ
materially from those anticipated in such statements.
Forward-looking statements are provided for the purpose of
providing information about management’s expectations and plans
relating to the future. All of the forward-looking statements made
in this news release are qualified by this cautionary statement and
those made in our other filings with the securities regulators of
Canada and the United States including, but not limited to, the
cautionary statements made in the “Risk Analysis” section of our
MD&A for the year ended December 31, 2022, and the “Risk
Factors” set forth in the Company’s Annual Information Form dated
March 31, 2022. These factors are not intended to represent a
complete list of the factors that could affect Kinross. Kinross
disclaims any intention or obligation to update or revise any
forward-looking statements or to explain any material difference
between subsequent actual events and such forward-looking
statements, except to the extent required by applicable
law.
Key Sensitivities
Approximately 70%-80% of the Company's costs
are denominated in U.S. dollars.
A 10% change in foreign currency exchange
rates would be expected to result in an approximate $20 impact on
production cost of sales per equivalent ounce
sold20.
Specific to the Brazilian real, a 10% change
in the exchange rate would be expected to result in an approximate
$30 impact on Brazilian production cost of sales per equivalent
ounce sold.
Specific to the Chilean peso, a 10% change
in this exchange rate would be expected to result in an approximate
$50 impact on Chilean production cost of sales per ounce.
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. John Sims who is a
“qualified person” within the meaning of National Instrument
43-101.
Source: Kinross Gold Corporation
________________________
20 Refers to all of the currencies in the countries where
the Company has mining operations, fluctuating simultaneously by
10% in the same direction, either appreciating or depreciating,
taking into consideration the impact of hedging and the weighting
of each currency within our consolidated cost
structure.
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