Kinross reports strong 2024 third-quarter results Significant margin growth and record free cash flow, $350 million debt repayment First gold from Manh Choh, strong PEA results at Great Bear On track to meet annual guidance
TORONTO, Nov. 05, 2024 -- Kinross Gold Corporation (TSX: K, NYSE: KGC) (“Kinross” or the “Company”) today announced its results for the third quarter ended September 30, 20241.
This news release contains forward-looking information about expected future events and financial and operating performance of the Company. We refer to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located on pages 24 and 25 of this release. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.
2024 third-quarter highlights:
- Production of 564,106 gold equivalent ounces (Au eq. oz.).
- Production cost of sales of $976 per Au eq. oz. sold and attributable production cost of sales2 of $980 per Au eq. oz. sold.
- Attributable all-in sustaining cost2 of $1,350 per Au eq. oz. sold.
- Operating cash flow of $733.5 million.
- Attributable free cash flow2 record of $414.6 million and year-to-date attributable free cash flow2 of $905.8 million.
- Margins3 increased to $1,501 per Au eq. oz. sold, outpacing the rise in the average realized gold price.
- Reported net earnings of $355.3 million, or $0.29 per share, with adjusted net earnings2 of $298.7 million, or $0.24 per share2.
- Balance sheet strength: Kinross continued to strengthen its balance sheet, repaying $350.0 million on its term loan in Q3 2024 and an additional $100.0 million on November 1, 2024.
- Kinross’ Board of Directors declared a quarterly dividend of $0.03 per common share payable on December 12, 2024, to shareholders of record at the close of business on November 28, 2024.
- Guidance reaffirmed4: Kinross remains on track to meet its 2024 annual guidance for production, cost of sales, all-in sustaining cost and capital expenditures.
Operations:
- Tasiast had another excellent quarter with higher mill throughput rates and was again the lowest cost asset in the portfolio.
- Fort Knox delivered record grade and recovery as production commenced from Manh Choh during the quarter, resulting in a significant increase in cash flow from Fort Knox.
- Paracatu increased production compared with Q2 2024 as a result of higher grades, in accordance with planned mine sequencing, and strong recoveries.
- At Round Mountain Phase S, the heap leach pad expansion is now complete, on schedule and under budget, with solution application permits received.
Development projects and exploration:
- At Great Bear, the Company released the Preliminary Economic Assessment (PEA) on September 10, 2024. The Project is expected to produce over 500,000 ounces per year at impressive margins with an all-in sustaining cost of approximately $800 per ounce during the first 8 years. For the Advanced Exploration (AEX) program, Kinross has submitted its final Closure Plan to the Ontario Ministry of Mines for its approval and is expecting to start early works construction in the near term.
- At Round Mountain Phase X and Curlew, exploration drilling is progressing well, with results to date showing strong grades and widths.
CEO commentary:
J. Paul Rollinson, CEO, made the following comments in relation to 2024 third-quarter results:
“I am pleased to report that our portfolio of mines continued its excellent performance, and we are on track to meet our annual guidance.
“We remain heavily focused on consistent operational performance, cost control, capital discipline and delivering on planned grades to generate value for our shareholders. Our ability to hold costs in this strong gold price environment continues to benefit our margins, which grew by 14% to $1,501 per ounce sold compared with Q2 and the 6% increase in the realized gold price. We also delivered record free cash flow, which increased by 20% compared with the previous quarter.
“During the quarter, we released the PEA at Great Bear, which reaffirms our view of a high-quality, high-margin asset with robust economics, modest capital requirements and clear opportunity for resource growth. Following an invitation from the Ontario Ministry of Mines, we are pleased to have submitted our final AEX Closure Plan for approval, which is an important permitting milestone. We also completed the commissioning of our Manh Choh project resulting in a significant increase in cash flow from Fort Knox and advanced Phase X at Round Mountain.”
Summary of financial and operating results
(unaudited, in millions of U.S. dollars, except ounces, per share amounts, and per ounce amounts) 2024 2023 2024 2023
Operating Highlights(a)
Total gold equivalent ounces(b)
Produced 593,699 585,449 1,656,436 1,606,507 Sold 578,323 571,248 1,621,483 1,614,547
Attributable gold equivalent ounces(b)
Produced 564,106 585,449 1,626,843 1,606,507 Sold 550,548 571,248 1,593,708 1,614,547
Financial Highlights(a)
Metal sales $ 1,432.0 $ 1,102.4 $ 3,733.0 $ 3,124.0
| Production cost of sales | $ | 564.3 $ | 520.6 $ | 1,613.3 $ | 1,502.4 |
| Depreciation, depletion and amortization | $ | 296.2 $ | 263.9 $ | 862.7 $ | 715.1 |
| Reversal of impairment charge | $ | (74.1) $ | - $ | (74.1) $ | - |
| Operating earnings | $ | 547.7 $ | 226.2 $ | 1,039.2 $ | 607.9 |
| Net earnings attributable to common shareholders | $ | 355.3 $ | 109.7 $ | 673.2 $ | 350.9 |
| Basic earnings per share attributable to common shareholders | $ | 0.29 $ | 0.09 $ | 0.55 $ | 0.29 |
| Diluted earnings per share attributable to common shareholders | $ | 0.29 $ | 0.09 $ | 0.55 $ | 0.28 |
| Adjusted net earnings attributable to common shareholders(c) | $ | 298.7 $ | 144.6 $ | 598.3 $ | 399.8 |
| Adjusted net earnings per share(c) | $ | 0.24 $ | 0.12 $ | 0.49 $ | 0.33 |
| Net cash flow provided from operating activities | $ | 733.5 $ | 406.8 $ | 1,711.9 $ | 1,194.4 |
| Attributable adjusted operating cash flow(c) | $ | 625.0 $ | 472.1 $ | 1,529.0 $ | 1,267.1 |
| Capital expenditures(d) | $ | 278.7 $ | 283.9 $ | 794.8 $ | 787.0 |
| Attributable capital expenditures(c) | $ | 275.5 $ | 272.4 $ | 772.1 $ | 757.3 |
| Attributable free cash flow(c) | $ | 414.6 $ | 137.7 $ | 905.8 $ | 443.0 |
| Average realized gold price per ounce(e) | $ | 2,477 $ | 1,929 $ | 2,304 $ | 1,935 |
| Production cost of sales per equivalent ounce(b)sold(f) | $ | 976 $ | 911 $ | 995 $ | 931 |
| Attributable production cost of sales per equivalent ounce(b)sold(c) | $ | 980 $ | 911 $ | 997 $ | 931 |
| Attributable production cost of sales per ounce sold on a by-product basis(c) | $ | 956 $ | 860 $ | 962 $ | 876 |
| Attributable all-in sustaining cost per ounce sold on a by-product basis(c) | $ | 1,332 $ | 1,264 $ | 1,324 $ | 1,269 |
| Attributable all-in sustaining cost per equivalent ounce(b)sold(c) | $ | 1,350 $ | 1,296 $ | 1,349 $ | 1,303 |
Attributable all-in cost per ounce sold on a by-product basis(c) 1,590 $ 1,677 $ 1,561 $ 1,682 $ Attributable all-in cost per equivalent ounce(b) sold(c) $ 1,689 $ 1,579 $ 1,697 $ 1,608
(a) All measures and ratios include 100% of the results from Manh Choh, except measures and ratios denoted as “attributable.” “Attributable” includes Kinross’ 70% share of Manh Choh production, sales, cash flow, capital expenditures and costs, as applicable.
(b) “Gold equivalent ounces” include silver ounces produced and sold converted to a gold equivalent based on a ratio of the average spot market prices for the commodities for each period. The ratio for the third quarter and first nine months of 2024 was 84.06:1 and 84.34:1, respectively (third quarter and first nine months of 2023 – 81.82:1 and 82.50:1, respectively).
(c) The definition and reconciliation of these non-GAAP financial measures and ratios is included on pages 15 to 20 of this news release. Non-GAAP financial measures and ratios have no standardized meaning under International Financial Reporting Standards (“IFRS”) and therefore, may not be comparable to similar measures presented by other issuers.
(d) “Capital expenditures” is as reported as “Additions to property, plant and equipment” on the interim condensed consolidated statements of cash flows.
(e) “Average realized gold price per ounce” is defined as gold metal sales divided by total gold ounces sold.
(f) “Production cost of sales per equivalent ounce sold” is defined as production cost of sales divided by total gold equivalent ounces sold.
The following operating and financial results are based on third-quarter gold equivalent production:
Production: Kinross produced 564,106 Au eq. oz. in Q3 2024, compared with 585,449 Au eq. oz. in Q3 2023. The 4% year-over-year decrease was primarily a result of planned lower production at Paracatu due to mine sequencing and fewer ounces recovered from the heap leach pads at Round Mountain, partially offset by the commencement of production from Manh Choh.
Average realized gold price5: The average realized gold price in Q3 2024 was $2,477 per ounce, compared with $1,929 per ounce in Q3 2023.
Revenue: During the third quarter, revenue increased to $1,432.0 million, compared with $1,102.4 million during Q3 2023.
Production cost of sales: Production cost of sales per Au eq. oz. sold was $976 for the quarter, compared with $911 in Q3 2023.
Attributable production cost of sales per Au oz. sold on a by-product basis2 was $956 in Q3 2024, compared with $860 in Q3 2023, based on attributable gold sales of 541,829 ounces and attributable silver sales of 732,857 ounces.
Margins3: Kinross’ margin per Au eq. oz. sold increased by 47% to $1,501 for Q3 2024, compared with the Q3 2023 margin of $1,018, outpacing the 28% increase in average realized gold price5.
Attributable all-in sustaining cost2: Attributable all-in sustaining cost per Au eq. oz. sold was $1,350 in Q3 2024, compared with $1,296 in Q3 2023.
In Q3 2024, attributable all-in sustaining cost per Au oz. sold on a by-product basis was $1,332, compared with $1,264 in Q3 2023.
Operating cash flow: Operating cash flow was $733.5 million for Q3 2024, compared with $406.8 million for Q3 2023.
Attributable adjusted operating cash flow2 for Q3 2024 was $625.0 million, compared with $472.1 million for Q3 2023.
Attributable free cash flow2: Attributable free cash flow tripled to a record $414.6 million in Q3 2024, compared with $137.7 million in Q3 2023. Year-to-date attributable free cash flow was $905.8 million.
Earnings: Reported net earnings more than tripled to $355.3 million for Q3 2024, or $0.29 per share, compared with reported net earnings of $109.7 million, or $0.09 per share, for Q3 2023.
Adjusted net earnings2 increased to $298.7 million, or $0.24 per share2, for Q3 2024, compared with $144.6 million, or $0.12 per share2, for Q3 2023.
Attributable capital expenditures2: Attributable capital expenditures were $275.5 million for Q3 2024, in line with $272.4 million for Q3 2023.
Balance sheet
The Company continued to strengthen its balance sheet by repaying $350.0 million on its term loan in the quarter and an additional $100.0 million following the quarter. As of November 5, 2024, $650.0 million has been repaid on the $1.0 billion term loan in 2024.
Kinross had cash and cash equivalents of $472.8 million as of September 30, 2024, compared with $352.4 million at December 31, 2023.
The Company has additional available credit6 of $1.65 billion and total liquidity7 of approximately $2.1 billion.
On October 28, 2024, the Company amended its $1,500.0 million revolving credit facility to extend the maturity by two years to October 2029, restoring a fiveyear term.
Dividend
As part of its quarterly dividend program, the Board of Directors declared a dividend of $0.03 per common share payable on December 12, 2024, to shareholders of record as of November 28, 2024.
Operating results
Mine-by-mine summaries for 2024 third-quarter operating results may be found on pages 9 and 13 of this news release. Highlights include the following:
Tasiast delivered another strong quarter, with production increasing compared with Q2 2024 mainly due to record mill throughput, and cost of sales per ounce sold increased due to higher royalty costs relating to higher gold prices. Production decreased compared with Q3 2023 mainly as a result of a decrease in mill grades, and cost of sales per ounce sold was slightly higher due to the lower production and higher royalty costs.
At Paracatu, production increased quarter-over-quarter mainly due to higher grades and recoveries as a result of the addition of Knelson gravity concentrators to the processing circuit, and cost of sales per ounce sold decreased mainly due to the higher production. Production was lower compared with Q3 2023 mainly due to the timing of ounces processed through the mill and lower grades according to the planned mine sequence. Cost of sales per ounce sold was higher mainly due to the planned decrease in grades and production compared with Q3 2023.
At La Coipa, production was lower quarter-over-quarter mainly due to lower mill throughput and recoveries. Cost of sales per ounce sold was higher quarterover-quarter mainly due to the lower production. Year-over-year, production decreased as a result of lower mill throughput, and cost of sales per ounce sold increased primarily due to the lower production and higher mill maintenance costs.
At La Coipa, mill throughput is being managed while optimization initiatives are implemented. Full-year production guidance at La Coipa remains on track.
At Fort Knox, production increased significantly quarter-over-quarter and year-over-year due to the commencement of production from higher-grade Manh Choh ore. Fort Knox realized record grade and recovery, resulting in a significant increase in cash flow. Cost of sales per ounce sold decreased in both comparable periods mainly due to the increase in production.
Construction and commissioning of the Fort Knox mill modifications have been completed.
At Round Mountain, production decreased quarter-over-quarter and year-over-year mainly due to fewer ounces recovered from the heap leach pads. Cost of sales per ounce sold was in line quarter-over-quarter and was higher year-over-year mainly due to the decrease in production and higher cost ounces produced from the heap leach pads.
At Round Mountain Phase S, mining remains on track. Construction of the heap leach pad expansion is complete, on schedule and under budget, with solution application permits received.
At Bald Mountain, production was lower quarter-over-quarter due to the timing of ounces produced from the heap leach pads. Production increased year-overyear due to higher grades, partially offset by the timing of ounces recovered from the heap leach pads. Cost of sales per ounce sold was higher in both comparable periods as a result of higher cost ounces produced from the heap leach pads.
Development Projects and Exploration
Great Bear
Kinross continues to make excellent progress at the Great Bear project.
Kinross released the PEA for Great Bear on September 10, 2024. The PEA provided visibility into the potential production scale, construction capital, all-in sustaining cost and margins for both the open pit and the underground. The PEA represents a point in time estimate and is only a window into the long-term potential of the asset given the indications of continued mineralization at depth.
The PEA supports the Company’s acquisition thesis of a top-tier, high-margin operation in a stable jurisdiction with strong infrastructure. Based on mineral resources drilled to date, the PEA outlines a high-grade combined open pit and underground mine with an initial planned mine life of approximately 12 years and production cost of sales of $594 per ounce. The Project is expected to produce over 500,000 ounces per year at an all-in sustaining cost of approximately $800 per ounce during the first eight years through a conventional, modest capital 10,000 tonne per day mill8.
Kinross also released an updated mineral resource estimate for the project, increasing the Inferred resource estimate by 568 koz. to 3.9 Moz., which is in addition to the Measured & Indicated resource estimate of 2.7 Moz. The mineral resource estimate and PEA for the Great Bear project are available here.
For the AEX program, permitting, detailed engineering, execution planning, and procurement continue to advance. Kinross has submitted its final Closure Plan to the Ontario Ministry of Mines and approval is expected shortly. This is an important permit milestone that is required for all AEX construction activities. The Closure Plan will allow for the immediate commencement of early works construction on the site including laydown areas, temporary offices, and earthworks.
The Company is focused on progressing the AEX program to begin drilling underground to continue unlocking the full potential of the asset, with construction of the underground decline planned to commence in 2025.
For the Main Project, Kinross expects to advance engineering definition and execution planning following the selection of design partners later this year.
Following the receipt of the Tailored Impact Statement Guidelines earlier this year, the Company continues to work with the Impact Assessment Agency of Canada on advancing its Impact Statement, which is planned to be submitted later in 2025.
Kinross will also be working closely with the Ontario authorities on obtaining provincial permits, similar to the AEX permits, for the Main Project.
In 2025, Kinross intends to conduct regional exploration with the goal of identifying new open pit and underground deposits.
Round Mountain Phase X
Infill drilling on the lower zone of the primary Phase X exploration target commenced in Q3, as planned, alongside continued opportunity drilling outside the primary Phase X exploration target.
The drilling in Q3 has demonstrated strong grades and widths from within the primary Phase X target:
- DX-0071: 36.6m @ 10.9 g/t Au Eq.
- DX-0078: 32.0m @ 7.7 g/t Au Eq.
- DX-0070: 20.5m @ 10.5 g/t Au Eq.
- DX-0074: 27.7m @ 7.7 g/t Au Eq.
- DX-0075: 25.3m @ 5.0 g/t Au Eq.
- DX-0072: 20.4m @ 5.8 g/t Au Eq.
Drilling outside of the primary exploration target also continues to indicate strong grades and widths.
These results continue to support the Company’s hypothesis of potential for higher-margin mining from a bulk underground operation.
See Appendix A for a Phase X long section.
Curlew Basin exploration
At Curlew, drilling progressed in the third quarter with three drill rigs active underground testing the Stealth (ST) and EVP Zones. Highlights from holes drilled in the quarter include (true widths):
- Hole 1313 returned 9.73m @ 13.00 g/t Au from the ST Zone
- Hole 1458 returned 13.20m @ 5.20 g/t Au from the ST Zone
- Hole 1446 returned 11.20m @ 9.50 g/t Au from the EVP Zone
Drilling this year expanded mineralization in zones with favourable grade and width to support higher-margin production.
See Appendix B for a Curlew Basin long section.
Chile
Kinross is progressing baseline studies at Lobo-Marte and continues to engage and build relationships with communities and government stakeholders.
Lobo-Marte continues to be a potential large, low-cost mine upon the conclusion of mining at La Coipa where Kinross remains focused on potential opportunities to extend mine life.
Company Guidance4 The following section of the news release represents forward-looking information and users are cautioned that actual results may vary. We refer to the risks and assumptions contained in the Cautionary Statement on Forward-Looking Information on pages 24 and 25.
Kinross is on track to meet its 2024 production guidance of 2.1 million Au eq. oz. (+/- 5%), as well as its production cost of sales, all-in sustaining cost and capital expenditure guidance ranges.
Kinross’ annual production is expected to remain stable in 2025 and 2026 at approximately 2.0 million Au eq. oz. per year.
Sustainability
In the third quarter, Kinross continued to advance Sustainability initiatives. At Tasiast, and in partnership with local institutions, 90 apprentices received certificates of recognition for training aimed at equipping young Mauritanians with in-demand technical skills in growing sectors such as renewable energy, electrical, mechanical, refrigeration and carpentry. Since the program’s inception in 2018, nearly 350 young people have completed their training.
Bald Mountain received the Nevada Mining Association’s award for ‘Leadership in Concurrent Reclamation.’ The award recognizes the successful reclamation of a former heap leach facility that was regraded and revegetated in 2020, and today provides a natural ecosystem for livestock and wildlife.
Committed to advancing career opportunities for women in mining, Kinross nominated seven mentors and three mentees to the 2024 International Women in Mining Resources Mentoring Program. The Company also recently welcomed 30 new participants to the internally developed Women at Kinross program, a six -month learning and coaching initiative now in its fourth cohort.
Conference call details
In connection with this news release, Kinross will hold a conference call and audio webcast on Wednesday, November 6, 2024, at 8:00 a.m. ET to discuss the results, followed by a question-and-answer session. To access the call, please dial:
Canada & US toll-free – 1 (888) 596-4144; Passcode: 9135525 Outside of Canada & US – 1 (646) 968-2525; Passcode: 9135525
Replay (available up to 14 days after the call):
Canada & US toll-free – 1 (800) 770-2030; Passcode: 9135525 Outside of Canada & US – 1 (647) 362-9199; Passcode: 9135525
You may also access the conference call on a listen-only basis via webcast at our website www.kinross.com. The audio webcast will be archived on www.kinross.com.
About Kinross Gold Corporation
Kinross is a Canadian-based global senior gold mining company with operations and projects in the United States, Brazil, Mauritania, Chile and Canada. Our focus is on delivering value based on the core principles of responsible mining, operational excellence, disciplined growth, and balance sheet strength. Kinross maintains listings on the Toronto Stock Exchange (symbol: K) and the New York Stock Exchange (symbol: KGC).
Media Contact
Victoria Barrington Senior Director, Corporate Communications phone: 647-788-4153 [email protected]
Investor Relations Contact
David Shaver Senior Vice-President phone: 416-365-2761 [email protected]
Review of operations
Three months ended September 30, (unaudited) Gold equivalent ounces
Production cost of Produced Sold Production cost of sales sales/equivalent ounce ($millions)
sold
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
| Tasiast | 162,155 | 171,140 | 158,521 | 162,823 | 109.0 | 108.5 | 688 | 666 |
| Paracatu | 146,174 | 172,482 | 145,235 | 167,105 | 146.1 | 141.2 | 1,006 | 845 |
| La Coipa | 50,502 | 65,975 | 48,594 | 65,856 | 52.2 | 41.4 | 1,074 | 629 |
| Fort Knox | 71,611 | 71,616 | 82.3 | 1,149 | ||||
| 149,093 | 140,121 | 134.2 | 958 | |||||
| Round Mountain | 42,279 | 63,648 | 41,436 | 61,931 | 63.8 | 93.1 | 1,540 | 1,503 |
| Bald Mountain | 43,496 | 40,593 | 44,410 | 41,300 | 58.9 | 53.9 | 1,326 | 1,305 |
| United States Total | 234,868 | 175,852 | 225,967 | 174,847 | 256.9 | 229.3 | 1,137 | 1,311 |
| 593,699 | 578,323 | 564.3 | 976 | 911 | ||||
| Operations Total(a) | 585,449 | 571,248 | 520.6 |
Less: Manh Choh non-controlling
| (29,593) | (27,775) | (24.9) | |
| interest (30%) | - | - - | |
| Attributable Total(a) | 564,106 585,449 | 550,548 571,248 | 539.4 520.6 980 911 |
Nine months ended September 30, Gold equivalent ounces (unaudited)
Production cost of Production cost of sales Produced Sold sales/equivalent ounce ($millions)
sold
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
| Tasiast | 482,983 | 460,029 | 465,573 | 443,866 | 311.0 | 296.4 | 668 | 668 |
| Paracatu | 404,675 | 460,059 | 403,519 | 459,338 | 417.0 | 394.4 | 1,033 | 859 |
| La Coipa | 187,598 | 186,315 | 183,225 | 195,014 | 163.1 | 129.9 | 890 | 666 |
| Fort Knox | 272,357 | 206,436 | 266,890 | 206,226 | 311.5 | 239.2 | 1,167 | 1,160 |
| Round Mountain | 172,418 | 179,926 | 169,654 | 177,569 | 248.3 | 275.1 | 1,464 | 1,549 |
| 136,405 | 131,469 | 161.6 | 1,229 | 1,273 | ||||
| Bald Mountain | 113,742 | 130,764 | 166.4 | |||||
| United States Total | 581,180 | 500,104 | 568,013 | 514,559 | 721.4 | 680.7 | 1,270 | 1,323 |
| Operations Total(a) | 1,656,436 | 1,606,507 | 1,621,483 | 1,614,547 | 1,613.3 | 1,502.4 | 995 | 931 |
Less: Manh Choh non-controlling interest (30%) (29,593) - (27,775) - (24.9) - Attributable Total(a) 1,626,843 1,606,507 1,593,708 1,614,547 1,588.4 1,502.4 997 931
(a) Totals include immaterial sales and related costs from Maricunga for each period presented.
Interim condensed consolidated balance sheets
(unaudited, expressed in millions of U.S. dollars, except share amounts)
As at
September 30, December 31, 2024 2023
Assets
Current assets
| Cash and cash equivalents | $ 472.8 $ | 352.4 |
| Restricted cash | 10.8 | 9.8 |
| Accounts receivable and other assets | 307.6 | 268.7 |
| Current income tax recoverable | 1.1 | 3.4 |
| Inventories | 1,232.2 | 1,153.0 |
| Unrealized fair value of derivative assets | 5.6 | 15.0 |
2,030.1 1,802.3 Non-current assets
| Property, plant and equipment | 7,943.1 | 7,963.2 |
| Long-term investments | 64.7 | 54.7 |
| Other long-term assets | 707.9 | 710.6 |
| Deferred tax assets | 12.6 | 12.5 |
| Total assets | $ 10,758.4 $ | 10,543.3 |
Liabilities
Current liabilities
| Accounts payable and accrued liabilities | $ 548.1 $ | 531.5 |
| Current income tax payable | 205.8 | 92.9 |
| Current portion of long-term debt and credit facilities | 449.7 | - |
Current portion of provisions 51.1 48.8 Other current liabilities 7.9 12.3 1,262.6 685.5 Non-current liabilities
| Long-term debt and credit facilities | 1,235.0 | 2,232.6 |
| Provisions | 903.8 | 889.9 |
| Long-term lease liabilities | 15.0 | 17.5 |
| Other long-term liabilities | 93.8 | 82.4 |
| Deferred tax liabilities | 455.4 | 449.7 |
| Total liabilities | $ 3,965.6 $ | 4,357.6 |
Equity
Common shareholders' equity Common share capital $ 4,486.8 $ 4,481.6 Contributed surplus 10,641.4 10,646.0 Accumulated deficit (8,982.6)
(8,420.0)
| Accumulated other comprehensive loss | (62.3) | (61.3) | ||
| Total common shareholders' equity | 6,645.9 | 6,083.7 | ||
| Non-controlling interests | 146.9 | 102.0 | ||
| Total equity | $ | 6,792.8 | $ | 6,185.7 |
| Total liabilities and equity | $ | 10,758.4 | $ | 10,543.3 |
Common shares
Authorized Unlimited Unlimited Issued and outstanding 1,229,048,190 1,227,837,974
Interim condensed consolidated statements of operations
(unaudited, expressed in millions of U.S. dollars, except per share amounts)
Three months ended Nine months ended
September 30, September 30, September 30, September 30, 2024 2023 2024 2023
Revenue
Metal sales $ 1,432.0 $ 1,102.4 $ 3,733.0 $ 3,124.0
Cost of sales
| Production cost of sales | 564.3 | 520.6 | 1,613.3 | 1,502.4 |
| Depreciation, depletion and amortization | 296.2 | 263.9 | 862.7 | 715.1 |
| Reversal of impairment charge | (74.1) | - | (74.1) | - |
| Total cost of sales | 786.4 | 784.5 | 2,401.9 | 2,217.5 |
| Gross profit | 645.6 | 317.9 | 1,331.1 | 906.5 |
| Other operating expense | 21.1 | 14.9 | 50.6 | 82.1 |
| Exploration and business development | 49.6 | 51.0 | 147.0 | 134.3 |
| General and administrative | 27.2 | 25.8 | 94.3 | 82.2 |
| Operating earnings | 547.7 | 226.2 | 1,039.2 | 607.9 |
| Other expense - net | (6.0) | (0.3) | (0.2) | (6.3) |
| Finance income | 6.3 | 11.3 | 14.7 | 32.2 |
| Finance expense | (23.5) | (25.9) | (66.8) | (79.4) |
| Earnings before tax | 524.5 | 211.3 | 986.9 | 554.4 |
| Income tax expense - net | (134.2) | (102.4) | (281.1) | (204.2) |
| Net earnings | $ 390.3 $ | 108.9 $ | 705.8 $ | 350.2 |
Net earnings (loss) attributable to:
Non-controlling interests $ 35.0 $ (0.8) $ 32.6 $ (0.7) Common shareholders $ 355.3 $ 109.7 $ 673.2 $ 350.9
Earnings per share attributable to common shareholders
Basic $ 0.29 $ 0.09 $ 0.55 $ 0.29 Diluted $ 0.29 $ 0.09 $ 0.55 $ 0.28
Interim condensed consolidated statements of cash flows
(unaudited, expressed in millions of U.S. dollars)
Three months ended Nine months ended
September 30, September 30, September 30, September 30, 2024 2023 2024 2023
Net inflow (outflow) of cash related to the following activities:
Operating:
Net earnings $ 390.3 $ 108.9 $ 705.8 $ 350.2 Adjustments to reconcile net earnings to net cash provided from operating activities:
Depreciation, depletion and amortization 296.2 263.9 862.7 715.1
| Reversal of impairment charge | (74.1) | - | (74.1) | - |
| Share-based compensation expense | 1.3 | 2.9 | 6.6 | 4.3 |
| Finance expense | 23.5 | 25.9 | 66.8 | 79.4 |
| Deferred tax expense | 21.6 | 74.1 | 9.0 | 92.8 |
| Foreign exchange losses and other | 8.9 | 13.0 | 16.8 | 34.8 |
| Reclamation recovery | - | (18.1) | - | (14.1) |
Changes in operating assets and liabilities:
| Accounts receivable and other assets | (24.9) | (21.0) | 26.4 | 66.6 |
| Inventories | (11.5) | (10.1) | (3.1) | (93.2) |
| Accounts payable and accrued liabilities | 121.4 | (15.0) | 245.7 | 70.4 |
| Cash flow provided from operating activities | 752.7 | 424.5 | 1,862.6 | 1,306.3 |
| Income taxes paid | (19.2) | (17.7) | (150.7) | (111.9) |
| Net cash flow provided from operating activities | 733.5 | 406.8 | 1,711.9 | 1,194.4 |
Investing:
| Additions to property, plant and equipment | (278.7) | (283.9) | (794.8) | (787.0) |
| Interest paid capitalized to property, plant and equipment | (33.0) | (43.0) | (84.9) | (89.8) |
| Net (additions) disposals to long-term investments and other assets | (11.4) | (2.5) | (30.2) | 2.4 |
| (Increase) decrease in restricted cash - net | (1.3) | (0.2) | (1.0) | 1.2 |
| Interest received and other - net | 6.0 | 6.6 | 13.7 | 13.5 |
| Net cash flow of continuing operations used in investing activities | (318.4) | (323.0) | (897.2) | (859.7) |
Net cash flow of discontinued operations provided from investing
- - - 45.0
activities Financing:
| Repayment of debt | (350.0) | (550.0) | (550.0) | (770.0) |
| Proceeds from issuance or drawdown of debt | - | 488.1 | - | 588.1 |
| Interest paid | (17.1) | (26.5) | (35.6) | (53.0) |
| Payment of lease liabilities | (3.3) | (4.4) | (10.1) | (25.5) |
| Funding from non-controlling interest | 4.1 | 27.0 | 31.3 | 38.8 |
| Distributions to non-controlling interest | (19.5) | - | (19.5) | - |
| Dividends paid to common shareholders | (36.9) | (36.8) | (110.6) | (110.5) |
| Other - net | 0.1 | 6.3 | 0.4 | (1.2) |
| Net cash flow used in financing activities | (422.6) | (96.3) | (694.1) | (333.3) |
| Effect of exchange rate changes on cash and cash equivalents | 0.3 | (1.0) | (0.2) | 0.4 |
| (Decrease) increase in cash and cash equivalents | (7.2) | (13.5) | 120.4 | 46.8 |
| Cash and cash equivalents, beginning of period | 480.0 | 478.4 | 352.4 | 418.1 |
| Cash and cash equivalents, end of period | $ 472.8 $ | 464.9 $ | 472.8 $ | 464.9 |
Operating Summary
| Mine | Period | Tonnes Ore Mined | Ore Processed (Milled) | Ore Processed (Heap Leach) | Grade (Mill) | Grade (Heap Leach) | Recovery (a)(b) | Gold Eq Production (c) | Gold Eq Sales(c) | Production cost of sales | Production cost of sales/oz(d) | Cap Ex - sustaining (e) | Total Cap Ex (e) | DD&A | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ('000 tonnes) | ('000 tonnes) | ('000 tonnes) | (g/t) | (g/t) | (%) | (ounces) | (ounces) | ($ millions) | ($/ounce) | ($ millions) | ($ millions) | ($ millions) | |||
| West Africa | Tasiast | Q3 2024 | 1,748 | 2,203 | - | 2.46 | - | 91% | 162,155 | 158,521 | $ 109.0 | $ 688 | $ 13.5 | $ 83.8 | $ 94.3 |
| Q2 2024 Q1 2024 Q4 2023 Q3 2023 | 1,985 2,044 2,937 3,486 | 2,161 2,073 2,056 1,796 | - - - - | 2.70 2.46 3.04 3.10 | - - - - | 92% 91% 93% 92% | 161,629 159,199 160,764 171,140 | 156,038 151,014 171,199 162,823 | $ 102.3 $ 99.7 $ 110.4 $ 108.5 | $ 656 $ 660 $ 645 $ 666 | $ 7.0 $ 10.1 $ 9.7 $ 12.2 | $ 75.2 $ 79.5 $ 85.2 $ 77.3 | $ 84.0 $ 77.9 $ 70.6 $ 69.0 | ||
| Paracatu | Q3 2024 | 13,127 | 14,551 | - | 0.38 | - | 81% | 146,174 | 145,235 | $ 146.1 | $ 1,006 | $ 41.2 | $ 41.2 | $ 52.6 | |
| Q2 2024 Q1 2024 Q4 2023 Q3 2023 | 14,094 14,078 16,865 14,725 | 15,053 15,609 15,279 14,669 | - - - - | 0.35 0.31 0.35 0.41 | - - - - | 80% 79% 79% 79% | 130,228 128,273 127,940 172,482 | 130,174 128,110 132,886 167,105 | $ 135.2 $ 135.7 $ 144.2 $ 141.2 | $ 1,039 $ 1,059 $ 1,085 $ 845 | $ 44.6 $ 19.6 $ 41.6 $ 58.4 | $ 44.6 $ 19.6 $ 41.6 $ 58.4 | $ 45.7 $ 46.7 $ 43.3 $ 53.1 | ||
| Q3 2024 | 786 | 809 | - | 2.17 | - | 80% | 50,502 | 48,594 | $ 52.2 | $ 1,074 | $ 21.3 | $ 24.9 | $ 33.5 |
Q2 2024 690 882 - 1.97 - 84% 65,851 63,506 $ 58.8 $ 926 $ 10.7 $ 10.7 $ 45.8 Q1
La Coipa(f)
2024 1,035 827 - 2.09 - 87% 71,245 71,125 $ 52.1 $ 733 $ 7.2 $ 7.2 $ 50.0 Q4 2023 1,591 1,188 - 1.92 - 78% 73,823 73,477 $ 52.9 $ 720 $ 7.0 $ 10.9 $ 54.8 Q3 2023 1,137 1,017 - 1.69 - 81% 65,975 65,856 $ 41.4 $ 629 $ 7.5 $ 15.2 $ 48.3
| Fort Knox (100%)(g) | Q3 2024 | 7,612 | 1,105 | 5,822 | 4.03 | 0.19 | 91% | 149,093 | 140,121 | $ 134.2 | $ 958 | $ 56.6 | $ 70.4 | $ 37.2 |
| Q2 2024 Q1 2024 Q4 2023 Q3 2023 | 8,331 10,037 11,018 6,667 | 2,003 1,850 2,173 1,912 | 6,385 8,778 9,930 5,961 | 0.85 0.67 0.69 0.81 | 0.22 0.24 0.22 0.21 | 81% 76% 78% 78% | 69,914 53,350 84,215 71,611 | 70,477 56,292 81,306 71,616 | $ 94.8 $ 82.5 $ 104.3 $ 82.3 | $ 1,345 $ 1,466 $ 1,283 $ 1,149 | $ 47.6 $ 37.7 $ 50.6 $ 52.1 | $ 89.2 $ 78.6 $ 114.3 $ 96.0 | $ 25.9 $ 20.5 $ 31.5 $ 24.6 | |
| Fort Knox (attributable) (g) | Q3 2024 | 7,509 | 991 | 5,822 | 3.44 | 0.19 | 91% | 119,500 | 112,346 | $ 109.3 | $ 973 | $ 55.4 | $ 67.2 | $ 31.5 |
| Q2 2024 Q1 2024 Q4 2023 Q3 2023 | 8,249 10,009 11,014 6,667 | 2,003 1,850 2,173 1,912 | 6,385 8,778 9,930 5,961 | 0.85 0.67 0.69 0.81 | 0.22 0.24 0.22 0.21 | 81% 76% 78% 78% | 69,914 53,350 84,215 71,611 | 70,477 56,292 81,306 71,616 | $ 94.8 $ 82.5 $ 104.3 $ 82.3 | $ 1,345 $ 1,466 $ 1,283 $ 1,149 | $ 47.6 $ 37.7 $ 50.6 $ 52.1 | $ 79.5 $ 68.8 $ 100.7 $ 84.5 | $ 25.9 $ 20.5 $ 31.5 $ 24.6 | |
| Round Mountain | Q3 2024 | 2,958 | 790 | 1,032 | 0.74 | 0.29 | 80% | 42,279 | 41,436 | $ 63.8 | $ 1,540 | $ 5.2 | $ 35.9 | $ 37.4 |
| Q2 2024 Q1 2024 Q4 2023 Q3 2023 | 2,956 4,246 4,666 8,474 | 806 960 884 911 | 1,541 3,257 2,729 7,644 | 1.11 1.32 0.91 0.75 | 0.35 0.37 0.48 0.38 | 73% 73% 68% 75% | 61,787 68,352 55,764 63,648 | 60,049 68,169 56,495 61,931 | $ 93.9 $ 90.6 $ 82.6 $ 93.1 | $ 1,564 $ 1,329 $ 1,462 $ 1,503 | $ 2.1 $ 3.7 $ 4.6 $ 7.7 | $ 37.2 $ 19.3 $ 4.8 $ 7.8 | $ 65.9 $ 47.3 $ 45.0 $ 44.1 | |
| Bald Mountain | Q3 2024 | 6,384 | - | 6,384 | - | 0.53 | nm | 43,496 | 44,410 | $ 58.9 | $ 1,326 | $ 5.0 | $ 6.1 | $ 39.7 |
| Q2 2024 Q1 2024 Q4 2023 Q3 2023 | 2,906 1,480 3,894 7,412 | - - - - | 2,906 1,480 3,918 7,412 | - - - - | 0.47 0.42 0.47 0.39 | nm nm nm nm | 45,929 46,980 44,007 40,593 | 39,818 47,241 49,375 41,300 | $ 50.6 $ 52.1 $ 57.1 $ 53.9 | $ 1,271 $ 1,103 $ 1,156 $ 1,305 | $ 4.4 $ 32.4 $ 36.3 $ 20.6 | $ 4.6 $ 32.4 $ 38.8 $ 24.9 | $ 27.0 $ 27.0 $ 25.0 $ 23.3 |
Americas
(a) Due to the nature of heap leach operations, recovery rates at Bald Mountain cannot be accurately measured on a quarterly basis. Recovery rates at Fort Knox and Round Mountain represent mill recovery only.
(b) "nm" means not meaningful.
(c) Gold equivalent ounces include silver ounces produced and sold converted to a gold equivalent based on the ratio of the average spot market prices for the commodities for each period. The ratios for the quarters presented are as
follows: Q3 2024: 84.06:1; Q2 2024: 81.06:1; Q1 2024: 88.70:1; Q4 2023: 85.00:1; Q3 2023: 81.82:1.
(d) “Production cost of sales per equivalent ounce sold” is defined as production cost of sales divided by total gold equivalent ounces sold.
(e) "Total Cap Ex" is as reported as “Additions to property, plant and equipment” on the interim condensed consolidated statements of cash flows. "Cap Ex - sustaining" is a non-GAAP financial measure. The definition and reconciliation of this non-GAAP financial measure is included on pages 19 and 20 of this news release
(f) La Coipa silver grade and recovery were as follows: Q3 2024: 49.13 g/t, 58%; Q2 2024: 65.02 g/t, 51%; Q1 2024: 87.20 g/t, 58%; Q4 2023: 96.24 g/t, 44%; Q3 2023: 106.70 g/t, 63%.
(g) The Fort Knox segment is composed of Fort Knox and Manh Choh, and comparative results shown are presented in accordance with the current year’s presentation. Manh Choh tonnes of ore processed and grade were 379,786
and 9.13, respectively, for Q3 2024 and nil for all other periods presented as production commenced in July 2024. The attributable results for Fort Knox include 100% of Fort Knox and 70% of Manh Choh.
Reconciliation of non-GAAP financial measures and ratios
The Company has included certain non-GAAP financial measures and ratios in this document. These financial measures and ratios are not defined under IFRS and should not be considered in isolation. The Company believes that these financial measures and ratios, together with financial measures and ratios determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. The inclusion of these financial measures and ratios is meant to provide additional information and should not be used as a substitute for performance measures prepared in accordance with IFRS. These financial measures and ratios are not necessarily standard and therefore may not be comparable to other issuers.
Adjusted Net Earnings Attributable to Common Shareholders and Adjusted Net Earnings per Share
Adjusted net earnings attributable to common shareholders and adjusted net earnings per share are non-GAAP financial measures and ratios which determine the performance of the Company, excluding certain impacts which the Company believes are not reflective of the Company’s underlying performance for the reporting period, such as the impact of foreign exchange gains and losses, reassessment of prior year taxes and/or taxes otherwise not related to the current period, impairment charges (reversals), gains and losses and other one-time costs related to acquisitions, dispositions and other transactions, and non-hedge derivative gains and losses. Although some of the items are recurring, the Company believes that they are not reflective of the underlying operating performance of its current business and are not necessarily indicative of future operating results. Management believes that these measures and ratios, which are used internally to assess performance and in planning and forecasting future operating results, provide investors with the ability to better evaluate underlying performance, particularly since the excluded items are typically not included in public guidance. However, adjusted net earnings and adjusted net earnings per share measures and ratios are not necessarily indicative of net earnings and earnings per share measures and ratios as determined under IFRS.
The following table provides a reconciliation of net earnings to adjusted net earnings for the periods presented:
Three months ended Nine months ended
(unaudited, expressed in millions of U.S. dollars, except per share amounts) September 30, September 30, 2024 2023 2024 2023
Net earnings attributable to common shareholders - as reported $ 355.3 $ 109.7 $ 673.2 $ 350.9 Adjusting items:
Foreign exchange losses (gains) 4.8 (7.1) (5.1) (0.8) Foreign exchange losses on translation of tax basis and foreign exchange on
| deferred income taxes within income tax expense | 7.7 | 36.9 | 32.0 | 5.2 |
| Taxes in respect of prior periods | (0.2) | 5.2 | (22.9) | 33.8 |
| Reversal of impairment charge | (74.1) | - | (74.1) | - |
| Insurance recoveries | - | (0.5) | (22.9) | (1.2) |
| Other(a) | 0.8 | (1.4) | 16.2 | 13.7 |
| Tax effects of the above adjustments | 4.4 | 1.8 | 1.9 | (1.8) |
| (56.6) | (74.9) | 48.9 |
34.9
| Adjusted net earnings attributable to common shareholders | $ | 298.7 $ | 144.6 $ | 598.3 $ | 399.8 |
| Weighted average number of common shares outstanding - Basic | 1,229.0 | 1,227.6 | 1,228.8 | 1,226.7 | |
| Adjusted net earnings per share | $ | 0.24 $ | 0.12 $ | 0.49 $ | 0.33 |
| Basic earnings per share attributable to common shareholders - as reported | $ | 0.29 $ | 0.09 $ | 0.55 $ | 0.29 |
(a) Other includes various impacts, such as one-time costs at sites, restructuring costs, legal settlements and gains and losses on hedges and the sale of assets, which the Company believes are not reflective of the Company’s underlying performance for the reporting period.
Attributable Free Cash Flow
Attributable free cash flow is a non-GAAP financial measure and is defined as net cash flow provided from operating activities less attributable capital expenditures and non-controlling interest included in net cash flows provided from operating activities. The Company believes that this measure, which is used internally to evaluate the Company’s underlying cash generation performance and the ability to repay creditors and return cash to shareholders, provides investors with the ability to better evaluate the Company’s underlying performance. However, this measure is not necessarily indicative of operating earnings or net cash flow provided from operating activities as determined under IFRS.
The following table provides a reconciliation of attributable free cash flow for the periods presented:
Three months ended Nine months ended
(unaudited, expressed in millions of U.S. dollars)
September 30, September 30,
2024 2023 2024 2023
Net cash flow provided from operating activities - as reported $ 733.5 $ 406.8 $ 1,711.9 $ 1,194.4 Adjusting items:
Attributable(a) capital expenditures (275.5) (272.4) (772.1) (757.3) Non-controlling interest(b) cash flow used in operating activities (43.4) 3.3 (34.0) 5.9 Attributable(a) free cash flow $ 414.6 $ 137.7 $ 905.8 $ 443.0
See pages 20 and 21 for details of the footnotes referenced within the table above.
Attributable Adjusted Operating Cash Flow
Attributable adjusted operating cash flow is a non-GAAP financial measure and is defined as net cash flow provided from operating activities excluding changes in working capital, certain impacts which the Company believes are not reflective of the Company’s regular operating cash flow, and net cash flows provided from operating activities, net of working capital changes, relating to non-controlling interests. Working capital can be volatile due to numerous factors, including the timing of tax payments. The Company uses attributable adjusted operating cash flow internally as a measure of the underlying operating cash flow performance and future operating cash flow-generating capability of the Company. However, the attributable adjusted operating cash flow measure is not necessarily indicative of net cash flow provided from operating activities as determined under IFRS.
The following table provides a reconciliation of attributable adjusted operating cash flow for the periods presented:
(unaudited, expressed in millions of U.S. dollars)
2024 2023 2024 2023
Net cash flow provided from operating activities - as reported $ 733.5 $ 406.8 $ 1,711.9 $ 1,194.4
Adjusting items:
Insurance proceeds received in respect of prior years - - (22.9) - Working capital changes:
| Accounts receivable and other assets | 24.9 | 21.0 | (26.4) | (66.6) |
| Inventories | 11.5 | 10.1 | 3.1 | 93.2 |
| Accounts payable and other liabilities, including income taxes paid | (102.2) | 32.7 | (95.0) | 41.5 |
| 667.7 | 470.6 | 1,570.7 | 1,262.5 |
Non-controlling interest(b) cash flow used in operating activities, net of working capital changes (42.7) 1.5 (41.7) 4.6 Attributable(a) adjusted operating cash flow $ 625.0 $ 472.1 $ 1,529.0 $ 1,267.1
See pages 20 and 21 for details of the footnotes referenced within the table above.
Production Cost of Sales and Attributable Production Cost of Sales per Equivalent Ounce Sold
Production cost of sales per equivalent ounce sold is defined as production cost of sales, as reported on the consolidated statement of operations, divided by the total number of gold equivalent ounces sold. This measure converts the Company’s non-gold production into gold equivalent ounces and credits it to total production.
Attributable production cost of sales per equivalent ounce sold is a non-GAAP ratio and is defined as attributable production cost of sales divided by the attributable number of gold equivalent ounces sold. This measure converts the Company’s non-gold production into gold equivalent ounces and credits it to total production. Management uses this measure to monitor and evaluate the performance of its operating properties that are attributable to its shareholders.
The following table provides a reconciliation of production cost of sales and attributable production cost of sales per equivalent ounce sold for the periods presented:
| (unaudited, expressed in millions of U.S. dollars, except ounces and production | Three months ended | Nine months ended | ||||
|---|---|---|---|---|---|---|
| cost of sales per equivalent ounce) | September 30, | September 30, | ||||
| 2024 | 2023 | 2024 | 2023 | |||
| Production cost of sales - as reported | $ | 564.3 $ | 520.6 $ | 1,613.3 $ | 1,502.4 | |
| Less: non-controlling interest(b)production cost of sales | (24.9) | - | (24.9) | - | ||
| Attributable(a)production cost of sales | $ | 539.4 $ | 520.6 $ | 1,588.4 $ | 1,502.4 | |
| Gold equivalent ounces sold | 578,323 | 571,248 | 1,621,483 | 1,614,547 | ||
| Less: non-controlling interest(b)gold equivalent ounces sold | (27,775) | - | (27,775) | - | ||
| Attributable(a)gold equivalent ounces sold | 550,548 | 571,248 | 1,593,708 | 1,614,547 | ||
| $ | 980 $ | 997 $ | 931 | |||
| Attributable(a)production cost of sales per equivalent ounce sold | 911 $ | |||||
| $ | 976 $ | 995 $ | 931 | |||
| Production cost of sales per equivalent ounce sold(c) | 911 $ |
See pages 20 and 21 for details of the footnotes referenced within the table above.
Attributable Production Cost of Sales per Ounce Sold on a By-Product Basis
Attributable production cost of sales per ounce sold on a by-product basis is a non-GAAP ratio which calculates the Company’s non-gold production as a credit against its per ounce production costs, rather than converting its non-gold production into gold equivalent ounces and crediting it to total production, as is the case in co-product accounting. Management believes that this ratio provides investors with the ability to better evaluate Kinross’ production cost of sales per ounce on a comparable basis with other major gold producers who routinely calculate their cost of sales per ounce using by-product accounting rather than co-product accounting.
The following table provides a reconciliation of attributable production cost of sales per ounce sold on a by-product basis for the periods presented:
| (unaudited, expressed in millions of U.S. dollars, except ounces and production | Three months ended | Nine months ended | |
|---|---|---|---|
| cost of sales per ounce) | September 30, | September 30, | |
| 2024 2023 | 2024 | 2023 | |
| Production cost of sales - as reported | $ 564.3 $ | 520.6 $ 1,613.3 $ | 1,502.4 |
| Less: non-controlling interest(b)production cost of sales | (24.9) | - (24.9) | - |
| (21.4) | (97.2) | (160.6) |
Less: attributable(a) silver revenue(d) (52.4)
| Attributable(a)production cost of sales net of silver by-product revenue | $ | 518.0 $ | 468.2 $ | 1,491.2 $ | 1,341.8 | |||
| Gold ounces sold | 569,506 | 544,199 | 1,578,232 | 1,531,816 | ||||
| Less: non-controlling interest(b)gold ounces sold | (27,676) | - | (27,676) | - | ||||
| Attributable(a)gold ounces sold | 541,830 | 544,199 | 1,550,556 | 1,531,816 | ||||
| Attributable(a)production cost of sales per ounce sold on a by-product basis | $ | 956 $ | 860 | $ | 962 $ | 876 | ||
| Production cost of sales per equivalent ounce sold(c) | $ | 976 $ | 911 | $ | 995 $ | 931 |
See pages 20 and 21 for details of the footnotes referenced within the table above.
Attributable All-In Sustaining Cost and All-In Cost per Ounce Sold on a By-Product Basis
Attributable all-in sustaining cost and all-in cost per ounce sold on a by-product basis are non-GAAP financial measures and ratios, as applicable, calculated based on guidance published by the World Gold Council (“WGC”). The WGC is a market development organization for the gold industry and is an association whose membership comprises leading gold mining companies including Kinross. Although the WGC is not a mining industry regulatory organization, it worked closely with its member companies to develop these metrics. Adoption of the all-in sustaining cost and all-in cost metrics is voluntary and not necessarily standard, and therefore, these measures and ratios presented by the Company may not be comparable to similar measures and ratios presented by other issuers. The Company believes that the all-in sustaining cost and all-in cost measures complement existing measures and ratios reported by Kinross.
All-in sustaining cost includes both operating and capital costs required to sustain gold production on an ongoing basis. The value of silver sold is deducted from the total production cost of sales as it is considered residual production, i.e. a by-product. Sustaining operating costs represent expenditures incurred at current operations that are considered necessary to maintain current production. Sustaining capital represents capital expenditures at existing operations comprising mine development costs, including capitalized development, and ongoing replacement of mine equipment and other capital facilities, and does not include capital expenditures for major growth projects or enhancement capital for significant infrastructure improvements at existing operations.
All-in cost is comprised of all-in sustaining cost as well as operating expenditures incurred at locations with no current operation, or costs related to other nonsustaining activities, and capital expenditures for major growth projects or enhancement capital for significant infrastructure improvements at existing operations.
Attributable all-in sustaining cost and all-in cost per ounce sold on a by-product basis are calculated by adjusting production cost of sales, as reported on the interim condensed consolidated statements of operations, as follows:
Three months ended Nine months ended
(unaudited, expressed in millions of U.S. dollars, except ounces and costs per
| ounce) | September 30, | September 30, | |||
|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | ||
| Production cost of sales - as reported | $ | 564.3 $ | 520.6 $ | 1,613.3 $ | 1,502.4 |
| Less: non-controlling interest(b)production cost of sales | (24.9) | - | (24.9) | - | |
| Less: attributable(a)silver revenue(d) | (21.4) | (52.4) | (97.2) | (160.6) | |
| Attributable(a)production cost of sales net of silver by-product revenue | $ | 518.0 $ | 468.2 $ | 1,491.2 $ | 1,341.8 |
Adjusting items on an attributable(a) basis:
| General and administrative(e) | 27.2 | 24.0 | 90.3 | 80.4 |
| Other operating expense - sustaining(f) | 2.5 | 6.3 | 4.9 | 17.8 |
| Reclamation and remediation - sustaining(g) | 18.4 | 14.1 | 56.1 | 46.8 |
| Exploration and business development - sustaining(h) | 10.6 | 11.8 | 32.4 | 27.9 |
| Additions to property, plant and equipment - sustaining(i) | 141.8 | 159.1 | 367.6 | 404.2 |
| Lease payments - sustaining(j) | 3.2 | 4.2 | 9.9 | 24.9 |
| All-in Sustaining Cost on a by-product basis - attributable(a) | $ 721.7 $ | 687.7 $ | 2,052.4 $ | 1,943.8 |
Adjusting items on an attributable(a) basis:
Other operating expense - non-sustaining(f) 8.7 27.4
12.9 32.8
| Reclamation and remediation - non-sustaining(g) | 1.7 | 1.2 | 5.1 | 5.4 |
| Exploration and business development - non-sustaining(h) | 38.3 | 38.5 | 113.0 | 105.8 |
| Additions to property, plant and equipment - non-sustaining(i) | 133.7 | 113.3 | 404.5 | 353.1 |
| Lease payments - non-sustaining(j) | 0.1 | 0.2 | 0.2 | 0.6 |
| All-in Cost on a by-product basis - attributable(a) | $ 908.4 $ | 849.6 $ | 2,608.0 $ | 2,436.1 |
| Gold ounces sold | 569,506 | 544,199 | 1,578,232 | 1,531,816 |
| (27,676) | (27,676) | - |
Less: non-controlling interest(b) gold ounces sold -
| Attributable(a)gold ounces sold | 541,830 | 544,199 | 1,550,556 | 1,531,816 | |
| Attributable(a)all-in sustaining cost per ounce sold on a by-product basis | $ | 1,332 $ | 1,264 $ | 1,324 $ | 1,269 |
| Attributable(a)all-in cost per ounce sold on a by-product basis | $ | 1,677 $ | 1,561 $ | 1,682 $ | 1,590 |
| Production cost of sales per equivalent ounce sold(c) | $ | 976 $ | 911 $ | 995 $ | 931 |
See pages 20 and 21 for details of the footnotes referenced within the table above.
Attributable All-In Sustaining Cost and All-In Cost per Equivalent Ounce Sold
The Company also assesses its attributable all-in sustaining cost and all-in cost on a gold equivalent ounce basis. Under these non-GAAP financial measures and ratios, the Company’s production of silver is converted into gold equivalent ounces and credited to total production.
Attributable all-in sustaining cost and all-in cost per equivalent ounce sold are calculated by adjusting production cost of sales, as reported on the interim condensed consolidated statements of operations, as follows:
Three months ended Nine months ended
(unaudited, expressed in millions of U.S. dollars, except ounces and costs per
| ounce) | September 30, | September 30, | |||
|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | ||
| Production cost of sales - as reported | $ | 564.3 $ | 520.6 $ | 1,613.3 $ | 1,502.4 |
| Less: non-controlling interest(b)production cost of sales | (24.9) | - | (24.9) | - | |
| Attributable(a)production cost of sales | $ | 539.4 $ | 520.6 $ | 1,588.4 $ | 1,502.4 |
Adjusting items on an attributable(a) basis:
General and administrative(e)
27.2 24.0 90.3 80.4 Other operating expense - sustaining(f)
2.5 6.3 4.9 17.8
| Reclamation and remediation - sustaining(g) | 18.4 | 14.1 | 56.1 | 46.8 |
| Exploration and business development - sustaining(h) | 10.6 | 11.8 | 32.4 | 27.9 |
| Additions to property, plant and equipment - sustaining(i) | 141.8 | 159.1 | 367.6 | 404.2 |
Lease payments - sustaining(j) 3.2 4.2 9.9 24.9 All-in Sustaining Cost - attributable(a)
$ 743.1 $ 740.1 $ 2,149.6 $ 2,104.4 Adjusting items on an attributable(a) basis:
| Other operating expense - non-sustaining(f) | 12.9 | 8.7 | 32.8 | 27.4 |
| Reclamation and remediation - non-sustaining(g) | 1.7 | 1.2 | 5.1 | 5.4 |
| 38.3 | 38.5 | 113.0 | 105.8 |
Exploration and business development - non-sustaining(h)
| Additions to property, plant and equipment - non-sustaining(i) | 133.7 | 113.3 | 404.5 | 353.1 | |
| Lease payments - non-sustaining(j) | 0.1 | 0.2 | 0.2 | 0.6 | |
| All-in Cost - attributable(a) | $ | 929.8 $ | 902.0 $ | 2,705.2 $ | 2,596.7 |
| Gold equivalent ounces sold | 578,323 | 571,248 | 1,621,483 | 1,614,547 | |
| Less: non-controlling interest(b)gold equivalent ounces sold | (27,775) | - | (27,775) | - | |
| Attributable(a)gold equivalent ounces sold | 550,548 | 571,248 | 1,593,708 | 1,614,547 | |
| $ | 1,350 $ | 1,296 $ | 1,349 $ | 1,303 |
Attributable(a) all-in sustaining cost per equivalent ounce sold Attributable(a) all-in cost per equivalent ounce sold $ 1,689 $ 1,579 $ 1,697 $ 1,608 Production cost of sales per equivalent ounce sold(c) $ 976 $ 911 $ 995 $ 931
See pages 20 and 21 for details of the footnotes referenced within the table above.
Capital Expenditures and Attributable Capital Expenditures
Capital expenditures are classified as either sustaining capital expenditures or non-sustaining capital expenditures, depending on the nature of the expenditure. Sustaining capital expenditures typically represent capital expenditures at existing operations including capitalized exploration costs and capitalized development unless related to major projects, ongoing replacement of mine equipment and other capital facilities and other capital expenditures and is calculated as total additions to property, plant and equipment (as reported on the interim condensed consolidated statements of cash flows), less nonsustaining capital expenditures. Non-sustaining capital expenditures represent capital expenditures for major projects, including major capital development projects at existing operations that are expected to materially benefit the operation, as well as enhancement capital for significant infrastructure improvements at existing operations. Management believes the distinction between sustaining capital expenditures and non-sustaining expenditures is a useful indicator of the purpose of capital expenditures and this distinction is an input into the calculation of attributable all-in sustaining costs per ounce and attributable all-in costs per ounce. The categorization of sustaining capital expenditures and non-sustaining capital expenditures is consistent with the definitions under the WGC all-in cost standard. Sustaining capital expenditures and non-sustaining capital expenditures are not defined under IFRS, however, the sum of these two measures total to additions to property, plant and equipment as disclosed under IFRS on the interim condensed consolidated statements of cash flows.
Additions to property, plant and equipment per the statement of cash flow includes 100% of capital expenditures for Manh Choh. Attributable capital expenditures includes Kinross' 70% share of capital expenditures for Manh Choh. Management believes this to be a useful indicator of Kinross’ cash resources utilized for capital expenditures.
The following table provides a reconciliation of the classification of capital expenditures for the periods presented:
(unaudited, expressed in millions of U.S. dollars)
Fort La Round Bald Knox(k)
| Tasiast | Paracatu Coipa | MountainMountain Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Three months ended September 30, 2024 | (Mauritania) (Brazil) (Chile) | (USA) | (USA) | (USA) | USA | Other | Total | ||||
| Sustaining capital expenditures | $ | 13.5 $ | 41.2 $ | 21.3$ 56.6 $ | 5.2 $ | 5.0$ 66.8 $ | 0.2 $ 143.0 | ||||
| Non-sustaining capital expenditures | 70.3 | - | 3.6 13.8 | 30.7 | 1.1 45.6 | 16.2 | 135.7 | ||||
| Additions to property, plant and equipment - per cash flow | $ | 83.8 $ | 41.2 $ | 24.9$ 70.4 $ | 35.9 $ | 6.1$ 112.4 $ | 16.4 $ 278.7 | ||||
| Less: Non-controlling interest(b) | $ | - $ | - $ | -$ (3.2) $ | - $ | -$ (3.2)$ | - $ | (3.2) | |||
| Attributable(a)capital expenditures | $ | 83.8 $ | 41.2 $ | 24.9$ 67.2 $ | 35.9 $ | 6.1$ 109.2 $ | 16.4 $ 275.5 |
Three months ended September 30, 2023
| Sustaining capital expenditures | $ | 12.2 $ | 58.4 $ | 7.5$ | 52.1 $ | 7.7 $ | 20.6$ | 80.4 $ | 0.6 $ 159.1 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Non-sustaining capital expenditures | 65.1 | - | 7.7 | 43.9 | 0.1 | 4.3 | 48.3 | 3.7 124.8 | ||
| Additions to property, plant and equipment - per cash flow | $ | 77.3 $ | 58.4 $ | 15.2$ | 96.0 $ | 7.8 $ | 24.9$ 128.7 $ | 4.3 $ 283.9 | ||
| Less: Non-controlling interest(b) | $ | - $ | - $ | -$ (11.5) $ | - $ | -$ (11.5)$ | - $ (11.5) | |||
| Attributable(a)capital expenditures | $ | 77.3 $ | 58.4 $ | 15.2$ | 84.5 $ | 7.8 $ | 24.9$ 117.2 $ | 4.3 $ 272.4 |
(unaudited, expressed in millions of U.S. dollars)
Fort La Round Bald Tasiast Paracatu Coipa Knox(k) Mountain Mountain Total
| Nine months ended September 30, 2024 | (Mauritania) (Brazil) (Chile) | (USA) | (USA) | (USA) | USA | Other | Total | ||
|---|---|---|---|---|---|---|---|---|---|
| Sustaining capital expenditures | $ | 30.6 $ 105.4 $ | 39.2$ 141.9 $ | 11.0 $ | 41.8$ 194.7 $ | (1.0)$ 368.9 | |||
| Non-sustaining capital expenditures | 207.9 | - | 3.6 96.3 | 81.4 | 1.3 179.0 | 35.4 | 425.9 | ||
| Additions to property, plant and equipment - per cash flow | $ | 238.5 $ 105.4 $ | 42.8$ 238.2 $ | 92.4 $ | 43.1$ 373.7 $ | 34.4 $ 794.8 | |||
| Less: Non-controlling interest(b) | $ | - $ | - $ | -$ (22.7) $ | - $ | -$ (22.7)$ | - $ (22.7) | ||
| Attributable(a)capital expenditures | $ | 238.5 $ 105.4 $ | 42.8$ 215.5 $ | 92.4 $ | 43.1$ 351.0 $ | 34.4 $ 772.1 |
Nine months ended September 30, 2023 Sustaining capital expenditures $ 35.9 $ 125.9 $ 29.0 $ 142.8 $ 25.6 $ 43.2 $ 211.6 $ 1.8 $ 404.2 Non-sustaining capital expenditures 187.9 - 34.9 111.3 0.1 38.3 149.7 10.3 382.8 Additions to property, plant and equipment - per cash flow $ 223.8 $ 125.9 $ 63.9 $ 254.1 $ 25.7 $ 81.5 $ 361.3 $ 12.1 $ 787.0 Less: Non-controlling interest(b) $ - $ - $ - $ (29.7) $ - $ - $ (29.7) $ - $ (29.7) Attributable(a) capital expenditures $ 223.8 $ 125.9 $ 63.9 $ 224.4 $ 25.7 $ 81.5 $ 331.6 $ 12.1 $ 757.3