|
|
|
|
|
|||
|
|
KINROSS GOLD CORPORATION
|
|||||
Signed:
|
/s/ Sunny Lowe
|
|
|||||
|
|
|
Vice-President, Finance
|
|
|||
February 14, 2018 |
|
|
|||||
|
|
|
|
|
1.
|
DESCRIPTION OF THE BUSINESS
|
Ownership percentage at December 31,
|
||||||||||
Operating Segments
|
Operator
|
Location
|
2017
|
2016
|
||||||
Fort Knox
|
Kinross
|
USA
|
100%
|
|
100%
|
|
||||
Round Mountain
|
Kinross
|
USA
|
50%
|
|
50%
|
|
||||
Bald Mountain
|
Kinross
|
USA
|
100%
|
|
100%
|
|
||||
Kettle River-Buckhorn | Kinross | USA | 100% | 100% | ||||||
Kupol
(a)
|
Kinross
|
Russian Federation
|
100%
|
|
100%
|
|
||||
Paracatu
|
Kinross
|
Brazil
|
100%
|
|
100%
|
|
||||
Maricunga
|
Kinross
|
Chile
|
100%
|
|
100%
|
|
||||
Tasiast
|
Kinross
|
Mauritania
|
100%
|
|
100%
|
|
||||
Chirano
|
Kinross
|
Ghana
|
90%
|
|
90%
|
|
Years ended December 31,
|
2017 vs. 2016
|
2016 vs. 2015
|
||||||||||||||||||||||||||
(in millions, except ounces, per share amounts and
per ounce amounts) |
2017
|
2016
|
2015
|
Change
|
% Change
(e)
|
Change
|
% Change
(e)
|
|||||||||||||||||||||
Operating Highlights
|
||||||||||||||||||||||||||||
Total gold equivalent ounces
(a)
|
||||||||||||||||||||||||||||
Produced
(c)
|
2,698,136
|
2,810,345
|
2,620,262
|
(112,209
|
)
|
(4%)
|
|
190,083
|
7
|
%
|
||||||||||||||||||
Sold
(c)
|
2,621,875
|
2,778,902
|
2,634,867
|
(157,027
|
)
|
(6%)
|
|
144,035
|
5
|
%
|
||||||||||||||||||
Attributable gold equivalent ounces
(a)
|
||||||||||||||||||||||||||||
Produced
(c)
|
2,673,533
|
2,789,150
|
2,594,652
|
(115,617
|
)
|
(4%)
|
|
194,498
|
7
|
%
|
||||||||||||||||||
Sold
(c)
|
2,596,754
|
2,758,306
|
2,608,870
|
(161,552
|
)
|
(6%)
|
|
149,436
|
6
|
%
|
||||||||||||||||||
Financial Highlights
|
||||||||||||||||||||||||||||
Metal sales
|
$
|
3,303.0
|
$
|
3,472.0
|
$
|
3,052.2
|
$
|
(169.0
|
)
|
(5%)
|
|
$
|
419.8
|
14
|
%
|
|||||||||||||
Production cost of sales
|
$
|
1,757.4
|
$
|
1,983.8
|
$
|
1,834.8
|
$
|
(226.4
|
)
|
(11%)
|
|
$
|
149.0
|
8
|
%
|
|||||||||||||
Depreciation, depletion and amortization
|
$
|
819.4
|
$
|
855.0
|
$
|
897.7
|
$
|
(35.6
|
)
|
(4%)
|
|
$
|
(42.7
|
)
|
(5
|
%)
|
||||||||||||
Impairment, net of reversals
|
$
|
21.5
|
$
|
139.6
|
$
|
699.0
|
$
|
(118.1
|
)
|
(85%)
|
|
$
|
(559.4
|
)
|
(80
|
%)
|
||||||||||||
Operating earnings (loss)
|
$
|
336.5
|
$
|
46.3
|
$
|
(742.9
|
)
|
$
|
290.2
|
nm
|
$
|
789.2
|
106
|
%
|
||||||||||||||
Net earnings (loss) attributable to common shareholders
|
$
|
445.4
|
$
|
(104.0
|
)
|
$
|
(984.5
|
)
|
$
|
549.4
|
nm
|
$
|
880.5
|
89
|
%
|
|||||||||||||
Basic earnings (loss) per share attributable to common shareholders
|
$
|
0.36
|
$
|
(0.08
|
)
|
$
|
(0.86
|
)
|
$
|
0.44
|
nm
|
$
|
0.78
|
91
|
%
|
|||||||||||||
Diluted earnings (loss) per share attributable to common shareholders
|
$
|
0.35
|
$
|
(0.08
|
)
|
$
|
(0.86
|
)
|
$
|
0.43
|
nm
|
$
|
0.78
|
91
|
%
|
|||||||||||||
Adjusted net earnings (loss) attributable to common shareholders
(b)
|
$
|
178.7
|
$
|
93.0
|
$
|
(91.0
|
)
|
$
|
85.7
|
92%
|
|
$
|
184.0
|
nm
|
||||||||||||||
Adjusted net earnings (loss) per share
(b)
|
$
|
0.14
|
$
|
0.08
|
$
|
(0.08
|
)
|
$
|
0.06
|
75%
|
|
$
|
0.16
|
nm
|
||||||||||||||
Net cash flow provided from operating activities
|
$
|
951.6
|
$
|
1,099.2
|
$
|
831.6
|
$
|
(147.6
|
)
|
(13%)
|
|
$
|
267.6
|
32
|
%
|
|||||||||||||
Adjusted operating cash flow
(b)
|
$
|
1,166.7
|
$
|
926.7
|
$
|
786.6
|
$
|
240.0
|
26%
|
|
$
|
140.1
|
18
|
%
|
||||||||||||||
Capital expenditures
|
$
|
897.6
|
$
|
633.8
|
$
|
610.0
|
$
|
263.8
|
42%
|
|
$
|
23.8
|
4
|
%
|
||||||||||||||
Average realized gold price per ounce
(d)
|
$
|
1,260
|
$
|
1,249
|
$
|
1,159
|
$
|
11
|
1%
|
|
$
|
90
|
8
|
%
|
||||||||||||||
Consolidated production cost of sales per equivalent ounce
(c)
sold
(b)
|
$
|
670
|
$
|
714
|
$
|
696
|
$
|
(44
|
)
|
(6%)
|
|
$
|
18
|
3
|
%
|
|||||||||||||
Attributable
(a)
production cost of sales per equivalent ounce
(c)
sold
(b)
|
$
|
669
|
$
|
712
|
$
|
696
|
$
|
(43
|
)
|
(6%)
|
|
$
|
16
|
2
|
%
|
|||||||||||||
Attributable
(a)
production cost of sales per ounce sold on a by-product basis
(b)
|
$
|
653
|
$
|
696
|
$
|
684
|
$
|
(43
|
)
|
(6%)
|
|
$
|
12
|
2
|
%
|
|||||||||||||
Attributable
(a)
all-in sustaining cost per ounce sold on a by-product basis
(b)
|
$
|
946
|
$
|
975
|
$
|
971
|
$
|
(29
|
)
|
(3%)
|
|
$
|
4
|
0
|
%
|
|||||||||||||
Attributable
(a)
all-in sustaining cost per equivalent ounce
(c)
sold
(b)
|
$
|
954
|
$
|
984
|
$
|
975
|
$
|
(30
|
)
|
(3%)
|
|
$
|
9
|
1
|
%
|
|||||||||||||
Attributable
(a)
all-in cost per ounce sold on a by-product basis
(b)
|
$
|
1,164
|
$
|
1,073
|
$
|
1,047
|
$
|
91
|
8%
|
|
$
|
26
|
2
|
%
|
||||||||||||||
Attributable
(a)
all-in cost per equivalent ounce
(c)
sold
(b)
|
$
|
1,166
|
$
|
1,079
|
$
|
1,049
|
$
|
87
|
8%
|
|
$
|
30
|
3
|
%
|
||||||||||||||
(a)
|
"Total" includes 100% of Chirano production. "Attributable" includes Kinross' share of Chirano (90%) production.
|
|||||||||||||||||||||||||||
(b)
|
The definition and reconciliation of these non-GAAP financial measures are included in Section 11 of this document.
|
|||||||||||||||||||||||||||
(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 2017 was 73.72:1 (2016 - 72.95:1 and 2015 - 73.92:1).
|
|||||||||||||||||||||||||||
(d)
|
Average realized gold price is a non-GAAP financial measure and is defined in Section 11 of this document.
|
|||||||||||||||||||||||||||
(e)
|
"nm" means not meaningful.
|
2.
|
IMPACT OF KEY ECONOMIC TRENDS
|
3.
|
OUTLOOK
|
4.
|
PROJECT UPDATES AND NEW DEVELOPMENTS
|
5.
|
CONSOLIDATED RESULTS OF OPERATIONS
|
Years ended December 31,
|
2017 vs. 2016
|
2016 vs. 2015
|
||||||||||||||||||||||||||
(in millions, except ounces and per ounce amounts)
|
2017
|
2016
|
2015
|
Change
|
% Change
(d)
|
Change
|
% Change
|
|||||||||||||||||||||
Operating Statistics
|
||||||||||||||||||||||||||||
Total gold equivalent ounces
(a)
|
||||||||||||||||||||||||||||
Produced
(c)
|
2,698,136
|
2,810,345
|
2,620,262
|
(112,209
|
)
|
(4%)
|
|
190,083
|
7%
|
|
||||||||||||||||||
Sold
(c)
|
2,621,875
|
2,778,902
|
2,634,867
|
(157,027
|
)
|
(6%)
|
|
144,035
|
5%
|
|
||||||||||||||||||
Attributable gold equivalent ounces
(a)
|
||||||||||||||||||||||||||||
Produced
(c)
|
2,673,533
|
2,789,150
|
2,594,652
|
(115,617
|
)
|
(4%)
|
|
194,498
|
7%
|
|
||||||||||||||||||
Sold
(c)
|
2,596,754
|
2,758,306
|
2,608,870
|
(161,552
|
)
|
(6%)
|
|
149,436
|
6%
|
|
||||||||||||||||||
Gold ounces - sold
|
2,553,178
|
2,697,912
|
2,562,219
|
(144,734
|
)
|
(5%)
|
|
135,693
|
5%
|
|
||||||||||||||||||
Silver ounces - sold (000's)
|
5,058
|
5,913
|
5,378
|
(855
|
)
|
(14%)
|
|
535
|
10%
|
|
||||||||||||||||||
Average realized gold price per ounce
(b)
|
$
|
1,260
|
$
|
1,249
|
$
|
1,159
|
$
|
11
|
1%
|
|
$
|
90
|
8%
|
|
||||||||||||||
Financial data
|
||||||||||||||||||||||||||||
Metal sales
|
$
|
3,303.0
|
$
|
3,472.0
|
$
|
3,052.2
|
$
|
(169.0
|
)
|
(5%)
|
|
$
|
419.8
|
14%
|
|
|||||||||||||
Production cost of sales
|
$
|
1,757.4
|
$
|
1,983.8
|
$
|
1,834.8
|
$
|
(226.4
|
)
|
(11%)
|
|
$
|
149.0
|
8%
|
|
|||||||||||||
Depreciation, depletion and amortization
|
$
|
819.4
|
$
|
855.0
|
$
|
897.7
|
$
|
(35.6
|
)
|
(4%)
|
|
$
|
(42.7
|
)
|
(5%
|
|
||||||||||||
Impairment, net of reversals
|
$
|
21.5
|
$
|
139.6
|
$
|
699.0
|
$
|
(118.1
|
)
|
(85%)
|
|
$
|
(559.4
|
)
|
(80%
|
|
||||||||||||
Operating earnings
|
$
|
336.5
|
$
|
46.3
|
$
|
(742.9
|
)
|
$
|
290.2
|
nm
|
$
|
789.2
|
106%
|
|
||||||||||||||
Net earnings (loss) attributable to common shareholders
|
$
|
445.4
|
$
|
(104.0
|
)
|
$
|
(984.5
|
)
|
$
|
549.4
|
nm
|
$
|
880.5
|
89%
|
|
|||||||||||||
(a)
|
"Total" includes 100% of Chirano production. "Attributable" includes Kinross' share of Chirano (90%) production.
|
|||||||||||||||||||||||||||
(b)
|
The definition of this non-GAAP financial measure is included in Section 11 of this document.
|
|||||||||||||||||||||||||||
(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 2017 was 73.72:1 (2016 - 72.95:1 and 2015 - 73.92:1).
|
|||||||||||||||||||||||||||
(d)
|
"nm" means not meaningful.
|
Years ended December 31,
|
2017 vs. 2016
|
2016 vs. 2015
|
||||||||||||||||||||||||||
(in millions)
|
2017
|
2016
|
2015
|
Change
|
% Change
(c)
|
Change
|
% Change
(c)
|
|||||||||||||||||||||
Operating segments
|
||||||||||||||||||||||||||||
Fort Knox
|
$
|
224.7
|
$
|
110.0
|
$
|
(180.8
|
)
|
$
|
114.7
|
104
|
%
|
$
|
290.8
|
161
|
%
|
|||||||||||||
Round Mountain
|
139.7
|
85.8
|
(8.9
|
)
|
53.9
|
63
|
%
|
94.7
|
nm
|
|||||||||||||||||||
Bald Mountain
|
68.5
|
(37.4
|
)
|
-
|
105.9
|
nm
|
(37.4
|
)
|
nm
|
|
||||||||||||||||||
Kettle River-Buckhorn
|
43.4
|
64.0
|
30.3
|
(20.6
|
)
|
(32
|
%)
|
33.7
|
111
|
%
|
||||||||||||||||||
Paracatu
|
(263.3
|
)
|
36.2
|
24.4
|
(299.5
|
)
|
nm
|
|
11.8
|
48
|
%
|
|||||||||||||||||
Maricunga
|
21.3
|
(150.6
|
)
|
(60.4
|
)
|
171.9
|
114
|
%
|
(90.2
|
)
|
(149
|
%)
|
||||||||||||||||
Kupol
(a)
|
225.0
|
345.3
|
150.1
|
(120.3
|
)
|
(35
|
%)
|
195.2
|
130
|
%
|
||||||||||||||||||
Tasiast
|
118.8
|
(119.9
|
)
|
(361.2
|
)
|
238.7
|
199
|
%
|
241.3
|
67
|
%
|
|||||||||||||||||
Chirano
|
(27.5
|
)
|
(58.0
|
)
|
(70.1
|
)
|
30.5
|
53
|
%
|
12.1
|
17
|
%
|
||||||||||||||||
Non-operating segment
|
||||||||||||||||||||||||||||
Corporate and Other
(b)
|
(214.1
|
)
|
(229.1
|
)
|
(266.3
|
)
|
15.0
|
7
|
%
|
37.2
|
14
|
%
|
||||||||||||||||
Total
|
$
|
336.5
|
$
|
46.3
|
$
|
(742.9
|
)
|
$
|
290.2
|
nm
|
$
|
789.2
|
106
|
%
|
||||||||||||||
(a)
|
The Kupol segment includes the Kupol and Dvoinoye mines.
|
|||||||||||||||||||||||||||
(b)
|
"Corporate and Other" includes operating costs which are not directly related to individual mining properties such as overhead expenses, gains and losses on disposal of assets and investments, and other costs relating to non-operating assets (including La Coipa, Lobo-Marte, Cerro Casale until its disposal on June 9, 2017 and White Gold until its disposal on June 14, 2017.
|
|||||||||||||||||||||||||||
(c)
|
"nm" means not meaningful.
|
Years ended December 31,
|
||||||||||||||||
|
2017
|
2016
|
Change
|
% Change
(c)
|
||||||||||||
Operating Statistics
|
||||||||||||||||
Tonnes ore mined (000's)
|
26,362
|
31,750
|
(5,388
|
)
|
(17
|
%)
|
||||||||||
Tonnes processed (000's)
(a)
|
32,736
|
42,360
|
(9,624
|
)
|
(23
|
%)
|
||||||||||
Grade (grams/tonne)
(b)
|
0.84
|
0.69
|
0.15
|
22
|
%
|
|||||||||||
Recovery
(b)
|
82.5%
|
|
82.8
|
%
|
(0.3%)
|
|
(0
|
%)
|
||||||||
Gold equivalent ounces:
|
||||||||||||||||
Produced
|
381,115
|
409,844
|
(28,729
|
)
|
(7
|
%)
|
||||||||||
Sold
|
381,779
|
408,059
|
(26,280
|
)
|
(6
|
%)
|
||||||||||
Financial Data
(in millions)
|
||||||||||||||||
Metal sales
|
$
|
481.1
|
$
|
510.8
|
$
|
(29.7
|
)
|
(6
|
%)
|
|||||||
Production cost of sales
|
239.9
|
302.2
|
(62.3
|
)
|
(21
|
%)
|
||||||||||
Depreciation, depletion and amortization
|
86.6
|
88.7
|
(2.1
|
)
|
(2
|
%)
|
||||||||||
Impairment reversal
|
(88.6
|
)
|
-
|
(88.6
|
)
|
nm
|
|
|||||||||
243.2
|
119.9
|
123.3
|
103
|
%
|
||||||||||||
Exploration and business development
|
9.0
|
8.9
|
0.1
|
1
|
%
|
|||||||||||
Other
|
9.5
|
1.0
|
8.5
|
nm
|
||||||||||||
Segment operating earnings
|
$
|
224.7
|
$
|
110.0
|
$
|
114.7
|
104
|
%
|
(a)
|
Includes 20,267,000 tonnes placed on the heap leach pads during 2017 (2016 - 29,142,000 tonnes).
|
(b)
|
Amount represents mill grade and recovery only. Ore placed on the heap leach pads had an average grade of
0.25 grams per tonne during
2017 (2016 - 0.27 grams per tonne). Due to the nature of heap leach operations, point-in-time recovery rates are not meaningful.
|
(c)
|
"nm" means not meaningful.
|
Years ended December 31,
|
||||||||||||||||
|
2017
|
2016
|
Change
|
% Change
|
||||||||||||
Operating Statistics
|
||||||||||||||||
Tonnes ore mined (000's)
|
26,418
|
23,530
|
2,888
|
12
|
%
|
|||||||||||
Tonnes processed (000's)
(a)
|
23,270
|
23,713
|
(443
|
)
|
(2
|
%)
|
||||||||||
Grade (grams/tonne)
(b)
|
1.41
|
0.98
|
0.43
|
44
|
%
|
|||||||||||
Recovery
(b)
|
81.2%
|
|
80.7
|
%
|
0.5%
|
|
1
|
%
|
||||||||
Gold equivalent ounces:
|
||||||||||||||||
Produced
|
436,932
|
378,264
|
58,668
|
16
|
%
|
|||||||||||
Sold
|
438,051
|
377,910
|
60,141
|
16
|
%
|
|||||||||||
Financial Data
(in millions)
|
||||||||||||||||
Metal sales
|
$
|
552.2
|
$
|
477.1
|
$
|
75.1
|
16
|
%
|
||||||||
Production cost of sales
|
302.5
|
292.0
|
10.5
|
4
|
%
|
|||||||||||
Depreciation, depletion and amortization
|
107.4
|
94.7
|
12.7
|
13
|
%
|
|||||||||||
142.3
|
90.4
|
51.9
|
57
|
%
|
||||||||||||
Exploration and business development
|
2.6
|
4.6
|
(2.0
|
)
|
(43
|
%)
|
||||||||||
Segment operating earnings
|
$
|
139.7
|
$
|
85.8
|
$
|
53.9
|
63
|
%
|
(a)
|
Includes 19,611,000 tonnes placed on the heap leach pads during 2017 (2016 - 20,084,000 tonnes).
|
(b)
|
Amount represents mill grade and recovery only. Ore placed on the heap leach pads had an average grade of 0.50 grams per tonne during 2017 (2016 - 0.44 grams per tonne). Due to the nature of heap leach operations, point-in-time recovery rates are not meaningful.
|
Years ended December 31,
|
||||||||||||||||
|
2017
|
2016
|
Change
|
% Change
(b)
|
||||||||||||
Operating Statistics
(a)
|
||||||||||||||||
Tonnes ore mined (000's)
|
21,615
|
10,656
|
10,959
|
103
|
%
|
|||||||||||
Tonnes processed (000's)
|
21,615
|
10,656
|
10,959
|
103
|
%
|
|||||||||||
Grade (grams/tonne)
|
0.80
|
0.64
|
0.16
|
25
|
%
|
|||||||||||
Gold equivalent ounces:
|
||||||||||||||||
Produced
|
282,715
|
130,144
|
152,571
|
117
|
%
|
|||||||||||
Sold
|
262,916
|
111,464
|
151,452
|
136
|
%
|
|||||||||||
Financial Data
(in millions)
|
||||||||||||||||
Metal sales
|
$
|
331.5
|
$
|
139.6
|
$
|
191.9
|
137
|
%
|
||||||||
Production cost of sales
|
168.9
|
131.7
|
37.2
|
28
|
%
|
|||||||||||
Depreciation, depletion and amortization
|
83.5
|
38.6
|
44.9
|
116
|
%
|
|||||||||||
79.1
|
(30.7
|
)
|
109.8
|
nm
|
||||||||||||
Exploration and business development
|
9.5
|
4.7
|
4.8
|
102
|
%
|
|||||||||||
Other
|
1.1
|
2.0
|
(0.9
|
)
|
(45
|
%)
|
||||||||||
Segment operating earnings (loss)
|
$
|
68.5
|
$
|
(37.4
|
)
|
$
|
105.9
|
nm
|
(a)
|
Due to the nature of heap leach operations, point-in-time recovery rates are not meaningful.
|
(b)
|
"nm" means not meaningful.
|
Years ended December 31,
|
||||||||||||||||
|
2017
|
2016
|
Change
|
% Change
(a)
|
||||||||||||
Operating Statistics
|
||||||||||||||||
Tonnes ore mined (000's)
|
189
|
438
|
(249
|
)
|
(57
|
%)
|
||||||||||
Tonnes processed (000's)
|
234
|
441
|
(207
|
)
|
(47
|
%)
|
||||||||||
Grade (grams/tonne)
|
9.53
|
7.84
|
1.69
|
22
|
%
|
|||||||||||
Recovery
|
94.4%
|
|
93.3%
|
|
1.1%
|
|
1
|
%
|
||||||||
Gold equivalent ounces:
|
||||||||||||||||
Produced
|
76,570
|
112,274
|
(35,704
|
)
|
(32
|
%)
|
||||||||||
Sold
|
77,087
|
112,038
|
(34,951
|
)
|
(31
|
%)
|
||||||||||
Financial Data
(in millions)
|
||||||||||||||||
Metal sales
|
$
|
96.3
|
$
|
139.8
|
$
|
(43.5
|
)
|
(31
|
%)
|
|||||||
Production cost of sales
|
36.8
|
73.0
|
(36.2
|
)
|
(50
|
%)
|
||||||||||
Depreciation, depletion and amortization
|
0.6
|
1.3
|
(0.7
|
)
|
(54
|
%)
|
||||||||||
58.9
|
65.5
|
(6.6
|
)
|
(10
|
%)
|
|||||||||||
Exploration and business development
|
4.6
|
2.2
|
2.4
|
109
|
%
|
|||||||||||
Other
|
10.9
|
(0.7
|
)
|
11.6
|
nm
|
|||||||||||
Segment operating earnings
|
$
|
43.4
|
$
|
64.0
|
$
|
(20.6
|
)
|
(32
|
%)
|
(a)
|
"nm" means not meaningful.
|
Years ended December 31,
|
||||||||||||||||
|
2017
|
2016
|
Change
|
% Change
(a)
|
||||||||||||
Operating Statistics
|
||||||||||||||||
Tonnes ore mined (000's)
|
27,770
|
47,206
|
(19,436
|
)
|
(41
|
%)
|
||||||||||
Tonnes processed (000's)
|
37,623
|
46,816
|
(9,193
|
)
|
(20
|
%)
|
||||||||||
Grade (grams/tonne)
|
0.41
|
0.45
|
(0.04
|
)
|
(9
|
%)
|
||||||||||
Recovery
|
74.6
|
%
|
72.3
|
%
|
2.3
|
%
|
3
|
%
|
||||||||
Gold equivalent ounces:
|
||||||||||||||||
Produced
|
359,959
|
483,014
|
(123,055
|
)
|
(25
|
%)
|
||||||||||
Sold
|
356,251
|
482,827
|
(126,576
|
)
|
(26
|
%)
|
||||||||||
Financial Data
(in millions)
|
||||||||||||||||
Metal sales
|
$
|
447.0
|
$
|
599.6
|
$
|
(152.6
|
)
|
(25
|
%)
|
|||||||
Production cost of sales
|
310.2
|
346.4
|
(36.2
|
)
|
(10
|
%)
|
||||||||||
Depreciation, depletion and amortization
|
127.0
|
142.7
|
(15.7
|
)
|
(11
|
%)
|
||||||||||
Impairment charge
|
253.0
|
-
|
253.0
|
nm
|
|
|||||||||||
(243.2
|
)
|
110.5
|
(353.7
|
)
|
nm
|
|
||||||||||
Other
|
20.1
|
74.3
|
(54.2
|
)
|
(73
|
%)
|
||||||||||
Segment operating earnings (loss)
|
$
|
(263.3
|
)
|
$
|
36.2
|
$
|
(299.5
|
)
|
nm
|
|
Years ended December 31,
|
||||||||||||||||
|
2017
|
2016
|
Change
|
% Change
(b)
|
||||||||||||
Operating Statistics
(a)
|
||||||||||||||||
Tonnes ore mined (000's)
|
-
|
6,059
|
(6,059
|
)
|
nm
|
|
||||||||||
Tonnes processed (000's)
|
-
|
6,508
|
(6,508
|
)
|
nm
|
|
||||||||||
Grade (grams/tonne)
|
-
|
0.67
|
(0.67
|
)
|
nm
|
|
||||||||||
Gold equivalent ounces:
|
||||||||||||||||
Produced
|
91,127
|
175,532
|
(84,405
|
)
|
(48
|
%)
|
||||||||||
Sold
|
41,316
|
175,670
|
(134,354
|
)
|
(76
|
%)
|
||||||||||
Financial Data
(in millions)
|
||||||||||||||||
Metal sales
|
$
|
52.0
|
$
|
219.4
|
$
|
(167.4
|
)
|
(76
|
%)
|
|||||||
Production cost of sales
|
19.9
|
145.2
|
(125.3
|
)
|
(86
|
%)
|
||||||||||
Depreciation, depletion and amortization
|
4.6
|
34.4
|
(29.8
|
)
|
(87
|
%)
|
||||||||||
Impairment charge
|
-
|
139.6
|
(139.6
|
)
|
nm
|
|
||||||||||
27.5
|
(99.8
|
)
|
127.3
|
128
|
%
|
|||||||||||
Exploration and business development
|
0.1
|
-
|
0.1
|
nm
|
|
|||||||||||
Other
|
6.1
|
50.8
|
(44.7
|
)
|
(88
|
%)
|
||||||||||
Segment operating earnings (loss)
|
$
|
21.3
|
$
|
(150.6
|
)
|
$
|
171.9
|
114
|
%
|
(a)
(b)
|
Due to the nature of heap leach operations, point-in-time recovery rates are not meaningful.
"nm" means not meaningful.
|
Years ended December 31,
|
||||||||||||||||
|
2017
|
2016
|
Change
|
% Change
|
||||||||||||
Operating Statistics
|
||||||||||||||||
Tonnes ore mined (000's)
(b)
|
1,915
|
2,002
|
(87
|
)
|
(4
|
%)
|
||||||||||
Tonnes processed (000's)
|
1,733
|
1,710
|
23
|
1
|
%
|
|||||||||||
Grade (grams/tonne):
|
||||||||||||||||
Gold
|
10.01
|
12.72
|
(2.71
|
)
|
(21
|
%)
|
||||||||||
Silver
|
81.11
|
103.38
|
(22.27
|
)
|
(22
|
%)
|
||||||||||
Recovery:
|
||||||||||||||||
Gold
|
94.8
|
%
|
95.3
|
%
|
(0.5%
|
)
|
(1
|
%)
|
||||||||
Silver
|
84.8
|
%
|
87.8
|
%
|
(3.0%
|
)
|
(3
|
%)
|
||||||||
Gold equivalent ounces:
(c)
|
||||||||||||||||
Produced
|
580,451
|
734,143
|
(153,692
|
)
|
(21
|
%)
|
||||||||||
Sold
|
577,007
|
736,001
|
(158,994
|
)
|
(22
|
%)
|
||||||||||
Silver ounces:
|
||||||||||||||||
Produced (000's)
|
3,879
|
4,909
|
(1,030
|
)
|
(21
|
%)
|
||||||||||
Sold (000's)
|
3,873
|
4,902
|
(1,029
|
)
|
(21
|
%)
|
||||||||||
Financial Data
(in millions)
|
||||||||||||||||
Metal sales
|
$
|
726.9
|
$
|
919.2
|
$
|
(192.3
|
)
|
(21
|
%)
|
|||||||
Production cost of sales
|
300.9
|
324.3
|
(23.4
|
)
|
(7
|
%)
|
||||||||||
Depreciation, depletion and amortization
|
184.2
|
236.8
|
(52.6
|
)
|
(22
|
%)
|
||||||||||
241.8
|
358.1
|
(116.3
|
)
|
(32
|
%)
|
|||||||||||
Exploration and business development
|
17.1
|
13.3
|
3.8
|
29
|
%
|
|||||||||||
Other
|
(0.3
|
)
|
(0.5
|
)
|
0.2
|
40
|
%
|
|||||||||
Segment operating earnings
|
$
|
225.0
|
$
|
345.3
|
$
|
(120.3
|
)
|
(35
|
%)
|
(a)
|
The Kupol segment includes the Kupol and Dvoinoye mines.
|
(b)
|
Includes
668,000 tonnes of ore mined from Dvoinoye during 2017 (2016 - 665,000 tonnes).
|
(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 2017 was 73.72:1 (2016 - 72.95:1).
|
Years ended December 31,
|
||||||||||||||||
|
2017
|
2016
|
Change
|
% Change
(c)
|
||||||||||||
Operating Statistics
|
||||||||||||||||
Tonnes ore mined (000's)
|
6,685
|
7,973
|
(1,288
|
)
|
(16
|
%)
|
||||||||||
Tonnes processed (000's)
(a)
|
4,101
|
7,227
|
(3,126
|
)
|
(43
|
%)
|
||||||||||
Grade (grams/tonne)
(b)
|
2.36
|
1.80
|
0.56
|
31
|
%
|
|||||||||||
Recovery
(b)
|
92.3
|
%
|
92.0
|
%
|
0.3
|
%
|
0
|
%
|
||||||||
Gold equivalent ounces:
|
||||||||||||||||
Produced
|
243,240
|
175,176
|
68,064
|
39
|
%
|
|||||||||||
Sold
|
236,256
|
168,969
|
67,287
|
40
|
%
|
|||||||||||
Financial Data
(in millions)
|
||||||||||||||||
Metal sales
|
$
|
298.4
|
$
|
208.0
|
$
|
90.4
|
43
|
%
|
||||||||
Production cost of sales
|
178.2
|
179.3
|
(1.1
|
)
|
(1
|
%)
|
||||||||||
Depreciation, depletion and amortization
|
78.6
|
96.4
|
(17.8
|
)
|
(18
|
%)
|
||||||||||
Impairment reversal
|
(142.9
|
)
|
-
|
(142.9
|
)
|
nm
|
||||||||||
184.5
|
(67.7
|
)
|
252.2
|
nm
|
||||||||||||
Exploration and business development
|
5.7
|
5.9
|
(0.2
|
)
|
(3
|
%)
|
||||||||||
Other
|
60.0
|
46.3
|
13.7
|
30
|
%
|
|||||||||||
Segment operating earnings (loss)
|
$
|
118.8
|
$
|
(119.9
|
)
|
$
|
238.7
|
199
|
%
|
(a)
|
Includes 1,056,000 tonnes placed on the heap leach pads during 2017 (2016 - 4,768,000 tonnes).
|
(b)
|
Amount represents mill grade and recovery only. Ore placed on the dump leach pads had an average grade of 0.65
grams per tonne during 2017 (2016 - 0.44 grams per tonne). Due to the nature of dump leach operations, point-in-time recovery rates are not meaningful.
|
(c)
|
"nm" means not meaningful.
|
Years ended December 31,
|
||||||||||||||||
|
2017
|
2016
|
Change
|
% Change
|
||||||||||||
Operating Statistics
|
||||||||||||||||
Tonnes ore mined (000's)
|
2,410
|
2,722
|
(312
|
)
|
(11
|
%)
|
||||||||||
Tonnes processed (000's)
|
3,438
|
3,458
|
(20
|
)
|
(1
|
%)
|
||||||||||
Grade (grams/tonne)
|
2.44
|
2.10
|
0.34
|
16
|
%
|
|||||||||||
Recovery
|
92.2
|
%
|
91.4
|
%
|
0.8
|
%
|
1
|
%
|
||||||||
Gold equivalent ounces:
|
||||||||||||||||
Produced
|
246,027
|
211,954
|
34,073
|
16
|
%
|
|||||||||||
Sold
|
251,212
|
205,964
|
45,248
|
22
|
%
|
|||||||||||
Financial Data
(in millions)
|
||||||||||||||||
Metal sales
|
$
|
317.6
|
$
|
258.5
|
$
|
59.1
|
23
|
%
|
||||||||
Production cost of sales
|
200.1
|
189.7
|
10.4
|
5
|
%
|
|||||||||||
Depreciation, depletion and amortization
|
138.6
|
109.9
|
28.7
|
26
|
%
|
|||||||||||
(21.1
|
)
|
(41.1
|
)
|
20.0
|
49
|
%
|
||||||||||
Exploration and business development
|
8.2
|
8.9
|
(0.7
|
)
|
(8
|
%)
|
||||||||||
Other
|
(1.8
|
)
|
8.0
|
(9.8
|
)
|
(123
|
%)
|
|||||||||
Segment operating loss
|
$
|
(27.5
|
)
|
$
|
(58.0
|
)
|
$
|
30.5
|
53
|
%
|
(a)
|
Operating and financial data are at 100% for all periods.
|
|
Years ended December 31,
|
|||||||||||||||
(in millions)
|
2017
|
2016
|
Change
|
% Change
|
||||||||||||
Property, plant and equipment (i)
|
$
|
21.5
|
$
|
68.3
|
$
|
(46.8
|
)
|
(69
|
%)
|
|||||||
Inventory (ii)
|
-
|
71.3
|
(71.3
|
)
|
(100
|
%)
|
||||||||||
Impairment charges
|
$
|
21.5
|
$
|
139.6
|
$
|
(118.1
|
)
|
(85
|
%)
|
i.
|
Property, plant and equipment
|
ii.
|
Inventory and other assets
|
|
Years ended December 31,
|
|||||||||||||||
(in millions)
|
2017
|
2016
|
Change
|
% Change
|
||||||||||||
Other operating expense
|
$
|
129.6
|
$
|
209.3
|
$
|
(79.7
|
)
|
(38
|
%)
|
|
Years ended December 31,
|
|||||||||||||||
(in millions)
|
2017
|
2016
|
Change
|
% Change
|
||||||||||||
Exploration and business development
|
$
|
106.0
|
$
|
94.3
|
$
|
11.7
|
12
|
%
|
|
Years ended December 31,
|
|||||||||||||||
(in millions)
|
2017
|
2016
|
Change
|
% Change
|
||||||||||||
General and administrative
|
$
|
132.6
|
$
|
143.7
|
$
|
(11.1
|
)
|
(8
|
%)
|
|
Years ended December 31,
|
|||||||||||||||
(in millions)
|
2017
|
2016
|
Change
|
% Change
(a)
|
||||||||||||
Gain on disposition of associate and other interests - net
|
$
|
55.2
|
$
|
-
|
$
|
55.2
|
nm
|
|
||||||||
Gain on disposition of other assets - net
|
1.9
|
9.7
|
(7.8
|
)
|
(80
|
%)
|
||||||||||
Reversal of impairment charges
|
97.0
|
-
|
97.0
|
nm
|
|
|||||||||||
Foreign exchange losses
|
(4.9
|
)
|
(6.3
|
)
|
1.4
|
22
|
%
|
|||||||||
Net non-hedge derivative gains (losses)
|
0.3
|
(0.4
|
)
|
0.7
|
175
|
% | ||||||||||
Other
|
38.6
|
19.5
|
19.1
|
98
|
%
|
|||||||||||
Other income - net
|
$
|
188.1
|
$
|
22.5
|
$
|
165.6
|
nm
|
|
Years ended December 31,
|
|||||||||||||||
(in millions)
|
2017
|
2016
|
Change
|
% Change
|
||||||||||||
Finance expense
|
$
|
117.8
|
$
|
134.6
|
$
|
(16.8
|
)
|
(12
|
%)
|
6.
|
LIQUIDITY AND CAPITAL RESOURCES
|
|
Years ended December 31,
|
|||||||||||||||
(in millions)
|
2017
|
2016
|
Change
|
% Change
|
||||||||||||
Cash Flow
|
||||||||||||||||
Provided from operating activities
|
$
|
951.6
|
$
|
1,099.2
|
$
|
(147.6
|
)
|
(13
|
%)
|
|||||||
Used in investing activities
|
(687.2
|
)
|
(1,270.1
|
)
|
582.9
|
46
|
%
|
|||||||||
Used in financing activities
|
(69.0
|
)
|
(48.3
|
)
|
(20.7
|
)
|
(43
|
%)
|
||||||||
Effect of exchange rate changes on cash and cash equivalents
|
3.4
|
2.3
|
1.1
|
48
|
%
|
|||||||||||
Increase (decrease) in cash and cash equivalents
|
198.8
|
(216.9
|
)
|
415.7
|
192
|
%
|
||||||||||
Cash and cash equivalents, beginning of period
|
827.0
|
1,043.9
|
(216.9
|
)
|
(21
|
%)
|
||||||||||
Cash and cash equivalents, end of period
|
$
|
1,025.8
|
$
|
827.0
|
$
|
198.8
|
24
|
%
|
|
Years ended December 31,
|
|||||||||||||||
(in millions)
|
2017
|
2016
|
Change
|
% Change
|
||||||||||||
Operating segments
|
||||||||||||||||
Fort Knox
|
$
|
102.1
|
$
|
70.2
|
$
|
31.9
|
45
|
%
|
||||||||
Round Mountain
|
95.8
|
71.9
|
23.9
|
33
|
%
|
|||||||||||
Bald Mountain
|
90.5
|
40.5
|
50.0
|
123
|
%
|
|||||||||||
Kettle River - Buckhorn
|
-
|
-
|
-
|
-
|
||||||||||||
Paracatu
|
122.4
|
108.5
|
13.9
|
13
|
%
|
|||||||||||
Maricunga
|
1.5
|
5.1
|
(3.6
|
)
|
(71
|
%)
|
||||||||||
Kupol
(a)
|
54.3
|
88.8
|
(34.5
|
)
|
(39
|
%)
|
||||||||||
Tasiast
|
379.4
|
190.9
|
188.5
|
99
|
%
|
|||||||||||
Chirano
|
46.6
|
46.6
|
-
|
-
|
|
|||||||||||
Non-operating segment
|
||||||||||||||||
Corporate and Other
(b)
|
5.0
|
11.3
|
(6.3
|
)
|
(56
|
%)
|
||||||||||
Total
|
$
|
897.6
|
$
|
633.8
|
$
|
263.8
|
42
|
%
|
(a)
Includes $10.4 million of capital expenditures at Dvoinoye during 2017 (2016 - $14.4 million).
|
(b) "Corporate and Other" includes corporate and other non-operating assets including La Coipa, Lobo-Marte and White Gold until its disposal on June 14, 2017.
|
|
As at December 31,
|
|||||||||||
(in millions)
|
2017
|
2016
|
2015
|
|||||||||
Cash and cash equivalents
|
$
|
1,025.8
|
$
|
827.0
|
$
|
1,043.9
|
||||||
Current assets
|
$
|
2,284.4
|
$
|
2,080.7
|
$
|
2,292.1
|
||||||
Total assets
|
$
|
8,157.2
|
$
|
7,979.3
|
$
|
7,735.4
|
||||||
Current liabilities, including current portion of long-term debt
|
$
|
585.3
|
$
|
637.7
|
$
|
701.8
|
||||||
Total long-term financial liabilities
(a)
|
$
|
2,563.1
|
$
|
2,594.4
|
$
|
2,452.7
|
||||||
Total debt, including current portion
|
$
|
1,732.6
|
$
|
1,733.2
|
$
|
1,981.4
|
||||||
Total liabilities
|
$
|
3,538.0
|
$
|
3,795.0
|
$
|
3,802.2
|
||||||
Common shareholders' equity
|
$
|
4,583.6
|
$
|
4,145.5
|
$
|
3,889.3
|
||||||
Non-controlling interest
|
$
|
35.6
|
$
|
38.8
|
$
|
43.9
|
||||||
Statistics
|
||||||||||||
Working capital
(b)
|
$
|
1,699.1
|
$
|
1,443.0
|
$
|
1,590.3
|
||||||
Working capital ratio
(c)
|
3.9:1
|
3.26:1
|
3.27:1
|
(a) Includes long-term debt and provisions.
|
(b) Calculated as current assets less current liabilities.
|
(c) Calculated as current assets divided by current liabilities.
|
Type of credit
|
|
Dollar based LIBOR loan:
|
|
Revolving credit facility
|
LIBOR plus 2.00%
|
Letters of credit
|
1.33-2.00%
|
Standby fee applicable to unused availability
|
0.40%
|
|
As at,
|
|||||||
|
December 31,
|
|||||||
(in millions)
|
2017
|
2016
|
||||||
Utilization of revolving credit facility
|
$
|
(21.0
|
)
|
$
|
(104.5
|
)
|
||
Utilization of EDC facility
|
(215.2
|
)
|
(215.1
|
)
|
||||
Borrowings
|
$
|
(236.2
|
)
|
$
|
(319.6
|
)
|
||
|
||||||||
Available under revolving credit facility
|
$
|
1,479.0
|
$
|
1,395.5
|
||||
Available under EDC credit facility
|
84.8
|
34.9
|
||||||
Available credit
|
$
|
1,563.8
|
$
|
1,430.4
|
(in millions)
|
Total
|
2018
|
2019
|
2020
|
2021
|
2022
|
2023 & thereafter
|
|||||||||||||||||||||
Long-term debt obligations
(a)
|
$
|
1,750.0
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
500.0
|
$
|
-
|
$
|
1,250.0
|
||||||||||||||
Operating lease obligations
|
49.9
|
25.9
|
12.5
|
4.9
|
2.9
|
2.9
|
0.8
|
|||||||||||||||||||||
Purchase obligations
(b)
|
822.3
|
462.0
|
285.2
|
5.9
|
34.5
|
0.1
|
34.6
|
|||||||||||||||||||||
Reclamation and remediation obligations
|
1,183.7
|
64.4
|
65.0
|
55.6
|
117.5
|
62.4
|
818.8
|
|||||||||||||||||||||
Interest and other fees
(a)
|
972.0
|
104.6
|
102.9
|
102.9
|
102.9
|
74.9
|
483.8
|
|||||||||||||||||||||
Total
|
$
|
4,777.9
|
$
|
656.9
|
$
|
465.6
|
$
|
169.3
|
$
|
757.8
|
$
|
140.3
|
$
|
2,588.0
|
(a) Debt repayments are based on amounts due pursuant to the terms of the loan agreements.
|
(b) Includes both capital and operating commitments, of which $192.7 million relates to commitments for capital expenditures.
|
Foreign currency
|
2018
|
2019
|
2020
|
|||||||||
Brazilian real forward buy contracts
|
||||||||||||
(in millions of U.S. dollars)
|
$
|
69.6
|
$
|
-
|
$
|
-
|
||||||
Average price (Brazilian reais)
|
3.32
|
-
|
-
|
|||||||||
Brazilian real zero cost collars
|
||||||||||||
(in millions of U.S. dollars)
|
$
|
25.2
|
$
|
60.0
|
$
|
-
|
||||||
Average put strike (Brazilian reais)
|
3.75
|
3.45
|
-
|
|||||||||
Average call strike (Brazilian reais)
|
4.12
|
3.64
|
-
|
|||||||||
Canadian dollar forward buy contracts
|
||||||||||||
(in millions of U.S. dollars)
|
$
|
40.5
|
$
|
18.0
|
$
|
-
|
||||||
Average rate (Canadian dollars)
|
1.35
|
1.28
|
-
|
|||||||||
Russian rouble zero cost collars
|
||||||||||||
(in millions of U.S. dollars)
|
$
|
24.0
|
$
|
-
|
$
|
-
|
||||||
Average put strike (Russian roubles)
|
60.0
|
-
|
-
|
|||||||||
Average call strike (Russian roubles)
|
71.2
|
-
|
-
|
|||||||||
WTI oil swap contracts (barrels) | 907,482 | 594,451 | 90, 0 00 | |||||||||
Average price | $ | 48.48 | $ | 49.86 | $ | 52.40 |
·
|
$58.5 million Canadian dollars at an average rate of 1.33 maturing in 2018 to 2019;
|
·
|
$24.0 million Russian roubles with an average put strike of 60.00 and an average call strike of 71.24 maturing in 2018;
|
·
|
$69.6 million Brazilian reais at an average rate of 3.32 maturing in 2018;
|
·
|
$60.0 million Brazilian reais with an average put strike of 3.45 and an average call strike of 3.64 maturing in 2019;
|
·
|
1,048,000 barrels of WTI oil at an average rate of $49.46 per barrel maturing from 2017 to 2020.
|
·
|
$24.0 million Russian roubles with an average put strike 57.00 and average call strike 67.50 maturing in 2019;
|
·
|
$58.5 million Brazilian reais with an average put strike of 3.32 and an average call strike of 3.66 maturing in 2019;
|
·
|
348,000 barrels of WTI oil at an average rate of $53.39 per barrel maturing in 2019 to 2020.
|
|
|
|||||||
|
As at December 31,
|
|||||||
(in millions)
|
2017
|
2016
|
||||||
Asset (liability)
|
||||||||
Foreign currency forward and collar contracts
|
$
|
6.1
|
$
|
8.9
|
||||
Energy swap contracts
|
12.9
|
12.3
|
||||||
Total return swap contracts
|
0.6
|
(6.2
|
)
|
|||||
|
$
|
19.6
|
$
|
15.0
|
7.
|
SUMMARY OF QUARTERLY INFORMATION
|
|
2017
|
2016
|
||||||||||||||||||||||||||||||
(in millions, except per share amounts)
|
Q4
|
Q3
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
Q1
|
(a)
|
|||||||||||||||||||||||
Metal sales
|
$
|
810.3
|
$
|
828.0
|
$
|
868.6
|
$
|
796.1
|
$
|
902.8
|
$
|
910.2
|
$
|
876.4
|
$
|
782.6
|
||||||||||||||||
Net earnings (loss) attributable to common shareholders
|
$
|
217.6
|
$
|
60.1
|
$
|
33.1
|
$
|
134.6
|
$
|
(116.5
|
)
|
$
|
2.5
|
$
|
(25.0
|
)
|
$
|
35.0
|
||||||||||||||
Basic earnings (loss) per share attributable to common shareholders
|
$
|
0.17
|
$
|
0.05
|
$
|
0.03
|
$
|
0.11
|
$
|
(0.09
|
)
|
$
|
0.00
|
$
|
(0.02
|
)
|
$
|
0.03
|
||||||||||||||
Diluted earnings (loss) per share attributable to common shareholders
|
$
|
0.17
|
$
|
0.05
|
$
|
0.03
|
$
|
0.11
|
$
|
(0.09
|
)
|
$
|
0.00
|
$
|
(0.02
|
)
|
$
|
0.03
|
||||||||||||||
Net cash flow provided from operating activities
|
$
|
366.4
|
$
|
197.7
|
$
|
179.7
|
$
|
207.8
|
$
|
302.6
|
$
|
266.2
|
$
|
315.9
|
$
|
214.5
|
8.
|
DISCLOSURE CONTROLS AND PROCEDURES AND INTERNAL CONTROL OVER FINANCIAL REPORTING
|
9.
|
CRITICAL ACCOUNTING POLICIES, ESTIMATES AND ACCOUNTING CHANGES
|
10.
|
RISK ANALYSIS
|
·
|
Volatility in commodity prices and foreign exchange rates;
|
·
|
Tightening of credit markets;
|
·
|
Counterparty risk; and
|
·
|
Volatility in the prices of publicly traded entities.
|
11.
|
SUPPLEMENTAL INFORMATION
|
|
Years ended December 31,
|
|||||||
(in millions, except per share amounts)
|
2017
|
2016
|
||||||
Net earnings (loss) attributable to common shareholders - as reported
|
$
|
445.4
|
$
|
(104.0
|
)
|
|||
Adjusting items:
|
||||||||
Foreign exchange losses
|
4.9
|
6.3
|
||||||
Gain on disposition of associate and interests and other assets - net
|
(57.1
|
)
|
(9.7
|
)
|
||||
Foreign exchange losses (gains) on translation of tax basis and foreign exchange on deferred income taxes within income tax expense
|
-
|
(65.1
|
)
|
|||||
Acquisition costs
|
-
|
7.8
|
||||||
Tax benefits realized upon acquisition
|
-
|
(27.7
|
)
|
|||||
Impairment, net of reversals
(a)
|
(75.5
|
)
|
139.6
|
|||||
Taxes in respect of prior years
|
41.7
|
85.5
|
||||||
Mine curtailment and suspension related costs
(b)
|
16.6
|
40.4
|
||||||
Reclamation and remediation expense
|
9.5
|
27.2
|
||||||
Chile weather event related costs
|
3.3
|
-
|
||||||
Insurance recoveries
|
(17.5
|
)
|
(13.0
|
)
|
||||
Settlement of a royalty agreement
|
(9.9
|
)
|
-
|
|||||
U.S. Tax Reform impact
|
(93.4
|
)
|
-
|
|||||
Other
(c)
|
1.2
|
3.8
|
||||||
Tax effect of the above adjustments
(d)
|
(90.5
|
)
|
1.9
|
|||||
|
(266.7
|
)
|
197.0
|
|||||
Adjusted net earnings attributable to common shareholders
|
$
|
178.7
|
$
|
93.0
|
||||
Weighted average number of common shares outstanding - Basic
|
1,246.6
|
1,227.0
|
||||||
Adjusted net earnings per share
|
$
|
0.14
|
$
|
0.08
|
(a) During the fourth quarter and year ended December 31, 2017, the Company recognized an impairment charge related to Paracatu of $253.0 million and reversal of impairment charges of $231.5 million related to property, plant and equipment at Tasiast and Fort Knox. In addition, during the year ended December 31, 2017, the Company recognized a reversal of impairment charges related to the disposal of its 25% interest in Cerro Casale of $97.0 million during the year ended December 31, 2017.
|
(b) Includes costs related to the temporary curtailment at Paracatu during the year ended December 31, 2017 of $16.6 million. During the year ended December 31, 2016, mine curtailment and suspension related costs includes costs related to the temporary suspension of operations at Tasiast and the suspension of mining activities at Maricunga.
|
(c) Other includes non-hedge derivatives losses (gains).
|
(d) Includes a tax recovery of $83.6 million related to the impairment charge at Paracatu and impairment reversal at Fort Knox recognized during the year ended December 31, 2017.
|
|
Years ended December 31,
|
|||||||
(in millions)
|
2017
|
2016
|
||||||
Net cash flow provided from operating activities - as reported
|
$
|
951.6
|
$
|
1,099.2
|
||||
Adjusting items:
|
||||||||
Working capital changes:
|
||||||||
Accounts receivable and other assets
|
(108.6
|
)
|
21.2
|
|||||
Inventories
|
86.7
|
(79.5
|
)
|
|||||
Accounts payable and other liabilities, including taxes
|
237.0
|
(114.2
|
)
|
|||||
|
215.1
|
(172.5
|
)
|
|||||
Adjusted operating cash flow
|
$
|
1,166.7
|
$
|
926.7
|
Years ended December 31,
|
||||||||
(in millions, except ounces and production cost of sales per equivalent ounce)
|
2017
|
2016
|
||||||
Production cost of sales - as reported
|
$
|
1,757.4
|
$
|
1,983.8
|
||||
Less: portion attributable to Chirano non-controlling interest
|
(20.0
|
)
|
(19.0
|
)
|
||||
Attributable production cost of sales
|
$
|
1,737.4
|
$
|
1,964.8
|
||||
Gold equivalent ounces sold
|
2,621,875
|
2,778,902
|
||||||
Less: portion attributable to Chirano non-controlling interest
|
(25,121
|
)
|
(20,596
|
)
|
||||
Attributable gold equivalent ounces sold
|
2,596,754
|
2,758,306
|
||||||
Consolidated production cost of sales per equivalent ounce sold
|
$
|
670
|
$
|
714
|
||||
Attributable production cost of sales per equivalent ounce sold
|
$
|
669
|
$
|
712
|
Years ended December 31,
|
||||||||
(in millions, except ounces and production cost of sales per ounce)
|
2017
|
2016
|
||||||
Production cost of sales - as reported
|
$
|
1,757.4
|
$
|
1,983.8
|
||||
Less: portion attributable to Chirano non-controlling interest
|
(20.0
|
)
|
(19.0
|
)
|
||||
Less: attributable silver revenues
|
(86.5
|
)
|
(102.5
|
)
|
||||
Attributable production cost of sales net of silver by-product revenue
|
$
|
1,650.9
|
$
|
1,862.3
|
||||
Gold ounces sold
|
2,553,178
|
2,697,912
|
||||||
Less: portion attributable to Chirano non-controlling interest
|
(25,070
|
)
|
(20,545
|
)
|
||||
Attributable gold ounces sold
|
2,528,108
|
2,677,367
|
||||||
Attributable production cost of sales per ounce sold on a by-product basis
|
$
|
653
|
$
|
696
|
Years ended December 31,
|
||||||||
(in millions, except ounces and costs per ounce)
|
2017
|
2016
|
||||||
Production cost of sales - as reported
|
$
|
1,757.4
|
$
|
1,983.8
|
||||
Less: portion attributable to Chirano non-controlling interest
(a)
|
(20.0)
|
|
(19.0)
|
|
||||
Less: attributable
(b)
silver revenues
(c)
|
(86.5)
|
|
(102.5)
|
|
||||
Attributable
(b)
production cost of sales net of silver by-product revenue
|
$
|
1,650.9
|
$
|
1,862.3
|
||||
Adjusting items on an attributable
(b)
basis:
|
||||||||
General and administrative
(d)
|
132.6
|
143.7
|
||||||
Other operating expense - sustaining
(e)
|
43.3
|
18.6
|
||||||
Reclamation and remediation - sustaining
(f)
|
82.9
|
94.9
|
||||||
Exploration and business development - sustaining
(g)
|
59.4
|
50.8
|
||||||
Additions to property, plant and equipment - sustaining
(h)
|
421.5
|
440.1
|
||||||
All-in Sustaining Cost on a by-product basis - attributable
(b)
|
$
|
2,390.6
|
$
|
2,610.4
|
||||
Other operating expense - non-sustaining
(e)
|
39.5
|
25.6
|
||||||
Reclamation and remediation - non-sustaining
(f)
|
17.4
|
34.9
|
||||||
Exploration - non-sustaining
(g)
|
45.8
|
42.6
|
||||||
Additions to property, plant and equipment - non-sustaining
(h)
|
448.7
|
160.1
|
||||||
All-in Cost on a by-product basis - attributable
(b)
|
$
|
2,942.0
|
$
|
2,873.6
|
||||
Gold ounces sold
|
2,553,178
|
2,697,912
|
||||||
Less: portion attributable to Chirano non-controlling interest
(i)
|
(25,070)
|
|
(20,545)
|
|
||||
Attributable
(b)
gold ounces sold
|
2,528,108
|
2,677,367
|
||||||
Attributable
(b)
all-in sustaining cost per ounce sold on a by-product basis
|
$
|
946
|
$
|
975
|
||||
Attributable
(b)
all-in cost per ounce sold on a by-product basis
|
$
|
1,164
|
$
|
1,073
|
Years ended December 31,
|
||||||||
(in millions, except ounces and costs per equivalent ounce)
|
2017
|
2016
|
||||||
Production cost of sales - as reported
|
$
|
1,757.4
|
$
|
1,983.8
|
||||
Less: portion attributable to Chirano non-controlling interest
(a)
|
(20.0
|
)
|
(19.0
|
)
|
||||
Attributable
(b)
production cost of sales
|
$
|
1,737.4
|
$
|
1,964.8
|
||||
Adjusting items on an attributable
(b)
basis:
|
||||||||
General and administrative
(d)
|
132.6
|
143.7
|
||||||
Other operating expense - sustaining
(e)
|
43.3
|
18.6
|
||||||
Reclamation and remediation - sustaining
(f)
|
82.9
|
94.9
|
||||||
Exploration and business development - sustaining
(g)
|
59.4
|
50.8
|
||||||
Additions to property, plant and equipment - sustaining
(h)
|
421.5
|
440.1
|
||||||
All-in Sustaining Cost - attributable
(b)
|
$
|
2,477.1
|
$
|
2,712.9
|
||||
Other operating expense - non-sustaining
(e)
|
39.5
|
25.6
|
||||||
Reclamation and remediation - non-sustaining
(f)
|
17.4
|
34.9
|
||||||
Exploration - non-sustaining
(g)
|
45.8
|
42.6
|
||||||
Additions to property, plant and equipment - non-sustaining
(h)
|
448.7
|
160.1
|
||||||
All-in Cost - attributable
(b)
|
$
|
3,028.5
|
$
|
2,976.1
|
||||
Gold equivalent ounces sold
|
2,621,875
|
2,778,902
|
||||||
Less: portion attributable to Chirano non-controlling interest
(i)
|
(25,121
|
)
|
(20,596
|
)
|
||||
Attributable
(b)
gold equivalent ounces sold
|
2,596,754
|
2,758,306
|
||||||
Attributable
(b)
all-in sustaining cost per equivalent ounce sold
|
$
|
954
|
$
|
984
|
||||
Attributable
(b)
all-in cost per equivalent ounce sold
|
$
|
1,166
|
$
|
1,079
|
(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.
|
(c) "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.
|
(d) "General and administrative" expenses is as reported on the consolidated statement of operations, net of certain severance expenses. General and administrative expenses are considered sustaining costs as they are required to be absorbed on a continuing basis for the effective operation and governance of the Company.
|
(e) "Other operating expense – sustaining" is calculated as "Other operating expense" as reported on the consolidated statement of operations, less other operating and reclamation and remediation expenses related to non-sustaining activities as well as other items not reflective of the underlying operating performance of our business. Other operating expenses are classified as either sustaining or non-sustaining based on the type and location of the expenditure incurred. The majority of other operating expenses that are incurred at existing operations are considered costs necessary to sustain operations, and are therefore classified as sustaining. Other operating expenses incurred at locations where there is no current operation or related to other non-sustaining activities are classified as non-sustaining.
|
(f) "Reclamation and remediation - sustaining" is calculated as current period accretion related to reclamation and remediation obligations plus current period amortization of the corresponding reclamation and remediation assets, and is intended to reflect the periodic cost of reclamation and remediation for currently operating mines. Reclamation and remediation costs for development projects or closed mines are excluded from this amount and classified as non-sustaining.
|
(g) "Exploration and business development – sustaining" is calculated as "Exploration and business development" expenses as reported on the consolidated statement of operations, less non-sustaining exploration expenses. Exploration expenses are classified as either sustaining or non-sustaining based on a determination of the type and location of the exploration expenditure. Exploration expenditures within the footprint of operating mines are considered costs required to sustain current operations and so are included in sustaining costs. Exploration expenditures focused on new ore bodies near existing mines (i.e. brownfield), new exploration projects (i.e. greenfield) or for other generative exploration activity not linked to existing mining operations are classified as non-sustaining. Business development expenses are considered sustaining costs as they are required for general operations.
|
(h) "Additions to property, plant and equipment – sustaining" represents the majority of capital expenditures at existing operations including capitalized exploration costs, 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 growth projects as well as enhancement capital for significant infrastructure improvements at existing operations. Non-sustaining capital expenditures during the year ended December 31, 2017, primarily relate to projects at Tasiast.
|
(i) "Portion attributable to Chirano non-controlling interest" represents the non-controlling interest (10%) in the ounces sold from the Chirano mine.
|
(j) Average realized gold price is a non-GAAP financial measure and is defined as gold metal sales divided by the total number of gold ounces sold. This measure is intended to enable Management to better understand the price realized in each reporting period. The realized price measure does not have any standardized definition under IFRS and should not be considered a substitute for measure of performance prepared in accordance with IFRS.
|
/s/ J. Paul Rollinson
|
/s/ Tony S. Giardini |
J. PAUL ROLLINSON
|
TONY S. GIARDINI
|
President and Chief Executive Officer
Toronto, Canada
February 14, 2018
|
Executive Vice-President and Chief Financial Officer
Toronto, Canada
February 14, 2018
|
/s/ J. Paul Rollinson
|
/s/ Tony S. Giardini |
J. PAUL ROLLINSON
|
TONY S. GIARDINI
|
President and Chief Executive Officer
Toronto, Canada
February 14, 2018
|
Executive Vice-President and Chief Financial Officer
Toronto, Canada
February 14, 2018
|
|
|
As at
|
|||||||
|
|
December 31,
|
December 31,
|
||||||
|
|
2017
|
2016
|
||||||
|
|
||||||||
Assets
|
|
||||||||
Current assets
|
|
||||||||
Cash and cash equivalents
|
Note 7
|
$
|
1,025.8
|
$
|
827.0
|
||||
Restricted cash
|
Note 7
|
12.1
|
11.6
|
||||||
Accounts receivable and other assets
|
Note 7
|
91.3
|
127.3
|
||||||
Current income tax recoverable
|
|
43.9
|
111.9
|
||||||
Inventories
|
Note 7
|
1,094.3
|
986.8
|
||||||
Unrealized fair value of derivative assets
|
Note 10
|
17.0
|
16.1
|
||||||
|
|
2,284.4
|
2,080.7
|
||||||
Non-current assets
|
|
||||||||
Property, plant and equipment
|
Note 7
|
4,887.2
|
4,917.6
|
||||||
Goodwill
|
Note 7
|
162.7
|
162.7
|
||||||
Long-term investments
|
Note 7
|
188.0
|
142.9
|
||||||
Investments in associate and joint ventures
|
Note 9
|
23.7
|
163.6
|
||||||
Unrealized fair value of derivative assets
|
Note 10
|
3.9
|
6.0
|
||||||
Other long-term assets
|
Note 7
|
574.0
|
411.3
|
||||||
Deferred tax assets
|
Note 17
|
33.3
|
94.5
|
||||||
Total assets
|
|
$
|
8,157.2
|
$
|
7,979.3
|
||||
|
|
||||||||
Liabilities
|
|
||||||||
Current liabilities
|
|
||||||||
Accounts payable and accrued liabilities
|
Note 7
|
$
|
482.6
|
$
|
464.8
|
||||
Current income tax payable
|
|
35.1
|
72.6
|
||||||
Current portion of provisions
|
Note 13
|
66.5
|
93.2
|
||||||
Current portion of unrealized fair value of derivative liabilities
|
Note 10
|
1.1
|
7.1
|
||||||
|
|
585.3
|
637.7
|
||||||
Non-current liabilities
|
|
||||||||
Long-term debt
|
Note 12
|
1,732.6
|
1,733.2
|
||||||
Provisions
|
Note 13
|
830.5
|
861.2
|
||||||
Other long-term liabilities
|
|
134.0
|
172.2
|
||||||
Deferred tax liabilities
|
Note 17
|
255.6
|
390.7
|
||||||
Total liabilities
|
|
3,538.0
|
3,795.0
|
||||||
|
|
||||||||
Equity
|
|
||||||||
Common shareholders' equity
|
|
||||||||
Common share capital
|
Note 14
|
$
|
14,902.5
|
$
|
14,894.2
|
||||
Contributed surplus
|
|
240.7
|
238.3
|
||||||
Accumulated deficit
|
|
(10,580.7
|
)
|
(11,026.1
|
)
|
||||
Accumulated other comprehensive income
|
Note 7
|
21.1
|
39.1
|
||||||
Total common shareholders' equity
|
|
4,583.6
|
4,145.5
|
||||||
Non-controlling interest
|
|
35.6
|
38.8
|
||||||
Total equity
|
|
4,619.2
|
4,184.3
|
||||||
Commitments and contingencies
|
Note 19
|
||||||||
Subsequent events
|
Note 6
|
||||||||
Total liabilities and equity
|
|
$
|
8,157.2
|
$
|
7,979.3
|
||||
|
|
||||||||
Common shares
|
|
||||||||
Authorized
|
|
Unlimited
|
Unlimited
|
||||||
Issued and outstanding
|
Note 14
|
1,247,003,940
|
1,245,049,712
|
||||||
|
|
|
|
Years ended
|
|||||||
|
|
||||||||
|
|
December 31,
|
December 31,
|
||||||
|
|
2017
|
2016
|
||||||
|
|
||||||||
Revenue
|
|
||||||||
Metal sales
|
|
$
|
3,303.0
|
$
|
3,472.0
|
||||
|
|
||||||||
Cost of sales
|
|
||||||||
Production cost of sales
|
|
1,757.4
|
1,983.8
|
||||||
Depreciation, depletion and amortization
|
|
819.4
|
855.0
|
||||||
Impairment, net of reversals
|
Note 8
|
21.5
|
139.6
|
||||||
Total cost of sales
|
|
2,598.3
|
2,978.4
|
||||||
Gross profit
|
|
704.7
|
493.6
|
||||||
Other operating expense
|
Note 7
|
129.6
|
209.3
|
||||||
Exploration and business development
|
|
106.0
|
94.3
|
||||||
General and administrative
|
|
132.6
|
143.7
|
||||||
Operating earnings
|
|
336.5
|
46.3
|
||||||
Other income (expense) - net
|
Note 7
|
188.1
|
22.5
|
||||||
Equity in losses of associate and joint ventures
|
Note 9
|
(1.3
|
)
|
(1.2
|
)
|
||||
Finance income
|
|
13.5
|
7.5
|
||||||
Finance expense
|
Note 7
|
(117.8
|
)
|
(134.6
|
)
|
||||
Earnings (loss) before tax
|
|
419.0
|
(59.5
|
)
|
|||||
Income tax recovery (expense) - net
|
Note 17
|
23.2
|
(49.6
|
)
|
|||||
Net earnings (loss)
|
|
$
|
442.2
|
$
|
(109.1
|
)
|
|||
Net earnings (loss) attributable to:
|
|
||||||||
Non-controlling interest
|
|
$
|
(3.2
|
)
|
$
|
(5.1
|
)
|
||
Common shareholders
|
|
$
|
445.4
|
$
|
(104.0
|
)
|
|||
|
|
||||||||
Earnings (loss) per share attributable to common shareholders
|
|
||||||||
Basic
|
|
$
|
0.36
|
$
|
(0.08
|
)
|
|||
Diluted
|
|
$
|
0.35
|
$
|
(0.08
|
)
|
|||
|
|
||||||||
Weighted average number of common shares outstanding
(millions) |
Note 16
|
||||||||
Basic
|
|
1,246.6
|
1,227.0
|
||||||
Diluted
|
|
1,257.0
|
1,227.0
|
|
|
Years ended
|
|||||||
|
|
December 31,
|
December 31,
|
||||||
|
|
2017
|
2016
|
||||||
|
|
||||||||
|
|
||||||||
Net earnings (loss)
|
|
$
|
442.2
|
$
|
(109.1
|
)
|
|||
|
|
||||||||
Other comprehensive income (loss), net of tax:
|
Note 7
|
||||||||
Items to be reclassified to profit or loss in subsequent periods:
|
|
||||||||
Changes in fair value of investments
(a)
|
|
(13.6
|
)
|
50.8
|
|||||
Accumulated other comprehensive loss related to investments sold
(b)
|
|
(3.1
|
)
|
(8.5
|
)
|
||||
Changes in fair value of derivative financial instruments designated as cash flow hedges
(c)
|
|
11.9
|
29.2
|
||||||
Accumulated other comprehensive loss related to derivatives settled
(d)
|
|
(13.2
|
)
|
(1.1
|
)
|
||||
|
|
(18.0
|
)
|
70.4
|
|||||
Total comprehensive income (loss)
|
|
$
|
424.2
|
$
|
(38.7
|
)
|
|||
|
|
||||||||
Attributable to non-controlling interest
|
|
$
|
(3.2
|
)
|
$
|
(5.1
|
)
|
||
Attributable to common shareholders
|
|
$
|
427.4
|
$
|
(33.6
|
)
|
|||
|
|
(a)
Net of tax of $0.3 million (2016 - $nil).
|
(b)
Net of tax of $nil (2016 - $nil).
|
(c)
Net of tax of $4.8 million (2016 - $10.6 million).
(d)
Net of tax of $(5.9) million (2016 - $(1.1) million).
|
|
Years ended
|
|||||||
|
December 31,
|
December 31,
|
||||||
|
2017
|
2016
|
||||||
Net inflow (outflow) of cash related to the following activities:
|
||||||||
Operating:
|
||||||||
Net earnings (loss)
|
$
|
442.2
|
$
|
(109.1
|
)
|
|||
Adjustments to reconcile net earnings (loss) to net cash provided from operating activities:
|
||||||||
Depreciation, depletion and amortization
|
819.4
|
855.0
|
||||||
Gain on disposition of associate and other interests - net
|
(55.2
|
)
|
-
|
|||||
Impairment, net of reversals
|
(75.5
|
)
|
139.6
|
|||||
Equity in losses of associate and joint ventures
|
1.3
|
1.2
|
||||||
Share-based compensation expense
|
13.6
|
13.5
|
||||||
Finance expense
|
117.8
|
134.6
|
||||||
Deferred tax recovery
|
(76.4
|
)
|
(149.7
|
)
|
||||
Foreign exchange losses (gains) and other
|
(31.9
|
)
|
14.4
|
|||||
Reclamation expense
|
11.4
|
27.2
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable and other assets
|
108.6
|
(21.2
|
)
|
|||||
Inventories
|
(86.7
|
)
|
79.5
|
|||||
Accounts payable and accrued liabilities
|
(48.5
|
)
|
239.9
|
|||||
Cash flow provided from operating activities
|
1,140.1
|
1,224.9
|
||||||
Income taxes paid
|
(188.5
|
)
|
(125.7
|
)
|
||||
Net cash flow provided from operating activities
|
951.6
|
1,099.2
|
||||||
Investing:
|
||||||||
Additions to property, plant and equipment
|
(897.6
|
)
|
(633.8
|
)
|
||||
Business acquisition
|
-
|
(588.0
|
)
|
|||||
Net additions to long-term investments and other assets
|
(73.8
|
)
|
(59.8
|
)
|
||||
Net proceeds from the sale of property, plant and equipment
|
8.5
|
9.1
|
||||||
Net proceeds from disposition of associate and other interests
|
269.6
|
-
|
||||||
Increase in restricted cash
|
(0.5
|
)
|
(1.1
|
)
|
||||
Interest received and other
|
6.6
|
3.5
|
||||||
Net cash flow used in investing activities
|
(687.2
|
)
|
(1,270.1
|
)
|
||||
Financing:
|
||||||||
Issuance of common shares on exercise of options
|
0.8
|
2.8
|
||||||
Net proceeds from issuance of equity
|
-
|
275.7
|
||||||
Net proceeds from issuance of debt
|
494.7
|
175.0
|
||||||
Repayment of debt
|
(500.0
|
)
|
(425.0
|
)
|
||||
Interest paid
|
(62.9
|
)
|
(73.5
|
)
|
||||
Other
|
(1.6
|
)
|
(3.3
|
)
|
||||
Net cash flow used in financing activities
|
(69.0
|
)
|
(48.3
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
3.4
|
2.3
|
||||||
Increase (decrease) in cash and cash equivalents
|
198.8
|
(216.9
|
)
|
|||||
Cash and cash equivalents, beginning of period
|
827.0
|
1,043.9
|
||||||
Cash and cash equivalents, end of period
|
$
|
1,025.8
|
$
|
827.0
|
||||
|
|
Years ended
|
|||||||
|
December 31,
|
December 31,
|
||||||
|
2017
|
2016
|
||||||
|
||||||||
Common share capital
|
||||||||
Balance at the beginning of the period
|
$
|
14,894.2
|
$
|
14,603.5
|
||||
Shares issued on equity offering
|
-
|
275.7
|
||||||
Transfer from contributed surplus on exercise of restricted shares
|
7.2
|
12.2
|
||||||
Options exercised, including cash
|
1.1
|
2.8
|
||||||
Balance at the end of the period
|
$
|
14,902.5
|
$
|
14,894.2
|
||||
|
||||||||
Contributed surplus
|
||||||||
Balance at the beginning of the period
|
$
|
238.3
|
$
|
239.2
|
||||
Share-based compensation
|
13.6
|
14.2
|
||||||
Transfer of fair value of exercised options and restricted shares
|
(11.2
|
)
|
(15.1
|
)
|
||||
Balance at the end of the period
|
$
|
240.7
|
$
|
238.3
|
||||
|
||||||||
Accumulated deficit
|
||||||||
Balance at the beginning of the period
|
$
|
(11,026.1
|
)
|
$
|
(10,922.1
|
)
|
||
Net earnings (loss) attributable to common shareholders
|
445.4
|
(104.0
|
)
|
|||||
Balance at the end of the period
|
$
|
(10,580.7
|
)
|
$
|
(11,026.1
|
)
|
||
|
||||||||
Accumulated other comprehensive income (loss)
|
||||||||
Balance at the beginning of the period
|
$
|
39.1
|
$
|
(31.3
|
)
|
|||
Other comprehensive income (loss)
|
(18.0
|
)
|
70.4
|
|||||
Balance at the end of the period
|
$
|
21.1
|
$
|
39.1
|
||||
Total accumulated deficit and accumulated other comprehensive income (loss)
|
$
|
(10,559.6
|
)
|
$
|
(10,987.0
|
)
|
||
|
||||||||
Total common shareholders' equity
|
$
|
4,583.6
|
$
|
4,145.5
|
||||
|
||||||||
Non-controlling interest
|
||||||||
Balance at the beginning of the period
|
$
|
38.8
|
$
|
43.9
|
||||
Net loss attributable to non-controlling interest
|
(3.2
|
)
|
(5.1
|
)
|
||||
Balance at the end of the period
|
$
|
35.6
|
$
|
38.8
|
||||
|
||||||||
Total equity
|
$
|
4,619.2
|
$
|
4,184.3
|
||||
|
1.
|
DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS
|
2.
|
BASIS OF PRESENTATION
|
3.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
|
|
|
|
|
|
|
|
|
|
|
As at
|
|
|
|
|
|
|
December 31,
|
December 31,
|
|
|
Entity
|
Property/ Segment
|
Location
|
2017
|
2016
|
|
|
Subsidiaries:
|
|
|
|
|
|
|
(Consolidated)
|
|
|
|
|
|
|
Fairbanks Gold Mining, Inc.
|
Fort Knox
|
USA
|
100%
|
100%
|
|
|
Kinross Brasil Mineração S.A. ("KBM")
|
Paracatu
|
Brazil
|
100%
|
100%
|
|
|
Compania Minera Maricunga
|
Maricunga and Lobo Marte / Maricunga and Corporate and Other
|
Chile
|
100%
|
100%
|
|
|
Compania Minera Mantos de Oro
|
La Coipa / Corporate and Other
|
Chile
|
100%
|
100%
|
|
|
Echo Bay Minerals Company
|
Kettle River - Buckhorn
|
USA
|
100%
|
100%
|
|
|
Chukotka Mining and Geological
Company |
Kupol
|
Russian Federation
|
100%
|
100%
|
|
|
Northern Gold LLC
|
Dvoinoye/ Kupol
|
Russian Federation
|
100%
|
100%
|
|
|
Selene Holdings LP
(b)
|
White Gold/ Corporate and Other
|
Canada
|
-
(b)
|
100%
|
|
|
Tasiast Mauritanie Ltd. S.A.
|
Tasiast
|
Mauritania
|
100%
|
100%
|
|
|
Chirano Gold Mines Ltd. (Ghana)
(a)
|
Chirano
|
Ghana
|
90%
|
90%
|
|
|
KG Mining (Bald Mountain) Inc.
|
Bald Mountain
|
USA
|
100%
|
100%
|
|
|
Round Mountain Gold Corporation /
|
Round Mountain
|
USA
|
100%
|
100%
|
|
|
KG Mining (Round Mountain) Inc.
|
|
||||
|
|
|
|
|
|
|
|
Investment in associate:
|
|
|
|
|
|
|
(Equity accounted)
|
|
|
|
|
|
|
Compania Minera Casale
(c)
|
Cerro Casale/ Corporate and Other
|
Chile
|
-
(c)
|
25%
|
|
|
Interest in joint ventures:
|
|
|
|
|
|
|
(Equity accounted)
|
|
|
|
|
|
|
Sociedad Contractual Minera Puren
|
Puren/ Corporate and Other
|
Chile
|
65%
|
65%
|
|
|
Bald Mountain Exploration LLC
|
Bald Mountain Exploration Joint Venture/ Bald Mountain
|
USA
|
50%
|
50%
|
|
(a)
|
The Company holds a 90% interest in the Chirano Gold Mine with the Government of Ghana having the right to the remaining 10% interest.
|
(b)
|
On June 14, 2017, the Company completed the sale of its interest in Selene Holdings LP and the White Gold exploration project in the Yukon Territory to White Gold Corp. See Note 6 ii
.
|
(c)
|
On June 9, 2017, the Company completed the sale of its interest in Compania Minera Casale and the Cerro Casale project in Chile to Goldcorp Inc. See Note 6 i
.
|
(a)
|
Subsidiaries
|
(b)
|
Joint Arrangements
|
(c)
|
Associates
|
·
|
Monetary assets and liabilities are translated at the rates of exchange on the consolidated balance sheet date;
|
·
|
Non-monetary assets and liabilities are translated at historical exchange rates prevailing at each transaction date;
|
·
|
Revenue and expenses are translated at the exchange rate at the date of the transaction, except depreciation, depletion and amortization, which are translated at the rates of exchange applicable to the related assets, and share-based compensation expense, which is translated at the rates of exchange applicable on the date of grant of the share-based compensation; and
|
·
|
Exchange gains and losses on translation are included in earnings.
|
·
|
has begun planned principal activities;
|
·
|
has employees, intellectual property and other inputs and processes that could be applied to those inputs;
|
·
|
is pursuing a plan to produce outputs; and
|
·
|
will be able to obtain access to customers that will purchase the outputs.
|
·
|
gathering exploration data through topographical and geological studies;
|
·
|
exploratory drilling, trenching and sampling;
|
·
|
determining the volume and grade of the resource;
|
·
|
test work on geology, metallurgy, mining, geotechnical and environmental; and
|
·
|
conducting engineering, marketing and financial studies.
|
·
|
fair value of the estimated potential ounces, and
|
·
|
exploration properties.
|
(a)
|
Asset categories
|
·
|
Development and operating properties, which include capitalized development and stripping costs, cost of assets under construction, exploration and evaluation costs and mineral interests for those properties currently in operation, for which development has commenced, or for which proven and probable reserves have been declared; and
|
·
|
Pre-development properties, which include exploration and evaluation costs and mineral interests for those properties for which development has not commenced.
|
(b)
|
Depreciation, depletion and amortization
|
(c)
|
Derecognition
|
(a)
|
Financial instrument classification and measurement
|
(b)
|
Hedges
|
(c)
|
Impairment of financial assets
|
(a)
|
RSUs are recorded at fair value based on the market value of the shares at the grant date. The Company's compensation expense is recognized over the vesting period based on the number of units estimated to vest. Management estimates the number of awards likely to vest on grant and at each reporting date up to the vesting date. Annually, the estimated forfeiture rate is adjusted for actual forfeitures in the period. On vesting of RSUs, shares are generally issued from treasury.
|
(b)
|
RPSUs are subject to certain vesting requirements based on performance criteria over the vesting period established by the Company. RPSUs are recorded at fair value as follows: The portion of the RPSUs related to market conditions are recorded at fair value based on the application of a Monte Carlo pricing model at the date of grant and the portion related to non-market conditions is fair valued based on the market value of the shares at the date of grant. The Company's compensation expense is recognized over the vesting period based on the number of units estimated to vest. Management estimates the number of awards likely to vest on grant and at each reporting date up to the vesting date. Annually, the estimated forfeiture rate is adjusted for actual forfeitures in the period. On vesting of RPSUs, shares are generally issued from treasury.
|
• |
The significant risks and rewards of ownership have been transferred;
|
• |
Neither continuing managerial involvement to the degree usually associated with ownership, nor effective control over the goods sold, has been retained;
|
• |
The amount of revenue can be measured reliably;
|
• |
It is probable that the economic benefits associated with the transaction will flow to the Company; and
|
• |
The costs incurred or to be incurred in respect of the transaction can be measured reliably.
|
4.
|
RECENT ACCOUNTING PRONOUNCEMENTS
|
5.
|
SIGNIFICANT JUDGMENTS, ESTIMATES AND ASSUMPTIONS
|
i.
|
Significant Judgments in Applying Accounting Policies
|
(a)
|
Mineral Reserves and Mineral Resources
|
(b)
|
Depreciation, depletion and amortization
|
(c)
|
Taxes
|
ii.
|
Significant Accounting Estimates and Assumptions
|
(a)
|
Mineral Reserves and Mineral Resources
|
(b)
|
Purchase Price Allocation
|
(c)
|
Depreciation, depletion and amortization
|
(d)
|
Valuation of goodwill and long-lived assets
|
(e)
|
Inventories
|
(f)
|
Provision for reclamation and remediation
|
(g)
|
Deferred taxes
|
(h)
|
Contingencies
|
6.
|
ACQUISITIONS AND DISPOSITIONS
|
i.
|
Disposition of interest in Cerro Casale
|
ii.
|
Disposition of interest in White Gold
|
iii.
|
Disposition of interest in DeLamar
|
iv.
|
Acquisition of La Coipa mining concessions
|
v.
|
Acquisition of power plants in Brazil
|
7.
|
CONSOLIDATED FINANCIAL STATEMENT DETAILS
|
i.
|
Cash and cash equivalents:
|
|
December 31,
|
December 31,
|
||||||
|
2017
|
2016
|
||||||
Cash on hand and balances with banks
|
$
|
600.8
|
$
|
514.0
|
||||
Short-term deposits
|
425.0
|
313.0
|
||||||
|
$
|
1,025.8
|
$
|
827.0
|
|
December 31,
|
December 31,
|
||||||
|
2017
|
2016
|
||||||
Restricted cash
(a)
|
$
|
12.1
|
$
|
11.6
|
ii.
|
Accounts receivable and other assets:
|
December 31,
|
December 31,
|
|||||||
2017
|
2016
|
|||||||
Trade receivables
|
$
|
4.5
|
$
|
20.1
|
||||
Prepaid expenses
|
19.8
|
21.9
|
||||||
VAT receivable
|
36.2
|
59.3
|
||||||
Deposits
|
11.1
|
11.4
|
||||||
Other
|
19.7
|
14.6
|
||||||
$
|
91.3
|
$
|
127.3
|
iii.
|
Inventories:
|
|
December 31,
|
December 31,
|
||||||
|
2017
|
2016
|
||||||
Ore in stockpiles
(a)
|
$
|
242.6
|
$
|
242.3
|
||||
Ore on leach pads
(b)
|
358.5
|
301.6
|
||||||
In-process
|
122.3
|
78.6
|
||||||
Finished metal
|
91.5
|
49.1
|
||||||
Materials and supplies
|
519.3
|
534.1
|
||||||
|
1,334.2
|
1,205.7
|
||||||
Long-term portion of ore in stockpiles and ore on leach pads
(a),(b)
|
(239.9
|
)
|
(218.9
|
)
|
||||
|
$
|
1,094.3
|
$
|
986.8
|
(a)
|
Ore in stockpiles relates to the Company's operating mines. Ore in stockpiles includes low-grade material not scheduled for processing within the next twelve months which is included in other long-term assets on the consolidated balance sheet. See Note 7 vii.
|
(b)
|
Ore on leach pads relates to the Company's Tasiast, Fort Knox, Round Mountain and Bald Mountain mines. Based on current mine plans, the Company expects to place the last tonne of ore on its leach pads at Tasiast in 2018, Fort Knox in 2021, Bald Mountain in 2023 and Round Mountain in 2024. Ore on leach pads includes material not scheduled for processing within the next twelve months which is included in other long-term assets on the consolidated balance sheet. See Note 7 vii.
|
(c)
|
During the year ended December 31, 2016, inventory impairment charges of $71.3 million were recorded within cost of sales to reduce the carrying value of inventory to its net realizable value. See Note 8 ii.
|
iv.
|
Property, plant and equipment:
|
|
Mineral Interests
(a)
|
|||||||||||||||
|
Land, plant and
equipment
|
Development and operating properties
|
Pre-development properties
|
Total
|
||||||||||||
Cost
|
||||||||||||||||
Balance at January 1, 2017
|
$
|
7,791.3
|
$
|
7,970.2
|
$
|
164.3
|
$
|
15,925.8
|
||||||||
Additions
|
626.9
|
298.5
|
-
|
925.4
|
||||||||||||
Capitalized interest
|
13.8
|
11.3
|
-
|
25.1
|
||||||||||||
Disposals
|
(44.5
|
)
|
-
|
(133.2
|
)
|
(177.7
|
)
|
|||||||||
Other
|
(12.8
|
)
|
31.5
|
(15.6
|
)
|
3.1
|
||||||||||
Balance at December 31, 2017
|
8,374.7
|
8,311.5
|
15.5
|
16,701.7
|
||||||||||||
|
||||||||||||||||
Accumulated depreciation, depletion, amortization and impairment
|
||||||||||||||||
Balance at January 1, 2017
|
$
|
(5,076.4
|
)
|
$
|
(5,852.4
|
)
|
$
|
(79.4
|
)
|
$
|
(11,008.2
|
)
|
||||
Depreciation, depletion and amortization
|
(529.3
|
)
|
(371.5
|
)
|
-
|
(900.8
|
)
|
|||||||||
Impairment, net of reversals
(b)
|
260.9
|
(282.4
|
)
|
-
|
(21.5
|
)
|
||||||||||
Disposals
|
38.8
|
-
|
79.2
|
118.0
|
||||||||||||
Other
|
(2.4
|
)
|
0.2
|
0.2
|
(2.0
|
)
|
||||||||||
Balance at December 31, 2017
|
(5,308.4
|
)
|
(6,506.1
|
)
|
-
|
(11,814.5
|
)
|
|||||||||
|
||||||||||||||||
Net book value
|
$
|
3,066.3
|
$
|
1,805.4
|
$
|
15.5
|
$
|
4,887.2
|
||||||||
|
||||||||||||||||
Amount included above as at December 31, 2017:
|
||||||||||||||||
Assets under construction
|
$
|
534.2
|
$
|
116.4
|
$
|
-
|
$
|
650.6
|
||||||||
Assets not being depreciated
(c)
|
$
|
723.3
|
$
|
342.8
|
$
|
15.5
|
$
|
1,081.6
|
(a)
|
At December 31, 2017, the significant development and operating properties include Fort Knox, Round Mountain, Bald Mountain, Paracatu, Kupol, Tasiast, Chirano and Lobo-Marte.
|
(b)
|
At December 31, 2017, an impairment charge was recorded at Paracatu and impairment reversals were recorded at Fort Knox and Tasiast, entirely related to property, plant and equipment. See Note 8 i.
|
(c)
|
Assets not being depreciated relate to land, capitalized exploration and evaluation costs, assets under construction, which relate to expansion projects, and other assets that are in various stages of being readied for use.
|
|
Mineral Interests
(a)
|
|||||||||||||||
|
Land, plant and
equipment
|
Development and operating properties
|
Pre-development properties
|
Total
|
||||||||||||
Cost
|
||||||||||||||||
Balance at January 1, 2016
|
$
|
7,332.2
|
$
|
7,651.4
|
$
|
164.3
|
$
|
15,147.9
|
||||||||
Additions
|
445.6
|
207.7
|
-
|
653.3
|
||||||||||||
Acquisitions
(b)
|
417.4
|
400.1
|
-
|
817.5
|
||||||||||||
Book value of Round Mountain prior to
remeasurement on acquisition |
(359.4
|
)
|
(294.7
|
)
|
-
|
(654.1
|
)
|
|||||||||
Capitalized interest
|
10.4
|
4.8
|
-
|
15.2
|
||||||||||||
Disposals
|
(57.8
|
)
|
(0.7
|
)
|
-
|
(58.5
|
)
|
|||||||||
Other
|
2.9
|
1.6
|
-
|
4.5
|
||||||||||||
Balance at December 31, 2016
|
7,791.3
|
7,970.2
|
164.3
|
15,925.8
|
||||||||||||
|
||||||||||||||||
Accumulated depreciation, depletion, amortization and impairment
|
||||||||||||||||
Balance at January 1, 2016
|
$
|
(4,835.1
|
)
|
$
|
(5,639.7
|
)
|
$
|
(79.4
|
)
|
$
|
(10,554.2
|
)
|
||||
Depreciation, depletion and amortization
|
(528.1
|
)
|
(399.4
|
)
|
-
|
(927.5
|
)
|
|||||||||
Impairment, net of reversals
(c)
|
(68.3
|
)
|
-
|
-
|
(68.3
|
)
|
||||||||||
Book value of Round Mountain prior to
remeasurement on acquisition |
305.4
|
187.6
|
-
|
493.0
|
||||||||||||
Disposals
|
50.4
|
-
|
-
|
50.4
|
||||||||||||
Other
|
(0.7
|
)
|
(0.9
|
)
|
-
|
(1.6
|
)
|
|||||||||
Balance at December 31, 2016
|
(5,076.4
|
)
|
(5,852.4
|
)
|
(79.4
|
)
|
(11,008.2
|
)
|
||||||||
|
||||||||||||||||
Net book value
|
$
|
2,714.9
|
$
|
2,117.8
|
$
|
84.9
|
$
|
4,917.6
|
||||||||
|
||||||||||||||||
Amount included above as at December 31, 2016:
|
||||||||||||||||
Assets under construction
|
$
|
373.5
|
$
|
119.4
|
$
|
-
|
$
|
492.9
|
||||||||
Assets not being depreciated
(d)
|
$
|
545.3
|
$
|
322.3
|
$
|
84.9
|
$
|
952.5
|
(a)
|
At December 31, 2016, the significant development and operating properties include Fort Knox, Round Mountain, Bald Mountain, Paracatu, Kupol, Tasiast, Chirano and Lobo-Marte. Included in pre-development properties are White Gold and other exploration properties.
|
(b)
|
Bald Mountain and the remaining 50% interest in Round Mountain were acquired on January 11, 2016.
|
(c)
|
At September 30, 2016, an impairment charge was recorded against property, plant and equipment at Maricunga. See Note 8 i.
|
(d)
|
Assets not being depreciated relate to land, capitalized exploration and evaluation costs, assets under construction, which relate to expansion projects, and other assets that are in various stages of being readied for use.
|
v.
|
Goodwill:
|
vi.
|
Long-term investments:
|
|
December 31, 2017
|
December 31, 2016
|
||||||||||||||
|
Fair value
|
Gains (losses) in AOCI
|
Fair value
|
Gains (losses) in AOCI
|
||||||||||||
Investments in an unrealized gain position
|
$
|
125.1
|
$
|
26.6
|
$
|
110.2
|
$
|
30.3
|
||||||||
Investments in an unrealized loss position
|
62.9
|
(19.7
|
)
|
32.7
|
(6.7
|
)
|
||||||||||
|
$
|
188.0
|
$
|
6.9
|
$
|
142.9
|
$
|
23.6
|
vii.
|
Other long-term assets:
|
|
December 31,
|
December 31,
|
||||||
|
2017
|
2016
|
||||||
Long-term portion of ore in stockpiles and ore on leach pads
(a)
|
$
|
239.9
|
$
|
218.9
|
||||
Deferred charges, net of amortization
|
8.9
|
8.6
|
||||||
Long-term receivables
(b)
|
272.8
|
147.2
|
||||||
Advances for the purchase of capital equipment
|
6.4
|
2.8
|
||||||
Other
|
46.0
|
33.8
|
||||||
|
$
|
574.0
|
$
|
411.3
|
(a)
|
Ore in stockpiles and on leach pads represents low-grade material not scheduled for processing within the next twelve months. At December 31, 2017, long-term ore in stockpiles was at the Company's Fort Knox, Kupol, Tasiast, Chirano and Paracatu mines, and long-term ore on leach pads was at the Company's Fort Knox, Round Mountain, and Tasiast mines.
|
(b)
|
Long-term receivables includes an estimated benefit of $124.4 million related to the enactment of U.S. Tax Reform legislation in December 2017. See Note 17.
|
viii.
|
Accounts payable and accrued liabilities:
|
|
December 31,
|
December 31,
|
||||||
|
2017
|
2016
|
||||||
Trade payables
|
$
|
77.4
|
$
|
86.8
|
||||
Accrued liabilities
|
274.2
|
251.4
|
||||||
Employee related accrued liabilities
|
131.0
|
126.6
|
||||||
|
$
|
482.6
|
$
|
464.8
|
ix.
|
Accumulated other comprehensive income:
|
Long-term Investments
|
Derivative
Contracts
|
Total
|
||||||||||
Balance at December 31, 2015
|
$
|
(18.7
|
)
|
$
|
(12.6
|
)
|
$
|
(31.3
|
)
|
|||
Other comprehensive income before tax
|
42.3
|
37.6
|
79.9
|
|||||||||
Tax
|
-
|
(9.5
|
)
|
(9.5
|
)
|
|||||||
Balance at December 31, 2016
|
$
|
23.6
|
$
|
15.5
|
$
|
39.1
|
||||||
Other comprehensive loss before tax
|
(16.4
|
)
|
(2.4
|
)
|
(18.8
|
)
|
||||||
Tax
|
(0.3
|
)
|
1.1
|
0.8
|
||||||||
Balance at December 31, 2017
|
$
|
6.9
|
$
|
14.2
|
$
|
21.1
|
x.
|
Other operating expense:
|
Years ended December 31,
|
||||||||
2017
|
2016
|
|||||||
Other operating expense
|
$
|
129.6
|
$
|
209.3
|
||||
$
|
129.6
|
$
|
209.3
|
xi.
|
Other income (expense) – net:
|
|
Years ended December 31,
|
|||||||
|
2017
|
2016
|
||||||
|
||||||||
Gain on disposition of associate and other interests - net
(a)
|
$
|
55.2
|
$
|
-
|
||||
Gain on disposition of other assets - net
|
1.9
|
9.7
|
||||||
Reversal of impairment charges
(b)
|
97.0
|
-
|
||||||
Foreign exchange losses
|
(4.9
|
)
|
(6.3
|
)
|
||||
Net non-hedge derivative gains (losses)
|
0.3
|
(0.4
|
)
|
|||||
Other
(c)
|
38.6
|
19.5
|
||||||
|
$
|
188.1
|
$
|
22.5
|
(a)
|
During the year ended December 31, 2017, the Company recognized a gain on disposition of its interests in Cerro Casale and Quebrada Seca of $12.7 million, a loss on disposition of its interest in White Gold of $1.7 million, and a gain on disposition of its interest in DeLamar of $44.2 million. See Note 6.
|
(b)
|
During the year ended December 31, 2017, the Company recognized a reversal of impairment charges related to the sale of its interest in Cerro Casale. See Note 6 i.
|
(c)
|
Other includes insurance recoveries of $17.5 million and $9.9 million related to a settlement of a royalty agreement.
|
|
xii.
|
Finance expense:
|
Years ended December 31,
|
||||||||
2017
|
2016
|
|||||||
Accretion on reclamation and remediation obligations
|
$
|
(31.3
|
)
|
$
|
(34.2
|
)
|
||
Interest expense, including accretion on debt
(a)
|
(86.5
|
)
|
(100.4
|
)
|
||||
$
|
(117.8
|
)
|
$
|
(134.6
|
)
|
(a)
|
During the years ended December 31, 2017 and 2016, $25.1 million and $15.2 million, respectively, of interest was capitalized to property, plant and equipment. See Note 7 iv.
|
xiii.
|
Employee benefits expenses:
|
Years ended December 31,
|
||||||||
2017
|
2016
|
|||||||
Salaries, short-term incentives, and other benefits
|
$
|
678.5
|
$
|
665.7
|
||||
Share-based payments
|
25.9
|
26.8
|
||||||
Other
|
11.2
|
19.2
|
||||||
$
|
715.6
|
$
|
711.7
|
8.
|
IMPAIRMENT, NET OF REVERSALS
|
Years ended December 31,
|
||||||||
2017
|
2016
|
|||||||
Property, plant and equipment (i)
|
$
|
21.5
|
$
|
68.3
|
||||
Inventory and other assets (ii)
|
-
|
71.3
|
||||||
$
|
21.5
|
$
|
139.6
|
i.
|
Property, plant and equipment
|
ii.
|
Inventory and other assets
|
9.
|
INVESTMENTS IN ASSOCIATE AND JOINT VENTURES
|
|
December 31,
|
December 31,
|
||||||
|
2017
|
2016
|
||||||
Cerro Casale
(a)
|
$
|
-
|
$
|
139.5
|
||||
Puren
|
18.2
|
18.6
|
||||||
Bald Mountain Exploration Joint Venture
(b)
|
5.5
|
5.5
|
||||||
|
$
|
23.7
|
$
|
163.6
|
(a)
|
On June 9, 2017, the Company completed the sale of its interest in the Cerro Casale project in Chile to Goldcorp Inc. See Note 6i.
|
(b)
|
As part of the Company's acquisition of Bald Mountain on January 11, 2016, it acquired an associated land package, of which approximately 40% is subject to a 50/50 joint venture between the Company and Barrick.
|
|
Years ended December 31,
|
|||||||
|
2017
|
2016
|
||||||
Cerro Casale
(a), (b)
|
$
|
(0.5
|
)
|
$
|
(0.6
|
)
|
||
Puren
(a)
|
(0.1
|
)
|
(0.2
|
)
|
||||
Bald Mountain Exploration Joint Venture
(a)
|
(0.7
|
)
|
(0.4
|
)
|
||||
|
$
|
(1.3
|
)
|
$
|
(1.2
|
)
|
(a)
|
Represents Kinross' share of the net earnings (loss) and other comprehensive income (loss).
|
(b)
|
On June 9, 2017, the Company completed the sale of its interest in Cerro Casale project in Chile to Goldcorp Inc. See Note 6i.
|
10.
|
FAIR VALUE MEASUREMENT
|
(a)
|
Recurring fair value measurement:
|
Level 1
|
Level 2
|
Level 3
|
Aggregate
Fair Value
|
|||||||||||||
Available-for-sale investments
|
$
|
188.0
|
$
|
-
|
$
|
-
|
$
|
188.0
|
||||||||
Derivative contracts:
|
||||||||||||||||
Foreign currency forward and collar contracts
|
-
|
6.1
|
-
|
6.1
|
||||||||||||
Energy swap contracts
|
-
|
12.9
|
-
|
12.9
|
||||||||||||
Total return swap contracts
|
-
|
0.6
|
-
|
0.6
|
||||||||||||
$
|
188.0
|
$
|
19.6
|
$
|
-
|
$
|
207.6
|
|
December 31, 2017
|
December 31, 2016
|
||||||||||||||
|
Asset / (Liability)
|
AOCI
|
Asset / (Liability)
|
AOCI
|
||||||||||||
Fair Value
|
Fair Value
|
|||||||||||||||
Currency contracts
|
||||||||||||||||
Foreign currency forward and collar
contracts (a) (i) |
6.1
|
4.4
|
8.9
|
5.9
|
||||||||||||
|
||||||||||||||||
Commodity contracts
|
||||||||||||||||
Energy swap contracts
(b)
(ii)
|
12.9
|
9.8
|
12.3
|
9.6
|
||||||||||||
|
||||||||||||||||
Other contracts
|
||||||||||||||||
Total return swap contracts (iii)
|
0.6
|
-
|
(6.2
|
)
|
-
|
|||||||||||
|
||||||||||||||||
|
||||||||||||||||
Total all contracts
|
$
|
19.6
|
$
|
14.2
|
$
|
15.0
|
$
|
15.5
|
||||||||
|
||||||||||||||||
Unrealized fair value of derivative assets
|
||||||||||||||||
Current
|
17.0
|
16.1
|
||||||||||||||
Non-current
|
3.9
|
6.0
|
||||||||||||||
|
$
|
20.9
|
$
|
22.1
|
||||||||||||
Unrealized fair value of derivative liabilities
|
||||||||||||||||
Current
|
(1.1
|
)
|
(7.1
|
)
|
||||||||||||
Non-current
|
(0.2
|
)
|
-
|
|||||||||||||
|
$
|
(1.3
|
)
|
$
|
(7.1
|
)
|
||||||||||
Total net fair value
|
$
|
19.6
|
$
|
15.0
|
(a)
|
Of the total amount recorded in AOCI at December 31, 2017, $4.2 million will be reclassified to net earnings within the next 12 months as a result of settling the contracts.
|
(b)
|
Of the total amount recorded in AOCI at December 31, 2017, $7.3 million will be reclassified to net earnings within the next 12 months as a result of settling the contracts.
|
(i)
|
Foreign currency forward and collar contracts
|
Foreign currency
|
2018
|
2019
|
2020
|
|||||||||
Brazilian real forward buy contracts
|
||||||||||||
(in millions of U.S. dollars)
|
$
|
69.6
|
$
|
-
|
$
|
-
|
||||||
Average price (Brazilian reais)
|
3.32
|
-
|
-
|
|||||||||
Brazilian real zero cost collars
|
||||||||||||
(in millions of U.S. dollars)
|
$
|
25.2
|
$
|
60.0
|
$
|
-
|
||||||
Average put strike (Brazilian reais)
|
3.75
|
3.45
|
-
|
|||||||||
Average call strike (Brazilian reais)
|
4.12
|
3.64
|
-
|
|||||||||
Canadian dollar forward buy contracts
|
||||||||||||
(in millions of U.S. dollars)
|
$
|
40.5
|
$
|
18.0
|
$
|
-
|
||||||
Average rate (Canadian dollars)
|
1.35
|
1.28
|
-
|
|||||||||
Russian rouble zero cost collars
|
||||||||||||
(in millions of U.S. dollars)
|
$
|
24.0
|
$
|
-
|
$
|
-
|
||||||
Average put strike (Russian roubles)
|
60.0
|
-
|
-
|
|||||||||
Average call strike (Russian roubles)
|
71.2
|
-
|
-
|
·
|
$58.5 million Canadian dollars at an average rate of 1.33 maturing in 2018 to 2019;
|
·
|
$24.0 million Russian roubles with an average put strike of 60.00 and an average call strike of 71.24 maturing in 2018;
|
·
|
$69.6 million Brazilian reais at an average rate of 3.32 maturing in 2018; and
|
·
|
$60.0 million Brazilian reais with an average put strike of 3.45 and an average call strike of 3.64 maturing in 2019.
|
·
|
Brazilian real forward buy contracts – unrealized loss of $0.7 million (December 31, 2016 – $nil);
|
·
|
Brazilian real zero cost collar contracts – unrealized gain of $1.8 million (December 31, 2016 – $6.0 million gain);
|
·
|
Canadian dollar forward buy contracts – unrealized gain of $2.6 million (December 31, 2016 – $0.2 million loss); and
|
·
|
Russian rouble zero cost collar contracts – unrealized gain of $0.7 million (December 31, 2016 – $0.1 million gain).
|
(ii)
|
Energy swap contracts
|
Energy
|
2018
|
2019
|
2020
|
|||||||||
WTI oil swap contracts (barrels)
|
907,482
|
594,451
|
90,000
|
|||||||||
Average price
|
$
|
48.48
|
$
|
49.86
|
$
|
52.40
|
·
|
1,048,000 barrels of WTI oil at an average rate of $49.46 per barrel maturing from 2017 to 2020.
|
·
|
WTI oil swap contracts – unrealized gain of $9.8 million (December 31, 2016 – $9.6 million gain)
.
|
(iii)
|
Total return swap contracts
|
(b)
|
Non-recurring fair value measurement:
|
(c)
|
Fair value of financial assets and liabilities not measured and recognized at fair value:
|
11.
|
CAPITAL AND FINANCIAL RISK MANAGEMENT
|
i.
|
Capital management
|
·
|
Ensure the Company has sufficient cash available to support the mining, exploration, and other areas of the business in any gold price environment;
|
·
|
Ensure the Company has the capital and capacity to support a long-term growth strategy;
|
·
|
Provide investors with a superior rate of return on their invested capital;
|
·
|
Ensure compliance with all bank covenant ratios; and
|
·
|
Minimize counterparty credit risk.
|
|
December 31,
|
December 31,
|
||||||
|
2017
|
2016
|
||||||
Long-term debt
|
$
|
1,732.6
|
$
|
1,733.2
|
||||
Current portion of long-term debt
|
-
|
-
|
||||||
Total debt
|
1,732.6
|
1,733.2
|
||||||
Common shareholders' equity
|
4,583.6
|
4,145.5
|
||||||
Total debt / total debt and common shareholders' equity ratio
|
27.4%
|
|
29.5%
|
|
||||
Company target
|
0 – 30%
|
|
0 – 30%
|
|
||||
|
ii.
|
Gold and silver price risk management
|
iii.
|
Currency risk management
|
|
10% strengthening in
U.S. dollar |
10% weakening in
U.S. dollar |
||||||||||
|
Foreign currency net working capital
|
Effect on earnings before taxes, gain (loss)
(a)
|
Effect on earnings before taxes, gain (loss)
(a)
|
|||||||||
Canadian dollars
|
(24.5
|
)
|
2.2
|
(2.7
|
)
|
|||||||
Brazilian reais
|
(37.2
|
)
|
3.4
|
(4.1
|
)
|
|||||||
Chilean pesos
|
(15.5
|
)
|
1.4
|
(1.7
|
)
|
|||||||
Russian roubles
|
14.9
|
(1.4
|
)
|
1.7
|
||||||||
Euros
|
(3.1
|
)
|
0.3
|
(0.3
|
)
|
|||||||
Mauritanian ouguiya
|
(21.8
|
)
|
2.0
|
(2.4
|
)
|
|||||||
Ghanaian cedi
|
12.9
|
(1.2
|
)
|
1.4
|
||||||||
Other
(b)
|
(0.8
|
)
|
0.1
|
(0.1
|
)
|
(a)
|
As described in Note 3 (ii), the Company translates its monetary assets and liabilities into U.S. dollars at the rates of exchange at the consolidated balance sheet dates. Gains and losses on translation of foreign currencies are included in earnings.
|
(b)
|
Includes British pounds, Australian dollars and South African rand.
|
|
10% strengthening in
U.S. dollar |
10% weakening in
U.S. dollar |
||||||
|
Effect on OCI before
taxes, gain (loss) (a) |
Effect on OCI before
taxes, gain (loss) (a) |
||||||
Canadian dollars
|
$
|
(5.6
|
)
|
$
|
6.8
|
|||
Brazilian reais
|
$
|
(12.5
|
)
|
$
|
15.6
|
|||
Russian roubles
|
$
|
(1.1
|
)
|
$
|
2.2
|
(a)
|
Upon maturity of these contracts, the amounts in OCI before taxes will reverse against hedged items that the contracts relate to, which may be to earnings or property, plant and equipment.
|
iv.
|
Energy price risk
|
|
10% increase in
price |
10% decrease in
price |
||||||
|
Effect on OCI before
taxes, gain (loss) (a) |
Effect on OCI before
taxes, gain (loss) (a) |
||||||
WTI oil
|
$
|
9.0
|
$
|
(8.9
|
)
|
(a)
|
Upon maturity of these contracts, the amounts in OCI before taxes will reverse against hedged items that the contracts relate to, which will be to earnings.
|
v.
|
Liquidity risk
|
|
2018
|
2019, 2020
|
2021, 2022
|
2023+
|
|
|||||||||||||||
|
Total
|
Within 1 year
|
2 to 3 years
|
4 to 5 years
|
More than 5 years
|
|||||||||||||||
Long-term debt
(a)
|
$
|
2,684.0
|
$
|
95.6
|
$
|
190.2
|
$
|
664.5
|
$
|
1,733.7
|
(a)
|
Includes long-term debt, interest and the full face value of the senior notes.
|
vi.
|
Credit risk management
|
12.
|
LONG-TERM DEBT AND CREDIT FACILITIES
|
|
|
||||||||||||||||||||||||||||
|
|
December 31, 2017
|
December 31, 2016
|
||||||||||||||||||||||||||
|
|
Interest Rates
|
Nominal Amount
|
Deferred Financing Costs
|
Carrying Amount
(a)
|
Fair Value
(b)
|
Carrying Amount
(a)
|
Fair Value
(b)
|
|||||||||||||||||||||
|
|
||||||||||||||||||||||||||||
Corporate term loan facility
|
(i)
|
Variable
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
497.4
|
$
|
497.4
|
|||||||||||||||
Senior notes
|
(ii)
|
4.50%-6.875%
|
|
1,745.7
|
(13.1
|
)
|
1,732.6
|
1,848.4
|
1,235.8
|
1,245.7
|
|||||||||||||||||||
Long-term debt
|
|
$
|
1,745.7
|
$
|
(13.1
|
)
|
$
|
1,732.6
|
$
|
1,848.4
|
$
|
1,733.2
|
$
|
1,743.1
|
|
2018
|
2019
|
2020
|
2021
|
2022
|
2023 and thereafter
|
Total
|
|||||||||||||||||||||
Senior notes
|
$
|
-
|
$
|
-
|
$
|
500.0
|
$
|
-
|
$
|
1,250.0
|
$
|
1,750.0
|
||||||||||||||||
Total debt payable
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
500.0
|
$
|
-
|
$
|
1,250.0
|
$
|
1,750.0
|
(i)
|
Corporate revolving credit and term loan facilities
|
Type of credit
|
|
Dollar based LIBOR loan:
|
|
Revolving credit facility
|
LIBOR plus 2.00%
|
Letters of credit
|
1.33-2.00%
|
Standby fee applicable to unused availability
|
0.40%
|
(ii)
|
Senior notes
|
(iii)
|
Other
|
(iv)
|
Changes in liabilities arising from financing activities
|
|
Year ended December 31, 2017
|
|||||||||||||||||||||||||||||||||||||||||||
Changes from financing cash flows
|
Other changes
|
|||||||||||||||||||||||||||||||||||||||||||
|
Balance as at January 1, 2017
|
Debt issued
|
Debt repayments
|
Interest paid
|
Other
|
Interest expense
|
Capitalized interest
|
Capitalized interest paid
|
Other cash changes
|
Other non-cash changes
|
Balance as at December 31, 2017
|
|||||||||||||||||||||||||||||||||
Long-term debt
|
$
|
1,733.2
|
$
|
494.7
|
$
|
(500.0
|
)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
-
|
$
|
4.7
|
$
|
1,732.6
|
||||||||||||||||||||||
Accrued interest payable
(a)
|
23.4
|
-
|
-
|
(62.9
|
)
|
-
|
86.5
|
25.1
|
(18.0
|
)
|
(12.0
|
)
|
(8.3
|
)
|
33.8
|
|||||||||||||||||||||||||||||
|
$
|
1,756.6
|
$
|
494.7
|
$
|
(500.0
|
)
|
$
|
(62.9
|
)
|
$
|
-
|
$
|
86.5
|
$
|
25.1
|
$
|
(18.0
|
)
|
$
|
(12.0
|
)
|
$
|
(3.6
|
)
|
$
|
1,766.4
|
(a)
|
Included in Accounts Payable and Accrued Liabilities.
|
|
Year ended December 31, 2016
|
|||||||||||||||||||||||||||||||||||||||||||
|
Changes from financing cash flows
|
Other changes
|
||||||||||||||||||||||||||||||||||||||||||
|
Balance as at January 1, 2016
|
Debt issued
|
Debt repayments
|
Interest paid
|
Other
|
Interest expense
|
Capitalized interest
|
Capitalized interest paid
|
Other cash changes
|
Other non-cash changes
|
Balance as at December 31, 2016
|
|||||||||||||||||||||||||||||||||
Long-term debt
|
$
|
1,981.4
|
$
|
175.0
|
$
|
(425.0
|
)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(1.2
|
)
|
$
|
3.0
|
$
|
1,733.2
|
||||||||||||||||||||
Accrued interest payable
(a)
|
26.7
|
-
|
-
|
(73.5
|
)
|
-
|
100.4
|
15.2
|
(21.8
|
)
|
(12.3
|
)
|
(11.3
|
)
|
23.4
|
|||||||||||||||||||||||||||||
|
$
|
2,008.1
|
$
|
175.0
|
$
|
(425.0
|
)
|
$
|
(73.5
|
)
|
$
|
-
|
$
|
100.4
|
$
|
15.2
|
$
|
(21.8
|
)
|
$
|
(13.5
|
)
|
$
|
(8.3
|
)
|
$
|
1,756.6
|
(a)
|
Included in Accounts Payable and Accrued Liabilities.
|
13.
|
PROVISIONS
|
|
Reclamation and remediation obligations (i)
|
Other
|
Total
|
|||||||||
Balance at January 1, 2017
|
$
|
908.3
|
$
|
46.1
|
$
|
954.4
|
||||||
Additions
|
9.7
|
6.2
|
15.9
|
|||||||||
Reductions
|
(19.4
|
)
|
(16.4
|
)
|
(35.8
|
)
|
||||||
Reclamation spending
|
(42.6
|
)
|
-
|
(42.6
|
)
|
|||||||
Accretion
|
31.3
|
-
|
31.3
|
|||||||||
Reclamation expense
|
11.4
|
-
|
11.4
|
|||||||||
Dispositions
(a)
|
(37.3
|
)
|
(0.3
|
)
|
(37.6
|
)
|
||||||
Balance at December 31, 2017
|
$
|
861.4
|
$
|
35.6
|
$
|
897.0
|
||||||
|
||||||||||||
Current portion
|
62.3
|
4.2
|
66.5
|
|||||||||
Non-current portion
|
799.1
|
31.4
|
830.5
|
|||||||||
|
$
|
861.4
|
$
|
35.6
|
$
|
897.0
|
(a)
|
On November 3, 2017, the Company completed the sale of its interest in the DeLamar reclamation property. See Note 6 iii.
|
(i)
|
Reclamation and remediation obligations
|
14.
|
COMMON SHARE CAPITAL
|
|
Years ended December 31, 2017
|
Year ended December 31, 2016
|
||||||||||||||
|
Number of shares
|
Amount
|
Number of shares
|
Amount
|
||||||||||||
|
(000's)
|
(000's)
|
||||||||||||||
Common shares
|
||||||||||||||||
Balance at January 1,
|
1,245,050
|
$
|
14,894.2
|
1,146,540
|
$
|
14,603.5
|
||||||||||
Equity issuance
(a)
|
-
|
-
|
95,910
|
275.7
|
||||||||||||
Under share option and restricted share plans
|
1,954
|
8.3
|
2,600
|
15.0
|
||||||||||||
Balance at end of period
|
1,247,004
|
$
|
14,902.5
|
1,245,050
|
$
|
14,894.2
|
||||||||||
|
||||||||||||||||
Total common share capital
|
$
|
14,902.5
|
$
|
14,894.2
|
(a)
|
On March 4, 2016, the Company completed a public equity offering of 83.4 million common shares at a price of $3.00 per common share for gross proceeds of approximately $250.0 million. On March 15, 2016, the underwriters elected to exercise an option to purchase up to an additional 15% of the offering to cover over-allotments, and as a result, an additional 12.5 million common shares were issued at a price of $3.00 per common share. The sale was completed on March 18, 2016 and increased the gross proceeds from the offering to $287.7 million. Transaction costs of $12.0 million resulted in net proceeds of $275.7 million.
|
15.
|
SHARE-BASED PAYMENTS
|
|
Years ended December 31,
|
|||||||
|
2017
|
2016
|
||||||
Share option plan expense (i)
|
$
|
2.4
|
$
|
2.8
|
||||
Restricted share unit plan expense, including restricted performance shares (ii)
|
23.4
|
24.0
|
||||||
Deferred share units expense (iii)
|
1.2
|
1.2
|
||||||
Employer portion of employee share purchase plan (iv)
|
2.0
|
2.0
|
||||||
Total share-based compensation
|
$
|
29.0
|
$
|
30.0
|
(i)
|
Share option plan
|
|
2017
|
2016
|
||||||||||||||
|
Number of options (000's)
|
Weighted average exercise price (CDN$/option)
|
Number of options (000's)
|
Weighted average exercise price (CDN$/option)
|
||||||||||||
Balance at January 1
|
12,429
|
$
|
6.95
|
13,513
|
$
|
7.57
|
||||||||||
Granted
|
1,669
|
5.06
|
1,872
|
4.17
|
||||||||||||
Exercised
|
(265
|
)
|
4.09
|
(708
|
)
|
5.17
|
||||||||||
Forfeited
|
(1,567
|
)
|
8.74
|
(1,300
|
)
|
6.57
|
||||||||||
Expired
|
(93
|
)
|
7.38
|
(948
|
)
|
12.17
|
||||||||||
Outstanding at end of period
|
12,173
|
$
|
6.52
|
12,429
|
$
|
6.95
|
||||||||||
Exercisable at end of period
|
8,539
|
$
|
7.41
|
7,911
|
$
|
8.51
|
Options outstanding
|
Options exercisable
|
|||||||||||||||||||||||||||||
Exercise price range in CDN$:
|
Number of options
|
Weighted average exercise price
|
Weighted average remaining contractual life
|
Number of options
|
Weighted average exercise price
|
Weighted average remaining contractual life
|
||||||||||||||||||||||||
(000's
|
)
|
(CDN$)
|
(years)
|
(000's
|
)
|
(CDN$)
|
(years)
|
|||||||||||||||||||||||
$
|
2.96
|
$
|
4.22
|
4,169
|
$
|
3.87
|
4.12
|
2,151
|
$
|
3.81
|
3.81
|
|||||||||||||||||||
4.23
|
9.53
|
6,145
|
6.41
|
3.32
|
4,528
|
6.89
|
2.31
|
|||||||||||||||||||||||
9.54
|
14.31
|
1,140
|
10.70
|
1.20
|
1,141
|
10.70
|
1.20
|
|||||||||||||||||||||||
14.32
|
16.25
|
719
|
16.25
|
0.15
|
719
|
16.25
|
0.15
|
|||||||||||||||||||||||
12,173
|
$
|
6.52
|
3.21
|
8,539
|
$
|
7.41
|
2.36
|
|
2017
|
2016
|
||||||
|
||||||||
Weighted average share price
(CDN$)
|
$
|
5.06
|
$
|
4.17
|
||||
Expected dividend yield
|
0.0
|
%
|
0.0
|
%
|
||||
Expected volatility
|
49.3
|
%
|
56.9
|
%
|
||||
Risk-free interest rate
|
1.1
|
%
|
0.6
|
%
|
||||
Expected option life (in years)
|
4.5
|
4.5
|
||||||
Weighted average fair value per stock option granted (CDN$)
|
$
|
2.09
|
$
|
1.92
|
(ii)
|
Restricted Share Plan
|
(a)
|
Restricted share units
|
|
2017
|
2016
|
||||||||||||||
|
Number of units (000's)
|
Weighted average fair value (CDN$/unit)
|
Number of units (000's)
|
Weighted average fair value (CDN$/unit)
|
||||||||||||
Balance at January 1
|
9,219
|
$
|
4.01
|
9,041
|
$
|
4.41
|
||||||||||
Granted
|
5,128
|
5.07
|
5,502
|
4.14
|
||||||||||||
Redeemed
|
(4,847
|
)
|
4.01
|
(4,435
|
)
|
4.96
|
||||||||||
Forfeited
|
(1,223
|
)
|
4.24
|
(889
|
)
|
4.11
|
||||||||||
Outstanding at end of period
|
8,277
|
$
|
4.63
|
9,219
|
$
|
4.01
|
(b)
|
Restricted performance share units
|
|
2017
|
2016
|
||||||||||||||
|
Number of units (000's)
|
Weighted average fair value (CDN$/unit)
|
Number of units (000's)
|
Weighted average fair value (CDN$/unit)
|
||||||||||||
Balance at January 1
|
4,993
|
$
|
4.51
|
4,313
|
$
|
4.88
|
||||||||||
Granted
|
1,209
|
5.32
|
1,887
|
4.47
|
||||||||||||
Redeemed
|
(889
|
)
|
5.39
|
(495
|
)
|
6.55
|
||||||||||
Forfeited
|
(427
|
)
|
4.81
|
(712
|
)
|
5.20
|
||||||||||
Outstanding at end of period
|
4,886
|
$
|
4.52
|
4,993
|
$
|
4.51
|
(iii)
|
Deferred share unit plan
|
|
Years ended December 31,
|
|||||||
|
2017
|
2016
|
||||||
DSUs granted (000's)
|
297
|
308
|
||||||
Weighted average grant-date fair value (CDN$/ unit)
|
$
|
5.15
|
$
|
4.97
|
(iv)
|
Employee share purchase plan ("SPP")
|
16.
|
EARNINGS (LOSS) PER SHARE
|
(Number of common shares in thousands)
|
Years ended December 31,
|
|||||||
|
2017
|
2016
|
||||||
Basic weighted average shares outstanding:
|
1,246,619
|
1,227,007
|
||||||
Weighted average shares dilution adjustments:
|
||||||||
Stock options
|
1,606
|
-
|
||||||
Restricted shares
|
3,905
|
-
|
||||||
Restricted performance shares
|
4,915
|
-
|
||||||
Diluted weighted average shares outstanding
|
1,257,045
|
1,227,007
|
||||||
|
||||||||
Weighted average shares dilution adjustments - exclusions:
(a)
|
||||||||
Stock options
(b)
|
7,199
|
12,429
|
||||||
Restricted shares
|
-
|
3,625
|
||||||
Restricted performance shares
|
-
|
4,786
|
(a)
|
These adjustments were excluded, as they are anti-dilutive.
|
(b)
|
Anti-dilutive stock options were determined using the Company's average share price for the year. For the years ended December 31, 2017 and 2016, the average share price used was $4.00 and $3.91, respectively. |
17.
|
INCOME TAX EXPENSE (RECOVERY)
|
Years ended December 31,
|
||||||||
2017
|
2016
|
|||||||
Current tax expense (recovery)
|
||||||||
Current period
|
$
|
63.2
|
$
|
223.9
|
||||
Adjustment for prior period
|
(10.0
|
)
|
(24.6
|
)
|
||||
Deferred tax expense (recovery)
|
||||||||
Origination and reversal of temporary differences
|
(83.0
|
)
|
(143.6
|
)
|
||||
Impact of changes in tax rate
|
(0.1
|
)
|
-
|
|||||
Change in unrecognized deductible temporary differences
|
7.5
|
(6.7
|
)
|
|||||
Recognition of previously unrecognized tax losses
|
(0.8
|
)
|
0.6
|
|||||
Total tax expense (recovery)
|
$
|
(23.2
|
)
|
$
|
49.6
|
|
2017
|
2016
|
||||||
Combined statutory income tax rate
|
26.5%
|
|
26.5%
|
|
||||
|
||||||||
Increase (decrease) resulting from:
|
||||||||
Mining taxes
|
5.0%
|
|
4.4%
|
|
||||
Resource allowance and depletion
|
0.0%
|
|
1.1%
|
|
||||
Difference in foreign tax rates and foreign exchange on deferred income taxes within income tax expense
|
(19.1%)
|
|
94.0%
|
|
||||
Benefit of losses not recognized
|
33.9%
|
|
(160.1%)
|
|
||||
Recognition of tax attributes not previously benefited
|
(3.5%)
|
|
(44.0%)
|
|
||||
Under (over) provided in prior periods
|
(8.9%)
|
|
(8.2%)
|
|
||||
Income not subject to tax
|
(3.0%)
|
|
109.2%
|
|
||||
Effect of non-taxable impairment reversal
|
(17.6%)
|
|
0.0%
|
|
||||
Enacted rate change
|
0.1%
|
|
0.0%
|
|
||||
Accounting expenses disallowed for tax
|
9.8%
|
|
(17.2%)
|
|
||||
Taxes on repatriation of foreign earnings
|
3.8%
|
|
(79.9%)
|
|
||||
AMT Credit recovery due to U.S. Tax Reform
|
(29.7%)
|
|
0.0%
|
|
||||
Other
|
(2.8%)
|
|
(9.2%)
|
|
||||
Effective tax rate
|
(5.5%)
|
|
(83.4%)
|
|
i.
|
Deferred income tax
|
|
December 31,
2017 |
December 31,
2016 |
||||||
Deferred tax assets
|
||||||||
Accrued expenses and other
|
$
|
28.3
|
$
|
39.3
|
||||
Property, plant and equipment
|
43.3
|
25.5
|
||||||
Reclamation and remediation obligations
|
50.2
|
118.1
|
||||||
Inventory capitalization
|
3.4
|
8.8
|
||||||
Non-capital loss
|
6.2
|
-
|
||||||
|
131.4
|
191.7
|
||||||
Deferred tax liabilities
|
||||||||
Accrued expenses and other
|
4.9
|
14.5
|
||||||
Property, plant and equipment
|
316.8
|
442.0
|
||||||
Inventory capitalization
|
32.0
|
31.4
|
||||||
Deferred tax liabilities - net
|
$
|
222.3
|
$
|
296.2
|
|
December 31,
2017 |
December 31,
2016 |
||||||
|
||||||||
Balance at the beginning of the period
|
$
|
296.2
|
$
|
422.5
|
||||
Recognized in profit/loss
|
(76.4
|
)
|
(149.7
|
)
|
||||
Recognized in OCI
|
(0.8
|
)
|
9.5
|
|||||
Other
|
3.3
|
13.9
|
||||||
Balance at the end of the period
|
$
|
222.3
|
$
|
296.2
|
ii.
|
Unrecognized deferred tax assets and liabilities
|
|
December 31,
2017 |
December 31,
2016 |
||||||
Deductible temporary differences
|
$
|
777.0
|
$
|
721.4
|
||||
Tax losses
|
505.4
|
458.5
|
||||||
|
iii.
|
Non-capital losses (not recognized)
|
Country
|
Type
|
Amount
|
Expiry Date
|
||||||
|
|
||||||||
Canada
|
Net operating losses
|
$
|
804.2
|
2018 - 2037
|
|||||
United States
(a)
|
Net operating losses
|
42.8
|
2018 - 2037
|
||||||
Chile
|
Net operating losses
|
171.4
|
No expiry
|
||||||
Mauritania
|
Net operating losses
|
21.2
|
2018 - 2021
|
||||||
Other
|
Net operating losses
|
59.9
|
Various
|
18.
|
SEGMENTED INFORMATION
|
i.
|
Operating segments
|
|
Operating segments
|
Non-operating segments
(a)
|
||||||||||||||||||||||||||||||||||||||||||
Years ended December 31, 2017:
|
Fort Knox
|
Round Mountain
|
Bald Mountain
|
Paracatu
|
Maricunga
|
Kupol
|
Kettle River-Buckhorn
|
Tasiast
|
Chirano
|
Corporate and other
(b)
|
Total
|
|||||||||||||||||||||||||||||||||
Revenue
|
||||||||||||||||||||||||||||||||||||||||||||
Metal sales
|
$
|
481.1
|
552.2
|
331.5
|
447.0
|
52.0
|
726.9
|
96.3
|
298.4
|
317.6
|
-
|
$
|
3,303.0
|
|||||||||||||||||||||||||||||||
Cost of sales
|
||||||||||||||||||||||||||||||||||||||||||||
Production cost of sales
|
239.9
|
302.5
|
168.9
|
310.2
|
19.9
|
300.9
|
36.8
|
178.2
|
200.1
|
-
|
1,757.4
|
|||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization
|
86.6
|
107.4
|
83.5
|
127.0
|
4.6
|
184.2
|
0.6
|
78.6
|
138.6
|
8.3
|
819.4
|
|||||||||||||||||||||||||||||||||
Impairment, net of reversals
|
(88.6
|
)
|
-
|
-
|
253.0
|
-
|
-
|
-
|
(142.9
|
)
|
-
|
-
|
21.5
|
|||||||||||||||||||||||||||||||
Total cost of sales
|
237.9
|
409.9
|
252.4
|
690.2
|
24.5
|
485.1
|
37.4
|
113.9
|
338.7
|
8.3
|
2,598.3
|
|||||||||||||||||||||||||||||||||
Gross profit (loss)
|
$
|
243.2
|
142.3
|
79.1
|
(243.2
|
)
|
27.5
|
241.8
|
58.9
|
184.5
|
(21.1
|
)
|
(8.3
|
)
|
$
|
704.7
|
||||||||||||||||||||||||||||
Other operating expense
|
9.5
|
-
|
1.1
|
20.1
|
6.1
|
(0.3
|
)
|
10.9
|
60.0
|
(1.8
|
)
|
24.0
|
129.6
|
|||||||||||||||||||||||||||||||
Exploration and business development
|
9.0
|
2.6
|
9.5
|
-
|
0.1
|
17.1
|
4.6
|
5.7
|
8.2
|
49.2
|
106.0
|
|||||||||||||||||||||||||||||||||
General and administrative
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
132.6
|
132.6
|
|||||||||||||||||||||||||||||||||
Operating earnings (loss)
|
$
|
224.7
|
139.7
|
68.5
|
(263.3
|
)
|
21.3
|
225.0
|
43.4
|
118.8
|
(27.5
|
)
|
(214.1
|
)
|
$
|
336.5
|
||||||||||||||||||||||||||||
Other income (expense) - net
|
188.1
|
|||||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of associate and joint ventures
|
(1.3
|
)
|
||||||||||||||||||||||||||||||||||||||||||
Finance income
|
13.5
|
|||||||||||||||||||||||||||||||||||||||||||
Finance expense
|
(117.8
|
)
|
||||||||||||||||||||||||||||||||||||||||||
Earnings before tax
|
$
|
419.0
|
|
Operating segments
|
Non-operating segments
(a)
|
||||||||||||||||||||||||||||||||||||||||||
Years ended December 31, 2016:
|
Fort Knox
|
Round Mountain
|
Bald Mountain
|
Paracatu
|
Maricunga
|
Kupol
|
Kettle River-Buckhorn
|
Tasiast
|
Chirano
|
Corporate and other
(b)
|
Total
|
|||||||||||||||||||||||||||||||||
Revenue
|
||||||||||||||||||||||||||||||||||||||||||||
Metal sales
|
$
|
510.8
|
477.1
|
139.6
|
599.6
|
219.4
|
919.2
|
139.8
|
208.0
|
258.5
|
-
|
$
|
3,472.0
|
|||||||||||||||||||||||||||||||
Cost of sales
|
||||||||||||||||||||||||||||||||||||||||||||
Production cost of sales
|
302.2
|
292.0
|
131.7
|
346.4
|
145.2
|
324.3
|
73.0
|
179.3
|
189.7
|
-
|
1,983.8
|
|||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization
|
88.7
|
94.7
|
38.6
|
142.7
|
34.4
|
236.8
|
1.3
|
96.4
|
109.9
|
11.5
|
855.0
|
|||||||||||||||||||||||||||||||||
Impairment, net of reversals
|
-
|
-
|
-
|
-
|
139.6
|
-
|
-
|
-
|
-
|
-
|
139.6
|
|||||||||||||||||||||||||||||||||
Total cost of sales
|
390.9
|
386.7
|
170.3
|
489.1
|
319.2
|
561.1
|
74.3
|
275.7
|
299.6
|
11.5
|
2,978.4
|
|||||||||||||||||||||||||||||||||
Gross profit (loss)
|
$
|
119.9
|
90.4
|
(30.7
|
)
|
110.5
|
(99.8
|
)
|
358.1
|
65.5
|
(67.7
|
)
|
(41.1
|
)
|
(11.5
|
)
|
$
|
493.6
|
||||||||||||||||||||||||||
Other operating expense
|
1.0
|
-
|
2.0
|
74.3
|
50.8
|
(0.5
|
)
|
(0.7
|
)
|
46.3
|
8.0
|
28.1
|
209.3
|
|||||||||||||||||||||||||||||||
Exploration and business development
|
8.9
|
4.6
|
4.7
|
-
|
-
|
13.3
|
2.2
|
5.9
|
8.9
|
45.8
|
94.3
|
|||||||||||||||||||||||||||||||||
General and administrative
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
143.7
|
143.7
|
|||||||||||||||||||||||||||||||||
Operating earnings (loss)
|
$
|
110.0
|
85.8
|
(37.4
|
)
|
36.2
|
(150.6
|
)
|
345.3
|
64.0
|
(119.9
|
)
|
(58.0
|
)
|
(229.1
|
)
|
$
|
46.3
|
||||||||||||||||||||||||||
Other income (expense) - net
|
22.5
|
|||||||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of associate and joint venture
|
(1.2
|
)
|
||||||||||||||||||||||||||||||||||||||||||
Finance income
|
7.5
|
|||||||||||||||||||||||||||||||||||||||||||
Finance expense
|
(134.6
|
)
|
||||||||||||||||||||||||||||||||||||||||||
Loss before tax
|
$
|
(59.5
|
)
|
|
Operating segments
|
Non-operating segments
(a)
|
||||||||||||||||||||||||||||||||||||||||||
|
Fort Knox
|
Round Mountain
|
Bald Mountain
|
Paracatu
|
Maricunga
|
Kupol
|
Kettle River-Buckhorn
|
Tasiast
|
Chirano
|
Corporate and other
(b)
|
Total
|
|||||||||||||||||||||||||||||||||
Property, plant and equipment at:
|
||||||||||||||||||||||||||||||||||||||||||||
December 31, 2017
|
$
|
354.1
|
286.2
|
422.2
|
1,383.1
|
39.5
|
474.7
|
1.3
|
1,296.0
|
332.6
|
297.5
|
$
|
4,887.2
|
|||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||
Total assets at:
|
||||||||||||||||||||||||||||||||||||||||||||
December 31, 2017
|
$
|
559.1
|
460.2
|
612.2
|
1,646.5
|
171.3
|
1,164.5
|
9.2
|
1,580.3
|
516.4
|
1,437.5
|
$
|
8,157.2
|
|||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures for year ended December 31, 2017
(c)
|
$
|
110.2
|
97.1
|
90.4
|
121.6
|
1.4
|
54.1
|
-
|
434.5
|
46.0
|
5.0
|
$
|
960.3
|
|
Operating segments
|
Non-operating segments
(a)
|
||||||||||||||||||||||||||||||||||||||||||
|
Fort Knox
|
Round Mountain
|
Bald Mountain
|
Paracatu
|
Maricunga
|
Kupol
|
Kettle River-Buckhorn
|
Tasiast
|
Chirano
|
Corporate and other
(b)
|
Total
|
|||||||||||||||||||||||||||||||||
Property, plant and equipment at:
|
||||||||||||||||||||||||||||||||||||||||||||
December 31, 2016
|
$
|
248.4
|
307.1
|
440.9
|
1,647.5
|
37.6
|
599.5
|
2.0
|
826.9
|
416.6
|
391.1
|
$
|
4,917.6
|
|||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||
Total assets at:
|
||||||||||||||||||||||||||||||||||||||||||||
December 31, 2016
|
$
|
457.7
|
430.8
|
598.9
|
1,880.4
|
145.3
|
1,417.0
|
15.9
|
1,122.8
|
581.5
|
1,329.0
|
$
|
7,979.3
|
|||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures for year ended December 31, 2016
(c)
|
$
|
67.2
|
70.1
|
41.2
|
113.8
|
5.1
|
88.0
|
-
|
200.4
|
48.2
|
11.1
|
$
|
645.1
|
(a)
|
Non-operating segments include development properties.
|
(b)
|
Corporate and other includes corporate, Cerro Casale until its disposal on June 9, 2017, shutdown and other non-operating assets (including La Coipa, Lobo-Marte and White Gold until its disposal on June 14, 2017).
|
(c)
|
Segment capital expenditures are presented on an accrual basis. Additions to property, plant and equipment in the consolidated statements of cash flows are presented on a cash basis.
|
ii.
|
Geographic segments
|
|
Metal sales
|
Property, plant and equipment
|
||||||||||||||
|
Years ended December 31,
|
As at December 31,
|
||||||||||||||
|
2017
|
2016
|
2017
|
2016
|
||||||||||||
Geographic information
(a)
|
||||||||||||||||
United States
|
$
|
1,461.1
|
$
|
1,267.3
|
$
|
1,067.4
|
$
|
1,002.1
|
||||||||
Russian Federation
|
726.9
|
919.2
|
482.3
|
630.8
|
||||||||||||
Brazil
|
447.0
|
599.6
|
1,383.1
|
1,647.5
|
||||||||||||
Chile
|
52.0
|
219.4
|
308.8
|
306.6
|
||||||||||||
Mauritania
|
298.4
|
208.0
|
1,302.1
|
832.5
|
||||||||||||
Ghana
|
317.6
|
258.5
|
343.5
|
427.9
|
||||||||||||
Canada
|
-
|
-
|
-
|
70.2
|
||||||||||||
Total
|
$
|
3,303.0
|
$
|
3,472.0
|
$
|
4,887.2
|
$
|
4,917.6
|
iii.
|
Significant customers
|
For the year ended December 31, 2017:
|
Fort Knox
|
Round Mountain
|
Bald Mountain
|
Paracatu
|
Maricunga
|
Kupol
|
Kettle River-Buckhorn
|
Tasiast
|
Chirano
|
Total
|
||||||||||||||||||||||||||||||||
Customer
|
||||||||||||||||||||||||||||||||||||||||||
1
|
$
|
-
|
-
|
-
|
-
|
-
|
694.5
|
-
|
-
|
-
|
694.5
|
|||||||||||||||||||||||||||||||
2
|
54.4
|
60.2
|
64.8
|
48.8
|
6.8
|
16.4
|
16.9
|
146.9
|
116.3
|
531.5
|
||||||||||||||||||||||||||||||||
3
|
6.4
|
19.0
|
16.4
|
157.9
|
11.6
|
-
|
-
|
31.7
|
99.1
|
342.1
|
||||||||||||||||||||||||||||||||
$
|
1,568.1
|
|||||||||||||||||||||||||||||||||||||||||
% of total metal sales
|
47.5
|
%
|
For the year ended December 31, 2016:
|
Fort Knox
|
Round Mountain
|
Bald Mountain
|
Paracatu
|
Maricunga
|
Kupol
|
Kettle River-Buckhorn
|
Tasiast
|
Chirano
|
Total
|
||||||||||||||||||||||||||||||||
Customer
|
||||||||||||||||||||||||||||||||||||||||||
1
|
$
|
101.8
|
75.9
|
22.0
|
130.1
|
41.8
|
20.5
|
66.6
|
80.2
|
72.5
|
$
|
611.4
|
||||||||||||||||||||||||||||||
2
|
-
|
-
|
-
|
-
|
-
|
473.5
|
-
|
-
|
-
|
473.5
|
||||||||||||||||||||||||||||||||
3
|
-
|
-
|
-
|
-
|
-
|
405.5
|
-
|
-
|
-
|
405.5
|
||||||||||||||||||||||||||||||||
$
|
1,490.4
|
|||||||||||||||||||||||||||||||||||||||||
% of total metal sales
|
42.9
|
%
|
19.
|
COMMITMENTS AND CONTINGENCIES
|
i.
|
Commitments
|
ii.
|
Contingencies
|
20.
|
RELATED PARTY TRANSACTIONS
|
|
Years ended December 31,
|
|||||||
|
2017
|
2016
|
||||||
Cash compensation - Salaries, short-term incentives, and other benefits
|
$
|
9.1
|
$
|
7.3
|
||||
Long-term incentives, including share-based payments
|
8.7
|
9.3
|
||||||
Termination and post-retirement benefits
|
-
|
3.9
|
||||||
Total compensation paid to key management personnel
|
$
|
17.8
|
$
|
20.5
|
21.
|
CONSOLIDATING FINANCIAL STATEMENTS
|
|
Guarantors
|
|||||||||||||||||||||||||||
|
Kinross Gold Corp.
|
Guarantor Subsidiaries
|
Guarantor Adjustments
|
Total
Guarantors |
Non-guarantors
|
Eliminations
|
Consolidated
|
|||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||
Current assets
|
||||||||||||||||||||||||||||
Cash and cash equivalents
|
$
|
267.6
|
$
|
122.7
|
$
|
-
|
$
|
390.3
|
$
|
635.5
|
$
|
-
|
$
|
1,025.8
|
||||||||||||||
Restricted cash
|
-
|
5.6
|
-
|
5.6
|
6.5
|
-
|
12.1
|
|||||||||||||||||||||
Accounts receivable and other assets
|
10.4
|
26.6
|
-
|
37.0
|
54.3
|
-
|
91.3
|
|||||||||||||||||||||
Intercompany receivables
|
518.6
|
1,297.9
|
(245.7
|
)
|
1,570.8
|
4,256.8
|
(5,827.6
|
)
|
-
|
|||||||||||||||||||
Current income tax recoverable
|
-
|
17.1
|
-
|
17.1
|
26.8
|
-
|
43.9
|
|||||||||||||||||||||
Inventories
|
2.1
|
560.6
|
-
|
562.7
|
531.6
|
-
|
1,094.3
|
|||||||||||||||||||||
Unrealized fair value of derivative assets
|
23.0
|
(10.7
|
)
|
-
|
12.3
|
4.7
|
-
|
17.0
|
||||||||||||||||||||
|
821.7
|
2,019.8
|
(245.7
|
)
|
2,595.8
|
5,516.2
|
(5,827.6
|
)
|
2,284.4
|
|||||||||||||||||||
Non-current assets
|
||||||||||||||||||||||||||||
Property, plant and equipment
|
27.6
|
2,478.9
|
-
|
2,506.5
|
2,380.7
|
-
|
4,887.2
|
|||||||||||||||||||||
Goodwill
|
-
|
158.8
|
-
|
158.8
|
3.9
|
-
|
162.7
|
|||||||||||||||||||||
Long-term investments
|
180.8
|
-
|
-
|
180.8
|
7.2
|
-
|
188.0
|
|||||||||||||||||||||
Investments in associate and joint ventures
|
-
|
5.5
|
-
|
5.5
|
18.2
|
-
|
23.7
|
|||||||||||||||||||||
Intercompany investments
|
3,535.2
|
3,269.1
|
(6,202.6
|
)
|
601.7
|
14,693.0
|
(15,294.7
|
)
|
-
|
|||||||||||||||||||
Unrealized fair value of derivative assets
|
14.8
|
(12.3
|
)
|
-
|
2.5
|
1.4
|
-
|
3.9
|
||||||||||||||||||||
Other long-term assets
|
11.7
|
133.2
|
-
|
144.9
|
429.1
|
-
|
574.0
|
|||||||||||||||||||||
Long-term intercompany receivables
|
3,206.4
|
2,414.3
|
(1,819.9
|
)
|
3,800.8
|
3,171.3
|
(6,972.1
|
)
|
-
|
|||||||||||||||||||
Deferred tax assets
|
-
|
0.1
|
-
|
0.1
|
33.2
|
-
|
33.3
|
|||||||||||||||||||||
Total assets
|
$
|
7,798.2
|
$
|
10,467.4
|
$
|
(8,268.2
|
)
|
$
|
9,997.4
|
$
|
26,254.2
|
$
|
(28,094.4
|
)
|
$
|
8,157.2
|
||||||||||||
|
||||||||||||||||||||||||||||
Liabilities
|
||||||||||||||||||||||||||||
Current liabilities
|
||||||||||||||||||||||||||||
Accounts payable and accrued liabilities
|
$
|
88.5
|
$
|
218.0
|
$
|
-
|
$
|
306.5
|
$
|
176.1
|
$
|
-
|
$
|
482.6
|
||||||||||||||
Intercompany payables
|
184.4
|
643.0
|
(245.7
|
)
|
581.7
|
5,245.9
|
(5,827.6
|
)
|
-
|
|||||||||||||||||||
Current income tax payable
|
-
|
19.5
|
-
|
19.5
|
15.6
|
-
|
35.1
|
|||||||||||||||||||||
Current portion of provisions
|
-
|
13.5
|
-
|
13.5
|
53.0
|
-
|
66.5
|
|||||||||||||||||||||
Current portion of unrealized fair value of derivative liabilities
|
-
|
1.1
|
-
|
1.1
|
-
|
-
|
1.1
|
|||||||||||||||||||||
|
272.9
|
895.1
|
(245.7
|
)
|
922.3
|
5,490.6
|
(5,827.6
|
)
|
585.3
|
|||||||||||||||||||
Non-current liabilities
|
||||||||||||||||||||||||||||
Long-term debt
|
1,732.6
|
-
|
-
|
1,732.6
|
-
|
-
|
1,732.6
|
|||||||||||||||||||||
Provisions
|
9.8
|
367.5
|
-
|
377.3
|
453.2
|
-
|
830.5
|
|||||||||||||||||||||
Other long-term liabilities
|
-
|
67.6
|
-
|
67.6
|
66.4
|
-
|
134.0
|
|||||||||||||||||||||
Long-term intercompany payables
|
1,199.3
|
2,777.2
|
(1,819.9
|
)
|
2,156.6
|
4,815.5
|
(6,972.1
|
)
|
-
|
|||||||||||||||||||
Deferred tax liabilities
|
-
|
157.4
|
-
|
157.4
|
98.2
|
-
|
255.6
|
|||||||||||||||||||||
Total liabilities
|
3,214.6
|
4,264.8
|
(2,065.6
|
)
|
5,413.8
|
10,923.9
|
(12,799.7
|
)
|
3,538.0
|
|||||||||||||||||||
|
||||||||||||||||||||||||||||
Equity
|
||||||||||||||||||||||||||||
Common shareholders' equity
|
||||||||||||||||||||||||||||
Common share capital
|
$
|
14,902.5
|
$
|
1,713.3
|
$
|
(1,713.3
|
)
|
$
|
14,902.5
|
$
|
18,702.5
|
$
|
(18,702.5
|
)
|
$
|
14,902.5
|
||||||||||||
Contributed surplus
|
240.7
|
3,464.9
|
(3,464.9
|
)
|
240.7
|
6,271.9
|
(6,271.9
|
)
|
240.7
|
|||||||||||||||||||
Accumulated deficit
|
(10,580.7
|
)
|
1,038.6
|
(1,038.6
|
)
|
(10,580.7
|
)
|
(9,660.3
|
)
|
9,660.3
|
(10,580.7
|
)
|
||||||||||||||||
Accumulated other comprehensive income (loss)
|
21.1
|
(14.2
|
)
|
14.2
|
21.1
|
(19.4
|
)
|
19.4
|
21.1
|
|||||||||||||||||||
Total common shareholders' equity
|
4,583.6
|
6,202.6
|
(6,202.6
|
)
|
4,583.6
|
15,294.7
|
(15,294.7
|
)
|
4,583.6
|
|||||||||||||||||||
Non-controlling interest
|
-
|
-
|
-
|
-
|
35.6
|
-
|
35.6
|
|||||||||||||||||||||
Total equity
|
4,583.6
|
6,202.6
|
(6,202.6
|
)
|
4,583.6
|
15,330.3
|
(15,294.7
|
)
|
4,619.2
|
|||||||||||||||||||
|
||||||||||||||||||||||||||||
Total liabilities and equity
|
$
|
7,798.2
|
$
|
10,467.4
|
$
|
(8,268.2
|
)
|
$
|
9,997.4
|
$
|
26,254.2
|
$
|
(28,094.4
|
)
|
$
|
8,157.2
|
||||||||||||
|
|
Guarantors
|
|||||||||||||||||||||||||||
|
Kinross Gold Corp.
|
Guarantor Subsidiaries
|
Guarantor Adjustments
|
Total
Guarantors |
Non-guarantors
|
Eliminations
|
Consolidated
|
|||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||
Current assets
|
||||||||||||||||||||||||||||
Cash and cash equivalents
|
$
|
126.2
|
$
|
145.6
|
$
|
-
|
$
|
271.8
|
$
|
555.2
|
$
|
-
|
$
|
827.0
|
||||||||||||||
Restricted cash
|
-
|
4.6
|
-
|
4.6
|
7.0
|
-
|
11.6
|
|||||||||||||||||||||
Accounts receivable and other assets
|
6.4
|
42.3
|
-
|
48.7
|
78.6
|
-
|
127.3
|
|||||||||||||||||||||
Intercompany receivables
|
541.5
|
1,277.3
|
(175.5
|
)
|
1,643.3
|
4,384.9
|
(6,028.2
|
)
|
-
|
|||||||||||||||||||
Current income tax recoverable
|
-
|
12.0
|
-
|
12.0
|
99.9
|
-
|
111.9
|
|||||||||||||||||||||
Inventories
|
5.7
|
440.3
|
-
|
446.0
|
540.8
|
-
|
986.8
|
|||||||||||||||||||||
Unrealized fair value of derivative assets
|
12.6
|
(1.6
|
)
|
-
|
11.0
|
5.1
|
-
|
16.1
|
||||||||||||||||||||
|
692.4
|
1,920.5
|
(175.5
|
)
|
2,437.4
|
5,671.5
|
(6,028.2
|
)
|
2,080.7
|
|||||||||||||||||||
Non-current assets
|
||||||||||||||||||||||||||||
Property, plant and equipment
|
26.8
|
2,677.2
|
-
|
2,704.0
|
2,213.6
|
-
|
4,917.6
|
|||||||||||||||||||||
Goodwill
|
-
|
158.8
|
-
|
158.8
|
3.9
|
-
|
162.7
|
|||||||||||||||||||||
Long-term investments
|
141.5
|
-
|
-
|
141.5
|
1.4
|
-
|
142.9
|
|||||||||||||||||||||
Investments in associate and joint ventures
|
-
|
5.5
|
-
|
5.5
|
158.1
|
-
|
163.6
|
|||||||||||||||||||||
Intercompany investments
|
3,150.2
|
1,699.7
|
(4,360.2
|
)
|
489.7
|
11,787.5
|
(12,277.2
|
)
|
-
|
|||||||||||||||||||
Unrealized fair value of derivative assets
|
19.0
|
(14.7
|
)
|
-
|
4.3
|
1.7
|
-
|
6.0
|
||||||||||||||||||||
Other long-term assets
|
8.6
|
121.6
|
-
|
130.2
|
281.1
|
-
|
411.3
|
|||||||||||||||||||||
Long-term intercompany receivables
|
3,250.6
|
2,084.3
|
(1,758.8
|
)
|
3,576.1
|
3,396.9
|
(6,973.0
|
)
|
-
|
|||||||||||||||||||
Deferred tax assets
|
-
|
0.7
|
-
|
0.7
|
93.8
|
-
|
94.5
|
|||||||||||||||||||||
Total assets
|
$
|
7,289.1
|
$
|
8,653.6
|
$
|
(6,294.5
|
)
|
$
|
9,648.2
|
$
|
23,609.5
|
$
|
(25,278.4
|
)
|
$
|
7,979.3
|
||||||||||||
|
||||||||||||||||||||||||||||
Liabilities
|
||||||||||||||||||||||||||||
Current liabilities
|
||||||||||||||||||||||||||||
Accounts payable and accrued liabilities
|
$
|
72.9
|
$
|
207.0
|
$
|
-
|
$
|
279.9
|
$
|
184.9
|
$
|
-
|
$
|
464.8
|
||||||||||||||
Intercompany payables
|
120.1
|
601.0
|
(175.5
|
)
|
545.6
|
5,482.6
|
(6,028.2
|
)
|
-
|
|||||||||||||||||||
Current income tax payable
|
-
|
10.9
|
-
|
10.9
|
61.7
|
-
|
72.6
|
|||||||||||||||||||||
Current portion of provisions
|
-
|
13.2
|
-
|
13.2
|
80.0
|
-
|
93.2
|
|||||||||||||||||||||
Current portion of unrealized fair value of derivative liabilities
|
7.1
|
-
|
-
|
7.1
|
-
|
-
|
7.1
|
|||||||||||||||||||||
|
200.1
|
832.1
|
(175.5
|
)
|
856.7
|
5,809.2
|
(6,028.2
|
)
|
637.7
|
|||||||||||||||||||
Non-current liabilities
|
||||||||||||||||||||||||||||
Long-term debt
|
1,733.2
|
-
|
-
|
1,733.2
|
-
|
-
|
1,733.2
|
|||||||||||||||||||||
Provisions
|
11.1
|
367.4
|
-
|
378.5
|
482.7
|
-
|
861.2
|
|||||||||||||||||||||
Other long-term liabilities
|
-
|
85.0
|
-
|
85.0
|
87.2
|
-
|
172.2
|
|||||||||||||||||||||
Long-term intercompany payables
|
1,199.2
|
2,779.0
|
(1,758.8
|
)
|
2,219.4
|
4,753.6
|
(6,973.0
|
)
|
-
|
|||||||||||||||||||
Deferred tax liabilities
|
-
|
229.9
|
-
|
229.9
|
160.8
|
-
|
390.7
|
|||||||||||||||||||||
Total liabilities
|
3,143.6
|
4,293.4
|
(1,934.3
|
)
|
5,502.7
|
11,293.5
|
(13,001.2
|
)
|
3,795.0
|
|||||||||||||||||||
|
||||||||||||||||||||||||||||
Equity
|
||||||||||||||||||||||||||||
Common shareholders' equity
|
||||||||||||||||||||||||||||
Common share capital
|
$
|
14,894.2
|
$
|
1,713.3
|
$
|
(1,713.3
|
)
|
$
|
14,894.2
|
$
|
18,053.2
|
$
|
(18,053.2
|
)
|
$
|
14,894.2
|
||||||||||||
Contributed surplus
|
238.3
|
2,396.0
|
(2,396.0
|
)
|
238.3
|
4,402.0
|
(4,402.0
|
)
|
238.3
|
|||||||||||||||||||
Accumulated deficit
|
(11,026.1
|
)
|
243.5
|
(243.5
|
)
|
(11,026.1
|
)
|
(10,157.4
|
)
|
10,157.4
|
(11,026.1
|
)
|
||||||||||||||||
Accumulated other comprehensive income (loss)
|
39.1
|
7.4
|
(7.4
|
)
|
39.1
|
(20.6
|
)
|
20.6
|
39.1
|
|||||||||||||||||||
Total common shareholders' equity
|
4,145.5
|
4,360.2
|
(4,360.2
|
)
|
4,145.5
|
12,277.2
|
(12,277.2
|
)
|
4,145.5
|
|||||||||||||||||||
Non-controlling interest
|
-
|
-
|
-
|
-
|
38.8
|
-
|
38.8
|
|||||||||||||||||||||
Total equity
|
4,145.5
|
4,360.2
|
(4,360.2
|
)
|
4,145.5
|
12,316.0
|
(12,277.2
|
)
|
4,184.3
|
|||||||||||||||||||
|
||||||||||||||||||||||||||||
Total liabilities and equity
|
$
|
7,289.1
|
$
|
8,653.6
|
$
|
(6,294.5
|
)
|
$
|
9,648.2
|
$
|
23,609.5
|
$
|
(25,278.4
|
)
|
$
|
7,979.3
|
||||||||||||
|
|
Guarantors
|
|||||||||||||||||||||||||||
|
Kinross Gold Corp.
|
Guarantor Subsidiaries
|
Guarantor Adjustments
|
Total
Guarantors |
Non-guarantors
|
Eliminations
|
Consolidated
|
|||||||||||||||||||||
Revenue
|
||||||||||||||||||||||||||||
Metal sales
|
$
|
1,945.9
|
$
|
1,781.1
|
$
|
(1,771.4
|
)
|
$
|
1,955.6
|
$
|
1,347.4
|
$
|
-
|
$
|
3,303.0
|
|||||||||||||
|
||||||||||||||||||||||||||||
Cost of sales
|
||||||||||||||||||||||||||||
Production cost of sales
|
1,918.8
|
1,019.9
|
(1,772.0
|
)
|
1,166.7
|
590.7
|
-
|
1,757.4
|
||||||||||||||||||||
Depreciation, depletion and amortization
|
4.9
|
404.0
|
0.6
|
409.5
|
409.9
|
-
|
819.4
|
|||||||||||||||||||||
Impairment, net of reversals
|
-
|
164.4
|
-
|
164.4
|
(142.9
|
)
|
-
|
21.5
|
||||||||||||||||||||
Total cost of sales
|
1,923.7
|
1,588.3
|
(1,771.4
|
)
|
1,740.6
|
857.7
|
-
|
2,598.3
|
||||||||||||||||||||
Gross profit
|
22.2
|
192.8
|
-
|
215.0
|
489.7
|
-
|
704.7
|
|||||||||||||||||||||
Other operating expense
|
3.4
|
30.7
|
-
|
34.1
|
95.5
|
-
|
129.6
|
|||||||||||||||||||||
Exploration and business development
|
21.8
|
22.1
|
-
|
43.9
|
62.1
|
-
|
106.0
|
|||||||||||||||||||||
General and administrative
|
75.1
|
4.7
|
-
|
79.8
|
52.8
|
-
|
132.6
|
|||||||||||||||||||||
Operating earnings (loss)
|
(78.1
|
)
|
135.3
|
-
|
57.2
|
279.3
|
-
|
336.5
|
||||||||||||||||||||
Other income (expense) - net
|
(127.9
|
)
|
(22.3
|
)
|
-
|
(150.2
|
)
|
654.4
|
(316.1
|
)
|
188.1
|
|||||||||||||||||
Equity in earnings (losses) of associate, joint ventures and intercompany investments
|
679.4
|
232.9
|
(392.5
|
)
|
519.8
|
(0.6
|
)
|
(520.5
|
)
|
(1.3
|
)
|
|||||||||||||||||
Finance income
|
50.6
|
27.1
|
(1.9
|
)
|
75.8
|
79.5
|
(141.8
|
)
|
13.5
|
|||||||||||||||||||
Finance expense
|
(80.1
|
)
|
(45.9
|
)
|
1.9
|
(124.1
|
)
|
(135.5
|
)
|
141.8
|
(117.8
|
)
|
||||||||||||||||
Earnings (loss) before tax
|
443.9
|
327.1
|
(392.5
|
)
|
378.5
|
877.1
|
(836.6
|
)
|
419.0
|
|||||||||||||||||||
Income tax recovery (expense) - net
|
1.5
|
65.4
|
-
|
66.9
|
(43.7
|
)
|
-
|
23.2
|
||||||||||||||||||||
Net earnings (loss)
|
$
|
445.4
|
$
|
392.5
|
$
|
(392.5
|
)
|
$
|
445.4
|
$
|
833.4
|
$
|
(836.6
|
)
|
$
|
442.2
|
||||||||||||
Net earnings (loss) attributable to:
|
||||||||||||||||||||||||||||
Non-controlling interest
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(3.2
|
)
|
$
|
-
|
$
|
(3.2
|
)
|
||||||||||||
Common shareholders
|
$
|
445.4
|
$
|
392.5
|
$
|
(392.5
|
)
|
$
|
445.4
|
$
|
836.6
|
$
|
(836.6
|
)
|
$
|
445.4
|
||||||||||||
|
|
Guarantors
|
|||||||||||||||||||||||||||
|
Kinross Gold Corp.
|
Guarantor Subsidiaries
|
Guarantor Adjustments
|
Total
Guarantors |
Non-guarantors
|
Eliminations
|
Consolidated
|
|||||||||||||||||||||
Revenue
|
||||||||||||||||||||||||||||
Metal sales
|
$
|
2,036.4
|
$
|
1,699.8
|
$
|
(1,653.3
|
)
|
$
|
2,082.9
|
$
|
1,389.1
|
$
|
-
|
$
|
3,472.0
|
|||||||||||||
|
||||||||||||||||||||||||||||
Cost of sales
|
||||||||||||||||||||||||||||
Production cost of sales
|
1,999.1
|
1,075.4
|
(1,652.7
|
)
|
1,421.8
|
562.0
|
-
|
1,983.8
|
||||||||||||||||||||
Depreciation, depletion and amortization
|
8.2
|
365.4
|
(0.6
|
)
|
373.0
|
482.0
|
-
|
855.0
|
||||||||||||||||||||
Impairment, net of reversals
|
-
|
-
|
-
|
-
|
139.6
|
-
|
139.6
|
|||||||||||||||||||||
Total cost of sales
|
2,007.3
|
1,440.8
|
(1,653.3
|
)
|
1,794.8
|
1,183.6
|
-
|
2,978.4
|
||||||||||||||||||||
Gross profit
|
29.1
|
259.0
|
-
|
288.1
|
205.5
|
-
|
493.6
|
|||||||||||||||||||||
Other operating expense
|
7.5
|
77.3
|
-
|
84.8
|
124.5
|
-
|
209.3
|
|||||||||||||||||||||
Exploration and business development
|
20.9
|
18.5
|
-
|
39.4
|
54.9
|
-
|
94.3
|
|||||||||||||||||||||
General and administrative
|
93.0
|
4.0
|
-
|
97.0
|
46.7
|
-
|
143.7
|
|||||||||||||||||||||
Operating earnings (loss)
|
(92.3
|
)
|
159.2
|
-
|
66.9
|
(20.6
|
)
|
-
|
46.3
|
|||||||||||||||||||
Other income (expense) - net
|
94.6
|
3.6
|
-
|
98.2
|
234.2
|
(309.9
|
)
|
22.5
|
||||||||||||||||||||
Equity in earnings (losses) of associate, joint ventures and intercompany investments
|
(44.4
|
)
|
36.6
|
(172.7
|
)
|
(180.5
|
)
|
(0.8
|
)
|
180.1
|
(1.2
|
)
|
||||||||||||||||
Finance income
|
25.8
|
16.0
|
(5.7
|
)
|
36.1
|
74.2
|
(102.8
|
)
|
7.5
|
|||||||||||||||||||
Finance expense
|
(89.1
|
)
|
(47.5
|
)
|
5.7
|
(130.9
|
)
|
(106.5
|
)
|
102.8
|
(134.6
|
)
|
||||||||||||||||
Earnings (loss) before tax
|
(105.4
|
)
|
167.9
|
(172.7
|
)
|
(110.2
|
)
|
180.5
|
(129.8
|
)
|
(59.5
|
)
|
||||||||||||||||
Income tax recovery (expense) - net
|
1.4
|
4.8
|
-
|
6.2
|
(55.8
|
)
|
-
|
(49.6
|
)
|
|||||||||||||||||||
Net earnings (loss)
|
$
|
(104.0
|
)
|
$
|
172.7
|
$
|
(172.7
|
)
|
$
|
(104.0
|
)
|
$
|
124.7
|
$
|
(129.8
|
)
|
$
|
(109.1
|
)
|
|||||||||
Net earnings (loss) attributable to:
|
||||||||||||||||||||||||||||
Non-controlling interest
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(5.1
|
)
|
$
|
-
|
$
|
(5.1
|
)
|
||||||||||||
Common shareholders
|
$
|
(104.0
|
)
|
$
|
172.7
|
$
|
(172.7
|
)
|
$
|
(104.0
|
)
|
$
|
129.8
|
$
|
(129.8
|
)
|
$
|
(104.0
|
)
|
|||||||||
|
|
Guarantors
|
|||||||||||||||||||||||||||
|
Kinross Gold Corp.
|
Guarantor Subsidiaries
|
Guarantor Adjustments
|
Total
Guarantors |
Non-guarantors
|
Eliminations
|
Consolidated
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net earnings (loss)
|
$
|
445.4
|
392.5
|
(392.5
|
)
|
445.4
|
833.4
|
(836.6
|
)
|
442.2
|
||||||||||||||||||
|
||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||||||||||||||
Items to be reclassified to profit or loss in subsequent periods:
|
||||||||||||||||||||||||||||
Changes in fair value of investments
(a)
|
(15.4
|
)
|
-
|
-
|
(15.4
|
)
|
1.8
|
-
|
(13.6
|
)
|
||||||||||||||||||
Accumulated other comprehensive loss related to investments sold
(b)
|
(3.1
|
)
|
-
|
-
|
(3.1
|
)
|
-
|
-
|
(3.1
|
)
|
||||||||||||||||||
Changes in fair value of derivative financial instruments designated as cash flow hedges
(c)
|
6.8
|
5.1
|
-
|
11.9
|
-
|
-
|
11.9
|
|||||||||||||||||||||
Accumulated other comprehensive income (loss) related to derivatives settled
(d)
|
(2.6
|
)
|
(10.6
|
)
|
-
|
(13.2
|
)
|
-
|
-
|
(13.2
|
)
|
|||||||||||||||||
|
(14.3
|
)
|
(5.5
|
)
|
-
|
(19.8
|
)
|
1.8
|
-
|
(18.0
|
)
|
|||||||||||||||||
Equity in other comprehensive income (loss) of intercompany investments
|
(3.7
|
)
|
-
|
5.5
|
1.8
|
-
|
(1.8
|
)
|
-
|
|||||||||||||||||||
Total comprehensive income (loss)
|
$
|
427.4
|
$
|
387.0
|
$
|
(387.0
|
)
|
$
|
427.4
|
$
|
835.2
|
$
|
(838.4
|
)
|
$
|
424.2
|
||||||||||||
|
||||||||||||||||||||||||||||
Attributable to non-controlling interest
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(3.2
|
)
|
$
|
-
|
$
|
(3.2
|
)
|
||||||||||||
Attributable to common shareholders
|
$
|
427.4
|
$
|
387.0
|
$
|
(387.0
|
)
|
$
|
427.4
|
$
|
838.4
|
$
|
(838.4
|
)
|
$
|
427.4
|
||||||||||||
|
||||||||||||||||||||||||||||
(a) Net of tax of
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
0.3
|
$
|
-
|
$
|
0.3
|
||||||||||||||
(b) Net of tax of
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||
(c) Net of tax of
|
$
|
2.5
|
$
|
2.3
|
$
|
-
|
$
|
4.8
|
$
|
-
|
$
|
-
|
$
|
4.8
|
||||||||||||||
(d) Net of tax of
|
$
|
(1.0
|
)
|
$
|
(4.9
|
)
|
$
|
-
|
$
|
(5.9
|
)
|
$
|
-
|
$
|
-
|
$
|
(5.9
|
)
|
|
Guarantors
|
|||||||||||||||||||||||||||
|
Kinross Gold Corp.
|
Guarantor Subsidiaries
|
Guarantor Adjustments
|
Total
Guarantors |
Non-guarantors
|
Eliminations
|
Consolidated
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net earnings (loss)
|
$
|
(104.0
|
)
|
172.7
|
(172.7
|
)
|
(104.0
|
)
|
124.7
|
(129.8
|
)
|
(109.1
|
)
|
|||||||||||||||
|
||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||||||||||||||
Items to be reclassified to profit or loss in subsequent periods:
|
||||||||||||||||||||||||||||
Changes in fair value of investments
(a)
|
49.8
|
-
|
-
|
49.8
|
1.0
|
-
|
50.8
|
|||||||||||||||||||||
Accumulated other comprehensive loss related to investments sold
(b)
|
(8.5
|
)
|
-
|
-
|
(8.5
|
)
|
-
|
-
|
(8.5
|
)
|
||||||||||||||||||
Changes in fair value of derivative financial instruments designated as cash flow hedges
(c)
|
7.4
|
20.4
|
-
|
27.8
|
1.4
|
-
|
29.2
|
|||||||||||||||||||||
Accumulated other comprehensive income (loss) related to derivatives settled
(d)
|
0.5
|
(2.7
|
)
|
-
|
(2.2
|
)
|
1.1
|
-
|
(1.1
|
)
|
||||||||||||||||||
|
49.2
|
17.7
|
-
|
66.9
|
3.5
|
-
|
70.4
|
|||||||||||||||||||||
Equity in other comprehensive income (loss) of intercompany investments
|
21.2
|
-
|
(17.7
|
)
|
3.5
|
-
|
(3.5
|
)
|
-
|
|||||||||||||||||||
Total comprehensive income (loss)
|
$
|
(33.6
|
)
|
$
|
190.4
|
$
|
(190.4
|
)
|
$
|
(33.6
|
)
|
$
|
128.2
|
$
|
(133.3
|
)
|
$
|
(38.7
|
)
|
|||||||||
|
||||||||||||||||||||||||||||
Attributable to non-controlling interest
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(5.1
|
)
|
$
|
-
|
$
|
(5.1
|
)
|
||||||||||||
Attributable to common shareholders
|
$
|
(33.6
|
)
|
$
|
190.4
|
$
|
(190.4
|
)
|
$
|
(33.6
|
)
|
$
|
133.3
|
$
|
(133.3
|
)
|
$
|
(33.6
|
)
|
|||||||||
|
||||||||||||||||||||||||||||
(a) Net of tax of
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||
(b) Net of tax of
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||
(c) Net of tax of
|
$
|
1.3
|
$
|
8.9
|
$
|
-
|
$
|
10.2
|
$
|
0.4
|
$
|
-
|
$
|
10.6
|
||||||||||||||
(d) Net of tax of
|
$
|
0.2
|
$
|
(1.7
|
)
|
$
|
-
|
$
|
(1.5
|
)
|
$
|
0.4
|
$
|
-
|
$
|
(1.1
|
)
|
|
Guarantors
|
|||||||||||||||||||||||||||
|
Kinross Gold Corp.
|
Guarantor Subsidiaries
|
Guarantor Adjustments
|
Total
Guarantors |
Non-guarantors
|
Eliminations
|
Consolidated
|
|||||||||||||||||||||
Net inflow (outflow) of cash related to the following activities:
|
||||||||||||||||||||||||||||
Operating:
|
||||||||||||||||||||||||||||
Net earnings (loss)
|
$
|
445.4
|
$
|
392.5
|
$
|
(392.5
|
)
|
$
|
445.4
|
$
|
833.4
|
$
|
(836.6
|
)
|
$
|
442.2
|
||||||||||||
Adjustments to reconcile net earnings (loss) to net cash provided from (used in) operating activities:
|
||||||||||||||||||||||||||||
Depreciation, depletion and amortization
|
4.9
|
404.0
|
0.6
|
409.5
|
409.9
|
-
|
819.4
|
|||||||||||||||||||||
Loss (gain) on disposition of associate and other interests - net
|
5.4
|
-
|
-
|
5.4
|
(60.6
|
)
|
-
|
(55.2
|
)
|
|||||||||||||||||||
Impairment, net of reversals
|
-
|
164.4
|
-
|
164.4
|
(239.9
|
)
|
-
|
(75.5
|
)
|
|||||||||||||||||||
Equity in losses (earnings) of associate, joint ventures and
intercompany investments |
(679.4
|
)
|
(232.9
|
)
|
392.5
|
(519.8
|
)
|
0.6
|
520.5
|
1.3
|
||||||||||||||||||
Share-based compensation expense
|
13.6
|
-
|
-
|
13.6
|
-
|
-
|
13.6
|
|||||||||||||||||||||
Finance expense
|
80.1
|
45.9
|
(1.9
|
)
|
124.1
|
135.5
|
(141.8
|
)
|
117.8
|
|||||||||||||||||||
Deferred tax expense (recovery)
|
(1.5
|
)
|
(69.3
|
)
|
-
|
(70.8
|
)
|
(5.6
|
)
|
-
|
(76.4
|
)
|
||||||||||||||||
Foreign exchange losses (gains) and other
|
132.8
|
(1.3
|
)
|
-
|
131.5
|
(163.4
|
)
|
-
|
(31.9
|
)
|
||||||||||||||||||
Reclamation expense
|
-
|
-
|
-
|
11.4
|
-
|
11.4
|
||||||||||||||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||||||||||||||
Accounts receivable and other assets
|
(1.7
|
)
|
3.0
|
-
|
1.3
|
107.3
|
-
|
108.6
|
||||||||||||||||||||
Inventories
|
3.5
|
(69.1
|
)
|
(0.6
|
)
|
(66.2
|
)
|
(20.5
|
)
|
-
|
(86.7
|
)
|
||||||||||||||||
Accounts payable and accrued liabilities
|
(4.9
|
)
|
23.0
|
-
|
18.1
|
(66.6
|
)
|
-
|
(48.5
|
)
|
||||||||||||||||||
Cash flow provided from (used in) operating activities
|
(1.8
|
) |
660.2
|
(1.9
|
)
|
656.5
|
941.5
|
(457.9
|
)
|
1,140.1
|
||||||||||||||||||
Income taxes paid
|
-
|
(10.9
|
)
|
-
|
(10.9
|
)
|
(177.6
|
)
|
-
|
(188.5
|
)
|
|||||||||||||||||
Net cash flow provided from (used in) operating activities
|
(1.8
|
) |
649.3
|
(1.9
|
)
|
645.6
|
763.9
|
(457.9
|
)
|
951.6
|
||||||||||||||||||
Investing:
|
||||||||||||||||||||||||||||
Additions to property, plant and equipment
|
(5.7
|
)
|
(410.8
|
)
|
-
|
(416.5
|
)
|
(481.1
|
)
|
-
|
(897.6
|
)
|
||||||||||||||||
Business acquisition
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
Net additions to long-term investments and
other assets |
(26.2
|
)
|
(24.2
|
)
|
-
|
(50.4
|
)
|
(23.4
|
)
|
-
|
(73.8
|
)
|
||||||||||||||||
Net proceeds from the sale of property, plant and
equipment |
-
|
1.8
|
-
|
1.8
|
6.7
|
-
|
8.5
|
|||||||||||||||||||||
Net proceeds from disposition of associate and other interests
|
7.5
|
-
|
-
|
7.5
|
262.1
|
-
|
269.6
|
|||||||||||||||||||||
Decrease (increase) in restricted cash
|
-
|
(0.9
|
)
|
-
|
(0.9
|
)
|
0.4
|
-
|
(0.5
|
)
|
||||||||||||||||||
Interest received and other
|
1.5
|
1.9
|
-
|
3.4
|
3.2
|
-
|
6.6
|
|||||||||||||||||||||
Net cash flow used in investing activities
|
(22.9
|
)
|
(432.2
|
)
|
-
|
(455.1
|
)
|
(232.1
|
)
|
-
|
(687.2
|
)
|
||||||||||||||||
Financing:
|
||||||||||||||||||||||||||||
Issuance of common shares on exercise of options
|
0.8
|
-
|
-
|
0.8
|
-
|
-
|
0.8
|
|||||||||||||||||||||
Net proceeds from issuance of equity
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
Net proceeds from issuance of debt
|
494.7
|
-
|
-
|
494.7
|
-
|
-
|
494.7
|
|||||||||||||||||||||
Repayment of debt
|
(500.0
|
)
|
-
|
-
|
(500.0
|
)
|
-
|
-
|
(500.0
|
)
|
||||||||||||||||||
Interest paid
|
(62.9
|
)
|
-
|
-
|
(62.9
|
)
|
-
|
-
|
(62.9
|
)
|
||||||||||||||||||
Dividends received from (paid to) common shareholders and subsidiaries
|
-
|
-
|
-
|
-
|
(316.1
|
)
|
316.1
|
-
|
||||||||||||||||||||
Intercompany advances
|
235.1
|
(240.0
|
)
|
1.9
|
(3.0
|
)
|
(138.8
|
)
|
141.8
|
-
|
||||||||||||||||||
Other
|
(1.6
|
)
|
-
|
-
|
(1.6
|
)
|
-
|
-
|
(1.6
|
)
|
||||||||||||||||||
Net cash flow provided from (used in) financing activities
|
166.1
|
(240.0
|
)
|
1.9
|
(72.0
|
)
|
(454.9
|
)
|
457.9
|
(69.0
|
)
|
|||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
-
|
-
|
-
|
-
|
3.4
|
-
|
3.4
|
|||||||||||||||||||||
Increase (decrease) in cash and cash equivalents
|
141.4
|
(22.9
|
)
|
-
|
118.5
|
80.3
|
-
|
198.8
|
||||||||||||||||||||
Cash and cash equivalents, beginning of period
|
126.2
|
145.6
|
-
|
271.8
|
555.2
|
-
|
827.0
|
|||||||||||||||||||||
Cash and cash equivalents, end of period
|
$
|
267.6
|
$
|
122.7
|
$
|
-
|
$
|
390.3
|
$
|
635.5
|
$
|
-
|
$
|
1,025.8
|
||||||||||||||
|
|
Guarantors
|
|||||||||||||||||||||||||||
|
Kinross Gold Corp.
|
Guarantor Subsidiaries
|
Guarantor Adjustments
|
Total
Guarantors |
Non-guarantors
|
Eliminations
|
Consolidated
|
|||||||||||||||||||||
Net inflow (outflow) of cash related to the following activities:
|
||||||||||||||||||||||||||||
Operating:
|
||||||||||||||||||||||||||||
Net earnings (loss)
|
$
|
(104.0
|
)
|
$
|
172.7
|
$
|
(172.7
|
)
|
$
|
(104.0
|
)
|
$
|
124.7
|
$
|
(129.8
|
)
|
$
|
(109.1
|
)
|
|||||||||
Adjustments to reconcile net earnings (loss) to net cash provided from (used in) operating activities:
|
||||||||||||||||||||||||||||
Depreciation, depletion and amortization
|
8.2
|
365.4
|
(0.6
|
)
|
373.0
|
482.0
|
-
|
855.0
|
||||||||||||||||||||
Loss (gain) on disposition of associate and other interests - net
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
Impairment, net of reversals
|
-
|
-
|
-
|
-
|
139.6
|
-
|
139.6
|
|||||||||||||||||||||
Equity in losses (earnings) of associate, joint ventures and
intercompany investments |
44.4
|
(36.6
|
)
|
172.7
|
180.5
|
0.8
|
(180.1
|
)
|
1.2
|
|||||||||||||||||||
Share-based compensation expense
|
13.5
|
-
|
-
|
13.5
|
-
|
-
|
13.5
|
|||||||||||||||||||||
Finance expense
|
89.1
|
47.5
|
(5.7
|
)
|
130.9
|
106.5
|
(102.8
|
)
|
134.6
|
|||||||||||||||||||
Deferred tax expense (recovery)
|
(1.5
|
)
|
(57.5
|
)
|
-
|
(59.0
|
)
|
(90.7
|
)
|
-
|
(149.7
|
)
|
||||||||||||||||
Foreign exchange losses (gains) and other
|
(67.3
|
)
|
70.2
|
-
|
2.9
|
11.5
|
-
|
14.4
|
||||||||||||||||||||
Reclamation expense
|
-
|
-
|
-
|
-
|
27.2
|
-
|
27.2
|
|||||||||||||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||||||||||||||
Accounts receivable and other assets
|
(2.3
|
)
|
(23.3
|
)
|
-
|
(25.6
|
)
|
4.4
|
-
|
(21.2
|
)
|
|||||||||||||||||
Inventories
|
(4.1
|
)
|
(22.6
|
)
|
0.6
|
(26.1
|
)
|
105.6
|
-
|
79.5
|
||||||||||||||||||
Accounts payable and accrued liabilities
|
0.5
|
112.3
|
-
|
112.8
|
127.1
|
-
|
239.9
|
|||||||||||||||||||||
Cash flow provided from (used in) operating activities
|
(23.5
|
)
|
628.1
|
(5.7
|
)
|
598.9
|
1,038.7
|
(412.7
|
)
|
1,224.9
|
||||||||||||||||||
Income taxes paid
|
-
|
(20.5
|
)
|
-
|
(20.5
|
)
|
(105.2
|
)
|
-
|
(125.7
|
)
|
|||||||||||||||||
Net cash flow provided from (used in) operating activities
|
(23.5
|
)
|
607.6
|
(5.7
|
)
|
578.4
|
933.5
|
(412.7
|
)
|
1,099.2
|
||||||||||||||||||
Investing:
|
||||||||||||||||||||||||||||
Additions to property, plant and equipment
|
(5.5
|
)
|
(291.2
|
)
|
-
|
(296.7
|
)
|
(337.1
|
)
|
-
|
(633.8
|
)
|
||||||||||||||||
Business acquisition
|
-
|
(588.0
|
)
|
-
|
(588.0
|
)
|
-
|
-
|
(588.0
|
)
|
||||||||||||||||||
Net additions to long-term investments and
other assets |
(8.7
|
)
|
(28.5
|
)
|
-
|
(37.2
|
)
|
(22.6
|
)
|
-
|
(59.8
|
)
|
||||||||||||||||
Net proceeds from the sale of property, plant and
equipment |
-
|
0.6
|
-
|
0.6
|
8.5
|
-
|
9.1
|
|||||||||||||||||||||
Net proceeds from disposition of associate and other interests
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
Decrease (increase) in restricted cash
|
-
|
(1.6
|
)
|
-
|
(1.6
|
)
|
0.5
|
-
|
(1.1
|
)
|
||||||||||||||||||
Interest received and other
|
0.7
|
1.2
|
-
|
1.9
|
1.6
|
-
|
3.5
|
|||||||||||||||||||||
Net cash flow used in investing activities
|
(13.5
|
)
|
(907.5
|
)
|
-
|
(921.0
|
)
|
(349.1
|
)
|
-
|
(1,270.1
|
)
|
||||||||||||||||
Financing:
|
||||||||||||||||||||||||||||
Issuance of common shares on exercise of options
|
2.8
|
-
|
-
|
2.8
|
-
|
-
|
2.8
|
|||||||||||||||||||||
Proceeds from issuance of equity
|
275.7
|
-
|
-
|
275.7
|
-
|
-
|
275.7
|
|||||||||||||||||||||
Proceeds from issuance of debt
|
175.0
|
-
|
-
|
175.0
|
-
|
-
|
175.0
|
|||||||||||||||||||||
Repayment of debt
|
(425.0
|
)
|
-
|
-
|
(425.0
|
)
|
-
|
-
|
(425.0
|
)
|
||||||||||||||||||
Interest paid
|
(73.5
|
)
|
-
|
-
|
(73.5
|
)
|
-
|
-
|
(73.5
|
)
|
||||||||||||||||||
Dividends received from (paid to) common shareholders and
subsidiaries |
-
|
-
|
-
|
-
|
(309.9
|
)
|
309.9
|
-
|
||||||||||||||||||||
Intercompany advances
|
97.7
|
318.5
|
5.7
|
421.9
|
(524.7
|
)
|
102.8
|
-
|
||||||||||||||||||||
Other
|
(3.3
|
)
|
-
|
-
|
(3.3
|
)
|
-
|
-
|
(3.3
|
)
|
||||||||||||||||||
Net cash flow provided from (used in) financing activities
|
49.4
|
318.5
|
5.7
|
373.6
|
(834.6
|
)
|
412.7
|
(48.3
|
)
|
|||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
-
|
-
|
-
|
-
|
2.3
|
-
|
2.3
|
|||||||||||||||||||||
Increase (decrease) in cash and cash equivalents
|
12.4
|
18.6
|
-
|
31.0
|
(247.9
|
)
|
-
|
(216.9
|
)
|
|||||||||||||||||||
Cash and cash equivalents, beginning of period
|
113.8
|
127.0
|
-
|
240.8
|
803.1
|
-
|
1,043.9
|
|||||||||||||||||||||
Cash and cash equivalents, end of period
|
$
|
126.2
|
$
|
145.6
|
$
|
-
|
$
|
271.8
|
$
|
555.2
|
$
|
-
|
$
|
827.0
|
||||||||||||||
|