Kinross Gold Corp 6-K, filed Feb 17, 2022
Kinross Gold Corp (KGC)
About this 6-K
Kinross Gold Corp filed this 6-K on February 17, 2022.
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of February, 2022
Commission File Number: 001-13382
KINROSS GOLD CORPORATION
(Translation of registrant's name into English)
17th Floor, 25 York Street,
Toronto, Ontario M5J 2V5
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40F:
Form 20-F ¨ Form 40-F x
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ¨ No x
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2b:
Page 2
This Current Report on Form 6-K, dated Feb 16, 2022 is specifically incorporated by reference into Kinross Gold Corporation's Registration Statements on Form S-8 [Registration No. 333-217099, filed on April 3, 2017 and Registration Nos. 333-180824, 333-180823 and 333-180822, filed on April 19, 2012.]
This report on Form 6-K is being furnished for the sole purpose of providing copies of the four press releases dated February 16, 2022 in which Kinross Gold Corporation reported results for the fourth quarter and full-year ended December 31, 2021, provided an update on development projects and 2021 full-year exploration results, declared a dividend and announced details of its climate change strategy.
INDEX
Table of Contents
SIGNATURES
EXHIBIT INDEX
Page 3
SIGNATURES
Pursuant to the requirements of Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| KINROSS GOLD CORPORATION | ||
| Signed: | //Lucas Crosby// | |
| Vice President, Assistant General Counsel and Corporate Secretary | ||
February 16, 2022
Exhibit 99.1
 | Kinross
Gold Corporation 25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
For more information,
please see Kinross’ 2021 Q4/year-end
Financial Statements and MD&A
at www.kinross.com
NEWS RELEASE
Kinross reports 2021 fourth-quarter and full-year results
Returned more than $250 million to shareholders in 2021
Production outlook of 2.65 million, 2.8 million and 2.6 million ounces in 2022, 2023 and 2024, respectively, to drive free cash flow growth
Toronto, Ontario – February 16, 2022 – Kinross Gold Corporation (TSX: K, NYSE: KGC) (“Kinross” or the “Company”) today announced its results for the fourth-quarter and year ended December 31, 2021.
(This news release contains forward-looking information about expected future events and financial and operating performance of the Company. We refer to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located on page 24 of this release. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.)
2021 full-year results and 2022 guidance:
2021 guidance (+/- 5%) |
2021 full-year results | 2022 guidance (+/- 5%) | |
Attributable gold equivalent production1 (ounces) |
2.1 million | 2.07 million | 2.65 million |
Attributable production cost of sales1, 2 ($ per Au eq. oz.) |
$830 | $828 | $830 |
Consolidated production cost of sales3 ($ per Au eq. oz.) |
- | $832 | $835 |
Attributable all-in sustaining cost1, 2 ($ per Au eq. oz.) |
$1,110 | $1,138 | $1,130 |
| Capital expenditures | $900 million | $939 million | $1,050 million |
| · | Attributable production1 is expected to increase 28% year-over-year to 2.65 million Au eq. oz. in 2022, and to further increase to 2.8 million Au eq. oz. in 2023 driving significant free cash flow2 growth. |
| · | Kinross expects to produce 2.6 million attributable Au eq. oz. in 2024 and an average of at least 2.5 million attributable Au eq. oz. per year over the remainder of the decade. |
2021 Q4 highlights:
| · | Tasiast achieved Q4 2021 production target as throughput successfully ramped up to complete mill re-start. |
| · | La Coipa project began commissioning on time and on budget in February 2022. Life of mine production estimates increased by 45% to 1 million Au eq. oz. extending mine life to early 2026. |
| · | Kinross increased proven and probable mineral reserve estimates to 32.6 million Au oz.4, adding 2.7 million Au oz. in 2021, mainly due to additions at Udinsk and Round Mountain. |
| · | In 2021, Kinross returned more than $250 million in capital to shareholders consisting of $151.1 million in dividends and, as part of its share buyback program, $100.2 million in the repurchase and cancellation of 17.6 million common shares. |
1 ”Attributable” includes Kinross’ 90% share of Chirano production and costs, and 70% of Manh Choh costs.
2 These figures are non-GAAP financial measures and ratios and are defined and reconciled on pages 19 to 24 of this news release. Non-GAAP financial measures and ratios have no standardized meaning under IFRS and therefore, may not be comparable to similar measures presented by other issuers.
3 “Consolidated production cost of sales per equivalent ounce sold” is defined as production cost of sales, as reported on the consolidated statements of operations, divided by total gold equivalent ounces sold.
4 See Kinross’ Annual Mineral Reserve and Mineral Resource Statement, estimated as at December 31, 2021, at www.kinross.com for more information.
| p. 1 Kinross reports 2021 fourth-quarter results | www.kinross.com |
| Kinross
Gold Corporation 25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
| · | Kinross’ Board of Directors declared a quarterly dividend of $0.03 per common share payable on March 24, 2022 to shareholders of record at the close of business on March 9, 2022. |
| · | On December 8, 2021, Kinross announced an agreement to acquire Great Bear Resources and its flagship Dixie project in Red Lake, Ontario, which has significant potential to become a top-tier, large scale operation. |
2021 Q4 and year-end financial results:
| · | Attributable production1 of 487,621 Au eq. oz. produced in Q4 2021, and 2,067,549 Au eq. oz. in 2021. |
| · | Attributable production cost of sales1,2 of $864 per Au eq. oz. in Q4 2021, and $828 per Au eq. oz. in 2021. |
| · | Consolidated production cost of sales3 of $868 per Au eq. oz. in Q4 2021 and $832 per Au eq. oz. in 2021. |
| · | Attributable all-in sustaining cost1, 2 of $1,312 per Au eq. oz. sold in Q4 2021, and $1,138 per Au eq. oz. sold in 2021. |
| · | Margins5 of $929 per Au eq. oz. sold in Q4 2021, and $965 for 2021. |
| · | Adjusted operating cash flow2 was $356.0 million in Q4 2021, and $1,309.9 million in 2021. |
| · | Operating cash flow6 of $197.3 million in Q4 2021, and $1,135.2 million in 2021. |
| · | Free cash flow2 was a net outflow of $100.7 million in Q4 2021, and a net inflow of $196.6 million in 2021. |
| · | Reported net loss7 of $2.7 million in Q4 2021, and reported net earnings of $221.2 million, or $0.18 per share, in 2021. |
| · | Adjusted net earnings2, 8 of $101.8 million, or $0.08 per share in Q4 2021, and $541.3 million, or $0.43 per share, in 2021. |
| · | Cash and cash equivalents of $531.5 million, and total liquidity9 of $1.9 billion at December 31, 2021. The Company repaid $500 million in Senior Notes on June 1, 2021. |
Environment, Social, Governance (ESG):
| · | Kinross’ ESG performance continued to rank in the top quartile of its peer group, as measured by Sustainalytics, MSCI, ISS, Vigeo, Refinitiv and S&P Global CSA’s ESG ratings. |
| · | The Company outlined its Climate Change Strategy, with the target of reducing the intensity of its scope 1 and scope 2 emissions by 30% by 2030. |
| · | Injury frequency rates remained in line with Kinross’ three-year averages, however, this was overshadowed by a tragic fatality at Chirano and a mill fire at Tasiast. |
| · | Kinross continued to work to mitigate the risks associated with the ongoing COVID-19 pandemic, and provided support to bolster vaccination rates of its workforce. |
| · | The Company established an ESG Executive Committee to help further strengthen ESG governance. |
CEO Commentary:
J. Paul Rollinson, President and CEO, made the following comments in relation to 2021 fourth-quarter and year-end results:
“Despite some challenges during 2021, we produced approximately 2.1 million ounces. We expect to increase our production in 2022 and 2023 to 2.65 million and 2.8 million ounces, respectively, to drive robust free cash flow. Our long-term production profile remains strong, with expected production of 2.6 million ounces in 2024 and an annual average production estimate of at least 2.5 million ounces over the remainder of the decade.
“We are pleased to report that the Tasiast mill is now operating at sustained throughput levels comparable to the first half of 2021. Our development projects are also advancing well and we have started commissioning at La Coipa, where we have increased life of mine production estimates to approximately 1 million ounces and extended estimated mine life to early 2026. Kinross also successfully added to its mineral reserve estimates, which increased by 2.7 million ounces to 32.6 million gold equivalent ounces at year-end 2021.
5 “Margin” per equivalent ounce
sold is defined as average realized gold price per ounce less consolidated production cost of sales per gold equivalent ounce sold.
6 Operating cash flow figures in this release represent “Net cash flow provided from operating activities,” as reported on
the consolidated statements of cash flows.
7 Net earnings (loss) figures in this release represent “net earnings (loss) attributable to common shareholders,” as reported
on the consolidated statements of operations.
8 Adjusted net earnings figures in this news release represent “Adjusted net earnings attributable to common shareholders.”
9 “Total liquidity” is defined as the sum of cash and cash equivalents, as reported on the consolidated balance sheets, and
total available credit under our credit facilities (as calculated in Section 6 Liquidity and Capital Resources of the MD&A).
| p. 2 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
| Kinross
Gold Corporation 25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
“In addition, we enhanced our return of capital to shareholders by returning more than $250 million through our quarterly dividend and share buyback programs. We also finalized our agreement with the Government of Mauritania to underpin our strong partnership and announced an agreement to acquire Great Bear Resources to further strengthen our long-term growth pipeline.
“Safety and sustainability continue to be priorities, and we again ranked in the top quartile of our peer group as measured by a number of ESG ranking agencies in 2021. We also outlined a Climate Change Strategy, with the objective of a 30% reduction in intensity of scope 1 and scope 2 emissions by 2030.”
Financial results
Summary of financial and operating results
| Three months ended | Years ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| (in millions of U.S. dollars, except ounces, per share amounts, and per ounce amounts) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Operating Highlights | ||||||||||||||||
| Total gold equivalent ounces(a) | ||||||||||||||||
| Produced(c) | 491,077 | 627,944 | 2,083,016 | 2,383,307 | ||||||||||||
| Sold(c) | 489,710 | 637,169 | 2,075,738 | 2,375,548 | ||||||||||||
| Attributable gold equivalent ounces(a) | ||||||||||||||||
| Produced(c) | 487,621 | 624,032 | 2,067,549 | 2,366,648 | ||||||||||||
| Sold(c) | 486,547 | 633,149 | 2,060,909 | 2,358,927 | ||||||||||||
| Financial Highlights | ||||||||||||||||
| Metal sales | $ | 879.5 | $ | 1,195.1 | $ | 3,729.4 | $ | 4,213.4 | ||||||||
| Production cost of sales | $ | 425.2 | $ | 436.5 | $ | 1,726.1 | $ | 1,725.7 | ||||||||
| Depreciation, depletion and amortization | $ | 199.3 | $ | 234.0 | $ | 840.9 | $ | 842.3 | ||||||||
| Impairment charges (reversals) and asset derecognition - net | $ | 144.5 | $ | (602.6 | ) | $ | 144.5 | $ | (650.9 | ) | ||||||
| Operating (loss) earnings | $ | (45.5 | ) | $ | 992.3 | $ | 463.6 | $ | 1,899.4 | |||||||
| Net (loss) earnings attributable to common shareholders | $ | (2.7 | ) | $ | 783.3 | $ | 221.2 | $ | 1,342.4 | |||||||
| Basic (loss) earnings per share attributable to common shareholders | $ | - | $ | 0.62 | $ | 0.18 | $ | 1.07 | ||||||||
| Diluted (loss) earnings per share attributable to common shareholders | $ | - | $ | 0.62 | $ | 0.17 | $ | 1.06 | ||||||||
| Adjusted net earnings attributable to common shareholders(b) | $ | 101.8 | $ | 335.1 | $ | 541.3 | $ | 966.8 | ||||||||
| Adjusted net earnings per share(b) | $ | 0.08 | $ | 0.27 | $ | 0.43 | $ | 0.77 | ||||||||
| Net cash flow provided from operating activities | $ | 197.3 | $ | 681.1 | $ | 1,135.2 | $ | 1,957.6 | ||||||||
| Adjusted operating cash flow(b) | $ | 356.0 | $ | 527.6 | $ | 1,309.9 | $ | 1,912.7 | ||||||||
| Capital expenditures(d) | $ | 298.0 | $ | 298.3 | $ | 938.6 | $ | 916.1 | ||||||||
| Free cash flow(b) | $ | (100.7 | ) | $ | 382.8 | $ | 196.6 | $ | 1,041.5 | |||||||
| Average realized gold price per ounce(e) | $ | 1,797 | $ | 1,875 | $ | 1,797 | $ | 1,774 | ||||||||
| Consolidated production cost of sales per equivalent ounce(c) sold(f) | $ | 868 | $ | 685 | $ | 832 | $ | 726 | ||||||||
| Attributable(a) production cost of sales per equivalent ounce(c) sold(b) | $ | 864 | $ | 682 | $ | 828 | $ | 723 | ||||||||
| Attributable(a) production cost of sales per ounce sold on a by-product basis(b) | $ | 839 | $ | 653 | $ | 799 | $ | 700 | ||||||||
| Attributable(a) all-in sustaining cost per ounce sold on a by-product basis(b) | $ | 1,299 | $ | 991 | $ | 1,118 | $ | 970 | ||||||||
| Attributable(a) all-in sustaining cost per equivalent ounce(c) sold(b) | $ | 1,312 | $ | 1,013 | $ | 1,138 | $ | 987 | ||||||||
| Attributable(a) all-in cost per ounce sold on a by-product basis(b) | $ | 1,681 | $ | 1,309 | $ | 1,458 | $ | 1,248 | ||||||||
| Attributable(a) all-in cost per equivalent ounce(c) sold(b) | $ | 1,684 | $ | 1,322 | $ | 1,467 | $ | 1,260 | ||||||||
| (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 and ratios is included on pages 19 to 24 of this news release. |
| (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 2021 was 71.51:1 (2020 - 86.32:1). The ratio for Q4 2021 was 76.89:1 (Q4 2020 – 77.02:1). |
| (d) | “Capital expenditures” is as reported as “Additions to property, plant and equipment” on the consolidated statements of cash flows. |
| (e) | “Average realized gold price per ounce” is defined as gold metal sales divided by the total number of gold ounces sold. |
| (f) | “Consolidated production cost of sales per equivalent ounce sold” is defined as production cost of sales divided by total gold equivalent ounces sold. |
The following operating and financial results are based on fourth-quarter and year-end 2021 gold equivalent production:
| p. 3 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
| Kinross
Gold Corporation 25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
Attributable production1: Kinross produced 487,621 attributable Au eq. oz. in Q4 2021, compared with 624,032 attributable Au eq. oz. in Q4 2020. The decrease was largely due to lower production at Tasiast and Round Mountain.
Over the full year, Kinross produced 2,067,549 attributable Au eq. oz., in line with the Company’s revised production guidance, compared with full-year 2020 production of 2,366,648 attributable Au eq. oz. The decrease was mainly due to the temporary suspension of milling operations at Tasiast as a result of a mill fire in June 2021 and deferred mining activities at Round Mountain after wall instability was detected in Q1 2021. The decrease was slightly offset by increases in production at Fort Knox and at Bald Mountain.
Average realized gold price: The average realized gold price in Q4 2021 was $1,797 per ounce, compared with $1,875 per ounce in Q4 2020. For full-year 2021, the average realized gold price per ounce was $1,797, compared with $1,774 per ounce for full-year 2020.
Revenue: During the fourth quarter, revenue was $879.5 million, compared with $1,195.1 million during Q4 2020. Revenue was $3,729.4 million for full-year 2021, compared with $4,213.4 million for full-year 2020.
Attributable production cost of sales1, 2: Attributable production cost of sales per Au eq. oz. sold was $864 for Q4 2021, compared with $682 in Q4 2020, mainly as a result of higher costs at Paracatu, and higher costs and an increase in sales at Fort Knox. Attributable production cost of sales per Au eq. oz. sold was $828 for full-year 2021, in line with the Company’s revised guidance, compared with $723 per Au eq. oz. for full-year 2020. The increase was mainly due to higher costs at Paracatu and Round Mountain, and an increase in sales at Fort Knox.
Attributable production cost of sales per Au oz. sold on a by-product basis was $839 in Q4 2021 compared with $653 in Q4 2020, based on gold sales of 473,306 ounces and silver sales of 1,018,034 ounces. Attributable production cost of sales per Au eq. oz. sold on a by-product basis was $799 for full-year 2021, compared with $700 for full-year 2020, based on 2021 gold sales of 2,000,262 ounces and silver sales of 4,341,895 ounces.
Consolidated production cost of sales: Consolidated production cost of sales per Au eq. oz. sold was $868 for Q4 2021, compared with $685 in Q4 2020, and was $832 for full-year 2021 versus $726 in 2020.
Margins5: Kinross’ margin per Au eq. oz. sold was $929 for Q4 2021, compared with the Q4 2020 margin of $1,190. Full-year 2021 margin per Au eq. oz. sold was $965, compared with $1,048 for full-year 2020.
Attributable all-in sustaining cost1, 2: Attributable all-in sustaining cost per Au eq. oz. sold was $1,312 in Q4 2021, compared with $1,013 in Q4 2020. Full-year attributable all-in sustaining cost per Au eq. oz. sold was $1,138, and was within the Company’s 2021 revised guidance range, compared with $987 for full-year 2020.
In Q4 2021, attributable all-in sustaining cost per Au oz. sold on a by-product basis was $1,299, compared with $991 in Q4 2020. Attributable all-in sustaining cost per Au oz. sold on a by-product basis was $1,118 for full-year 2021, compared with $970 in 2020.
Operating cash flow: Adjusted operating cash flow2 for Q4 2021 was $356.0 million, compared with $527.6 million for Q4 2020. Adjusted operating cash flow2 for full-year 2021 was $1,309.9 million, compared with $1,912.7 million in 2020.
Operating cash flow was $197.3 million for Q4 2021, compared with $681.1 million for Q4 2020. Operating cash flow for full-year 2021 was $1,135.2 million, compared with $1,957.6 million for full-year 2020 mainly due to the decrease in operating earnings, higher taxes paid and unfavourable working capital movements.
Free cash flow2: Free cash flow was a net cash outflow of $100.7 million in Q4 2021, compared with a net cash inflow of $382.8 million for Q4 2020. For the full year, free cash flow was $196.6 million, compared with $1,041.5 million the previous year. The decrease in both periods were mainly due to lower margins, higher taxes paid and unfavourable working capital movements.
Earnings: Adjusted net earnings2 were $101.8 million, or $0.08 per share, for Q4 2021, compared with $335.1 million, or $0.27 per share, for Q4 2020. Full-year adjusted net earnings2 were $541.3 million, or $0.43 per share, compared with $966.8 million, or $0.77 per share, for full-year 2020, primarily due to the decrease in revenue and an increase in exploration expenses.
| p. 4 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
| Kinross
Gold Corporation 25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
Reported net loss8 was $2.7 million for Q4 2021, compared with reported net earnings of $783.3 million, or $0.62 per share, for Q4 2020. Reported net earnings in full-year 2021 were $221.2 million, or $0.18 per share, compared with $1,342.4 million, or $1.07 per share, in 2020. The decrease in reported net earnings for both periods was mainly as a result of the temporary suspension of milling operations at Tasiast and the deferred mining activity at Round Mountain. A non-cash, after-tax write-down of $106.1 million at Bald Mountain related to a reduced estimate of recoverable ounces from the Vantage heap leach pad in the South area of the mine also contributed to the decrease in net earnings.
Capital expenditures: Capital expenditures were $298.0 million for Q4 2021, in line with $298.3 million for Q4 2020. Capital expenditures for full-year 2021 were $938.6 million and were within the Company’s annual guidance range, compared with $916.1 in 2020. The increase was primarily due to higher expenditures for development activities at La Coipa, the studies at Lobo-Marte and Udinsk, and an increase in capital stripping at Tasiast, partially offset by reduced capital stripping at Bald Mountain, Round Mountain and Fort Knox.
Balance sheet
As of December 31, 2021, Kinross had cash and cash equivalents of $531.5 million, compared with $1,210.9 million at December 31, 2020. The decrease was primarily due to capital expenditures, the $500.0 million repayment of senior notes, the final installment of $141.5 million paid for the Chulbatkan license, and the return of capital of $251.3 million in the form of dividends and share buybacks, partially offset by operating cash flows.
The Company had additional available credit10 of $1,361.2 million as of December 31, 2021 and total liquidity9 of approximately $1.9 billion.
Share buyback and dividend
In 2021, Kinross enhanced shareholder returns through its share buyback and quarterly dividend programs, which are underpinned by the Company’s investment grade balance sheet, free cash flow profile and expected production growth. During the past year, Kinross returned a total of $251.3 million in capital to shareholders.
Kinross has repurchased and cancelled 17.6 million of its common shares for $100.2 million as of December 31, 2021 through its share buyback program.
The Company declared a dividend of $0.03 per common share payable on March 24, 2022 to shareholders of record as of March 9, 2022, as part of its quarterly dividend program. In 2021, Kinross returned a total of $151.1 million in dividends.
Operating results
Mine-by-mine summaries for 2021 fourth-quarter and full-year operating results may be found on pages 14 and 18 of this news release. Highlights include the following:
Americas
Paracatu production for the full year increased compared with full-year 2020 largely due to higher throughput and the timing of ounces processed through the mill, which was largely offset by a decrease in grades. Full-year production cost of sales per ounce sold was higher year-over-year mainly due to increases in operating waste mined, contractor and energy costs, as well as inflationary pressures on consumables, partially offset by favourable foreign exchange movements. In Q4 2021, higher mill throughput contributed to the increase in production compared with the previous quarter, while higher operating waste mined and maintenance costs contributed to the increase in cost of sales per ounce sold.
10 “Available credit” is defined as available credit under the Company’s credit facilities and is calculated in Section 6 Liquidity and Capital Resources of the MD&A.
| p. 5 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
| Kinross
Gold Corporation 25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
Fort Knox performed well in 2021, as full-year production increased, and cost of sales per ounce sold decreased, compared with full-year 2020. Fort Knox’s positive results were largely as a result of lower-cost ounces recovered from the new Barnes Creek heap leach pad after construction was completed at the Gilmore project in early 2021. Production in Q4 2021 improved quarter-over-quarter, mainly due to timing of ounces processed at the mill, largely offset by fewer ounces recovered from the heap leach pads. Cost of sales per ounce sold was higher quarter-over-quarter primarily as a result of increases in operating waste mined and energy costs. Fort Knox also achieved first production at the Gil satellite deposits during Q4 2021.
At Round Mountain, full-year production was lower year-over-year as a result of deferred mining activities in the north wall of the Phase W area after wall instability was detected in Q1 2021. Production decreased quarter-over-quarter primarily due to fewer ounces recovered from the heap leach pads. Full-year cost of sales per ounce sold increased year-over-year mainly due to lower production, higher operating waste mined, and higher taxes related to production. Cost of sales per ounce sold was largely in line quarter-over-quarter.
The Company implemented initiatives to stabilize the wall in 2021, including dewatering and moving waste material from the pit rim. As a result of the mine optimization program, which was initiated in Q1 2021, 938 Au koz. at Phase S were converted to proven and probable mineral reserves at December 31, 2021 and additional challenges were identified in the west wall of the Phase W area which may affect Round Mountain’s annual production plans post 2024. The program is evaluating further initiatives to enhance wall stability, including shallower pit wall slope angles over a more extensive area, and alternative mine plan opportunities, such as incorporating the Phase S pushback.
The alternative mine plan opportunities also include modified open pit sequencing for Phase W and Phase S and the potential for underground mining for portions of Phase W and Phase X. The Company is planning to construct a drift for underground exploration at Phase X in 2022 after positive exploration results in 2021. Given the mine optimization program’s expanded parameters, results of the analysis are now expected in the second half of 2022.
At Bald Mountain, full-year production increased compared with 2020 mainly due to timing of ounces recovered from the heap leach pads, but was less than expected due to the carbonaceous material encountered at the Vantage heap leach pad. Full-year cost of sales per ounce sold was higher year-over-year largely due to higher operating waste mined and taxes related to production. During Q4 2021, production and cost of sales per ounce sold increased versus the prior quarter mainly due to more ounces recovered from the pads in the North area and higher fuel costs, respectively.
Russia
At Kupol and Dvoinoye, full-year production was lower than full-year 2020 mainly as a result of anticipated lower grades after mining activities were completed at Dvoinoye in November 2020 and the continued processing of related stockpiles. Quarter-over-quarter, lower grades resulted in lower production, as Kupol continued to transition to mining narrower veins. Full-year cost of sales per ounce sold increased compared with 2020 largely as a result of lower production, and decreased quarter-over-quarter mainly due to lower labour costs.
West Africa
Tasiast’s full-year and quarterly production was lower, and cost of sales per ounce sold higher, versus the comparable periods in 2020 primarily due to the mill fire in June 2021. Tasiast made excellent progress re-starting the mill in the second half of the year and completed a successful recommissioning with no material mechanical issues encountered. In Q4 2021, the site achieved its production target of 15,000 Au eq. oz. after re-starting the plant processing lower grade stockpile ore. Throughput gradually ramped up during the quarter, with the mill reaching throughput of 19,000-20,000 tonnes per day in January 2022 on a sustained basis.
In January 2022, the Company reached an agreement with the Government of Mauritania (“Government”) regarding two licenses located west, east and north of the main Tasiast operation. Kinross has agreed to renew exploration activities at these licenses and has committed to spend $10 million in exploration over the next three years. As part of its commitment, the Company is budgeting $5 million for exploration in 2022 at these licenses.
| p. 6 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
| Kinross
Gold Corporation 25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
At Chirano, full-year production decreased compared with 2020 mainly due to lower grades, partially offset by higher throughput. Full-year cost of sales per ounce sold was higher mainly due to lower production and higher contractor and energy costs. Production decreased quarter-over-quarter mainly due to lower grades, and cost of sales per ounce sold increased over Q3 2021 mainly as a result of the lower production. The mine site exploration program continued to yield excellent results in 2021 and added 400 Au koz. to Chirano’s mineral resource estimates, helping extend mine life by one year to 2026, with opportunities for further mine life extensions.
Great Bear Resources acquisition update
On December 8, 2021, Kinross announced that it had entered into a definitive agreement (“Agreement”) to acquire Great Bear Resources Ltd. (“Great Bear”), which includes the flagship Dixie project located in the prolific Red Lake mining district in Ontario, Canada. The Dixie project has excellent potential to become a top tier deposit that could support a large, long-life mine complex and bolster Kinross’ long-term production outlook.
Under the terms of the Agreement, Kinross has agreed to an upfront payment of approximately $1.4 billion (C$1.8 billion), representing C$29.0011 per Great Bear common share on a fully-diluted basis. The upfront payment will be payable at the election of Great Bear shareholders in cash and Kinross common shares subject to pro-ration to a maximum cash consideration of approximately $1.1 billion (C$1.4 billion) and a maximum of approximately 80.7 million Kinross common shares. The Agreement also includes a payment of contingent consideration in the form of contingent value rights that may be exchanged for 0.1330 of a Kinross common share per Great Bear common share. The contingent consideration will be payable in connection with Kinross’ public announcement of commercial production at the Dixie project, provided that a cumulative total of at least 8.5 million gold ounces of mineral reserves and measured and indicated mineral resources are disclosed.
Upon completion of the transaction, Kinross expects to rapidly advance exploration activities at the LP Fault zone, the most significant discovery to date at Dixie. These activities include 200,000 metres of planned drilling in 2022, which is expected to largely focus on infill drilling and multiple other targets. Kinross plans to undertake a comprehensive exploration and development program at the Dixie project which aims to support Kinross’ vision of a quality, high-grade, open-pit mine and a longer-term, sizeable underground mine.
Great Bear security holders approved the Agreement on February 14, 2022, with approximately 98% of the votes cast in favour of the acquisition. The Company received final court approval on February 16, 2022, and the transaction is expected to close next week.
Company Guidance
The following section of the news release represents forward-looking information and users are cautioned that actual results may vary. We refer to the risks and assumptions contained in the Cautionary Statement on Forward-Looking Information on page 24 of this news release.
This Company Guidance section references attributable production cost of sales per equivalent ounce sold and per ounce sold on a by-product basis and attributable all-in sustaining cost per equivalent ounce sold and per ounce sold on a by-product basis, all of which are non-GAAP financial ratios. The definitions of these non-GAAP financial ratios and comparable reconciliations are included on pages 19 to 24 of this news release.
Attributable production guidance1
In 2022, Kinross expects to produce 2.65 million attributable Au eq. oz. (+/- 5%) from its operations, which is a 28% increase from the Company’s 2021 production. Kinross’ annual production is expected to further increase to 2.8 million attributable Au eq. oz. (+/- 5%) in 2023. The Company expects to produce 2.6 million attributable Au eq. oz. in 2024 and has maintained its strong production profile of estimated average production of at least 2.5 million Au eq. oz. per year over the remainder of the decade.
11 Based upon the closing price of a Kinross share on the Toronto Stock Exchange as at December 7, 2021.
| p. 7 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
| Kinross
Gold Corporation 25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
Annual attributable gold equivalent production guidance (+/- 5%) | |
| 2022 | 2.65 million oz. |
| 2023 | 2.8 million oz. |
| 2024 | 2.6 million oz. |
In 2022, attributable production is expected to be higher in the second half of the year, which is largely driven by production from La Coipa, as it is scheduled to reach full operating capacity at mid-year, as well as higher production expected at Paracatu and Tasiast.
Kinross made modest adjustments to its 2022 and 2023 production mid-point guidance estimates, with 2022 expected to be impacted by the COVID-19 Omicron variant’s effect on productivity and supply chain logistics at Tasiast, and fewer ounces expected from the Vantage heap leach pad at Bald Mountain. In 2023, the Company’s production outlook is expected to be impacted by the deferral of some production at several sites, including La Coipa, Bald Mountain, Kupol and Chirano. These deferrals are expected to extend mine life and increase total life of mine production. The Phase W deferral at Round Mountain also impacted the Company’s 2023 production outlook, while the 2024 production outlook excludes the Manh Choh project.
The expected attributable production growth in 2022 and 2023, and Kinross’ strong long-term production profile, represents additional ounces enabled by planned life of mine extensions and projects resulting from the Company’s previous capital investments, continuous improvement programs, and an exploration strategy focused on promising prospects around existing operations.
Inflation impact
The ongoing global impacts of the COVID-19 pandemic and inflation have been factored into the Company’s 2022 attributable cost of sales and capital expenditures guidance. Potential additional inflationary impacts have been excluded from the Company’s directional forecasts on 2023 attributable cost of sales and 2023-2024 capital costs.
Attributable cost of sales guidance1
Attributable production cost of sales is expected to be $830 per Au eq. oz. (+/- 5%) for 2022. Attributable production cost of sales per ounce is expected to be higher in the first half of the year and decrease during the second half of the year largely due to the anticipated increase in production.
Kinross’ attributable production cost of sales per ounce sold outlook for 2023 is expected to be lower compared with 2022, excluding impacts of inflation, mainly due to the planned growth in production.
The Company expects its attributable all-in sustaining cost to be $1,130 per equivalent ounce sold (+/- 5%) for 2022, which is largely in line with 2021 results.
2022 by-product production and cost guidance
| Accounting basis | 2022 Guidance (+/- 5%) |
2021 Actual |
| Gold equivalent basis | ||
| Attributable production (Au eq. oz.)1 | 2.65 million | 2.07 million |
| Attributable production cost of sales per Au eq. oz. 1,2 | $830 | $828 |
| Consolidated production cost of sales per Au eq. oz. | $835 | $832 |
| Attributable all-in sustaining cost per Au eq. oz. 1,2 | $1,130 | $1,138 |
| By-product basis | ||
| Gold ounces1 | 2.5 million | 2.02 million |
| Silver ounces | 11.6 million | 4.3 million |
| Attributable production cost of sales per Au oz. 1,2 | $790 | $799 |
| Attributable all-in sustaining cost per Au oz. 1,2 | $1,100 | $1,118 |
| p. 8 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
| Kinross
Gold Corporation 25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
2022 regional attributable production guidance1
| Region | 2022
production guidance (Au eq. oz.) |
Percentage of total forecast production12 |
| Americas | 1.53 million (+/- 5%) | 58% |
| West Africa (attributable) | 770,000 (+/- 10%) | 29% |
| Russia | 350,000 (+/- 5%) | 13% |
TOTAL (attributable) |
2.65 million (+/- 5%) |
100% |
2022 regional attributable cost guidance1
| Region | 2022 guidance production cost
of sales |
2021
production cost of sales (per Au eq. oz. sold) |
| Americas | $880 (+/- 5%) | $860 |
| West Africa (consolidated) | $710 (+/-10%) | $1,008 |
| West Africa (attributable) 1,2, 13 | $700 (+/- 10%) | $991 |
| Russia | $870 (+/- 5%) | $637 |
TOTAL |
$835 (+/- 5%) |
$832 |
| TOTAL (attributable) 1,2 | $830 (+/- 5%) | $828 |
Material assumptions used to forecast 2022 production cost of sales are as follows:
| · | a gold price of $1,500 per ounce; |
| · | a silver price of $20 per ounce; |
| · | an oil price of $70 per barrel; |
| · | foreign exchange rates of: |
| o | 5.0 Brazilian reais to the U.S. dollar; |
| o | 1.25 Canadian dollars to the U.S. dollar; |
| o | 70 Russian roubles to the U.S. dollar; |
| o | 750 Chilean pesos to the U.S. dollar; |
| o | 5.50 Ghanaian cedis to the U.S. dollar; |
| o | 35 Mauritanian ouguiyas to the U.S. dollar; and |
| o | 0.85 U.S. dollar to the Euro. |
12 The percentages are calculated based on the mid-point of regional 2022 forecast production.
13 Refer to page 14 for reconciliation of West Africa attributable production cost of sales per Au eq. oz. sold.
| p. 9 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
| Kinross
Gold Corporation 25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
Taking into account existing currency and oil hedges:
| · | a 10% change in foreign currency exchange rates would be expected to result in an approximate $20 impact on attributable production cost of sales per ounce14; |
| · | specific to the Russian rouble, a 10% change in this exchange rate would be expected to result in an approximate $25 impact on Russian production cost of sales per ounce; |
| · | specific to the Brazilian real, a 10% change in this exchange rate would be expected to result in an approximate $30 impact on Brazilian production cost of sales per ounce; |
| · | a $10 per barrel change in the price of oil would be expected to result in an approximate $3 impact on fuel consumption costs on attributable production cost of sales per ounce; and |
| · | a $100 change in the price of gold would be expected to result in an approximate $5 impact on attributable production cost of sales per ounce as a result of a change in royalties. |
Capital expenditures guidance
Total capital expenditures for 2022 are forecast to be approximately $1,050 million (+/- 5%) and are summarized in the table below. The capital expenditures guidance is higher than previous estimates mainly due to inflationary pressures, a pull forward of planned spending at Udinsk to de-risk the project schedule, additional stripping at La Coipa with the inclusion of Puren into the project plan, and the inclusion of approximately $50 million for ESG initiatives such as the Tasiast solar power project.
Kinross’ capital expenditures outlook for 2023 and 2024 is expected to be largely in line with 2022 at approximately $1 billion per year. The outlook is based on Kinross’ current baseline production guidance and includes projects such as Udinsk, La Coipa’s Puren deposit and scope changes in the portfolio, which were not included in the Company’s previous multi-year capital expenditure outlook. As Kinross continues to develop and optimize its portfolio, other projects may be incorporated into its capital expenditures, as well as inflation impacts, over the 2023-2024 timeframe. These projects include Manh Choh, which is not included in the 2023 and 2024 capital expenditures outlook.
Region |
Forecast 2022 sustaining capital (million) |
Forecast 2022 non-sustaining capital (million) |
Total forecast capital (+/- 5%) (million) | |||
| Americas | $430 | $235 | $665 | |||
| West Africa | $40 | $170 | $210 | |||
| Russia | $30 | $140 | $170 | |||
| Corporate | $5 | $0 | $5 | |||
| TOTAL | $505 | $545 | $1,050 |
2022 sustaining capital includes the following forecast spending estimates:
| · Mine development: | $170 million (Americas); $10 million (Russia); $5 million (West Africa) |
| · Mobile equipment: | $65 million (Americas); $10 million (Russia); $5 million (West Africa) |
| · Tailings facilities: | $65 million (Americas); $5 million (West Africa) |
| · Mill facilities: | $30 million (Americas); $10 million (West Africa); $5 million (Russia) |
| · Leach facilities: | $40 million (Americas) |
2022 non-sustaining capital includes the following forecast spending estimates:
| · | Development and growth projects and studies: | $135 million | |
| · | La Coipa Restart (including Puren): | $130 million | |
| · | Udinsk: | $120 million | |
| · | Tasiast West Branch stripping: | $65 million | |
| · | ESG projects: | $50 million | |
| · | Tasiast 24k project: | $45 million |
14 Refers to all of the currencies in the countries where the Company has mining operations, fluctuating simultaneously by 10% in the same direction, either appreciating or depreciating, taking into consideration the impact of hedging and the weighting of each currency within our consolidated cost structure.
| p. 10 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
| Kinross
Gold Corporation 25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
Other 2022 guidance
The 2022 forecast for exploration is approximately $130 million, all of which is expected to be expensed, and is a $10 million increase from last year’s forecast. The exploration program (greenfields and brownfields) will follow up on 2021’s exploration success, including focusing on the Kupol Synergy Zone of Influence (“KSP”), the 130 kilometre radius around Kupol based on an economic trucking distance to the mill, and starting an underground exploration drift at Round Mountain. The exploration forecast does not include activities planned at the Dixie project in Red Lake, Ontario, pending the expected closing of the Great Bear acquisition.
The 2022 forecast for overhead (general and administrative and business development expenses) is approximately $160 million, which is largely in line with last year’s guidance. The Company has made cost improvements over recent years, with 2022 annual overhead guidance down $45 million over the past five years.
Other operating costs expected to be incurred in 2022 are approximately $125 million (+/- 5%), which are principally due to care and maintenance, reclamation, and pandemic-related mitigation measures.
Based on an assumed gold price of $1,500 per ounce and other budget assumptions, tax expense is expected to be $50 million and taxes paid is expected to be $170 million. Adjusting the Brazilian real and Russian rouble to the respective exchange rates of 5.58 and 74.3 to the U.S. dollar in effect at December 31, 2021, tax expense would be expected to be $105 million. Tax expense is expected to increase by 24% of any profit resulting from higher gold prices. Taxes paid is expected to increase by approximately $20 million for every $100 increase in the realized gold price.
Depreciation, depletion and amortization is forecast to be approximately $400 per Au eq. oz. (+/- 5%).
Interest paid is forecast to be approximately $85 million, which includes $35 million of capitalized interest. The interest paid forecast does not include any interest payment related to the expected financing of the Great Bear acquisition.
Environment, Social and Governance
In alignment with its values and culture, Kinross continued to deliver strong ESG performance over the year, ranking in the top quartile of its peer group as measured by ESG ratings from Sustainalytics, MSCI, ISS, Vigeo, Refinitiv and S&P Global’s CSA. Kinross was recognized as one of the industry’s top 10 for ESG performance in the S&P Global Sustainability Yearbook. The Company also retained its “A” level rating by MSCI, and is on track to complete external assurance in conformance with the World Gold Council’s Responsible Gold Mining Principles.
The Company’s injury frequency rates remained low and were in line with its three-year averages, however, these results were overshadowed by a tragic fatality at its Chirano mine and a mill fire at Tasiast. While the latter did not result in injuries, these incidents prompted Safety Stand-Downs, and company-wide, cross-functional discussions about Kinross’ safety culture to share learnings and improve safety performance.
In Alaska, Kinross’ commitment to environmental stewardship was highlighted by its partnership with Trout Unlimited to support the Alaska Abandoned Mine Restoration Initiative (click here for video). The Company committed over $500,000 to support the initiative’s first project, the continued restoration of a historic mining district in which Kinross has not operated. The initiative is the first partnership of its kind in Alaska, with a major mining company and a conservation organization working alongside federal and state land-management agencies to restore the environment and mitigate the impact of historic mining. The Company met or exceeded all site level targets for permitting, water management and closure planning, and also maintained its record of zero tailings breaches for the 29th consecutive year.
| p. 11 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
| Kinross
Gold Corporation 25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
In recognition of the global importance of addressing climate change, Kinross outlined its Climate Change Strategy, and has set a target to achieve a 30% reduction in intensity of scope 1 and scope 2 emissions by 2030. Please see the following news release for more information: https://www.kinross.com/Kinross-announces-details-of-its-Climate-Change-Strategy.
In 2021, the Company published its inaugural Climate Report following the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. Kinross also continues to incorporate energy efficient projects into its portfolio and embed climate change considerations into strategic business decisions, including initiating development of a solar power plant at Tasiast, studying to build a power line to connect Udinsk to the regional grid and signing a power purchase agreement for 100% renewable power at La Coipa.
Kinross’ global teams continued efforts to mitigate the risks associated with the ongoing COVID-19 pandemic, and provided support to bolster vaccination rates of its workforce. In February 2022, Kinross donated over $1 million to support response efforts and those affected by the tragic explosion in Apiate, Ghana as the community works to recover and rebuild.
Kinross established an ESG Executive Committee that will report to Senior Leadership and to the Board of Directors on a quarterly basis to help further evolve and strengthen its ESG governance and strategy. The Company also advanced its Inclusion and Diversity (“I&D”) commitment with the establishment of a Global Inclusion and Diversity Council (“GIDC”), which is made up of Kinross’ senior leaders, including the President and CEO. The GIDC was established following a commitment made to the BlackNorth Initiative and is tasked with providing input into the Company’s I&D strategy and action plan.
For more information on Kinross’ sustainability performance, see the Company’s 2020 Sustainability Report and its ESG Analyst Centre page. The Report follows the Global Reporting Initiative (GRI) and Sustainability Accounting Board (SASB) reporting standards and fulfills Kinross’ commitment as a participant in the UN Global Compact.
| p. 12 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
| Kinross
Gold Corporation 25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
Conference call details
In connection with this news release, Kinross will hold a conference call and audio webcast on Thursday, February 17, 2022 at 8 a.m. ET to discuss the results, followed by a question-and-answer session. To access the call, please dial:
Canada & US toll-free – +1 (833) 968-2237; Passcode: 6090916
Outside of Canada & US – +1 (825) 312-2059; Passcode: 6090916
Replay (available up to 14 days after the call):
Canada & US toll-free – +1 (800) 585-8367; Passcode: 6090916
Outside of Canada & US – +1 (416) 621-4642; Passcode: 6090916
You may also access the conference call on a listen-only basis via webcast at our website www.kinross.com. The audio webcast will be archived on www.kinross.com.
This release should be read in conjunction with Kinross’ 2021 year-end Financial Statements and Management’s Discussion and Analysis report at www.kinross.com. Kinross’ 2021 year-end Financial Statements and Management’s Discussion and Analysis have been filed with Canadian securities regulators (available at www.sedar.com) and furnished with the U.S. Securities and Exchange Commission (available at www.sec.gov). Kinross shareholders may obtain a copy of the financial statements free of charge upon request to the Company.
About Kinross Gold Corporation
Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Russia, Mauritania, Chile and Ghana. Our focus is on delivering value based on the core principles of operational excellence, balance sheet strength, disciplined growth and responsible mining. Kinross maintains listings on the Toronto Stock Exchange (symbol:K) and the New York Stock Exchange (symbol:KGC).
Media Contact
Louie Diaz
Vice-President, Corporate Communications
phone: 416-369-6469
louie.diaz@kinross.com
Investor Relations Contact
Chris Lichtenheldt
Vice-President, Investor Relations
phone: 416-365-2761
chris.lichtenheldt@kinross.com
| p. 13 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
Kinross Gold Corporation
 |
25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
Review of operations
| Three months ended December 31, | Gold equivalent ounces | |||||||||||||||||||||||||||||||
| Produced | Sold | Production cost of sales ($millions) | Production cost of sales/equivalent ounce sold | |||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
| Fort Knox | 73,830 | 57,523 | 74,384 | 57,849 | $ | 74.1 | $ | 51.1 | $ | 996 | $ | 883 | ||||||||||||||||||||
| Round Mountain | 51,549 | 89,422 | 52,723 | 89,709 | 51.8 | 62.2 | 982 | 693 | ||||||||||||||||||||||||
| Bald Mountain | 61,036 | 51,487 | 53,559 | 57,087 | 50.1 | 45.4 | 935 | 795 | ||||||||||||||||||||||||
| Paracatu | 138,669 | 148,218 | 145,691 | 150,881 | 116.9 | 91.2 | 802 | 604 | ||||||||||||||||||||||||
| Maricunga | - | 414 | 821 | 2,035 | 0.6 | 1.1 | 731 | 541 | ||||||||||||||||||||||||
| Americas Total | 325,084 | 347,064 | 327,178 | 357,561 | 293.5 | 251.0 | 897 | 702 | ||||||||||||||||||||||||
| Kupol | 116,179 | 130,731 | 115,893 | 131,541 | 75.2 | 79.1 | 649 | 601 | ||||||||||||||||||||||||
| Russia Total | 116,179 | 130,731 | 115,893 | 131,541 | 75.2 | 79.1 | 649 | 601 | ||||||||||||||||||||||||
| Tasiast | 15,253 | 111,028 | 15,006 | 107,865 | 10.8 | 60.8 | 720 | 564 | ||||||||||||||||||||||||
| Chirano (100%) | 34,561 | 39,121 | 31,633 | 40,202 | 45.7 | 45.6 | 1,445 | 1,134 | ||||||||||||||||||||||||
| West Africa Total | 49,814 | 150,149 | 46,639 | 148,067 | 56.5 | 106.4 | 1,211 | 719 | ||||||||||||||||||||||||
| Less:
Chirano non-controlling interest (10%) | (3,456 | ) | (3,912 | ) | (3,163 | ) | (4,020 | ) | (4.6 | ) | (4.6 | ) | ||||||||||||||||||||
| West Africa Attributable Total | 46,358 | 146,237 | 43,476 | 144,047 | 51.9 | 101.8 | $ | 1,194 | $ | 707 | ||||||||||||||||||||||
| Attributable Total | 487,621 | 624,032 | 486,547 | 633,149 | 420.6 | 431.9 | 864 | 682 | ||||||||||||||||||||||||
| Add:
Chirano non-controlling interest (10%) | 3,456 | 3,912 | 3,163 | 4,020 | 4.6 | 4.6 | ||||||||||||||||||||||||||
| Operations Total | 491,077 | 627,944 | 489,710 | 637,169 | 425.2 | 436.5 | $ | 868 | $ | 685 | ||||||||||||||||||||||
| Years ended December 31, | Gold equivalent ounces | |||||||||||||||||||||||||||||||
| Produced | Sold | Production cost of sales ($millions) | Production cost of sales/equivalent ounce sold | |||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
| Fort Knox | 264,283 | 237,925 | 263,590 | 238,349 | $ | 267.2 | $ | 251.3 | $ | 1,014 | $ | 1,054 | ||||||||||||||||||||
| Round Mountain | 257,005 | 324,277 | 259,941 | 319,228 | 235.9 | 219.6 | 908 | 688 | ||||||||||||||||||||||||
| Bald Mountain | 204,890 | 191,282 | 196,066 | 186,549 | 177.5 | 155.9 | 905 | 836 | ||||||||||||||||||||||||
| Paracatu | 550,560 | 542,435 | 549,900 | 541,506 | 412.1 | 358.9 | 749 | 663 | ||||||||||||||||||||||||
| Maricunga | - | 3,546 | 2,787 | 8,947 | 2.0 | 3.7 | 718 | 414 | ||||||||||||||||||||||||
| Americas Total | 1,276,738 | 1,299,465 | 1,272,284 | 1,294,579 | 1,094.7 | 989.4 | 860 | 764 | ||||||||||||||||||||||||
| Kupol | 481,108 | 510,743 | 480,968 | 510,973 | 306.2 | 304.5 | 637 | 596 | ||||||||||||||||||||||||
| Russia Total | 481,108 | 510,743 | 480,968 | 510,973 | 306.2 | 304.5 | 637 | 596 | ||||||||||||||||||||||||
| Tasiast | 170,502 | 406,509 | 174,193 | 403,789 | 123.6 | 235.7 | 710 | 584 | ||||||||||||||||||||||||
| Chirano (100%) | 154,668 | 166,590 | 148,293 | 166,207 | 201.6 | 196.1 | 1,359 | 1,180 | ||||||||||||||||||||||||
| West Africa Total | 325,170 | 573,099 | 322,486 | 569,996 | 325.2 | 431.8 | 1,008 | 758 | ||||||||||||||||||||||||
| Less: Chirano non-controlling
interest (10%) | (15,467 | ) | (16,659 | ) | (14,829 | ) | (16,621 | ) | (20.2 | ) | (19.6 | ) | ||||||||||||||||||||
| West Africa Attributable Total | 309,703 | 556,440 | 307,657 | 553,375 | 305.0 | 412.2 | 991 | 745 | ||||||||||||||||||||||||
| Attributable Total | 2,067,549 | 2,366,648 | 2,060,909 | 2,358,927 | 1,705.9 | 1,706.1 | $ | 828 | $ | 723 | ||||||||||||||||||||||
| Add: Chirano non-controlling
interest (10%) | 15,467 | 16,659 | 14,829 | 16,621 | 20.2 | 19.6 | ||||||||||||||||||||||||||
| Operations Total | 2,083,016 | 2,383,307 | 2,075,738 | 2,375,548 | 1,726.1 | 1,725.7 | $ | 832 | $ | 726 | ||||||||||||||||||||||
| p. 14 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
Kinross Gold Corporation
|
25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
Consolidated balance sheets
| (expressed in millions of U.S. dollars, except share amounts) | ||||||||
| As at | ||||||||
| December 31, | December 31, | |||||||
| 2021 | 2020 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 531.5 | $ | 1,210.9 | ||||
| Restricted cash | 11.4 | 13.7 | ||||||
| Accounts receivable and other assets | 214.5 | 115.8 | ||||||
| Current income tax recoverable | 10.2 | 29.9 | ||||||
| Inventories | 1,151.3 | 1,072.9 | ||||||
| Unrealized fair value of derivative assets | 30.0 | 6.5 | ||||||
| 1,948.9 | 2,449.7 | |||||||
| Non-current assets | ||||||||
| Property, plant and equipment | 7,617.7 | 7,653.5 | ||||||
| Goodwill | 158.8 | 158.8 | ||||||
| Long-term investments | 98.2 | 113.0 | ||||||
| Investment in joint venture | 7.1 | 18.3 | ||||||
| Other long-term assets | 590.9 | 537.2 | ||||||
| Deferred tax assets | 6.5 | 2.7 | ||||||
| Total assets | $ | 10,428.1 | $ | 10,933.2 | ||||
| Liabilities | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 492.7 | $ | 479.2 | ||||
| Current income tax payable | 95.0 | 114.5 | ||||||
| Current portion of long-term debt and credit facilities | 40.0 | 499.7 | ||||||
| Current portion of provisions | 90.0 | 63.8 | ||||||
| Other current liabilities | 23.7 | 49.7 | ||||||
| Deferred payment obligation | - | 141.5 | ||||||
| 741.4 | 1,348.4 | |||||||
| Non-current liabilities | ||||||||
| Long-term debt and credit facilities | 1,589.9 | 1,424.2 | ||||||
| Provisions | 847.9 | 861.1 | ||||||
| Long-term lease liabilities | 35.1 | 46.3 | ||||||
| Other long-term liabilities | 127.4 | 102.4 | ||||||
| Deferred tax liabilities | 436.8 | 487.8 | ||||||
| Total liabilities | $ | 3,778.5 | $ | 4,270.2 | ||||
| Equity | ||||||||
| Common shareholders' equity | ||||||||
| Common share capital | $ | 4,427.7 | $ | 4,473.7 | ||||
| Contributed surplus | 10,664.4 | 10,709.0 | ||||||
| Accumulated deficit | (8,492.4 | ) | (8,562.5 | ) | ||||
| Accumulated other comprehensive income (loss) | (18.8 | ) | (23.7 | ) | ||||
| Total common shareholders' equity | 6,580.9 | 6,596.5 | ||||||
| Non-controlling interests | 68.7 | 66.5 | ||||||
| Total equity | 6,649.6 | 6,663.0 | ||||||
| Total liabilities and equity | $ | 10,428.1 | $ | 10,933.2 | ||||
| Common shares | ||||||||
| Authorized | Unlimited | Unlimited | ||||||
| Issued and outstanding | 1,244,332,772 | 1,258,320,461 | ||||||
| p. 15 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
Kinross Gold Corporation
 |
25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
Consolidated statements of operations
| (expressed in millions of U.S. dollars, except share and per share amounts) | ||||||||
| Years ended | ||||||||
| December 31, | December 31, | |||||||
| 2021 | 2020 | |||||||
| Revenue | ||||||||
| Metal sales | $ | 3,729.4 | $ | 4,213.4 | ||||
| Cost of sales | ||||||||
| Production cost of sales | 1,726.1 | 1,725.7 | ||||||
| Depreciation, depletion and amortization | 840.9 | 842.3 | ||||||
| Impairment charges (reversals) and asset derecognition - net | 144.5 | (650.9 | ) | |||||
| Total cost of sales | 2,711.5 | 1,917.1 | ||||||
| Gross profit | 1,017.9 | 2,296.3 | ||||||
| Other operating expense | 294.6 | 186.5 | ||||||
| Exploration and business development | 133.1 | 92.5 | ||||||
| General and administrative | 126.6 | 117.9 | ||||||
| Operating earnings | 463.6 | 1,899.4 | ||||||
| Other income - net | 79.2 | 7.4 | ||||||
| Finance income | 12.3 | 4.3 | ||||||
| Finance expense | (85.7 | ) | (112.6 | ) | ||||
| Earnings before tax | 469.4 | 1,798.5 | ||||||
| Income tax expense - net | (250.7 | ) | (439.8 | ) | ||||
| Net earnings | $ | 218.7 | $ | 1,358.7 | ||||
| Net (loss) earnings attributable to: | ||||||||
| Non-controlling interests | $ | (2.5 | ) | $ | 16.3 | |||
| Common shareholders | $ | 221.2 | $ | 1,342.4 | ||||
| Earnings per share attributable to common shareholders | ||||||||
| Basic | $ | 0.18 | $ | 1.07 | ||||
| Diluted | $ | 0.17 | $ | 1.06 | ||||
| Weighted average number of common shares outstanding (millions) | ||||||||
| Basic | 1,259.1 | 1,257.2 | ||||||
| Diluted | 1,269.1 | 1,268.0 | ||||||
| p. 16 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
Kinross Gold Corporation
|
25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
Consolidated statements of cash flows
| (expressed in millions of U.S. dollars) | ||||||||
| Years ended | ||||||||
| December 31, | December 31, | |||||||
| 2021 | 2020 | |||||||
| Net inflow (outflow) of cash related to the following activities: | ||||||||
| Operating: | ||||||||
| Net earnings | $ | 218.7 | $ | 1,358.7 | ||||
| Adjustments to reconcile net earnings to net cash provided from operating activities: | ||||||||
| Depreciation, depletion and amortization | 840.9 | 842.3 | ||||||
| Impairment charges (reversals) and asset derecognition - net | 144.5 | (650.9 | ) | |||||
| Share-based compensation expense | 10.8 | 13.7 | ||||||
| Finance expense | 85.7 | 112.6 | ||||||
| Deferred tax (recovery) expense | (63.7 | ) | 217.9 | |||||
| Foreign exchange losses and other | 72.9 | 11.8 | ||||||
| Reclamation expense | 0.1 | 6.6 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable and other assets | (50.0 | ) | (120.9 | ) | ||||
| Inventories | (86.7 | ) | (6.8 | ) | ||||
| Accounts payable and accrued liabilities | 265.4 | 279.0 | ||||||
| Cash flow provided from operating activities | 1,438.6 | 2,064.0 | ||||||
| Income taxes paid | (303.4 | ) | (106.4 | ) | ||||
| Net cash flow provided from operating activities | 1,135.2 | 1,957.6 | ||||||
| Investing: | ||||||||
| Additions to property, plant and equipment | (938.6 | ) | (916.1 | ) | ||||
| Interest paid capitalized to property, plant and equipment | (51.1 | ) | (47.9 | ) | ||||
| Acquisitions | (141.5 | ) | (267.0 | ) | ||||
| Net additions to long-term investments and other assets | (66.3 | ) | (5.9 | ) | ||||
| Net proceeds from the sale of property, plant and equipment | 1.3 | 8.4 | ||||||
| Decrease (increase) in restricted cash - net | 2.3 | (23.5 | ) | |||||
| Interest received and other - net | 1.3 | 2.9 | ||||||
| Net cash flow used in investing activities | (1,192.6 | ) | (1,249.1 | ) | ||||
| Financing: | ||||||||
| Proceeds from draw down of debt | 200.0 | 950.0 | ||||||
| Repayment of debt | (500.0 | ) | (850.0 | ) | ||||
| Interest paid | (46.9 | ) | (63.1 | ) | ||||
| Payment of lease liabilities | (33.8 | ) | (20.7 | ) | ||||
| Dividends paid to common shareholders | (151.1 | ) | (75.5 | ) | ||||
| Dividends paid to non-controlling interest | - | (6.0 | ) | |||||
| Repurchase and cancellation of shares | (100.2 | ) | - | |||||
| Other - net | 8.8 | (2.4 | ) | |||||
| Net cash flow used in financing activities | (623.2 | ) | (67.7 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 1.2 | (5.0 | ) | |||||
| (Decrease) increase in cash and cash equivalents | (679.4 | ) | 635.8 | |||||
| Cash and cash equivalents, beginning of period | 1,210.9 | 575.1 | ||||||
| Cash and cash equivalents, end of period | $ | 531.5 | $ | 1,210.9 | ||||
| p. 17 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
| Kinross
Gold Corporation 25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
| Operating Summary | |||||||||||||||
| Mine | Period | Ownership | Tonnes
Ore Mined (a) |
Ore
Processed (Milled) (a) |
Ore
Processed (Heap Leach) (a) |
Grade (Mill) |
Grade (Heap Leach) |
Recovery
(b)(h) |
Gold
Eq Production (e) |
Gold
Eq Sales (e) |
Production cost of sales |
Production cost of sales/oz |
Cap Ex (g) | DD&A | |
| (%) | ('000 tonnes) | ('000 tonnes) | ('000 tonnes) | (g/t) | (g/t) | (%) | (ounces) | (ounces) | ($ millions) | ($/ounce) | ($ millions) | ($ millions) | |||
| Americas | Fort Knox | Q4 2021 | 100 | 9,203 | 2,148 | 8,185 | 0.73 | 0.19 | 82% | 73,830 | 74,384 | $ 74.1 | $ 996 | $ 31.6 | $ 30.9 |
| Q3 2021 | 100 | 8,024 | 2,221 | 6,395 | 0.77 | 0.20 | 82% | 71,336 | 71,482 | $ 67.7 | $ 947 | $ 37.4 | $ 29.7 | ||
| Q2 2021 | 100 | 9,560 | 1,939 | 7,864 | 0.70 | 0.22 | 81% | 63,302 | 62,163 | $ 67.7 | $ 1,089 | $ 18.7 | $ 26.7 | ||
| Q1 2021 | 100 | 8,174 | 1,751 | 7,396 | 0.57 | 0.20 | 80% | 55,815 | 55,561 | $ 57.7 | $ 1,038 | $ 25.4 | $ 22.5 | ||
| Q4 2020 | 100 | 8,456 | 2,583 | 7,021 | 0.61 | 0.20 | 80% | 57,523 | 57,849 | $ 51.1 | $ 883 | $ 46.0 | $ 23.2 | ||
| Round Mountain | Q4 2021 | 100 | 1,755 | 1,057 | 1,529 | 0.64 | 0.33 | 75% | 51,549 | 52,723 | $ 51.8 | $ 982 | $ 50.3 | $ 14.5 | |
| Q3 2021 | 100 | 1,531 | 915 | 4,442 | 0.63 | 0.29 | 76% | 63,242 | 61,405 | $ 60.8 | $ 990 | $ 23.7 | $ 16.3 | ||
| Q2 2021 | 100 | 2,551 | 1,133 | 2,552 | 0.54 | 0.38 | 76% | 67,928 | 71,935 | $ 60.2 | $ 837 | $ 20.2 | $ 17.4 | ||
| Q1 2021 | 100 | 3,843 | 976 | 4,019 | 0.70 | 0.46 | 81% | 74,286 | 73,878 | $ 63.1 | $ 854 | $ 31.3 | $ 17.0 | ||
| Q4 2020 | 100 | 6,542 | 988 | 6,315 | 0.92 | 0.50 | 83% | 89,422 | 89,709 | $ 62.2 | $ 693 | $ 41.2 | $ 15.2 | ||
| Bald Mountain | Q4 2021 | 100 | 5,222 | - | 5,222 | - | 0.52 | nm | 61,036 | 53,559 | $ 50.1 | $ 935 | $ 17.2 | $ 57.2 | |
| Q3 2021 | 100 | 5,941 | - | 5,941 | - | 0.46 | nm | 55,559 | 52,874 | $ 48.8 | $ 923 | $ 7.7 | $ 59.4 | ||
| Q2 2021 | 100 | 5,875 | - | 5,875 | - | 0.57 | nm | 36,887 | 41,383 | $ 41.6 | $ 1,005 | $ 5.2 | $ 39.1 | ||
| Q1 2021 | 100 | 2,025 | - | 2,025 | - | 0.48 | nm | 51,408 | 48,250 | $ 37.0 | $ 767 | $ 8.9 | $ 40.2 | ||
| Q4 2020 | 100 | 6,076 | - | 6,076 | - | 0.42 | nm | 51,487 | 57,087 | $ 45.4 | $ 795 | $ 19.3 | $ 44.3 | ||
| Paracatu | Q4 2021 | 100 | 13,036 | 15,451 | - | 0.35 | - | 77% | 138,669 | 145,691 | $116.9 | $ 802 | $ 49.6 | $ 47.7 | |
| Q3 2021 | 100 | 14,107 | 15,085 | - | 0.37 | - | 76% | 134,425 | 133,924 | $103.7 | $ 774 | $ 30.0 | $ 44.5 | ||
| Q2 2021 | 100 | 12,624 | 14,138 | - | 0.37 | - | 76% | 150,919 | 143,474 | $108.7 | $ 758 | $ 27.5 | $ 50.7 | ||
| Q1 2021 | 100 | 12,612 | 15,372 | - | 0.38 | - | 75% | 126,547 | 126,811 | $ 82.8 | $ 653 | $ 20.8 | $ 37.7 | ||
| Q4 2020 | 100 | 12,611 | 12,655 | - | 0.51 | - | 77% | 148,218 | 150,881 | $ 91.2 | $ 604 | $ 61.6 | $ 58.2 | ||
| Maricunga | Q4 2021 | 100 | - | - | - | - | - | nm | - | 821 | $ 0.6 | $ 731 | $ - | $ 0.1 | |
| Q3 2021 | 100 | - | - | - | - | - | nm | - | 655 | $ 0.5 | $ 763 | $ - | $ 0.3 | ||
| Q2 2021 | 100 | - | - | - | - | - | nm | - | 580 | $ 0.4 | $ 690 | $ - | $ 0.1 | ||
| Q1 2021 | 100 | - | - | - | - | - | nm | - | 731 | $ 0.5 | $ 684 | $ - | $ 0.1 | ||
| Q4 2020 | 100 | - | - | - | - | - | nm | 414 | 2,035 | $ 1.1 | $ 541 | $ - | $ 0.1 | ||
| Russia | Kupol (c)(d)(f) | Q4 2021 | 100 | 333 | 430 | - | 7.74 | - | 95% | 116,179 | 115,893 | $ 75.2 | $ 649 | $ 8.8 | $ 17.1 |
| Q3 2021 | 100 | 316 | 425 | - | 8.29 | - | 96% | 120,822 | 121,798 | $ 81.8 | $ 672 | $ 5.4 | $ 18.3 | ||
| Q2 2021 | 100 | 319 | 424 | - | 8.43 | - | 95% | 121,855 | 121,124 | $ 74.5 | $ 615 | $ 5.5 | $ 16.9 | ||
| Q1 2021 | 100 | 312 | 418 | - | 8.71 | - | 94% | 122,252 | 122,153 | $ 74.7 | $ 612 | $ 6.8 | $ 18.2 | ||
| Q4 2020 | 100 | 293 | 432 | - | 9.24 | - | 95% | 130,731 | 131,541 | $ 79.1 | $ 601 | $ 15.1 | $ 31.0 | ||
| West Africa | Tasiast | Q4 2021 | 100 | 1,061 | 1,068 | - | 1.50 | - | 94% | 15,253 | 15,006 | $ 10.8 | $ 720 | $ 52.5 | $ 13.1 |
| Q3 2021 | 100 | 822 | - | - | - | - | 0% | 3,847 | 4,822 | $ 8.3 | $ 1,721 | $ 68.1 | $ 21.3 | ||
| Q2 2021 | 100 | 818 | 1,161 | - | 1.67 | - | 95% | 62,438 | 70,695 | $ 53.2 | $ 753 | $ 70.2 | $ 54.2 | ||
| Q1 2021 | 100 | 843 | 1,504 | - | 1.85 | - | 96% | 88,964 | 83,670 | $ 51.3 | $ 613 | $ 68.6 | $ 48.3 | ||
| Q4 2020 | 100 | 1,206 | 1,470 | - | 2.48 | - | 94% | 111,028 | 107,865 | $ 60.8 | $ 564 | $ 65.0 | $ 46.5 | ||
| Chirano - 100% | Q4 2021 | 100 | 625 | 869 | - | 1.48 | - | 85% | 34,561 | 31,633 | $ 45.7 | $ 1,445 | $ 7.5 | $ 15.8 | |
| Q3 2021 | 100 | 802 | 881 | - | 1.54 | - | 87% | 37,588 | 34,999 | $ 49.4 | $ 1,411 | $ 9.3 | $ 17.0 | ||
| Q2 2021 | 100 | 933 | 862 | - | 1.54 | - | 88% | 38,625 | 40,517 | $ 53.7 | $ 1,325 | $ 12.8 | $ 19.0 | ||
| Q1 2021 | 100 | 735 | 821 | - | 1.81 | - | 88% | 43,894 | 41,144 | $ 52.8 | $ 1,283 | $ 10.1 | $ 21.2 | ||
| Q4 2020 | 100 | 915 | 801 | - | 1.75 | - | 88% | 39,121 | 40,202 | $ 45.6 | $ 1,134 | $ 11.3 | $ 13.1 | ||
| Chirano - 90% | Q4 2021 | 90 | 625 | 869 | - | 1.48 | - | 85% | 31,105 | 28,470 | $ 41.1 | $ 1,445 | $ 6.8 | $ 14.2 | |
| Q3 2021 | 90 | 802 | 881 | - | 1.54 | - | 87% | 33,829 | 31,499 | $ 44.5 | $ 1,411 | $ 8.4 | $ 15.3 | ||
| Q2 2021 | 90 | 933 | 862 | - | 1.54 | - | 88% | 34,762 | 36,465 | $ 48.3 | $ 1,325 | $ 11.5 | $ 17.1 | ||
| Q1 2021 | 90 | 735 | 821 | - | 1.81 | - | 88% | 39,505 | 37,030 | $ 47.5 | $ 1,283 | $ 9.1 | $ 19.1 | ||
| Q4 2020 | 90 | 915 | 801 | - | 1.75 | - | 88% | 35,209 | 36,182 | $ 41.0 | $ 1,134 | $ 10.2 | $ 11.8 | ||
| (a) | Tonnes of ore mined and processed represent 100% Kinross for all periods presented. |
| (b) | Due to the nature of heap leach operations, recovery rates at Maricunga and Bald Mountain cannot be accurately measured on a quarterly basis. Recovery rates at Fort Knox, Round Mountain and Tasiast represent mill recovery only. |
| (c) | The Kupol segment includes the Kupol and Dvoinoye mines. Mining activities were completed at Dvoinoye in the fourth quarter of 2020. |
| (d) | Kupol silver grade and recovery were as follows: Q4 2021: 67.11 g/t, 85%; Q3 2021: 72.71 g/t, 87%; Q2 2021: 77.19 g/t, 85%; Q1 2021: 69.95 g/t, 83%; Q4 2020: 65.05 g/t, 84%. |
| (e) | Gold equivalent ounces include silver ounces produced and sold converted to a gold equivalent based on the ratio of the average spot market prices for the commodities for each period. The ratios for the quarters presented are as follows: Q4 2021: 76.89:1; Q3 2021: 73.45:1; Q2 2021: 68.05:1; Q1 2021: 68.33:1; Q4 2020: 77.02:1. |
| (f) | Dvoinoye tonnes of ore processed and grade were as follows: Q4 2021: 110,552, 6.16 g/t; Q3 2021: 111,060, 6.21 g/t; Q2 2021: 103,607, 7.33 g/t; Q1 2021: 109,559, 6.56 g/t; Q4 2020: 115,998, 9.25 g/t. |
| (g) | "Capital expenditures" is as reported as “Additions to property, plant and equipment” on the consolidated statements of cash flows. |
| (h) | "nm" means not meaningful. |
| p. 18 Kinross reports 2021 fourth-quarter and full-end results | www.kinross.com |
| Kinross
Gold Corporation 25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
Reconciliation of non-GAAP financial measures and ratios
The Company has included certain non-GAAP financial measures and ratios in this document. These measures and ratios are not defined under International Financial Reporting Standards (IFRS) and should not be considered in isolation. The Company believes that these measures and ratios, together with measures and ratios determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. The inclusion of these measures and ratios is meant to provide additional information and should not be used as a substitute for performance measures and ratios prepared in accordance with IFRS. These measures and ratios are not necessarily standard and therefore may not be comparable to other issuers.
Adjusted net earnings attributable to common shareholders and adjusted net earnings per share are non-GAAP measures and ratios which determine the performance of the Company, excluding certain impacts which the Company believes are not reflective of the Company’s underlying performance for the reporting period, such as the impact of foreign exchange gains and losses, reassessment of prior year taxes and/or taxes otherwise not related to the current period, impairment charges (reversals), gains and losses and other one-time costs related to acquisitions, dispositions and other transactions, and non-hedge derivative gains and losses. Although some of the items are recurring, the Company believes that they are not reflective of the underlying operating performance of its current business and are not necessarily indicative of future operating results. Management believes that these measures and ratios, which are used internally to assess performance and in planning and forecasting future operating results, provide investors with the ability to better evaluate underlying performance, particularly since the excluded items are typically not included in public guidance. However, adjusted net earnings and adjusted net earnings per share measures and ratios are not necessarily indicative of net earnings and earnings per share measures and ratios as determined under IFRS.
The following table provides a reconciliation of net (loss) earnings to adjusted net earnings for the periods presented:
| Adjusted Net Earnings | ||||||||||||||||
| Three months ended | Years ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| (expressed in millions of U.S dollars, except per share amounts) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Net (loss) earnings attributable to common shareholders - as reported | $ | (2.7 | ) | $ | 783.3 | $ | 221.2 | $ | 1,342.4 | |||||||
| Adjusting items: | ||||||||||||||||
| Foreign exchange losses | 3.3 | 8.2 | 4.7 | 7.3 | ||||||||||||
| Foreign exchange losses on translation of tax basis and foreign exchange on deferred income taxes within income tax expense | 16.7 | 4.6 | 24.1 | 101.2 | ||||||||||||
| Taxes in respect of prior periods | 7.3 | 39.7 | 86.3 | 51.3 | ||||||||||||
| Impairment charges (reversals) and asset derecognition - net(a) | 144.5 | (602.6 | ) | 144.5 | (650.9 | ) | ||||||||||
| COVID-19 costs(b) | 10.5 | 23.3 | 34.8 | 64.1 | ||||||||||||
| Tasiast insurance recoveries | (90.0 | ) | - | (90.0 | ) | - | ||||||||||
| Tasiast mill fire related costs | 19.3 | - | 60.3 | - | ||||||||||||
| Round Mountain pit wall stabilization costs | 7.4 | - | 50.1 | - | ||||||||||||
| Mediation settlement provision | 17.1 | - | 42.1 | - | ||||||||||||
| Tasiast definitve agreement settlement | - | - | 10.0 | - | ||||||||||||
| U.S. CARES Act net benefit | - | - | - | (25.4 | ) | |||||||||||
| Tasiast strike costs | - | - | - | 8.3 | ||||||||||||
| Other(c) | 13.8 | 9.7 | 19.0 | 6.8 | ||||||||||||
| Tax effect of the above adjustments | (45.4 | ) | 68.9 | (65.8 | ) | 61.7 | ||||||||||
| 104.5 | (448.2 | ) | 320.1 | (375.6 | ) | |||||||||||
| Adjusted net earnings attributable to common shareholders | $ | 101.8 | $ | 335.1 | $ | 541.3 | $ | 966.8 | ||||||||
| Weighted average number of common shares outstanding - Basic | 1,254.6 | 1,258.3 | 1,259.1 | 1,257.2 | ||||||||||||
| Adjusted net earnings per share | $ | 0.08 | $ | 0.27 | $ | 0.43 | $ | 0.77 | ||||||||
| Basic (loss) earnings per share attributable to common shareholders | $ | - | $ | 0.62 | $ | 0.18 | $ | 1.07 | ||||||||
| (a) | During the year ended December 31, 2021, the Company recognized impairment and asset derecognition charges of $144.5 million at Bald Mountain, of which $95.2 million related to impairment of metal inventory and $49.3 million related to the derecognition of property, plant and equipment. The tax impacts of the impairment and derecognition charges were income tax recoveries of $25.3 million and $13.1 million, respectively. During the year ended December 31, 2020, the Company recorded non-cash reversals of impairment charges of $689.0 million related to property, plant and equipment at Tasiast, Chirano and Lobo-Marte. The tax impacts on the impairment reversals at Chirano and Lobo-Marte were expenses of $71.6 million and $4.6 million, respectively. There was no tax impact on the impairment reversal at Tasiast. In addition, the Company recorded impairment charges of $38.1 million related to certain supplies inventories. |
| (b) | Includes COVID-19 related labour, health and safety, donations and other support program costs. |
| (c) | Other includes various non-recurring impacts, such as one-time costs at sites, and recurring impacts, such as gains and losses on the sale of assets and hedges, which the Company believes are not reflective of the Company’s underlying performance for the reporting period. |
| p. 19 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
| Kinross
Gold Corporation 25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
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 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:
| Free Cash Flow | ||||||||||||||||
| Three months ended | Years ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| (expressed in millions of U.S dollars) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Net cash flow provided from operating activities - as reported | $ | 197.3 | $ | 681.1 | $ | 1,135.2 | $ | 1,957.6 | ||||||||
| Less: Additions to property, plant and equipment | (298.0 | ) | (298.3 | ) | (938.6 | ) | (916.1 | ) | ||||||||
| Free cash flow | $ | (100.7 | ) | $ | 382.8 | $ | 196.6 | $ | 1,041.5 | |||||||
Adjusted operating cash flow is a non-GAAP measure and 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:
| Adjusted Operating Cash Flow | ||||||||||||||||
| Three months ended | Years ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| (expressed in millions of U.S dollars) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Net cash flow provided from operating activities - as reported | $ | 197.3 | $ | 681.1 | $ | 1,135.2 | $ | 1,957.6 | ||||||||
| Adjusting items: | ||||||||||||||||
| Working capital changes: | ||||||||||||||||
| Accounts receivable and other assets | 20.6 | (47.7 | ) | 50.0 | 120.9 | |||||||||||
| Inventories | 68.6 | 33.1 | 86.7 | 6.8 | ||||||||||||
| Accounts payable and other liabilities, including income taxes paid | 69.5 | (138.9 | ) | 38.0 | (172.6 | ) | ||||||||||
| 158.7 | (153.5 | ) | 174.7 | (44.9 | ) | |||||||||||
| Adjusted operating cash flow | $ | 356.0 | $ | 527.6 | $ | 1,309.9 | $ | 1,912.7 | ||||||||
| p. 20 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
| Kinross
Gold Corporation 25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
Attributable production cost of sales per gold equivalent ounce sold is a non-GAAP ratio and is defined as attributable production cost of sales divided by the attributable number of gold equivalent ounces sold. This measure converts the Company’s non-gold production into gold equivalent ounces and credits it to total production.
Management uses these measures to monitor and evaluate the performance of its operating properties.
The following table presents a reconciliation of attributable production cost of sales per equivalent ounce sold for the periods presented:
| Attributable Production Cost of Sales Per Equivalent Ounce Sold | ||||||||||||||||
| Three months ended | Years ended | |||||||||||||||
| (expressed in millions of U.S. dollars, | December 31, | December 31, | ||||||||||||||
| except ounces and production cost of sales per equivalent ounce) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Production cost of sales - as reported | $ | 425.2 | $ | 436.5 | $ | 1,726.1 | $ | 1,725.7 | ||||||||
| Less: portion attributable to Chirano non-controlling interest(a) | (4.6 | ) | (4.6 | ) | (20.2 | ) | (19.6 | ) | ||||||||
| Attributable(b) production cost of sales | $ | 420.6 | $ | 431.9 | $ | 1,705.9 | $ | 1,706.1 | ||||||||
| Gold equivalent ounces sold | 489,710 | 637,169 | 2,075,738 | 2,375,548 | ||||||||||||
| Less: portion attributable to Chirano non-controlling interest(c) | (3,163 | ) | (4,020 | ) | (14,829 | ) | (16,621 | ) | ||||||||
| Attributable(b) gold equivalent ounces sold | 486,547 | 633,149 | 2,060,909 | 2,358,927 | ||||||||||||
| Attributable(b) production cost of sales per equivalent ounce sold | $ | 864 | $ | 682 | $ | 828 | $ | 723 | ||||||||
| Consolidated production cost of sales per equivalent ounce sold(d) | $ | 868 | $ | 685 | $ | 832 | $ | 726 | ||||||||
See page 24 for details of the footnotes referenced within the table above.
Attributable production cost of sales per ounce sold on a by-product basis is a non-GAAP ratio which calculates the Company’s non-gold production as a credit against its per ounce production costs, rather than converting its non-gold production into gold equivalent ounces and crediting it to total production, as is the case in co-product accounting. Management believes that this ratio provides investors with the ability to better evaluate Kinross’ production cost of sales per ounce on a comparable basis with other major gold producers who routinely calculate their cost of sales per ounce using by-product accounting rather than co-product accounting.
The following table provides a reconciliation of attributable production cost of sales per ounce sold on a by-product basis for the periods presented:
| Attributable Production Cost of Sales Per Ounce Sold on a By-Product Basis | ||||||||||||||||
| Three months ended | Years ended | |||||||||||||||
| (expressed in millions of U.S. dollars, | December 31, | December 31, | ||||||||||||||
| except ounces and production cost of sales per ounce) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Production cost of sales - as reported | $ | 425.2 | $ | 436.5 | $ | 1,726.1 | $ | 1,725.7 | ||||||||
| Less: portion attributable to Chirano non-controlling interest(a) | (4.6 | ) | (4.6 | ) | (20.2 | ) | (19.6 | ) | ||||||||
| Less: attributable(b) silver revenue(e) | (23.6 | ) | (28.3 | ) | (107.9 | ) | (91.0 | ) | ||||||||
| Attributable(b) production cost of sales net of silver by-product revenue | $ | 397.0 | $ | 403.6 | $ | 1,598.0 | $ | 1,615.1 | ||||||||
| Gold ounces sold | 476,466 | 622,235 | 2,015,068 | 2,324,324 | ||||||||||||
| Less: portion attributable to Chirano non-controlling interest(c) | (3,160 | ) | (4,014 | ) | (14,806 | ) | (16,589 | ) | ||||||||
| Attributable(b) gold ounces sold | 473,306 | 618,221 | 2,000,262 | 2,307,735 | ||||||||||||
| Attributable(b) production cost of sales per ounce sold on a by-product basis | $ | 839 | $ | 653 | $ | 799 | $ | 700 | ||||||||
| Consolidated production cost of sales per equivalent ounce sold(d) | $ | 868 | $ | 685 | $ | 832 | $ | 726 | ||||||||
See page 24 for details of the footnotes referenced within the table above.
| p. 21 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
| Kinross
Gold Corporation 25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
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, 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 and ratios presented by the Company may not be comparable to similar measures and ratios presented by other issuers. The Company believes that the all-in sustaining cost and all-in cost measures complement existing measures and ratios reported by Kinross.
All-in sustaining cost includes both operating and capital costs required to sustain gold production on an ongoing basis. The value of silver sold is deducted from the total production cost of sales as it is considered residual production. 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:
| Attributable All-In Sustaining Cost and All-In Cost Per Ounce Sold on a By-Product Basis | ||||||||||||||||
| Three months ended | Years ended | |||||||||||||||
| (expressed in millions of U.S. dollars, | December 31, | December 31, | ||||||||||||||
| except ounces and costs per ounce) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Production cost of sales - as reported | $ | 425.2 | $ | 436.5 | $ | 1,726.1 | $ | 1,725.7 | ||||||||
| Less: portion attributable to Chirano non-controlling interest(a) | (4.6 | ) | (4.6 | ) | (20.2 | ) | (19.6 | ) | ||||||||
| Less: attributable(b) silver revenue(e) | (23.6 | ) | (28.3 | ) | (107.9 | ) | (91.0 | ) | ||||||||
| Attributable(b) production cost of sales net of silver by-product revenue | $ | 397.0 | $ | 403.6 | $ | 1,598.0 | $ | 1,615.1 | ||||||||
| Adjusting items on an attributable(b) basis: | ||||||||||||||||
| General and administrative(f) | 32.0 | 36.1 | 126.6 | 117.9 | ||||||||||||
| Other operating expense - sustaining(g) | 1.6 | 0.7 | 10.6 | 9.6 | ||||||||||||
| Reclamation and remediation - sustaining(h) | 11.0 | 16.0 | 43.2 | 54.0 | ||||||||||||
| Exploration and business development - sustaining(i) | 9.2 | 13.2 | 40.0 | 48.3 | ||||||||||||
| Additions to property, plant and equipment - sustaining(j) | 154.5 | 136.2 | 386.0 | 373.5 | ||||||||||||
| Lease payments - sustaining(k) | 9.6 | 7.1 | 32.8 | 19.7 | ||||||||||||
| All-in Sustaining Cost on a by-product basis - attributable(b) | $ | 614.9 | $ | 612.9 | $ | 2,237.2 | $ | 2,238.1 | ||||||||
| Other operating expense - non-sustaining(g) | 10.3 | 17.2 | 38.1 | 55.9 | ||||||||||||
| Reclamation and remediation - non-sustaining(h) | 0.9 | 1.3 | 3.4 | 5.0 | ||||||||||||
| Exploration and business development - non-sustaining(i) | 27.7 | 17.4 | 91.3 | 43.3 | ||||||||||||
| Additions to property, plant and equipment - non-sustaining(j) | 141.8 | 160.1 | 544.6 | 536.9 | ||||||||||||
| Lease payments - non-sustaining(k) | 0.1 | 0.1 | 1.0 | 1.0 | ||||||||||||
| All-in Cost on a by-product basis - attributable(b) | $ | 795.7 | $ | 809.0 | $ | 2,915.6 | $ | 2,880.2 | ||||||||
| Gold ounces sold | 476,466 | 622,235 | 2,015,068 | 2,324,324 | ||||||||||||
| Less: portion attributable to Chirano non-controlling interest(c) | (3,160 | ) | (4,014 | ) | (14,806 | ) | (16,589 | ) | ||||||||
| Attributable(b) gold ounces sold | 473,306 | 618,221 | 2,000,262 | 2,307,735 | ||||||||||||
| Attributable(b) all-in sustaining cost per ounce sold on a by-product basis | $ | 1,299 | $ | 991 | $ | 1,118 | $ | 970 | ||||||||
| Attributable(b) all-in cost per ounce sold on a by-product basis | $ | 1,681 | $ | 1,309 | $ | 1,458 | $ | 1,248 | ||||||||
| Consolidated production cost of sales per equivalent ounce sold(d) | $ | 868 | $ | 685 | $ | 832 | $ | 726 | ||||||||
See page 24 for details of the footnotes referenced within the table above.
| p. 22 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
| Kinross
Gold Corporation 25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
The Company also assesses its all-in sustaining cost and all-in cost on a gold equivalent ounce basis. Under these non-GAAP measures and ratios, the Company’s production of silver is converted into gold equivalent ounces and credited to total production.
Attributable all-in sustaining cost and all-in cost per equivalent ounce sold are calculated by adjusting total production cost of sales, as reported on the interim condensed consolidated statement of operations, as follows:
| Attributable All-In Sustaining Cost and All-In Cost Per Equivalent Ounce Sold | ||||||||||||||||
| Three months ended | Years ended | |||||||||||||||
| (expressed in millions of U.S. dollars, | December 31, | December 31, | ||||||||||||||
| except ounces and costs per equivalent ounce) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Production cost of sales - as reported | $ | 425.2 | $ | 436.5 | $ | 1,726.1 | $ | 1,725.7 | ||||||||
| Less: portion attributable to Chirano non-controlling interest(a) | (4.6 | ) | (4.6 | ) | (20.2 | ) | (19.6 | ) | ||||||||
| Attributable(b) production cost of sales | $ | 420.6 | $ | 431.9 | $ | 1,705.9 | $ | 1,706.1 | ||||||||
| Adjusting items on an attributable(b) basis: | ||||||||||||||||
| General and administrative(f) | 32.0 | 36.1 | 126.6 | 117.9 | ||||||||||||
| Other operating expense - sustaining(g) | 1.6 | 0.7 | 10.6 | 9.6 | ||||||||||||
| Reclamation and remediation - sustaining(h) | 11.0 | 16.0 | 43.2 | 54.0 | ||||||||||||
| Exploration and business development - sustaining(i) | 9.2 | 13.2 | 40.0 | 48.3 | ||||||||||||
| Additions to property, plant and equipment - sustaining(j) | 154.5 | 136.2 | 386.0 | 373.5 | ||||||||||||
| Lease payments - sustaining(k) | 9.6 | 7.1 | 32.8 | 19.7 | ||||||||||||
| All-in Sustaining Cost - attributable(b) | $ | 638.5 | $ | 641.2 | $ | 2,345.1 | $ | 2,329.1 | ||||||||
| Other operating expense - non-sustaining(g) | 10.3 | 17.2 | 38.1 | 55.9 | ||||||||||||
| Reclamation and remediation - non-sustaining(h) | 0.9 | 1.3 | 3.4 | 5.0 | ||||||||||||
| Exploration and business development - non-sustaining(i) | 27.7 | 17.4 | 91.3 | 43.3 | ||||||||||||
| Additions to property, plant and equipment - non-sustaining(j) | 141.8 | 160.1 | 544.6 | 536.9 | ||||||||||||
| Lease payments - non-sustaining(k) | 0.1 | 0.1 | 1.0 | 1.0 | ||||||||||||
| All-in Cost - attributable(b) | $ | 819.3 | $ | 837.3 | $ | 3,023.5 | $ | 2,971.2 | ||||||||
| Gold equivalent ounces sold | 489,710 | 637,169 | 2,075,738 | 2,375,548 | ||||||||||||
| Less: portion attributable to Chirano non-controlling interest(c) | (3,163 | ) | (4,020 | ) | (14,829 | ) | (16,621 | ) | ||||||||
| Attributable(b) gold equivalent ounces sold | 486,547 | 633,149 | 2,060,909 | 2,358,927 | ||||||||||||
| Attributable(b) all-in sustaining cost per equivalent ounce sold | $ | 1,312 | $ | 1,013 | $ | 1,138 | $ | 987 | ||||||||
| Attributable(b) all-in cost per equivalent ounce sold | $ | 1,684 | $ | 1,322 | $ | 1,467 | $ | 1,260 | ||||||||
| Consolidated production cost of sales per equivalent ounce sold(d) | $ | 868 | $ | 685 | $ | 832 | $ | 726 | ||||||||
See page 24 for details of the footnotes referenced within the table above.
| p. 23 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
| Kinross
Gold Corporation 25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
| (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) | “Portion attributable to Chirano non-controlling interest” represents the non-controlling interest (10%) in the ounces sold from the Chirano mine. |
| (d) | “Consolidated production cost of sales per equivalent ounce sold” is defined as production cost of sales divided by total gold equivalent ounces sold. |
| (e) | “Attributable silver revenues” 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. |
| (f) | “General and administrative” expenses is as reported on the 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. |
| (g) | “Other operating expense – sustaining” is calculated as “Other operating expense” as reported on the 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. |
| (h) | “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. |
| (i) | “Exploration and business development – sustaining” is calculated as “Exploration and business development” expenses as reported on the consolidated statement of operations, less non-sustaining exploration and business development expenses. Exploration expenses are classified as either sustaining or non-sustaining based on a determination of the type and location of the exploration expenditure. Exploration expenditures within the footprint of operating mines are considered costs required to sustain current operations and so are included in sustaining costs. Exploration expenditures focused on new ore bodies near existing mines (i.e. brownfield), new exploration projects (i.e. greenfield) or for other generative exploration activity not linked to existing mining operations are classified as non-sustaining. Business development expenses are classified as either sustaining or non-sustaining based on a determination of the type of expense and requirement for general or growth related operations. |
| (j) | “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 consolidated statements of cash flows), less capitalized interest and 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 year ended December 31, 2021, primarily related to major projects at Tasiast, La Coipa, Udinsk, Fort Knox and Round Mountain. Non-sustaining capital expenditures during the year ended December 31, 2020, primarily related to major projects at Tasiast, Fort Knox and Round Mountain. |
| (k) | “Lease payments – sustaining” represents the majority of lease payments as reported on the consolidated statements of cash flows and is made up of the principal and financing components of such cash payments, less non-sustaining lease payments. Lease payments for development projects or closed mines are classified as non-sustaining. |
| p. 24 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
| Kinross
Gold Corporation 25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
Cautionary statement on forward-looking information
All statements, other than statements of historical fact, contained or incorporated by reference in this news release including, but not limited to, any information as to the future financial or operating performance of Kinross, constitute “forward-looking information” or “forward-looking statements” within the meaning of certain securities laws, including the provisions of the Securities Act (Ontario) and the provisions for “safe harbor” under the United States Private Securities Litigation Reform Act of 1995 and are based on expectations, estimates and projections as of the date of this news release. Forward-looking statements contained in this news release, include, but are not limited to, those under the headings (or headings that include) “2021 full-year results and guidance”, “2021 Q4 highlights”, “Environment, Social Governance (ESG)”, “CEO Commentary”, “Operating Results”, “Great Bear Resources acquisition update”, “Development Projects”, and “Company Guidance” as well as 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 greenhouse gas emissions reduction targets; 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, restarting suspended or disrupted operations; environmental risks and proceedings; and resolution of pending litigation. The words “advance”, “believe”, “continue”, “estimates”, “expects”, “explore”, “forecast”, “future”, “growth”, “goal”, “guidance”, “outlook”, “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 news release, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth herein and in our Management’s Discussion and Analysis (“MD&A”) for the year ended December 31, 2021, 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; ramp-up of production at the La Coipa project; in each case in a manner consistent with the Company’s expectations; and the successful completion of exploration consistent with the Company’s expectations at the Company’s projects; (3) political and legal developments in any jurisdiction in which the Company operates being consistent with its current expectations including, without limitation, 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) attributable production and cost of sales forecasts for the Company meeting expectations; (9) the accuracy of: the current mineral reserve and mineral resource estimates of the Company and Kinross’ analysis thereof being consistent with expectations (including but not limited to ore tonnage and ore grade estimates), future mineral resource and mineral reserve estimates being consistent with preliminary work undertaken by the Company, mine plans for the Company’s current and future mining operations, and the Company’s internal models; (10) labour and materials costs increasing on a basis consistent with Kinross’ current expectations; (11) the terms and conditions of the legal and fiscal stability agreements for 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, and the ongoing Sunnyside settlement 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) that the Great Bear Resources acquisition will close in accordance with, and on the timeline contemplated by, the terms and conditions of the relevant agreements, on a basis consistent with our expectations; (24) the anticipated mineralization of the Dixie Project being consistent with expectations and the potential benefits to Kinross from the project and any upside from the project; and (25) 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 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 news release are qualified by this cautionary statement and those made in our other filings with the securities regulators of Canada and the United States including, but not limited to, the cautionary statements made in the “Risk Analysis” section of our MD&A for the year ended December 31, 2021, the Annual Information Form dated March 30, 2021 and the “Cautionary Statement on Forward-Looking Information” in our greenhouse gas emissions news release dated February 16, 2022. These factors are not intended to represent a complete list of the factors that could affect Kinross. Kinross disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.
| p. 25 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
| Kinross
Gold Corporation 25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
Other information
Where we say "we", "us", "our", the "Company", or "Kinross" in this news release, we mean Kinross Gold Corporation and/or one or more or all of its subsidiaries, as may be applicable.
The technical information about the Company’s mineral properties contained in this news release has been prepared under the supervision of Mr. John Sims who is a “qualified person” within the meaning of National Instrument 43-101.Mr. Sims was an officer of Kinross until December 31, 2020. Mr. Sims remains the Company’s qualified person as an external consultant.
Source: Kinross Gold Corporation
| p. 26 Kinross reports 2021 fourth-quarter and full-year results | www.kinross.com |
Exhibit 99.2
 |
Kinross Gold Corporation |
25 York Street, 17th Floor
| |
| For
more information, please see Kinross’ 2021 year-end | |
| Financial Statements, MD&A | |
| and results news release | |
| at www.kinross.com |
NEWS RELEASE
Kinross provides update on development projects and full-year 2021 exploration results
Mineral reserves increase 2.7 million gold oz. year-over-year to 32.6 million gold oz.
La Coipa starts commissioning, increases production estimate by 45% and mine life to early 2026
Toronto, Ontario – February 16, 2022 – Kinross Gold Corporation (TSX:K; NYSE:KGC) (“Kinross” or the “Company”) today provided updates on its development projects, exploration program and its estimated mineral reserves and resources.
(This news release contains forward-looking information about expected financial and operating performance of the Company. All mineral reserves and mineral resources, as well as mine life disclosures, are estimates. All dollar amounts are expressed in U.S. dollars, unless otherwise noted)
Development project highlights:
| · | Tasiast 24k: Project proceeding on schedule to reach throughput of 21,000 tonnes per day on a sustained basis by the end of Q1 2022, and 24,000 tonnes per day by mid-2023. |
| · | La Coipa Restart: Commissioning commenced in February 2022 on schedule and on budget. The project increased estimated life of mine production by 45% to 1 million Au eq. oz. and extended mine life into early 2026. |
| · | Udinsk: Feasibility study is advancing well and is on schedule to be completed in Q3 2022. Mine plan optimization work is ongoing. |
| · | Lobo-Marte: Activities related to permitting continue after the completion of the project feasibility study last quarter. |
| · | Tasiast solar power plant: Proceeding with development of a 34 MW solar power plant to reduce greenhouse gas emissions at Tasiast. |
| · | Manh Choh: Feasibility study on schedule to be completed by the end of 2022. |
Exploration and Mineral Reserves and Resources1 update:
| · | Kinross increased proven and probable mineral reserve estimates to 32.6 million Au oz. in 2021, adding 2.7 million Au oz. net of depletion, mainly due to additions of 3.0 million Au oz. at Udinsk and a net increase of 792 Au koz. at Round Mountain, primarily from Phase S. |
| · | Chirano added 400 Au koz. of measured and indicated mineral resources, and extended its estimated mine life by one year to 2026. Tasiast added 700 Au koz. to its inferred mineral resource as part of the underground West Branch depth extension. |
| · | In 2022, Kinross expects to ramp up its global exploration program by following up on key targets identified in 2021 – which include significant results at Round Mountain and the Kayenmyvaam license near Kupol – with the goal of adding to its mineral reserve and resource estimates. |
CEO commentary
J. Paul Rollinson, President and CEO, made the following comments in relation to Kinross’ development projects:
“In 2021, Kinross successfully added 2.7 million gold ounces to its mineral reserve estimates net of depletion, bringing our total to 32.6 million gold ounces, primarily as a result of advancing exploration programs and project studies at Udinsk, Lobo-Marte and Round Mountain.
“Our development projects also continued to advance well. At La Coipa, estimated life-of-mine production increased 45% to 1 million ounces, which also extended mine life to early 2026. Commissioning of the plant began in February 2022, on schedule and on budget, with the project expected to reach full operating capacity at mid-year. The Tasiast 24k project is also progressing well, and is expected to reach a sustained throughput of 21,000 tonnes per day by the end of this quarter. We also look forward to completing the feasibility study at Udinsk in the third quarter.
1 See also Kinross’ Annual Mineral Reserve and Mineral Resource Statement, estimated as at December 31, 2021, and explanatory notes starting at page 21.
| p. 1 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
|
Kinross Gold Corporation |
| 25 York Street, 17th Floor | |
| Toronto, ON Canada M5J 2V5 |
“In 2022, we expect to ramp up our global exploration program, with a particular focus at Round Mountain and the Kayenmyvaam license near Kupol, with the goal of adding to our mineral resource estimates. We also look forward to closing the Great Bear acquisition and plan to immediately initiate a comprehensive exploration program at the Dixie project in Red Lake, Ontario.”
Development projects
Tasiast projects
Tasiast 24k: The Tasiast 24k project continues to advance well, with the first phase of the project on schedule to reach sustained throughput of 21,000 tonnes per day by the end of Q1 2022. The power plant started operations in Q4 2021 and commissioning is ongoing at a number of facilities that are part of the project’s first phase. The second phase of the project is also progressing well and is on schedule to reach throughput of 24,000 tonnes per day by mid-2023. Engineering for the second phase of the project is 60% complete, with all major equipment purchased and construction of the site’s third leach tank 50% complete.
Tasiast solar project: As part of Kinross’ efforts to reduce its greenhouse gas (“GHG”) emissions, the Company is proceeding with the development of a photovoltaic solar power plant at Tasiast with power generation capacity of 34 MW and a battery system of 18 MW.
The plant is expected to generate positive returns and reduce GHG emissions by up to 50 Kt per year, or approximately 530 Kt over the life of mine, which could save approximately 180 million litres of fuel over the same period. The plant is expected to be integrated with Tasiast’s power generation suite, and provide approximately 20% of the site’s power. Site activities, such as geotechnical drilling for solar panel foundations, is expected to commence in Q2 2022, with the plant scheduled to be completed in Q3 2023. The project is expected to cost approximately $55 million and contribute to the Government of Mauritania’s GHG reduction targets in the country.
La Coipa Restart
The La Coipa Restart project in Chile continued to make excellent progress, with commissioning of the plant commencing in February 2022, on schedule and on budget. The project is currently using lower grade stockpile ore for commissioning, with the plant expected to ramp up over the first half of the year to reach full operating capacity mid-year. Plant refurbishments of critical components are essentially complete, with other ongoing refurbishments planned during the ramp up period. The construction of the mine road has been completed.
Kinross has increased La Coipa’s expected life of mine production by 45% to approximately 1 million Au eq. oz., compared with the previous estimate of 690 Au eq. koz. by incorporating the nearby Puren pit into the project and optimizing the Phase 7 mine plan. The increase in production has extended La Coipa’s estimated mine life to early 2026 from 2024. With the positive changes to the mine plan, some ounces expected in 2023 are planned to be deferred into later years due to blending of lower grade Puren ore with Phase 7 ore. Pre-stripping at the main Phase 7 pit continues on schedule, with pre-stripping at Puren expected to start in early Q2 2022.
The Company continues to study other opportunities to further expand La Coipa’s mine plan, including an additional Puren pushback and incorporating other adjacent pits into the project. Kinross has also recently signed a power purchase agreement to supply La Coipa with 100% renewable power to meet its power needs, in line with the Company’s GHG reduction strategy.
As a result of mine plan optimizations, the Company added to La Coipa’s gold and silver mineral reserve estimates. Kinross also added to the project’s gold and silver mineral resource estimates, mainly due to the change in the Company’s silver price assumption for mineral resources from $20 per ounce to $22 per ounce:
| · | Added 27 Au koz. to proven and probable reserves and 251 Au koz. to measured and indicated resources |
| · | Added 857 Ag koz. to proven and probable mineral reserves and 6,588 Ag koz. to measured and indicated resources |
| p. 2 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
|
Kinross Gold Corporation |
| 25 York Street, 17th Floor | |
| Toronto, ON Canada M5J 2V5 |
| La Coipa Gold Mineral Reserve and Mineral Resource estimates1,3 | |||
2020 (Au koz) |
Exploration
& (Au koz) |
2021 (Au koz) | |
| Proven and Probable Reserves | 871 | 27 | 898 |
| Measured and Indicated Resources | 1,161 | 251 | 1,412 |
| Inferred Resources | 108 | 1 | 109 |
| La Coipa Silver Mineral Reserve and Mineral Resource estimates1,3 | |||
2020 (Ag koz) |
Exploration
& (Ag koz) |
2021 (Ag koz) | |
| Proven and Probable Reserves | 40,872 | 857 | 41,728 |
| Measured and Indicated Resources | 28,704 | 6,588 | 35,292 |
| Inferred Resources | 3,036 | (17) | 3,019 |
Lobo-Marte
After completion of the Lobo-Marte feasibility study last quarter, the Company continues to work on activities related to permitting, and the Environmental Impact Assessment. The timing for Lobo-Marte is dependent on permitting and the conclusion of mining at La Coipa. Should further La Coipa mine life extension opportunities be successful, such as the additional Puren pushback and incorporating other adjacent pits, Lobo-Marte’s timing is expected to be affected accordingly.
Lobo-Marte provides optionality for Kinross’ long-term portfolio and the Company sees potential to develop the project into a large, low-cost mine. The go-forward decision will depend on a range of factors, including the gold price environment and projections, expected economic returns, and permitting.
Udinsk
The Udinsk feasibility study continues to advance engineering with a focus on design optimization, capital cost updates and trend analysis. The Company has now incorporated the construction of a power line to connect Udinsk to the regional grid as part of the base case feasibility study. In addition to reducing GHG emissions, the power line can potentially improve life of mine costs, project economics, and local power availability in local communities.
The feasibility study is also contemplating mine plan optimizations to enhance value and project economics that may bring incremental capital requirements. These include higher benches to potentially expand the pit and increase mine life, and optimizing plans for roads and the camp.
Capital cost and operating cost input pricing updates, including incorporating potential inflation impacts, will commence in late Q1 2022 and will be completed as engineering designs are finalized and execution planning is completed. Permitting work is also advancing, as well as community engagement activities. The feasibility study is on schedule to be completed in Q3 2022.
Project construction is expected to commence with early work activities in late 2022, and first production is planned for Q4 2025, pending a positive development decision.
| p. 3 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
|
Kinross Gold Corporation |
| 25 York Street, 17th Floor | |
| Toronto, ON Canada M5J 2V5 |
Exploration work during 2021 has identified several targets that are expected to be tested during 2022. More details are included in the Exploration update below.
Manh Choh
At the 70%-owned Manh Choh project, normal course permit applications were submitted at the end of 2021, including a wetlands permit under the Clean Water Act. Feasibility study work is advancing and the Company continues to refine the project plan, including implementing strategies to address potential impacts of inflation and contractor and labour market constraints in Alaska. The feasibility study is on schedule to be completed by the end of 2022 and, subject to permitting, initial production is expected to commence in late 2024.
Kinross is continuing to prioritize transparent engagement with local communities and the Village of Tetlin as it develops the project, building on its long and successful history of safe, responsible mining in Alaska. Manh Choh is expected to generate significant economic benefits for state and local communities, and the project plan minimizes Manh Choh’s environmental footprint by avoiding the construction of a mill and tailings facilities by transporting ore to Fort Knox for processing.
2021 Mineral Reserves and Mineral Resources update
(See also the Company’s detailed Annual Mineral Reserve and Mineral Resource Statement estimated as at December 31, 2021 and explanatory notes starting at page 21.)
Kinross maintained its gold price assumptions of $1,200 per ounce and $1,600 per ounce for its mineral reserve and mineral resource estimates, respectively, as of December 31, 20212.
The Company also maintained its $17 per ounce silver price assumption for its mineral reserve estimates, but has increased its silver price assumption to $22 per ounce, from $20 per ounce, for estimated mineral resources in order to better reflect the strong silver price performance2.
Kinross continues to prioritize quality, high-margin, low-cost ounces in its portfolio, and maintained its fully-loaded costing methodology.
| Kinross Gold Mineral Reserve and Mineral Resource estimates1,3 | ||||
2020 (Au koz) |
Depletion (Au koz) |
Exploration
& (Au koz) |
2021 (Au koz) | |
| Proven and Probable Reserves | 29,988 | (2,417) | 5,077 | 32,649 |
| Measured and Indicated Resources | 32,438 | (90) | (3,832) | 28,517 |
| Inferred Resources | 8,980 | (59) | 168 | 9,091 |
Proven and Probable Mineral Reserves
Kinross’ total proven and probable mineral reserve estimates increased by 9%, or 2.7 million Au oz., to 32.6 million Au oz. at year-end 2021 compared with 30.0 million Au oz. at year-end 2020. The net increase was mostly due to a significant addition at Chulbatkan, and additions at Round Mountain and Lobo-Marte.
2 Please see page 24 for Mineral Reserve and Mineral Resource Statement Notes.
3 Rounding of values to the 000s may result in apparent discrepancies.
| p. 4 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
|
Kinross Gold Corporation |
| 25 York Street, 17th Floor | |
| Toronto, ON Canada M5J 2V5 |
| · | 3.0 million Au oz. addition at Chulbatkan after the project PFS was completed in November 2021. |
| · | 792 Au koz. net addition at Round Mountain, mostly due to the Phase S pushback in the south area of the pit. |
| · | 340 Au koz. addition at Lobo-Marte, following the completion of the project FS in November 2021. |
| · | Fort Knox offset depletion as a result of 205 Au koz. from the Gil satellite project, and 110 Au koz. from the pit, being converted to mineral reserves. |
Measured and Indicated Mineral Resources
Kinross’ total measured and indicated mineral resources estimate at year-end 2021 was 28.5 million Au oz. compared with 32.4 million Au oz. at year-end 2020. The decrease was largely a result of conversions of mineral resources to mineral reserves at Chulbatkan, Fort Knox and Round Mountain, partially offset by increases at Chirano, La Coipa and Lobo-Marte. At Chirano, exploration success and engineering changes added 400 Au koz. of measured and indicated resources at the site, while La Coipa and Lobo-Marte added 251 Au koz. and 200 Au koz., respectively, due to mine plan optimizations.
The Company’s total measured and indicated silver resources increased by 16% to 45.6 million Ag oz. at year-end 2021 compared with 39.2 million Ag oz. at year-end 2020. The increase was mostly due to La Coipa, which added 6.6 million Ag oz., mainly due to the change in silver price assumption from $20 per ounce to $22 per ounce, and mine plan optimization work.
Inferred Mineral Resources
Kinross’ total inferred mineral resource estimate increased to 9.1 million Au oz. at year-end 2021, compared with 9.0 million Au oz. at year-end 2020. Tasiast added 700 Au koz. to its inferred resource estimate, mainly as a result of ounces from the underground West Branch depth extension. The additions at Tasiast were mostly offset by decreases at Fort Knox, Round Mountain and Paracatu.
Exploration update
The Company’s exploration efforts continued to focus within the footprint of existing mines during 2021, with a total of more than 234,000 metres of drilling completed for all exploration projects.
Highlights of the 2021 brownfields exploration program include significant results at Round Mountain, the Kayenmyvaam license near Kupol and Chirano. The 2021 program was highly focused on defining key targets, with the plan to follow up on these results in 2022 with a comprehensive drilling program and add to Kinross’ mineral resource estimates.
Exploration efforts and engineering optimization added a total of approximately 5.1 million Au oz. in estimated mineral reserves before depletion in 2021. A large portion of the addition was from the conversion of 3.0 million Au oz. at Chulbatkan from mineral resources to mineral reserves.
| · | Russia – Kupol area: Two remote field camps were established at Kayenmyvaam and Kavralyanskaya to support exploration work within the eastern and southern regions of the Kupol Synergy Zone of Influence (“KSP”), the 130 kilometre radius around Kupol based on an economic trucking distance to the mill. |
At Kayenmyvaam, drilling has delineated the Arykvaam mineralized structure. The ore body has been defined across a strike length of approximately 1.4 kilometres with significant opportunities remaining both down dip and along strike of the main vein structure. (See Appendix A: Figure 1 for KSP map; Figure 2 for Arykvaam cross-section)
| · | Round Mountain: Phase X drilling confirmed continuity of several structural domains that control the geometry of the mineralization for which encouraging high grades were received, with drilling also showing continuity of mineralization beyond the current resource pit. Drilling at Gold Hill (approximately seven kilometres northeast of Round Mountain) discovered a new high-grade vein located over 300 metres from the current Gold Hill resource. Follow-up drilling confirmed an appreciable down dip, within an untested structural corridor. (See Appendix A: Figure 3 for Phase X; Figure 4 for Round Mountain and Gold Hill map) |
| p. 5 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
|
Kinross Gold Corporation |
| 25 York Street, 17th Floor | |
| Toronto, ON Canada M5J 2V5 |
| · | Chirano: Near-mine exploration activities, which included 40,600 metres of drilling in 2021, continued to focus on resource addition and mine life extension. Chirano extended its estimated mine life one year to 2026. |
An exploration drift to drill the Obra underground resource was completed and 36 holes were drilled. All the holes returned encouraging results. In addition, drilling at Akwaaba, Tano and Suraw added approximately 400 Au koz. to the mineral resource estimates, which is expected to be available for conversion to mineral reserves in subsequent years.
For 2022, the exploration budget (brownfields and greenfields) increased to $130 million compared with $120 million in 2021. The increase is largely due to programs that will follow up on 2021’s exploration success, including focusing on the KSP and starting an underground exploration drift at Round Mountain. The exploration forecast does not include activities planned at the Dixie project in Red Lake, Ontario, pending the expected closing of the Great Bear Resources acquisition.
| · | Russia – Kupol area: Kinross expects to spend up to $24 million in 2022 to explore targets within the KSP, including Dvoinoye, Kayenmyvaam, Kavralyanskaya, and the newly acquired Kvartseviy licenses, which the Company received permits to explore in 2021. These targets, together with deferred work on numerous prospective tenements in the KSP, will continue to be a focus for 2022. (See Appendix A: Figure 1 for map) |
| · | Russia – Chulbatkan region: The 2021 exploration work has identified key targets that are expected to be tested during 2022, including the Bismuth Cluster, Taimen and Soyka. A budget of approximately $11 million is allocated to Chulbatkan. Surface geochemistry work during 2021 highlighted several new target areas. An anomaly that is located approximately five kilometres southwest of the Udinsk deposit will be a focus area in the 2022 field season. (See Appendix A: Figure 5 for map) |
| · | Round Mountain: In 2022, Kinross is budgeting $16 million for the construction of a drift for underground exploration drilling at Phase X and surface exploration work at Gold Hill and the Round Mountain district. |
| · | Chirano: The Company is continuing to focus on upgrading the 2021 mineral resource estimates from the Obra, Tano, Suraw and Akwaaba underground, and to extend the Mamnao open pit. A budget of $8 million is allocated to Chirano. |
| · | Alaska: Kinross is budgeting approximately $7 million at Alaska for Fort Knox and Manh Choh, with the goal of converting inferred resource estimates at Gil-Sourdough to indicated resources, and exploring two key targets at Manh Choh, along with extensive regional reconnaissance for the greater Tetlin lease area. |
A more detailed summary of 2021 highlights is presented below. Additional details may be found in the Appendices.
“Appendix A” provides illustrations, captions, and accompanying explanatory notes, and “Appendix B” provides complete drilling results and drill hole location data corresponding to the values below.
Appendix A: Refer to page 16 of this news release.
Appendix B: https://www.kinross.com/Exploration-drill-results-Appendix-B-Q4-YE-2021
Russia – Kupol area
Two remote field camps were established at Kayenmyvaam and Kavralyanskaya to support exploration work within the eastern and southern regions of the KSP. A total of approximately 74,000 metres of drilling was completed throughout the Chukotka region during the 2021 exploration campaign, including more than 40,000 metres after the two field camps were established at the end of Q1 2021.
| p. 6 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
|
Kinross Gold Corporation |
| 25 York Street, 17th Floor | |
| Toronto, ON Canada M5J 2V5 |
At Kayenmyvaam, drilling has delineated the Arykvaam mineralized structure. The ore body has been defined across a strike length of approximately 1.4 kilometres, with significant opportunities remaining both down dip and along strike of the main vein structure. Drilling in the northern-most extent of the main Arykvaam structure has exposed high-grade veins at depth of approximately 250-300 metres, with attractive widths and excellent grades, including:
| · | KY21-161 – 15.0m @ 6.0 g/t Au Eq.; |
| · | KY21-162 – 3.5 m @ 10.3g/t Au Eq.; |
| · | KY21-216 – 8.5 m @ 7.8 g/t Au Eq.; and |
| · | KY21-220 – 4.7 m @ 12.5 g/t Au Eq. |
(See Appendix B for full drill results)
Drilling at Arykvaam has shown the presence of two additional mineralized zones of probable down-dip oriented, higher-grade ore shoots. In addition to drilling, magnetic survey data has provided excellent resolution on structures under the cover of tundra, allowing for further planning of extensional and regional exploration drilling in the Arykvaam area for 2022.
At Dvoinoye, a total of more than 15,000 metres of drilling was completed during 2021. Drilling in the Tarantula target area encountered a narrow high-grade zone associated with finely disseminated sulphide (mostly pyrite) veinlets, which selectively returned high-grade intercepts of up to 280 g/t Au. The Tarantula target mineralization is likely parallel to rhyolite dykes that follow the September target structural corridor.
During the latter part of 2021, a detailed geologic review commenced at Dvoinoye with the aim of identifying potential stratigraphic markers and their correlation between tectonic blocks. The recommendations from the work will be carried out in 2022. Additionally, field mapping and reinterpretation of historical drilling has identified a previously untested copper-molybdenum anomaly, which has been marked for follow up drilling in the 2022 exploration program.
The field camp established at Kavralyanskaya will serve as the base of operations for all the southern targets within the KSP area. Drilling in the Kosoy target area has revealed a multi-phased mineralized structure which is hosted in a volcanic sequence. The area has limited historical drilling and a series of grab samples collected returned high grades. Drilling at Kosoy returned encouraging results including:
| · | KAV21-026 4.0 m @ 4.7 g/t Au & 65.4 g/t Ag; and |
| · | KAV21-016 1.5 m @ 2.5 g/t Au & 61.7 g/t Ag. |
(See Appendix B for full drill results)
Kvartseviy is a recently granted license, which is northeast of Kayenmyvaam, and appears to represent a similar geologic setting as the Arykvaam deposit. Grab samples taken during the year returned a series of high grades (including 20 g/t Au). Surface mapping has delineated several high priority quartz vein structures which will form the basis of the initial exploration drilling campaign in 2022.
Regional exploration work such as mapping, structural modeling, geochemical soil, stream sampling and geophysical surveys was conducted in 2021 and the results of these efforts will form the priority targets for follow-up exploration programs in 2022.
| p. 7 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
|
Kinross Gold Corporation |
| 25 York Street, 17th Floor | |
| Toronto, ON Canada M5J 2V5 |
Kavralyanskaya (Kosoy and Gorniy targets) significant down-hole drill intercepts
| Hole ID | From | To |
Interval (m) |
Au (g/t) |
Ag (g/t) |
AuEq | Target |
| KAV21-029 | 40.6 | 41.6 | 1.0 | 11.00 | 181.38 | 13.42 | Kosoy |
| KAV21-026 | 43.3 | 44.3 | 1.0 | 10.18 | 135.36 | 11.98 | Kosoy |
| KAV21-030 | 8.8 | 9.8 | 1.0 | 6.88 | 54.74 | 7.61 | Kosoy |
| KAV21-026 | 44.3 | 45.3 | 1.0 | 5.94 | 76.26 | 6.96 | Kosoy |
| KAV21-059 | 67.4 | 68.3 | 0.9 | 5.68 | 92.50 | 6.91 | Kosoy |
| KAV21-009 | 50.8 | 51.8 | 1.0 | 3.96 | 2.86 | 4.00 | Gorniy |
| KAV21-030 | 126.6 | 127.8 | 1.2 | 2.98 | 54.78 | 3.71 | Kosoy |
| KAV21-016 | 38.3 | 39.0 | 0.7 | 5.04 | 117.64 | 6.61 | Kosoy |
| KAV21-012 | 90.4 | 90.9 | 0.5 | 5.82 | 17.18 | 6.05 | Gorniy |
For full drill results and explanatory notes, see Appendix B. Ratio for AuEq is 75:1 Ag:Au
Russia - Chulbatkan
Brownfields exploration activities ramped-up in 2021 and expanded outwards from the main Udinsk deposit area. During 2021, approximately 32,000 metres of drilling was completed in 84 holes. The focus was drill testing approximately six kilometres of strike length along the Chulbatsky fault system to the northeast of the Udinsk deposit.
Drill testing to the southwest discovered the Taimen target, which has returned significant results, including:
| · | UDK_244 – 34.5 metres @ 0.67 g/t Au; |
| · | UDK_263 – 37 metres @ 1.27 g/t Au; and |
| · | UDK_266 – 24.4 metres @ 1.17 g/t Au. |
(See Appendix B for full drill results)
To date, significant intercepts have been defined over a strike length of approximately 700 metres which are within 2.5 kilometres of the Udinsk deposit, near surface, and at least partially oxidized. The Taimen target hosts a 40-50 metre wide fault zone notable for intense deformation, texturally destructive alteration and similar geometry to the main Chulbatsky fault trend, steeply dipping to the northwest. The Taimen zone remains sparsely drilled and is open along strike and at depth. Drill permitting for the Mt. Chulbat target, a bismuth super-cluster, was received in Q4 2021 and access roads are currently being constructed to drill test this key exploration target in Q1 2022.
Generative exploration activities also focused on completing surface geochemical soil sampling over the 450 square kilometre license package and advancing geophysical surveys. Surface results have highlighted several new target areas, including a geochemical anomaly that is located approximately 5 kilometres southwest of the Udinsk deposit, which is expected to be a focus area in the 2022 field season. Systematic target identification surveys covering the remaining prospective areas of the large license package will continue in 2022 and are expected to bolster the already extensive target pipeline.
| p. 8 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
|
Kinross Gold Corporation |
| 25 York Street, 17th Floor | |
| Toronto, ON Canada M5J 2V5 |
Udinsk significant down-hole drill intercepts
| Hole ID | From | To |
Interval (m) |
Au (g/t) |
Target |
| UGC0225 | 0 | 54 | 54 | 4.25 | Pit |
| UGC0038 | 4 | 42 | 38 | 5.23 | Pit |
| UGC0198 | 0 | 54 | 54 | 3.13 | Pit |
| UGC0202 | 3 | 54 | 51 | 3.32 | Pit |
| UGC0203 | 0 | 54 | 54 | 3.09 | Pit |
| UGC0004 | 0 | 40 | 40 | 4.12 | Pit |
| UGC0039 | 7 | 41 | 34 | 4.78 | Pit |
| UGC0234 | 0 | 48 | 48 | 3.39 | Pit |
| UGC0253 | 0 | 46 | 46 | 3.49 | Pit |
For full drill results and explanatory notes, see Appendix B
| Chulbatkan Mineral Reserve and Mineral Resource estimates1,2 | |||
|
2020 (Au koz) |
Exploration & (Au koz) |
2021 (Au koz) | |
| Proven and Probable Reserves | - | 2,964 | 2,964 |
| Measured and Indicated Resources | 4,167 | (2,887) | 1,280 |
| Inferred Resources | 173 | (70) | 103 |
Round Mountain
A total of 10,000 metres of drilling was completed in four target areas in 2021: Phase X, Gold Hill, Kelsey Creek and North Wall. Phase X drilling confirmed continuity of several structural domains which control the geometry of the epithermal mineralization, and mineralization beyond the current resource pit. Encouraging drilling results included:
· D-1156 – 20.7 metres @ 12.12 g/t Au, which was located high in the system along a sub-vertical structure cutting the strongly welded tuff;
· D-1154 – 55 metres @ 6.9 g/t Au, which was within the deeper poorly welded tuff; and
· D-1158 – 3.4 metres @ 4.18 g/t Au, which was from the distal strike extent of several zones.
(See Appendix B for full drill results)
Gold Hill drilling documented a new vein discovery (with drill results that included D-1160 – 3.3 metres @ 7.42 g/t Au), under thick post-mineral cover, located over 300 metres from the current resource. Follow-up drilling confirmed a 230 metre dip and 100 metre strike extent in a 1.3 kilometre untested structural corridor. In addition, drilling confirmed extensions of other known veins (with drill results that included D-1161 3.46 metres @ 22.96 g/t Au), and tested two additional target concepts in the area.
The 2022 Round Mountain exploration program will continue to test new vein zones and extensions at Gold Hill, with the goal of building a mineral resource estimate. The Phase X program will test critical extensions and upside potential, with near-mine and regional exploration work continuing in 2022.
| p. 9 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
|
Kinross Gold Corporation |
| 25 York Street, 17th Floor | |
| Toronto, ON Canada M5J 2V5 |
Round Mountain significant down-hole drill intercepts
| Hole ID | From | To | Interval (m) |
True (m) |
Au (g/t) |
Target |
| D-1158 | 557.2 | 560.5 | 3.4 | 3.4 | 4.18 | Phase X |
| D-1156 | 296.3 | 325.5 | 29.2 | 20.7 | 12.12 | Phase X |
| D-1154 | 310.9 | 389.4 | 78.5 | 55.5 | 6.90 | Phase X |
| including | 294.1 | 295.7 | 1.5 | 1.1 | 92.60 | Phase X |
| D-1154 | 294.1 | 297.2 | 3.0 | 2.2 | 47.46 | Phase X |
| D-1139 | 490.4 | 551.4 | 61.0 | 52.8 | 3.38 | Phase X |
| D-1121 | 431.1 | 514.1 | 83.0 | 28.4 | 1.93 | Phase X |
| D-1121 | 328.6 | 422.8 | 94.2 | 32.2 | 2.71 | Phase X |
| D-1120 | 407.2 | 419.5 | 12.3 | 2.3 | 21.44 | Gold Hill |
| D-1161 | 492.3 | 496.3 | 4.0 | 3.5 | 22.96 | Gold Hill |
For full drill results and explanatory notes, see Appendix B.
Bald Mountain
At Bald Mountain, a total of approximately 18,500 metres of drilling was completed. The focus for 2021 was to drill test as many identified targets as possible within the large land package (North, Central and South). At year-end, 15 of these targets were drilled and interpreted, with the key North Point (target southeast of Top) and Duke targets marked for the next phase of drill testing. In addition, the Zed-Williams, Wino and Top UG targets have been upgraded to advanced exploration stage due to the assays and intercepts received during 2021. The West Yankee and South Yankee targets advanced to drilling testing, while the Dueces target will advance to drill testing in early 2022.
Zed-Williams is a target southeast of the previously mined Numbers pits within the intrusive related Bida trend. A series of encouraging results were received during 2021 including:
· ZW21-007 62.5m @ 0.41 g/t Au;
· ZWD21-003 32m @ 0.4g/t Au; and
· ZW21-009 46m @ 0.46 g/t Au.
In 2021, geotechnical drilling into the Top underground potential mineral resource area returned grades higher than previously anticipated including:
· TD21-001, 36.9m @ 6.2 g/t Au (Incl. 18.1 @ 10.6 g/t Au); and
· TD21-004; 112.9m @1.6 g/t Au.
The 2022 exploration programs will focus on testing targets with the highest potential to deliver a near-surface mineral resource estimate (Zed-Williams, Wino, North Point, Dueces, South and West Yankee, and Duke), as well as build volume for the high-grade Top underground resource potential.
| p. 10 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
|
Kinross Gold Corporation |
| 25 York Street, 17th Floor | |
| Toronto, ON Canada M5J 2V5 |
Bald Mountain significant down-hole drill intercepts
| Hole ID | From | To | Interval (m) |
Au (g/t) |
Target |
| ZW21-007 | 50.3 | 112.8 | 62.5 | 0.41 | Zed Williams |
| WP21-009 | 143.3 | 190.5 | 47.2 | 1.2 | Royale |
| WP21-002 | 164.6 | 222.5 | 57.9 | 0.71 | Duke Central |
| TD21-004 | 222.5 | 335.4 | 112.9 | 1.58 | Top Geotech |
| TD21-003 | 126.2 | 287.7 | 161.5 | 0.95 | Top Geotech |
| TD21-002 | 187.1 | 247.3 | 60.2 | 1.36 | Top Geotech |
| TD21-001 | 269.4 | 287.6 | 18.1 | 11.65 | Top Geotech |
| Includes | 250.7 | 287.6 | 36.9 | 6.20 | Top Geotech |
| NP21-002 | 3.0 | 82.3 | 79.2 | 0.40 | North Point |
| NA21-014 | 213.4 | 256.0 | 42.7 | 1.15 | Wino |
Alaska
Exploration efforts focused on the Gil-Sourdough area, located 13 kilometres east of Fort Knox. In addition, drilling tested mineralization under the Fort Knox pit east ramp, where shallow-dipping high-grade structures were interpreted. A small exploration program at Fort Knox Phase 9 West was carried out to test the continuity of high-grade structures. A total of approximately 5,700 metres of drilling was completed in 2021.
At Gil-Sourdough, most of the drilling was conducted with the goal of converting inferred mineral resources to indicated mineral resources. An area marked for a planned waste dump was also drilled to determine if any resource estimates could be established. While most assay results are pending, geologic logging shows narrow cross-cutting quartz veins with arsenopyrite and quartz-sericite.
At Manh Choh, favorable geology and pathfinder geochemistry was documented at the East, Ridgeline, South, Seven O’clock and Two O’clock targets. Further drill testing is currently planned for 2022 at the East, Discovery, and Ridgeline targets. Additionally, extensive regional reconnaissance is planned for the greater Tetlin lease area.
In 2022, exploration will focus on testing deep, higher grade ore-shear extensions beyond Fort Knox Phase 9 and converting inferred resources at the Gil-Sourdough to indicated resources. Within the Fairbanks District, exploration will test early-stage targets developed from gravity survey data.
| p. 11 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
|
Kinross Gold Corporation |
| 25 York Street, 17th Floor | |
| Toronto, ON Canada M5J 2V5 |
Fort Knox significant down-hole drill intercepts
| Hole ID | From | To | Interval (m) |
Au (g/t) |
Target |
| FFC21-1830 | 393.2 | 399.3 | 6.1 | 9.67 | Fort Knox - NWB |
| Including | 393.2 | 394.7 | 1.5 | 38.11 | Fort Knox - NWB |
| FFC21-1835 | 495.3 | 507.5 | 12.2 | 6.13 | Fort Knox - NWB |
| Including | 501.4 | 506 | 4.6 | 15.76 | Fort Knox - NWB |
| TET21468 | 34.6 | 44.7 | 10.1 | 71.48 | Manh Choh - Infill |
| TET21483 | 25.3 | 33 | 7.7 | 36.45 | Manh Choh - Infill |
| TET21488 | 167.5 | 197.2 | 29.7 | 4.85 | Manh Choh - Infill |
| TET21489 | 106.7 | 120 | 13.3 | 28.67 | Manh Choh - Infill |
| TET21493 | 0 | 16.6 | 16.6 | 29.09 | Manh Choh - Infill |
| TET21495 | 38.6 | 56.5 | 17.9 | 12.68 | Manh Choh - Infill |
| TET21496 | 31.4 | 35.9 | 4.5 | 49.69 | Manh Choh - Infill |
| TET21497 | 0 | 15.7 | 15.7 | 16.94 | Manh Choh - Infill |
| TET21504 | 135 | 148.7 | 13.7 | 37.84 | Manh Choh - Infill |
For full drill results and explanatory notes, see Appendix B.
Curlew Basin Exploration (CBX) Project
The CBX program focused on areas around the historic K2 mine, which is located approximately 35 kilometres north of the Kettle River mill. In Q3 2021, the new underground exploration drifts were completed and underground drilling commenced, leading to the exposure of four new 1.5-6 metre veins, at 5.74 g/t Au.
Underground drilling of approximately 2,200 metres in 2021 extended multiple veins by 30-100 metres along strike at Stealth and Galaxie (2.1 metres @ 10.59g/t Au). In addition, mineralization indicators were intersected 300 metres south of the K5 resource, with assays still pending. The underground drill program currently has a technical success rate of 84%, which is the rate drilling intersects expected features at the predicted depths.
Surface drilling in the broader Curlew district tested nine target areas and completed approximately 8,800 metres of drilling, providing multiple vein extensions at Marlin (2.4 metres @ 14.92 g/t Au), and North Kettle (2.3 metres @ 4.54 g/t Au). In addition, proof-of-concept drilling documented mineralization indicators at significant distances from known resource at West Basin and Viper, approximately 240 and 365 metres from nearest drilling, respectively.
In 2022, drilling at CBX will focus on the goal of making a significant new vein-zone discovery. A surface drill program will continue to test additional targets in the larger system, as prevalent indicators exist over a 6.5 square kilometre area.
Curlew Basin Project significant down-hole drill intercepts
| Hole ID | From | To | Interval (m) | True Width (m) |
Au (g/t) |
Target |
| 1055 | 125.4 | 128.2 | 2.8 | 2.3 | 14.40 | Marlin/K2 Deep |
| includes | 125.4 | 127.5 | 2.2 | 1.8 | 17.41 | Marlin/K2 Deep |
| 1063 | 40.4 | 50.2 | 9.8 | 5.4 | 7.00 | Firebird/EVP/Sonar |
| 1063 | 59.4 | 64.9 | 5.5 | 3.9 | 4.70 | Firebird/EVP/Sonar |
| 1065 | 57.2 | 64.0 | 6.8 | 2.7 | 8.47 | Firebird/EVP/Sonar |
| 1074 | 257.6 | 260.0 | 2.4 | 1.2 | 14.92 | Marlin |
| 1100 | 33.5 | 36.0 | 2.4 | 2.1 | 10.59 | Stealth/Galaxie/Emanuel Crk/K5 |
| 1100 | 60.6 | 71.0 | 10.5 | 6.0 | 5.74 | Stealth/Galaxie/Emanuel Crk/K5 |
For full drill results and explanatory notes, see Appendix B.
| p. 12 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
|
Kinross Gold Corporation |
| 25 York Street, 17th Floor | |
| Toronto, ON Canada M5J 2V5 |
Chirano
A total of 40,600 metres of drilling was completed in 2021 at Chirano as near-mine exploration activities and infill drilling continued to focus on resource conversion and mine life extension. The site added 400 Au koz. of measured and indicated resources, which has the potential to be upgraded to mineral reserves in 2022 and 2023. Chirano extended its estimated mine life by one year to 2026.
The Obra underground exploration decline was completed in Q3 2021, after which 30 holes were drilled. All these holes returned encouraging results, confirming the interpreted high-grade mineralized shoot plunging to the north (including grades higher than 3 g/t Au), which has further upside potential, and a mineralized shoot remaining open down plunge. Drilling also highlighted the potential of mineralization down dip with the deepest hole drilled in 2021 from underground returning 13.3 metres @ 7.61g/t Au (true width), including 6.65 metres @ 12.73 g/t Au.
At Akwaaba, drilling continued to focus on shoot extensions below the reserve base. Results to date have defined moderate to high-grade zones that indicate northerly plunge at depth, demonstrating gold mineralization extension at depth below 1,300 metres.
Chirano significant down-hole drill intercepts
| Hole ID | From | To | Interval (m) |
True (m) |
Au (g/t) | Target |
| CHDD3123UG | 332.0 | 333.0 | 1.1 | 1.00 | 209.00 | Suraw |
| CHDD3115UG | 111.2 | 263.3 | 152.1 | 70.0 | 2.6 | Obra |
| Including | 184.1 | 262.2 | 78.1 | 35.0 | 3.2 | Obra |
| CHDD3170UG | 271.3 | 308.0 | 36.8 | 20.1 | 5.6 | Obra |
| Including | 274.0 | 296.1 | 22.1 | 12.1 | 7.5 | Obra |
| CHDD3174UG | 295.0 | 348.0 | 53.0 | 34.6 | 2.9 | Obra |
| Including | 295.0 | 319.0 | 24.0 | 15.6 | 5.3 | Obra |
| CHDD3183UG | 327.0 | 357.0 | 30.0 | 13.3 | 7.6 | Obra |
| Including | 338.0 | 353.0 | 15.0 | 6.7 | 12.7 | Obra |
| CHDD3122UG | 258.0 | 298.0 | 40.0 | 22.5 | 4.3 | Akwaaba |
| Including | 269.8 | 297.0 | 27.3 | 15.3 | 5.6 | Akwaaba |
For full drill results and explanatory notes, see Appendix B.
| Chirano Mineral Reserve and Mineral Resource estimates1,2 | ||||
|
2020 (Au koz) |
Depletion (Au koz) |
Exploration & (Au koz) |
2021 (Au koz) | |
| Proven and Probable Reserves | 974 | (143) | 59 | 891 |
| Measured and Indicated Resources | 628 | (4) | 396 | 1,021 |
| Inferred Resources | 376 | - | (41) | 335 |
| p. 13 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
|
Kinross Gold Corporation |
| 25 York Street, 17th Floor | |
| Toronto, ON Canada M5J 2V5 |
Greenfields exploration update
The greenfields exploration program in 2021 focused on targets in Nevada, the Abitibi region in Quebec and Ontario, Manitoba, areas of the Russian Far East, and northern Finland’s greenstone belts. Approximately 25,600 metres of drilling was completed on greenfields projects.
Both joint venture (JV) projects and projects in 100%-owned Kinross claims were explored in North America. Kinross and its JV partners undertook geochemical sampling, ground and airborne geophysical surveys and drilling programs. At several projects, exploration work identified indications of mineralization and generated prospective targets, with first and second phase drilling programs completed in 2021. New opportunities in Nevada, Ontario, Manitoba, Far East Russia and Finland were identified by the Company and its JV partners, and these are being considered for potential drilling programs in 2022.
High gold grades were encountered in shear hosted lode deposits in Canada at the Van Horne JV property in Ontario, and in Snow Lake, Manitoba, where Kinross expanded its exploration land position. High gold and silver grades were also encountered at projects in Nevada, where exploration is focused on epithermal and Carlin-style deposits, with exploration work expected to continue in 2022 after encouraging results. Kinross also explores for epithermal and lode gold in certain European countries, as well as the Russian Far East.
The focus of Kinross’ greenfields exploration strategy continues to be identifying strategic investments and partnerships with high-quality junior exploration companies targeting high-margin deposits and opportunities. Kinross also focuses on fostering relationships with management teams that have a successful track record of discovery and maintaining a solid pipeline of quality targets that demonstrate scope and scale for significant discovery.
| p. 14 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
|
Kinross Gold Corporation |
| 25 York Street, 17th Floor | |
| Toronto, ON Canada M5J 2V5 |
Conference call details
Kinross will hold a conference call and audio webcast on Thursday, February 17, 2022 at 8 a.m. ET to discuss the Company’s Q4 and year-end 2021 results and this news release, followed by a question-and-answer session. To access the call, please dial:
Canada & US toll-free – +1 (833) 968-2237; Passcode: 6090916
Outside of Canada & US – +1 (825) 312-2059; Passcode: 6090916
Replay (available up to 14 days after the call):
Canada & US toll-free – +1 (800) 585-8367; Passcode: 6090916
Outside of Canada & US – +1 (416) 621-4642; Passcode: 6090916
You may also access the conference call on a listen-only basis via webcast at our website www.kinross.com. The audio webcast will be archived on www.kinross.com.
This release should be read in conjunction with Kinross’ 2021 year-end Financial Statements and Management’s Discussion and Analysis report at www.kinross.com. Kinross’ 2021 year-end Financial Statements and Management’s Discussion and Analysis have been filed with Canadian securities regulators (available at www.sedar.com) and furnished with the U.S. Securities and Exchange Commission (available at www.sec.gov). Kinross shareholders may obtain a copy of the financial statements free of charge upon request to the Company.
About Kinross Gold Corporation
Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Russia, Mauritania, Chile and Ghana. Our focus is on delivering value based on the core principles of operational excellence, balance sheet strength, disciplined growth and responsible mining. Kinross maintains listings on the Toronto Stock Exchange (symbol:K) and the New York Stock Exchange (symbol:KGC).
Media Contact
Louie Diaz
Vice-President, Corporate Communications
phone: 416-369-6469
louie.diaz@kinross.com
Investor Relations Contact
Chris Lichtenheldt
Vice-President, Investor Relations
phone: 416-365-2761
chris.lichtenheldt@kinross.com
| p. 15 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
 |
Kinross Gold Corporation
25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
APPENDIX A
Figure 1: Kupol Synergy Zone (KSP) of Influence map
| p. 16 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
Kinross Gold Corporation
25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
Refer to Appendix B for detailed drill results, available at: https://www.kinross.com/Exploration-drill-results-Appendix-B-Q4-YE-2021
Figure 2: Arykvaam cross-section (located in the Kayenmyvaam license in the KSP)
| p. 17 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
Kinross Gold Corporation
25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
Figure 3: Round Mountain Phase X
In 2022, Kinross is budgeting $16 million for the construction of a drift for underground exploration drilling at Phase X.
| p. 18 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
Kinross Gold Corporation
25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
Figure 4: Round Mountain and Gold Hill map
New vein discovery at Gold Hill, which is approximately 7 km north of Round Mountain.
| p. 19 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
Kinross Gold Corporation
25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
Figure 5: Chulbatkan map
| p. 20 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
|
Kinross Gold Corporation |
| 25 York Street, 17th Floor | |
| Toronto, ON Canada M5J 2V5 |
2021 Annual Mineral Reserve and Resource Statement
Proven and Probable Mineral Reserves
| MINERAL RESERVE AND MINERAL RESOURCE STATEMENT | GOLD | |||||||||||
| PROVEN AND PROBABLE MINERAL RESERVES (1,2,3,4,5,6) | ||||||||||||
| Kinross Gold Corporation's Share at December 31, 2021 | ||||||||||||
| Property | Location | Kinross | Proven | Probable | Proven and Probable | |||||||
| Interest | Tonnes | Grade | Ounces | Tonnes | Grade | Ounces | Tonnes | Grade | Ounces | |||
| (%) | (kt) | (g/t) | (koz) | (kt) | (g/t) | (koz) | (kt) | (g/t) | (koz) | |||
| NORTH AMERICA | ||||||||||||
| Bald Mountain | USA | 100.0% | - | - | - | 40,980 | 0.6 | 798 | 40,980 | 0.6 | 798 | |
| Fort Knox | USA | 100.0% | 34,810 | 0.3 | 375 | 196,575 | 0.3 | 2,092 | 231,385 | 0.3 | 2,467 | |
| Round Mountain | 7 | USA | 100.0% | 6,169 | 0.3 | 61 | 128,609 | 0.7 | 2,976 | 134,778 | 0.7 | 3,037 |
| SUBTOTAL | 40,979 | 0.3 | 436 | 366,164 | 0.5 | 5,866 | 407,143 | 0.5 | 6,302 | |||
| SOUTH AMERICA | ||||||||||||
| La Coipa | 8 | Chile | 100.0% | 448 | 0.6 | 8 | 17,560 | 1.6 | 890 | 18,008 | 1.6 | 898 |
| Lobo-Marte | Chile | 100.0% | - | - | - | 160,702 | 1.3 | 6,733 | 160,702 | 1.3 | 6,733 | |
| Paracatu | Brazil | 100.0% | 466,811 | 0.4 | 6,499 | 70,055 | 0.3 | 774 | 536,866 | 0.4 | 7,273 | |
| SUBTOTAL | 467,259 | 0.4 | 6,507 | 248,317 | 1.1 | 8,397 | 715,576 | 0.6 | 14,904 | |||
| AFRICA | ||||||||||||
| Chirano | Ghana | 90.0% | 5,040 | 1.5 | 244 | 9,144 | 2.2 | 646 | 14,184 | 2.0 | 890 | |
| Tasiast | Mauritania | 100.0% | 48,563 | 1.3 | 1,961 | 63,910 | 2.2 | 4,443 | 112,473 | 1.8 | 6,404 | |
| SUBTOTAL | 53,603 | 1.3 | 2,205 | 73,054 | 2.2 | 5,089 | 126,657 | 1.8 | 7,294 | |||
| RUSSIA | ||||||||||||
| Chulbatkan | Russia | 100.0% | - | - | - | 56,497 | 1.6 | 2,964 | 56,497 | 1.6 | 2,964 | |
| Dvoinoye | Russia | 100.0% | 813 | 3.5 | 91 | 149 | 11.7 | 56 | 962 | 4.7 | 147 | |
| Kupol | Russia | 100.0% | 776 | 5.8 | 144 | 4,965 | 5.6 | 894 | 5,741 | 5.6 | 1,038 | |
| SUBTOTAL | 1,589 | 4.6 | 235 | 61,611 | 2.0 | 3,914 | 63,200 | 2.0 | 4,149 | |||
| TOTAL GOLD | 563,430 | 0.5 | 9,383 | 749,146 | 1.0 | 23,266 | 1,312,576 | 0.8 | 32,649 | |||
| MINERAL RESERVE AND MINERAL RESOURCE STATEMENT | SILVER | |||||||||||
| PROVEN AND PROBABLE MINERAL RESERVES (1,2,3,4,5,6) | ||||||||||||
| Kinross Gold Corporation's Share at December 31, 2021 | ||||||||||||
| Property | Location | Kinross | Proven | Probable | Proven and Probable | |||||||
| Interest | Tonnes | Grade | Ounces | Tonnes | Grade | Ounces | Tonnes | Grade | Ounces | |||
| (%) | (kt) | (g/t) | (koz) | (kt) | (g/t) | (koz) | (kt) | (g/t) | (koz) | |||
| NORTH AMERICA | ||||||||||||
| Round Mountain | 7 | USA | 100.0% | - | - | - | 5,628 | 6.3 | 1,146 | 5,628 | 6.3 | 1,146 |
| SUBTOTAL | - | - | - | 5,628 | 6.3 | 1,146 | 5,628 | 6.3 | 1,146 | |||
| SOUTH AMERICA | ||||||||||||
| La Coipa | 8 | Chile | 100.0% | 448 | 50.4 | 725 | 17,560 | 72.6 | 41,003 | 18,008 | 72.1 | 41,728 |
| SUBTOTAL | 448 | 50.4 | 725 | 17,560 | 72.6 | 41,003 | 18,008 | 72.1 | 41,728 | |||
| RUSSIA | ||||||||||||
| Dvoinoye | Russia | 100.0% | 813 | 7.2 | 188 | 149 | 33.4 | 160 | 962 | 11.3 | 348 | |
| Kupol | Russia | 100.0% | 776 | 75.1 | 1,874 | 4,965 | 79.7 | 12,723 | 5,741 | 79.1 | 14,597 | |
| SUBTOTAL | 1,589 | 40.3 | 2,062 | 5,114 | 78.4 | 12,883 | 6,703 | 69.3 | 14,945 | |||
| TOTAL SILVER | 2,037 | 42.6 | 2,787 | 28,302 | 60.5 | 55,032 | 30,339 | 59.3 | 57,819 | |||
See page 24 of this news release for details of the footnotes referenced within the table above.
| p. 21 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
|
Kinross Gold Corporation |
| 25 York Street, 17th Floor | |
| Toronto, ON Canada M5J 2V5 |
Measured and Indicated Mineral Resources
| MINERAL RESERVE AND MINERAL RESOURCE STATEMENT | GOLD | |||||||||||
| MEASURED AND INDICATED MINERAL RESOURCES (EXCLUDES PROVEN AND PROBABLE MINERAL RESERVES) (2,3,4,5,6,9,10,11) | ||||||||||||
| Kinross Gold Corporation's Share at December 31, 2021 | ||||||||||||
| Property | Location | Kinross | Measured | Indicated | Measured and Indicated | |||||||
| Interest | Tonnes | Grade | Ounces | Tonnes | Grade | Ounces | Tonnes | Grade | Ounces | |||
| (%) | (kt) | (g/t) | (koz) | (kt) | (g/t) | (koz) | (kt) | (g/t) | (koz) | |||
| NORTH AMERICA | ||||||||||||
| Bald Mountain | USA | 100.0% | 9,150 | 0.8 | 233 | 191,375 | 0.5 | 3,359 | 200,525 | 0.6 | 3,592 | |
| Fort Knox | USA | 100.0% | 7,685 | 0.3 | 77 | 168,931 | 0.3 | 1,600 | 176,616 | 0.3 | 1,677 | |
| Kettle River | USA | 100.0% | - | - | - | 1,133 | 6.5 | 236 | 1,133 | 6.5 | 236 | |
| Manh Choh | USA | 70.0% | 331 | 6.4 | 68 | 6,110 | 4.0 | 778 | 6,441 | 4.1 | 846 | |
| Round Mountain | 7 | USA | 100.0% | - | - | - | 137,974 | 0.7 | 2,989 | 137,974 | 0.7 | 2,989 |
| SUBTOTAL | 17,166 | 0.7 | 378 | 505,523 | 0.6 | 8,962 | 522,689 | 0.6 | 9,340 | |||
| SOUTH AMERICA | ||||||||||||
| La Coipa | 8 | Chile | 100.0% | 6,136 | 1.7 | 344 | 22,045 | 1.5 | 1,068 | 28,181 | 1.6 | 1,412 |
| Lobo-Marte | Chile | 100.0% | - | - | - | 99,440 | 0.7 | 2,366 | 99,440 | 0.7 | 2,366 | |
| Maricunga | Chile | 100.0% | 35,555 | 0.8 | 905 | 312,171 | 0.6 | 6,166 | 347,726 | 0.6 | 7,071 | |
| Paracatu | Brazil | 100.0% | 138,606 | 0.3 | 1,225 | 170,464 | 0.3 | 1,749 | 309,070 | 0.3 | 2,974 | |
| SUBTOTAL | 180,297 | 0.4 | 2,474 | 604,120 | 0.6 | 11,349 | 784,417 | 0.5 | 13,823 | |||
| AFRICA | ||||||||||||
| Chirano | Ghana | 90.0% | 8,285 | 1.4 | 380 | 17,005 | 1.2 | 641 | 25,290 | 1.3 | 1,021 | |
| Tasiast | Mauritania | 100.0% | 8,466 | 1.0 | 279 | 61,318 | 1.2 | 2,309 | 69,784 | 1.2 | 2,588 | |
| SUBTOTAL | 16,751 | 1.2 | 659 | 78,323 | 1.2 | 2,950 | 95,074 | 1.2 | 3,609 | |||
| RUSSIA | ||||||||||||
| Chulbatkan | Russia | 100.0% | - | - | - | 43,373 | 0.9 | 1,280 | 43,373 | 0.9 | 1,280 | |
| Dvoinoye | Russia | 100.0% | 3 | 5.9 | 1 | 57 | 10.4 | 19 | 60 | 10.1 | 20 | |
| Kupol | Russia | 100.0% | 259 | 9.9 | 83 | 1,460 | 7.7 | 362 | 1,719 | 8.0 | 445 | |
| SUBTOTAL | 262 | 9.9 | 84 | 44,890 | 1.2 | 1,661 | 45,152 | 1.2 | 1,745 | |||
| TOTAL GOLD | 214,476 | 0.5 | 3,595 | 1,232,856 | 0.6 | 24,922 | 1,447,332 | 0.6 | 28,517 | |||
| MINERAL RESERVE AND MINERAL RESOURCE STATEMENT | SILVER | |||||||||||
| MEASURED AND INDICATED MINERAL RESOURCES (EXCLUDES PROVEN AND PROBABLE MINERAL RESERVES) (2,3,4,5,6,9,10,11) | ||||||||||||
| Kinross Gold Corporation's Share at December 31, 2021 | ||||||||||||
| Property | Location | Kinross | Measured | Indicated | Measured and Indicated | |||||||
| Interest | Tonnes | Grade | Ounces | Tonnes | Grade | Ounces | Tonnes | Grade | Ounces | |||
| (%) | (kt) | (g/t) | (koz) | (kt) | (g/t) | (koz) | (kt) | (g/t) | (koz) | |||
| NORTH AMERICA | ||||||||||||
| Manh Choh | USA | 70.0% | 331 | 16.7 | 178 | 6,110 | 14.1 | 2,762 | 6,441 | 14.2 | 2,940 | |
| Round Mountain | 7 | USA | 100.0% | - | - | - | 4,734 | 8.3 | 1,262 | 4,734 | 8.3 | 1,262 |
| SUBTOTAL | 331 | 16.7 | 178 | 10,844 | 11.5 | 4,024 | 11,175 | 11.7 | 4,202 | |||
| SOUTH AMERICA | ||||||||||||
| La Coipa | 8 | Chile | 100.0% | 6,136 | 30.7 | 6,060 | 22,045 | 41.2 | 29,231 | 28,181 | 39.0 | 35,291 |
| SUBTOTAL | 6,136 | 30.7 | 6,060 | 22,045 | 41.2 | 29,231 | 28,181 | 39.0 | 35,291 | |||
| RUSSIA | ||||||||||||
| Dvoinoye | Russia | 100.0% | 3 | 6.1 | 1 | 57 | 21.2 | 39 | 60 | 20.3 | 40 | |
| Kupol | Russia | 100.0% | 259 | 129.7 | 1,079 | 1,460 | 105.6 | 4,958 | 1,719 | 109.3 | 6,037 | |
| SUBTOTAL | 262 | 128.1 | 1,080 | 1,517 | 102.4 | 4,997 | 1,779 | 106.2 | 6,077 | |||
| TOTAL SILVER | 6,729 | 33.8 | 7,318 | 34,406 | 34.6 | 38,252 | 41,135 | 34.5 | 45,570 | |||
See page 24 of this news release for details of the footnotes referenced within the table above.
| p. 22 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
|
Kinross Gold Corporation |
| 25 York Street, 17th Floor | |
| Toronto, ON Canada M5J 2V5 |
Inferred Mineral Resources
| MINERAL RESERVE AND MINERAL RESOURCE STATEMENT | GOLD | |||||
| INFERRED MINERAL RESOURCES (2,3,4,5,6,9,10,11) | ||||||
| Kinross Gold Corporation's Share at December 31, 2021 | ||||||
| Property | Location | Kinross | Inferred | |||
| Interest | Tonnes | Grade | Ounces | |||
| (%) | (kt) | (g/t) | (koz) | |||
| NORTH AMERICA | ||||||
| Bald Mountain | USA | 100.0% | 45,716 | 0.5 | 669 | |
| Fort Knox | USA | 100.0% | 85,071 | 0.2 | 672 | |
| Kettle River | USA | 100.0% | 1,816 | 6.5 | 378 | |
| Manh Choh | USA | 70.0% | 941 | 2.7 | 81 | |
| Round Mountain | 7 | USA | 100.0% | 84,111 | 0.5 | 1,418 |
| SUBTOTAL | 217,655 | 0.5 | 3,218 | |||
| SOUTH AMERICA | ||||||
| La Coipa | 8 | Chile | 100.0% | 2,923 | 1.2 | 109 |
| Lobo-Marte | Chile | 100.0% | 18,474 | 0.7 | 445 | |
| Maricunga | Chile | 100.0% | 153,276 | 0.6 | 2,782 | |
| Paracatu | Brazil | 100.0% | 75,592 | 0.3 | 817 | |
| SUBTOTAL | 250,265 | 0.5 | 4,153 | |||
| AFRICA | ||||||
| Chirano | Ghana | 90.0% | 5,443 | 1.9 | 335 | |
| Tasiast | Mauritania | 100.0% | 12,678 | 2.4 | 971 | |
| SUBTOTAL | 18,121 | 2.2 | 1,306 | |||
| RUSSIA | ||||||
| Chulbatkan | Russia | 100.0% | 4,473 | 0.7 | 103 | |
| Dvoinoye | Russia | 100.0% | 58 | 24.1 | 45 | |
| Kupol | Russia | 100.0% | 992 | 8.3 | 266 | |
| SUBTOTAL | 5,523 | 2.3 | 414 | |||
| TOTAL GOLD | 491,564 | 0.6 | 9,091 | |||
| MINERAL RESERVE AND MINERAL RESOURCE STATEMENT | SILVER | |||||
| INFERRED MINERAL RESOURCES (2,3,4,5,6,9,10,11) | ||||||
| Kinross Gold Corporation's Share at December 31, 2021 | ||||||
| Property | Location | Kinross | Inferred | |||
| Interest | Tonnes | Grade | Ounces | |||
| (%) | (kt) | (g/t) | (koz) | |||
| NORTH AMERICA | ||||||
| Manh Choh | USA | 70.0% | 941 | 16.1 | 486 | |
| Round Mountain | 7 | USA | 100.0% | 374 | 3.9 | 47 |
| SUBTOTAL | 1,315 | 12.6 | 533 | |||
| SOUTH AMERICA | ||||||
| La Coipa | 8 | Chile | 100.0% | 2,923 | 32.1 | 3,019 |
| SUBTOTAL | 2,923 | 32.1 | 3,019 | |||
| RUSSIA | ||||||
| Dvoinoye | Russia | 100.0% | 58 | 22.7 | 43 | |
| Kupol | Russia | 100.0% | 992 | 116.6 | 3,717 | |
| SUBTOTAL | 1,050 | 111.4 | 3,760 | |||
| TOTAL SILVER | 5,288 | 43.0 | 7,312 | |||
See page 24 of this news release for details of the footnotes referenced within the table above.
| p. 23 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
|
Kinross Gold Corporation |
| 25 York Street, 17th Floor | |
| Toronto, ON Canada M5J 2V5 |
Mineral Reserve and Mineral Resource Statement Notes
(1) Unless otherwise noted, the Company’s mineral reserves are estimated using appropriate cut-off grades based on an assumed gold price of $1,200 per ounce and a silver price of $17.00 per ounce. Mineral reserves are estimated using appropriate process recoveries, operating costs and mine plans that are unique to each property and include estimated allowances for dilution and mining recovery. Mineral reserve estimates are reported in contained units based on Kinross’ interest and are estimated based on the following foreign exchange rates:
Russian Rouble to United States Dollar: 60.00
Chilean Peso to United States Dollar: 725.00
Brazilian Real to United States Dollar: 4.25
Ghanaian Cedi to United States Dollar: 5.50
Mauritanian Ouguiya to United States Dollar: 35.00
(2) The Company’s mineral reserve and mineral resource estimates as at December 31, 2021 are classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) “CIM Definition Standards - For Mineral Resources and Mineral Reserves" adopted by the CIM Council (as amended, the “CIM Definition Standards”) in accordance with the requirements of National Instrument 43-101 “Standards of Disclosure for Mineral Projects" (“NI 43-101”). Mineral reserve and mineral resource estimates reflect the Company's reasonable expectation that all necessary permits and approvals will be obtained and maintained.
(3) Cautionary note to U.S. investors concerning estimates of mineral reserves and mineral resources. These estimates have been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of United States’ securities laws. The terms “mineral reserve”, “proven mineral reserve”, “probable mineral reserve”, “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are Canadian mining terms as defined in accordance with NI 43-101 and the CIM Definition Standards. These definitions differ from the definitions in subpart 1300 of Regulation S-K (“Subpart 1300”), which replaced the United States Securities and Exchange Commission (“SEC”) Industry Guide 7 as part of the SEC’s amendments to its disclosure rules to modernize the mineral property disclosure requirements. These amendments became effective February 25, 2019 and registrants are required to comply with the Subpart 1300 provisions by their first fiscal year beginning on or after January 1, 2021. While the definitions in Subpart 1300 are more similar to the definitions in NI 43-101 and the CIM Definitions Standard than were the Industry Guide 7 provisions due to the adoption in Subpart 1300 of terms describing mineral reserves and mineral resources that are “substantially similar” to the corresponding terms under the CIM Definition Standards, including the SEC now recognizing estimates of “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” and amending its definitions of “proven mineral reserves” and “probable mineral reserves” to be “substantially similar” to the corresponding CIM Definitions, the definitions in Subpart 1300 still differ from the requirements of, and the definitions in, NI 43-101 and the CIM Definition Standards. U.S. investors are cautioned that while the above terms are “substantially similar” to CIM Definitions, there are differences in the definitions in Subpart 1300 and the CIM Definition Standards. Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as “proven mineral reserves”, “probable mineral reserves”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43-101 would be the same had the Company prepared the mineral reserve or mineral resource estimates under the standards set forth in Subpart 1300. U.S. investors are also cautioned that while the SEC recognizes “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under Subpart 1300, investors should not assume that any part or all of the mineralization in these categories will ever be converted into a higher category of mineral resources or into mineral reserves. Mineralization described using these terms has a greater amount of uncertainty as to its existence and feasibility than mineralization that has been characterized as reserves. Accordingly, investors are cautioned not to assume that any measured mineral resources, indicated mineral resources, or inferred mineral resources that the Company reports are or will be economically or legally mineable. Further, “inferred mineral resources” have a greater amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Therefore, U.S. investors are also cautioned not to assume that all or any part of the “inferred mineral resources” exist. Under Canadian securities laws, estimates of “inferred mineral resources” may not form the basis of feasibility or pre-feasibility studies, except in rare cases. As a foreign private issuer that files its annual report on Form 40-F with the SEC pursuant to the multi-jurisdictional disclosure system, the Company is not required to provide disclosure on its mineral properties under the Subpart 1300 provisions and will continue to provide disclosure under NI 43-101 and the CIM Definition Standards. If the Company ceases to be a foreign private issuer or loses its eligibility to file its annual report on Form 40-F pursuant to the multi-jurisdictional disclosure system, then the Company will be subject to reporting pursuant to the Subpart 1300 provisions, which differ from the requirements of NI 43-101 and the CIM Definition Standards.
For the above reasons, the mineral reserve and mineral resource estimates and related information in this AIF may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.
(4) The Company's mineral resource and mineral reserve estimates were prepared under the supervision of and verified by Mr. John Sims, who is a qualified person as defined by NI 43-101. Mr. Sims was an officer of Kinross until December 31, 2020. Mr. Sims remains the Company’s qualified person as an external consultant.
(5) The Company’s normal data verification procedures have been used in collecting, compiling, interpreting and processing the data used to estimate mineral reserves and mineral resources. Independent data verification has not been performed.
(6) Rounding of values to the 000s may result in apparent discrepancies.
(7) Round Mountain refers to the Round Mountain project, which includes the Round Mountain deposit and the Gold Hill deposit. The Round Mountain deposit does not contain silver resources and all silver resources at Round Mountain are contained exclusively within the Gold Hill deposit. Disclosure of gold mineral reserves and mineral resources reflect both the Round Mountain deposit and the Gold Hill deposit. Disclosure of silver mineral reserves and mineral resources reflect only the Gold Hill deposit.
(8) Includes mineral resources and mineral reserves from the Puren deposit in which the Company holds a 65% interest; as well as mineral resources from the Catalina deposit, in which the Company holds a 50% interest.
| p. 24 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
|
Kinross Gold Corporation |
| 25 York Street, 17th Floor | |
| Toronto, ON Canada M5J 2V5 |
(9) Mineral resources are exclusive of mineral reserves.
(10) Unless otherwise noted, the Company’s mineral resources are estimated using appropriate cut-off grades based on a gold price of $1,600 per ounce and a silver price of $20.00 per ounce. Foreign exchange rates for estimating mineral resources were the same as for mineral reserves. The mineral resource estimates for Manh Choh assume a $1,400 per ounce gold price and a $20 per ounce silver price and are based on the 2018 preliminary economic assessment.
(11) Mineral resources that are not mineral reserves do not have to demonstrate economic viability. Mineral resources are subject to infill drilling, permitting, mine planning, mining dilution and recovery losses, among other things, to be converted into mineral reserves. Due to the uncertainty associated with inferred mineral resources, it cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to indicated or measured mineral resources, including as a result of continued exploration.
| p. 25 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
|
Kinross Gold Corporation |
| 25 York Street, 17th Floor | |
| Toronto, ON Canada M5J 2V5 |
Mineral Reserve and Mineral Resource Definitions
A ‘Mineral Resource’ is a concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling.
An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation. An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral Resource and may only be converted to a Probable Mineral Reserve.
A ‘Measured Mineral Resource’ is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning and final evaluation of the economic viability of the deposit. Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points of observation. A Measured Mineral Resource has a higher level of confidence than that applying to either an Indicated Mineral Resource or an Inferred Mineral Resource. It may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve.
A ‘Mineral Reserve’ is the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at Pre-Feasibility or Feasibility level as appropriate that include application of Modifying Factors. Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified. The reference point at which Mineral Reserves are defined, usually the point where the ore is delivered to the processing plant, must be stated. It is important that, in all situations where the reference point is different, such as for a saleable product, a clarifying statement is included to ensure that the reader is fully informed as to what is being reported. The public disclosure of a Mineral Reserve must be demonstrated by a Pre-Feasibility Study or Feasibility Study.
A ‘Probable Mineral Reserve’ is the economically mineable part of an Indicated, and in some circumstances, a Measured Mineral Resource. The confidence in the Modifying Factors applying to a Probable Mineral Reserve is lower than that applying to a Proven Mineral Reserve.
A ‘Proven Mineral Reserve’ is the economically mineable part of a Measured Mineral Resource. A Proven Mineral Reserve implies a high degree of confidence in the Modifying Factors.
| p. 26 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
|
Kinross Gold Corporation |
| 25 York Street, 17th Floor | |
| Toronto, ON Canada M5J 2V5 |
Cautionary statement on forward-looking information
All statements, other than statements of historical fact, contained or incorporated by reference in this news release including, but not limited to, any information as to the future financial or operating performance of Kinross, constitute “forward-looking information” or “forward-looking statements” within the meaning of certain securities laws, including the provisions of the Securities Act (Ontario) and the provisions for “safe harbor” under the United States Private Securities Litigation Reform Act of 1995 and are based on expectations, estimates and projections as of the date of this news release. Forward-looking statements contained in this news release, include, but are not limited to, those under the headings (or headings that include) “Development project highlights”, “Exploration and Mineral Reserves and Resources update”, “CEO Commentary”, “Development Projects”, “Exploration Update” and “Greenfields exploration update”, as well as statements with respect to our guidance for production, planned exploration expenditures; 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 greenhouse gas emissions reduction targets; 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, restarting suspended or disrupted operations; environmental risks and proceedings; and resolution of pending litigation. The words “advance”, “believe”, “continue”, “estimates”, “expects”, “explore”, “forecast”, “future”, “growth”, “goal”, “guidance”, “objective”, “outlook”, “plan”, “potential”, “target” or variations of or similar such words and phrases or statements that certain actions, events or results may, could, should or will be achieved, received or taken, or will occur or result and similar such expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Kinross as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates, models and assumptions of Kinross referenced, contained or incorporated by reference in this news release, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth herein and in our Management’s Discussion and Analysis (“MD&A”) for the year ended December 31, 2021, 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; of the ramp-up of production at the La Coipa project; in each case in a manner consistent with the Company’s expectations; and the successful completion of exploration consistent with the Company’s expectations at the Company’s projects; (3) political and legal developments in any jurisdiction in which the Company operates being consistent with its current expectations including, without limitation, 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) 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; (9) labour and materials costs increasing on a basis consistent with Kinross’ current expectations; (10) 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); (11) 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; (12) access to capital markets, including but not limited to maintaining our current credit ratings consistent with the Company’s current expectations; (13) potential direct or indirect operational impacts resulting from infectious diseases or pandemics such as the ongoing COVID-19 pandemic; (14) 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; (15) changes in national and local government legislation or other government actions, particularly in response to the COVID-19 pandemic; (16) 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, and the ongoing Sunnyside settlement regarding potential liability under the U.S. Comprehensive Environmental Response, Compensation and Liability Act); (17) the impacts of the pit wall issues at Round Mountain being consistent with the Company’s expectations; (18) that the Great Bear Resources acquisition will close in accordance with, and on the timeline contemplated by, the terms and conditions of the relevant agreements, on a basis consistent with our expectations; (19) the anticipated mineralization of the Dixie Project being consistent with expectations and the potential benefits to Kinross from the project and any upside from the Dixie project; and (20) 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
| p. 27 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
|
|
Kinross Gold Corporation |
| 25 York Street, 17th Floor | |
| Toronto, ON Canada M5J 2V5 |
those projected in the forward-looking statements. Such factors include, but are not limited to: the inaccuracy of any of the foregoing assumptions, 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; 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 news release are qualified by this cautionary statement and those made in our other filings with the securities regulators of Canada and the United States including, but not limited to, the cautionary statements made in the “Risk Analysis” section of our MD&A for the year ended December 31, 2021, the Annual Information Form dated March 30, 2021 and the “Cautionary Statement on Forward-Looking Information” in our greenhouse gas emissions news release dated February 16, 2022. These factors are not intended to represent a complete list of the factors that could affect Kinross. Kinross disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.
Other information
Where we say "we", "us", "our", the "Company", or "Kinross" in this presentation, 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 presentation 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.
Source: Kinross Gold Corporation
| p. 28 | Kinross provides update on development projects and full-year 2021 exploration results | www.kinross.com |
Exhibit 99.3
 |
Kinross
Gold Corporation 25 York Street, 17th Floor Toronto, ON, Canada M5J 2V5 |
NEWS RELEASE
Kinross declares quarterly dividend
Toronto, Ontario, February 16, 2022 – Kinross Gold Corporation (TSX:K; NYSE:KGC) (the “Company”) today announced that the Company’s Board of Directors has declared a dividend of US$0.03 per common share for the fourth quarter of 2021.
The dividend is payable on March 24, 2022 to shareholders of record as of the close of business on March 9, 2022. This dividend qualifies as an “eligible dividend” for Canadian income tax purposes while dividends paid to shareholders outside Canada (non-resident investors) will be subject to Canadian non-resident withholding taxes.
About Kinross Gold Corporation
Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Russia, Mauritania, Chile and Ghana. Our focus is on delivering value based on the core principles of operational excellence, balance sheet strength, disciplined growth and responsible mining. Kinross maintains listings on the Toronto Stock Exchange (symbol:K) and the New York Stock Exchange (symbol:KGC).
Media Contact
Louie Diaz
Vice-President, Corporate Communications
phone: 416-369-6469
louie.diaz@kinross.com
Investor Relations Contact
Chris Lichtenheldt
Vice-President, Investor Relations
phone: 416-365-2761
chris.lichtenheldt@kinross.com
Source: Kinross Gold Corporation
www.kinross.com
Exhibit 99.4
 |
Kinross Gold Corporation 25 York Street, 17th Floor Toronto, ON Canada M5J 2V5 |
NEWS RELEASE
Kinross announces details of its Climate Change Strategy
Toronto, Ontario, February 16, 2022 – Kinross Gold Corporation (TSX:K; NYSE:KGC) (“Kinross” or the “Company”) is pleased to announce details of its Climate Change Strategy (the “Strategy”) and greenhouse gas (“GHG”) reduction action plan, which includes the Company’s commitment to working towards the goals of the 2015 Paris Agreement.
The Strategy is aligned with Kinross’ previously-announced goal of being a net-zero GHG emissions company by 2050, and has set a target to achieve a 30% reduction in intensity per ounce produced of scope 1 and scope 2 emissions by 20301. As the Company advances its Strategy, it will also work with its suppliers on addressing scope 3 emissions.
Kinross recognises the global importance of climate change and the Company’s responsibility to contribute positively to mitigating its impacts, as well as its significance as a strategic matter to the business. The Climate Change Strategy is in line with Kinross’ values and commitment to sustainable mining, and builds on its strong record in this area.
These commitments are also consistent with the Company’s sustainability policies, and its commitment to ESG, ethical conduct and human rights, and align with the Just Transition framework to ensure that employees’ and communities’ rights and livelihoods are protected as the Company implements its Strategy. The Strategy is structured into the following pillars:
Incorporating energy efficient and renewable energy projects into operations
| · | Over the past decade, the Company has made significant progress in improving the energy efficiencies of its operations, including advancing site-specific projects which have saved approximately 30,000 tonnes in GHG emissions annually. |
| · | The Company is budgeting US$50 million in 2022 for ESG-related capital expenditures, which includes developing a 34 MW solar power plant at Tasiast in Mauritania, and studying building a power line to connect the Udinsk project into the regional grid in Russia, as opposed to self-generating electricity with diesel. |
| · | The Company signed a power purchase agreement for 100% renewable power at the La Coipa project in Chile, and incorporated electric shovels, solar power for the camp, and an ore conveyor system to reduce the use of haul trucks in the Lobo-Marte project plan. |
Partnering with equipment manufacturers and energy suppliers to reduce GHG emissions and energy use
| · | As 90% of the Company’s current scope 1 and scope 2 emissions are from power generation and mine fleets, a significant part of its GHG reduction strategy will include strategic partnerships with equipment manufacturers and energy suppliers. Current initiatives include: |
| o | Entering into an agreement with Komatsu to take an active role in the development of the Zero Emission Haulage Solution, which will target the development of zero-emission haul trucks. |
| o | Supporting research for a new crushing and grinding system that could radically reduce energy use in comminution circuits. |
| · | The Company will continue to work with local energy suppliers on reducing emissions in power generation. In 2020, approximately 36% of electricity used by Kinross operations was sourced from renewable sources from local or country grids. |
1 Kinross is using 2021 as the baseline year as part of its Climate Change Strategy objectives. The data for 2021 is the most recently available information and is being assured by a third party.
| www.kinross.com |
| |
Kinross Gold Corporation 25 York Street, 17th Floor Toronto, ON, Canada M5J 2V5 |
Embedding climate change considerations into strategic business decisions
| · | Kinross will maintain its focus on climate change as a key consideration in its overall business strategy, project development plans, mine life planning and financial analysis. For example, the Company has: |
| o | Acquired two hydroelectric power plants in Brazil with 155 MW rated capacity in 2018 to increase renewable energy use at Paracatu. |
| o | Incorporated ESG considerations into its M&A strategy, including pursuing acquisitions in low-carbon jurisdictions, such as the recent agreement to acquire Great Bear Resources and its Dixie project in Red Lake, Ontario. |
| o | Included the use of a notional market price for carbon in the Company’s financial analysis and decision-making processes. |
Maintaining robust governance and transparent reporting
| · | Kinross’ sustainability governance and reporting will continue to be integral to its Strategy, including: |
| o | Continuing its long history of disclosure on energy use, greenhouse gas emissions and climate-related risks, which date back to the Company’s first submission to the CDP in 2005. |
| o | Reporting in alignment with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), which includes the publication of its first Climate Report in 2021. |
| o | Establishing an ESG Executive Committee that reports to the Senior Leadership Team, and to Kinross’ Board on a quarterly basis, to help further improve sustainability governance. |
Enhancing the business’ resiliency to climate change to mitigate risks
| o | Kinross prioritizes risk management and protecting its operations and overall business success through a dynamic risk management system that includes: |
| o | Commissioning a third-party assessment on climate risks across its global portfolio in 2020. |
| o | Incorporating risks into multi-disciplinary risk management systems at all Kinross sites and enterprise risk management system. |
“Operating responsibly in a manner that is protective of the environment is fundamental to Kinross’ values and business strategy. As part of our commitment to prioritizing sustainability, we acknowledge the global importance of taking action on climate change and creating a long-term plan to mitigate our impacts,” said J. Paul Rollinson, Kinross President and CEO. “Our Climate Change Strategy and goals are not only essential to safeguarding the environment, they are also vital to the long-term success of our business. We will continue building on our position as one of the lowest GHG emitters among our peers to make a tangible contribution to help mitigate climate change.”
In line with Kinross’ commitment to capital discipline, budgetary allocations for projects related to the Climate Change Strategy will be based on an evaluation of their economic viability, in addition to their potential to contribute to the Company’s sustainability goals.
| p. 2 Kinross announces details of its Climate Change Strategy | www.kinross.com |
| |
Kinross Gold Corporation 25 York Street, 17th Floor Toronto, ON, Canada M5J 2V5 |
About Kinross Gold Corporation
Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Russia, Mauritania, Chile and Ghana. Our focus is on delivering value based on the core principles of operational excellence, balance sheet strength, disciplined growth and responsible mining. Kinross maintains listings on the Toronto Stock Exchange (symbol:K) and the New York Stock Exchange (symbol:KGC).
Media Contact
Louie Diaz
Vice-President, Corporate Communications
phone: 416-369-6469
louie.diaz@kinross.com
Investor Relations Contact
Chris Lichtenheldt
Vice-President, Investor Relations
phone: 416-365-2761
chris.lichtenheldt@kinross.com
ESG Contact
Michal Kowalczyk
Vice-President, ESG Strategy
phone: 647-788-4150
michal.kowalczyk@kinross.com
Cautionary statement on forward-looking information
All statements, other than statements of historical fact, contained in this news release, including 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 “safe harbor” provisions under the United States Private Securities Litigation Reform Act of 1995 and are based on the expectations, estimates and projections of management as of the date of this news release, unless otherwise stated. Forward-looking statements contained in this presentation include, without limitation, statements with respect to: the implementation and effectiveness of the Company’s Strategy and GHG reduction action plan; the realization of the Company’s GHG emissions targets; the ability of the Company to successfully incorporation energy efficiencies into its project and operations; the ability of the Company to influence the actions of third parties with respect to improving GHG emissions intensity of suppliers and utilities; the Company’s ability to embed GHG and climate change considerations into all strategic business decisions; and the ability of the Company to achieve its stated reporting and disclosure objectives. The words “expect”, “goal”, “objective”, “plan”, “target”, 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. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. All of the forward-looking statements made in this news release are qualified by this cautionary statement and those made in our other filings with the securities regulators of Canada and the United States including, but not limited to, the cautionary statements made in the “Risk Analysis” section of our MD&A for the year ended December 31, 2021 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.
Source: Kinross Gold Corporation
| p. 3 Kinross announces details of its Climate Change Strategy | www.kinross.com |