KGCRF 0000701818-21-000016 6-K as filed: Nov 10, 2021

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

This management's discussion and analysis ("MD&A"), prepared as of November 10, 2021, relates to the financial condition and results of operations of Kinross Gold Corporation together with its wholly owned subsidiaries, as at September 30, 2021 and for the three and nine months then ended, and is intended to supplement and complement Kinross Gold Corporation’s unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2021 and the notes thereto (the “interim financial statements”). Readers are cautioned that the MD&A contains forward-looking statements about expected future events and financial and operating performance of the Company, and that actual events may vary from management's expectations. Readers are encouraged to read the Cautionary Statement on Forward Looking Information included with this MD&A and to consult Kinross Gold Corporation's annual audited consolidated financial statements for 2020 and corresponding notes to the financial statements which are available on the Company's web site at www.kinross.com and on www.sedar.com. The interim financial statements and MD&A are presented in U.S. dollars. The interim financial statements have been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting”. This discussion addresses matters we consider important for an understanding of our financial condition and results of operations as at and for the three and nine months ended September 30, 2021, as well as our outlook.

This MD&A contains forward-looking statements and should be read in conjunction with the risk factors described in "Risk Analysis" and in the “Cautionary Statement on Forward-Looking Information” on pages 38 – 39 of this MD&A. In certain instances, references are made to relevant notes in the interim financial statements for additional information.

Where we say "we", "us", "our", the "Company" or "Kinross", we mean Kinross Gold Corporation or Kinross Gold Corporation and/or one or more or all of its subsidiaries, as it may apply. Where we refer to the "industry", we mean the gold mining industry.

1.	DESCRIPTION OF THE BUSINESS

Kinross is engaged in gold mining and related activities, including exploration and acquisition of gold-bearing properties, the extraction and processing of gold-containing ore, and reclamation of gold mining properties. Kinross’ gold production and exploration activities are carried out principally in Canada, the United States, the Russian Federation, Brazil, Chile, Ghana and Mauritania. Gold is produced in the form of doré, which is shipped to refineries for final processing. Kinross also produces and sells a quantity of silver.

The profitability and operating cash flow of Kinross are affected by various factors, including the amount of gold and silver produced, the market prices of gold and silver, operating costs, interest rates, regulatory and environmental compliance, the level of exploration activity and capital expenditures, general and administrative costs, and other discretionary costs and activities. Kinross is also exposed to fluctuations in currency exchange rates, political risks, and varying levels of taxation that can impact profitability and cash flow. Many of these factors have been or may be influenced by the continued economic and business uncertainties caused by the COVID-19 pandemic. Kinross seeks to manage the risks associated with its business operations; however, many of the factors affecting these risks are beyond the Company’s control.

Commodity prices continue to be volatile as economies around the world continue to experience economic challenges along with political changes and uncertainties, including as a result of the impacts of the COVID-19 pandemic. Volatility in the price of gold and silver impacts the Company's revenue, while volatility in the price of input costs, such as oil, and foreign exchange rates, particularly the Brazilian real, Chilean peso, Russian rouble, Mauritanian ouguiya, Ghanaian cedi, and Canadian dollar, may have an impact on the Company's operating costs and capital expenditures.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Consolidated Financial and Operating Highlights

	Three months ended September 30,											Nine months ended September 30,
(in millions, except ounces, per share amounts and per ounce amounts)	2021			2020		Change			% Change^(e)			2021		2020		Change			% Change^(e)
Operating Highlights
Total gold equivalent ounces^(a)
Produced^(c)		486,819			607,744		(120,925	)		(20%	)		1,591,939		1,755,363		(163,424	)		(9%	)
Sold^(c)		481,959			593,218		(111,259	)		(19%	)		1,586,028		1,738,379		(152,351	)		(9%	)

Attributable gold equivalent ounces^(a)
Produced^(c)		483,060			603,312		(120,252	)		(20%	)		1,579,928		1,742,616		(162,688	)		(9%	)
Sold^(c)		478,459			588,559		(110,100	)		(19%	)		1,574,362		1,725,778		(151,416	)		(9%	)

Financial Highlights
Metal sales	$	862.5		$	1,131.3	$	(268.8	)		(24%	)	$	2,849.9	$	3,018.3	$	(168.4	)		(6%	)
Production cost of sales	$	421.0		$	439.4	$	(18.4	)		(4%	)	$	1,300.9	$	1,289.2	$	11.7			1%
Depreciation, depletion and amortization	$	208.8		$	204.8	$	4.0			2%		$	641.6	$	608.3	$	33.3			5%
Reversal of impairment charge	$	-		$	-	$	-		nm			$	-	$	48.3	$	(48.3	)	nm
Operating earnings	$	72.9		$	393.4	$	(320.5	)		(81%	)	$	509.1	$	907.1	$	(398.0	)		(44%	)
Net (loss) earnings attributable to common shareholders	$	(44.9	)	$	240.7	$	(285.6	)		(119%	)	$	223.9	$	559.1	$	(335.2	)		(60%	)
Basic (loss) earnings per share attributable to common shareholders	$	(0.04	)	$	0.19	$	(0.23	)		(121%	)	$	0.18	$	0.44	$	(0.26	)		(59%	)
Diluted (loss) earnings per share attributable to common shareholders	$	(0.04	)	$	0.19	$	(0.23	)		(121%	)	$	0.18	$	0.44	$	(0.26	)		(59%	)
Adjusted net earnings attributable to common shareholders^(b)	$	90.2		$	310.2	$	(220.0	)		(71%	)	$	439.5	$	631.7	$	(192.2	)		(30%	)
Adjusted net earnings per share^(b)	$	0.07		$	0.25	$	(0.18	)		(72%	)	$	0.35	$	0.50	$	(0.15	)		(30%	)
Net cash flow provided from operating activities	$	269.9		$	544.1	$	(274.2	)		(50%	)	$	937.9	$	1,276.5	$	(338.6	)		(27%	)
Adjusted operating cash flow^(b)	$	190.5		$	549.6	$	(359.1	)		(65%	)	$	953.9	$	1,385.1	$	(431.2	)		(31%	)
Capital expenditures^(d)	$	231.0		$	212.1	$	18.9			9%		$	640.6	$	617.8	$	22.8			4%
Free cash flow^(b)	$	38.9		$	332.0	$	(293.1	)		(88%	)	$	297.3	$	658.7	$	(361.4	)		(55%	)
Average realized gold price per ounce^(b)	$	1,790		$	1,908	$	(118	)		(6%	)	$	1,797	$	1,736	$	61			4%
Consolidated production cost of sales per equivalent ounce^(c) sold^(b)	$	874		$	741	$	133			18%		$	820	$	742	$	78			11%
Attributable^(a) production cost of sales per equivalent ounce^(c) sold^(b)	$	870		$	737	$	133			18%		$	816	$	738	$	78			11%
Attributable^(a) production cost of sales per ounce sold on a by-product basis^(b)	$	836		$	707	$	129			18%		$	787	$	717	$	70			10%
Attributable^(a) all-in sustaining cost per ounce sold on a by-product basis^(b)	$	1,205		$	934	$	271			29%		$	1,062	$	962	$	100			10%
Attributable^(a) all-in sustaining cost per equivalent ounce^(c) sold^(b)	$	1,225		$	958	$	267			28%		$	1,084	$	978	$	106			11%
Attributable^(a) all-in cost per ounce sold on a by-product basis^(b)	$	1,543		$	1,226	$	317			26%		$	1,388	$	1,226	$	162			13%
Attributable^(a) all-in cost per equivalent ounce^(c) sold^(b)	$	1,552		$	1,243	$	309			25%		$	1,400	$	1,237	$	163			13%

(a)	“Total” includes 100% of Chirano production. "Attributable" includes Kinross' share of Chirano (90%) production and costs, and Manh Choh (70%) costs.

(b)	The definition and reconciliation of these non-GAAP financial measures is included in Section 11.

(c)

“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 of 2021 was 73.45:1 (third quarter of 2020 – 78.68:1). The ratio for the first nine months of 2021 was 69.90:1 (first nine months of 2020 – 90.15:1).

(d)	“Capital expenditures” is as reported as “Additions to property, plant and equipment” on the interim condensed consolidated statement of cash flows.

(e)	"nm" means not meaningful.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Consolidated Financial Performance

Third quarter 2021 vs. Third quarter 2020

Kinross’ attributable production decreased by 20% compared to the third quarter of 2020, primarily due to lower production at Tasiast due to the suspension of milling operations as a result of the mill fire in June 2021, at Round Mountain primarily due to fewer ounces recovered from the heap leach pads and lower grades, and at Chirano and Kupol due to a decrease in grades. These decreases were partially offset by higher production at Bald Mountain largely due to the timing of ounces recovered from the heap leach pads.

Metal sales decreased by 24% compared to the third quarter of 2020 due to decreases in gold equivalent ounces sold and the average realized gold price. Total gold equivalent ounces sold decreased to 481,959 ounces in the third quarter of 2021 compared to 593,218 ounces in the third quarter of 2020, primarily due to the decrease in production as described above. The average realized gold price decreased to $1,790 per ounce in the third quarter of 2021 from $1,908 per ounce in the same period in 2020.

Production cost of sales in the third quarter of 2021 decreased by 4% compared to the third quarter of 2020, due to decreases in gold equivalent ounces sold at Tasiast and Chirano, partially offset by an increase in gold equivalent ounces sold and higher operating waste mined at Bald Mountain, higher operating waste mined and increases in production taxes at Round Mountain and an increase in mining costs at Kupol.

Attributable production cost of sales per equivalent ounce sold and per ounce sold on a by-product basis both increased by 18% in the third quarter of 2021 compared to the same period in 2020, primarily due to the decrease in ounces sold, as described above.

In the third quarter of 2021, depreciation, depletion and amortization increased by 2% compared to the same period in 2020, due to increases in the depreciable asset bases at Fort Knox, Round Mountain, Bald Mountain and Tasiast, partially offset by the decrease in attributable gold equivalent ounces sold.

Operating earnings decreased to $72.9 million in the third quarter of 2021 from $393.4 million in the same period in 2020. This decrease was primarily due to the decrease in metal sales, largely resulting from the temporary suspension of milling operations at Tasiast.

In the third quarter of 2021, the Company recorded a tax expense of $104.7 million, compared to $121.8 million in the third quarter of 2020. The $104.7 million tax expense recognized in the third quarter of 2021 included $14.8 million of deferred tax expense, compared to a deferred tax expense of $42.7 million in the third quarter of 2020, resulting from the net foreign currency translation of tax deductions related to the Company’s operations in Brazil and Russia. Income tax expense decreased in the third quarter of 2021 compared to the third quarter of 2020, due to differences in the level of income in the Company’s operating jurisdictions. The decrease in income tax expense was partially offset by additional tax expenses of $49.8 million in the third quarter of 2021 in respect of the settlement of tax amounts relating to prior years. Kinross' combined federal and provincial statutory tax rate for the third quarters of both 2021 and 2020 was 26.5%.

Net losses attributable to common shareholders in the third quarter of 2021 were $44.9 million, or $0.04 per share, compared to net earnings attributable to common shareholders of $240.7 million, or $0.19 per share, in the same period in 2020. The decrease was primarily a result of the decrease in operating earnings as described above.

Adjusted net earnings attributable to common shareholders in the third quarter of 2021 were $90.2 million, or $0.07 per share, compared to adjusted net earnings attributable to common shareholders of $310.2 million, or $0.25 per share, for the same period in 2020. The decrease in adjusted net earnings was primarily due to the decrease in ounces sold and the decrease in metal sales.

Net cash flow provided from operating activities decreased to $269.9 million in the third quarter of 2021 from $544.1 million in the third quarter of 2020, primarily due to the decrease in operating earnings, partially offset by favourable working capital movements.

In the third quarter of 2021, adjusted operating cash flow decreased to $190.5 million from $549.6 million in the same period of 2020, primarily due to the decrease in metal sales.

Capital expenditures increased to $231.0 million compared to $212.1 million in the third quarter of 2020, primarily due to increased expenditures for development activities at La Coipa, the feasibility study at Lobo-Marte and the pre-feasibility study at Udinsk, and an increase in capital stripping at Tasiast. These increases were partially offset by reduced capital stripping at Bald Mountain and Round Mountain.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Free cash flow decreased to $38.9 million in the third quarter of 2021, compared with $332.0 million in the same period of 2020, largely due to the decrease in net cash flow provided from operating activities, as described above.

In the third quarter of 2021, attributable all-in sustaining cost per equivalent ounce sold and per ounce sold on a by-product basis increased by 28% and 29%, respectively, compared to the same period in 2020, primarily due to the decrease in ounces sold and an increase in sustaining capital expenditures. In the third quarter of 2021, attributable all-in cost per equivalent ounce sold and per ounce sold on a by-product basis increased by 25% and 26%, respectively, compared to the same period in 2020, due to the decrease in ounces sold and increases in sustaining capital expenditures and non-sustaining exploration expenses.

First nine months of 2021 vs. First nine months of 2020

Kinross’ attributable production in the first nine months of 2021 decreased by 9% compared to the same period in 2020. Lower production levels were seen at Tasiast due to the suspension of milling operations as a result of the mill fire in June 2021, with lower mill grades prior to the incident also contributing to the reduction, at Round Mountain due to lower mill grades and the timing of ounces recovered from the heap leach pads, and at Kupol due to lower grades. These reductions were partially offset by an increase in ounces recovered from the heap leach pads at Fort Knox and higher production at Paracatu due to higher mill throughput and recoveries.

Metal sales decreased by 6% in the first nine months of 2021, compared to the same period in 2020, due to a decrease in gold equivalent ounces sold, partially offset by an increase in the average realized gold price. Total gold equivalent ounces sold in the first nine months of 2021 decreased to 1,586,028 ounces from 1,738,379 ounces in the same period in 2020, primarily due to the decrease in production as described above. The average realized gold price increased to $1,797 per ounce in the first nine months of 2021 from $1,736 per ounce in the same period in 2020.

Production cost of sales in the first nine months of 2021 was comparable to the same period in 2020. Production cost of sales in the first nine months of 2021 increased at Round Mountain primarily due to higher operating waste mined and increases in royalties and production taxes, and at Bald Mountain and Paracatu due to increases in gold equivalent ounces sold and higher operating waste mined. These increases were largely offset by decreases in production cost of sales at Tasiast due to decreases in gold equivalent ounces sold, operating waste mined and fuel costs, and at Fort Knox as a result of a higher proportion of lower cost ounces produced from its Barnes Creek heap leach pad.

Attributable production cost of sales per equivalent ounce sold and per ounce sold on a by-product basis increased by 11% and 10%, respectively, in the first nine months of 2021, compared to the same period in 2020, due to the decrease in ounces sold, as described above.

In the first nine months of 2021, depreciation, depletion and amortization increased by 5%, compared to the same period in 2020, mainly due to increases in the depreciable asset bases at Bald Mountain and Round Mountain. These increases were partially offset by decreases at Kupol largely due to a decrease in the depreciable asset base related to the completion of mining activities at Dvoinoye and at Tasiast due to the decrease in gold equivalent ounces sold.

At June 30, 2020, the Company recorded an impairment reversal of $48.3 million entirely related to property, plant and equipment at Lobo-Marte, due to the increase in mineral reserves. No impairment charges or reversals were recorded in the first nine months of 2021.

In the first nine months of 2021, operating earnings were $509.1 million compared to $907.1 million in the same period in 2020. The decrease was largely related to the temporary suspension of milling operations at Tasiast, as well as to an increase in other operating expenses due to the stabilization of Round Mountain's north wall, and the impairment reversal recorded in the first nine months of 2020.

In the first nine months of 2021, the Company recorded an income tax expense of $224.9 million compared to $269.3 million in the same period in 2020. The $224.9 million income tax expense recognized in the first nine months of 2021 included $7.4 million of deferred tax expense, compared to a deferred tax expense of $96.6 million in the first nine months of 2020, resulting from the net foreign currency translation of tax deductions related to the Company’s operations in Brazil and Russia. Income tax expense decreased in the first nine months of 2021 compared to the first nine months of 2020, due to differences in the level of income in the Company’s operating jurisdictions. The decrease in income tax expense was partially offset by additional tax expenses of $49.8 million in the first nine months of 2021 in respect of the settlement of tax amounts relating to prior years. Kinross' combined federal and provincial statutory tax rate for the first nine months of both 2021 and 2020 was 26.5%.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Net earnings attributable to common shareholders in the first nine months of 2021 were $223.9 million, or $0.18 per share, compared to $559.1 million, or $0.44 per share, in the first nine months of 2020. The decrease is a result of the decrease in operating earnings as described above, partially offset by the decrease in income tax expense.

Adjusted net earnings attributable to common shareholders were $439.5 million, or $0.35 per share, for the first nine months of 2021 compared to $631.7 million, or $0.50 per share, for the same period in 2020. The decrease in adjusted net earnings was primarily due to the decrease in metal sales.

In the first nine months of 2021, net cash flow provided from operating activities decreased to $937.9 million from $1,276.5 million during the same period in 2020, mainly due to the decrease in operating earnings and higher taxes paid, partially offset by favourable working capital movements.

Adjusted operating cash flow in the first nine months of 2021 decreased to $953.9 million from $1,385.1 million in the same period in 2020, primarily due to the decrease in metal sales.

Capital expenditures increased to $640.6 million compared to $617.8 million in the first nine months of 2020, primarily due the increased expenditures for development activities at La Coipa, the feasibility study at Lobo-Marte and the pre-feasibility study at Udinsk, and an increase in capital stripping at Tasiast. These increases were partially offset by reduced capital stripping at Bald Mountain, Round Mountain and Fort Knox.

Free cash flow decreased to $297.3 million in the first nine months of 2021, compared with $658.7 million in the same period of 2020, largely due to the decrease in net cash flow provided from operating activities, as described above.

Attributable all-in sustaining cost per equivalent ounce sold and per ounce sold on a by-product basis in the first nine months of 2021 increased by 11% and 10%, respectively, compared to the same period in 2020, primarily due to the decrease in gold ounces sold. Attributable all-in cost per equivalent ounce sold and per ounce sold on a by-product basis both increased by 13%, compared to the first nine months in 2020, due to the decrease in ounces sold and increases in non-sustaining exploration expenses and capital expenditures.

2.	IMPACT OF KEY ECONOMIC TRENDS AND THE COVID-19 PANDEMIC

Kinross’ 2020 annual MD&A contains a discussion of key economic trends that affect the Company and its financial statements. Please refer to the MD&A for the year ended December 31, 2020, which is available on the Company's website www.kinross.com and on www.sedar.com or is available upon request from the Company. Included in this MD&A is an update reflecting significant changes since the preparation of the 2020 annual MD&A.

COVID-19 Pandemic

Kinross’ ongoing response to the COVID-19 pandemic continued to maintain the safety of its global workforce and host communities while mitigating operational impacts to our global portfolio. However, the pandemic continued to affect overall performance, productivity rates and costs. Kinross is seeing increased potential to return to pre-pandemic operating environments in most of its jurisdictions, in line with public health guidelines and as a result of lower COVID-19 rates.

Price of Gold

The price of gold is the largest single factor in determining profitability and cash flow from operations, therefore, the financial performance of the Company has been, and is expected to continue to be, closely linked to the price of gold. During the third quarter of 2021, the average price of gold was $1,790 per ounce, with gold trading between $1,723 and $1,829 per ounce based on the London PM Fix gold price. This compares to an average of $1,909 per ounce during the third quarter of 2020, with a low of $1,771 and a high of $2,067 per ounce. During the third quarter of 2021, Kinross realized an average price of $1,790 per ounce compared to $1,908 per ounce for the same period in 2020. During the third quarter of 2021, gold prices were under pressure from rising U.S. yields, a stronger U.S. dollar and reduced safe haven demand.

For the first nine months of 2021, the price of gold averaged $1,800 per ounce compared to $1,735 in the same period of 2020. In the first nine months of 2021, Kinross realized an average price of $1,797 per ounce compared to an average price realized of $1,736 per ounce in the first nine months of 2020.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Cost Sensitivity

The Company’s profitability is subject to industry-wide cost pressures on development and operating costs with respect to labour, energy, capital expenditures and consumables in general. Since mining is generally an energy intensive activity, especially in open pit mining, energy prices can have a significant impact on operations.

The cost of fuel as a percentage of operating costs varies amongst the Company’s mines, and overall, operations have experienced fuel price increases in the third quarter and first nine months of 2021, compared to the third quarter and first nine months of 2020, due to the strengthening demand and global energy shortage concerns. Kinross manages its exposure to energy costs by entering, from time to time, into various hedge positions – refer to Section 6 - Liquidity and Capital Resources for details.

Currency Fluctuations

At the Company’s non-U.S. mining operations and exploration activities, which are primarily located in Brazil, Chile, the Russian Federation, Ghana, Mauritania, and Canada, a portion of operating costs and capital expenditures are denominated in their respective local currencies. Generally, as the U.S. dollar strengthens, these currencies weaken, and as the U.S. dollar weakens, these foreign currencies strengthen. During the three months ended September 30, 2021, the U.S. dollar, on average, was stronger relative to the Ghanaian cedi and was weaker compared to the Brazilian real, Chilean peso, Mauritanian ouguiya, Canadian dollar and Russian rouble, compared to the same period in 2020. During the nine months ended September 30, 2021, the U.S. dollar, on average, was stronger relative to the Brazilian real, Russian rouble and Ghanaian cedi and was weaker compared to the Chilean peso, Mauritanian ouguiya, and Canadian dollar, compared to the nine months ended September 30, 2020. As at September 30, 2021, the U.S. dollar was stronger compared to the December 31, 2020 spot exchange rates of the Brazilian real, Chilean peso, Ghanaian cedi and Canadian dollar and was weaker compared to the December 31, 2020 spot exchange rates of the Russian rouble and Mauritanian ouguiya. In order to manage this risk, the Company uses currency hedges for certain foreign currency exposures – refer to Section 6 - Liquidity and Capital Resources for details.

OUTLOOK

The following section of this MD&A 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 38 – 39 of this MD&A.

Unless otherwise stated, production, production cost of sales per gold equivalent ounce sold, all-in sustaining cost per gold equivalent ounce in this Outlook section include only Kinross' share of Chirano (90%) production and costs, and Manh Choh (70%) costs. The definitions of these non-GAAP measures are included in Section 11 of this MD&A.

Operational Outlook

The Company is on track to meet its revised 2021 production guidance of 2.1 million gold equivalent ounces (+/- 5%). Kinross continues to expect annual production to increase to 2.7 million gold equivalent ounces (+/- 5%) in 2022 and 2.9 million gold equivalent ounces (+/- 5%) in 2023.

The Company expects to meet its revised 2021 production cost of sales per gold equivalent ounce sold guidance of $830 (+/- 5%) and all-in sustaining cost per gold equivalent ounce sold guidance of $1,110 per Au eq. oz. (+/- 5%).

Kinross remains on track to meet its 2021 capital expenditures guidance of $900 million (+/- 5%).

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

4.	PROJECT UPDATES AND NEW DEVELOPMENTS

Udinsk and Lobo-Marte studies

Kinross has completed the pre-feasibility study for the Udinsk project in Russia and the feasibility study for the Lobo-Marte project in Chile.

The results of the studies reaffirm the projects’ potential as significant open pit mines with large production profiles, low costs and attractive returns that are highly leveraged to the gold price. The projects can potentially add a combined 6.7 million gold ounces to Kinross’ future production profile and represent a total of 9.7 million gold ounces of the Company’s current probable mineral reserve estimates.

Both projects are located in jurisdictions where Kinross has extensive and successful operational experience. The projects have rigorous project plans in place that take into account local environmental considerations, and include robust local community outreach and engagement.

Tasiast 24k

The Tasiast 24k project is advancing well and is on schedule to reach throughput of 21,000 tonnes per day by the end of Q1 2022, and then 24,000 tonnes per day by mid-2023. The first phase of the project is 96% complete and planning for commissioning is well-advanced. The first tests of the power plant have been successful, commissioning is progressing well, and the plant is on schedule to be operational by year-end.

Alaska projects

At the 70%-owned Manh Choh project, feasibility study work is proceeding well, with community engagement and permitting activities also advancing. The study is on schedule to be completed by the end of 2022 and production is expected to commence in 2024.

Mining activities have now commenced at the Gil satellite pits, which are located approximately 13 kilometres east of Fort Knox. The first blast at the site occurred in September and first production is expected before year-end. The Company plans to haul Gil ore to the Fort Knox mill for processing using the mine’s existing road network.

La Coipa

The La Coipa Restart project continues to advance well and is on budget and on schedule to commence production in mid-2022, with pre-stripping progressing as planned. Plant refurbishments are approximately 60% complete and mine road construction is now approximately 85% complete. The Company continues to study potential mine life extensions by incorporating adjacent deposits into La Coipa’s mine plans and expects to provide an update in the first quarter of 2022.

Other developments

Share buyback update

On July 28, 2021, Kinross received approval from the Toronto Stock Exchange to establish a normal course issuer bid (“NCIB”) program to purchase up to 63,096,676 of its common shares (representing 5% of the Company’s issued and outstanding common shares outstanding as at July 27, 2021), during the period starting on August 3, 2021 and ending on August 2, 2022.

As of November 10, 2021, the Company had repurchased and cancelled 8.6 million of its common shares for $50.0 million.

Tasiast mill re-start update

Kinross has made excellent progress re-starting the Tasiast mill after the fire on June 15, 2021. The new trommel has been installed and mechanical testing at pre-incident throughput levels has been successful. The mill is now ramping up and is processing lower grade stockpile during this phase. In December, the mill is expected to achieve sustained throughput levels comparable to the first half of the year and the site is expected to produce approximately 15,000 gold equivalent ounces during the fourth quarter of 2021.

The mill re-start cost was approximately $20 million, which was below the previously lowered $35 million estimate disclosed in July 2021.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

5.	CONSOLIDATED RESULTS OF OPERATIONS

Operating Highlights

	Three months ended September 30,											Nine months ended September 30,
(in millions, except ounces and per ounce amounts)	2021			2020		Change			% Change^(d)			2021		2020		Change			% Change^(d)
Operating Statistics
Total gold equivalent ounces^(a)
Produced^(b)		486,819			607,744		(120,925	)		(20%	)		1,591,939		1,755,363		(163,424	)		(9%	)
Sold^(b)		481,959			593,218		(111,259	)		(19%	)		1,586,028		1,738,379		(152,351	)		(9%	)

Attributable gold equivalent ounces^(a)
Produced^(b)		483,060			603,312		(120,252	)		(20%	)		1,579,928		1,742,616		(162,688	)		(9%	)
Sold^(b)		478,459			588,559		(110,100	)		(19%	)		1,574,362		1,725,778		(151,416	)		(9%	)

Gold ounces - sold		464,607			577,822		(113,215	)		(20%	)		1,538,602		1,702,089		(163,487	)		(10%	)
Silver ounces - sold (000's)		1,274			1,211		63			5%			3,325		3,278		47			1%
Average realized gold price per ounce^(c)	$	1,790		$	1,908	$	(118	)		(6%	)	$	1,797	$	1,736	$	61			4%

Financial data
Metal sales	$	862.5		$	1,131.3	$	(268.8	)		(24%	)	$	2,849.9	$	3,018.3	$	(168.4	)		(6%	)
Production cost of sales	$	421.0		$	439.4	$	(18.4	)		(4%	)	$	1,300.9	$	1,289.2	$	11.7			1%
Depreciation, depletion and amortization	$	208.8		$	204.8	$	4.0			2%		$	641.6	$	608.3	$	33.3			5%
Reversal of impairment charge	$	-		$	-	$	-		nm			$	-	$	48.3	$	(48.3	)	nm
Operating earnings	$	72.9		$	393.4	$	(320.5	)		(81%	)	$	509.1	$	907.1	$	(398.0	)		(44%	)
Net (loss) earnings attributable to common shareholders	$	(44.9	)	$	240.7	$	(285.6	)		(119%	)	$	223.9	$	559.1	$	(335.2	)		(60%	)

(a)	"Total" includes 100% of Chirano production. "Attributable" includes Kinross' share of Chirano (90%) production.

(b)

(c)	"Average realized gold price per ounce" is a non-GAAP financial measure and is defined in Section 11.

(d)	“nm” means not meaningful.

Operating Earnings (Loss) by Segment

	Three months ended September 30,												Nine months ended September 30,
(in millions)	2021			2020			Change			% Change^(c)			2021			2020			Change			% Change
Operating segments
Fort Knox	$	29.4		$	38.5		$	(9.1	)		(24%	)	$	65.3		$	36.0		$	29.3			81%
Round Mountain		14.1			74.1			(60.0	)		(81%	)		90.4			199.8			(109.4	)		(55%	)
Bald Mountain		(16.2	)		9.5			(25.7	)	nm				(17.8	)		21.1			(38.9	)		(184%	)
Paracatu		89.4			104.3			(14.9	)		(14%	)		289.2			275.9			13.3			5%
Kupol^(a)		111.1			135.0			(23.9	)		(18%	)		336.1			311.1			25.0			8%
Tasiast		(70.6	)		65.4			(136.0	)	nm				(26.0	)		151.9			(177.9	)		(117%	)
Chirano		(8.0	)		14.3			(22.3	)		(156%	)		(14.8	)		15.4			(30.2	)		(196%	)
Non-operating segment
Corporate and other^(b)		(76.3	)		(47.7	)		(28.6	)		(60%	)		(213.3	)		(104.1	)		(109.2	)		(105%	)
Total	$	72.9		$	393.4		$	(320.5	)		(81%	)	$	509.1		$	907.1		$	(398.0	)		(44%	)

(a)	The Kupol segment includes the Kupol and Dvoinoye mines. Mining activities at Dvoinoye were completed in the fourth quarter of 2020.

(b)

"Corporate and other" includes operating costs which are not directly related to individual mining properties such as overhead expenses, gains and losses on disposal of assets and investments, and other costs relating to corporate, shutdown, and other non-operating assets (including Chulbatkan, Kettle River-Buckhorn, La Coipa, Lobo-Marte, Manh Choh and Maricunga).

(c)	“nm” means not meaningful.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Mining Operations

Fort Knox (100% ownership and operator) – USA

	Three months ended September 30,										Nine months ended September 30,
	2021		2020		Change			% Change^(c)			2021		2020		Change			% Change
Operating Statistics
Tonnes ore mined (000's)		8,024		7,202		822			11%			25,758		20,112		5,646			28%
Tonnes processed (000's)^(a)		8,616		8,161		455			6%			27,566		22,546		5,020			22%
Grade (grams/tonne)^(b)		0.77		0.67		0.10			15%			0.69		0.67		0.02			3%
Recovery^(b)		81.6%		82.7%		(1.1%	)		(1%	)		80.9%		82.1%		(1.2%	)		(1%	)
Gold equivalent ounces:
Produced		71,336		72,705		(1,369	)		(2%	)		190,453		180,402		10,051			6%
Sold		71,482		73,267		(1,785	)		(2%	)		189,206		180,500		8,706			5%

Financial Data (in millions)
Metal sales	$	128.2	$	138.3	$	(10.1	)		(7%	)	$	339.7	$	315.6	$	24.1			8%
Production cost of sales		67.7		69.5		(1.8	)		(3%	)		193.1		200.2		(7.1	)		(4%	)
Depreciation, depletion and amortization		29.7		27.9		1.8			6%			78.9		74.0		4.9			7%
		30.8		40.9		(10.1	)		(25%	)		67.7		41.4		26.3			64%
Other operating expense		-		0.9		(0.9	)	nm				0.5		2.0		(1.5	)		(75%	)
Exploration and business development		1.4		1.5		(0.1	)		(7%	)		1.9		3.4		(1.5	)		(44%	)
Segment operating earnings	$	29.4	$	38.5	$	(9.1	)		(24%	)	$	65.3	$	36.0	$	29.3			81%

(a)	Includes 6,395,000 and 21,655,000 tonnes placed on the heap leach pad during the third quarter and first nine months of 2021, respectively (third quarter and first nine months of 2020 – 5,497,000 and 15,973,000 tonnes, respectively).

(b)

Amount represents mill grade and recovery only. Ore placed on the heap leach pads had an average grade of 0.20 and 0.21 grams per tonne during the third quarter and first nine months of 2021, respectively (third quarter and first nine months of 2020 – 0.19 and 0.22 grams per tonne, respectively). Due to the nature of heap leach operations, point-in-time recovery rates are not meaningful.

(c)	“nm” means not meaningful.

Third quarter 2021 vs. Third quarter 2020

Tonnes of ore mined increased by 11% in the third quarter of 2021 largely due to planned mine sequencing. During the third quarter of 2021, mining activities were focused on mining a higher proportion of leachable ore from Phase 8 East and Phase 9. Tonnes of ore processed increased by 6%, compared to the third quarter of 2020, due to the increase in tonnes of ore mined and placed on the heap leach pads, partially offset by lower mill throughput. Mill grades increased by 15% due to mine sequencing. Gold equivalent ounces produced and sold both decreased by 2%, respectively, compared to the third quarter of 2020, largely due to lower mill throughput and the timing of ounces processed through the mill, partially offset by an increase in ounces recovered from the heap leach pads and the increase in grades. Gold equivalent ounces sold in the third quarter of 2021 were higher than production due to timing of sales.

During the third quarter of 2021, metal sales decreased by 7%, compared to the same period in 2020, due to the decreases in gold equivalent ounces sold and average metal prices realized. Production cost of sales decreased by 3% compared to the third quarter of 2020, due to the decrease in gold equivalent ounces sold. During the third quarter of 2021, depreciation, depletion, and amortization increased by 6% compared to the same period in 2020, due to an increase in the depreciable asset base, largely related to the Gilmore project, partially offset by the decrease in gold equivalent ounces sold.

First nine months of 2021 vs. First nine months of 2020

In the first nine months of 2021, tonnes of ore mined increased by 28%, compared to the same period in 2020, largely due to planned mine sequencing. During the first nine months, mining activities were focused on mining a higher proportion of leachable ore from Phase 8 East and Phase 9. Tonnes of ore processed increased by 22%, compared to the first nine months of 2020, primarily due to the increase in tonnes of ore mined and placed on the heap leach pads, partially offset by lower mill throughput. Mill grades increased by 3% due to mine sequencing. Gold equivalent ounces produced and sold in the first nine months of 2021 increased by 6% and 5%, respectively, compared to the same period in 2020, due to an increase in ounces recovered from the heap leach pads, partially offset by lower mill throughput.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Metal sales increased by 8% in the first nine months of 2021, compared to the same period in 2020, due to the increase in gold equivalent ounces sold and the increase in average metal prices realized. Production cost of sales decreased by 4% in the first nine months of 2021, compared to the same period in 2020, largely due to the higher proportion of less costly ounces produced from the Barnes Creek heap leach pad, partially offset by an increase in gold equivalent ounces sold. Depreciation, depletion, and amortization increased by 7% in the first nine months of 2021, compared to the same period in 2020, due to an increase in gold equivalent ounces sold and an increase in the depreciable asset base largely related to the Gilmore project.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Round Mountain (100% ownership and operator) – USA

	Three months ended September 30,										Nine months ended September 30,
	2021		2020		Change			% Change^(c)			2021		2020		Change			% Change^(c)
Operating Statistics
Tonnes ore mined (000's)		1,531		6,085		(4,554	)		(75%	)		7,925		14,216		(6,291	)		(44%	)
Tonnes processed (000's)^(a)		5,357		6,856		(1,499	)		(22%	)		14,037		16,672		(2,635	)		(16%	)
Grade (grams/tonne)^(b)		0.63		0.79		(0.16	)		(20%	)		0.62		0.81		(0.19	)		(23%	)
Recovery^(b)		76.3%		82.7%		(6.4%	)		(8%	)		78.0%		83.3%		(5.3%	)		(6%	)
Gold equivalent ounces:
Produced		63,242		76,039		(12,797	)		(17%	)		205,456		234,855		(29,399	)		(13%	)
Sold		61,405		72,717		(11,312	)		(16%	)		207,218		229,519		(22,301	)		(10%	)

Financial Data (in millions)
Metal sales	$	109.7	$	138.8	$	(29.1	)		(21%	)	$	372.1	$	396.4	$	(24.3	)		(6%	)
Production cost of sales		60.8		49.7		11.1			22%			184.1		157.4		26.7			17%
Depreciation, depletion and amortization		16.3		11.6		4.7			41%			50.7		34.4		16.3			47%
		32.6		77.5		(44.9	)		(58%	)		137.3		204.6		(67.3	)		(33%	)
Other operating expense		16.2		0.4		15.8		nm				43.2		1.0		42.2		nm
Exploration and business development		2.3		3.0		(0.7	)		(23%	)		3.7		3.8		(0.1	)		(3%	)
Segment operating earnings	$	14.1	$	74.1	$	(60.0	)		(81%	)	$	90.4	$	199.8	$	(109.4	)		(55%	)

(a)	Includes 4,442,000 and 11,013,000 tonnes placed on the heap leach pads during the third quarter and first nine months of 2021, respectively (third quarter and first nine months of 2020 – 5,884,000 and 13,836,000 tonnes, respectively).

(b)

Amount represents mill grade and recovery only. Ore placed on the heap leach pads had an average grade of 0.29 and 0.37 grams per tonne during the third quarter and first nine months of 2021, respectively (third quarter and first nine months of 2020 – both 0.39 grams per tonne). Due to the nature of heap leach operations, point-in-time recovery rates are not meaningful.

(c)	“nm” means not meaningful.

Third quarter 2021 vs. Third quarter 2020

Tonnes of ore mined decreased by 75%, compared to the third quarter of 2020. Mining activities continued to be impacted by precautionary measures taken after wall instability in the north wall of the pit was detected by the site’s comprehensive monitoring system late in the first quarter of 2021. Proactive mitigation efforts have been successful and stabilized the wall. These measures include dewatering and moving waste material at the top of the pit, which have resulted in some unplanned gold recoveries. Mining continued in other parts of the pit during the third quarter of 2021. The mine optimization program – which is evaluating further de-risking initiatives to enhance the stability of the wall and the Phase S pushback – is advancing well and is expected to be complete in the second quarter of 2022.

Tonnes of ore processed decreased by 22%, compared to the third quarter of 2020, largely due to a decrease in tonnes of ore placed on the heap leach pads. Mill grades and recovery decreased by 20% and 8%, respectively, compared to the third quarter of 2020, due to mine sequencing. Gold equivalent ounces produced and sold decreased by 17% and 16%, respectively, compared to the third quarter of 2020, due to fewer ounces recovered from the heap leach pads, and lower mill grade and throughput.

Metal sales decreased by 21% in the third quarter of 2021 compared to the same period in 2020, due to the decreases in gold equivalent ounces sold and average metal prices realized. Production cost of sales increased by 22% compared to the third quarter of 2020, primarily due to higher operating waste mined and increases in production taxes, partially offset by the decrease in gold equivalent ounces sold. Depreciation, depletion and amortization increased by 41% in the third quarter of 2021 compared to the same period in 2020, due to an increase in the depreciable asset base, largely related to the completion of Phase W construction, partially offset by the decrease in gold equivalent ounces sold. In the third quarter of 2021, other operating expense included $16.1 million of costs associated with stabilizing the north wall.

First nine months of 2021 vs. First nine months of 2020

In the first nine months of 2021, tonnes of ore mined decreased by 44%, compared to the same period in 2020. As mentioned above, mining activities were impacted by precautionary measures taken after wall instability in the north wall of the pit was detected by the site’s comprehensive monitoring system late in the first quarter of 2021. The site deferred mining in the area, which delayed access to Phase W ore and affected production in the first nine months of 2021. Tonnes of ore processed decreased by 16%, compared to the first nine months of 2020 largely due to a decrease in tonnes placed on the heap leach pads. Mill grades decreased by 23% compared to the first nine months of 2020, due to mine sequencing. In the first nine months of 2021, gold equivalent ounces produced

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

and sold decreased by 13% and 10%, respectively, compared to the same period in 2020, primarily due to lower mill grades and the timing of ounces recovered from the heap leach pads. Gold equivalent ounces sold in the first nine months of 2021 were higher than production due to timing of sales.

Metal sales decreased by 6% in the first nine months of 2021 compared to same period in 2020 due to the decrease in gold equivalent ounces sold, partially offset by the increase in average metal prices realized. Production cost of sales increased by 17% in the first nine months of 2021 compared to same period 2020, largely due to higher operating waste mined, and increases in royalties and production taxes, partially offset by the decrease in gold equivalent ounces sold. Depreciation, depletion and amortization increased by 47% mainly due to an increase in the depreciable asset base, largely related to the completion of Phase W construction, partially offset by the decrease in gold equivalent ounces sold. In the first nine months of 2021, other operating expense included $42.7 million of costs associated with stabilizing the north wall.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Bald Mountain (100% ownership and operator) – USA

	Three months ended September 30,											Nine months ended September 30,
	2021			2020		Change			% Change^(b)			2021			2020		Change			% Change
Operating Statistics^(a)
Tonnes ore mined (000's)		5,941			4,922		1,019			21%			13,841			12,227		1,614			13%
Tonnes processed (000's)		5,941			4,922		1,019			21%			13,841			12,227		1,614			13%
Grade (grams/tonne)		0.46			0.56		(0.10	)		(18%	)		0.51			0.55		(0.04	)		(7%	)
Gold equivalent ounces:
Produced		55,559			49,339		6,220			13%			143,854			139,795		4,059			3%
Sold		52,874			37,492		15,382			41%			142,507			129,462		13,045			10%

Financial Data (in millions)
Metal sales	$	94.9		$	72.5	$	22.4			31%		$	255.7		$	224.1	$	31.6			14%
Production cost of sales		48.8			32.1		16.7			52%			127.4			110.5		16.9			15%
Depreciation, depletion and amortization		59.4			27.1		32.3			119%			138.7			84.0		54.7			65%
		(13.3	)		13.3		(26.6	)	nm				(10.4	)		29.6		(40.0	)		(135%	)
Other operating expense		0.3			1.4		(1.1	)		(79%	)		1.5			4.8		(3.3	)		(69%	)
Exploration and business development		2.6			2.4		0.2			8%			5.9			3.7		2.2			59%
Segment operating (loss) earnings	$	(16.2	)	$	9.5	$	(25.7	)	nm			$	(17.8	)	$	21.1	$	(38.9	)		(184%	)

(a)	Due to the nature of heap leach operations, point-in-time recovery rates are not meaningful.

(b)	“nm” means not meaningful.

Third quarter 2021 vs. Third quarter 2020

In the third quarter of 2021, tonnes of ore mined and processed each increased by 21%, compared to the third quarter of 2020, due to planned mine sequencing, as mining activities shifted to the North Area by the end of the third quarter with the completion of mining in the Vantage pit in August of 2021. Grades decreased by 18% due to planned mine sequencing. Gold equivalent ounces produced and sold increased by 13% and 41%, respectively, compared to the third quarter of 2020, largely due to the timing of ounces recovered from the heap leach pads and timing of sales in the third quarter of 2020.

In the third quarter of 2021, metal sales increased by 31% compared to the same period in 2020, due to the increase in gold equivalent ounces sold, partially offset by the decrease in average metal prices realized. Production cost of sales increased by 52% compared to the third quarter of 2020, due to the increase in gold equivalent ounces sold and higher operating waste mined. Depreciation, depletion and amortization increased by 119% compared to the third quarter of 2020, primarily due to the increases in gold equivalent ounces sold and the depreciable asset base.

First nine months of 2021 vs. First nine months of 2020

In the first nine months of 2021, tonnes of ore mined and processed each increased by 13%, and grades decreased by 7%, compared to the same period in 2020, due to planned mine sequencing. Gold equivalent ounces produced and sold increased by 3% and 10% in the first nine months of 2021, respectively, compared to the same period in 2020, due to the timing of ounces recovered from the heap leach pads and timing of sales.

In the first nine months of 2021, metal sales increased by 14% compared to the same period in 2020, due to the increase in gold equivalent ounces sold and the increase in average metal prices realized. Production cost of sales in the first nine months of 2021 increased by 15% compared to the same period in 2020, due to the increase in gold equivalent ounces sold and higher operating waste mined. Depreciation, depletion and amortization increased by 65% compared to the first nine months of 2020, due to the increases in the depreciable asset base and gold equivalent ounces sold.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Paracatu (100% ownership and operator) – Brazil

	Three months ended September 30,										Nine months ended September 30,
	2021		2020		Change			% Change^(a)			2021		2020		Change			% Change^(a)
Operating Statistics
Tonnes ore mined (000's)		14,107		12,468		1,639			13%			39,343		40,042		(699	)		(2%	)
Tonnes processed (000's)		15,085		13,673		1,412			10%			44,595		41,600		2,995			7%
Grade (grams/tonne)		0.37		0.38		(0.01	)		(3%	)		0.37		0.39		(0.02	)		(5%	)
Recovery		75.5%		74.0%		1.5%			2%			75.7%		74.4%		1.3%			2%
Gold equivalent ounces:
Produced		134,425		131,000		3,425			3%			411,891		394,217		17,674			4%
Sold		133,924		128,782		5,142			4%			404,209		390,625		13,584			3%

Financial Data (in millions)
Metal sales	$	239.8	$	245.3	$	(5.5	)		(2%	)	$	725.6	$	677.9	$	47.7			7%
Production cost of sales		103.7		96.6		7.1			7%			295.2		267.7		27.5			10%
Depreciation, depletion and amortization		44.5		42.4		2.1			5%			132.9		125.3		7.6			6%
		91.6		106.3		(14.7	)		(14%	)		297.5		284.9		12.6			4%
Other operating expense		2.0		2.0		-			0%			7.7		9.0		(1.3	)		(14%	)
Exploration and business development		0.2		-		0.2		nm				0.6		-		0.6		nm
Segment operating earnings	$	89.4	$	104.3	$	(14.9	)		(14%	)	$	289.2	$	275.9	$	13.3			5%

(a)	“nm” means not meaningful.

Third quarter 2021 vs. Third quarter 2020

Tonnes of ore mined increased by 13% compared to the third quarter of 2020, largely due to planned mine sequencing. Tonnes of ore processed increased by 10% compared to the third quarter of 2020, as a result of the increase in ore mined and higher mill availability. Production was impacted by grade variability encountered during the quarter. Grades decreased by 3% compared to the third quarter of 2020 due to planned mine sequencing. In the third quarter of 2021, gold equivalent ounces produced and sold increased by 3% and 4%, respectively, compared to the same period in 2020, primarily due to the increase in tonnes of ore processed and higher recoveries, partially offset by the timing of ounces processed through the mill and lower grades.

Metal sales decreased by 2% compared to the third quarter of 2020, due to the decrease in average metal prices realized, partially offset by the increase in gold equivalent ounces sold. Production cost of sales increased by 7% compared to the same period in 2020, largely due to increases in gold equivalent ounces sold, operating waste mined and energy costs, as well as inflationary pressures on consumables, partially offset by a decrease in maintenance supplies. Depreciation, depletion and amortization increased by 5% compared to the third quarter of 2020 due to increases in gold equivalent ounces sold and the depreciable asset base.

First nine months of 2021 vs. First nine months of 2020

In the first nine months of 2021, tonnes of ore mined decreased by 2% compared to the same period in 2020, largely due to planned mine sequencing. Tonnes of ore processed increased by 7% compared to the same period in 2020, mainly due to an increase in mill availability. Grades decreased by 5% in the first nine months of 2021, compared to the same period in 2020, largely due to planned mine sequencing. Gold equivalent ounces produced and sold increased by 4% and 3%, respectively, compared to the first nine months of 2020, largely due to higher mill throughput and recoveries, partially offset by the decrease in grades.

Metal sales for the first nine months of 2021 increased by 7% compared to the same period in 2020, due to increases in average metal prices realized and gold equivalent ounces sold. In the first nine months of 2021, production cost of sales increased by 10%, compared to the same period in 2020, largely due to increases in gold equivalent ounces sold, operating waste mined, contractor and energy costs, as well as inflationary pressures on consumables, partially offset by favourable foreign exchange movements. Depreciation, depletion and amortization increased by 6% in the first nine months of 2021, compared to the same period in 2020, due to increases in gold equivalent ounces sold and the depreciable asset base.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Kupol (100% ownership and operator) – Russian Federation^(a)

	Three months ended September 30,										Nine months ended September 30,
	2021		2020		Change			% Change^(d)			2021		2020		Change			% Change
Operating Statistics
Tonnes ore mined (000's)^(b)		316		365		(49	)		(13%	)		947		1,251		(304	)		(24%	)
Tonnes processed (000's)		425		430		(5	)		(1%	)		1,267		1,272		(5	)		(0%	)
Grade (grams/tonne):
Gold		8.29		8.99		(0.70	)		(8%	)		8.48		9.14		(0.66	)		(7%	)
Silver		72.71		74.19		(1.48	)		(2%	)		73.30		69.09		4.21			6%
Recovery:
Gold		95.9%		94.9%		1.0%			1%			95.0%		94.9%		0.1%			0%
Silver		87.2%		88.4%		(1.2%	)		(1%	)		85.0%		86.3%		(1.3%	)		(2%	)
Gold equivalent ounces:^(c)
Produced		120,822		128,144		(7,322	)		(6%	)		364,929		380,012		(15,083	)		(4%	)
Sold		121,798		126,637		(4,839	)		(4%	)		365,075		379,432		(14,357	)		(4%	)
Silver ounces:
Produced (000's)		946		887		59			7%			2,536		2,375		161			7%
Sold (000's)		1,004		877		127			14%			2,531		2,376		155			7%

Financial Data (in millions)
Metal sales	$	217.7	$	241.4	$	(23.7	)		(10%	)	$	655.0	$	657.8	$	(2.8	)		(0%	)
Production cost of sales		81.8		69.2		12.6			18%			231.0		225.4		5.6			2%
Depreciation, depletion and amortization		18.3		27.0		(8.7	)		(32%	)		53.4		92.5		(39.1	)		(42%	)
		117.6		145.2		(27.6	)		(19%	)		370.6		339.9		30.7			9%
Other operating expense		1.3		9.5		(8.2	)		(86%	)		23.1		24.8		(1.7	)		(7%	)
Exploration and business development		5.2		0.7		4.5		nm				11.4		4.0		7.4			185%
Segment operating earnings	$	111.1	$	135.0	$	(23.9	)		(18%	)	$	336.1	$	311.1	$	25.0			8%

(a)	The Kupol segment includes the Kupol and Dvoinoye mines. Mining activities were completed at Dvoinoye in the fourth quarter of 2020.

(b)	Tonnes of ore mined relates entirely to the Kupol mine during the third quarter and first nine months of 2021 (third quarter and first nine months of 2020 included 67,000 and 303,000 tonnes of ore mined from Dvoinoye, respectively).

(c)

(d)	“nm” means not meaningful.

Third quarter 2021 vs. Third quarter 2020

Tonnes of ore mined decreased by 13% compared to the third quarter of 2020, largely due to the completion of mining activities at Dvoinoye in November 2020. Mill grades decreased by 8%, compared to the third quarter of 2020, consistent with the mine plan. Gold equivalent ounces produced and sold decreased by 6% and 4%, respectively, mainly due to lower grades, partially offset by higher gold recovery. Gold equivalent ounces sold in the third quarter of 2021 were higher than production due to timing of sales.

During the third quarter of 2021, metal sales decreased by 10% compared to the same period in 2020, due to decreases in average metal prices realized and gold equivalent ounces sold. Production cost of sales increased by 18% compared to the third quarter of 2020, mainly due to higher mining costs, partially offset by the decrease in gold equivalent ounces sold. Depreciation, depletion and amortization decreased by 32% compared to the third quarter of 2020, largely due to a decrease in the depreciable asset base related to the completion of mining activities at Dvoinoye and the decrease in gold equivalent ounces sold.

First nine months of 2021 vs. First nine months of 2020

Tonnes of ore mined in the first nine months of 2021 decreased by 24%, compared to same period in 2020, largely due to the completion of mining activities at Dvoinoye in November 2020. Mill grades decreased by 7%, compared to the first nine months of 2020, consistent with the mine plan. Gold equivalent ounces produced and sold each decreased by 4%, mainly due to lower grades, partially offset by the timing of ounces processed through the mill. Gold equivalent ounces sold in the first nine months of 2021 were higher than production due to timing of sales.

Metal sales for the first nine months of 2021 were comparable to the same period in 2020, due to the decrease in gold equivalent ounces sold being largely offset by the increase in average metal prices realized. In the first nine months of 2021, production cost of sales increased by 2%, mainly due to higher mining costs, partially offset by the decrease in gold equivalent ounces sold. Depreciation,

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

depletion and amortization decreased by 42% compared to the third quarter of 2020, largely due to a decrease in the depreciable asset base related to the completion of mining activities at Dvoinoye and the decrease in gold equivalent ounces sold.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Tasiast (100% ownership and operator) – Mauritania

	Three months ended September 30,											Nine months ended September 30,
	2021			2020		Change			% Change^(a)			2021			2020		Change			% Change
Operating Statistics
Tonnes ore mined (000's)		822			1,338		(516	)		(39%	)		2,483			3,632		(1,149	)		(32%	)
Tonnes processed (000's)		-			1,244		(1,244	)	nm				2,665			3,879		(1,214	)		(31%	)
Grade (grams/tonne)		-			2.78		(2.78	)	nm				1.77			2.49		(0.72	)		(29%	)
Recovery		0.0%			94.2%		(94.2%	)	nm				94.3%			94.5%		(0.2%	)		(0%	)
Gold equivalent ounces:
Produced		3,847			103,065		(99,218	)		(96%	)		155,249			295,481		(140,232	)		(47%	)
Sold		4,822			103,295		(98,473	)		(95%	)		159,187			295,924		(136,737	)		(46%	)

Financial Data (in millions)
Metal sales	$	8.7		$	197.6	$	(188.9	)		(96%	)	$	288.1		$	514.9	$	(226.8	)		(44%	)
Production cost of sales		8.3			65.2		(56.9	)		(87%	)		112.8			174.9		(62.1	)		(36%	)
Depreciation, depletion and amortization		21.3			50.2		(28.9	)		(58%	)		123.8			145.3		(21.5	)		(15%	)
		(20.9	)		82.2		(103.1	)		(125%	)		51.5			194.7		(143.2	)		(74%	)
Other operating expense		48.7			16.4		32.3			197%			75.4			41.7		33.7			81%
Exploration and business development		1.0			0.4		0.6			150%			2.1			1.1		1.0			91%
Segment operating (loss) earnings	$	(70.6	)	$	65.4	$	(136.0	)	nm			$	(26.0	)	$	151.9	$	(177.9	)		(117%	)

(a)	“nm” means not meaningful.

Third quarter 2021 vs. Third quarter 2020

Tonnes of ore mined decreased by 39% compared to the third quarter of 2020, mainly due to mine sequencing involving an increase in capital development in West Branch 4, following the completion of mining in West Branch 3 in the first quarter of 2021. Overall mining rates in the third quarter of 2021 were impacted as a result of challenges with drilling and blasting. Processing activities in the third quarter of 2021 were impacted by the suspension of milling operations due to the mill fire on June 15, 2021. As a result, gold equivalent ounces produced and sold in the third quarter of 2021 decreased by 96% and 95%, respectively, compared to the same period in 2020. The mill is now ramping up and is expected to return to sustained pre-incident throughput levels in December 2021. Gold equivalent ounces sold in the third quarter of 2021 were higher than production due to timing of sales.

In the third quarter of 2021, metal sales decreased by 96% compared to the third quarter of 2020, due to the decrease in gold equivalent ounces sold. Production cost of sales decreased by 87% in the third quarter of 2021 compared to the third quarter of 2020, primarily due to decreases in gold equivalent ounces sold, partially offset by increases in contractor and maintenance costs. Depreciation, depletion and amortization decreased by 58%, compared to the third quarter of 2020, primarily due to the decrease in gold equivalent ounces sold, partially offset by an increase in the depreciable asset base, largely related to the reversal of property, plant and equipment impairment at the end of 2020. In the third quarter of 2021, other operating expense included $29.1 million of costs associated with the mill fire.

First nine months of 2021 vs. First nine months of 2020

Tonnes of ore mined in the first nine months of 2021 decreased by 32% compared to the first nine months of 2020, primarily due to mine sequencing involving an increase in capital development in West Branch 4, following the completion of mining in West Branch 3 in the first quarter of 2021. Tonnes of ore processed in the first nine months of 2021 decreased by 31% compared to the same period in 2020, due to the suspension of milling operations as a result of the mill fire on June 15, 2021. Mill grades in the first nine months of 2021 decreased by 29%, compared to the same period in 2020, mainly due to mine sequencing involving a higher portion of ore milled from stockpile ore. Gold equivalent ounces produced and sold decreased by 47% and 46%, respectively, compared to the first nine months of 2020, primarily due to the suspension of milling operations and lower mill grades. Gold equivalent ounces sold in the first nine months of 2021 were higher than production due to timing of sales.

Metal sales in the first nine months of 2021 decreased by 44%, compared to the first nine months of 2020, due to the decrease in gold equivalent ounces sold, partially offset by the increase in average metal prices realized. In the first nine months of 2021, production cost of sales decreased by 36%, compared to the same period in 2020, primarily due to decreases in gold equivalent ounces sold, operating waste mined and fuel costs, partially offset by increases in contractor and maintenance costs. Depreciation, depletion and amortization decreased by 15%, compared to the first nine months of 2020, primarily due to the decrease in gold equivalent ounces sold, largely offset by an increase in the depreciable asset base, primarily related to the reversal of property, plant and equipment impairment at the end of 2020. In the first nine months of 2021, other operating expense included $34.2 million of costs associated with the mill fire.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Chirano (90% ownership and operator) – Ghana^(a)

	Three months ended September 30,											Nine months ended September 30,
	2021			2020		Change			% Change			2021			2020		Change			% Change
Operating Statistics
Tonnes ore mined (000's)		802			768		34			4%			2,470			2,138		332			16%
Tonnes processed (000's)		881			815		66			8%			2,564			2,474		90			4%
Grade (grams/tonne)		1.54			1.87		(0.33	)		(18%	)		1.63			1.82		(0.19	)		(10%	)
Recovery		86.8%			88.0%		(1.2%	)		(1%	)		87.5%			87.9%		(0.4%	)		(0%	)
Gold equivalent ounces:
Produced		37,588			44,320		(6,732	)		(15%	)		120,107			127,469		(7,362	)		(6%	)
Sold		34,999			46,586		(11,587	)		(25%	)		116,660			126,005		(9,345	)		(7%	)

Financial Data (in millions)
Metal sales	$	62.4		$	89.1	$	(26.7	)		(30%	)	$	210.2		$	219.2	$	(9.0	)		(4%	)
Production cost of sales		49.4			56.1		(6.7	)		(12%	)		155.9			150.5		5.4			4%
Depreciation, depletion and amortization		17.0			16.1		0.9			6%			57.2			45.1		12.1			27%
		(4.0	)		16.9		(20.9	)		(124%	)		(2.9	)		23.6		(26.5	)		(112%	)
Other operating expense		0.5			0.2		0.3			150%			2.5			0.9		1.6			178%
Exploration and business development		3.5			2.4		1.1			46%			9.4			7.3		2.1			29%
Segment operating (loss) earnings	$	(8.0	)	$	14.3	$	(22.3	)		(156%	)	$	(14.8	)	$	15.4	$	(30.2	)		(196%	)

(a)	Operating and financial data are at 100% for all periods.

Third quarter 2021 vs. Third quarter 2020

In the third quarter of 2021, tonnes of ore mined increased by 4%, compared to the third quarter of 2020, primarily due to an increase in ore mined from the Akoti Main and Mamnao open pits, partially offset by fewer ore tonnes mined from the Paboase and Akwaaba underground deposits. Tonnes of ore processed increased by 8% compared to the third quarter of 2020, largely due to an increase in mill availability in the third quarter of 2021 compared to the same period in 2020. Mill grade decreased by 18% in the third quarter of 2021, compared to the same period in 2020, due to lower grade ore mined at the underground deposits. Gold equivalent ounces produced and sold decreased by 15% and 25%, respectively, compared to the third quarter of 2020, primarily due to the decrease in grades, partially offset by the increase in mill throughput.

Metal sales decreased by 30%, compared to the third quarter of 2020, due to decreases in gold equivalent ounces sold and average metal prices realized. Production cost of sales decreased by 12% in the third quarter of 2021, largely due to the decrease in gold equivalent ounces sold, partially offset by increases in contractor and energy costs. Depreciation, depletion and amortization increased by 6% compared to the third quarter of 2020, primarily due to an increase in depreciable asset base, largely related to the reversal of property, plant and equipment impairment at the end of 2020, partially offset by an increase in mineral reserves and the decrease in gold equivalent ounces sold.

First nine months of 2021 vs. First nine months of 2020

Tonnes of ore mined in the first nine months of 2021 increased by 16%, compared to the same period in 2020, primarily due to an increase in ore mined from the Akoti Main and Mamnao open pits. Tonnes of ore processed increased by 4% compared to the first nine months of 2020, largely due to an increase in mill availability in the first nine months of 2021 compared to the same period in 2020. Mill grades decreased by 10% compared to the first nine months of 2020, mainly due to lower grade ore mined at the underground deposits. Gold equivalent ounces produced and sold decreased by 6% and 7%, respectively, compared to the first nine months of 2020, primarily due to the decrease in grades, partially offset by the increase in mill throughput.

In the first nine months of 2021, metal sales decreased by 4%, compared to the same period in 2020, due to the decrease in gold equivalent ounces sold, partially offset by the increase in average metal prices realized. Production cost of sales increased by 4% compared to the first nine months of 2020, mainly due to increases in contractor and energy costs, partially offset by the decrease in gold equivalent ounces sold. Depreciation, depletion and amortization increased by 27%, compared to the first nine months of 2020, primarily due to an increase in the depreciable asset base, largely related to the reversal of property, plant and equipment impairment at the end of 2020, partially offset by the increase in mineral reserves and the decrease in gold equivalent ounces sold.

As previously reported, Kinross’ operating subsidiary Chirano Gold Mines Ltd. (“CGML”), was audited by Ghana’s Ministry of Lands and Natural Resources and the Ghana Mineral Commission pursuant to a country-wide audit of mining activities, including historical

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

mineral sales, exports and related taxes. In connection with this process, CGML received an audit report and provided a comprehensive response clarifying various issues addressed in the report. Following ongoing communications among the parties respecting the audit, the Government of Ghana appointed an ombudsman who provided an independent assessment of the issues addressed in the report. The Government of Ghana established an inter-ministerial committee to review the audit and report issues of concern. CGML continues to cooperate with the relevant agencies and the Government of Ghana in connection with this ongoing process. As part of its cooperative efforts, CGML is exchanging information with the authorities.

Maricunga (100% ownership and operator) – Chile

As a result of the suspension of mining and crushing activities at Maricunga in the fourth quarter of 2019, no ore was mined and processed in both the third quarters of 2021 and 2020.

In the third quarter of 2021, gold equivalent ounces sold of 655 decreased by 85% compared to gold equivalent ounces sold of 4,442 for the third quarter of 2020. No further production is expected while Maricunga continues to sell its remaining finished metals inventories. Metal sales and operating (losses) earnings were $1.1 million and $(2.4) million, respectively, for the third quarter of 2021, compared to $8.3 million and $2.7 million, respectively, for the third quarter of 2020.

In the first nine months of 2021, gold equivalent ounces sold of 1,966 decreased by 72% compared to gold equivalent ounces sold of 6,912 for the first nine months of 2020. Metal sales and operating (losses) earnings were $3.5 million and $(8.2) million, respectively, for the first nine months of 2021, compared to $12.4 million and $(3.3) million, respectively, for the first nine months of 2020.

Reversal of Impairment Charge

	Three months ended September 30,								Nine months ended September 30,
(in millions)	2021		2020		Change		% Change^(a)		2021		2020			Change		% Change^(a)
Property, plant and equipment	$	-	$	-	$	-		nm	$	-	$	(48.3	)	$	48.3		nm

(a)	“nm” means not meaningful.

At June 30, 2020, the Company recorded a partial reversal of previously recorded impairment charges at Lobo-Marte of $48.3 million entirely related to property, plant and equipment as a result of the increase in mineral reserves. There was no tax impact. No impairment charges or reversals were recorded in the third quarter or the first nine months of 2021.

Exploration and Business Development

	Three months ended September 30,								Nine months ended September 30,
(in millions)	2021		2020		Change		% Change		2021		2020		Change		% Change
Exploration and business development	$	36.6	$	24.8	$	11.8		48%	$	96.0	$	61.8	$	34.2		55%

Of the total exploration and business development expense in the third quarter of 2021, expenditures on exploration totaled $30.3 million compared to $19.3 million in the third quarter of 2020. Capitalized exploration expenses, including capitalized evaluation expenditures, totaled $22.5 million for the third quarter of 2021 compared to $5.1 million for the third quarter of 2020.

Kinross was active on 13 mine sites, near-mine and greenfield initiatives in the third quarter of 2021, with a total of 52,571 metres drilled. In the third quarter of 2020, Kinross was active on 13 mine sites, near-mine and greenfield initiatives, with a total of 53,987 metres drilled.

Of the total exploration and business development expense in the first nine months of 2021, expenditures on exploration totaled $77.0 million compared to $41.8 million during the same period in 2020. Capitalized exploration expenses, including capitalized evaluation expenditures, totaled $54.3 million for the first nine months of 2021 compared to $15.3 million for the first nine months of 2020.

Kinross was active on 18 mine sites, near-mine and greenfield initiatives in the first nine months of 2021, with a total of 161,050 metres drilled. In the first nine months of 2020, Kinross was active on 14 mine sites, near-mine and greenfield initiatives, with a total of 132,338 metres drilled.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

General and Administrative

	Three months ended September 30,								Nine months ended September 30,
(in millions)	2021		2020		Change		% Change		2021		2020		Change		% Change
General and administrative	$	29.2	$	25.3	$	3.9		15%	$	94.6	$	81.8	$	12.8		16%

General and administrative costs include expenses related to the overall management of the business which are not part of direct mine operating costs. These are costs that are incurred at corporate offices located in Canada, the United States, Brazil, the Russian Federation, Chile, the Netherlands, and the Canary Islands.

Other Income (Expense) – Net

	Three months ended September 30,												Nine months ended September 30,
(in millions)	2021			2020			Change			% Change^(a)			2021			2020			Change			% Change^(a)
Net losses on dispositions of assets	$	(2.3	)	$	(0.7	)	$	(1.6	)	nm			$	(10.4	)	$	(0.4	)	$	(10.0	)	nm
Foreign exchange gains (losses) - net		6.2			(6.5	)		12.7			195%			(1.4	)		0.9			(2.3	)	nm
Net non-hedge derivative losses		(0.2	)		(1.7	)		1.5			88%			(0.7	)		(5.9	)		5.2			88%
Other - net		(0.1	)		5.5			(5.6	)		(102%	)		3.5			10.6			(7.1	)		(67%	)
Other income (expense) - net	$	3.6		$	(3.4	)	$	7.0		nm			$	(9.0	)	$	5.2		$	(14.2	)	nm

(a)	“nm” means not meaningful.

Other income (expense) - net changed from an expense of $3.4 million in the third quarter of 2020 to income of $3.6 million in the third quarter of 2021, primarily due to foreign exchange gains as a result of the devaluation of various foreign currencies and their resulting impact on foreign denominated expenditures. Other income (expense) – net changed from income of $5.2 million in the first nine months of 2020 to an expense of $9.0 million in the first nine months of 2021, largely due to an increase in net losses on disposition of assets.

Finance Expense

	Three months ended September 30,										Nine months ended September 30,
(in millions)	2021		2020		Change			% Change			2021		2020		Change			% Change
Accretion of reclamation and remediation obligations	$	3.6	$	5.7	$	(2.1	)		(37%	)	$	10.7	$	17.2	$	(6.5	)		(38%	)
Interest expense, including accretion of debt and lease liabilities		15.8		21.7		(5.9	)		(27%	)		48.0		68.7		(20.7	)		(30%	)
Finance expense	$	19.4	$	27.4	$	(8.0	)		(29%	)	$	58.7	$	85.9	$	(27.2	)		(32%	)

Interest expense in the third quarter of 2021 decreased to $15.8 million, compared to $21.7 million in the same period in 2020, due to the drawdown of the revolving credit facility in March 2020, with its full repayment by the end of September 2020, and reduced interest resulting from the repayment of senior notes on June 1, 2021. Interest capitalized in the third quarter of 2021 was $9.1 million compared to $12.2 million in the third quarter of 2020.

Interest expense in the first nine months of 2021 decreased to $48.0 million, compared to $68.7 million in the same period in 2020, due to the drawdown on the revolving credit facility in March 2020, with its full repayment by the end of September 2020, and reduced interest resulting from the repayment of senior notes on June 1, 2021. Interest capitalized in the first nine months of 2021 was $39.1 million compared with $33.9 million in the same period in 2020.

Income and Other Taxes

Kinross is subject to tax in various jurisdictions including Canada, the United States, Brazil, Chile, the Russian Federation, Mauritania, and Ghana.

The Company recorded an income tax expense of $104.7 million in the third quarter of 2021, compared to $121.8 million in the third quarter of 2020. The $104.7 million income tax expense included $14.8 million of deferred tax expense, compared to deferred tax expense of $42.7 million in the third quarter of 2020, resulting from the net foreign currency translation of tax deductions of the Company’s operations in Brazil and Russia. Income tax expense decreased in the third quarter of 2021 compared to the third quarter of 2020, due to differences in the level of income in the Company’s operating jurisdictions from one period to the next. The decrease in income tax expense was offset by additional tax expenses of $49.8 million in the third quarter of 2021 in respect of the settlement

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

of tax amounts relating to prior taxation years. Kinross' combined federal and provincial statutory tax rate for the third quarters of both 2021 and 2020 was 26.5%.

There are a number of factors that can significantly impact the Company’s effective tax rate, including geographical distribution of income, varying rates in different jurisdictions, the non-recognition of tax assets, mining allowance, mining specific taxes, foreign currency exchange movements, changes in tax laws, and the impact of specific transactions and assessments.

In circumstances where the Company and the tax authority cannot reach a consensus on the tax impact, there are processes and procedures which both parties may undertake in order to reach a resolution, which may span many years in the future. The Company assesses the expected outcome of examination of transactions by the tax authorities, and accrues the expected outcome in accordance with International Financial Reporting Standards (“IFRS”).

Uncertainty in the interpretation and application of applicable tax laws, regulations or the relevant sections of Mining Conventions by the tax authorities, or the failure of relevant Governments or tax authorities to honour tax laws, regulations or the relevant sections of Mining Conventions could adversely affect Kinross.

Due to the number of factors that can potentially impact the effective tax rate and the sensitivity of the tax provision to these factors, as discussed above, it is expected that the Company's effective tax rate will fluctuate in future periods.

6.	LIQUIDITY AND CAPITAL RESOURCES

The following table summarizes Kinross’ cash flow activity:

	Three months ended September 30,												Nine months ended September 30,
(in millions)	2021			2020			Change			% Change			2021			2020			Change			% Change^(a)
Cash Flow:
Provided from operating activities	$	269.9		$	544.1		$	(274.2	)		(50%	)	$	937.9		$	1,276.5		$	(338.6	)		(27%	)
Used in investing activities		(259.0	)		(347.1	)		88.1			25%			(854.6	)		(929.7	)		75.1			8%
(Used in) provided from financing activities		(99.1	)		(787.1	)		688.0			87%			(708.4	)		19.8			(728.2	)	nm
Effect of exchange rate changes on cash and cash equivalents		(1.3	)		(3.5	)		2.2			63%			0.3			(8.2	)		8.5			104%
(Decrease) increase in cash and cash equivalents		(89.5	)		(593.6	)		504.1			85%			(624.8	)		358.4			(983.2	)	nm
Cash and cash equivalents, beginning of period		675.6			1,527.1			(851.5	)		(56%	)		1,210.9			575.1			635.8			111%
Cash and cash equivalents, end of period	$	586.1		$	933.5		$	(347.4	)		(37%	)	$	586.1		$	933.5		$	(347.4	)		(37%	)

(a)	“nm" means not meaningful.

During the third quarter of 2021, cash and cash equivalents decreased by $89.5 million compared to a decrease of $593.6 million in the third quarter of 2020. Cash and cash equivalents decreased by $624.8 million in the first nine months of 2021 compared to an increase of $358.4 million in the first nine months of 2020. Detailed discussions regarding cash flow movements are noted below.

Operating Activities

Third quarter 2021 vs. Third quarter 2020

Net cash flow provided from operating activities decreased by $274.2 million compared to the third quarter of 2020, mainly due to the decrease in operating earnings, partially offset by favourable working capital movements.

First nine months of 2021 vs. First nine months of 2020

In the first nine months of 2021, net cash flow provided from operating activities decreased by $338.6 million compared to the same period in 2020, mainly due to the decrease in operating earnings and higher taxes paid, partially offset by favourable working capital movements.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Investing Activities

Third quarter 2021 vs. Third quarter 2020

Net cash flow used in investing activities was $259.0 million in the third quarter of 2021 compared to $347.1 million in the third quarter of 2020.

In the third quarter of 2021, cash was primarily used for capital expenditures of $231.0 million. In the third quarter of 2020, cash was primarily used for capital expenditures of $212.1 million and acquisitions of $122.5 million largely related to the 70% interest in the Manh Choh (formerly known as “Peak”) project. Interest paid capitalized to property, plant and equipment was $14.8 million in the third quarter of 2021 compared to $16.9 million in the same period in 2020.

First nine months of 2021 vs. First nine months of 2020

Net cash flow used in investing activities was $854.6 million in the first nine months of 2021 compared to $929.7 million in the first nine months of 2020.

In the first nine months of 2021, the primary uses of cash were for capital expenditures of $640.6 million, as well as the final installment of $141.5 million paid for the Chulbatkan license. In the first nine months of 2020, the primary uses of cash were for capital expenditures of $617.8 million as well as payments for acquisitions of $250.8 million, primarily related to the acquisitions of the Chulbatkan license and a 70% interest in the Manh Choh project. Interest paid capitalized to property, plant and equipment was $46.5 million in the first nine months of 2021 compared to $43.0 million in the same period in 2020.

The following table presents a breakdown of capital expenditures^(a) on a cash basis:

	Three months ended September 30,										Nine months ended September 30,
(in millions)	2021		2020		Change			% Change			2021		2020		Change			% Change^(d)
Operating segments
Fort Knox	$	37.4	$	39.7	$	(2.3	)		(6%	)	$	81.5	$	92.7	$	(11.2	)		(12%	)
Round Mountain		23.7		39.2		(15.5	)		(40%	)		75.2		117.9		(42.7	)		(36%	)
Bald Mountain		7.7		23.4		(15.7	)		(67%	)		21.8		84.5		(62.7	)		(74%	)
Paracatu		30.0		27.2		2.8			10%			78.3		90.7		(12.4	)		(14%	)
Kupol^(b)		5.4		6.1		(0.7	)		(11%	)		17.7		17.6		0.1			1%
Tasiast		68.1		50.0		18.1			36%			206.9		159.8		47.1			29%
Chirano		9.3		5.0		4.3			86%			32.2		15.9		16.3			103%
Non-operating segment
Corporate and other^(c)		49.4		21.5		27.9			130%			127.0		38.7		88.3		nm
Total	$	231.0	$	212.1	$	18.9			9%		$	640.6	$	617.8	$	22.8			4%

(a)	“Capital expenditures” is as reported as “Additions to property, plant and equipment” on the interim condensed consolidated statement of cash flows.

(b)	Includes $0.3 million and $1.4 million of capital expenditures at Dvoinoye during the third quarter and first nine months of 2021, respectively (third quarter and first nine months of 2020 - $0.4 million and $1.5 million, respectively).

(c)	“Corporate and other” includes corporate and other non-operating assets (including Chulbatkan, Kettle River-Buckhorn, La Coipa, Lobo-Marte, Manh Choh and Maricunga).

(d)	“nm” means not meaningful.

In the third quarter of 2021, capital expenditures increased by $18.9 million, compared to the same period in 2020, mainly due to increased expenditures for development activities at La Coipa, the feasibility study at Lobo-Marte and the pre-feasibility study at Udinsk, and an increase in capital stripping at Tasiast. These increases were partially offset by reduced capital stripping at Bald Mountain and Round Mountain.

In the first nine months of 2021, capital expenditures increased by $22.8 million compared to the same period in 2020. This increase was a result of the increased expenditures for development activities at La Coipa, the feasibility study at Lobo-Marte and the pre-feasibility study at Udinsk, and an increase in capital stripping at Tasiast. These increases were partially offset by reduced capital stripping at Bald Mountain, Round Mountain and Fort Knox.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Financing Activities

Third quarter 2021 vs. Third quarter 2020

Net cash flow used in financing activities was $99.1 million in the third quarter of 2021 compared to $787.1 million in the third quarter of 2020.

In the third quarter of 2021, net cash flow used in financing activities included dividends paid to common shareholders of $37.8 million and payments of $31.8 million for the repurchase and cancellation of shares related to the NCIB program. In the third quarter of 2020, net cash flow used in financing activities primarily related to the repayment of $750.0 million on the revolving credit facility, drawn in March 2020 as a precautionary measure to protect against the economic and business uncertainties caused by the COVID-19 pandemic, and interest payments of $34.1 million. No dividends were paid and no shares were repurchased in the third quarter of 2020.

First nine months of 2021 vs. First nine months of 2020

Net cash flow used in financing activities was $708.4 million in the first nine months of 2021 compared with net cash flow provided from financing activities of $19.8 million in the first nine months of 2020.

In the first nine months of 2021, net cash flow used in financing activities included the $500.0 million repayment of senior notes on June 1, 2021, dividends paid to common shareholders of $113.5 million, interest paid of $46.9 million, and payments of $31.8 million for the repurchase and cancellation of shares related to the NCIB program. In the first nine months of 2020, financing cash flows included a drawdown of $750.0 million from the revolving credit facility in the first quarter of 2020 as a precautionary measure in the early days of the COVID-19 pandemic, and $200.0 million drawn from the $300.0 million Tasiast loan. The Company repaid $100.0 million on the revolving credit facility during the first quarter of 2020, and subsequently repaid the full $750.0 million drawn in the first quarter of 2020 by the end of September 2020.

Balance Sheets

	As at,
	September 30,		December 31,
(in millions)	2021		2020
Cash and cash equivalents	$	586.1	$	1,210.9
Current assets	$	1,962.3	$	2,449.7
Total assets	$	10,411.2	$	10,933.2
Current liabilities, including current portion of long-term debt	$	771.5	$	1,348.4
Total long-term financial liabilities^(a)	$	2,293.8	$	2,331.6
Total debt and credit facilities, including current portion	$	1,428.7	$	1,923.9
Total liabilities	$	3,662.0	$	4,270.2
Common shareholders' equity	$	6,681.0	$	6,596.5
Non-controlling interests	$	68.2	$	66.5
Statistics
Working capital^(b)	$	1,190.8	$	1,101.3
Working capital ratio^(c)	2.54:1		1.82:1

(a)	Includes long-term debt and credit facilities, provisions, and long-term lease liabilities.

(b)	Calculated as current assets less current liabilities.

(c)	Calculated as current assets divided by current liabilities.

At September 30, 2021, Kinross had cash and cash equivalents of $586.1 million, a decrease of $624.8 million from the balance as at December 31, 2020, primarily due to the $500.0 million repayment of senior notes, capital expenditures of $640.6 million, the final installment of $141.5 million for the Chulbatkan license paid on January 15, 2021 and dividends paid to common shareholders of $113.5 million. These decreases were partially offset by cash flow provided from operating activities of $937.9 million. Current assets decreased by $487.4 million to $1,962.3 million mainly due to the decrease in cash and cash equivalents, partially offset by an increase

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

in inventories. Total assets decreased by $522.0 million to $10,411.2 million mainly due to the decrease in current assets. Current liabilities decreased by $576.9 million to $771.5 million due to the $500.0 million repayment of senior notes and the payment of the final installment for the Chulbatkan license of $141.5 million. Total liabilities decreased by $608.2 million to $3,662.0 million, mainly due to the decrease in current liabilities.

As of November 9, 2021, there were 1,253.4 million common shares of the Company issued and outstanding. In addition, at the same date, the Company had 3.8 million share purchase options outstanding under its share option plan.

On November 10, 2021, the Board of Directors declared a dividend of $0.03 per common share payable on December 15, 2021 to shareholders of record on December 1, 2021.

Financings and Credit Facilities

Senior notes

The Company’s $1,250.0 million of senior notes consist of $500.0 million principal amount of 5.950% notes due in 2024, $500.0 million principal amount of 4.50% notes due in 2027 and $250.0 million principal amount of 6.875% notes due in 2041.

On June 1, 2021, the Company redeemed all outstanding 5.125% senior notes due September 1, 2021, which had an aggregate principal amount of $500.0 million outstanding. These notes were redeemed at a redemption price equal to their principal amount outstanding plus accrued and unpaid interest of $6.4 million.

Revolving credit facility

On July 23, 2021, the Company amended its $1,500.0 million revolving credit facility to extend the maturity date to July 23, 2026.

As at September 30, 2021, the Company had utilized $6.5 million (December 31, 2020 - $7.5 million) of its $1,500.0 million revolving credit facility, entirely for letters of credit.

Loan interest on the revolving credit facility is variable, set at LIBOR plus an interest rate margin, which is dependent on the Company’s credit rating. Based on the Company’s credit rating at September 30, 2021, interest charges and fees are as follows:

Type of credit
Revolving credit facility	LIBOR plus 1.45%
Letters of credit	0.967-1.45%
Standby fee applicable to unused availability	0.290%

The revolving credit facility agreement contains various covenants including limits on indebtedness, asset sales and liens. The Company is in compliance with its financial covenant in the credit agreement at September 30, 2021.

Tasiast loan

On December 16, 2019, the Company completed a definitive loan agreement for up to $300.0 million for Tasiast, with the first drawdown of $200.0 million received on April 9, 2020. The remaining $100.0 million is available to be drawn up to March 2022.

The asset recourse loan has a term of eight years, maturing in December 2027, a floating interest rate of LIBOR plus a weighted average margin of 4.38% and a standby fee applicable to unused availability of 1.60%, with semi-annual interest payments to be made in June and December for the term of the loan, and the first principal repayment of $30.0 million due in June 2022.

The Company is monitoring the announced future LIBOR reference rate phase out and replacement, and will engage in discussions with the lenders of the Tasiast loan to ensure a comparable replacement pricing mechanism is agreed.

As at September 30, 2021, the Company held $25.0 million in a separate bank account as required under the Tasiast loan agreement. This cash, which is subject to fluctuations over time depending on the next scheduled principal and interest payments, is required to remain in the bank account for the duration of the loan and is therefore recorded as restricted cash in other long-term assets.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Other

The Company has a $300.0 million Letter of Credit guarantee facility with Export Development Canada with a maturity date of June 30, 2022. Total fees related to letters of credit under this facility were 0.75% of the utilized amount. As at September 30, 2021, $230.2 million (December 31, 2020 - $228.9 million) was utilized under this facility.

In addition, at September 30, 2021, the Company had $184.1 million (December 31, 2020 - $175.6 million) in letters of credit and surety bonds outstanding in respect of its operations in Brazil, Mauritania, Ghana and Chile. These have been issued pursuant to arrangements with certain international banks and incur average fees of 0.80%.

As at September 30, 2021, $298.5 million (December 31, 2020 - $290.1 million) of surety bonds were outstanding with respect to Kinross’ properties in the United States. These surety bonds were issued pursuant to arrangements with international insurance companies and incur average fees of 0.50%.

The following table outlines the credit facility utilizations and availabilities:

	As at,
	September 30,			December 31,
(in millions)	2021			2020
Utilization of revolving credit facility	$	(6.5	)	$	(7.5	)
Utilization of EDC facility		(230.2	)		(228.9	)
Borrowings	$	(236.7	)	$	(236.4	)

Available under revolving credit facility	$	1,493.5		$	1,492.5
Available under EDC credit facility		69.8			71.1
Available credit	$	1,563.3		$	1,563.6

Total debt of $1,428.7 million as at September 30, 2021 consists of $1,241.6 million related to the senior notes, and $187.1 million related to the Tasiast loan. The current portion of this debt relates to the first principal repayment of $30.0 million on the Tasiast loan due in June 2022.

Liquidity Outlook

As at September 30, 2021, the Company has $30.0 million in scheduled debt repayments due in the next 12 months.

We believe that the Company’s existing cash and cash equivalents balance of $586.1 million, available credit of $1,563.3 million, and expected operating cash flows based on current assumptions (noted in Section 3 - Outlook) will be sufficient to fund operations, our forecasted exploration and capital expenditures (noted in Section 3 - Outlook), debt repayments noted above, reclamation and remediation obligations, and lease liabilities, currently estimated for the next 12 months. The Company’s ongoing response to the COVID-19 pandemic continued to maintain the safety of its global workforce and host communities while mitigating operational impacts. However, the pandemic continued to affect overall performance, productivity rates and costs. Kinross is seeing increased potential to return to pre-pandemic operating environments in most of its jurisdictions, in line with public health guidelines and as a result of lower COVID-19 rates. Prior to any capital investments, consideration is given to the cost and availability of various sources of capital resources.

With respect to longer term capital expenditure funding requirements, the Company continues to have discussions with lending institutions that have been active in the jurisdictions in which the Company’s development projects are located. Some of the jurisdictions in which the Company operates have seen the participation of additional lenders that include export credit agencies, development banks and multi-lateral agencies. The Company believes the capital from these institutions combined with traditional bank loans and capital available through debt capital market transactions may fund a portion of the Company’s longer term capital expenditure requirements. Another possible source of capital could be proceeds from the sale of non-core assets. These capital sources together with operating cash flow and the Company’s active management of its operations and development activities will enable the Company to maintain an appropriate overall liquidity position.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Contractual Obligations and Commitments

The Company manages its exposure to fluctuations in input commodity prices, currency exchange rates and interest rates, by entering into derivative financial instruments from time to time, in accordance with the Company's risk management policy.

The following table provides a summary of derivative contracts outstanding at September 30, 2021 and their respective maturities:

Foreign currency	2021		2022		2023		2024
Brazilian real zero cost collars (in millions of U.S. dollars)	$	25.5	$	105.6	$	68.4	$	27.6
Average put strike (Brazilian real)		4.39		4.79		5.13		5.55
Average call strike (Brazilian real)		5.49		6.78		7.34		9.01
Canadian dollar forward buy contracts (in millions of U.S. dollars)	$	6.3	$	36.0	$	15.0	$	-
Average rate (Canadian dollar)		1.37		1.32		1.29		-
Russian rouble zero cost collars (in millions of U.S. dollars)	$	12.9	$	46.8	$	33.6	$	9.0
Average put strike (Russian rouble)		70.3		74.5		76.2		80.0
Average call strike (Russian rouble)		91.3		97.5		99.2		104.6
Energy
WTI oil swap contracts (barrels)		266,950		822,600		565,200		-
Average price	$	46.19	$	42.14	$	39.58	$	-

The Company enters into total return swaps (“TRS”) as economic hedges of the Company’s deferred share units and cash-settled restricted share units. Hedge accounting was not applied to the TRSs. At September 30, 2021, 4,365,000 TRS units were outstanding.

In order to manage short-term metal price risk, the Company may enter into derivative contracts in relation to metal sales that it believes are highly likely to occur within a given quarter. No such contracts were outstanding at September 30, 2021 or December 31, 2020.

Fair value of derivative instruments

The fair values of derivative instruments are noted in the table below:

	As at,
	September 30,			December 31,
(in millions)	2021			2020
Asset (liability)
Foreign currency forward and collar contracts	$	(3.2	)	$	(4.3	)
Energy swap contracts		44.3			7.6
Total return swap contracts		(3.9	)		(11.0	)
	$	37.2		$	(7.7	)

Other legal matters

The Company is from time to time involved in legal proceedings, arising in the ordinary course of its business. Typically, the amount of ultimate liability with respect to these actions will not, in the opinion of management, materially affect Kinross’ financial position, results of operations or cash flows.

Maricunga regulatory proceedings

In May 2015, Chilean environmental enforcement authority (“SMA”) commenced an administrative proceeding against Compania Minera Maricunga (“CMM”) alleging that pumping of groundwater to support the Maricunga operation had impacted area wetlands and, on March 18, 2016, issued a resolution alleging that CMM’s pumping was impacting the “Valle Ancho” wetland. Beginning in May 2016, the SMA issued a series of resolutions ordering CMM to temporarily curtail pumping from its wells.

In response, CMM suspended mining and crushing activities and reduced water consumption to minimal levels. CMM contested these resolutions, but its efforts were unsuccessful and, except for a short period of time in July 2016, CMM’s operations have remained suspended. On June 24, 2016, the SMA amended its initial sanction (the “Amended Sanction”) and effectively required CMM to cease operations and close the mine, with water use from its wells curtailed to minimal levels. On July 9, 2016, CMM appealed the sanctions and, on August 30, 2016, submitted a request to the Environmental Tribunal that it issue an injunction suspending the effectiveness of the Amended Sanction pending a final decision on the merits of CMM’s appeal. On September 16, 2016, the Environmental Tribunal

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

rejected CMM’s injunction request and on August 7, 2017, upheld the SMA’s Amended Sanction and curtailment orders on procedural grounds. On October 9, 2018, the Supreme Court affirmed the Environmental Tribunal’s ruling on procedural grounds and dismissed CMM’s appeal.

On June 2, 2016, CMM was served with two separate lawsuits filed by the Chilean State Defense Counsel (“CDE”). Both lawsuits, filed with the Environmental Tribunal, alleged that pumping from the Maricunga groundwater wells caused environmental damage to area wetlands. One action relates to the “Pantanillo” wetland and the other action relates to the Valle Ancho wetland (described above). Hearings on the CDE lawsuits took place in 2016 and 2017, and on November 23, 2018, the Tribunal ruled in favor of CMM in the Pantanillo case and against CMM in the Valle Ancho case. In the Valle Ancho case, the Tribunal is requiring CMM to, among other things, submit a restoration plan to the SMA for approval. CMM has appealed the Valle Ancho ruling to the Supreme Court. The CDE has appealed to the Supreme Court in both cases and is asserting in the Valle Ancho matter that the Environmental Tribunal erred by not ordering a complete shutdown of Maricunga’s groundwater wells. The timing of any rulings by the Supreme Court on the parties’ respective appeals remains uncertain.

Sunnyside litigation

The Sunnyside Mine is an inactive mine situated in the so-called Bonita Peak Mining District (“District”) near Silverton, Colorado. A subsidiary of Kinross, Sunnyside Gold Corporation (“SGC”), was involved in operations at the mine from 1985 through 1991 and subsequently conducted various reclamation and closure activities at the mine and in the surrounding area. On August 5, 2015, while working in another mine in the District known as the Gold King, the Environmental Protection Agency (the “EPA”) caused a release of approximately three million gallons of contaminated water into a tributary of the Animas River. In the third quarter of 2016, the EPA listed the District, including areas impacted by SGC’s operations and closure activities, on the National Priorities List pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”). SGC challenged portions of the CERCLA listing in the United States Court of Appeals for District of Columbia Circuit, but SGC’s petition for review was denied, as was its subsequent petition for rehearing. The EPA has notified SGC that SGC is a potentially responsible party under CERCLA and may be jointly and severally liable for cleanup of the District or cleanup costs incurred by the EPA in the District. The EPA may in the future provide similar notification to Kinross, as the EPA contends that Kinross has liability in the District under CERCLA and other statutes. In the second quarter of 2018, the EPA issued to SGC a modified Unilateral Administrative Order for Remedial Investigation (the “Order”). In the second quarter of 2019, pursuant to the original Order, the EPA issued to SGC a Modified Statement of Work, Work Plan and Field Sampling Plan (together with the Order, the “Modified Order”). The Modified Order significantly altered and expanded upon the work set out under the original Order. In the third quarter of 2019, after consulting with external legal counsel, SGC provided notice to the EPA that the Modified Order is legally indefensible, does not address any imminent hazard and SGC does not intend to comply with the Modified Order. On July 26, 2019, the EPA acknowledged receipt of SGC’s notice of its intention not to comply with the Modified Order. The EPA indicated that it would undertake to complete the work ordered under the Modified Order, and has subsequently completed some of that work. While SGC believes that it has good cause not to comply with the Modified Order, failure to comply with the Modified Order may subject SGC to significant penalties, damages and/or potential reimbursement of the cost of remediation work undertaken by the EPA.

In the second quarter of 2016, the State of New Mexico filed a complaint naming the EPA, SGC, Kinross and others alleging violations of CERCLA, the Resource Conservation and Recovery Act (“RCRA”), and the Clean Water Act (“CWA”) and claiming negligence, gross negligence, public nuisance and trespass. New Mexico subsequently dropped the RCRA claim. The New Mexico complaint seeks cost recovery, damages, injunctive relief, and attorney’s fees. In the third quarter of 2016, the Navajo Nation initiated litigation against the EPA, SGC and Kinross, alleging entitlement to cost recovery under CERCLA for past and future costs incurred, negligence, gross negligence, trespass, and public and private nuisance, and seeking reimbursement of past and future costs, compensatory, consequential and punitive damages, injunctive relief and attorneys’ fees. In the third quarter of 2017, the State of Utah filed a complaint, which has been amended to name the EPA, SGC, Kinross and others, alleging negligence, gross negligence, public nuisance, trespass, and violation of the Utah Water Quality Act and the Utah Solid and Hazardous Waste Act.

The Utah complaint seeks cost recovery, compensatory, consequential and punitive damages, penalties, disgorgement of profits, declaratory, injunctive and other relief under CERCLA, attorney’s fees, and costs. In the third quarter of 2018, numerous members of the Navajo Nation initiated litigation against the EPA, SGC and Kinross, alleging negligence, gross negligence and injury, including great spiritual and emotional distress. The complaint of the Navajo members seeks compensatory and consequential damages, interest, punitive damages, attorneys’ fees and expenses. The New Mexico, Navajo Nation, Utah and Navajo member cases have been centralized for coordinated or consolidated pretrial proceedings in the United States District Court for the District of New Mexico. In the third quarter of 2019 (i) the EPA filed a cross claim against SGC and Kinross seeking contribution, including contribution under CERCLA, for any damages awarded to New Mexico, the Navajo Nation, or Utah as well as cost-recovery for the EPA’s response costs and remedial expenses incurred by the EPA in the District pursuant to CERCLA or other laws; (ii) Environmental Restoration, LLC, an EPA contractor, filed a cross claim against SGC seeking contribution under CERCLA and attorneys’ fees and expenses; and (iii) SGC filed a cross claim against the United States and certain contractors of the United States seeking contribution and equitable indemnity and making a due process claim against the United States. In the first quarter of 2020, the Court granted the United States judgment on

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

SGC’s due process cross claim and dismissed it. In the first quarter of 2021, the Court granted SGC summary judgment as to the claims of the individual Navajo Nation members.

In the fourth quarter of 2020 and first quarter of 2021, SGC and Kinross reached settlements with the Navajo Nation, the State of New Mexico, and the State of Utah. The Court has entered Consent Decrees approving these settlements and dismissed the claims with prejudice.

In the first quarter of 2021, the Court granted SGC’s motion for summary judgment against the individual Navajo members based on a statute of repose defense. In April 2021, the Court granted Kinross Gold Corporation and Kinross Gold U.S.A., Inc.’s motion for summary judgment against the individual Navajo members based personal jurisdiction grounds and, subsequently, in July 2021 denied a motion to certify this order for interlocutory appeal. In May 2021, the Court partially granted Kinross Gold Corporation’s motion for summary judgment based on a lack of specific jurisdiction as to the United States’ cross-claims, but granted the United States the right to file a motion asserting personal jurisdiction under alternative grounds. On October 4, 2021, the Court denied the United States’ motion for summary judgment on this alternative ground for personal jurisdiction over Kinross Gold Corporation.

On October 22, 2021, SGC and Kinross participated in a mediation with the United States and the State of Colorado. The mediation concluded with a settlement in principle. The settlement remains subject to certain agency approvals and entry of a Consent Decree by the Court approving the settlement. The settlement is expected to resolve all claims and counterclaims asserted in the case by the United States against SGC and Kinross and similar claims that could have been asserted by the State of Colorado with respect to the site. In addition, SGC and Kinross have reached an agreement in principle with the State of Colorado to resolve potential natural resource damage claims with respect to the site. Further details will be provided upon receipt of required agency approvals and execution and lodging of Consent Decrees regarding these matters.

Kettle River-Buckhorn regulatory proceedings

Crown Resources Corporation (“Crown”) is the holder of a waste discharge permit (the “Permit”) in respect of the Buckhorn Mine, which authorizes and regulates mine-related discharges from the mine and its water treatment plant. On February 27, 2014, the Washington Department of Ecology (the “WDOE”) renewed Buckhorn Mine’s National Pollution Discharge Elimination System Permit (the “Renewed Permit”), with an effective date of March 1, 2014. The Renewed Permit contained conditions that were more restrictive than the original discharge permit. In addition, Crown felt that the Renewed Permit was internally inconsistent, technically unworkable and inconsistent with existing agreements in place with the WDOE, including a settlement agreement previously entered into by Crown and the WDOE in June 2013 (the “Settlement Agreement”). On February 28, 2014, Crown filed an appeal of the Renewed Permit with the Washington Pollution Control Hearings Board (“PCHB”). In addition, on January 15, 2015, Crown filed a lawsuit against the WDOE in Ferry County Superior Court, Washington, claiming that the WDOE breached the Settlement Agreement by including various unworkable compliance terms in the Renewed Permit (the “Crown Action”). On July 30, 2015, the PCHB upheld the Renewed Permit. Crown filed a Petition for Review in Ferry County Superior Court, Washington, on August 27, 2015, seeking to have the PCHB decision overturned. On March 13, 2017, the Ferry County Superior Court upheld the PCHB’s decision. On April 12, 2017, Crown appealed the Ferry County Superior Court’s ruling to the State of Washington Court of Appeals. On October 8, 2019, the Court of Appeals affirmed the Superior Court’s decision and the PCHB’s decision. On December 31, 2019, the Court of Appeals denied Crown’s Motion for Reconsideration and to Supplement the Record. Crown did not petition the Washington Supreme Court for review and, as a result, appeal of this matter has been exhausted.

On July 19, 2016, the WDOE issued an Administrative Order (“AO”) to Crown and Kinross Gold Corporation asserting that the companies had exceeded the discharge limits in the Renewed Permit a total of 931 times and has also failed to maintain the capture zone required under the Renewed Permit. The AO orders the companies to develop an action plan to capture and treat water escaping the capture zone, undertake various investigations and studies, revise its Adaptive Management Plan, and report findings by various deadlines in the fourth quarter 2016. The companies timely made the required submittals. On August 17, 2016, the companies filed an appeal of the AO with the PCHB (the “AO Appeal”). Because the AO Appeal raises many of the same issues that have been raised in the Appeal and Crown Action, the companies and the WDOE agreed to stay the AO Appeal indefinitely to allow these matters to be resolved. The PCHB granted the request for stay on August 26, 2016, which stay has been subsequently extended. On June 2, 2020, the PCHB dismissed the appeal based on a Joint Stipulation of Voluntary Dismissal filed by the parties. The basis for the dismissal was the exhaustion of appeals as to the Renewed Permit and Crown’s satisfaction of the AO.

On November 30, 2017, the WDOE issued a Notice of Violation (“NOV”) to Crown and Kinross asserting that the companies had exceeded the discharge limits in the Permit a total of 113 times during the third quarter of 2017 and also failed to maintain the capture zone as required under the Permit. The NOV ordered the companies to file a report with the WDOE identifying the steps which have been and are being taken to “control such waste or pollution or otherwise comply with this determination,” which report was timely filed. Following its review of this report, the WDOE may issue an AO or other directives to the Company.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Each calendar quarter beginning April 2018, the WDOE has issued a NOV to Crown and, on one occasion, also to Kinross, asserting that the companies had exceeded the discharge limits in the Permit and have failed to maintain the capture zone as required under the Permit. The most recent NOV, dated May 10, 2021, asserted 133 alleged violations had occurred in the first quarter of 2021. The NOVs order the companies to file a report with WDOE within 30 days identifying the steps which have been and are being taken to “control such waste or pollution or otherwise comply with this determination,” which reports have been timely filed. Following its review of these reports, WDOE may issue an AO or other directives to the Company. The NOVs are not immediately appealable, but any subsequent AO or other directive relating to the NOV may be appealed, as appropriate.

On April 10, 2020, the Okanogan Highlands Alliance (“OHA”) filed a citizen’s suit against Crown and Kinross Gold U.S.A., Inc. (“KGUSA”) under the Clean Water Act (“CWA”) for alleged failure adequately to capture and treat mine-impacted groundwater and surface water at the site in violation of the Permit and renewed Permit. The suit seeks injunctive relief and civil penalties in the amount of up to $55,800 per day per violation. Crown filed a counterclaim seeking an accounting of how OHA spent funds paid out under a prior settlement. OHA succeeded in obtaining a dismissal of this claim. Crown refiled the claim in state court where proceedings have been stayed by mutual agreement of the parties. On May 7, 2020, the Attorney General for the State of Washington filed suit against Crown and KGUSA under the CWA and the state Water Pollution Control Act alleging the same alleged permit violations and seeking similar relief as OHA. These lawsuits have been consolidated. On June 16, 2021, the Court granted the plaintiffs’ motion for partial summary judgement as to certain of Crown and KGUSA’s defenses. On July 9, 2021, Crown and KGUSA filed a motion for certification of this ruling for immediate appeal, which motion remains pending.

Guarantor summarized financial information

The obligations of the Company under the senior notes were guaranteed at September 30, 2021 by the following 100% owned and consolidated subsidiaries of the Company (the “guarantor subsidiaries”): Round Mountain Gold Corporation, Kinross Brasil Mineração S.A., Fairbanks Gold Mining, Inc., Melba Creek Mining, Inc., KG Mining (Round Mountain) Inc., KG Mining (Bald Mountain) Inc., and White Ice Ventures Limited. All guarantees by the guarantor subsidiaries are joint and several, and full and unconditional, subject to certain customary release provisions contained in the indenture governing the senior notes. The guarantees are unsecured senior obligations of the respective guarantor subsidiaries and rank equally with all other unsecured senior obligations. The guarantees are effectively subordinated to any secured indebtedness and other secured liabilities of the respective guarantor subsidiaries. The obligations of each guarantor subsidiary under its respective guarantee is limited to an amount not to exceed the maximum amount that can be guaranteed by law or without resulting in its obligations under such guarantee being voidable or unenforceable under applicable laws relating to fraudulent transfer, or under similar laws affecting the rights of creditors generally.

During the nine months ended September 30, 2021, a change was made to the guarantor subsidiaries such that Red Back Mining (Ghana) Limited and KG Far East (Luxembourg) Sarl were no longer guarantors.

The summarized financial information of Kinross Gold Corporation, as issuer of the senior notes, and the guarantor subsidiaries is presented on a combined basis with intercompany balances and transactions between Kinross Gold Corporation and the guarantor subsidiaries eliminated. Kinross Gold Corporation’s or the guarantor subsidiaries' equity in the earnings (losses) of and other gains from, intercompany receivables and payables with, and investments in non-guarantor subsidiaries are presented separately in, and have been excluded from, the accompanying supplemental summarized combined financial information. As a result of the change in guarantor subsidiaries noted above, the accompanying supplemental summarized combined financial information for the comparative periods have been recast.

Summarized combined statement of operations information

	Nine months ended			Year ended
(in millions)	September 30, 2021			December 31, 2020
Revenue	$	1,698.0		$	2,288.6
Cost of sales		1,207.5			1,460.8
Gross profit		490.5			827.8
Operating earnings		338.7			670.4
Net earnings before equity in the earnings (losses) of, and other gains from, non- guarantor subsidiaries		263.9			462.5
Equity in the earnings (losses) of, and other gains from, non-guarantor subsidiaries		(40.0	)		879.9
Net earnings		223.9			1,342.4
Net earnings attributable to common shareholders	$	223.9		$	1,342.4

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Summarized combined balance sheet information

	As at,
	September 30,		December 31,
(in millions)	2021		2020
Current assets	$	916.2	$	1,135.2
Current assets – with non-guarantor subsidiaries		1,965.0		1,869.4
Non-current assets		3,979.1		4,185.5
Non-current assets – with non-guarantor subsidiaries		4,303.3		4,622.8
Current liabilities		408.7		982.8
Current liabilities – with non-guarantor subsidiaries		649.7		674.1
Non-current liabilities		2,093.4		2,118.4
Non-current liabilities – with non-guarantor subsidiaries		1,330.8		1,441.1

7.	SUMMARY OF QUARTERLY INFORMATION

	2021							2020								2019
(in millions, except per share amounts)		Q3			Q2		Q1		Q4		Q3		Q2		Q1		Q4
Metal sales	$	862.5		$	1,000.9	$	986.5	$	1,195.1	$	1,131.3	$	1,007.2	$	879.8	$	996.2
Net (loss) earnings attributable to common shareholders	$	(44.9	)	$	119.3	$	149.5	$	783.3	$	240.7	$	195.7	$	122.7	$	521.5
Basic (loss) earnings per share attributable to common shareholders	$	(0.04	)	$	0.09	$	0.12	$	0.62	$	0.19	$	0.16	$	0.10	$	0.41
Diluted (loss) earnings per share attributable to common shareholders	$	(0.04	)	$	0.09	$	0.12	$	0.62	$	0.19	$	0.15	$	0.10	$	0.41
Net cash flow provided from operating activities	$	269.9		$	388.2	$	279.8	$	681.1	$	544.1	$	432.8	$	299.6	$	408.6

The Company’s results over the past several quarters have been driven primarily by fluctuations in the gold price, input costs and changes in gold equivalent ounces sold. Fluctuations in the silver price and foreign exchange rates have also affected results.

During the third quarter of 2021, revenue decreased to $862.5 million on sales of 481,959 total gold equivalent ounces compared to $1,131.3 million on sales of 593,218 total gold equivalent ounces during the third quarter of 2020. The average gold price realized in the third quarter of 2021 was $1,790 per ounce compared to $1,908 per ounce in the third quarter of 2020.

Depreciation, depletion and amortization varied between each of the above quarters largely due to changes in gold equivalent ounces sold and depreciable asset bases. In addition, changes in mineral reserves as well as reversals of impairment charges during some of these periods affected depreciation, depletion and amortization for quarters in subsequent periods.

In the fourth quarter of 2020, the Company recorded net, after‐tax, impairment reversals of $564.5 million related to property, plant and equipment at Tasiast, Chirano and Lobo-Marte, and net, after-tax, impairment charges of $32.5 million relating to certain supplies inventories at Kupol and Tasiast. In the second quarter of 2020, the Company recorded an impairment reversal of $48.3 million related to property, plant and equipment at Lobo-Marte. In the fourth quarter of 2019, the Company recorded net, after‐tax, impairment reversals of $293.6 million related to impairment reversals of property, plant and equipment at Paracatu and Tasiast.

On September 30, 2020, the Company acquired a 70% interest in the Manh Choh project in Alaska from Royal Gold, Inc. and CORE Alaska, LLC for a total cash consideration of $93.7 million.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

On December 2, 2019, the Company entered into an agreement with Maverix Metals, Inc. (“Maverix”) to sell a royalty portfolio of precious metals royalties. On December 19, 2019, the Company completed the sale for total consideration of $73.9 million, including $25.0 million in cash and approximately 11.2 million common shares, representing 9.4% of the issued and outstanding common shares, of Maverix.

On July 31, 2019, the Company announced an agreement to acquire the Chulbatkan license located in Khabarovsk Krai, Far East Russia, from N-Mining, for total fixed consideration of $283.0 million. On January 16, 2020, the Company closed the acquisition of this Chulbatkan license area. In accordance with an amended acquisition agreement, the first installment of $141.5 million, representing 50% of the $283.0 million fixed purchase price, plus ordinary course net working capital adjustments of $3.1 million, were paid in cash. On January 15, 2021, in accordance with a further amended acquisition agreement, the Company paid the final installment of $141.5 million in cash.

8.	DISCLOSURE CONTROLS AND PROCEDURES AND INTERNAL CONTROL OVER FINANCIAL REPORTING

Pursuant to regulations adopted by the U.S. Securities and Exchange Commission, under the U.S. Sarbanes-Oxley Act of 2002 and those of the Canadian Securities Administrators, Kinross' management evaluates the effectiveness of the design and operation of the Company's disclosure controls and procedures, and internal control over financial reporting. This evaluation is done under the supervision of, and with the participation of, the Chief Executive Officer and the Chief Financial Officer.

For the quarter ended September 30, 2021, the Chief Executive Officer and the Chief Financial Officer concluded that Kinross’ disclosure controls and procedures, and internal control over financial reporting are designed to provide reasonable assurance regarding the reliability of information disclosed in its filings, including its interim financial statements prepared in accordance with IFRS. There has been no change in the Company’s internal control over financial reporting during the quarter ended September 30, 2021, that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Limitations of Controls and Procedures

Kinross’ management, including the Chief Executive Officer and the Chief Financial Officer, believes that any disclosure controls and procedures and internal control over financial reporting, no matter how well designed and operated, can have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance that the objectives of the control system are met.

9.	CRITICAL ACCOUNTING POLICIES, ESTIMATES AND ACCOUNTING CHANGES

Critical Accounting Policies and Estimates

The preparation of the Company’s consolidated financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The critical estimates, assumptions and judgments applied in the preparation of the Company’s interim financial statements are consistent with those applied and disclosed in Note 5 of the Company’s annual audited consolidated financial statements for the year ended December 31, 2020.

Accounting Changes

The accounting policies applied in the preparation of the Company’s interim financial statements are consistent with those used in the Company’s annual audited consolidated financial statements for the year ended December 31, 2020.

10.	RISK ANALYSIS

The business of Kinross contains significant risk due to the nature of mining, exploration, and development activities. Certain risk factors are similar across the mining industry while others are specific to Kinross. For a discussion of these risk factors, please refer to the MD&A for the year ended December 31, 2020 and for additional information please refer to the Annual Information Form for the year ended December 31, 2020, each of which is available on the Company's website www.kinross.com and on www.sedar.com or is available upon request from the Company.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

11.	SUPPLEMENTAL INFORMATION

Reconciliation of Non-GAAP Financial Measures

The Company has included certain non-GAAP financial measures in this document. These measures are not defined under IFRS and should not be considered in isolation. The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. The inclusion of these measures is meant to provide additional information and should not be used as a substitute for performance measures prepared in accordance with IFRS. These measures 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 measures 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, 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 are not necessarily indicative of net earnings and earnings per share measures as determined under IFRS.

The following table provides a reconciliation of net (loss) earnings to adjusted net earnings for the periods presented:

	Three months ended September 30,						Nine months ended September 30,
(in millions, except per share amounts)	2021			2020			2021			2020
Net (loss) earnings attributable to common shareholders - as reported	$	(44.9	)	$	240.7		$	223.9		$	559.1
Adjusting items:
Foreign exchange (gains) losses		(6.2	)		6.5			1.4			(0.9	)
Foreign exchange losses on translation of tax basis and foreign exchange on deferred income taxes within income tax expense		14.8			42.7			7.4			96.6
Taxes in respect of prior periods		55.3			5.5			79.0			11.6
COVID-19 costs^(a)		5.1			17.3			24.3			40.8
Round Mountain pit wall stabilization costs		16.1			-			42.7			-
Tasiast mill fire related costs		28.9			-			41.0			-
Tasiast definitive agreement settlement		10.0			-			10.0			-
Reversal of impairment charge^(b)		-			-			-			(48.3	)
U.S. CARES Act net benefit		-			-			-			(25.4	)
Tasiast strike costs		-			2.3			-			8.3
Other		19.7			(3.1	)		30.2			(2.9	)
Tax effects of the above adjustments		(8.6	)		(1.7	)		(20.4	)		(7.2	)
		135.1			69.5			215.6			72.6
Adjusted net earnings attributable to common shareholders	$	90.2		$	310.2		$	439.5		$	631.7
Weighted average number of common shares outstanding - Basic		1,261.2			1,258.1			1,260.6			1,256.8
Adjusted net earnings per share	$	0.07		$	0.25		$	0.35		$	0.50

(a)	Includes COVID-19 related labour, health and safety, donations and other support program costs.

(b)	During the nine months ended September 30, 2020, the Company recognized a non-cash reversal of impairment charge of $48.3 million related to property, plant and equipment at Lobo-Marte. There was no tax impact of this impairment reversal.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Free Cash Flow

Free cash flow is a non-GAAP measure and is defined as net cash flow provided from operating activities less capital expenditures. The Company believes that 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 measure is not necessarily indicative of operating earnings or net cash flow from operations as determined under IFRS.

The following table provides a reconciliation of free cash flow for the periods presented:

	Three months ended September 30,						Nine months ended September 30,
(in millions)	2021			2020			2021			2020
Net cash flow provided from operating activities - as reported	$	269.9		$	544.1		$	937.9		$	1,276.5
Less: Additions to property, plant and equipment		(231.0	)		(212.1	)		(640.6	)		(617.8	)
Free cash flow	$	38.9		$	332.0		$	297.3		$	658.7

Adjusted Operating Cash Flow

Adjusted operating cash flow is defined as cash flow from operations 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, and in the case of Kupol, a build-up of inventory due to transportation logistics. The Company uses 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 adjusted operating cash flow measure is not necessarily indicative of net cash flow from operations as determined under IFRS.

The following table provides a reconciliation of adjusted operating cash flow for the periods presented:

	Three months ended September 30,						Nine months ended September 30,
(in millions)	2021			2020			2021			2020
Net cash flow provided from operating activities - as reported	$	269.9		$	544.1		$	937.9		$	1,276.5
Adjusting items:
Working capital changes:
Accounts receivable and other assets		5.1			40.9			29.4			168.6
Inventories		10.4			13.0			18.1			(26.3	)
Accounts payable and other liabilities, including income taxes paid		(94.9	)		(48.4	)		(31.5	)		(33.7	)
		(79.4	)		5.5			16.0			108.6
Adjusted operating cash flow	$	190.5		$	549.6		$	953.9		$	1,385.1

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Consolidated and Attributable Production Cost of Sales per Equivalent Ounce Sold

Consolidated production cost of sales per gold equivalent ounce sold is a non-GAAP measure and is defined as production cost of sales as reported on the interim condensed 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 gold equivalent ounce sold is a non-GAAP measure 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 these measures to monitor and evaluate the performance of its operating properties.

The following table provides a reconciliation of consolidated and attributable production cost of sales per equivalent ounce sold for the periods presented:

	Three months ended September 30,						Nine months ended September 30,
(in millions, except ounces and production cost of sales per equivalent ounce)	2021			2020			2021			2020
Production cost of sales - as reported	$	421.0		$	439.4		$	1,300.9		$	1,289.2
Less: portion attributable to Chirano non-controlling interest^(a)		(4.9	)		(5.6	)		(15.6	)		(15.0	)
Attributable^(b) production cost of sales	$	416.1		$	433.8		$	1,285.3		$	1,274.2
Gold equivalent ounces sold		481,959			593,218			1,586,028			1,738,379
Less: portion attributable to Chirano non-controlling interest^(j)		(3,500	)		(4,659	)		(11,666	)		(12,601	)
Attributable^(b) gold equivalent ounces sold		478,459			588,559			1,574,362			1,725,778
Consolidated production cost of sales per equivalent ounce sold	$	874		$	741		$	820		$	742
Attributable^(b) production cost of sales per equivalent ounce sold	$	870		$	737		$	816		$	738

See page 37 of this MD&A 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 measure 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 measure provides investors with the ability to better evaluate Kinross’ production cost of sales per ounce on a comparable basis with other major gold producers who routinely calculate their cost of sales per ounce using by-product accounting rather than co-product accounting.

The following table provides a reconciliation of attributable production cost of sales per ounce sold on a by-product basis for the periods presented:

	Three months ended September 30,						Nine months ended September 30,
(in millions, except ounces and production cost of sales per ounce)	2021			2020			2021			2020
Production cost of sales - as reported	$	421.0		$	439.4		$	1,300.9		$	1,289.2
Less: portion attributable to Chirano non-controlling interest^(a)		(4.9	)		(5.6	)		(15.6	)		(15.0	)
Less: attributable^(b) silver revenue^(c)		(30.7	)		(28.8	)		(84.3	)		(62.7	)
Attributable^(b) production cost of sales net of silver by-product revenue	$	385.4		$	405.0		$	1,201.0		$	1,211.5
Gold ounces sold		464,607			577,822			1,538,602			1,702,089
Less: portion attributable to Chirano non-controlling interest^(j)		(3,494	)		(4,649	)		(11,646	)		(12,575	)
Attributable^(b) gold ounces sold		461,113			573,173			1,526,956			1,689,514
Attributable^(b) production cost of sales per ounce sold on a by-product basis	$	836		$	707		$	787		$	717

See page 37 of this MD&A for details of the footnotes referenced within the table above.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Attributable All-In Sustaining Cost and All-In Cost per Ounce Sold on a By-Product Basis

In November 2018, the World Gold Council (“WGC”) published updates to its guidelines for reporting all-in sustaining costs and all-in costs to address how the costs associated with leases, after a company’s adoption of IFRS 16 “Leases”, should be treated. 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 non-GAAP measures. Adoption of the all-in sustaining cost and all-in cost metrics is voluntary and not necessarily standard, and therefore, these measures presented by the Company may not be comparable to similar measures presented by other issuers. The Company believes that the all-in sustaining cost and all-in cost measures complement existing measures 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. 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 and ongoing replacement of mine equipment and other capital facilities, and does not include capital expenditures for major growth projects or enhancement capital for significant infrastructure improvements at existing operations.

All-in cost is comprised of all-in sustaining cost as well as operating expenditures incurred at locations with no current operation, or costs related to other non-sustaining activities, and capital expenditures for major growth projects or enhancement capital for significant infrastructure improvements at existing operations.

Attributable all-in sustaining cost and all-in cost per ounce sold on a by-product basis are calculated by adjusting total production cost of sales, as reported on the interim condensed consolidated statement of operations, as follows:

	Three months ended September 30,						Nine months ended September 30,
(in millions, except ounces and costs per ounce)	2021			2020			2021			2020
Production cost of sales - as reported	$	421.0		$	439.4		$	1,300.9		$	1,289.2
Less: portion attributable to Chirano non-controlling interest^(a)		(4.9	)		(5.6	)		(15.6	)		(15.0	)
Less: attributable^(b) silver revenue^(c)		(30.7	)		(28.8	)		(84.3	)		(62.7	)
Attributable^(b) production cost of sales net of silver by-product revenue	$	385.4		$	405.0		$	1,201.0		$	1,211.5
Adjusting items on an attributable^(b) basis:
General and administrative^(d)		29.2			25.3			94.6			81.8
Other operating expense - sustaining^(e)		2.9			3.2			9.0			8.8
Reclamation and remediation - sustaining^(f)		11.2			12.1			32.2			38.0
Exploration and business development - sustaining^(g)		12.1			12.8			30.8			35.1
Additions to property, plant and equipment - sustaining^(h)		107.0			73.0			231.5			237.3
Lease payments - sustaining⁽ⁱ⁾		7.8			3.8			23.2			12.6
All-in Sustaining Cost on a by-product basis - attributable^(b)	$	555.6		$	535.2		$	1,622.3		$	1,625.1
Other operating expense - non-sustaining^(e)		8.5			15.6			27.8			38.9
Reclamation and remediation - non-sustaining^(f)		0.8			1.2			2.5			3.7
Exploration - non-sustaining^(g)		24.0			11.7			63.6			25.9
Additions to property, plant and equipment - non-sustaining^(h)		122.1			138.7			402.8			376.8
Lease payments - non-sustaining⁽ⁱ⁾		0.7			0.2			0.9			0.9
All-in Cost on a by-product basis - attributable^(b)	$	711.7		$	702.6		$	2,119.9		$	2,071.3
Gold ounces sold		464,607			577,822			1,538,602			1,702,089
Less: portion attributable to Chirano non-controlling interest^(j)		(3,494	)		(4,649	)		(11,646	)		(12,575	)
Attributable^(b) gold ounces sold		461,113			573,173			1,526,956			1,689,514
Attributable^(b) all-in sustaining cost per ounce sold on a by-product basis	$	1,205		$	934		$	1,062		$	962
Attributable^(b) all-in cost per ounce sold on a by-product basis	$	1,543		$	1,226		$	1,388		$	1,226

See page 37 of this MD&A for details of the footnotes referenced within the table above.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Attributable All-In Sustaining Cost and All-In Cost per Equivalent Ounce Sold

The Company also assesses its all-in sustaining cost and all-in cost on a gold equivalent ounce basis. Under these non-GAAP measures, 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 total production cost of sales, as reported on the interim condensed consolidated statement of operations, as follows:

	Three months ended September 30,						Nine months ended September 30,
(in millions, except ounces and costs per equivalent ounce)	2021			2020			2021			2020
Production cost of sales - as reported	$	421.0		$	439.4		$	1,300.9		$	1,289.2
Less: portion attributable to Chirano non-controlling interest^(a)		(4.9	)		(5.6	)		(15.6	)		(15.0	)
Attributable^(b) production cost of sales	$	416.1		$	433.8		$	1,285.3		$	1,274.2
Adjusting items on an attributable^(b) basis:
General and administrative ^(d)		29.2			25.3			94.6			81.8
Other operating expense - sustaining^(e)		2.9			3.2			9.0			8.8
Reclamation and remediation - sustaining^(f)		11.2			12.1			32.2			38.0
Exploration and business development - sustaining^(g)		12.1			12.8			30.8			35.1
Additions to property, plant and equipment - sustaining^(h)		107.0			73.0			231.5			237.3
Lease payments - sustaining⁽ⁱ⁾		7.8			3.8			23.2			12.6
All-in Sustaining Cost - attributable^(b)	$	586.3		$	564.0		$	1,706.6		$	1,687.8
Other operating expense - non-sustaining^(e)		8.5			15.6			27.8			38.9
Reclamation and remediation - non-sustaining^(f)		0.8			1.2			2.5			3.7
Exploration - non-sustaining^(g)		24.0			11.7			63.6			25.9
Additions to property, plant and equipment - non-sustaining^(h)		122.1			138.7			402.8			376.8
Lease payments - non-sustaining⁽ⁱ⁾		0.7			0.2			0.9			0.9
All-in Cost - attributable^(b)	$	742.4		$	731.4		$	2,204.2		$	2,134.0
Gold equivalent ounces sold		481,959			593,218			1,586,028			1,738,379
Less: portion attributable to Chirano non-controlling interest^(j)		(3,500	)		(4,659	)		(11,666	)		(12,601	)
Attributable^(b) gold equivalent ounces sold		478,459			588,559			1,574,362			1,725,778
Attributable^(b) all-in sustaining cost per equivalent ounce sold	$	1,225		$	958		$	1,084		$	978
Attributable^(b) all-in cost per equivalent ounce sold	$	1,552		$	1,243		$	1,400		$	1,237

See page 37 of this MD&A for details of the footnotes referenced within the table above.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

(a)	The portion attributable to Chirano non-controlling interest represents the non-controlling interest (10%) in the production cost of sales for the Chirano mine.

(b)	“Attributable” includes Kinross' share of Chirano (90%) production and costs, and Manh Choh (70%) costs.

(c)

“Attributable silver revenue” represents the attributable 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.

(d)

“General and administrative” expenses is as reported on the interim condensed consolidated statement of operations, net of certain restructuring expenses. General and administrative expenses are considered sustaining costs as they are required to be absorbed on a continuing basis for the effective operation and governance of the Company.

(e)

“Other operating expense – sustaining” is calculated as “Other operating expense” as reported on the interim condensed consolidated statement of operations, less other operating and reclamation and remediation expenses related to non-sustaining activities as well as other items not reflective of the underlying operating performance of our business. Other operating expenses are classified as either sustaining or non-sustaining based on the type and location of the expenditure incurred. The majority of other operating expenses that are incurred at existing operations are considered costs necessary to sustain operations, and are therefore classified as sustaining. Other operating expenses incurred at locations where there is no current operation or related to other non-sustaining activities are classified as non-sustaining.

(f)

“Reclamation and remediation - sustaining” is calculated as current period accretion related to reclamation and remediation obligations plus current period amortization of the corresponding reclamation and remediation assets, and is intended to reflect the periodic cost of reclamation and remediation for currently operating mines. Reclamation and remediation costs for development projects or closed mines are excluded from this amount and classified as non-sustaining.

(g)

“Exploration and business development – sustaining” is calculated as “Exploration and business development” expenses as reported on the interim condensed consolidated statement of operations, less non-sustaining exploration 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 considered sustaining costs as they are required for general operations.

(h)

“Additions to property, plant and equipment – sustaining” represents the majority of capital expenditures at existing operations including capitalized exploration costs, periodic capitalized stripping and underground mine development costs, ongoing replacement of mine equipment and other capital facilities and other capital expenditures and is calculated as total additions to property, plant and equipment (as reported on the interim condensed consolidated statements of cash flows), less non-sustaining capital. Non-sustaining capital represents 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. Non-sustaining capital expenditures during the three and nine months ended September 30, 2021, primarily related to major projects at Tasiast, Fort Knox, La Coipa, Udinsk and Lobo-Marte. Non-sustaining capital expenditures during the three and nine months ended September 30, 2020, primarily related to major projects at Tasiast, Fort Knox and Round Mountain.

(i)

“Lease payments – sustaining” represents the majority of lease payments (as reported on the interim condensed consolidated statements of cash flows) and is made up of the principal and financing components of such cash payments, less non-sustaining lease payments. Lease payments for development projects or closed mines are classified as non-sustaining.

(j)	“Portion attributable to Chirano non-controlling interest” represents the non-controlling interest (10%) in the ounces sold from the Chirano mine.

(k)

“Average realized gold price per ounce” is a non-GAAP financial measure and is defined as gold metal sales divided by the total number of gold ounces sold. This measure is intended to enable Management to better understand the price realized in each reporting period. The realized price measure does not have any standardized definition under IFRS and should not be considered a substitute for measure of performance prepared in accordance with IFRS.

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

Cautionary Statement on Forward-Looking Information

All statements, other than statements of historical fact, contained or incorporated by reference in this MD&A 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 MD&A. Forward-looking statements contained in this MD&A, include, but are not limited to, those under the headings (or headings that include) “Impact of Key Economic Trends and the COVID-10 Pandemic”, “Outlook”, “Project Updates and New Developments”, “Consolidated Results of Operations”, and “Liquidity Outlook” and include, without limitation, statements with respect to our guidance for production, production costs of sales, cash flow, free cash flow, all-in sustaining cost of sales, and capital expenditures; the declaration, payment and sustainability of the Company’s dividends or share repurchases; optimization of mine plans; identification of additional resources and reserves; the schedules and budgets for the Company’s development projects; mine life and any potential extensions; the Company’s capital reinvestment program and continuous improvement initiatives and project performance or outperformance, 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; 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 and conversions, restarting suspended or disrupted operations; environmental risks and proceedings; and resolution of pending litigation. The words “advance”, “believe”, “continue”, “estimates”, “expects”, “explore”, “future”, “growth”, “guidance”, “on budget”, “on schedule”, “on track”, “plan”, “potential” 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 MD&A, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth herein and in our MD&A for the year ended December 31, 2020, and the Annual Information Form dated March 30, 2021 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 and development of the Lobo-Marte project; commencement 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, the impact of any political tensions and uncertainty in the Russian Federation or any related sanctions and any other similar 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, 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, the European Union’s General Data Protection Regulation or similar legislation in other jurisdictions, potential amendments to and enforcement of tax laws in Russia, Ghana and Mauritania (including, but not limited to, the interpretation, implementation, application and enforcement of any such laws and amendments thereto), the modification or revocation of Russia’s international tax treaties, 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 pre-feasibility and feasibility studies, on the timelines currently expected and the results of those studies being consistent with Kinross’ current expectations, including the completion of the Manh Choh feasibility study; (5) the exchange rate between the Canadian dollar, Brazilian real, Chilean peso, Russian rouble, Mauritanian ouguiya, Ghanaian cedi 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) 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 the Tasiast and Chirano operations 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) goodwill and/or 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) that the Brazilian power plants will operate in a manner consistent with our expectations; (16) potential direct or indirect operational impacts resulting from infectious diseases or pandemics such as the ongoing COVID-19 pandemic; (17) the effectiveness of preventative actions and contingency plans put in place by the Company to respond to the COVID-19 pandemic, including, but not limited to, social distancing, travel restrictions, business continuity plans, and efforts to mitigate supply chain disruptions; (18) changes in national and local government legislation or other government actions, particularly in response to the COVID-19 pandemic; (19) litigation, regulatory proceedings and audits, and the potential ramifications thereof, being concluded in a manner consistent with the Corporation’s expectations (including without limitation the audit of mining companies in Ghana which includes the Corporation’s Ghanaian subsidiaries, litigation in Chile relating to the alleged damage of wetlands and the scope of any remediation plan or other environmental obligations arising therefrom, the ongoing litigation with the Russian tax authorities regarding dividend withholding tax and the ongoing Sunnyside litigation regarding potential liability under the U.S. Comprehensive Environmental Response, Compensation, and Liability Act); (20) that the benefits of the definitive agreement with the Government of Mauritania will result in increased stability at the Company’s operations in Mauritania; (21) the Company’s financial results, cash flows and future prospects being consistent with Company expectations in amounts sufficient to permit sustained dividend payments; (22) the impacts of the pit wall issues at Round Mountain being consistent with the Company’s expectations; (23) the ramp-up of the Tasiast SAG mill being consistent with the Company’s current expectations; and (24) the Company’s estimates regarding the timing of completion of the 21k and 24k projects. 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 assumption, sanctions (any other similar restrictions or penalties) now or subsequently imposed, other actions taken, by, against, in respect of or otherwise impacting any jurisdiction in which the Company is domiciled or operates (including but not limited to the Russian Federation, Canada, the European Union and the United States), or any government or citizens of, persons or companies domiciled in, or the Company’s business, operations or other activities in, any such jurisdiction; reductions in the ability of the Company

KINROSS GOLD CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2021

to transport and refine doré; 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, Russia, Mauritania, Ghana, 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 MD&A 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, 2020 and the Annual Information Form dated March 30, 2021. 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 $14 impact on production cost of sales per equivalent ouncesold¹.

Specific to the Russian rouble, a 10% change in the exchange rate would be expected to result in an approximate $15 impact on Russian production cost of sales per equivalent ounce sold.

Specific to the Brazilian real, a 10% change in the exchange rate would be expected to result in an approximate $25 impact on Brazilian production cost of sales per equivalent ounce sold.

A $10 per barrel change in the price of oil would be expected to result in an approximate $3 impact on production cost of sales per equivalent ounce sold.

A $100 change in the price of gold would be expected to result in an approximate $5 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 MD&A, 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 MD&A has been prepared under the supervision of Mr. John Sims who is a “qualified person” within the meaning of National Instrument 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.

1 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.

KINROSS GOLD CORPORATION

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited expressed in millions of United States dollars, except share amounts)

		As at
		September 30,			December 31,
		2021			2020

Assets
Current assets
Cash and cash equivalents	Note 5	$	586.1		$	1,210.9
Restricted cash	Note 5		11.5			13.7
Accounts receivable and other assets	Note 5		202.1			122.3
Current income tax recoverable			6.5			29.9
Inventories	Note 5		1,156.1			1,072.9
			1,962.3			2,449.7
Non-current assets
Property, plant and equipment	Note 5		7,620.4			7,653.5
Goodwill			158.8			158.8
Long-term investments	Note 5		86.3			113.0
Investment in joint venture			17.8			18.3
Other long-term assets	Note 5		559.7			537.2
Deferred tax assets			5.9			2.7
Total assets		$	10,411.2		$	10,933.2

Liabilities
Current liabilities
Accounts payable and accrued liabilities	Note 5	$	482.4		$	479.2
Current income tax payable			142.3			114.5
Current portion of long-term debt and credit facilities	Note 8		30.0			499.7
Current portion of provisions	Note 9		85.0			63.8
Other current liabilities	Note 5		31.8			49.7
Deferred payment obligation	Note 4		-			141.5
			771.5			1,348.4
Non-current liabilities
Long-term debt and credit facilities	Note 8		1,398.7			1,424.2
Provisions	Note 9		855.5			861.1
Long-term lease liabilities			39.6			46.3
Other long-term liabilities			119.8			102.4
Deferred tax liabilities			476.9			487.8
Total liabilities		$	3,662.0		$	4,270.2

Equity
Common shareholders' equity
Common share capital	Note 10	$	4,471.8		$	4,473.7
Contributed surplus			10,686.2			10,709.0
Accumulated deficit			(8,452.1	)		(8,562.5	)
Accumulated other comprehensive income (loss)	Note 5		(24.9	)		(23.7	)
Total common shareholders' equity			6,681.0			6,596.5
Non-controlling interests			68.2			66.5
Total equity		$	6,749.2		$	6,663.0
Commitments and contingencies	Note 15
Subsequent events	Note 10 and 15
Total liabilities and equity		$	10,411.2		$	10,933.2

Common shares
Authorized		Unlimited			Unlimited
Issued and outstanding	Note 10		1,256,648,138			1,258,320,461

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

KINROSS GOLD CORPORATION

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited expressed in millions of United States dollars, except share and per share amounts)

		Three months ended						Nine months ended
		September 30,			September 30,			September 30,			September 30,
		2021			2020			2021			2020

Revenue
Metal sales		$	862.5		$	1,131.3		$	2,849.9		$	3,018.3

Cost of sales
Production cost of sales			421.0			439.4			1,300.9			1,289.2
Depreciation, depletion and amortization			208.8			204.8			641.6			608.3
Reversal of impairment charge	Note 6		-			-			-			(48.3	)
Total cost of sales			629.8			644.2			1,942.5			1,849.2
Gross profit			232.7			487.1			907.4			1,169.1
Other operating expense			94.0			43.6			207.7			118.4
Exploration and business development			36.6			24.8			96.0			61.8
General and administrative			29.2			25.3			94.6			81.8
Operating earnings			72.9			393.4			509.1			907.1
Other income (expense) - net	Note 5		3.6			(3.4	)		(9.0	)		5.2
Finance income			1.7			0.8			5.2			3.8
Finance expense	Note 5		(19.4	)		(27.4	)		(58.7	)		(85.9	)
Earnings before tax			58.8			363.4			446.6			830.2
Income tax expense - net	Note 13		(104.7	)		(121.8	)		(224.9	)		(269.3	)
Net (loss) earnings		$	(45.9	)	$	241.6		$	221.7		$	560.9
Net (loss) earnings attributable to:
Non-controlling interests		$	(1.0	)	$	0.9		$	(2.2	)	$	1.8
Common shareholders		$	(44.9	)	$	240.7		$	223.9		$	559.1

(Loss) earnings per share attributable to common shareholders
Basic		$	(0.04	)	$	0.19		$	0.18		$	0.44
Diluted		$	(0.04	)	$	0.19		$	0.18		$	0.44

Weighted average number of common shares outstanding (millions)	Note 12
Basic			1,261.2			1,258.1			1,260.6			1,256.8
Diluted			1,261.2			1,269.0			1,269.2			1,267.6

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

KINROSS GOLD CORPORATION

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(Unaudited expressed in millions of United States dollars)

		Three months ended						Nine months ended
		September 30,			September 30,			September 30,			September 30,
		2021			2020			2021			2020


Net (loss) earnings		$	(45.9	)	$	241.6		$	221.7		$	560.9

Other comprehensive (loss) income, net of tax:	Note 5
Items that will not be reclassified to profit or loss:
Equity investments at fair value through other comprehensive income ("FVOCI") - net change in fair value^(a)			(21.3	)		4.7			(29.9	)		(4.7	)

Items that are or may be reclassified to profit or loss in subsequent periods:
Cash flow hedges - effective portion of changes in fair value^(b)			(1.1	)		(0.9	)		36.9			(43.8	)
Cash flow hedges - reclassified out of accumulated other comprehensive income ("AOCI")^(c)			(4.0	)		7.0			(8.2	)		20.3
			(26.4	)		10.8			(1.2	)		(28.2	)
Total comprehensive (loss) income		$	(72.3	)	$	252.4		$	220.5		$	532.7

Attributable to non-controlling interests		$	(1.0	)	$	0.9		$	(2.2	)	$	1.8
Attributable to common shareholders		$	(71.3	)	$	251.5		$	222.7		$	530.9

(a) Net of tax expense of $nil, 3 months; $nil, 9 months (2020 - $nil, 3 months; $nil, 9 months).

(b) Net of tax (recovery) expense of $(1.4) million, 3 months; $11.6 million, 9 months (2020 - $(0.6) million, 3 months; $(16.2) million, 9 months).

(c) Net of tax (recovery) expense of $(1.1) million, 3 months; $(2.0) million, 9 months (2020 - $2.5 million, 3 months; $6.4 million, 9 months).

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

KINROSS GOLD CORPORATION

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited expressed in millions of United States dollars)

		Three months ended						Nine months ended
		September 30,			September 30,			September 30,			September 30,
		2021			2020			2021			2020
Net inflow (outflow) of cash related to the following activities:
Operating:
Net (loss) earnings		$	(45.9	)	$	241.6		$	221.7		$	560.9
Adjustments to reconcile net (loss) earnings to net cash provided from operating activities:
Depreciation, depletion and amortization			208.8			204.8			641.6			608.3
Reversal of impairment charge	Note 6		-			-			-			(48.3	)
Share-based compensation expense			2.4			3.1			8.4			10.4
Finance expense			19.4			27.4			58.7			85.9
Deferred tax (recovery) expense			(6.8	)		63.4			(23.6	)		175.9
Foreign exchange (gains) losses and other			12.6			9.3			47.1			(8.0	)
Changes in operating assets and liabilities:
Accounts receivable and other assets			(5.1	)		(40.9	)		(29.4	)		(168.6	)
Inventories			(10.4	)		(13.0	)		(18.1	)		26.3
Accounts payable and accrued liabilities			120.4			78.4			224.3			190.6
Cash flow provided from operating activities			295.4			574.1			1,130.7			1,433.4
Income taxes paid			(25.5	)		(30.0	)		(192.8	)		(156.9	)
Net cash flow provided from operating activities			269.9			544.1			937.9			1,276.5
Investing:
Additions to property, plant and equipment			(231.0	)		(212.1	)		(640.6	)		(617.8	)
Interest paid capitalized to property, plant and equipment	Note 8		(14.8	)		(16.9	)		(46.5	)		(43.0	)
Acquisitions	Note 4		-			(122.5	)		(141.5	)		(250.8	)
Net (additions to) proceeds from the sale of long-term investments and other assets			(12.4	)		2.4			(28.9	)		(0.9	)
Net proceeds from the sale of property, plant and equipment			0.4			1.1			1.0			3.3
Decrease (increase) in restricted cash - net			0.5			0.2			2.2			(22.9	)
Interest received and other - net			(1.7	)		0.7			(0.3	)		2.4
Net cash flow used in investing activities			(259.0	)		(347.1	)		(854.6	)		(929.7	)
Financing:
Proceeds from drawdown of debt			-			-			-			950.0
Repayment of debt	Note 8		-			(750.0	)		(500.0	)		(850.0	)
Interest paid	Note 8		(20.0	)		(34.1	)		(46.9	)		(63.1	)
Payment of lease liabilities			(8.5	)		(4.0	)		(24.1	)		(13.5	)
Dividends paid to common shareholders	Note 10		(37.8	)		-			(113.5	)		-
Repurchase and cancellation of shares	Note 10		(31.8	)		-			(31.8	)		-
Other - net			(1.0	)		1.0			7.9			(3.6	)
Net cash flow (used in) provided from financing activities			(99.1	)		(787.1	)		(708.4	)		19.8
Effect of exchange rate changes on cash and cash equivalents			(1.3	)		(3.5	)		0.3			(8.2	)
(Decrease) increase in cash and cash equivalents			(89.5	)		(593.6	)		(624.8	)		358.4
Cash and cash equivalents, beginning of period			675.6			1,527.1			1,210.9			575.1
Cash and cash equivalents, end of period		$	586.1		$	933.5		$	586.1		$	933.5

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

KINROSS GOLD CORPORATION

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited expressed in millions of United States dollars)

		Three months ended						Nine months ended
		September 30,			September 30,			September 30,			September 30,
		2021			2020			2021			2020

Common share capital
Balance at the beginning of the period		$	4,490.5		$	4,472.0		$	4,473.7		$	14,926.2
Transfer to contributed surplus on reduction of stated capital	Note 10		-			-			-			(10,473.4	)
Transfer from contributed surplus on exercise of restricted shares			-			0.1			7.8			7.8
Repurchase and cancellation of shares	Note 10		(18.8	)		-			(18.8	)		-
Options exercised, including cash			0.1			1.5			9.1			13.0
Balance at the end of the period		$	4,471.8		$	4,473.6		$	4,471.8		$	4,473.6

Contributed surplus
Balance at the beginning of the period		$	10,697.2		$	10,704.3		$	10,709.0		$	242.1
Transfer from common share capital on reduction of stated capital	Note 10		-			-			-			10,473.4
Repurchase and cancellation of shares	Note 10		(13.0	)		-			(13.0	)		-
Share-based compensation			2.4			3.1			8.4			10.4
Transfer of fair value of exercised options and restricted shares			(0.4	)		(1.7	)		(18.2	)		(20.2	)
Balance at the end of the period		$	10,686.2		$	10,705.7		$	10,686.2		$	10,705.7

Accumulated deficit
Balance at the beginning of the period		$	(8,369.4	)	$	(9,511.0	)	$	(8,562.5	)	$	(9,829.4	)
Dividends declared	Note 10		(37.8	)		(37.7	)		(113.5	)		(37.7	)
Net (loss) earnings attributable to common shareholders			(44.9	)		240.7			223.9			559.1
Balance at the end of the period		$	(8,452.1	)	$	(9,308.0	)	$	(8,452.1	)	$	(9,308.0	)

Accumulated other comprehensive income (loss)
Balance at the beginning of the period		$	1.5		$	(59.4	)	$	(23.7	)	$	(20.4	)
Other comprehensive (loss) income, net of tax			(26.4	)		10.8			(1.2	)		(28.2	)
Balance at the end of the period		$	(24.9	)	$	(48.6	)	$	(24.9	)	$	(48.6	)
Total accumulated deficit and accumulated other comprehensive loss		$	(8,477.0	)	$	(9,356.6	)	$	(8,477.0	)	$	(9,356.6	)

Total common shareholders' equity		$	6,681.0		$	5,822.7		$	6,681.0		$	5,822.7

Non-controlling interests
Balance at the beginning of the period		$	67.8		$	15.0		$	66.5		$	14.1
Net (loss) earnings attributable to non-controlling interests			(1.0	)		0.9			(2.2	)		1.8
Non-controlling interest resulting from Manh Choh acquisition	Note 4		-			41.0			-			41.0
Funding from non-controlling interest			1.4			-			3.9			-
Balance at the end of the period		$	68.2		$	56.9		$	68.2		$	56.9

Total equity		$	6,749.2		$	5,879.6		$	6,749.2		$	5,879.6

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

KINROSS GOLD CORPORATION

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine months ended September 30, 2021 and 2020

(Unaudited, tabular amounts in millions of United States dollars, unless otherwise noted)

1.	DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS

Kinross Gold Corporation and its subsidiaries and joint arrangements (collectively, "Kinross" or the "Company") are engaged in gold mining and related activities, including exploration and acquisition of gold-bearing properties, extraction and processing of gold-containing ore and reclamation of gold mining properties. Kinross Gold Corporation, the ultimate parent, is a public company incorporated and domiciled in Canada with its registered office at 25 York Street, 17th floor, Toronto, Ontario, Canada, M5J 2V5. Kinross' gold production and exploration activities are carried out principally in Canada, the United States, the Russian Federation, Brazil, Chile, Ghana and Mauritania. Gold is produced in the form of doré, which is shipped to refineries for final processing. Kinross also produces and sells a quantity of silver. The Company is listed on the Toronto Stock Exchange and the New York Stock Exchange.

The interim condensed consolidated financial statements of the Company for the period ended September 30, 2021 were authorized for issue in accordance with a resolution of the board of directors on November 10, 2021.

2.	BASIS OF PRESENTATION

These unaudited interim condensed consolidated financial statements (“interim financial statements”) have been prepared in accordance with IAS 34 “Interim Financial Reporting”. The accounting policies applied in these interim financial statements are consistent with those used in the annual audited consolidated financial statements for the year ended December 31, 2020.

These interim financial statements do not include all disclosures required by International Financial Reporting Standards (“IFRS”) for annual audited consolidated financial statements and accordingly should be read in conjunction with the Company’s annual audited consolidated financial statements for the year ended December 31, 2020 prepared in accordance with IFRS as issued by the International Accounting Standards Board.

3.	SIGNIFICANT JUDGMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of these interim financial statements requires the use of certain significant accounting estimates and judgments by management in applying the Company’s accounting policies. The areas involving significant judgments, estimates and assumptions have been set out in and are consistent with Note 5 of the Company’s annual audited consolidated financial statements for the year ended December 31, 2020.

4.	ACQUISITIONS

i.	Acquisition of Chulbatkan license

On January 16, 2020, the Company closed the acquisition of the Chulbatkan license and paid the first installment of $141.5 million, representing 50% of the $283.0 million fixed purchase price, plus ordinary course net working capital adjustments of $3.1 million. On January 15, 2021, the remaining $141.5 million was paid in cash, settling the related deferred payment obligation.

ii.	Acquisition of 70% interest in the Manh Choh project

On September 30, 2020, the Company acquired a 70% interest in the Manh Choh (formerly known as “Peak”) project in Alaska for total cash consideration of $93.7 million. The acquisition was accounted for as an asset acquisition with the total purchase price of $96.9 million, comprised of cash payments of $93.7 million and total transaction costs of $3.2 million, allocated as follows:

Purchase price allocation
Mineral interests - pre-development properties	$	136.5
Land, plant and equipment		0.2
Total property, plant and equipment		136.7
Other assets - net		1.2
Non-controlling interest^(a)		(41.0	)
Total net assets acquired	$	96.9

(a)	Non-controlling interest has been recorded related to the 30% interest of Peak Gold, LLC that the Company did not acquire.

KINROSS GOLD CORPORATION

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine months ended September 30, 2021 and 2020

(Unaudited, tabular amounts in millions of United States dollars, unless otherwise noted)

5.	INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT DETAILS

Interim Condensed Consolidated Balance Sheets

i.	Cash and cash equivalents:

	September 30,		December 31,
	2021		2020
Cash on hand and balances with banks	$	433.6	$	562.0
Short-term deposits		152.5		648.9
	$	586.1	$	1,210.9

ii.	Restricted cash:

	September 30,		December 31,
	2021		2020
Restricted cash^(a)	$	11.5	$	13.7

(a)	Restricted cash relates to loan escrow judicial deposits and environmental indemnity deposits.

iii.	Accounts receivable and other assets:

	September 30,		December 31,
	2021		2020
Trade receivables	$	3.7	$	8.1
Prepaid expenses		34.6		21.6
VAT receivable		53.6		46.6
Deposits		76.4		28.9
Unrealized fair value of derivative assets^(a)		23.2		6.5
Other		10.6		10.6
	$	202.1	$	122.3

(a)	See Note 7 for details of the current portion of unrealized fair value of derivative assets.

iv.	Inventories:

	September 30,			December 31,
	2021			2020
Ore in stockpiles^(a)	$	245.7		$	277.4
Ore on leach pads^(b)		664.3			498.8
In-process		91.1			108.0
Finished metal		60.9			50.3
Materials and supplies		425.8			448.2
		1,487.8			1,382.7
Long-term portion of ore in stockpiles and ore on leach pads^(a),(b)		(331.7	)		(309.8	)
	$	1,156.1		$	1,072.9

(a)	Ore in stockpiles relates to the Company’s operating mines. Low-grade material not scheduled for processing within the next 12 months is included in other long-term assets. See Note 5vii.

(b)

Ore on leach pads relates to the Company's Tasiast, Bald Mountain, Round Mountain and Fort Knox mines. Based on current mine plans, the Company expects to place the last tonne of ore on its leach pads at Bald Mountain in 2023, Round Mountain in 2026 and Fort Knox in 2028. The last tonne of ore was placed on the Tasiast leach pads during 2020. Material not scheduled for processing within the next 12 months is included in other long-term assets. See Note 5vii.

KINROSS GOLD CORPORATION

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine months ended September 30, 2021 and 2020

(Unaudited, tabular amounts in millions of United States dollars, unless otherwise noted)

v.	Property, plant and equipment:

				Mineral Interests
	Land, plant and equipment^(a)			Development and operating properties^(b)			Pre-development properties^(c)		Total
Cost
Balance at January 1, 2021	$	10,190.0		$	10,136.2		$	465.3	$	20,791.5
Additions		342.8			338.5			34.2		715.5
Capitalized interest		20.8			15.4			2.9		39.1
Disposals		(42.1	)		-			-		(42.1	)
Other		0.1			1.6			2.4		4.1
Balance at September 30, 2021		10,511.6			10,491.7			504.8		21,508.1

Accumulated depreciation, depletion, and amortization
Balance at January 1, 2021	$	(6,471.3	)	$	(6,666.7	)	$	-	$	(13,138.0	)
Depreciation, depletion and amortization		(423.9	)		(355.9	)		-		(779.8	)
Disposals		30.7			-			-		30.7
Other		1.8			(2.4	)		-		(0.6	)
Balance at September 30, 2021		(6,862.7	)		(7,025.0	)		-		(13,887.7	)

Net book value	$	3,648.9		$	3,466.7		$	504.8	$	7,620.4

Amount included above as at September 30, 2021:
Assets under construction	$	498.9		$	314.8		$	53.2	$	866.9
Assets not being depreciated^(d)	$	735.8		$	648.5		$	504.8	$	1,889.1

(a)

Additions includes $9.2 million of right-of-use assets for lease arrangements entered into during the nine months ended September 30, 2021. Depreciation, depletion and amortization includes depreciation for leased right-of-use assets of $23.3 million during the nine months ended September 30, 2021. The net book value of property, plant and equipment includes leased right-of use assets with an aggregate net book value of $62.1 million as at September 30, 2021.

(b)	At September 30, 2021, the significant development and operating properties are Fort Knox, Round Mountain, Bald Mountain, Paracatu, Kupol, Tasiast, Chirano, La Coipa and Lobo-Marte.

(c)	At September 30, 2021, the significant pre-development properties are the Chulbatkan license area, including the Udinsk project, and the Manh Choh project.

(d)	Assets not being depreciated relate to land, capitalized exploration and evaluation (“E&E”) costs, assets under construction, which relate to expansion projects, and other assets that are in various stages of being readied for use.

KINROSS GOLD CORPORATION

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine months ended September 30, 2021 and 2020

(Unaudited, tabular amounts in millions of United States dollars, unless otherwise noted)

				Mineral Interests
	Land, plant and equipment^(a)			Development and operating properties^(b)			Pre-development properties			Total
Cost
Balance at January 1, 2020	$	9,715.0		$	9,540.6		$	13.4		$	19,269.0
Additions		535.5			539.9			15.5			1,090.9
Acquisitions^(c)		8.2			15.4			441.8			465.4
Capitalized interest		22.8			25.5			0.8			49.1
Disposals		(82.9	)		-			(0.1	)		(83.0	)
Other		(8.6	)		14.8			(6.1	)		0.1
Balance at December 31, 2020		10,190.0			10,136.2			465.3			20,791.5

Accumulated depreciation, depletion, amortization and reversal of impairment charges
Balance at January 1, 2020	$	(6,114.1	)	$	(6,814.9	)	$	-		$	(12,929.0	)
Depreciation, depletion and amortization		(589.9	)		(380.3	)		-			(970.2	)
Reversals of impairment charges^(d)		160.5			528.5			-			689.0
Disposals		73.8			-			-			73.8
Other		(1.6	)		-			-			(1.6	)
Balance at December 31, 2020		(6,471.3	)		(6,666.7	)		-			(13,138.0	)

Net book value	$	3,718.7		$	3,469.5		$	465.3		$	7,653.5

Amount included above as at December 31, 2020:
Assets under construction	$	540.8		$	189.1		$	19.1		$	749.0
Assets not being depreciated^(e)	$	769.9		$	607.0		$	465.3		$	1,842.2

(a)

Additions includes $38.2 million of right-of-use assets for lease arrangements entered into during the year ended December 31, 2020. Depreciation, depletion and amortization includes depreciation for leased right-of-use assets of $16.1 million during the year ended December 31, 2020. The net book value of property, plant and equipment includes leased right-of use assets with an aggregate net book value of $76.2 million as at December 31, 2020.

(b)	At December 31, 2020, the significant development and operating properties are Fort Knox, Round Mountain, Bald Mountain, Paracatu, Kupol, Tasiast, Chirano, La Coipa, and Lobo-Marte.

(c)	During the year ended December 31, 2020, the Company acquired the Chulbatkan license area and a 70% interest in the Manh Choh project, with both respective mineral interests classified in pre-development properties.

(d)	At December 31, 2020, impairment reversals of property, plant and equipment were recorded at Tasiast, Chirano, and Lobo-Marte. At June 30, 2020, an impairment reversal was recorded at Lobo-Marte, entirely related to property, plant and equipment.

(e)	Assets not being depreciated relate to land, capitalized E&E costs, assets under construction, which relate to expansion projects, and other assets that are in various stages of being readied for use.

Capitalized interest primarily relates to qualifying capital expenditures at Tasiast, Fort Knox and La Coipa and had an annualized weighted average borrowing rate of 5.79% for the nine months ended September 30, 2021 (nine months ended September 30, 2020 - 5.07%).

At September 30, 2021, $582.8 million of E&E assets were included in mineral interests (December 31, 2020 - $526.1 million). During the nine months ended September 30, 2021, the Company had $2.4 million of additions and no transfers to capitalized development. During the nine months ended September 30, 2020, the Company had additions of $441.0 million, primarily related to the purchase of the Chulbatkan license and a 70% interest in the Manh Choh project, and transferred $130.0 million and $53.4 million to development and operating properties related to La Coipa and Chirano, respectively.

During the three and nine months ended September 30, 2021, $22.5 million and $54.3 million, respectively of E&E costs (three and nine months ended September 30, 2020 - $5.1 million and $15.3 million, respectively) were capitalized and included in investing cash flows. During the three and nine months ended September 30, 2021, $13.9 million and $38.6 million of E&E costs, respectively (three and nine months ended September 30, 2020 - $6.1 million and $10.5 million, respectively), were expensed and included in operating cash flows.

KINROSS GOLD CORPORATION

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine months ended September 30, 2021 and 2020

(Unaudited, tabular amounts in millions of United States dollars, unless otherwise noted)

vi.	Long-term investments:

Gains and losses on equity investments at FVOCI are recorded in AOCI as follows:

	September 30, 2021					December 31, 2020
	Fair value		Gains (losses) in AOCI^(a)			Fair value		Gains (losses) in AOCI^(a)
Investments in an accumulated gain position	$	57.2	$	0.9		$	80.9	$	18.2
Investments in an accumulated loss position		29.1		(59.6	)		32.1		(47.0	)
Net realized gains		-		2.9			-		2.9
	$	86.3	$	(55.8	)	$	113.0	$	(25.9	)

(a)	See Note 5x for details of changes in fair values recognized in other comprehensive income during the nine months ended September 30, 2021 and 2020.

vii.	Other long-term assets:

	September 30,		December 31,
	2021		2020
Long-term portion of ore in stockpiles and ore on leach pads^(a)	$	331.7	$	309.8
Deferred charges, net of amortization		7.2		6.0
Long-term receivables		109.8		124.1
Restricted cash^(b)		25.0		25.0
Unrealized fair value of derivative assets^(c)		25.6		10.5
Other		60.4		61.8
	$	559.7	$	537.2

(a)

Long-term portion of ore in stockpiles and ore on leach pads represents low-grade material not scheduled for processing within the next 12 months. As at September 30, 2021, long-term ore in stockpiles was at the Company’s Paracatu, Tasiast, and Kupol mines, and long-term ore on leach pads was at the Company’s Fort Knox, Bald Mountain, and Round Mountain mines.

(b)	See Note 8iii for details of the Tasiast loan and cash restricted for future loan payments as at September 30, 2021.

(c)	See Note 7 for details of the non-current portion of unrealized fair value of derivative assets.

viii.

Accounts payable and accrued liabilities:

	September 30,		December 31,
	2021		2020
Trade payables	$	91.6	$	89.1
Accrued liabilities		252.2		242.8
Employee related accrued liabilities		138.6		147.3
	$	482.4	$	479.2

ix.	Other current liabilities:

	September 30,		December 31,
	2021		2020
Current portion of lease liabilities	$	23.2	$	28.4
Current portion of unrealized fair value of derivative liabilities^(a)		8.6		21.3
	$	31.8	$	49.7

(a)	See Note 7 for details of the current portion of unrealized fair value of derivative liabilities.

KINROSS GOLD CORPORATION

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine months ended September 30, 2021 and 2020

(Unaudited, tabular amounts in millions of United States dollars, unless otherwise noted)

x.	Accumulated other comprehensive income (loss):

	Long-term Investments			Derivative Contracts			Total
Balance at December 31, 2019	$	(26.2	)	$	5.8		$	(20.4	)
Other comprehensive income (loss) before tax		0.3			(5.7	)		(5.4	)
Tax		-			2.1			2.1
Balance at December 31, 2020	$	(25.9	)	$	2.2		$	(23.7	)
Other comprehensive income (loss) before tax		(29.9	)		38.3			8.4
Tax		-			(9.6	)		(9.6	)
Balance at September 30, 2021	$	(55.8	)	$	30.9		$	(24.9	)

Interim Condensed Consolidated Statements of Operations

xi.	Other income (expense) – net:

	Three months ended September 30,						Nine months ended September 30,
	2021			2020			2021			2020
Net losses on dispositions of assets	$	(2.3	)	$	(0.7	)	$	(10.4	)	$	(0.4	)
Foreign exchange gains (losses) - net		6.2			(6.5	)		(1.4	)		0.9
Net non-hedge derivative losses		(0.2	)		(1.7	)		(0.7	)		(5.9	)
Other - net		(0.1	)		5.5			3.5			10.6
	$	3.6		$	(3.4	)	$	(9.0	)	$	5.2

xii.	Finance expense:

	Three months ended September 30,						Nine months ended September 30,
	2021			2020			2021			2020
Accretion of reclamation and remediation obligations	$	(3.6	)	$	(5.7	)	$	(10.7	)	$	(17.2	)
Interest expense, including accretion of debt and lease liabilities^{(a), (b)}		(15.8	)		(21.7	)		(48.0	)		(68.7	)
	$	(19.4	)	$	(27.4	)	$	(58.7	)	$	(85.9	)

(a)	During the three and nine months ended September 30, 2021, $9.1 million and $39.1 million, respectively, of interest was capitalized to property, plant and equipment (three and nine months ended September 30, 2020 - $12.2 million and $33.9 million, respectively). See Note 5v.

(b)	During the three and nine months ended September 30, 2021, accretion of lease liabilities was $1.0 million and $3.0 million, respectively (three and nine months ended September 30, 2020 - $0.7 million and $2.2 million, respectively).

Total interest paid, including interest capitalized, during the three and nine months ended September 30, 2021 was $34.8 million and $93.4 million, respectively (three and nine months ended September 30, 2020 - $51.0 million and $106.1 million, respectively).

6.	REVERSAL OF IMPAIRMENT CHARGE

At June 30, 2020, the Company identified the increase in mineral reserves at Lobo-Marte as an indication of impairment reversal and performed an impairment assessment to determine the recoverable amount of the Lobo-Marte cash generating unit. The recoverable amount was determined to be greater than the carrying amount, and as such, an impairment reversal of $48.3 million was recorded to property, plant and equipment. There was no tax impact.

KINROSS GOLD CORPORATION

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine months ended September 30, 2021 and 2020

(Unaudited, tabular amounts in millions of United States dollars, unless otherwise noted)

7.	FAIR VALUE MEASUREMENT

(a)	Recurring fair value measurement

Carrying values for financial instruments carried at amortized cost, including cash and cash equivalents, restricted cash, short-term investments, accounts receivable, and accounts payable and accrued liabilities, approximate fair values due to their short-term maturities.

Assets (liabilities) measured at fair value on a recurring basis as at September 30, 2021 include:

	Level 1		Level 2			Level 3		Aggregate Fair Value
Equity investments at FVOCI	$	86.3	$	-		$	-	$	86.3
Derivative contracts:
Foreign currency forward and collar contracts		-		(3.2	)		-		(3.2	)
Energy swap contracts		-		44.3			-		44.3
Total return swap contracts		-		(3.9	)		-		(3.9	)
	$	86.3	$	37.2		$	-	$	123.5

The valuation techniques that are used to measure fair value are as follows:

Equity investments at FVOCI

Equity investments at FVOCI include shares in publicly traded companies listed on a stock exchange. The fair value of equity investments at FVOCI is determined based on a market approach reflecting the closing price of each particular security at the consolidated balance sheet date. The closing price is a quoted market price obtained from the exchange that is the principal active market for the particular security, and therefore equity investments at FVOCI are classified within Level 1 of the fair value hierarchy.

Derivative contracts

The Company’s derivative contracts are valued using pricing models and the Company generally uses similar models to value similar instruments. Such pricing models require a variety of inputs, including contractual cash flows, quoted market prices, applicable yield curves and credit spreads. The fair value of derivative contracts is based on quoted market prices for comparable contracts and represents the amount the Company would have received from, or paid to, a counterparty to unwind the contract at the quoted market rates in effect at the consolidated balance sheet date and therefore derivative contracts are classified within Level 2 of the fair value hierarchy.

KINROSS GOLD CORPORATION

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine months ended September 30, 2021 and 2020

(Unaudited, tabular amounts in millions of United States dollars, unless otherwise noted)

The following table summarizes information about derivative contracts outstanding at September 30, 2021 and December 31, 2020:

	September 30, 2021						December 31, 2020
	Asset / (Liability) Fair Value			AOCI			Asset / (Liability) Fair Value			AOCI
Currency contracts
Foreign currency forward and collar contracts^(a)	$	(3.2	)	$	(2.3	)	$	(4.3	)	$	(2.5	)

Commodity contracts
Energy swap contracts^(b)		44.3			33.2			7.6			4.7

Other contracts
Total return swap contracts		(3.9	)		-			(11.0	)		-


Total all contracts	$	37.2		$	30.9		$	(7.7	)	$	2.2

Unrealized fair value of derivative assets
Current	$	23.2					$	6.5
Non-current		25.6						10.5
	$	48.8					$	17.0
Unrealized fair value of derivative liabilities
Current	$	(8.6	)				$	(21.3	)
Non-current		(3.0	)					(3.4	)
	$	(11.6	)				$	(24.7	)
Total net fair value	$	37.2					$	(7.7	)

(a)	Of the total amount recorded in AOCI at September 30, 2021, $(2.1) million will be reclassified out of AOCI within the next 12 months as a result of settling the contracts.

(b)	Of the total amount recorded in AOCI at September 30, 2021, $15.0 million will be reclassified out of AOCI within the next 12 months as a result of settling the contracts.

(b)	Fair value of financial assets and liabilities not measured and recognized at fair value

Long-term debt is measured at amortized cost. The fair value of long-term debt is primarily measured using market determined variables, and therefore is classified within Level 2 of the fair value hierarchy. See Note 8.

KINROSS GOLD CORPORATION

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine months ended September 30, 2021 and 2020

(Unaudited, tabular amounts in millions of United States dollars, unless otherwise noted)

8.	LONG-TERM DEBT AND CREDIT FACILITIES


			September 30, 2021															December 31, 2020
		Interest Rates	Nominal Amount				Deferred Financing Costs				Carrying Amount^(a)				Fair Value^(b)			Carrying Amount^(a)				Fair Value^(b)

Senior notes	(i)	4.50%-6.875%		$	1,248.2			$	(6.6	)		$	1,241.6			$	1,470.2		$	1,739.8			$	1,999.5
Revolving credit facility	(ii)	LIBOR plus 1.45%			-				-			$	-				-			-				-
Tasiast loan	(iii)	LIBOR plus 4.380%			200.0				(12.9	)		$	187.1				200.0			184.1				200.0
Total long-term and current debt				$	1,448.2			$	(19.5	)		$	1,428.7			$	1,670.2		$	1,923.9			$	2,199.5
Less: current portion					(30.0	)			-				(30.0	)			-			(499.7	)			(509.3	)
Long-term debt and credit facility				$	1,418.2			$	(19.5	)		$	1,398.7			$	1,670.2		$	1,424.2			$	1,690.2

(a)	Includes transaction costs on senior notes and Tasiast loan financings.

(b)	The fair value of senior notes is primarily determined using quoted market determined variables. See Note 7(b).

(i)	Senior notes

(ii)	Revolving credit facility

On July 23, 2021, the Company amended its $1,500.0 million revolving credit facility to extend the maturity to July 23, 2026.

As at September 30, 2021, the Company had utilized $6.5 million (December 31, 2020 - $7.5 million) of its $1,500.0 million revolving credit facility, entirely for letters of credit.

Type of credit
Revolving credit facility	LIBOR plus 1.45%
Letters of credit	0.967-1.45%
Standby fee applicable to unused availability	0.290%

The revolving credit facility agreement contains various covenants including limits on indebtedness, asset sales and liens. The Company was in compliance with its financial covenant in the credit agreement at September 30, 2021.

(iii)

Tasiast Loan

KINROSS GOLD CORPORATION

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine months ended September 30, 2021 and 2020

(Unaudited, tabular amounts in millions of United States dollars, unless otherwise noted)

(iv)

Other

The Company has a $300.0 million Letter of Credit guarantee facility with Export Development Canada (“EDC”) with a maturity date of June 30, 2022. Total fees related to letters of credit under this facility were 0.75% of the utilized amount. As at September 30, 2021, $230.2 million (December 31, 2020 - $228.9 million) was utilized under this facility.

(v)	Changes in liabilities arising from financing activities

	Long-term debt and credit facilities			Lease liabilities			Accrued interest payable^(a)			Total
Balance as at January 1, 2021	$	1,923.9		$	74.7		$	33.7		$	2,032.3
Changes from financing cash flows
Debt repayments		(500.0	)		-			-			(500.0	)
Interest paid		-			-			(46.9	)		(46.9	)
Payment of lease liabilities		-			(24.1	)		-			(24.1	)
		1,423.9			50.6			(13.2	)		1,461.3
Other changes
Interest expense and accretion	$	-		$	3.0		$	45.0		$	48.0
Capitalized interest		-			-			39.1			39.1
Capitalized interest paid		-			-			(46.5	)		(46.5	)
Additions of lease liabilities		-			9.2			-			9.2
Other		4.8			-			(14.3	)		(9.5	)
		4.8			12.2			23.3			40.3
Balance as at September 30, 2021	$	1,428.7		$	62.8		$	10.1		$	1,501.6

(a)	Included in Accounts payable and accrued liabilities.

	Long-term debt and credit facilities			Lease liabilities			Accrued interest payable^(a)			Total
Balance as at January 1, 2020	$	1,837.4		$	54.9		$	33.3		$	1,925.6
Changes from financing cash flows
Debt issued		950.0			-			-			950.0
Debt repayments		(850.0	)		-			-			(850.0	)
Interest paid		-			-			(63.1	)		(63.1	)
Payment of lease liabilities		-			(20.7	)		-			(20.7	)
		1,937.4			34.2			(29.8	)		1,941.8
Other changes
Interest expense and accretion	$	-		$	3.0		$	86.6		$	89.6
Capitalized interest		-			-			49.1			49.1
Capitalized interest paid		-			-			(47.9	)		(47.9	)
Additions of lease liabilities		-			38.2			-			38.2
Other		(13.5	)		(0.7	)		(24.3	)		(38.5	)
		(13.5	)		40.5			63.5			90.5
Balance as at December 31, 2020	$	1,923.9		$	74.7		$	33.7		$	2,032.3

(a)	Included in Accounts payable and accrued liabilities.

KINROSS GOLD CORPORATION

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine months ended September 30, 2021 and 2020

(Unaudited, tabular amounts in millions of United States dollars, unless otherwise noted)

9.	PROVISIONS

	Reclamation and remediation obligations (i)			Other			Total
Balance at January 1, 2021	$	896.1		$	28.8		$	924.9
Additions		-			29.1			29.1
Reductions		-			(5.0	)		(5.0	)
Reclamation spending		(19.2	)		-			(19.2	)
Accretion		10.7			-			10.7
Balance at September 30, 2021	$	887.6		$	52.9		$	940.5

Current portion		54.2			30.8			85.0
Non-current portion		833.4			22.1			855.5
	$	887.6		$	52.9		$	940.5

(i)	Reclamation and remediation obligations

The Company conducts its operations so as to protect the public health and the environment, and to comply with all applicable laws and regulations governing protection of the environment. Reclamation and remediation obligations arise throughout the life of each mine. The Company estimates future reclamation costs based on the level of current mining activity and estimates of costs required to fulfill the Company’s future obligations. The above table details the items that affect the reclamation and remediation obligations.

Regulatory authorities in certain jurisdictions require that security be provided to cover the estimated reclamation and remediation obligations. As at September 30, 2021, letters of credit totaling $388.1 million (December 31, 2020 - $379.9 million) had been issued to various regulatory agencies to satisfy financial assurance requirements for this purpose. The letters of credit were issued against the Company's Letter of Credit guarantee facility with EDC, the revolving credit facility, and pursuant to arrangements with certain international banks. The Company is in compliance with all applicable requirements under these facilities. As at September 30, 2021, $297.5 million (December 31, 2020 - $289.3 million) of surety bonds were outstanding as security over reclamation and remediation obligations with respect to Kinross’ properties in the United States. The surety bonds were issued pursuant to arrangements with international insurance companies.

10.	COMMON SHARE CAPITAL

The authorized share capital of the Company is comprised of an unlimited number of common shares without par value. A summary of common share transactions for the nine months ended September 30, 2021 and year ended December 31, 2020 is as follows:

	Nine months ended September 30, 2021						Year ended December 31, 2020
	Number of shares			Amount			Number of shares		Amount
	(000's)						(000's)
Common shares
Balance at January 1,		1,258,320		$	4,473.7			1,253,766	$	14,926.2
Transfer to contributed surplus on reduction of stated capital^(a)		-			-			-		(10,473.4	)
Repurchase and cancellation of shares		(5,290	)		(18.8	)		-		-
Issued under share option and restricted share plans		3,618			16.9			4,554		20.9
Balance at end of period		1,256,648		$	4,471.8			1,258,320	$	4,473.7

Total common share capital				$	4,471.8				$	4,473.7

(a)	Effective as of May 6, 2020, the shareholders of the Company approved a resolution to reduce the stated capital account of the common shares, with a resulting addition to contributed surplus.

KINROSS GOLD CORPORATION

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine months ended September 30, 2021 and 2020

(Unaudited, tabular amounts in millions of United States dollars, unless otherwise noted)

i.	Dividends on common shares

The following summarizes dividends declared and paid during the nine months ended September 30, 2021:

	Per share		Total amount
Dividends declared and paid during the period:
Three months ended March 31, 2021	$	0.03	$	37.8
Three months ended June 30, 2021		0.03		37.9
Three months ended September 30, 2021		0.03		37.8
Total			$	113.5

On September 17, 2020, the Board of Directors declared a dividend of $0.03 per common share to shareholders of record at the close of business on October 8, 2020. This dividend was paid on October 22, 2020.

On November 10, 2021, the Board of Directors declared a dividend of $0.03 per common share payable on December 15, 2021 to shareholders of record on December 1, 2021.

ii.	Repurchase and cancellation of common shares

On July 28, 2021, Kinross received approval from the Toronto Stock Exchange to establish a normal course issuer bid (“NCIB”) program. Under the NCIB program, the Company is authorized to purchase up to 63,096,676 of its common shares (out of the 1,261,933,539 common shares outstanding as at July 27, 2021) representing 5% of the Company’s issued and outstanding common shares, during the period starting on August 3, 2021 and ending on August 2, 2022.

During the three months ended September 30, 2021, the Company repurchased 5,459,565 common shares for $31.8 million at an average price of $5.82 per share as part of its authorized NCIB program. Of the shares repurchased, 5,289,565 shares were cancelled as of September 30, 2021. The book value of the cancelled shares was $18.8 million and was treated as a reduction to common share capital. The portion of the consideration paid for the repurchased shares in excess of their book value was treated as a reduction to contributed surplus.

As of November 10, 2021, the Company had repurchased and cancelled 8,586,587 common shares for $50.0 million.

11.	SHARE-BASED PAYMENTS

i.	Share option plan

The following table summarizes information about the stock options outstanding and exercisable at September 30, 2021:

	Nine months ended September 30, 2021
	Number of options (000's)			Weighted average exercise price (CDN$)
Outstanding at January 1, 2021		5,601		$	4.68
Exercised		(1,617	)		5.13
Forfeited		(201	)		4.99
Outstanding at end of period		3,783		$	4.47
Exercisable at end of period		3,281		$	4.47

For the nine months ended September 30, 2021, the weighted average market share price at the date of exercise was CDN$8.56.

KINROSS GOLD CORPORATION

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine months ended September 30, 2021 and 2020

(Unaudited, tabular amounts in millions of United States dollars, unless otherwise noted)

ii.	Restricted share unit plans

(a) Restricted share units (“RSUs”)

The following table summarizes information about the RSUs outstanding at September 30, 2021:

	Nine months ended September 30, 2021
	Number of units (000's)			Weighted average fair value (CDN$/unit)
Outstanding at January 1, 2021		6,475		$	5.86
Granted		2,920			8.81
Reinvested		142			6.68
Redeemed		(2,937	)		5.55
Forfeited		(409	)		6.99
Outstanding at end of period		6,191		$	7.34

As at September 30, 2021, the Company had recognized a liability of $11.9 million (December 31, 2020 - $17.6 million) in respect of its cash-settled RSUs.

(b) Restricted performance share units (“RPSUs”)

The following table summarizes information about the RPSUs outstanding at September 30, 2021:

	Nine months ended September 30, 2021
	Number of units (000's)			Weighted average fair value (CDN$/unit)
Outstanding at January 1, 2021		4,459		$	5.95
Granted		1,312			8.36
Reinvested		54			6.89
Redeemed		(1,739	)		4.92
Forfeited		(224	)		6.39
Outstanding at end of period		3,862		$	7.22

iii.	Deferred share unit (“DSU”) plan

The number of DSUs granted by the Company was 172,426 and the weighted average fair value per unit at the date of issue was CDN$7.67 for the nine months ended September 30, 2021.

There were 1,438,076 DSUs outstanding, for which the Company had recognized a liability of $7.7 million, as at September 30, 2021 (December 31, 2020 - $10.4 million).

iv.	Employee share purchase plan (“SPP”)

The compensation expense related to the employee SPP for the three and nine months ended September 30, 2021 was $0.7 million and $2.1 million, respectively (three and nine months ended September 30, 2020 - $0.6 million and $1.8 million, respectively).

KINROSS GOLD CORPORATION

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine months ended September 30, 2021 and 2020

(Unaudited, tabular amounts in millions of United States dollars, unless otherwise noted)

12.	EARNINGS (LOSS) PER SHARE

Basic and diluted net (loss) earnings attributable to common shareholders of Kinross for the three and nine months ended September 30, 2021 was $(44.9) million and $223.9 million, respectively (three and nine months ended September 30, 2020 - $240.7 million and $559.1 million, respectively).

The following table details the weighted average number of outstanding common shares for the purpose of computing basic and diluted (loss) earnings per common share for the following periods:

(Number of common shares in thousands)	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Basic weighted average shares outstanding:		1,261,196		1,258,120		1,260,567		1,256,781
Weighted average shares dilution adjustments:
Stock options^(a)		-		3,577		2,149		3,243
Restricted share units		-		2,804		2,515		2,943
Restricted performance share units		-		4,477		3,940		4,674
Diluted weighted average shares outstanding		1,261,196		1,268,978		1,269,171		1,267,641

Weighted average shares dilution adjustments - exclusions:^(b)
Stock options^(a)		1,603		-		-		221
Restricted share units		2,390		-		-		-
Restricted performance share units		3,862		-		-		-

(a)	Dilutive stock options were determined using the Company’s average share price for the period. For the three and nine months ended September 30, 2021, the average share price used was $5.97 and $6.76, respectively (three and nine months ended September 30, 2020 - $8.65 and $6.68, respectively).

(b)	These adjustments were excluded as they are anti-dilutive.

13.	INCOME AND OTHER TAXES

Total income tax expense during the three and nine months ended September 30, 2021 was $104.7 million and $224.9 million, respectively (three and nine months ended September 30, 2020 - $121.8 million and $269.3 million, respectively). Income tax expense included additional tax expenses of $49.8 million in respect of the settlement of tax amounts relating to prior taxation years.

The Company operates in numerous countries around the world and accordingly is subject to, and pays taxes under the various regimes in countries in which it operates. These tax regimes are determined under general corporate tax laws of the country. The Company has historically filed, and continues to file, all required tax returns and to pay the taxes reasonably determined to be due. The tax rules and regulations in many countries are complex and subject to interpretation. Changes in tax law or changes in the way that tax law is interpreted may also impact the Company’s effective tax rate as well as its business and operations.

Kinross’ tax records, transactions and filing positions may be subject to examination by the tax authorities in the countries in which the Company has operations. The tax authorities may review the Company’s transactions in respect of the year, or multiple years, which they have chosen for examination. The tax authorities may interpret the tax implications of a transaction, in form or in fact, differently from the interpretation reached by the Company. In circumstances where the Company and the tax authority cannot reach a consensus on the tax impact, there are processes and procedures which both parties may undertake in order to reach a resolution, which may span many years in the future. Uncertainty in the interpretation and application of applicable tax laws, regulations or the relevant sections of Mining Conventions by the tax authorities, or the failure of relevant Governments or tax authorities to honour tax laws, regulations or the relevant sections of Mining Conventions could adversely affect Kinross.

KINROSS GOLD CORPORATION

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine months ended September 30, 2021 and 2020

(Unaudited, tabular amounts in millions of United States dollars, unless otherwise noted)

14.	SEGMENTED INFORMATION

Operating segments

The following tables set forth operating results by reportable segment for the following periods:

	Operating segments																	Non-operating segments ^(a)
Three months ended September 30, 2021:	Fort Knox		Round Mountain		Bald Mountain			Paracatu		Kupol		Tasiast			Chirano			Corporate and other^(b),(c)			Total
Revenue
Metal sales	$	128.2		109.7		94.9			239.8		217.7		8.7			62.4			1.1		$	862.5
Cost of sales
Production cost of sales		67.7		60.8		48.8			103.7		81.8		8.3			49.4			0.5			421.0
Depreciation, depletion and amortization		29.7		16.3		59.4			44.5		18.3		21.3			17.0			2.3			208.8
Total cost of sales		97.4		77.1		108.2			148.2		100.1		29.6			66.4			2.8			629.8
Gross profit (loss)	$	30.8		32.6		(13.3	)		91.6		117.6		(20.9	)		(4.0	)		(1.7	)	$	232.7
Other operating expense		-		16.2		0.3			2.0		1.3		48.7			0.5			25.0			94.0
Exploration and business development		1.4		2.3		2.6			0.2		5.2		1.0			3.5			20.4			36.6
General and administrative		-		-		-			-		-		-			-			29.2			29.2
Operating earnings (loss)	$	29.4		14.1		(16.2	)		89.4		111.1		(70.6	)		(8.0	)		(76.3	)	$	72.9
Other income (expense) - net																						3.6
Finance income																						1.7
Finance expense																						(19.4	)
Earnings before tax																					$	58.8

	Operating segments														Non-operating segments^(a)
Three months ended September 30, 2020:	Fort Knox		Round Mountain		Bald Mountain		Paracatu		Kupol		Tasiast		Chirano		Corporate and other^(b),(c)			Total
Revenue
Metal sales	$	138.3		138.8		72.5		245.3		241.4		197.6		89.1		8.3		$	1,131.3
Cost of sales
Production cost of sales		69.5		49.7		32.1		96.6		69.2		65.2		56.1		1.0			439.4
Depreciation, depletion and amortization		27.9		11.6		27.1		42.4		27.0		50.2		16.1		2.5			204.8
Reversal of impairment charge		-		-		-		-		-		-		-		-			-
Total cost of sales		97.4		61.3		59.2		139.0		96.2		115.4		72.2		3.5			644.2
Gross profit	$	40.9		77.5		13.3		106.3		145.2		82.2		16.9		4.8		$	487.1
Other operating expense		0.9		0.4		1.4		2.0		9.5		16.4		0.2		12.8			43.6
Exploration and business development		1.5		3.0		2.4		-		0.7		0.4		2.4		14.4			24.8
General and administrative		-		-		-		-		-		-		-		25.3			25.3
Operating earnings (loss)	$	38.5		74.1		9.5		104.3		135.0		65.4		14.3		(47.7	)	$	393.4
Other income (expense) - net																			(3.4	)
Finance income																			0.8
Finance expense																			(27.4	)
Earnings before tax																		$	363.4

	Operating segments																	Non-operating segments^(a)
Nine months ended September 30, 2021:	Fort Knox		Round Mountain		Bald Mountain			Paracatu		Kupol		Tasiast			Chirano			Corporate and other^(b),(c)			Total
Revenue
Metal sales	$	339.7		372.1		255.7			725.6		655.0		288.1			210.2			3.5		$	2,849.9
Cost of sales
Production cost of sales		193.1		184.1		127.4			295.2		231.0		112.8			155.9			1.4			1,300.9
Depreciation, depletion and amortization		78.9		50.7		138.7			132.9		53.4		123.8			57.2			6.0			641.6
Total cost of sales		272.0		234.8		266.1			428.1		284.4		236.6			213.1			7.4			1,942.5
Gross profit (loss)	$	67.7		137.3		(10.4	)		297.5		370.6		51.5			(2.9	)		(3.9	)	$	907.4
Other operating expense		0.5		43.2		1.5			7.7		23.1		75.4			2.5			53.8			207.7
Exploration and business development		1.9		3.7		5.9			0.6		11.4		2.1			9.4			61.0			96.0
General and administrative		-		-		-			-		-		-			-			94.6			94.6
Operating earnings (loss)	$	65.3		90.4		(17.8	)		289.2		336.1		(26.0	)		(14.8	)		(213.3	)	$	509.1
Other income (expense) - net																						(9.0	)
Finance income																						5.2
Finance expense																						(58.7	)
Earnings before tax																					$	446.6

	Operating segments														Non-operating segments^(a)
Nine months ended September 30, 2020:	Fort Knox		Round Mountain		Bald Mountain		Paracatu		Kupol		Tasiast		Chirano		Corporate and other^(b),(c)			Total
Revenue
Metal sales	$	315.6		396.4		224.1		677.9		657.8		514.9		219.2		12.4		$	3,018.3
Cost of sales
Production cost of sales		200.2		157.4		110.5		267.7		225.4		174.9		150.5		2.6			1,289.2
Depreciation, depletion and amortization		74.0		34.4		84.0		125.3		92.5		145.3		45.1		7.7			608.3
Reversal of impairment charge		-		-		-		-		-		-		-		(48.3	)		(48.3	)
Total cost of sales		274.2		191.8		194.5		393.0		317.9		320.2		195.6		(38.0	)		1,849.2
Gross profit	$	41.4		204.6		29.6		284.9		339.9		194.7		23.6		50.4		$	1,169.1
Other operating expense		2.0		1.0		4.8		9.0		24.8		41.7		0.9		34.2			118.4
Exploration and business development		3.4		3.8		3.7		-		4.0		1.1		7.3		38.5			61.8
General and administrative		-		-		-		-		-		-		-		81.8			81.8
Operating earnings (loss)	$	36.0		199.8		21.1		275.9		311.1		151.9		15.4		(104.1	)	$	907.1
Other income (expense) - net																			5.2
Finance income																			3.8
Finance expense																			(85.9	)
Earnings before tax																		$	830.2

KINROSS GOLD CORPORATION

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine months ended September 30, 2021 and 2020

(Unaudited, tabular amounts in millions of United States dollars, unless otherwise noted)

	Operating segments														Non-operating segments^(a)
	Fort Knox		Round Mountain		Bald Mountain		Paracatu		Kupol		Tasiast		Chirano		Corporate and other^(b)		Total
Property, plant and equipment at:
September 30, 2021	$	443.7		802.6		478.4		1,660.5		250.3		2,379.5		315.5		1,289.9	$	7,620.4

Total assets at:
September 30, 2021	$	743.0		1,044.6		767.7		1,937.1		906.3		2,771.4		417.0		1,824.1	$	10,411.2

Capital expenditures for three months ended September 30, 2021^(d)	$	41.3		26.8		7.8		29.1		5.5		86.5		10.5		52.0	$	259.5

Capital expenditures for nine months ended September 30, 2021^(d)	$	94.2		86.4		22.9		79.4		17.8		268.2		39.9		136.6	$	745.4

	Operating segments														Non-operating segments^(a)
	Fort Knox		Round Mountain		Bald Mountain		Paracatu		Kupol		Tasiast		Chirano		Corporate and other^(b)		Total
Property, plant and equipment at:
December 31, 2020	$	488.7		774.6		635.7		1,718.8		271.2		2,277.3		332.7		1,154.5	$	7,653.5

Total assets at:
December 31, 2020	$	719.7		1,028.0		857.1		2,226.3		896.9		2,699.8		429.8		2,075.6	$	10,933.2

Capital expenditures for three months ended September 30, 2020^(d)	$	43.0		43.6		28.8		28.9		6.1		62.5		6.6		22.2	$	241.7

Capital expenditures for nine months ended September 30, 2020^(d)	$	100.8		134.3		105.9		95.3		17.8		215.0		18.4		40.3	$	727.8

(a)	Non-operating segments include development and pre-development properties.

(b)	Corporate and other includes corporate, shutdown and other non-operating assets (including Chulbatkan, Kettle River-Buckhorn, La Coipa, Lobo-Marte, Manh Choh, and Maricunga).

(c)

Corporate and other includes metal sales and operating earnings (loss) of Maricunga of $1.1 million and $(2.4) million, and $3.5 million and $(8.2) million, respectively, for the three and nine months ended September 30, 2021 ($8.3 million and $2.7 million, and $12.4 million and $(3.3) million, respectively, for the three and nine months ended September 30, 2020) as Maricunga continues to sell its remaining finished metals inventories after transitioning all processing activities to care and maintenance in 2019.

(d)	Segment capital expenditures are presented on an accrual basis and include capitalized interest. Additions to property, plant and equipment in the interim condensed consolidated statements of cash flows are presented on a cash basis.

15.	COMMITMENTS AND CONTINGENCIES

i.	Commitments

Leases

The Company has a number of lease agreements involving office space, buildings, vehicles and equipment. Many of the leases for equipment provide that the Company may, after the initial lease term, renew the lease for successive yearly periods or may purchase the equipment at its fair market value. Leases for certain office facilities contain escalation clauses for increases in operating costs and property taxes. A majority of these leases are cancelable and are renewable on a yearly basis. Total lease liabilities of $62.8 million were recorded as at September 30, 2021.

Purchase commitments

At September 30, 2021, the Company had future commitments of approximately $203.3 million for capital expenditures, which have not been accrued.

ii.	Contingencies

General

Estimated losses from contingencies are accrued by a charge to earnings when information available prior to the issuance of the financial statements indicates that it is likely that a future event will confirm that an asset has been impaired or a liability incurred at the date of the financial statements and the amount of the loss can be reasonably estimated.

Other legal matters

KINROSS GOLD CORPORATION

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine months ended September 30, 2021 and 2020

(Unaudited, tabular amounts in millions of United States dollars, unless otherwise noted)

Maricunga regulatory proceedings

Sunnyside litigation

KINROSS GOLD CORPORATION

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine months ended September 30, 2021 and 2020

(Unaudited, tabular amounts in millions of United States dollars, unless otherwise noted)

In the first quarter of 2021, the Court granted SGC’s motion for summary judgment against the individual Navajo members based on a statute of repose defense. In April 2021, the Court granted Kinross Gold Corporation and Kinross Gold U.S.A., Inc.’s motion for summary judgment against the individual Navajo members based on personal jurisdiction grounds and, subsequently, in July 2021 denied a motion to certify this order for interlocutory appeal. In May 2021, the Court partially granted Kinross Gold Corporation’s motion for summary judgment based on a lack of specific jurisdiction as to the United States’ cross-claims, but granted the United States the right to file a motion asserting personal jurisdiction under alternative grounds. On October 4, 2021, the Court denied the United States’ motion for summary judgment on this alternative ground for personal jurisdiction over Kinross Gold Corporation.


SIGNATURES
EXHIBIT INDEX
99.1		Third Quarter Unaudited Interim Condensed Consolidated Financial Statements and Management’s Discussion and Analysis for the period ended September 30, 2021
99.2		CEO Certification of interim filings for the period ended September 30, 2021
99.3		CFO Certification of interim filings for the period ended September 30, 2021


		KINROSS GOLD CORPORATION
		Signed:	/s/ Kar Ng
			Vice-President, Finance
			November 10, 2021