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|
KINROSS GOLD CORPORATION
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Signed:
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/s/ David Maude
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Vice-President, Finance
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May 5, 2020
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1.
|
DESCRIPTION OF THE BUSINESS
|
Three months ended March 31,
|
||||||||||||||||
(in millions, except ounces, per share amounts and per ounce amounts)
|
2020
|
2019
|
Change
|
% Change
|
||||||||||||
Operating Highlights
|
||||||||||||||||
Total gold equivalent ounces(a)
|
||||||||||||||||
Produced(c)
|
571,773
|
611,263
|
(39,490
|
)
|
(6%)
|
|
||||||||||
Sold(c)
|
556,676
|
603,057
|
(46,381
|
)
|
(8%)
|
|
||||||||||
|
||||||||||||||||
Attributable gold equivalent ounces(a)
|
|
|||||||||||||||
Produced(c)
|
567,327
|
606,031
|
(38,704
|
)
|
(6%)
|
|
||||||||||
Sold(c)
|
552,742
|
597,649
|
(44,907
|
)
|
(8%)
|
|
||||||||||
|
||||||||||||||||
Financial Highlights
|
|
|||||||||||||||
Metal sales
|
$
|
879.8
|
$
|
786.2
|
$
|
93.6
|
12%
|
|
||||||||
Production cost of sales
|
$
|
421.3
|
$
|
411.7
|
$
|
9.6
|
2%
|
|
||||||||
Depreciation, depletion and amortization
|
$
|
193.1
|
$
|
164.1
|
$
|
29.0
|
18%
|
|
||||||||
Operating earnings
|
$
|
192.6
|
$
|
115.4
|
$
|
77.2
|
67%
|
|
||||||||
Net earnings attributable to common shareholders
|
$
|
122.7
|
$
|
64.7
|
$
|
58.0
|
90%
|
|
||||||||
Basic earnings per share attributable to common shareholders
|
$
|
0.10
|
$
|
0.05
|
$
|
0.05
|
100%
|
|
||||||||
Diluted earnings per share attributable to common shareholders
|
$
|
0.10
|
$
|
0.05
|
$
|
0.05
|
100%
|
|
||||||||
Adjusted net earnings attributable to common shareholders(b)
|
$
|
127.4
|
$
|
83.3
|
$
|
44.1
|
53%
|
|
||||||||
Adjusted net earnings per share(b)
|
$
|
0.10
|
$
|
0.07
|
$
|
0.03
|
43%
|
|
||||||||
Net cash flow provided from operating activities
|
$
|
299.6
|
$
|
251.6
|
$
|
48.0
|
19%
|
|
||||||||
Adjusted operating cash flow(b)
|
$
|
418.6
|
$
|
230.8
|
$
|
187.8
|
81%
|
|
||||||||
Capital expenditures(d)
|
$
|
191.4
|
$
|
243.9
|
$
|
(52.5
|
)
|
(22%)
|
|
|||||||
Average realized gold price per ounce(b)
|
$
|
1,581
|
$
|
1,304
|
$
|
277
|
21%
|
|
||||||||
Consolidated production cost of sales per equivalent ounce(c) sold(b)
|
$
|
757
|
$
|
683
|
$
|
74
|
11%
|
|
||||||||
Attributable(a) production cost of sales per equivalent ounce(c) sold(b)
|
$
|
754
|
$
|
682
|
$
|
72
|
11%
|
|
||||||||
Attributable(a) production cost of sales per ounce sold on a by-product basis(b)
|
$
|
738
|
$
|
668
|
$
|
70
|
10%
|
|
||||||||
Attributable(a) all-in sustaining cost per ounce sold on a by-product basis(b)
|
$
|
982
|
$
|
917
|
$
|
65
|
7%
|
|
||||||||
Attributable(a) all-in sustaining cost per equivalent ounce(c) sold(b)
|
$
|
993
|
$
|
925
|
$
|
68
|
7%
|
|
||||||||
Attributable(a) all-in cost per ounce sold on a by-product basis(b)
|
$
|
1,245
|
$
|
1,239
|
$
|
6
|
0%
|
|
||||||||
Attributable(a) all-in cost per equivalent ounce(c) sold(b)
|
$
|
1,251
|
$
|
1,240
|
$
|
11
|
1%
|
|
(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 is included in Section 11.
|
(c)
|
“Gold equivalent ounces” include silver ounces produced and sold converted to a gold equivalent based on a ratio
of the average spot market prices for the commodities for each period. The ratio for the first quarter of 2020 was 93.63:1 (first quarter of 2019 - 83.74:1).
|
(d)
|
“Capital expenditures” is as reported as “Additions to property, plant and equipment” on the interim condensed consolidated statement of cash flows and excludes
“Interest paid capitalized to property, plant and equipment”.
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2.
|
IMPACT OF KEY ECONOMIC TRENDS AND THE COVID-19 PANDEMIC
|
3.
|
OUTLOOK
|
4.
|
PROJECT UPDATES AND NEW DEVELOPMENTS
|
5.
|
CONSOLIDATED RESULTS OF OPERATIONS
|
|
Three months ended March 31,
|
|||||||||||||||
(in millions, except ounces and per ounce amounts)
|
2020
|
2019
|
Change
|
% Change
|
||||||||||||
Operating Statistics
|
||||||||||||||||
Total gold equivalent ounces(a)
|
||||||||||||||||
Produced(b)
|
571,773
|
611,263
|
(39,490
|
)
|
(6%)
|
|
||||||||||
Sold(b)
|
556,676
|
603,057
|
(46,381
|
)
|
(8%)
|
|
||||||||||
|
||||||||||||||||
Attributable gold equivalent ounces(a)
|
|
|||||||||||||||
Produced(b)
|
567,327
|
606,031
|
(38,704
|
)
|
(6%)
|
|
||||||||||
Sold(b)
|
552,742
|
597,649
|
(44,907
|
)
|
(8%)
|
|
||||||||||
|
||||||||||||||||
Gold ounces - sold
|
545,967
|
589,825
|
(43,858
|
)
|
(7%)
|
|
||||||||||
Silver ounces - sold (000's)
|
1,003
|
1,108
|
(105
|
)
|
(9%)
|
|
||||||||||
Average realized gold price per ounce(c)
|
$
|
1,581
|
$
|
1,304
|
$
|
277
|
21%
|
|
||||||||
|
||||||||||||||||
Financial data
|
|
|||||||||||||||
Metal sales
|
$
|
879.8
|
$
|
786.2
|
$
|
93.6
|
12%
|
|
||||||||
Production cost of sales
|
$
|
421.3
|
$
|
411.7
|
$
|
9.6
|
2%
|
|
||||||||
Depreciation, depletion and amortization
|
$
|
193.1
|
$
|
164.1
|
$
|
29.0
|
18%
|
|
||||||||
Operating earnings
|
$
|
192.6
|
$
|
115.4
|
$
|
77.2
|
67%
|
|
||||||||
Net earnings attributable to common shareholders
|
$
|
122.7
|
$
|
64.7
|
$
|
58.0
|
90%
|
|
(a)
|
"Total" includes 100% of Chirano production. "Attributable" includes Kinross' share of Chirano (90%) production.
|
(b)
|
"Gold equivalent ounces" include silver ounces produced and sold converted to a gold equivalent based on a ratio of the average spot market
prices for the commodities for each period. The ratio for the first quarter of 2020 was 93.63:1 (first quarter of 2019 - 83.74:1).
|
(c)
|
“Average realized gold price per ounce" is a non-GAAP financial measure and is defined in Section 11.
|
Three months ended March 31,
|
||||||||||||||||
(in millions)
|
2020
|
2019
|
Change
|
% Change(d)
|
||||||||||||
Operating segments
|
||||||||||||||||
Fort Knox
|
$
|
(7.4
|
)
|
$
|
(14.0
|
)
|
$
|
6.6
|
47%
|
|
||||||
Round Mountain
|
66.7
|
45.0
|
21.7
|
48%
|
|
|||||||||||
Bald Mountain
|
1.4
|
8.6
|
(7.2
|
)
|
(84%)
|
|
||||||||||
Paracatu
|
65.8
|
58.9
|
6.9
|
12%
|
|
|||||||||||
Kupol(a)
|
79.1
|
60.8
|
18.3
|
30%
|
|
|||||||||||
Tasiast
|
48.2
|
23.2
|
25.0
|
108%
|
|
|||||||||||
Chirano
|
(4.1
|
)
|
-
|
(4.1
|
)
|
|
nm
|
|
||||||||
Non-operating segment
|
|
|||||||||||||||
Corporate and other(b)(c)
|
(57.1)
|
(67.1
|
)
|
10.0
|
15%
|
|
||||||||||
Total
|
$
|
192.6
|
$
|
115.4
|
$
|
77.2
|
67%
|
|
(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 corporate, shutdown, and other non-operating assets (including Chulbatkan, Kettle River-Buckhorn, La Coipa, Lobo-Marte and Maricunga).
|
(c)
|
The Company suspended mining and crushing activities at Maricunga in the third quarter of 2016, however there was continued production through 2019 as ounces continued to be recovered
from heap leach pads until the fourth quarter of 2019 when all processing activities transitioned to care and maintenance. As such the Maricunga segment was reclassified as non-operating within the Corporate and other segment in 2020.
|
(d)
|
"nm" means not meaningful.
|
Three months ended March 31,
|
||||||||||||||||
|
2020
|
2019
|
Change
|
% Change
|
||||||||||||
Operating Statistics
|
||||||||||||||||
Tonnes ore mined (000's)
|
6,795
|
5,796
|
999
|
17%
|
|
|||||||||||
Tonnes processed (000's)(a)
|
7,553
|
5,851
|
1,702
|
29%
|
|
|||||||||||
Grade (grams/tonne)(b)
|
0.60
|
0.72
|
(0.12
|
)
|
(17%)
|
|
||||||||||
Recovery(b)
|
80.0%
|
|
83.5%
|
|
(3.5%)
|
|
(4%)
|
|
||||||||
Gold equivalent ounces:
|
|
|||||||||||||||
Produced
|
51,667
|
37,613
|
14,054
|
37%
|
|
|||||||||||
Sold
|
50,768
|
37,937
|
12,831
|
34%
|
|
|||||||||||
|
||||||||||||||||
Financial Data (in millions)
|
|
|||||||||||||||
Metal sales
|
$
|
80.3
|
$
|
49.5
|
$
|
30.8
|
62%
|
|
||||||||
Production cost of sales
|
64.6
|
38.8
|
25.8
|
66%
|
|
|||||||||||
Depreciation, depletion and amortization
|
22.8
|
18.0
|
4.8
|
27%
|
|
|||||||||||
|
(7.1
|
)
|
(7.3
|
)
|
0.2
|
3%
|
|
|||||||||
Other operating expense
|
0.3
|
6.5
|
(6.2
|
)
|
(95%)
|
|
||||||||||
Exploration and business development
|
-
|
0.2
|
(0.2
|
)
|
(100%)
|
|
||||||||||
Segment operating loss
|
$
|
(7.4
|
)
|
$
|
(14.0
|
)
|
$
|
6.6
|
47%
|
|
(a)
|
Includes 5,694,000 tonnes placed on the heap leach pads during the first quarter of 2020 (first quarter of 2019 - 4,295,000 tonnes).
|
(b)
|
Amount represents mill grade and recovery only. Ore placed on the heap leach pads had an average grade of 0.23 grams per tonne during the first quarter of 2020
(first quarter of 2019 - 0.22 grams per tonne). Due to the nature of heap leach operations, point-in-time recovery rates are not meaningful.
|
Three months ended March 31,
|
||||||||||||||||
|
2020
|
2019
|
Change
|
% Change(c)
|
||||||||||||
Operating Statistics
|
||||||||||||||||
Tonnes ore mined (000's)
|
3,700
|
3,904
|
(204
|
)
|
(5%)
|
|
||||||||||
Tonnes processed (000's)(a)
|
4,548
|
4,402
|
146
|
3%
|
|
|||||||||||
Grade (grams/tonne)(b)
|
0.83
|
1.31
|
(0.48
|
)
|
(37%)
|
|
||||||||||
Recovery(b)
|
83.3%
|
|
86.3%
|
|
(3.0%)
|
|
(3%)
|
|
||||||||
Gold equivalent ounces:
|
|
|||||||||||||||
Produced
|
84,465
|
85,135
|
(670
|
)
|
(1%)
|
|
||||||||||
Sold
|
85,715
|
83,614
|
2,101
|
3%
|
|
|||||||||||
|
||||||||||||||||
Financial Data (in millions)
|
|
|||||||||||||||
Metal sales
|
$
|
135.7
|
$
|
108.9
|
$
|
26.8
|
25%
|
|
||||||||
Production cost of sales
|
56.1
|
56.0
|
0.1
|
0%
|
|
|||||||||||
Depreciation, depletion and amortization
|
12.6
|
7.9
|
4.7
|
59%
|
|
|||||||||||
|
67.0
|
45.0
|
22.0
|
49%
|
|
|||||||||||
Exploration and business development
|
0.3
|
-
|
0.3
|
|
nm |
|
||||||||||
Segment operating earnings
|
$
|
66.7
|
$
|
45.0
|
$
|
21.7
|
48%
|
|
(a)
|
Includes 3,594,000 tonnes placed on the heap leach pads during the first quarter of 2020 (first quarter of 2019 - 3,557,000 tonnes).
|
(b)
|
Amount represents mill grade and recovery only. Ore placed on the heap leach pads had an average grade of 0.43 grams per tonne
during the first quarter of 2020 (first quarter of 2019 - 0.38 grams per tonne). Due to the nature of heap leach operations, point-in-time recovery rates are not meaningful.
|
(c)
|
"nm" means not meaningful.
|
Three months ended March 31,
|
||||||||||||||||
|
2020
|
2019
|
Change
|
% Change(b)
|
||||||||||||
Operating Statistics(a)
|
||||||||||||||||
Tonnes ore mined (000's)
|
3,254
|
2,659
|
595
|
22%
|
|
|||||||||||
Tonnes processed (000's)
|
3,254
|
2,836
|
418
|
15%
|
|
|||||||||||
Grade (grams/tonne)
|
0.55
|
0.48
|
0.07
|
15%
|
|
|||||||||||
Gold equivalent ounces:
|
|
|||||||||||||||
Produced
|
42,087
|
47,255
|
(5,168
|
)
|
(11%)
|
|
||||||||||
Sold
|
42,376
|
43,230
|
(854
|
)
|
(2%)
|
|
||||||||||
|
||||||||||||||||
Financial Data (in millions)
|
|
|||||||||||||||
Metal sales
|
$
|
66.9
|
$
|
56.4
|
$
|
10.5
|
19%
|
|
||||||||
Production cost of sales
|
35.7
|
29.2
|
6.5
|
22%
|
|
|||||||||||
Depreciation, depletion and amortization
|
26.7
|
16.2
|
10.5
|
65%
|
|
|||||||||||
|
4.5
|
11.0
|
(6.5
|
)
|
(59%)
|
|
||||||||||
Other operating expense
|
2.6
|
0.8
|
1.8
|
|
nm
|
|
||||||||||
Exploration and business development
|
0.5
|
1.6
|
(1.1
|
)
|
(69%)
|
|
||||||||||
Segment operating earnings
|
$
|
1.4
|
$
|
8.6
|
$
|
(7.2
|
)
|
(84%)
|
|
(a)
|
Due to the nature of heap leach operations, point-in-time recovery rates are not meaningful.
|
(b)
|
"nm" means not meaningful.
|
Three months ended March 31,
|
||||||||||||||||
|
2020
|
2019
|
Change
|
% Change
|
||||||||||||
Operating Statistics
|
||||||||||||||||
Tonnes ore mined (000's)
|
12,350
|
12,393
|
(43
|
)
|
(0%)
|
|
||||||||||
Tonnes processed (000's)
|
13,224
|
14,283
|
(1,059
|
)
|
(7%)
|
|
||||||||||
Grade (grams/tonne)
|
0.39
|
0.38
|
0.01
|
3%
|
|
|||||||||||
Recovery
|
74.9%
|
|
80.0%
|
|
(5.1%)
|
|
(6%)
|
|
||||||||
Gold equivalent ounces:
|
|
|||||||||||||||
Produced
|
124,367
|
146,776
|
(22,409
|
)
|
(15%)
|
|
||||||||||
Sold
|
121,197
|
146,397
|
(25,200
|
)
|
(17%)
|
|
||||||||||
|
||||||||||||||||
Financial Data (in millions)
|
|
|||||||||||||||
Metal sales
|
$
|
191.8
|
$
|
190.7
|
$
|
1.1
|
1%
|
|
||||||||
Production cost of sales
|
87.5
|
94.9
|
(7.4
|
)
|
(8%)
|
|
||||||||||
Depreciation, depletion and amortization
|
37.7
|
35.9
|
1.8
|
5%
|
|
|||||||||||
|
66.6
|
59.9
|
6.7
|
11%
|
|
|||||||||||
Other operating expense
|
0.8
|
1.0
|
(0.2
|
)
|
(20%)
|
|
||||||||||
Segment operating earnings
|
$
|
65.8
|
$
|
58.9
|
$
|
6.9
|
12%
|
|
Three months ended March 31,
|
||||||||||||||||
|
2020
|
2019
|
Change
|
% Change(d)
|
||||||||||||
Operating Statistics
|
|
|||||||||||||||
Tonnes ore mined (000's)(b)
|
500
|
362
|
138
|
38%
|
|
|||||||||||
Tonnes processed (000's)
|
425
|
425
|
-
|
0%
|
|
|||||||||||
Grade (grams/tonne):
|
|
|||||||||||||||
Gold
|
8.73
|
9.62
|
(0.89
|
)
|
(9%)
|
|
||||||||||
Silver
|
62.70
|
69.61
|
(6.91
|
)
|
(10%)
|
|
||||||||||
Recovery:
|
|
|||||||||||||||
Gold
|
94.5%
|
|
93.2%
|
|
1.3%
|
|
1%
|
|
||||||||
Silver
|
84.3%
|
|
82.1%
|
|
2.2%
|
|
3%
|
|
||||||||
Gold equivalent ounces:(c)
|
|
|||||||||||||||
Produced
|
120,885
|
130,088
|
(9,203
|
)
|
(7%)
|
|
||||||||||
Sold
|
122,024
|
130,414
|
(8,390
|
)
|
(6%)
|
|
||||||||||
Silver ounces:
|
|
|||||||||||||||
Produced (000's)
|
722
|
772
|
(50
|
)
|
(6%)
|
|
||||||||||
Sold (000's)
|
735
|
825
|
(90
|
)
|
(11%)
|
|
||||||||||
|
||||||||||||||||
Financial Data (in millions)
|
|
|||||||||||||||
Metal sales
|
$
|
192.7
|
$
|
169.9
|
$
|
22.8
|
13%
|
|
||||||||
Production cost of sales
|
76.9
|
78.0
|
(1.1
|
)
|
(1%)
|
|
||||||||||
Depreciation, depletion and amortization
|
34.4
|
27.4
|
7.0
|
26%
|
|
|||||||||||
|
81.4
|
64.5
|
16.9
|
26%
|
|
|||||||||||
Other operating expense
|
0.2
|
-
|
0.2
|
|
nm |
|
||||||||||
Exploration and business development
|
2.1
|
3.7
|
(1.6
|
)
|
(43%)
|
|
||||||||||
Segment operating earnings
|
$
|
79.1
|
$
|
60.8
|
$
|
18.3
|
30%
|
|
(a)
|
The Kupol segment includes the Kupol and Dvoinoye mines.
|
(b)
|
Includes 156,300 tonnes of ore mined from Dvoinoye during the first quarter of 2020 (first quarter of 2019 - 70,000 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 the first quarter of 2020 was 93.63:1 (first quarter of 2019 - 83.74:1).
|
(d)
|
"nm" means not meaningful.
|
Three months ended March 31,
|
||||||||||||||||
|
2020
|
2019
|
Change
|
% Change
|
||||||||||||
Operating Statistics
|
||||||||||||||||
Tonnes ore mined (000's)
|
1,160
|
1,962
|
(802
|
)
|
(41%)
|
|
||||||||||
Tonnes processed (000's)(a)
|
1,467
|
1,269
|
198
|
16%
|
|
|||||||||||
Grade (grams/tonne)(b)
|
2.31
|
2.37
|
(0.06
|
)
|
(3%)
|
|
||||||||||
Recovery(b)
|
95.0%
|
|
97.0%
|
|
(2.0%)
|
|
(2%)
|
|
||||||||
Gold equivalent ounces:
|
|
|||||||||||||||
Produced
|
103,837
|
101,358
|
2,479
|
2%
|
|
|||||||||||
Sold
|
93,950
|
99,758
|
(5,808
|
)
|
(6%)
|
|
||||||||||
|
||||||||||||||||
Financial Data (in millions)
|
|
|||||||||||||||
Metal sales
|
$
|
148.7
|
$
|
130.3
|
$
|
18.4
|
14%
|
|
||||||||
Production cost of sales
|
51.9
|
66.0
|
(14.1
|
)
|
(21%)
|
|
||||||||||
Depreciation, depletion and amortization
|
40.3
|
31.0
|
9.3
|
30%
|
|
|||||||||||
|
56.5
|
33.3
|
23.2
|
70%
|
|
|||||||||||
Other operating expense
|
7.9
|
9.7
|
(1.8
|
)
|
(19%)
|
|
||||||||||
Exploration and business development
|
0.4
|
0.4
|
-
|
0%
|
|
|||||||||||
Segment operating earnings
|
$
|
48.2
|
$
|
23.2
|
$
|
25.0
|
108%
|
|
(a)
|
Amount represents mill grade and recovery only. Due to the nature of dump leach operations, point-in-time recovery rates are not meaningful.
|
Three months ended March 31,
|
||||||||||||||||
|
2020
|
2019
|
Change
|
% Change(a)
|
||||||||||||
Operating Statistics
|
|
|||||||||||||||
Tonnes ore mined (000's)
|
690
|
499
|
191
|
38%
|
|
|||||||||||
Tonnes processed (000's)
|
873
|
908
|
(35
|
)
|
(4%)
|
|
||||||||||
Grade (grams/tonne)
|
1.73
|
1.97
|
(0.24
|
)
|
(12%)
|
|
||||||||||
Recovery
|
87.9%
|
|
91.8%
|
|
(3.9%)
|
|
(4%)
|
|
||||||||
Gold equivalent ounces:
|
|
|||||||||||||||
Produced
|
44,465
|
52,322
|
(7,857
|
)
|
(15%)
|
|
||||||||||
Sold
|
39,335
|
54,083
|
(14,748
|
)
|
(27%)
|
|
||||||||||
|
||||||||||||||||
Financial Data (in millions)
|
|
|||||||||||||||
Metal sales
|
$
|
61.6
|
$
|
70.6
|
$
|
(9.0
|
)
|
(13%)
|
|
|||||||
Production cost of sales
|
47.8
|
44.0
|
3.8
|
9%
|
|
|||||||||||
Depreciation, depletion and amortization
|
15.9
|
25.4
|
(9.5
|
)
|
(37%)
|
|
||||||||||
|
(2.1
|
)
|
1.2
|
(3.3
|
)
|
|
nm |
|
||||||||
Other operating expense
|
0.2
|
-
|
0.2
|
|
nm |
|
||||||||||
Exploration and business development
|
1.8
|
1.2
|
0.6
|
50%
|
|
|||||||||||
Segment operating loss
|
$
|
(4.1
|
)
|
$
|
-
|
$
|
(4.1
|
)
|
|
nm |
(a)
|
Operating and financial data are at 100% for all periods.
|
(b)
|
"nm" means not meaningful.
|
|
Three months ended March 31,
|
|||||||||||||||
(in millions)
|
2020
|
2019
|
Change
|
% Change
|
||||||||||||
Exploration and business development
|
$
|
19.1
|
$
|
19.5
|
$
|
(0.4
|
)
|
(2%)
|
|
|
Three months ended March 31,
|
|||||||||||||||
(in millions)
|
2020
|
2019
|
Change
|
% Change
|
||||||||||||
General and administrative
|
$
|
31.8
|
$
|
42.6
|
$
|
(10.8
|
)
|
(25%)
|
|
|
Three months ended March 31,
|
|||||||||||||||
(in millions)
|
2020
|
2019
|
Change
|
% Change(a)
|
||||||||||||
Net gains on dispositions of other assets
|
1.1
|
0.8
|
0.3
|
38%
|
|
|||||||||||
Foreign exchange (losses) gains - net
|
(2.3
|
)
|
2.1
|
(4.4
|
)
|
|
nm | |||||||||
Net non-hedge derivative (losses) gains
|
(0.8
|
)
|
0.4
|
(1.2
|
)
|
|
nm | |||||||||
Other
|
1.4
|
(0.6
|
)
|
2.0
|
|
nm | ||||||||||
Other income (expense) - net
|
$
|
(0.6
|
)
|
$
|
2.7
|
$
|
(3.3
|
)
|
(122%)
|
|
(a)
|
"nm" means not meaningful.
|
|
Three months ended March 31,
|
|||||||||||||||
(in millions)
|
2020
|
2019
|
Change
|
% Change
|
||||||||||||
Accretion of reclamation and remediation obligations
|
$
|
5.8
|
$
|
7.7
|
$
|
(1.9
|
)
|
(25%)
|
|
|||||||
Interest expense, including accretion of debt and lease liabilities
|
19.9
|
19.8
|
0.1
|
1%
|
|
|||||||||||
Finance expense
|
$
|
25.7
|
$
|
27.5
|
$
|
(1.8
|
)
|
(7%)
|
|
6.
|
LIQUIDITY AND CAPITAL RESOURCES
|
Three months ended March 31,
|
||||||||||||||||
(in millions)
|
2020
|
2019
|
Change
|
% Change(a)
|
||||||||||||
Cash Flow:
|
||||||||||||||||
Provided from operating activities
|
$
|
299.6
|
$
|
251.6
|
$
|
48.0
|
19%
|
|
||||||||
Used in investing activities
|
(339.6
|
)
|
(300.0
|
)
|
(39.6
|
)
|
(13%)
|
|
||||||||
Provided from financing activities
|
613.1
|
104.6
|
508.5
|
|
nm |
|
||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
(9.6
|
)
|
1.7
|
(11.3
|
)
|
|
nm |
|
||||||||
Increase in cash and cash equivalents
|
563.5
|
57.9
|
505.6
|
|
nm |
|
||||||||||
Cash and cash equivalents, beginning of period
|
575.1
|
349.0
|
226.1
|
65%
|
|
|||||||||||
Cash and cash equivalents, end of period
|
$
|
1,138.6
|
$
|
406.9
|
$
|
731.7
|
180%
|
|
(a)
|
“nm” means not meaningful.
|
|
Three months ended March 31,
|
|||||||||||||||
(in millions)
|
2020
|
2019
|
Change
|
% Change
|
||||||||||||
Operating segments
|
||||||||||||||||
Fort Knox
|
$
|
19.1
|
$
|
26.0
|
$
|
(6.9
|
)
|
(27%)
|
|
|||||||
Round Mountain
|
41.8
|
57.0
|
(15.2
|
)
|
(27%)
|
|
||||||||||
Bald Mountain
|
31.5
|
60.4
|
(28.9
|
)
|
(48%)
|
|
||||||||||
Paracatu
|
14.4
|
15.0
|
(0.6
|
)
|
(4%)
|
|
||||||||||
Kupol(b)
|
5.6
|
7.6
|
(2.0
|
)
|
(27%)
|
|
||||||||||
Tasiast
|
69.2
|
71.6
|
(2.4
|
)
|
(3%)
|
|
||||||||||
Chirano
|
5.1
|
3.3
|
1.8
|
55%
|
|
|||||||||||
Non-operating segment
|
|
|||||||||||||||
Corporate and other(c)
|
4.7
|
2.9
|
1.8
|
65%
|
|
|||||||||||
Total
|
$
|
191.4
|
$
|
243.9
|
$
|
(52.5
|
)
|
(22%)
|
|
(a)
|
“Capital expenditures” is as reported as “Additions to property, plant and equipment” on the interim condensed consolidated statement of cash flows which,
starting in 2020 excludes, “Interest paid capitalized to property, plant and equipment”, now reported as a separate item on the consolidated statement of cash flows.
|
(b)
|
Includes $0.7 million of capital expenditures at Dvoinoye during the first quarter of 2020 (first quarter of 2019 - $2.1 million).
|
(c)
|
“Corporate and other” includes corporate and other non-operating assets (including Chulbatkan, Kettle River-Buckhorn, La Coipa, Lobo-Marte, and Maricunga).
|
|
As at,
|
|||||||
|
March 31,
|
December 31,
|
||||||
(in millions)
|
2020
|
2019
|
||||||
Cash and cash equivalents
|
$
|
1,138.6
|
$
|
575.1
|
||||
Current assets
|
$
|
2,409.6
|
$
|
1,824.7
|
||||
Total assets
|
$
|
9,826.6
|
$
|
9,076.0
|
||||
Current liabilities
|
$
|
673.1
|
$
|
615.5
|
||||
Total long-term financial liabilities(a)
|
$
|
3,364.6
|
$
|
2,714.9
|
||||
Total debt and credit facilities
|
$
|
2,488.0
|
$
|
1,837.4
|
||||
Total liabilities
|
$
|
4,475.4
|
$
|
3,743.4
|
||||
Common shareholders' equity
|
$
|
5,336.5
|
$
|
5,318.5
|
||||
Non-controlling interest
|
$
|
14.7
|
$
|
14.1
|
||||
Statistics
|
||||||||
Working capital(b)
|
$
|
1,736.5
|
$
|
1,209.2
|
||||
Working capital ratio(c)
|
3.58:1
|
2.96:1
|
(a)
|
Includes long-term debt and credit facilities, provisions, and long-term lease liabilities.
|
(b)
|
Calculated as current assets less current liabilities.
|
(c)
|
Calculated as current assets divided by current liabilities.
|
Type of credit
|
|
Revolving credit facility
|
LIBOR plus 1.625%
|
Letters of credit
|
1.0833-1.625%
|
Standby fee applicable to unused availability
|
0.325%
|
|
As at,
|
|||||||
|
March 31,
|
December 31,
|
||||||
(in millions)
|
2020
|
2019
|
||||||
Utilization of revolving credit facility
|
$
|
(767.5
|
)
|
$
|
(119.1
|
)
|
||
Utilization of EDC facility
|
(227.2
|
)
|
(227.8
|
)
|
||||
Borrowings
|
$
|
(994.7
|
)
|
$
|
(346.9
|
)
|
||
|
||||||||
Available under revolving credit facility
|
$
|
732.5
|
$
|
1,380.9
|
||||
Available under EDC credit facility
|
72.8
|
72.2
|
||||||
Available credit
|
$
|
805.3
|
$
|
1,453.1
|
Foreign currency
|
2020
|
2021
|
2022
|
2023
|
||||||||||||
Brazilian real zero cost collars (in millions of U.S. dollars)
|
$
|
87.0
|
$
|
80.8
|
$
|
38.4
|
$
|
18.0
|
||||||||
Average put strike (Brazilian real)
|
3.77
|
4.23
|
4.56
|
5.00
|
||||||||||||
Average call strike (Brazilian real)
|
4.28
|
4.98
|
5.78
|
6.50
|
||||||||||||
Canadian dollar forward buy contracts (in millions of U.S. dollars)
|
$
|
23.4
|
$
|
25.2
|
$
|
12.0
|
||||||||||
Average rate (Canadian dollar)
|
1.32
|
1.37
|
1.40
|
|||||||||||||
Russian rouble zero cost collars (in millions of U.S. dollars)
|
$
|
35.9
|
$
|
37.2
|
$
|
12.0
|
||||||||||
Average put strike (Russian rouble)
|
65.3
|
70.4
|
85.0
|
|||||||||||||
Average call strike (Russian rouble)
|
78.6
|
87.9
|
103.5
|
|||||||||||||
Energy
|
||||||||||||||||
WTI oil swap contracts (barrels)
|
710,100
|
902,000
|
306,600
|
|||||||||||||
Average price
|
$
|
54.19
|
$
|
50.02
|
$
|
48.27
|
|
• |
734,400 barrels of WTI oil swap contracts at an average rate of $36.83 per barrel maturing from 2021 to 2023.
|
|
As at,
|
|||||||
|
March 31,
|
December 31,
|
||||||
(in millions)
|
2020
|
2019
|
||||||
Asset (liability)
|
||||||||
Foreign currency forward and collar contracts
|
$
|
(34.0
|
)
|
$
|
3.9
|
|||
Energy swap contracts
|
(29.3
|
)
|
4.0
|
|||||
Total return swap contracts
|
(2.3
|
)
|
(1.3
|
)
|
||||
|
$
|
(65.6
|
)
|
$
|
6.6
|
7.
|
SUMMARY OF QUARTERLY INFORMATION
|
2020
|
2019
|
2018
|
||||||||||||||||||||||||||||||
(in millions, except per share amounts)
|
Q1
|
Q4
|
Q3
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
||||||||||||||||||||||||
Metal sales
|
$
|
879.8
|
$
|
996.2
|
$
|
877.1
|
$
|
837.8
|
$
|
786.2
|
$
|
786.5
|
$
|
753.9
|
$
|
775.0
|
||||||||||||||||
Net earnings (loss) attributable to common shareholders
|
$
|
122.7
|
$
|
521.5
|
$
|
60.9
|
$
|
71.5
|
$
|
64.7
|
$
|
(27.7
|
)
|
$
|
(104.4
|
)
|
$
|
2.4
|
||||||||||||||
Basic earnings (loss) per share attributable to common shareholders
|
$
|
0.10
|
$
|
0.41
|
$
|
0.05
|
$
|
0.06
|
$
|
0.05
|
$
|
(0.02
|
)
|
$
|
(0.08
|
)
|
$
|
0.00
|
||||||||||||||
Diluted earnings (loss) per share attributable to common shareholders
|
$
|
0.10
|
$
|
0.41
|
$
|
0.05
|
$
|
0.06
|
$
|
0.05
|
$
|
(0.02
|
)
|
$
|
(0.08
|
)
|
$
|
0.00
|
||||||||||||||
Net cash flow provided from operating activities
|
$
|
299.6
|
$
|
408.6
|
$
|
231.7
|
$
|
333.0
|
$
|
251.6
|
$
|
183.5
|
$
|
127.2
|
$
|
184.5
|
8.
|
DISCLOSURE CONTROLS AND PROCEDURES AND INTERNAL CONTROL OVER FINANCIAL REPORTING
|
9.
|
CRITICAL ACCOUNTING POLICIES, ESTIMATES AND ACCOUNTING CHANGES
|
10.
|
RISK ANALYSIS
|
11.
|
SUPPLEMENTAL INFORMATION
|
|
Three months ended March 31,
|
|||||||
(in millions, except per share amounts)
|
2020
|
2019
|
||||||
Net earnings attributable to common shareholders - as reported
|
$
|
122.7
|
$
|
64.7
|
||||
Adjusting items:
|
||||||||
Foreign exchange losses (gains)
|
2.3
|
(2.1
|
)
|
|||||
Foreign exchange losses (gains) on translation of tax basis and foreign exchange
on deferred income taxes within income tax expense |
26.3
|
(1.2
|
)
|
|||||
Taxes in respect of prior periods
|
(3.0
|
)
|
5.7
|
|||||
Fort Knox pit wall slide related costs
|
-
|
6.5
|
||||||
Restructuring costs
|
-
|
9.2
|
||||||
U.S. CARES Act net benefit
|
(20.4
|
)
|
-
|
|||||
Other
|
(0.2
|
)
|
1.9
|
|||||
Tax effect of the above adjustments
|
(0.3
|
)
|
(1.4
|
)
|
||||
|
4.7
|
18.6
|
||||||
Adjusted net earnings attributable to common shareholders
|
$
|
127.4
|
$
|
83.3
|
||||
Weighted average number of common shares outstanding - Basic
|
1,254.6
|
1,250.6
|
||||||
Adjusted net earnings per share
|
$
|
0.10
|
$
|
0.07
|
|
Three months ended March 31,
|
|||||||
(in millions)
|
2020
|
2019
|
||||||
Net cash flow provided from operating activities - as reported
|
$
|
299.6
|
$
|
251.6
|
||||
Adjusting items:
|
||||||||
Working capital changes:
|
||||||||
Accounts receivable and other assets
|
78.6
|
(14.6
|
)
|
|||||
Inventories
|
(7.7
|
)
|
(37.4
|
)
|
||||
Accounts payable and other liabilities, including income taxes paid
|
48.1
|
31.2
|
||||||
|
119.0
|
(20.8
|
)
|
|||||
Adjusted operating cash flow
|
$
|
418.6
|
$
|
230.8
|
|
Three months ended March 31,
|
|||||||
(in millions, except ounces and production cost of sales per equivalent ounce)
|
2020
|
2019
|
||||||
Production cost of sales - as reported
|
$
|
421.3
|
$
|
411.7
|
||||
Less: portion attributable to Chirano non-controlling interest(a)
|
(4.8
|
)
|
(4.4
|
)
|
||||
Attributable(b) production cost of sales
|
$
|
416.5
|
$
|
407.3
|
||||
Gold equivalent ounces sold
|
556,676
|
603,057
|
||||||
Less: portion attributable to Chirano non-controlling interest(j)
|
(3,934
|
)
|
(5,408
|
)
|
||||
Attributable(b) gold equivalent ounces sold
|
552,742
|
597,649
|
||||||
Consolidated production cost of sales per equivalent ounce sold
|
$
|
757
|
$
|
683
|
||||
Attributable(b) production cost of sales per equivalent ounce sold
|
$
|
754
|
$
|
682
|
|
Three months ended March 31,
|
|||||||
(in millions, except ounces and production cost of sales per ounce)
|
2020
|
2019
|
||||||
Production cost of sales - as reported
|
$
|
421.3
|
$
|
411.7
|
||||
Less: portion attributable to Chirano non-controlling interest(a)
|
(4.8
|
)
|
(4.4
|
)
|
||||
Less: attributable(b) silver revenue(c)
|
(16.4
|
)
|
(17.1
|
)
|
||||
Attributable(b) production cost of sales net of silver by-product revenue
|
$
|
400.1
|
$
|
390.2
|
||||
Gold ounces sold
|
545,967
|
589,825
|
||||||
Less: portion attributable to Chirano non-controlling interest(j)
|
(3,924
|
)
|
(5,398
|
)
|
||||
Attributable(b) gold ounces sold
|
542,043
|
584,427
|
||||||
Attributable(b) production cost of sales per ounce sold on a by-product basis
|
$
|
738
|
$
|
668
|
|
Three months ended March 31,
|
|||||||
(in millions, except ounces and costs per ounce)
|
2020
|
2019
|
||||||
Production cost of sales - as reported
|
$
|
421.3
|
$
|
411.7
|
||||
Less: portion attributable to Chirano non-controlling interest(a)
|
(4.8
|
)
|
(4.4
|
)
|
||||
Less: attributable(b) silver revenue(c)
|
(16.4
|
)
|
(17.1
|
)
|
||||
Attributable(b) production cost of sales net of silver by-product revenue
|
$
|
400.1
|
$
|
390.2
|
||||
Adjusting items on an attributable(b) basis:
|
||||||||
General and administrative(d)
|
31.8
|
33.4
|
||||||
Other operating expense - sustaining(e)
|
4.4
|
5.5
|
||||||
Reclamation and remediation - sustaining(f)
|
13.5
|
11.4
|
||||||
Exploration and business development - sustaining(g)
|
11.9
|
13.9
|
||||||
Additions to property, plant and equipment - sustaining(h)
|
66.4
|
78.4
|
||||||
Lease payments - sustaining(i)
|
4.3
|
2.9
|
||||||
All-in Sustaining Cost on a by-product basis - attributable(b)
|
$
|
532.4
|
$
|
535.7
|
||||
Other operating expense - non-sustaining(e)
|
10.9
|
16.2
|
||||||
Reclamation and remediation - non-sustaining(f)
|
1.3
|
1.7
|
||||||
Exploration - non-sustaining(g)
|
7.0
|
5.5
|
||||||
Additions to property, plant and equipment - non-sustaining(h)
|
122.9
|
164.7
|
||||||
Lease payments - non-sustaining(i)
|
0.4
|
0.4
|
||||||
All-in Cost on a by-product basis - attributable(b)
|
$
|
674.9
|
$
|
724.2
|
||||
Gold ounces sold
|
545,967
|
589,825
|
||||||
Less: portion attributable to Chirano non-controlling interest(j)
|
(3,924
|
)
|
(5,398
|
)
|
||||
Attributable(b) gold ounces sold
|
542,043
|
584,427
|
||||||
Attributable(b) all-in sustaining cost per ounce sold on a by-product basis
|
$
|
982
|
$
|
917
|
||||
Attributable(b) all-in cost per ounce sold on a by-product basis
|
$
|
1,245
|
$
|
1,239
|
|
Three months ended March 31,
|
|||||||
(in millions, except ounces and costs per equivalent ounce)
|
2020
|
2019
|
||||||
Production cost of sales - as reported
|
$
|
421.3
|
$
|
411.7
|
||||
Less: portion attributable to Chirano non-controlling interest(a)
|
(4.8
|
)
|
(4.4
|
)
|
||||
Attributable(b) production cost of sales
|
$
|
416.5
|
$
|
407.3
|
||||
Adjusting items on an attributable(b) basis:
|
||||||||
General and administrative (d)
|
31.8
|
33.4
|
||||||
Other operating expense - sustaining(e)
|
4.4
|
5.5
|
||||||
Reclamation and remediation - sustaining(f)
|
13.5
|
11.4
|
||||||
Exploration and business development - sustaining(g)
|
11.9
|
13.9
|
||||||
Additions to property, plant and equipment - sustaining(h)
|
66.4
|
78.4
|
||||||
Lease payments - sustaining(i)
|
4.3
|
2.9
|
||||||
All-in Sustaining Cost - attributable(b)
|
$
|
548.8
|
$
|
552.8
|
||||
Other operating expense - non-sustaining(e)
|
10.9
|
16.2
|
||||||
Reclamation and remediation - non-sustaining(f)
|
1.3
|
1.7
|
||||||
Exploration - non-sustaining(g)
|
7.0
|
5.5
|
||||||
Additions to property, plant and equipment - non-sustaining(h)
|
122.9
|
164.7
|
||||||
Lease payments - non-sustaining(i)
|
0.4
|
0.4
|
||||||
All-in Cost - attributable(b)
|
$
|
691.3
|
$
|
741.3
|
||||
Gold equivalent ounces sold
|
556,676
|
603,057
|
||||||
Less: portion attributable to Chirano non-controlling interest(j)
|
(3,934
|
)
|
(5,408
|
)
|
||||
Attributable(b) gold equivalent ounces sold
|
552,742
|
597,649
|
||||||
Attributable(b) all-in sustaining cost per equivalent ounce sold
|
$
|
993
|
$
|
925
|
||||
Attributable(b) all-in cost per equivalent ounce sold
|
$
|
1,251
|
$
|
1,240
|
(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 interim condensed consolidated statement of operations, net of certain restructuring expenses.
General and administrative expenses are considered sustaining costs as they are required to be absorbed on a continuing basis for the effective operation and governance of the Company.
|
(e)
|
“Other operating expense – sustaining” is calculated as “Other operating expense” as reported on the interim condensed consolidated statement of operations,
less other operating and reclamation and remediation expenses related to non-sustaining activities as well as other items not reflective of the underlying operating performance of our business. Other operating expenses are
classified as either sustaining or non-sustaining based on the type and location of the expenditure incurred. The majority of other operating expenses that are incurred at existing operations are considered costs necessary to
sustain operations, and are therefore classified as sustaining. Other operating expenses incurred at locations where there is no current operation or related to other non-sustaining activities are classified as non-sustaining.
|
(f)
|
“Reclamation and remediation - sustaining” is calculated as current period accretion related to reclamation and remediation obligations plus current period
amortization of the corresponding reclamation and remediation assets, and is intended to reflect the periodic cost of reclamation and remediation for currently operating mines. Reclamation and remediation costs for development
projects or closed mines are excluded from this amount and classified as non-sustaining.
|
(g)
|
“Exploration and business development – sustaining” is calculated as “Exploration and business development” expenses as reported on the interim condensed
consolidated statement of operations, less non-sustaining exploration expenses. Exploration expenses are classified as either sustaining or non-sustaining based on a determination of the type and location of the exploration
expenditure. Exploration expenditures within the footprint of operating mines are considered costs required to sustain current operations and so are included in sustaining costs. Exploration expenditures focused on new ore bodies
near existing mines (i.e. brownfield), new exploration projects (i.e. greenfield) or for other generative exploration activity not linked to existing mining operations are classified as non-sustaining. Business development expenses
are considered sustaining costs as they are required for general operations.
|
(h)
|
“Additions to property, plant and equipment – sustaining” represents the majority of capital expenditures at existing operations including capitalized
exploration costs, periodic capitalized stripping and underground mine development costs, ongoing replacement of mine equipment and other capital facilities and other capital expenditures and is calculated as total additions to
property, plant and equipment (as reported on the consolidated statements of cash flows), less capitalized interest and non-sustaining capital. Non-sustaining capital represents capital expenditures for major projects, including
major capital stripping projects at existing operations that are expected to materially benefit the operation, as well as enhancement capital for significant infrastructure improvements at existing operations. Non-sustaining capital
expenditures during the three months ended March 31, 2020, primarily related to major projects at Tasiast, Round Mountain and Fort Knox. Non-sustaining capital expenditures during the three months ended March 31, 2019, primarily
related to major projects at Round Mountain, Bald Mountain and Fort Knox.
|
(i)
|
“Lease payments – sustaining” represents the majority of lease payments as reported on the interim condensed consolidated statements of cash flows and is made
up of the principal and financing components of such cash payments, less non-sustaining lease payments. Lease payments for development projects or closed mines are classified as non-sustaining.
|
(j)
|
“Portion attributable to Chirano non-controlling interest” represents the non-controlling interest (10%) in the ounces sold from the Chirano mine.
|
(k)
|
“Average realized gold price per ounce” is a non-GAAP financial measure and is defined as gold metal sales divided by the total number of gold ounces sold. This
measure is intended to enable Management to better understand the price realized in each reporting period. The realized price measure does not have any standardized definition under IFRS and should not be considered a substitute for
measure of performance prepared in accordance with IFRS.
|
|
|
As at
|
|||||||
|
|
March 31,
|
December 31,
|
||||||
|
|
2020
|
2019
|
||||||
|
|
||||||||
Assets
|
|
||||||||
Current assets
|
|
||||||||
Cash and cash equivalents
|
Note 6
|
$
|
1,138.6
|
$
|
575.1
|
||||
Restricted cash
|
Note 6
|
13.4
|
15.2
|
||||||
Accounts receivable and other assets
|
Note 6
|
89.5
|
137.4
|
||||||
Current income tax recoverable
|
Note 13
|
144.8
|
43.2
|
||||||
Inventories
|
Note 6
|
1,023.3
|
1,053.8
|
||||||
|
|
2,409.6
|
1,824.7
|
||||||
Non-current assets
|
|
||||||||
Property, plant and equipment
|
Note 6
|
6,632.2
|
6,340.0
|
||||||
Goodwill
|
|
158.8
|
158.8
|
||||||
Long-term investments
|
Note 6
|
68.2
|
126.2
|
||||||
Investment in joint venture
|
|
18.4
|
18.4
|
||||||
Other long-term assets
|
Note 6
|
539.4
|
572.7
|
||||||
Deferred tax assets
|
|
-
|
35.2
|
||||||
Total assets
|
|
$
|
9,826.6
|
$
|
9,076.0
|
||||
|
|
||||||||
Liabilities
|
|
||||||||
Current liabilities
|
|
||||||||
Accounts payable and accrued liabilities
|
Note 6
|
$
|
391.0
|
$
|
469.3
|
||||
Current income tax payable
|
Note 13
|
32.7
|
68.0
|
||||||
Current portion of provisions
|
Note 9
|
50.4
|
57.9
|
||||||
Other current liabilities
|
Note 6
|
57.5
|
20.3
|
||||||
Deferred payment obligation
|
Note 5
|
141.5
|
-
|
||||||
|
|
673.1
|
615.5
|
||||||
Non-current liabilities
|
|
||||||||
Long-term debt and credit facilities
|
Note 8
|
2,488.0
|
1,837.4
|
||||||
Provisions
|
Note 9
|
841.0
|
838.6
|
||||||
Long-term lease liabilities
|
|
35.6
|
38.9
|
||||||
Unrealized fair value of derivative liabilities
|
Note 7
|
22.8
|
0.8
|
||||||
Other long-term liabilities
|
|
92.2
|
107.7
|
||||||
Deferred tax liabilities
|
|
322.7
|
304.5
|
||||||
Total liabilities
|
|
$
|
4,475.4
|
$
|
3,743.4
|
||||
|
|
||||||||
Equity
|
|
||||||||
Common shareholders' equity
|
|
||||||||
Common share capital
|
Note 10
|
$
|
14,941.5
|
$
|
14,926.2
|
||||
Contributed surplus
|
|
230.4
|
242.1
|
||||||
Accumulated deficit
|
|
(9,706.7
|
)
|
(9,829.4
|
)
|
||||
Accumulated other comprehensive income (loss)
|
Note 6
|
(128.7
|
)
|
(20.4
|
)
|
||||
Total common shareholders' equity
|
|
5,336.5
|
5,318.5
|
||||||
Non-controlling interest
|
|
14.7
|
14.1
|
||||||
Total equity
|
|
$
|
5,351.2
|
$
|
5,332.6
|
||||
Commitments and contingencies
|
Note 15
|
||||||||
Subsequent event
|
Note 8
|
||||||||
Total liabilities and equity
|
|
$
|
9,826.6
|
$
|
9,076.0
|
||||
|
|
||||||||
Common shares
|
|
||||||||
Authorized
|
|
Unlimited
|
Unlimited
|
||||||
Issued and outstanding
|
Note 10
|
1,257,220,950
|
1,253,765,724
|
||||||
|
|
|
|
Three months ended
|
|||||||
|
|
March 31,
|
March 31,
|
||||||
|
|
2020
|
2019
|
||||||
|
|
||||||||
Revenue
|
|
||||||||
Metal sales
|
|
$
|
879.8
|
$
|
786.2
|
||||
|
|
||||||||
Cost of sales
|
|
||||||||
Production cost of sales
|
|
421.3
|
411.7
|
||||||
Depreciation, depletion and amortization
|
|
193.1
|
164.1
|
||||||
Total cost of sales
|
|
614.4
|
575.8
|
||||||
Gross profit
|
|
265.4
|
210.4
|
||||||
Other operating expense
|
|
21.9
|
32.9
|
||||||
Exploration and business development
|
|
19.1
|
19.5
|
||||||
General and administrative
|
|
31.8
|
42.6
|
||||||
Operating earnings
|
|
192.6
|
115.4
|
||||||
Other income (expense) - net
|
Note 6
|
(0.6
|
)
|
2.7
|
|||||
Finance income
|
|
2.0
|
2.1
|
||||||
Finance expense
|
Note 6
|
(25.7
|
)
|
(27.5
|
)
|
||||
Earnings before tax
|
|
168.3
|
92.7
|
||||||
Income tax expense - net
|
Note 13
|
(45.0
|
)
|
(28.1
|
)
|
||||
Net earnings
|
|
$
|
123.3
|
$
|
64.6
|
||||
Net earnings (loss) attributable to:
|
|
||||||||
Non-controlling interest
|
|
$
|
0.6
|
$
|
(0.1
|
)
|
|||
Common shareholders
|
|
$
|
122.7
|
$
|
64.7
|
||||
|
|
||||||||
Earnings per share attributable to common shareholders
|
|
||||||||
Basic
|
|
$
|
0.10
|
$
|
0.05
|
||||
Diluted
|
|
$
|
0.10
|
$
|
0.05
|
||||
|
|
||||||||
Weighted average number of common shares outstanding
(millions) |
Note 12
|
||||||||
Basic
|
|
1,254.6
|
1,250.6
|
||||||
Diluted
|
|
1,265.3
|
1,259.1
|
|
|
Three months ended
|
|||||||
|
|
March 31,
|
March 31,
|
||||||
|
|
2020
|
2019
|
||||||
|
|
||||||||
|
|
||||||||
Net earnings
|
|
$
|
123.3
|
$
|
64.6
|
||||
|
|
||||||||
Other comprehensive income (loss), net of tax:
|
Note 6
|
||||||||
Items that will not be reclassified to profit or loss:
|
|
||||||||
Equity investments at fair value through other comprehensive income ("FVOCI") - net change in fair value(a)
|
|
(52.9
|
)
|
(1.0
|
)
|
||||
|
|
||||||||
Items that are or may be reclassified to profit or loss in subsequent periods:
|
|
||||||||
Cash flow hedges - effective portion of changes in fair value(b)
|
|
(58.7
|
)
|
18.1
|
|||||
Cash flow hedges - reclassified to profit or loss(c)
|
|
3.3
|
1.3
|
||||||
|
|
(108.3
|
)
|
18.4
|
|||||
Total comprehensive income
|
|
$
|
15.0
|
$
|
83.0
|
||||
|
|
||||||||
Attributable to non-controlling interest
|
|
$
|
0.6
|
$
|
(0.1
|
)
|
|||
Attributable to common shareholders
|
|
$
|
14.4
|
$
|
83.1
|
||||
|
|
(a) Net of tax expense (recovery) of $nil (2019 -
$nil).
|
(b) Net of tax (recovery) expense of $(16.2) million
(2019 - $2.6 million).
(c) Net of tax expense of $1.1 million (2019 - $0.7
million).
|
|
Three months ended
|
|||||||
|
March 31,
|
March 31,
|
||||||
|
2020
|
2019
|
||||||
Net inflow (outflow) of cash related to the following activities:
|
||||||||
Operating:
|
||||||||
Net earnings
|
$
|
123.3
|
$
|
64.6
|
||||
Adjustments to reconcile net earnings to net cash provided from
operating activities: |
||||||||
Depreciation, depletion and amortization
|
193.1
|
164.1
|
||||||
Share-based compensation expense
|
4.5
|
4.6
|
||||||
Finance expense
|
25.7
|
27.5
|
||||||
Deferred tax expense (recovery)
|
68.4
|
(37.2
|
)
|
|||||
Foreign exchange losses and other
|
3.6
|
7.2
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable and other assets
|
(78.6
|
)
|
14.6
|
|||||
Inventories
|
7.7
|
37.4
|
||||||
Accounts payable and accrued liabilities
|
15.8
|
(14.2
|
)
|
|||||
Cash flow provided from operating activities
|
363.5
|
268.6
|
||||||
Income taxes paid
|
(63.9
|
)
|
(17.0
|
)
|
||||
Net cash flow provided from operating activities
|
299.6
|
251.6
|
||||||
Investing:
|
||||||||
Additions to property, plant and equipment
|
(191.4
|
)
|
(243.9
|
)
|
||||
Interest paid capitalized to property, plant and equipment
|
(22.3
|
)
|
(20.9
|
)
|
||||
Acquisitions
|
(128.3
|
)
|
(30.0
|
)
|
||||
Net additions to long-term investments and other assets
|
(1.9
|
)
|
(6.4
|
)
|
||||
Net proceeds from the sale of property, plant and equipment
|
1.5
|
0.9
|
||||||
Decrease (increase) in restricted cash
|
1.8
|
(0.6
|
)
|
|||||
Interest received and other - net
|
1.0
|
0.9
|
||||||
Net cash flow used in investing activities
|
(339.6
|
)
|
(300.0
|
)
|
||||
Financing:
|
||||||||
Proceeds from drawdown of debt
|
750.0
|
160.0
|
||||||
Repayment of debt
|
(100.0
|
)
|
(25.0
|
)
|
||||
Interest paid
|
(25.6
|
)
|
(27.3
|
)
|
||||
Payment of lease liabilities
|
(4.7
|
)
|
(3.3
|
)
|
||||
Other - net
|
(6.6
|
)
|
0.2
|
|||||
Net cash flow provided from financing activities
|
613.1
|
104.6
|
||||||
Effect of exchange rate changes on cash and cash equivalents
|
(9.6
|
)
|
1.7
|
|||||
Increase in cash and cash equivalents
|
563.5
|
57.9
|
||||||
Cash and cash equivalents, beginning of period
|
575.1
|
349.0
|
||||||
Cash and cash equivalents, end of period
|
$
|
1,138.6
|
$
|
406.9
|
||||
|
|
Three months ended
|
|||||||
|
March 31,
|
March 31,
|
||||||
|
2020
|
2019
|
||||||
|
||||||||
Common share capital
|
||||||||
Balance at the beginning of the period
|
$
|
14,926.2
|
$
|
14,913.4
|
||||
Transfer from contributed surplus on exercise of restricted shares
|
7.1
|
5.3
|
||||||
Options exercised, including cash
|
8.2
|
0.5
|
||||||
Balance at the end of the period
|
$
|
14,941.5
|
$
|
14,919.2
|
||||
|
||||||||
Contributed surplus
|
||||||||
Balance at the beginning of the period
|
$
|
242.1
|
$
|
239.8
|
||||
Share-based compensation
|
4.5
|
4.6
|
||||||
Transfer of fair value of exercised options and restricted shares
|
(16.2
|
)
|
(9.8
|
)
|
||||
Balance at the end of the period
|
$
|
230.4
|
$
|
234.6
|
||||
|
||||||||
Accumulated deficit
|
||||||||
Balance at the beginning of the period
|
$
|
(9,829.4
|
)
|
$
|
(10,548.0
|
)
|
||
Net earnings attributable to common shareholders
|
122.7
|
64.7
|
||||||
Balance at the end of the period
|
$
|
(9,706.7
|
)
|
$
|
(10,483.3
|
)
|
||
|
||||||||
Accumulated other comprehensive income (loss)
|
||||||||
Balance at the beginning of the period
|
$
|
(20.4
|
)
|
$
|
(98.5
|
)
|
||
Other comprehensive income (loss), net of tax
|
(108.3
|
)
|
18.4
|
|||||
Balance at the end of the period
|
$
|
(128.7
|
)
|
$
|
(80.1
|
)
|
||
Total accumulated deficit and accumulated other comprehensive income (loss)
|
$
|
(9,835.4
|
)
|
$
|
(10,563.4
|
)
|
||
|
||||||||
Total common shareholders' equity
|
$
|
5,336.5
|
$
|
4,590.4
|
||||
|
||||||||
Non-controlling interest
|
||||||||
Balance at the beginning of the period
|
$
|
14.1
|
$
|
20.6
|
||||
Net earnings (loss) attributable to non-controlling interest
|
0.6
|
(0.1
|
)
|
|||||
Balance at the end of the period
|
$
|
14.7
|
$
|
20.5
|
||||
|
||||||||
Total equity
|
$
|
5,351.2
|
$
|
4,610.9
|
||||
|
1.
|
DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS
|
2.
|
BASIS OF PRESENTATION
|
3.
|
SIGNIFICANT ESTIMATES AND ASSUMPTIONS
|
4.
|
CHANGES IN SIGNIFICANT ACCOUNTING POLICIES
|
5.
|
ACQUISITIONS
|
Purchase price allocation
|
||||
Mineral interests - pre-development properties
|
$
|
278.9
|
||
Land, plant and equipment
|
8.0
|
|||
Total property, plant and equipment
|
286.9
|
|||
Net working capital
|
3.6
|
|||
Total net assets acquired
|
$
|
290.5
|
6.
|
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT DETAILS
|
i.
|
Cash and cash equivalents:
|
|
March 31,
|
December 31,
|
||||||
|
2020
|
2019
|
||||||
Cash on hand and balances with banks
|
$
|
447.3
|
$
|
305.6
|
||||
Short-term deposits
|
691.3
|
269.5
|
||||||
|
$
|
1,138.6
|
$
|
575.1
|
|
March 31,
|
December 31,
|
||||||
|
2020
|
2019
|
||||||
Restricted cash(a)
|
$
|
13.4
|
$
|
15.2
|
(a)
|
Restricted cash relates to loan escrow judicial deposits and environmental indemnity deposits.
|
ii.
|
Accounts receivable and other assets:
|
|
March 31,
|
December 31,
|
||||||
|
2020
|
2019
|
||||||
Trade receivables
|
$
|
8.5
|
$
|
6.9
|
||||
Prepaid expenses
|
18.7
|
25.2
|
||||||
VAT receivable
|
36.6
|
69.6
|
||||||
Deposits
|
16.5
|
10.5
|
||||||
Unrealized fair value of derivative assets(a)
|
0.1
|
7.2
|
||||||
Other
|
9.1
|
18.0
|
||||||
|
$
|
89.5
|
$
|
137.4
|
(a)
|
See Note 7 for details of the current portion of unrealized fair value of derivative assets.
|
iii.
|
Inventories:
|
|
March 31,
|
December 31,
|
||||||
|
2020
|
2019
|
||||||
Ore in stockpiles(a)
|
$
|
294.7
|
$
|
300.3
|
||||
Ore on leach pads(b)
|
406.4
|
384.7
|
||||||
In-process
|
88.6
|
99.2
|
||||||
Finished metal
|
66.3
|
52.3
|
||||||
Materials and supplies
|
496.6
|
520.6
|
||||||
|
1,352.6
|
1,357.1
|
||||||
Long-term portion of ore in stockpiles and ore on leach pads(a),(b)
|
(329.3
|
)
|
(303.3
|
)
|
||||
|
$
|
1,023.3
|
$
|
1,053.8
|
(a)
|
Ore in stockpiles relates to the Company’s operating mines. Low-grade material not scheduled for processing within the next 12 months is included in other long-term
assets on the consolidated balance sheets. See Note 6vi.
|
(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 2020, Bald Mountain in 2023, Round Mountain in 2026 and Fort Knox in 2028. Material not scheduled for processing within the next 12 months is included in other long-term assets on the
consolidated balance sheets. See Note 6vi.
|
iv.
|
Property, plant and equipment:
|
|
Mineral Interests
|
|||||||||||||||
|
Land, plant and equipment(a)
|
Development and operating properties(b)
|
Pre-development properties
|
Total
|
||||||||||||
Cost
|
||||||||||||||||
Balance at January 1, 2020
|
$
|
9,715.0
|
$
|
9,540.6
|
$
|
13.4
|
$
|
19,269.0
|
||||||||
Additions
|
65.6
|
152.2
|
1.3
|
219.1
|
||||||||||||
Acquisitions(c)
|
8.0
|
-
|
278.9
|
286.9
|
||||||||||||
Capitalized interest
|
2.7
|
6.2
|
-
|
8.9
|
||||||||||||
Disposals
|
(8.0
|
)
|
-
|
-
|
(8.0
|
)
|
||||||||||
Other
|
0.1
|
(0.1
|
)
|
-
|
-
|
|||||||||||
Balance at March 31, 2020
|
9,783.4
|
9,698.9
|
293.6
|
19,775.9
|
||||||||||||
|
||||||||||||||||
Accumulated depreciation, depletion and amortization
|
||||||||||||||||
Balance at January 1, 2020
|
$
|
(6,114.1
|
)
|
$
|
(6,814.9
|
)
|
$
|
-
|
$
|
(12,929.0
|
)
|
|||||
Depreciation, depletion and amortization
|
(145.5
|
)
|
(76.5
|
)
|
-
|
(222.0
|
)
|
|||||||||
Disposals
|
7.5
|
-
|
-
|
7.5
|
||||||||||||
Other
|
(0.2
|
)
|
-
|
-
|
(0.2
|
)
|
||||||||||
Balance at March 31, 2020
|
(6,252.3
|
)
|
(6,891.4
|
)
|
-
|
(13,143.7
|
)
|
|||||||||
|
||||||||||||||||
Net book value
|
$
|
3,531.1
|
$
|
2,807.5
|
$
|
293.6
|
$
|
6,632.2
|
||||||||
|
||||||||||||||||
Amount included above as at March 31, 2020:
|
||||||||||||||||
Assets under construction
|
$
|
319.6
|
$
|
415.2
|
$
|
1.3
|
$
|
736.1
|
||||||||
Assets not being depreciated(d)
|
$
|
538.0
|
$
|
698.5
|
$
|
293.6
|
$
|
1,530.1
|
||||||||
|
(a)
|
Additions includes $1.2 million of right-of-use assets for lease arrangements entered into during the three months ended March 31, 2020. Depreciation, depletion and
amortization includes depreciation for leased right-of-use assets of $4.2 million during the three months ended March 31, 2020. The net book value of property, plant and equipment includes leased right-of use assets with an aggregate net
book value of $51.1 million as at March 31, 2020.
|
(b)
|
At March 31, 2020, the significant development and operating properties include projects at Fort Knox, Round Mountain, Bald Mountain, Paracatu, Kupol, Tasiast, Chirano
and Lobo-Marte.
|
(c)
|
During the three months ended March 31, 2020, the Company closed its acquisition of the Chulbatkan development project, with its mineral interests classified in
pre-development properties. See Note 5.
|
(d)
|
Assets not being depreciated relate to land, capitalized exploration and evaluation (“E&E”) costs, assets under construction, which relate to expansion projects,
and other assets that are in various stages of being readied for use.
|
|
Mineral Interests
|
|||||||||||||||
|
Land, plant and equipment(a)
|
Development and operating properties(b)
|
Pre-development properties
|
Total
|
||||||||||||
Cost
|
||||||||||||||||
Balance at January 1, 2019
|
$
|
9,184.2
|
$
|
8,816.6
|
$
|
13.4
|
$
|
18,014.2
|
||||||||
Additions
|
607.5
|
666.5
|
-
|
1,274.0
|
||||||||||||
Capitalized interest
|
14.7
|
32.7
|
-
|
47.4
|
||||||||||||
Disposals
|
(69.9
|
)
|
-
|
-
|
(69.9
|
)
|
||||||||||
Other
|
(21.5
|
)
|
24.8
|
-
|
3.3
|
|||||||||||
Balance at December 31, 2019
|
9,715.0
|
9,540.6
|
13.4
|
19,269.0
|
||||||||||||
|
||||||||||||||||
Accumulated depreciation, depletion, amortization and reversal of impairment charges
|
||||||||||||||||
Balance at January 1, 2019
|
$
|
(5,702.1
|
)
|
$
|
(6,793.0
|
)
|
$
|
-
|
$
|
(12,495.1
|
)
|
|||||
Depreciation, depletion and amortization
|
(572.9
|
)
|
(280.6
|
)
|
-
|
(853.5
|
)
|
|||||||||
Reversals of impairment charges(c)
|
102.4
|
259.4
|
-
|
361.8
|
||||||||||||
Disposals
|
60.5
|
-
|
-
|
60.5
|
||||||||||||
Other
|
(2.0
|
)
|
(0.7
|
)
|
-
|
(2.7
|
)
|
|||||||||
Balance at December 31, 2019
|
(6,114.1
|
)
|
(6,814.9
|
)
|
-
|
(12,929.0
|
)
|
|||||||||
|
||||||||||||||||
Net book value
|
$
|
3,600.9
|
$
|
2,725.7
|
$
|
13.4
|
$
|
6,340.0
|
||||||||
|
||||||||||||||||
Amount included above as at December 31, 2019:
|
||||||||||||||||
Assets under construction
|
$
|
308.8
|
$
|
438.2
|
$
|
-
|
$
|
747.0
|
||||||||
Assets not being depreciated(d)
|
$
|
538.3
|
$
|
735.9
|
$
|
13.4
|
$
|
1,287.6
|
||||||||
|
(a)
|
Additions includes $42.9 million of transitional adjustments for the recognition of leased right-of-use assets upon the Company’s adoption of IFRS 16 on January 1,
2019, as well as $22.7 million of right-of-use assets for lease arrangements entered into during the year ended December 31, 2019. Depreciation, depletion and amortization includes depreciation for leased right-of-use assets of $11.5
million during the year ended December 31, 2019. The net book value of property, plant and equipment includes leased right-of-use assets with an aggregate net book value of $54.1 million as at December 31, 2019.
|
(b)
|
At December 31, 2019, the significant development and operating properties include projects at Fort Knox, Round Mountain, Bald Mountain, Paracatu, Kupol, Tasiast,
Chirano, La Coipa and Lobo-Marte.
|
(c)
|
At December 31, 2019, impairment reversals were recorded at Paracatu and Tasiast, entirely related to property, plant and equipment.
|
(d)
|
Assets not being depreciated relate to land, capitalized E&E costs, assets under construction, which relate to expansion projects, and other assets that are in
various stages of being readied for use.
|
v.
|
Long-term investments:
|
|
March 31, 2020
|
December 31, 2019
|
||||||||||||||
|
Fair value
|
Gains (losses) in AOCI(a)
|
Fair value
|
Gains (losses) in AOCI(a)
|
||||||||||||
Investments in an accumulated gain position
|
$
|
-
|
$
|
-
|
$
|
79.8
|
$
|
10.3
|
||||||||
Investments in an accumulated loss position
|
68.2
|
(80.2
|
)
|
46.4
|
(36.5
|
)
|
||||||||||
Net realized gains (losses)
|
-
|
1.1
|
-
|
-
|
||||||||||||
|
$
|
68.2
|
$
|
(79.1
|
)
|
$
|
126.2
|
$
|
(26.2
|
)
|
(a)
|
See the interim condensed consolidated statements of comprehensive income and Note 6ix. for details of changes in fair values recognized in other comprehensive income
during the three months ended March 31, 2020 and 2019.
|
vi.
|
Other long-term assets:
|
March 31,
|
December 31,
|
|||||||
2020
|
2019
|
|||||||
Long-term portion of ore in stockpiles and ore on leach pads(a)
|
$
|
329.3
|
$
|
303.3
|
||||
Deferred charges, net of amortization
|
25.5
|
32.5
|
||||||
Long-term receivables(b)
|
121.6
|
171.0
|
||||||
Advances for the purchase of capital equipment
|
15.3
|
15.1
|
||||||
Unrealized fair value of derivative assets(c)
|
0.3
|
4.5
|
||||||
Other
|
47.4
|
46.3
|
||||||
$
|
539.4
|
$
|
572.7
|
(a)
|
Long-term portion of ore in stockpiles and ore on leach pads represents low-grade material not scheduled for processing within the next 12 months. As at March 31, 2020,
long-term ore in stockpiles was at the Company’s Fort Knox, Kupol, Tasiast and Paracatu mines, and long-term ore on leach pads was at the Company’s Fort Knox, Round Mountain, and Tasiast mines.
|
(b)
|
As at March 31, 2020, the estimated federal benefits related to the enactment of U.S Tax Reform legislation in December 2017, previously recorded in long-term
receivables (December 31, 2019 - $33.1 million), have been reclassified to current income tax recoverable as a result of the enactment of the March 27, 2020 enactment of the U.S. CARES Act. See Note 13.
|
(c)
|
See Note 7 for details of the non-current portion of unrealized fair value of derivative assets.
|
vii.
|
Accounts payable and accrued liabilities:
|
|
March 31,
|
December 31,
|
||||||
|
2020
|
2019
|
||||||
Trade payables
|
$
|
83.6
|
$
|
89.3
|
||||
Accrued liabilities
|
214.0
|
246.7
|
||||||
Employee related accrued liabilities
|
93.4
|
133.3
|
||||||
|
$
|
391.0
|
$
|
469.3
|
viii.
|
Other current liabilities:
|
|
March 31,
|
December 31,
|
||||||
|
2020
|
2019
|
||||||
Current portion of lease liabilities
|
$
|
14.3
|
$
|
16.0
|
||||
Current portion of unrealized fair value of derivative liabilities(a)
|
43.2
|
4.3
|
||||||
|
$
|
57.5
|
$
|
20.3
|
(a)
|
See Note 7 for details of the current portion of unrealized fair value of derivative liabilities.
|
ix.
|
Accumulated other comprehensive income (loss):
|
Long-term Investments
|
Derivative
Contracts
|
Total
|
||||||||||
Balance at December 31, 2018
|
$
|
(75.2
|
)
|
$
|
(23.3
|
)
|
$
|
(98.5
|
)
|
|||
Other comprehensive income before tax
|
49.3
|
36.8
|
86.1
|
|||||||||
Tax
|
(0.3
|
)
|
(7.7
|
)
|
(8.0
|
)
|
||||||
Balance at December 31, 2019
|
$
|
(26.2
|
)
|
$
|
5.8
|
$
|
(20.4
|
)
|
||||
Other comprehensive loss before tax
|
(52.9
|
)
|
(70.5
|
)
|
(123.4
|
)
|
||||||
Tax
|
-
|
15.1
|
15.1
|
|||||||||
Balance at March 31, 2020
|
$
|
(79.1
|
)
|
$
|
(49.6
|
)
|
$
|
(128.7
|
)
|
x.
|
Other income (expense) – net:
|
|
Three months ended March 31,
|
|||||||
|
2020
|
2019
|
||||||
Net gains on dispositions of other assets
|
$
|
1.1
|
$
|
0.8
|
||||
Foreign exchange (losses) gains - net
|
(2.3
|
)
|
2.1
|
|||||
Net non-hedge derivative (losses) gains
|
(0.8
|
)
|
0.4
|
|||||
Other
|
1.4
|
(0.6
|
)
|
|||||
|
$
|
(0.6
|
)
|
$
|
2.7
|
xi.
|
Finance expense:
|
|
Three months ended March 31,
|
|||||||
|
2020
|
2019
|
||||||
Accretion of reclamation and remediation obligations
|
$
|
(5.8
|
)
|
$
|
(7.7
|
)
|
||
Interest expense, including accretion of debt and lease liabilities(a), (b)
|
(19.9
|
)
|
(19.8
|
)
|
||||
|
$
|
(25.7
|
)
|
$
|
(27.5
|
)
|
(a)
|
During the three months ended March 31, 2020, $8.9 million of interest was capitalized to property, plant and equipment (three months ended March 31, 2019 - $9.4
million). See Note 6iv.
|
(b)
|
During the three months ended March 31, 2020, accretion of lease liabilities was $0.7 million (three months ended March 31, 2019 - $0.8 million).
|
7.
|
FAIR VALUE MEASUREMENT
|
(a)
|
Recurring fair value measurement
|
|
||||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Aggregate
Fair Value |
||||||||||||
Equity investments at FVOCI
|
$
|
68.2
|
$
|
-
|
$
|
-
|
$
|
68.2
|
||||||||
Derivative contracts:
|
||||||||||||||||
Foreign currency forward and collar contracts
|
-
|
(34.0
|
)
|
-
|
(34.0
|
)
|
||||||||||
Energy swap contracts
|
-
|
(29.3
|
)
|
-
|
(29.3
|
)
|
||||||||||
Total return swap contracts
|
-
|
(2.3
|
)
|
-
|
(2.3
|
)
|
||||||||||
|
$
|
68.2
|
$
|
(65.6
|
)
|
$
|
-
|
$
|
2.6
|
|
March 31, 2020
|
December 31, 2019
|
||||||||||||||
|
Asset / (Liability)
|
AOCI
|
Asset / (Liability)
|
AOCI
|
||||||||||||
Fair Value
|
Fair Value
|
|||||||||||||||
Currency contracts
|
||||||||||||||||
Foreign currency forward and collar
contracts(a) |
$
|
(34.0
|
)
|
$
|
(24.0
|
)
|
$
|
3.9
|
$
|
2.6
|
||||||
|
||||||||||||||||
Commodity contracts
|
||||||||||||||||
Energy swap contracts(b)
|
(29.3
|
)
|
(25.6
|
)
|
4.0
|
3.2
|
||||||||||
|
||||||||||||||||
Other contracts
|
||||||||||||||||
Total return swap contracts
|
(2.3
|
)
|
-
|
(1.3
|
)
|
-
|
||||||||||
|
||||||||||||||||
|
||||||||||||||||
Total all contracts
|
$
|
(65.6
|
)
|
$
|
(49.6
|
)
|
$
|
6.6
|
$
|
5.8
|
||||||
|
||||||||||||||||
Unrealized fair value of derivative assets
|
||||||||||||||||
Current
|
$
|
0.1
|
$
|
7.2
|
||||||||||||
Non-current
|
0.3
|
4.5
|
||||||||||||||
|
$
|
0.4
|
$
|
11.7
|
||||||||||||
Unrealized fair value of derivative liabilities
|
||||||||||||||||
Current
|
$
|
(43.2
|
)
|
$
|
(4.3
|
)
|
||||||||||
Non-current
|
(22.8
|
)
|
(0.8
|
)
|
||||||||||||
|
$
|
(66.0
|
)
|
$
|
(5.1
|
)
|
||||||||||
Total net fair value
|
$
|
(65.6
|
)
|
$
|
6.6
|
(a)
|
Of the total amount recorded in AOCI at March 31, 2020, $(13.7) 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 March 31, 2020, $(16.8) million will be reclassified to net earnings within the next 12 months as a result of settling the
contracts.
|
(b)
|
Fair value of financial assets and liabilities not measured and recognized at fair value
|
8.
|
LONG-TERM DEBT AND CREDIT FACILITIES
|
|
|
||||||||||||||||||||||||||||
|
|
March 31, 2020
|
December 31, 2019
|
||||||||||||||||||||||||||
|
|
Interest Rates
|
Nominal Amount
|
Deferred Financing Costs
|
Carrying Amount(a)
|
Fair
Value(b) |
Carrying Amount(a)
|
Fair
Value(b) |
|||||||||||||||||||||
|
|
||||||||||||||||||||||||||||
Senior notes
|
(i)
|
4.50%-6.875%
|
|
$
|
1,747.2
|
$
|
(9.2
|
)
|
$
|
1,738.0
|
$
|
1,741.2
|
$
|
1,737.4
|
$
|
1,881.9
|
|||||||||||||
Revolving credit facility
|
(ii)
|
|
LIBOR plus 1.625%
|
750.0
|
-
|
750.0
|
750.0
|
100.0
|
100.0
|
||||||||||||||||||||
Long-term debt and credit facility
|
$
|
2,497.2
|
$
|
(9.2
|
)
|
$
|
2,488.0
|
$
|
2,491.2
|
$
|
1,837.4
|
$
|
1,981.9
|
(a)
|
Includes transaction costs on senior notes financings.
|
(b)
|
The fair value of senior notes is primarily determined using quoted market determined variables. See Note 7(b).
|
(i)
|
Senior notes
|
(ii)
|
Corporate revolving credit facility
|
Type of credit
|
|
Revolving credit facility
|
LIBOR plus 1.625%
|
Letters of credit
|
1.0833-1.625%
|
Standby fee applicable to unused availability
|
0.325%
|
(iii)
|
Tasiast Loan
|
(iv)
|
Other
|
(v)
|
Changes in liabilities arising from financing activities
|
|
Long-term debt
|
Lease
|
Accrued interest
|
|||||||||||||
|
and credit facilities
|
liabilities
|
payable(a)
|
Total
|
||||||||||||
Balance as at January 1, 2020
|
$
|
1,837.4
|
$
|
54.9
|
$
|
33.3
|
$
|
1,925.6
|
||||||||
Changes from financing cash flows
|
||||||||||||||||
Debt issued
|
750.0
|
-
|
-
|
750.0
|
||||||||||||
Debt repayments
|
(100.0
|
)
|
-
|
-
|
(100.0
|
)
|
||||||||||
Interest paid
|
-
|
-
|
(25.6
|
)
|
(25.6
|
)
|
||||||||||
Payment of lease liabilities
|
-
|
(4.7
|
)
|
-
|
(4.7
|
)
|
||||||||||
|
2,487.4
|
50.2
|
7.7
|
2,545.3
|
||||||||||||
Other changes
|
||||||||||||||||
Interest expense and accretion
|
$
|
-
|
$
|
-
|
$
|
19.2
|
$
|
19.2
|
||||||||
Capitalized interest
|
-
|
-
|
8.9
|
8.9
|
||||||||||||
Capitalized interest paid
|
-
|
-
|
(22.3
|
)
|
(22.3
|
)
|
||||||||||
Additions of lease liabilities
|
-
|
1.2
|
-
|
1.2
|
||||||||||||
Accretion of lease liabilities
|
-
|
0.7
|
-
|
0.7
|
||||||||||||
Other cash changes
|
-
|
-
|
(3.0
|
)
|
(3.0
|
)
|
||||||||||
Other non-cash changes
|
0.6
|
(2.2
|
)
|
(1.0
|
)
|
(2.6
|
)
|
|||||||||
|
0.6
|
(0.3
|
)
|
1.8
|
2.1
|
|||||||||||
Balance as at March 31, 2020
|
$
|
2,488.0
|
$
|
49.9
|
$
|
9.5
|
$
|
2,547.4
|
(a)
|
Included in Accounts payable and accrued liabilities.
|
|
Long-term debt
|
Lease
|
Accrued interest
|
|||||||||||||
|
and credit facilities
|
liabilities(a)
|
payable(b)
|
Total
|
||||||||||||
Balance as at January 1, 2019(a)
|
$
|
1,735.0
|
$
|
42.9
|
$
|
33.3
|
$
|
1,811.2
|
||||||||
Changes from financing cash flows
|
||||||||||||||||
Debt issued
|
300.0
|
-
|
-
|
300.0
|
||||||||||||
Debt repayments
|
(200.0
|
)
|
-
|
-
|
(200.0
|
)
|
||||||||||
Interest paid
|
-
|
-
|
(55.6
|
)
|
(55.6
|
)
|
||||||||||
Payment of lease liabilities
|
-
|
(14.3
|
)
|
-
|
(14.3
|
)
|
||||||||||
|
1,835.0
|
28.6
|
(22.3
|
)
|
1,841.3
|
|||||||||||
Other changes
|
||||||||||||||||
Interest expense and accretion
|
$
|
-
|
$
|
-
|
$
|
74.0
|
$
|
74.0
|
||||||||
Capitalized interest
|
-
|
-
|
47.4
|
47.4
|
||||||||||||
Capitalized interest paid
|
-
|
-
|
(45.0
|
)
|
(45.0
|
)
|
||||||||||
Additions of lease liabilities
|
-
|
22.9
|
-
|
22.9
|
||||||||||||
Accretion of lease liabilities
|
-
|
2.9
|
-
|
2.9
|
||||||||||||
Other cash changes
|
-
|
-
|
(10.0
|
)
|
(10.0
|
)
|
||||||||||
Other non-cash changes
|
2.4
|
0.5
|
(10.8
|
)
|
(7.9
|
)
|
||||||||||
|
2.4
|
26.3
|
55.6
|
84.3
|
||||||||||||
Balance as at December 31, 2019
|
$
|
1,837.4
|
$
|
54.9
|
$
|
33.3
|
$
|
1,925.6
|
(a)
|
Total lease liabilities of $42.9 million were recognized upon the initial application of IFRS 16 as of January 1, 2019.
|
(b)
|
Included in Accounts payable and accrued liabilities.
|
9.
|
PROVISIONS
|
|
Reclamation and remediation obligations (i)
|
Other
|
Total
|
|||||||||
Balance at January 1, 2020
|
$
|
866.1
|
$
|
30.4
|
$
|
896.5
|
||||||
Additions
|
-
|
2.5
|
2.5
|
|||||||||
Reductions
|
-
|
(4.1
|
)
|
(4.1
|
)
|
|||||||
Reclamation spending
|
(9.3
|
)
|
-
|
(9.3
|
)
|
|||||||
Accretion
|
5.8
|
-
|
5.8
|
|||||||||
Balance at March 31, 2020
|
$
|
862.6
|
$
|
28.8
|
$
|
891.4
|
||||||
|
||||||||||||
Current portion
|
42.5
|
7.9
|
50.4
|
|||||||||
Non-current portion
|
820.1
|
20.9
|
841.0
|
|||||||||
|
$
|
862.6
|
$
|
28.8
|
$
|
891.4
|
(i)
|
Reclamation and remediation obligations
|
10.
|
COMMON SHARE CAPITAL
|
|
Three months ended March 31, 2020
|
Year ended December 31, 2019
|
||||||||||||||
|
Number of shares
|
Amount
|
Number of shares
|
Amount
|
||||||||||||
|
(000's)
|
(000's)
|
||||||||||||||
Common shares
|
||||||||||||||||
Balance at January 1,
|
1,253,766
|
$
|
14,926.2
|
1,250,229
|
$
|
14,913.4
|
||||||||||
Issued under share option and restricted share plans
|
3,455
|
15.3
|
3,537
|
12.8
|
||||||||||||
Balance at end of period
|
1,257,221
|
$
|
14,941.5
|
1,253,766
|
$
|
14,926.2
|
||||||||||
|
||||||||||||||||
Total common share capital
|
$
|
14,941.5
|
$
|
14,926.2
|
11.
|
SHARE-BASED PAYMENTS
|
i.
|
Share option plan
|
|
Three months ended March 31, 2020
|
|||||||
|
Number of options (000's)
|
Weighted average exercise price (CDN$)
|
||||||
Outstanding at January 1, 2020
|
10,170
|
$
|
5.16
|
|||||
Granted
|
-
|
-
|
||||||
Exercised
|
(1,626
|
)
|
4.76
|
|||||
Forfeited
|
(312
|
)
|
5.06
|
|||||
Expired
|
(1,195
|
)
|
8.03
|
|||||
Outstanding at end of period
|
7,037
|
$
|
4.77
|
|||||
Exercisable at end of period
|
5,185
|
$
|
4.80
|
ii.
|
Restricted share unit plans
|
|
Three months ended March 31, 2020
|
|||||||
|
Number of units (000's)
|
Weighted average fair value (CDN$/unit)
|
||||||
Outstanding at January 1, 2020
|
8,512
|
$
|
4.68
|
|||||
Granted
|
2,981
|
7.29
|
||||||
Redeemed
|
(2,975
|
)
|
4.81
|
|||||
Forfeited
|
(313
|
)
|
4.71
|
|||||
Outstanding at end of period
|
8,205
|
$
|
5.58
|
|
Three months ended March 31, 2020
|
|||||||
|
Number of units (000's)
|
Weighted average fair value (CDN$/unit)
|
||||||
Outstanding at January 1, 2020
|
4,937
|
$
|
5.16
|
|||||
Granted
|
1,402
|
7.81
|
||||||
Redeemed
|
(1,575
|
)
|
5.32
|
|||||
Forfeited
|
(115
|
)
|
4.73
|
|||||
Outstanding at end of period
|
4,649
|
$
|
5.92
|
iii.
|
Deferred share unit (“DSU”) plan
|
iv.
|
Employee share purchase plan (“SPP”)
|
12.
|
EARNINGS PER SHARE
|
(Number of common shares in thousands)
|
Three months ended March 31,
|
|||||||
|
2020
|
2019
|
||||||
Basic weighted average shares outstanding:
|
1,254,642
|
1,250,622
|
||||||
Weighted average shares dilution adjustments:
|
||||||||
Stock options
|
2,645
|
434
|
||||||
Restricted shares
|
3,104
|
2,715
|
||||||
Restricted performance shares
|
4,942
|
5,367
|
||||||
Diluted weighted average shares outstanding
|
1,265,333
|
1,259,138
|
||||||
|
||||||||
Weighted average shares dilution adjustments - exclusions:(a)
|
||||||||
Stock options(b)
|
664
|
9,158
|
||||||
Restricted shares
|
-
|
-
|
||||||
Restricted performance shares
|
-
|
-
|
(a)
|
These adjustments were excluded as they are anti-dilutive.
|
(b)
|
Dilutive stock options were determined using the Company’s average share price for the period. For the three months ended March 31, 2020, the average share price used
was $4.84 (three months ended March 31, 2019 - $3.34).
|
13.
|
INCOME AND OTHER TAXES
|
14.
|
SEGMENTED INFORMATION
|
|
Operating segments
|
Non-operating segments(a)
|
||||||||||||||||||||||||||||||||||
Three months ended March 31, 2020:
|
Fort Knox
|
Round Mountain
|
Bald Mountain
|
Paracatu
|
Kupol
|
Tasiast
|
Chirano
|
Corporate and other(b),(c)
|
Total
|
|||||||||||||||||||||||||||
Revenue
|
||||||||||||||||||||||||||||||||||||
Metal sales
|
$
|
80.3
|
135.7
|
66.9
|
191.8
|
192.7
|
148.7
|
61.6
|
2.1
|
$
|
879.8
|
|||||||||||||||||||||||||
Cost of sales
|
||||||||||||||||||||||||||||||||||||
Production cost of sales
|
64.6
|
56.1
|
35.7
|
87.5
|
76.9
|
51.9
|
47.8
|
0.8
|
421.3
|
|||||||||||||||||||||||||||
Depreciation, depletion and amortization
|
22.8
|
12.6
|
26.7
|
37.7
|
34.4
|
40.3
|
15.9
|
2.7
|
193.1
|
|||||||||||||||||||||||||||
Total cost of sales
|
87.4
|
68.7
|
62.4
|
125.2
|
111.3
|
92.2
|
63.7
|
3.5
|
614.4
|
|||||||||||||||||||||||||||
Gross profit (loss)
|
$
|
(7.1
|
)
|
67.0
|
4.5
|
66.6
|
81.4
|
56.5
|
(2.1
|
)
|
(1.4
|
)
|
$
|
265.4
|
||||||||||||||||||||||
Other operating expense
|
0.3
|
-
|
2.6
|
0.8
|
0.2
|
7.9
|
0.2
|
9.9
|
21.9
|
|||||||||||||||||||||||||||
Exploration and business development
|
-
|
0.3
|
0.5
|
-
|
2.1
|
0.4
|
1.8
|
14.0
|
19.1
|
|||||||||||||||||||||||||||
General and administrative
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
31.8
|
31.8
|
|||||||||||||||||||||||||||
Operating earnings (loss)
|
$
|
(7.4
|
)
|
66.7
|
1.4
|
65.8
|
79.1
|
48.2
|
(4.1
|
)
|
(57.1
|
)
|
$
|
192.6
|
||||||||||||||||||||||
Other income (expense) - net
|
(0.6
|
)
|
||||||||||||||||||||||||||||||||||
Finance income
|
2.0
|
|||||||||||||||||||||||||||||||||||
Finance expense
|
(25.7
|
)
|
||||||||||||||||||||||||||||||||||
Earnings before tax
|
$
|
168.3
|
|
Operating segments
|
Non-operating segments(a)
|
||||||||||||||||||||||||||||||||||
Three months ended March 31, 2019:
|
Fort Knox
|
Round Mountain
|
Bald Mountain
|
Paracatu
|
Kupol
|
Tasiast
|
Chirano
|
Corporate and other(b),(c)
|
Total
|
|||||||||||||||||||||||||||
Revenue
|
||||||||||||||||||||||||||||||||||||
Metal sales
|
$
|
49.5
|
108.9
|
56.4
|
190.7
|
169.9
|
130.3
|
70.6
|
9.9
|
$
|
786.2
|
|||||||||||||||||||||||||
Cost of sales
|
||||||||||||||||||||||||||||||||||||
Production cost of sales
|
38.8
|
56.0
|
29.2
|
94.9
|
78.0
|
66.0
|
44.0
|
4.8
|
411.7
|
|||||||||||||||||||||||||||
Depreciation, depletion and amortization
|
18.0
|
7.9
|
16.2
|
35.9
|
27.4
|
31.0
|
25.4
|
2.3
|
164.1
|
|||||||||||||||||||||||||||
Total cost of sales
|
56.8
|
63.9
|
45.4
|
130.8
|
105.4
|
97.0
|
69.4
|
7.1
|
575.8
|
|||||||||||||||||||||||||||
Gross profit (loss)
|
$
|
(7.3
|
)
|
45.0
|
11.0
|
59.9
|
64.5
|
33.3
|
1.2
|
2.8
|
$
|
210.4
|
||||||||||||||||||||||||
Other operating expense
|
6.5
|
-
|
0.8
|
1.0
|
-
|
9.7
|
-
|
14.9
|
32.9
|
|||||||||||||||||||||||||||
Exploration and business development
|
0.2
|
-
|
1.6
|
-
|
3.7
|
0.4
|
1.2
|
12.4
|
19.5
|
|||||||||||||||||||||||||||
General and administrative
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
42.6
|
42.6
|
|||||||||||||||||||||||||||
Operating earnings (loss)
|
$
|
(14.0
|
)
|
45.0
|
8.6
|
58.9
|
60.8
|
23.2
|
(0.0
|
)
|
(67.1
|
)
|
$
|
115.4
|
||||||||||||||||||||||
Other income (expense) - net
|
2.7
|
|||||||||||||||||||||||||||||||||||
Finance income
|
2.1
|
|||||||||||||||||||||||||||||||||||
Finance expense
|
(27.5
|
)
|
||||||||||||||||||||||||||||||||||
Earnings before tax
|
$
|
92.7
|
|
|
Operating segments
|
Non-operating segments(a)
|
||||||||||||||||||||||||||||||||||
|
Fort Knox
|
Round Mountain
|
Bald Mountain
|
Paracatu
|
Kupol
|
Tasiast
|
Chirano
|
Corporate and other(b),(c)
|
Total
|
|||||||||||||||||||||||||||
Property, plant and equipment at:
|
||||||||||||||||||||||||||||||||||||
March 31, 2020
|
$
|
415.5
|
681.6
|
689.5
|
1,717.5
|
302.7
|
1,946.7
|
144.0
|
734.7
|
$
|
6,632.2
|
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Total assets at:
|
||||||||||||||||||||||||||||||||||||
March 31, 2020
|
$
|
638.8
|
878.7
|
864.7
|
1,958.8
|
932.7
|
2,372.5
|
260.9
|
1,919.5
|
$
|
9,826.6
|
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Capital expenditures for three months ended March 31, 2020(d)
|
$
|
20.8
|
48.2
|
38.9
|
9.9
|
5.8
|
92.6
|
5.4
|
5.0
|
$
|
226.6
|
|
Operating segments
|
Non-operating segments(a)
|
||||||||||||||||||||||||||||||||||
|
Fort Knox
|
Round Mountain
|
Bald Mountain
|
Paracatu
|
Kupol
|
Tasiast
|
Chirano
|
Corporate and other(b),(c)
|
Total
|
|||||||||||||||||||||||||||
Property, plant and equipment at:
|
||||||||||||||||||||||||||||||||||||
December 31, 2019
|
$
|
421.1
|
653.7
|
685.1
|
1,748.1
|
332.8
|
1,924.8
|
152.9 |
421.5
|
$
|
6,340.0
|
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Total assets at:
|
||||||||||||||||||||||||||||||||||||
December 31, 2019
|
$
|
633.2
|
846.8
|
862.5
|
2,024.0
|
1,053.4
|
2,312.5
|
255.0
|
1,088.6
|
$
|
9,076.0
|
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Capital expenditures for three months ended March 31, 2019(d)
|
$
|
29.0 |
62.4
|
70.9
|
11.9
|
7.9 | 86.6 | 2.3 | 3.4 |
$
|
274.4
|
|
(a)
|
Non-operating segments include development and pre-development properties.
|
(b)
|
Corporate and other includes corporate, shutdown and other non-operating assets (including Maricunga, Kettle River-Buckhorn, La Coipa, Lobo-Marte and Chulbatkan).
|
(c)
|
The Company suspended mining and crushing activities at Maricunga in the third quarter of 2016, however there was continued production through 2019 as ounces
continued to be recovered from heap leach pads until the fourth quarter of 2019 when all processing activities transitioned to care and maintenance. As such the Maricunga segment was reclassified as non-operating within the Corporate and
other segment in 2020. Accordingly, Corporate and other includes metal sales and operating losses of Maricunga of $2.1 million and $(3.2) million, respectively, for the three months ended March 31, 2020 ($9.9 million and $(1.7) million,
respectively, for the three months ended March 31, 2019) as Maricunga continues to sell its remaining finished metals inventories.
|
(d)
|
Segment capital expenditures are presented on an accrual basis. Additions to property, plant and equipment in the interim condensed consolidated statements of cash
flows are presented on a cash basis.
|
15.
|
COMMITMENTS AND CONTINGENCIES
|
i.
|
Commitments
|
ii.
|
Contingencies
|
16.
|
CONSOLIDATING FINANCIAL STATEMENTS
|
|
Guarantors
|
|
|
|||||||||||||||||||||||||
|
Kinross Gold Corp.
|
Guarantor Subsidiaries
|
Guarantor Adjustments
|
Total
Guarantors |
Non-guarantors
|
Eliminations
|
Consolidated
|
|||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||
Current assets
|
||||||||||||||||||||||||||||
Cash and cash equivalents
|
$
|
775.2
|
$
|
113.4
|
$
|
-
|
$
|
888.6
|
$
|
250.0
|
$
|
-
|
$
|
1,138.6
|
||||||||||||||
Restricted cash
|
-
|
5.6
|
-
|
5.6
|
7.8
|
-
|
13.4
|
|||||||||||||||||||||
Accounts receivable and other assets
|
4.0
|
31.1
|
-
|
35.1
|
54.4
|
-
|
89.5
|
|||||||||||||||||||||
Intercompany receivables
|
615.5
|
1,345.7
|
(322.7
|
)
|
1,638.5
|
4,403.9
|
(6,042.4
|
)
|
-
|
|||||||||||||||||||
Current income tax recoverable
|
-
|
1.6
|
-
|
1.6
|
143.2
|
-
|
144.8
|
|||||||||||||||||||||
Inventories
|
9.7
|
505.1
|
-
|
514.8
|
508.5
|
-
|
1,023.3
|
|||||||||||||||||||||
|
1,404.4
|
2,002.5
|
(322.7
|
)
|
3,084.2
|
5,367.8
|
(6,042.4
|
)
|
$
|
2,409.6
|
||||||||||||||||||
Non-current assets
|
||||||||||||||||||||||||||||
Property, plant and equipment
|
77.2
|
3,505.5
|
-
|
3,582.7
|
3,049.5
|
-
|
6,632.2
|
|||||||||||||||||||||
Goodwill
|
-
|
158.8
|
-
|
158.8
|
-
|
-
|
158.8
|
|||||||||||||||||||||
Long-term investments
|
64.6
|
-
|
-
|
64.6
|
3.6
|
-
|
68.2
|
|||||||||||||||||||||
Investments in joint venture
|
-
|
-
|
-
|
-
|
18.4
|
-
|
18.4
|
|||||||||||||||||||||
Intercompany investments
|
4,452.8
|
4,670.4
|
(7,347.9
|
)
|
1,775.3
|
15,705.8
|
(17,481.1
|
)
|
-
|
|||||||||||||||||||
Other long-term assets
|
14.1
|
175.4
|
-
|
189.5
|
349.9
|
-
|
539.4
|
|||||||||||||||||||||
Long-term intercompany receivables
|
3,235.0
|
1,918.6
|
(1,770.0
|
)
|
3,383.6
|
3,695.6
|
(7,079.2
|
)
|
-
|
|||||||||||||||||||
Deferred tax assets
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
Total assets
|
$
|
9,248.1
|
$
|
12,431.2
|
$
|
(9,440.6
|
)
|
$
|
12,238.7
|
$
|
28,190.6
|
$
|
(30,602.7
|
)
|
$
|
9,826.6
|
||||||||||||
|
||||||||||||||||||||||||||||
Liabilities
|
||||||||||||||||||||||||||||
Current liabilities
|
||||||||||||||||||||||||||||
Accounts payable and accrued liabilities
|
$
|
44.6
|
$
|
161.8
|
$
|
-
|
$
|
206.4
|
$
|
184.6
|
$
|
-
|
$
|
391.0
|
||||||||||||||
Intercompany payables
|
135.0
|
923.1
|
(322.7
|
)
|
735.4
|
5,307.0
|
(6,042.4
|
)
|
-
|
|||||||||||||||||||
Current income tax payable
|
-
|
30.4
|
-
|
30.4
|
2.3
|
-
|
32.7
|
|||||||||||||||||||||
Current portion of provisions
|
-
|
20.7
|
-
|
20.7
|
29.7
|
-
|
50.4
|
|||||||||||||||||||||
Other current liabilities
|
15.9
|
24.5
|
-
|
40.4
|
17.1
|
-
|
57.5
|
|||||||||||||||||||||
Deferred payment obligation
|
-
|
-
|
-
|
-
|
141.5
|
-
|
141.5
|
|||||||||||||||||||||
|
195.5
|
1,160.5
|
(322.7
|
)
|
1,033.3
|
5,682.2
|
(6,042.4
|
)
|
673.1
|
|||||||||||||||||||
Non-current liabilities
|
||||||||||||||||||||||||||||
Long-term debt and credit facilities
|
2,488.0
|
-
|
-
|
2,488.0
|
-
|
-
|
2,488.0
|
|||||||||||||||||||||
Provisions
|
10.4
|
450.3
|
-
|
460.7
|
380.3
|
-
|
841.0
|
|||||||||||||||||||||
Long-term lease liabilities
|
16.5
|
11.5
|
-
|
28.0
|
7.6
|
-
|
35.6
|
|||||||||||||||||||||
Unrealized fair value of derivative liabilities
|
6.5
|
10.6
|
-
|
17.1
|
5.7
|
-
|
22.8
|
|||||||||||||||||||||
Other long-term liabilities
|
-
|
35.4
|
-
|
35.4
|
56.8
|
-
|
92.2
|
|||||||||||||||||||||
Long-term intercompany payables
|
1,194.7
|
3,148.2
|
(1,770.0
|
)
|
2,572.9
|
4,506.3
|
(7,079.2
|
)
|
-
|
|||||||||||||||||||
Deferred tax liabilities
|
-
|
266.8
|
-
|
266.8
|
55.9
|
-
|
322.7
|
|||||||||||||||||||||
Total liabilities
|
3,911.6
|
5,083.3
|
(2,092.7
|
)
|
6,902.2
|
10,694.8
|
(13,121.6
|
)
|
4,475.4
|
|||||||||||||||||||
|
||||||||||||||||||||||||||||
Equity
|
||||||||||||||||||||||||||||
Common shareholders' equity
|
||||||||||||||||||||||||||||
Common share capital
|
$
|
14,941.5
|
$
|
1,795.3
|
$
|
(1,795.3
|
)
|
$
|
14,941.5
|
$
|
19,603.9
|
$
|
(19,603.9
|
)
|
$
|
14,941.5
|
||||||||||||
Contributed surplus
|
230.4
|
3,496.0
|
(3,496.0
|
)
|
230.4
|
6,593.9
|
(6,593.9
|
)
|
230.4
|
|||||||||||||||||||
Accumulated deficit
|
(9,706.7
|
)
|
2,095.5
|
(2,095.5
|
)
|
(9,706.7
|
)
|
(8,646.9
|
)
|
8,646.9
|
(9,706.7
|
)
|
||||||||||||||||
Accumulated other comprehensive income (loss)
|
(128.7
|
)
|
(38.9
|
)
|
38.9
|
(128.7
|
)
|
(69.8
|
)
|
69.8
|
(128.7
|
)
|
||||||||||||||||
Total common shareholders' equity
|
5,336.5
|
7,347.9
|
(7,347.9
|
)
|
5,336.5
|
17,481.1
|
(17,481.1
|
)
|
5,336.5
|
|||||||||||||||||||
Non-controlling interest
|
-
|
-
|
-
|
-
|
14.7
|
-
|
14.7
|
|||||||||||||||||||||
Total equity
|
5,336.5
|
7,347.9
|
(7,347.9
|
)
|
5,336.5
|
17,495.8
|
(17,481.1
|
)
|
5,351.2
|
|||||||||||||||||||
|
||||||||||||||||||||||||||||
Total liabilities and equity
|
$
|
9,248.1
|
$
|
12,431.2
|
$
|
(9,440.6
|
)
|
$
|
12,238.7
|
$
|
28,190.6
|
$
|
(30,602.7
|
)
|
$
|
9,826.6
|
||||||||||||
|
|
Guarantors
|
|
|
|||||||||||||||||||||||||
|
Kinross Gold Corp.
|
Guarantor Subsidiaries
|
Guarantor Adjustments
|
Total
Guarantors |
Non-guarantors
|
Eliminations
|
Consolidated
|
|||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||
Current assets
|
||||||||||||||||||||||||||||
Cash and cash equivalents
|
$
|
124.9
|
$
|
119.5
|
$
|
-
|
$
|
244.4
|
$
|
330.7
|
$
|
-
|
$
|
575.1
|
||||||||||||||
Restricted cash
|
-
|
6.6
|
-
|
6.6
|
8.6
|
-
|
15.2
|
|||||||||||||||||||||
Accounts receivable and other assets
|
10.6
|
57.6
|
-
|
68.2
|
69.2
|
-
|
137.4
|
|||||||||||||||||||||
Intercompany receivables
|
601.5
|
1,231.0
|
(317.0
|
)
|
1,515.5
|
4,406.6
|
(5,922.1
|
)
|
-
|
|||||||||||||||||||
Current income tax recoverable
|
-
|
0.7
|
-
|
0.7
|
42.5
|
-
|
43.2
|
|||||||||||||||||||||
Inventories
|
3.4
|
507.1
|
-
|
510.5
|
543.3
|
-
|
1,053.8
|
|||||||||||||||||||||
|
740.4
|
1,922.5
|
(317.0
|
)
|
2,345.9
|
5,400.9
|
(5,922.1
|
)
|
$
|
1,824.7
|
||||||||||||||||||
Non-current assets
|
||||||||||||||||||||||||||||
Property, plant and equipment
|
77.8
|
3,497.3
|
-
|
3,575.1
|
2,764.9
|
-
|
6,340.0
|
|||||||||||||||||||||
Goodwill
|
-
|
158.8
|
-
|
158.8
|
-
|
-
|
158.8
|
|||||||||||||||||||||
Long-term investments
|
116.5
|
-
|
-
|
116.5
|
9.7
|
-
|
126.2
|
|||||||||||||||||||||
Investments in joint venture
|
-
|
-
|
-
|
-
|
18.4
|
-
|
18.4
|
|||||||||||||||||||||
Intercompany investments
|
4,354.0
|
4,497.2
|
(7,127.1
|
)
|
1,724.1
|
15,342.4
|
(17,066.5
|
)
|
-
|
|||||||||||||||||||
Other long-term assets
|
17.2
|
166.5
|
-
|
183.7
|
389.0
|
-
|
572.7
|
|||||||||||||||||||||
Long-term intercompany receivables
|
3,215.1
|
1,964.7
|
(1,759.8
|
)
|
3,420.0
|
3,500.3
|
(6,920.3
|
)
|
-
|
|||||||||||||||||||
Deferred tax assets
|
-
|
-
|
-
|
-
|
35.2
|
-
|
35.2
|
|||||||||||||||||||||
Total assets
|
$
|
8,521.0
|
$
|
12,207.0
|
$
|
(9,203.9
|
)
|
$
|
11,524.1
|
$
|
27,460.8
|
$
|
(29,908.9
|
)
|
$
|
9,076.0
|
||||||||||||
|
||||||||||||||||||||||||||||
Liabilities
|
||||||||||||||||||||||||||||
Current liabilities
|
||||||||||||||||||||||||||||
Accounts payable and accrued liabilities
|
$
|
89.1
|
$
|
208.7
|
$
|
-
|
$
|
297.8
|
$
|
171.5
|
$
|
-
|
$
|
469.3
|
||||||||||||||
Intercompany payables
|
123.0
|
858.1
|
(317.0
|
)
|
664.1
|
5,258.0
|
(5,922.1
|
)
|
-
|
|||||||||||||||||||
Current income tax payable
|
-
|
65.4
|
-
|
65.4
|
2.6
|
-
|
68.0
|
|||||||||||||||||||||
Current portion of provisions
|
-
|
25.7
|
-
|
25.7
|
32.2
|
-
|
57.9
|
|||||||||||||||||||||
Other current liabilities
|
2.6
|
10.8
|
-
|
13.4
|
6.9
|
-
|
20.3
|
|||||||||||||||||||||
Deferred payment obligation
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
|
214.7
|
1,168.7
|
(317.0
|
)
|
1,066.4
|
5,471.2
|
(5,922.1
|
)
|
615.5
|
|||||||||||||||||||
Non-current liabilities
|
||||||||||||||||||||||||||||
Long-term debt and credit facilities
|
1,837.4
|
-
|
-
|
1,837.4
|
-
|
-
|
1,837.4
|
|||||||||||||||||||||
Provisions
|
11.4
|
448.4
|
-
|
459.8
|
378.8
|
-
|
838.6
|
|||||||||||||||||||||
Long-term lease liabilities
|
18.4
|
11.5
|
-
|
29.9
|
9.0
|
-
|
38.9
|
|||||||||||||||||||||
Unrealized fair value of derivative liabilities
|
0.3
|
-
|
-
|
0.3
|
0.5
|
-
|
0.8
|
|||||||||||||||||||||
Other long-term liabilities
|
-
|
45.0
|
-
|
45.0
|
62.7
|
-
|
107.7
|
|||||||||||||||||||||
Long-term intercompany payables
|
1,120.3
|
3,141.7
|
(1,759.8
|
)
|
2,502.2
|
4,418.1
|
(6,920.3
|
)
|
-
|
|||||||||||||||||||
Deferred tax liabilities
|
-
|
264.6
|
-
|
264.6
|
39.9
|
-
|
304.5
|
|||||||||||||||||||||
Total liabilities
|
3,202.5
|
5,079.9
|
(2,076.8
|
)
|
6,205.6
|
10,380.2
|
(12,842.4
|
)
|
3,743.4
|
|||||||||||||||||||
|
||||||||||||||||||||||||||||
Equity
|
||||||||||||||||||||||||||||
Common shareholders' equity
|
||||||||||||||||||||||||||||
Common share capital
|
$
|
14,926.2
|
$
|
1,795.3
|
$
|
(1,795.3
|
)
|
$
|
14,926.2
|
$
|
19,276.8
|
$
|
(19,276.8
|
)
|
$
|
14,926.2
|
||||||||||||
Contributed surplus
|
242.1
|
3,476.0
|
(3,476.0
|
)
|
242.1
|
6,556.0
|
(6,556.0
|
)
|
242.1
|
|||||||||||||||||||
Accumulated deficit
|
(9,829.4
|
)
|
1,875.3
|
(1,875.3
|
)
|
(9,829.4
|
)
|
(8,712.2
|
)
|
8,712.2
|
(9,829.4
|
)
|
||||||||||||||||
Accumulated other comprehensive income (loss)
|
(20.4
|
)
|
(19.5
|
)
|
19.5
|
(20.4
|
)
|
(54.1
|
)
|
54.1
|
(20.4
|
)
|
||||||||||||||||
Total common shareholders' equity
|
5,318.5
|
7,127.1
|
(7,127.1
|
)
|
5,318.5
|
17,066.5
|
(17,066.5
|
)
|
5,318.5
|
|||||||||||||||||||
Non-controlling interest
|
-
|
-
|
-
|
-
|
14.1
|
-
|
14.1
|
|||||||||||||||||||||
Total equity
|
5,318.5
|
7,127.1
|
(7,127.1
|
)
|
5,318.5
|
17,080.6
|
(17,066.5
|
)
|
5,332.6
|
|||||||||||||||||||
|
||||||||||||||||||||||||||||
Total liabilities and equity
|
$
|
8,521.0
|
$
|
12,207.0
|
$
|
(9,203.9
|
)
|
$
|
11,524.1
|
$
|
27,460.8
|
$
|
(29,908.9
|
)
|
$
|
9,076.0
|
||||||||||||
|
|
Guarantors
|
|
|
|||||||||||||||||||||||||
|
Kinross Gold Corp.
|
Guarantor Subsidiaries
|
Guarantor Adjustments
|
Total
Guarantors |
Non-guarantors
|
Eliminations
|
Consolidated
|
|||||||||||||||||||||
Revenue
|
||||||||||||||||||||||||||||
Metal sales
|
$
|
462.1
|
$
|
471.7
|
$
|
(454.2
|
)
|
$
|
479.6
|
$
|
400.2
|
$
|
-
|
$
|
879.8
|
|||||||||||||
|
||||||||||||||||||||||||||||
Cost of sales
|
||||||||||||||||||||||||||||
Production cost of sales
|
451.6
|
244.0
|
(453.4
|
)
|
242.2
|
179.1
|
-
|
421.3
|
||||||||||||||||||||
Depreciation, depletion and amortization
|
1.2
|
100.8
|
(0.8
|
)
|
101.2
|
91.9
|
-
|
193.1
|
||||||||||||||||||||
Total cost of sales
|
452.8
|
344.8
|
(454.2
|
)
|
343.4
|
271.0
|
-
|
614.4
|
||||||||||||||||||||
Gross profit
|
9.3
|
126.9
|
-
|
136.2
|
129.2
|
-
|
265.4
|
|||||||||||||||||||||
Other operating expense
|
2.4
|
3.7
|
-
|
6.1
|
15.8
|
-
|
21.9
|
|||||||||||||||||||||
Exploration and business development
|
6.8
|
0.9
|
-
|
7.7
|
11.4
|
-
|
19.1
|
|||||||||||||||||||||
General and administrative
|
22.2
|
1.5
|
-
|
23.7
|
8.1
|
-
|
31.8
|
|||||||||||||||||||||
Operating earnings (loss)
|
(22.1
|
)
|
120.8
|
-
|
98.7
|
93.9
|
-
|
192.6
|
||||||||||||||||||||
Other income (expense) - net
|
10.1
|
10.3
|
-
|
20.4
|
(16.2
|
)
|
(4.8
|
)
|
(0.6
|
)
|
||||||||||||||||||
Equity in earnings (losses) of joint ventures and intercompany investments
|
133.8
|
86.7
|
(152.6
|
)
|
67.9
|
-
|
(67.9
|
)
|
-
|
|||||||||||||||||||
Finance income
|
20.9
|
11.5
|
(0.2
|
)
|
32.2
|
39.9
|
(70.1
|
)
|
2.0
|
|||||||||||||||||||
Finance expense
|
(18.8
|
)
|
(30.9
|
)
|
0.2
|
(49.5
|
)
|
(46.3
|
)
|
70.1
|
(25.7
|
)
|
||||||||||||||||
Earnings (loss) before tax
|
123.9
|
198.4
|
(152.6
|
)
|
169.7
|
71.3
|
(72.7
|
)
|
168.3
|
|||||||||||||||||||
Income tax (expense) recovery - net
|
(1.2
|
)
|
(45.8
|
)
|
-
|
(47.0
|
)
|
2.0
|
-
|
(45.0
|
)
|
|||||||||||||||||
Net earnings (loss)
|
$
|
122.7
|
$
|
152.6
|
$
|
(152.6
|
)
|
$
|
122.7
|
$
|
73.3
|
$
|
(72.7
|
)
|
$
|
123.3
|
||||||||||||
Net earnings (loss) attributable to:
|
||||||||||||||||||||||||||||
Non-controlling interest
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
0.6
|
$
|
-
|
$
|
0.6
|
||||||||||||||
Common shareholders
|
$
|
122.7
|
$
|
152.6
|
$
|
(152.6
|
)
|
$
|
122.7
|
$
|
72.7
|
$
|
(72.7
|
)
|
$
|
122.7
|
||||||||||||
|
|
Guarantors
|
|
|
|||||||||||||||||||||||||
|
Kinross Gold Corp.
|
Guarantor Subsidiaries
|
Guarantor Adjustments
|
Total
Guarantors |
Non-guarantors
|
Eliminations
|
Consolidated
|
|||||||||||||||||||||
Revenue
|
||||||||||||||||||||||||||||
Metal sales
|
$
|
394.9
|
$
|
397.5
|
$
|
(379.0
|
)
|
$
|
413.4
|
$
|
372.8
|
$
|
-
|
$
|
786.2
|
|||||||||||||
|
||||||||||||||||||||||||||||
Cost of sales
|
||||||||||||||||||||||||||||
Production cost of sales
|
387.6
|
218.3
|
(378.8
|
)
|
227.1
|
184.6
|
-
|
411.7
|
||||||||||||||||||||
Depreciation, depletion and amortization
|
0.9
|
78.1
|
(0.2
|
)
|
78.8
|
85.3
|
-
|
164.1
|
||||||||||||||||||||
Total cost of sales
|
388.5
|
296.4
|
(379.0
|
)
|
305.9
|
269.9
|
-
|
575.8
|
||||||||||||||||||||
Gross profit
|
6.4
|
101.1
|
-
|
107.5
|
102.9
|
-
|
210.4
|
|||||||||||||||||||||
Other operating expense
|
4.7
|
8.3
|
-
|
13.0
|
19.9
|
-
|
32.9
|
|||||||||||||||||||||
Exploration and business development
|
6.6
|
1.9
|
-
|
8.5
|
11.0
|
-
|
19.5
|
|||||||||||||||||||||
General and administrative
|
30.1
|
1.2
|
-
|
31.3
|
11.3
|
-
|
42.6
|
|||||||||||||||||||||
Operating earnings (loss)
|
(35.0
|
)
|
89.7
|
-
|
54.7
|
60.7
|
-
|
115.4
|
||||||||||||||||||||
Other income (expense) - net
|
6.1
|
0.1
|
-
|
6.2
|
(3.5
|
)
|
-
|
2.7
|
||||||||||||||||||||
Equity in earnings (losses) of joint ventures, associate and intercompany investments
|
91.4
|
39.8
|
(106.5
|
)
|
24.7
|
-
|
(24.7
|
)
|
-
|
|||||||||||||||||||
Finance income
|
20.2
|
15.7
|
(3.3
|
)
|
32.6
|
21.4
|
(51.9
|
)
|
2.1
|
|||||||||||||||||||
Finance expense
|
(18.0
|
)
|
(19.8
|
)
|
3.3
|
(34.5
|
)
|
(44.9
|
)
|
51.9
|
(27.5
|
)
|
||||||||||||||||
Earnings (loss) before tax
|
64.7
|
125.5
|
(106.5
|
)
|
83.7
|
33.7
|
(24.7
|
)
|
92.7
|
|||||||||||||||||||
Income tax (expense) recovery - net
|
-
|
(19.0
|
)
|
-
|
(19.0
|
)
|
(9.1
|
)
|
-
|
(28.1
|
)
|
|||||||||||||||||
Net earnings (loss)
|
$
|
64.7
|
$
|
106.5
|
$
|
(106.5
|
)
|
$
|
64.7
|
$
|
24.6
|
$
|
(24.7
|
)
|
$
|
64.6
|
||||||||||||
Net earnings (loss) attributable to:
|
||||||||||||||||||||||||||||
Non-controlling interest
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(0.1
|
)
|
$
|
-
|
$
|
(0.1
|
)
|
||||||||||||
Common shareholders
|
$
|
64.7
|
$
|
106.5
|
$
|
(106.5
|
)
|
$
|
64.7
|
$
|
24.7
|
$
|
(24.7
|
)
|
$
|
64.7
|
||||||||||||
|
|
Guarantors
|
|||||||||||||||||||||||||||
|
Kinross Gold Corp.
|
Guarantor Subsidiaries
|
Guarantor Adjustments
|
Total
Guarantors |
Non-guarantors
|
Eliminations
|
Consolidated
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net earnings (loss)
|
$
|
122.7
|
$
|
152.6
|
$
|
(152.6
|
)
|
$
|
122.7
|
$
|
73.3
|
$
|
(72.7
|
)
|
$
|
123.3
|
||||||||||||
|
||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||||||||||||||
Items that will not be reclassified to profit or loss:
|
||||||||||||||||||||||||||||
Equity investments at fair value through other comprehensive income ("FVOCI") - net change in fair value (a)
|
(51.8
|
)
|
-
|
-
|
(51.8
|
)
|
(1.1
|
)
|
-
|
(52.9
|
)
|
|||||||||||||||||
Items that are or may be reclassified to profit or loss in subsequent periods:
|
||||||||||||||||||||||||||||
Cash flow hedges - effective portion of changes in fair value (b)
|
(23.2
|
)
|
(35.5
|
)
|
-
|
(58.7
|
)
|
-
|
-
|
(58.7
|
)
|
|||||||||||||||||
Cash flow hedges - reclassified to profit or loss (c)
|
0.8
|
2.5
|
-
|
3.3
|
-
|
-
|
3.3
|
|||||||||||||||||||||
|
(74.2
|
)
|
(33.0
|
)
|
-
|
(107.2
|
)
|
(1.1
|
)
|
-
|
(108.3
|
)
|
||||||||||||||||
Equity in other comprehensive income (loss) of intercompany investments
|
(34.1
|
)
|
-
|
33.0
|
(1.1
|
)
|
-
|
1.1
|
-
|
|||||||||||||||||||
Total comprehensive income (loss)
|
$
|
14.4
|
$
|
119.6
|
$
|
(119.6
|
)
|
$
|
14.4
|
$
|
72.2
|
$
|
(71.6
|
)
|
$
|
15.0
|
||||||||||||
|
||||||||||||||||||||||||||||
Attributable to non-controlling interest
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
0.6
|
$
|
-
|
$
|
0.6
|
||||||||||||||
Attributable to common shareholders
|
$
|
14.4
|
$
|
119.6
|
$
|
(119.6
|
)
|
$
|
14.4
|
$
|
71.6
|
$
|
(71.6
|
)
|
$
|
14.4
|
||||||||||||
|
||||||||||||||||||||||||||||
(a) Net of tax of
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||
(b) Net of tax of
|
$
|
(1.2
|
)
|
$
|
(15.0
|
)
|
$
|
-
|
$
|
(16.2
|
)
|
$
|
-
|
$
|
-
|
$
|
(16.2
|
)
|
||||||||||
(c) Net of tax of
|
$
|
-
|
$
|
1.1
|
$
|
-
|
$
|
1.1
|
$
|
-
|
$
|
-
|
$
|
1.1
|
|
Guarantors
|
|||||||||||||||||||||||||||
|
Kinross Gold Corp.
|
Guarantor Subsidiaries
|
Guarantor Adjustments
|
Total
Guarantors |
Non-guarantors
|
Eliminations
|
Consolidated
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net earnings (loss)
|
$
|
64.7
|
$
|
106.5
|
$
|
(106.5
|
)
|
$
|
64.7
|
$
|
24.6
|
$
|
(24.7
|
)
|
$
|
64.6
|
||||||||||||
|
||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||||||||||||||
Items that will not be reclassified to profit or loss:
|
||||||||||||||||||||||||||||
Equity investments at fair value through other comprehensive income ("FVOCI") - net change in fair value (a)
|
(0.4
|
)
|
-
|
-
|
(0.4
|
)
|
(0.6
|
)
|
-
|
(1.0
|
)
|
|||||||||||||||||
Items that are or may be reclassified to profit or loss in subsequent periods:
|
||||||||||||||||||||||||||||
Cash flow hedges - effective portion of changes in fair value (b)
|
9.9
|
8.2
|
-
|
18.1
|
-
|
-
|
18.1
|
|||||||||||||||||||||
Cash flow hedges - reclassified to profit or loss (c)
|
0.1
|
1.2
|
-
|
1.3
|
-
|
-
|
1.3
|
|||||||||||||||||||||
|
9.6
|
9.4
|
-
|
19.0
|
(0.6
|
)
|
-
|
18.4
|
||||||||||||||||||||
Equity in other comprehensive income (loss) of intercompany investments
|
8.8
|
-
|
(9.4
|
)
|
(0.6
|
)
|
-
|
0.6
|
-
|
|||||||||||||||||||
Total comprehensive income (loss)
|
$
|
83.1
|
$
|
115.9
|
$
|
(115.9
|
)
|
$
|
83.1
|
$
|
24.0
|
$
|
(24.1
|
)
|
$
|
83.0
|
||||||||||||
|
||||||||||||||||||||||||||||
Attributable to non-controlling interest
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(0.1
|
)
|
$
|
-
|
$
|
(0.1
|
)
|
||||||||||||
Attributable to common shareholders
|
$
|
83.1
|
$
|
115.9
|
$
|
(115.9
|
)
|
$
|
83.1
|
$
|
24.1
|
$
|
(24.1
|
)
|
$
|
83.1
|
||||||||||||
|
||||||||||||||||||||||||||||
(a) Net of tax of
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||
(b) Net of tax of
|
$
|
-
|
$
|
2.6
|
$
|
-
|
$
|
2.6
|
$
|
-
|
$
|
-
|
$
|
2.6
|
||||||||||||||
(c) Net of tax of
|
$
|
-
|
$
|
0.7
|
$
|
-
|
$
|
0.7
|
$
|
-
|
$
|
-
|
$
|
0.7
|
|
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)
|
$
|
122.7
|
$
|
152.6
|
$
|
(152.6
|
)
|
$
|
122.7
|
$
|
73.3
|
$
|
(72.7
|
)
|
$
|
123.3
|
||||||||||||
Adjustments to reconcile net earnings (loss) to net cash provided from (used in) operating activities:
|
||||||||||||||||||||||||||||
Depreciation, depletion and amortization
|
1.2
|
100.8
|
(0.8
|
)
|
101.2
|
91.9
|
-
|
193.1
|
||||||||||||||||||||
Equity in (earnings) losses of joint ventures and intercompany investments
|
(133.8
|
)
|
(86.7
|
)
|
152.6
|
(67.9
|
)
|
-
|
67.9
|
-
|
||||||||||||||||||
Share-based compensation expense
|
4.5
|
-
|
-
|
4.5
|
-
|
-
|
4.5
|
|||||||||||||||||||||
Finance expense
|
18.8
|
30.9
|
(0.2
|
)
|
49.5
|
46.3
|
(70.1
|
)
|
25.7
|
|||||||||||||||||||
Deferred tax expense (recovery)
|
1.2
|
11.7
|
-
|
12.9
|
55.5
|
-
|
68.4
|
|||||||||||||||||||||
Foreign exchange (gains) losses and other
|
(1.3
|
)
|
(8.1
|
)
|
-
|
(9.4
|
)
|
13.0
|
-
|
3.6
|
||||||||||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||||||||||||||
Accounts receivable and other assets
|
2.6
|
6.3
|
-
|
8.9
|
(87.5
|
)
|
-
|
(78.6
|
)
|
|||||||||||||||||||
Inventories
|
(6.2
|
)
|
(15.1
|
)
|
0.8
|
(20.5
|
)
|
28.2
|
-
|
7.7
|
||||||||||||||||||
Accounts payable and accrued liabilities
|
(29.1
|
)
|
(13.1
|
)
|
-
|
(42.2
|
)
|
58.0
|
-
|
15.8
|
||||||||||||||||||
Cash flow provided from (used in) operating activities
|
(19.4
|
)
|
179.3
|
(0.2
|
)
|
159.7
|
278.7
|
(74.9
|
)
|
363.5
|
||||||||||||||||||
Income taxes paid
|
-
|
(44.8
|
)
|
-
|
(44.8
|
)
|
(19.1
|
)
|
-
|
(63.9
|
)
|
|||||||||||||||||
Net cash flow provided from (used in) operating activities
|
(19.4
|
)
|
134.5
|
(0.2
|
)
|
114.9
|
259.6
|
(74.9
|
)
|
299.6
|
||||||||||||||||||
Investing:
|
||||||||||||||||||||||||||||
Additions to property, plant and equipment
|
(0.7
|
)
|
(106.8
|
)
|
-
|
(107.5
|
)
|
(83.9
|
)
|
-
|
(191.4
|
)
|
||||||||||||||||
Interest paid capitalized to property, plant and equipment
|
(0.1
|
)
|
(13.1
|
)
|
-
|
(13.2
|
)
|
(9.1
|
)
|
-
|
(22.3
|
)
|
||||||||||||||||
Acquisitions
|
1.3
|
-
|
-
|
1.3
|
(129.6
|
)
|
-
|
(128.3
|
)
|
|||||||||||||||||||
Net proceeds from the sale of (additions to) long-term investments and other assets
|
-
|
(3.5
|
)
|
-
|
(3.5
|
)
|
1.6
|
-
|
(1.9
|
)
|
||||||||||||||||||
Net proceeds from the sale of property, plant and equipment
|
-
|
(0.2
|
)
|
-
|
(0.2
|
)
|
1.7
|
-
|
1.5
|
|||||||||||||||||||
Decrease (increase) in restricted cash
|
-
|
1.0
|
-
|
1.0
|
0.8
|
-
|
1.8
|
|||||||||||||||||||||
Interest received and other - net
|
0.2
|
0.3
|
-
|
0.5
|
0.5
|
-
|
1.0
|
|||||||||||||||||||||
Net cash flow provided from (used in) investing activities
|
0.7
|
(122.3
|
)
|
-
|
(121.6
|
)
|
(218.0
|
)
|
-
|
(339.6
|
)
|
|||||||||||||||||
Financing:
|
||||||||||||||||||||||||||||
Proceeds from drawdown of debt
|
750.0
|
-
|
-
|
750.0
|
-
|
-
|
750.0
|
|||||||||||||||||||||
Repayment of debt
|
(100.0
|
)
|
-
|
-
|
(100.0
|
)
|
-
|
-
|
(100.0
|
)
|
||||||||||||||||||
Interest paid
|
(25.6
|
)
|
-
|
-
|
(25.6
|
)
|
-
|
-
|
(25.6
|
)
|
||||||||||||||||||
Payment of lease liabilities
|
(0.5
|
)
|
(2.1
|
)
|
-
|
(2.6
|
)
|
(2.1
|
)
|
-
|
(4.7
|
)
|
||||||||||||||||
Dividends received from (paid to) common shareholders and subsidiaries
|
3.5
|
-
|
-
|
3.5
|
(8.3
|
)
|
4.8
|
-
|
||||||||||||||||||||
Intercompany advances
|
35.8
|
(16.2
|
)
|
0.2
|
19.8
|
(89.9
|
)
|
70.1
|
-
|
|||||||||||||||||||
Other - net
|
5.8
|
-
|
-
|
5.8
|
(12.4
|
)
|
-
|
(6.6
|
)
|
|||||||||||||||||||
Net cash flow provided from (used in) financing activities
|
669.0
|
(18.3
|
)
|
0.2
|
650.9
|
(112.7
|
)
|
74.9
|
613.1
|
|||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
-
|
-
|
-
|
-
|
(9.6
|
)
|
-
|
(9.6
|
)
|
|||||||||||||||||||
Increase (decrease) in cash and cash equivalents
|
650.3
|
(6.1
|
)
|
-
|
644.2
|
(80.7
|
)
|
-
|
563.5
|
|||||||||||||||||||
Cash and cash equivalents, beginning of period
|
124.9
|
119.5
|
-
|
244.4
|
330.7
|
-
|
575.1
|
|||||||||||||||||||||
Cash and cash equivalents, end of period
|
$
|
775.2
|
$
|
113.4
|
$
|
-
|
$
|
888.6
|
$
|
250.0
|
$
|
-
|
$
|
1,138.6
|
||||||||||||||
|
|
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)
|
$
|
64.7
|
$
|
106.5
|
$
|
(106.5
|
)
|
$
|
64.7
|
$
|
24.6
|
$
|
(24.7
|
)
|
$
|
64.6
|
||||||||||||
Adjustments to reconcile net earnings (loss) to net cash provided from (used in) operating activities:
|
||||||||||||||||||||||||||||
Depreciation, depletion and amortization
|
0.9
|
78.1
|
(0.2
|
)
|
78.8
|
85.3
|
-
|
164.1
|
||||||||||||||||||||
Equity in (earnings) losses of joint ventures and intercompany investments
|
(91.4
|
)
|
(39.8
|
)
|
106.5
|
(24.7
|
)
|
-
|
24.7
|
-
|
||||||||||||||||||
Share-based compensation expense
|
4.6
|
-
|
-
|
4.6
|
-
|
-
|
4.6
|
|||||||||||||||||||||
Finance expense
|
18.0
|
19.8
|
(3.3
|
)
|
34.5
|
44.9
|
(51.9
|
)
|
27.5
|
|||||||||||||||||||
Deferred tax expense (recovery)
|
-
|
(25.7
|
)
|
-
|
(25.7
|
)
|
(11.5
|
)
|
-
|
(37.2
|
)
|
|||||||||||||||||
Foreign exchange (gains) losses and other
|
3.0
|
(0.6
|
)
|
-
|
2.4
|
4.8
|
-
|
7.2
|
||||||||||||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||||||||||||||
Accounts receivable and other assets
|
(3.1
|
)
|
9.8
|
-
|
6.7
|
7.9
|
-
|
14.6
|
||||||||||||||||||||
Inventories
|
(0.6
|
)
|
(7.7
|
)
|
0.2
|
(8.1
|
)
|
45.5
|
-
|
37.4
|
||||||||||||||||||
Accounts payable and accrued liabilities
|
(1.9
|
)
|
(2.5
|
)
|
-
|
(4.4
|
)
|
(9.8
|
)
|
-
|
(14.2
|
)
|
||||||||||||||||
Cash flow provided from (used in) operating activities
|
(5.8
|
)
|
137.9
|
(3.3
|
)
|
128.8
|
191.7
|
(51.9
|
)
|
268.6
|
||||||||||||||||||
Income taxes paid
|
-
|
(5.7
|
)
|
-
|
(5.7
|
)
|
(11.3
|
)
|
-
|
(17.0
|
)
|
|||||||||||||||||
Net cash flow provided from (used in) operating activities
|
(5.8
|
)
|
132.2
|
(3.3
|
)
|
123.1
|
180.4
|
(51.9
|
)
|
251.6
|
||||||||||||||||||
Investing:
|
||||||||||||||||||||||||||||
Additions to property, plant and equipment
|
(2.4
|
)
|
(158.3
|
)
|
-
|
(160.7
|
)
|
(83.2
|
)
|
-
|
(243.9
|
)
|
||||||||||||||||
Interest paid capitalized to property, plant and equipment
|
(0.2
|
)
|
(15.8
|
)
|
-
|
(16.0
|
)
|
(4.9
|
)
|
-
|
(20.9
|
)
|
||||||||||||||||
Acquisitions
|
-
|
-
|
-
|
-
|
(30.0
|
)
|
-
|
(30.0
|
)
|
|||||||||||||||||||
Net proceeds from the sale of (additions to) long-term investments and other assets
|
0.6
|
(2.2
|
)
|
-
|
(1.6
|
)
|
(4.8
|
)
|
-
|
(6.4
|
)
|
|||||||||||||||||
Net proceeds from the sale of property, plant and equipment
|
-
|
0.1
|
-
|
0.1
|
0.8
|
-
|
0.9
|
|||||||||||||||||||||
Decrease (increase) in restricted cash
|
-
|
(0.6
|
)
|
-
|
(0.6
|
)
|
-
|
-
|
(0.6
|
)
|
||||||||||||||||||
Interest received and other - net
|
0.1
|
0.4
|
-
|
0.5
|
0.4
|
-
|
0.9
|
|||||||||||||||||||||
Net cash flow provided from (used in) from investing activities
|
(1.9
|
)
|
(176.4
|
)
|
-
|
(178.3
|
)
|
(121.7
|
)
|
-
|
(300.0
|
)
|
||||||||||||||||
Financing:
|
||||||||||||||||||||||||||||
Proceeds from drawdown of debt
|
160.0
|
-
|
-
|
160.0
|
-
|
-
|
160.0
|
|||||||||||||||||||||
Repayment of debt
|
(25.0
|
)
|
-
|
-
|
(25.0
|
)
|
-
|
-
|
(25.0
|
)
|
||||||||||||||||||
Interest paid
|
(27.3
|
)
|
-
|
-
|
(27.3
|
)
|
-
|
-
|
(27.3
|
)
|
||||||||||||||||||
Payment of lease liabilities
|
(0.5
|
)
|
(2.0
|
)
|
-
|
(2.5
|
)
|
(0.8
|
)
|
-
|
(3.3
|
)
|
||||||||||||||||
Dividends received from (paid to) common shareholders and subsidiaries
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
Intercompany advances
|
(122.2
|
)
|
57.7
|
3.3
|
(61.2
|
)
|
9.3
|
51.9
|
-
|
|||||||||||||||||||
Other - net
|
0.4
|
-
|
-
|
0.4
|
(0.2
|
)
|
-
|
0.2
|
||||||||||||||||||||
Net cash flow provided from (used in) financing activities
|
(14.6
|
)
|
55.7
|
3.3
|
44.4
|
8.3
|
51.9
|
104.6
|
||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
-
|
-
|
-
|
-
|
1.7
|
-
|
1.7
|
|||||||||||||||||||||
Increase (decrease) in cash and cash equivalents
|
(22.3
|
)
|
11.5
|
-
|
(10.8
|
)
|
68.7
|
-
|
57.9
|
|||||||||||||||||||
Cash and cash equivalents, beginning of period
|
29.7
|
103.8
|
-
|
133.5
|
215.5
|
-
|
349.0
|
|||||||||||||||||||||
Cash and cash equivalents, end of period
|
$
|
7.4
|
$
|
115.3
|
$
|
-
|
$
|
122.7
|
$
|
284.2
|
$
|
-
|
$
|
406.9
|
||||||||||||||
|
1. |
Review: I have reviewed the interim
financial statements and interim MD&A (together, the "interim filings") of Kinross Gold Corporation (the "issuer") for the interim period ended March 31, 2020.
|
2. |
No misrepresentations: Based on my
knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in
light of the circumstances under which it was made, for the period covered by the interim filings.
|
3. |
Fair presentation: Based on my knowledge,
having exercised reasonable diligence, the interim financial statements together with the other financial information included in the interim filings fairly present in all material respects the financial condition, results of operations
and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
|
4. |
Responsibility: The issuer's other
certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings, for the issuer.
|
5. |
Design: Subject to the limitations, if
any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the end of the period covered by the interim filings
|
|
a. |
designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
|
|
i. |
material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
|
|
ii. |
information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is
recorded, processed, summarized and reported within the time periods specified in securities legislation; and
|
|
b. |
designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with the issuer's GAAP.
|
5.1. |
Control framework: The control framework
the issuer's other certifying officer(s) and I used to design the issuer's ICFR is Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
|
5.2. |
ICFR -- material weakness relating to design:
N/A
|
5.3. |
Limitation on scope of design: N/A
|
6. |
Reporting changes in ICFR: The issuer has
disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on January 1, 2020 and ended on March 31, 2020 that has materially affected, or is reasonably likely to materially affect, the
issuer's ICFR.
|
1. |
Review: I have reviewed the interim
financial statements and interim MD&A (together, the "interim filings") of Kinross Gold Corporation (the "issuer") for the interim period ended March 31, 2020.
|
2. |
No misrepresentations: Based on my
knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in
light of the circumstances under which it was made, for the period covered by the interim filings.
|
3. |
Fair presentation: Based on my knowledge,
having exercised reasonable diligence, the interim financial statements together with the other financial information included in the interim filings fairly present in all material respects the financial condition, results of operations
and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
|
4. |
Responsibility: The issuer's other
certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings, for the issuer.
|
5. |
Design: Subject to the limitations, if
any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the end of the period covered by the interim filings
|
|
a. |
designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
|
|
i. |
material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
|
|
ii. |
information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is
recorded, processed, summarized and reported within the time periods specified in securities legislation; and
|
|
b. |
designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with the issuer's GAAP.
|
5.1. |
Control framework: The control framework
the issuer's other certifying officer(s) and I used to design the issuer's ICFR is Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
|
5.2. |
ICFR -- material weakness relating to design:
N/A
|
5.3. |
Limitation on scope of design: N/A
|
6. |
Reporting changes in ICFR: The issuer has
disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on January 1, 2020 and ended on March 31, 2020 that has materially affected, or is reasonably likely to materially affect, the
issuer's ICFR.
|