|
|
|
SIGNATURES
|
||
EXHIBIT INDEX
|
||
99.1
|
|
First Quarter Unaudited Interim Condensed Consolidated Financial Statements and Management’s Discussion and Analysis for the
period ended March 31, 2022
|
99.2
|
|
CEO Certification of interim filings for the period ended March 31, 2022
|
99.3
|
|
CFO Certification of interim filings for the period ended March 31, 2022
|
|
|
|
|
|
|
|
KINROSS GOLD CORPORATION
|
||
Signed:
|
/s/ Kar Ng |
|
||
|
|
|
Vice-President, Finance
|
|
|
May 10, 2022
|
|
1.
|
DESCRIPTION OF THE BUSINESS
|
Three months ended March 31,
|
||||||||||||||||
(in millions, except ounces, per share amounts and per ounce amounts)
|
2022
|
2021
|
Change
|
% Change
|
||||||||||||
Operating Highlights
|
||||||||||||||||
Total gold equivalent ounces(a),(g)
|
||||||||||||||||
Produced(c)
|
509,241
|
563,166
|
(53,925
|
)
|
(10%
|
)
|
||||||||||
Sold(c)
|
495,475
|
552,198
|
(56,723
|
)
|
(10%
|
)
|
||||||||||
Total gold equivalent ounces from continuing operations(a),(h)
|
||||||||||||||||
Produced(c)
|
413,350
|
440,914
|
(27,564
|
)
|
(6%
|
)
|
||||||||||
Sold(c)
|
409,538
|
430,045
|
(20,507
|
)
|
(5%
|
)
|
||||||||||
Attributable gold equivalent ounces(a),(g)
|
||||||||||||||||
Produced(c)
|
505,748
|
558,777
|
(53,029
|
)
|
(9%
|
)
|
||||||||||
Sold(c)
|
491,894
|
548,084
|
(56,190
|
)
|
(10%
|
)
|
||||||||||
Attributable gold equivalent ounces from continuing operations(a),(h)
|
||||||||||||||||
Produced(c)
|
409,857
|
436,525
|
(26,668
|
)
|
(6%
|
)
|
||||||||||
Sold(c)
|
405,957
|
425,931
|
(19,974
|
)
|
(5%
|
)
|
||||||||||
Financial Highlights from Continuing Operations(h)
|
||||||||||||||||
Metal sales
|
$
|
768.0
|
$
|
768.7
|
$
|
(0.7
|
)
|
(0%
|
)
|
|||||||
Production cost of sales
|
$
|
410.6
|
$
|
345.2
|
$
|
65.4
|
19%
|
|
||||||||
Depreciation, depletion and amortization
|
$
|
180.8
|
$
|
188.8
|
$
|
(8.0
|
)
|
(4%
|
)
|
|||||||
Operating earnings
|
$
|
102.5
|
$
|
144.3
|
$
|
(41.8
|
)
|
(29%
|
)
|
|||||||
Net earnings from continuing operations attributable to common shareholders
|
$
|
82.3
|
$
|
76.2
|
$
|
6.1
|
8%
|
|
||||||||
Basic earnings per share from continuing operations attributable to common shareholders
|
$
|
0.07
|
$
|
0.06
|
$
|
0.01
|
17%
|
|
||||||||
Diluted earnings per share from continuing operations attributable to common shareholders
|
$
|
0.06
|
$
|
0.06
|
$
|
-
|
0%
|
|
||||||||
Adjusted net earnings from continuing operations attributable to common shareholders(b)
|
$
|
70.6
|
$
|
102.4
|
$
|
(31.8
|
)
|
(31%
|
)
|
|||||||
Adjusted net earnings from continuing operations per share(b)
|
$
|
0.06
|
$
|
0.08
|
$
|
(0.02
|
)
|
(25%
|
)
|
|||||||
Net cash flow of continuing operations provided from operating activities
|
$
|
105.2
|
$
|
145.1
|
$
|
(39.9
|
)
|
(27%
|
)
|
|||||||
Adjusted operating cash flow from continuing operations(b)
|
$
|
261.0
|
$
|
298.9
|
$
|
(37.9
|
)
|
(13%
|
)
|
|||||||
Capital expenditures from continuing operations (d)
|
$
|
106.3
|
$
|
191.6
|
$
|
(85.3
|
)
|
(45%
|
)
|
|||||||
Free cash flow from continuing operations(b)
|
$
|
(1.1
|
)
|
$
|
(46.5
|
)
|
$
|
45.4
|
98%
|
|
||||||
Average realized gold price per ounce from continuing operations(e)
|
$
|
1,875
|
$
|
1,787
|
$
|
88
|
5%
|
|
||||||||
Consolidated production cost of sales from continuing operations per equivalent ounce(c) sold(f)
|
$
|
1,003
|
$
|
803
|
$
|
200
|
25%
|
|
||||||||
Attributable(a) production cost of sales from continuing operations per equivalent ounce(c) sold(b)
|
$
|
1,000
|
$
|
798
|
$
|
202
|
25%
|
|
||||||||
Attributable(a) production cost of sales from continuing operations per ounce sold on a by-product basis(b)
|
$
|
994
|
$
|
789
|
$
|
205
|
26%
|
|
||||||||
Attributable(a) all-in sustaining cost from continuing operations per ounce sold on a by-product basis(b)
|
$
|
1,241
|
$
|
1,044
|
$
|
197
|
19%
|
|
||||||||
Attributable(a) all-in sustaining cost from continuing operations per equivalent ounce(c) sold(b)
|
$
|
1,245
|
$
|
1,051
|
$
|
194
|
18%
|
|
||||||||
Attributable(a) all-in cost from continuing operations per ounce sold on a by-product basis(b)
|
$
|
1,471
|
$
|
1,432
|
$
|
39
|
3%
|
|
||||||||
Attributable(a) all-in cost from continuing operations per equivalent ounce(c) sold(b)
|
$
|
1,473
|
$
|
1,435
|
$
|
38
|
3%
|
(a)
|
"Total" includes 100% of Chirano production. "Attributable" includes Kinross' share of Chirano (90%) production and costs,
and Manh Choh (70%) costs.
|
(b)
|
The definition and reconciliation of these non-GAAP financial measures and ratios is included in Section 11. Non-GAAP financial measures and ratios
have no standardized meaning under IFRS and therefore, may not be comparable to similar measures presented by other issuers.
|
(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 2022 was 78.19:1 (first quarter of 2021 - 68.33:1).
|
(d)
|
“Capital expenditures from continuing operations” is as reported as “Additions to property, plant and equipment” on the interim condensed
consolidated statements of cash flows.
|
(e)
|
“Average realized gold price per ounce from continuing operations” is defined as gold metal sales from continuing operations divided by total
gold ounces sold from continuing operations.
|
(f)
|
“Consolidated production cost of sales from continuing operations per equivalent ounce sold” is defined as production cost of sales divided by
total gold equivalent ounces sold from continuing operations.
|
(g)
|
Total gold equivalent ounces produced and sold and attributable gold equivalent ounces produced and sold include results from the Kupol and
Dvoinoye mines up to March 31, 2022.
|
(h)
|
In the first quarter of 2022, the Company announced its plan to divest its Russian operations, which includes the Kupol and Dvoinoye mines
and the Udinsk project. Results for the three months ended March 31, 2022 and 2021 are from continuing operations and exclude results from the Company’s Russian operations due to the classification of these operations as
discontinued as of March 31, 2022.
|
2.
|
IMPACT OF KEY ECONOMIC TRENDS
|
3.
|
OUTLOOK
|
|
Updated
|
2021
|
||||||
|
2022 Guidance
|
Full-Year
|
||||||
|
(+/-5%)
|
|
Results(a)
|
|||||
Production cost of sales per equivalent ounce sold
|
$
|
830
|
$
|
832
|
||||
All-in sustaining cost per equivalent ounce sold
|
$
|
1,150
|
$
|
1,138
|
(a)
|
Results as previously reported for the year ended December 31, 2021 include Ghanaian and Russian operations. Production cost of sales per equivalent ounce sold for the
year ended December 31, 2021 is “Consolidated production cost of sales per equivalent ounce sold” and is defined as production cost of sales, as reported on the consolidated statements of operations for the year ended December 31, 2021,
divided by total gold equivalent ounces sold. Attributable all-in sustaining cost per equivalent ounce sold of $1,138 for the year ended December 31, 2021 includes Kinross' share of Chirano (90%) production and costs. The definition and
reconciliation of this non-GAAP ratio is included in Section 11 of this MD&A.
|
•
|
a gold price of $1,800 per ounce;
|
•
|
an oil price of $100 per barrel;
|
o
|
including a $10 per barrel change in the price of oil would be expected to result in an approximate $4 impact on fuel consumption costs on production cost of sales per ounce.
|
4.
|
PROJECT UPDATES AND NEW DEVELOPMENTS
|
5.
|
CONSOLIDATED RESULTS OF OPERATIONS
|
Three months ended March 31,
|
||||||||||||||||
(in millions, except ounces and per ounce amounts)
|
2022
|
2021
|
Change
|
% Change
|
||||||||||||
Operating Statistics
|
||||||||||||||||
Total gold equivalent ounces(a),(d)
|
||||||||||||||||
Produced(b)
|
509,241
|
563,166
|
(53,925
|
)
|
(10%
|
)
|
||||||||||
Sold(b)
|
495,475
|
552,198
|
(56,723
|
)
|
(10%
|
)
|
||||||||||
Total gold equivalent ounces from continuing operations (a),(e)
|
||||||||||||||||
Produced(b)
|
413,350
|
440,914
|
(27,564
|
)
|
(6%
|
)
|
||||||||||
Sold(b)
|
409,538
|
430,045
|
(20,507
|
)
|
(5%
|
)
|
||||||||||
Attributable gold equivalent ounces(a),(d)
|
||||||||||||||||
Produced(b)
|
505,748
|
558,777
|
(53,029
|
)
|
(9%
|
)
|
||||||||||
Sold(b)
|
491,894
|
548,084
|
(56,190
|
)
|
(10%
|
)
|
||||||||||
Attributable gold equivalent ounces from continuing operations(a),(e)
|
||||||||||||||||
Produced(b)
|
409,857
|
436,525
|
(26,668
|
)
|
(6%
|
)
|
||||||||||
Sold(b)
|
405,957
|
425,931
|
(19,974
|
)
|
(5%
|
)
|
||||||||||
Gold ounces - sold from continuing operations(e)
|
407,104
|
426,327
|
(19,223
|
)
|
(5%
|
)
|
||||||||||
Silver ounces - sold from continuing operations (000's)(e)
|
191
|
254
|
(63
|
)
|
(25%
|
)
|
||||||||||
Average realized gold price per ounce from continuing operations(c),(e)
|
$
|
1,875
|
$
|
1,787
|
$
|
88
|
5%
|
|
||||||||
Financial data from Continuing Operations(e)
|
||||||||||||||||
Metal sales
|
$
|
768.0
|
$
|
768.7
|
$
|
(0.7
|
)
|
(0%
|
)
|
|||||||
Production cost of sales
|
$
|
410.6
|
$
|
345.2
|
$
|
65.4
|
19%
|
|
||||||||
Depreciation, depletion and amortization
|
$
|
180.8
|
$
|
188.8
|
$
|
(8.0
|
)
|
(4%
|
)
|
|||||||
Operating earnings
|
$
|
102.5
|
$
|
144.3
|
$
|
(41.8
|
)
|
(29%
|
)
|
|||||||
Net earnings from continuing operations attributable to common shareholders
|
$
|
82.3
|
$
|
76.2
|
$
|
6.1
|
8%
|
|
(a)
|
"Total" includes 100% of Chirano production. "Attributable" includes Kinross' share of Chirano (90%) production and costs,
and Manh Choh (70%) costs.
|
(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 2022 was 78.19:1 (first quarter of 2021 - 68.33:1).
|
(c)
|
"Average realized gold price per ounce from continuing operations" is defined as gold metal sales from continuing operations
divided by total gold ounces sold from continuing operations.
|
(d)
|
Total gold equivalent ounces produced and sold and attributable gold equivalent ounces produced and sold include results
from the Kupol and Dvoinoye mines up to March 31, 2022.
|
(e)
|
In the first quarter of 2022, the Company announced its plan to divest its Russian operations, which includes the Kupol and
Dvoinoye mines and the Udinsk project. Results for the three months ended March 31, 2022 and 2021 are from continuing operations and exclude results from the Company’s Russian operations due to the classification of these operations as
discontinued as of March 31, 2022.
|
Three months ended March 31,
|
||||||||||||||||
(in millions)
|
2022
|
2021
|
Change
|
% Change(d)
|
||||||||||||
Operating segments(a)
|
||||||||||||||||
Fort Knox
|
$
|
8.5
|
$
|
17.9
|
$
|
(9.4
|
)
|
(53%
|
)
|
|||||||
Round Mountain
|
22.5
|
47.3
|
(24.8
|
)
|
(52%
|
)
|
||||||||||
Bald Mountain
|
(0.7
|
)
|
7.1
|
(7.8
|
)
|
(110%
|
)
|
|||||||||
Paracatu
|
42.1
|
103.8
|
(61.7
|
)
|
(59%
|
)
|
||||||||||
Tasiast
|
79.4
|
37.0
|
42.4
|
115%
|
|
|||||||||||
Chirano
|
(0.2
|
)
|
(1.6
|
)
|
1.4
|
88%
|
|
|||||||||
Non-operating segments
|
||||||||||||||||
Great Bear(b)
|
(4.0
|
)
|
-
|
(4.0
|
)
|
nm
|
||||||||||
Corporate and other(c)
|
(45.1
|
)
|
(67.2
|
)
|
22.1
|
33%
|
|
|||||||||
Total
|
$
|
102.5
|
$
|
144.3
|
$
|
(41.8
|
)
|
(29%
|
)
|
(a)
|
In the first quarter of 2022, the Company announced its plan to divest its Russian operations, which includes the Kupol and
Dvoinoye mines and the Udinsk project. Results for the three months ended March 31, 2022 and 2021 are from continuing operations and exclude results from the Company’s Russian operations, which also includes the Udinsk project previously
included in the Corporate and other segment, due to the classification of these operations as discontinued as of March 31, 2022.
|
(b)
|
On February 24, 2022, the Company acquired Great Bear.
|
(c)
|
"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 Kettle River-Buckhorn, La Coipa, Lobo-Marte, Manh Choh and Maricunga).
|
(d)
|
"nm" means not meaningful.
|
Three months ended March 31,
|
||||||||||||||||
2022
|
2021
|
Change
|
% Change(c)
|
|||||||||||||
Operating Statistics
|
||||||||||||||||
Tonnes ore mined (000's)
|
13,743
|
8,174
|
5,569
|
68%
|
|
|||||||||||
Tonnes processed (000's)(a)
|
14,862
|
9,147
|
5,715
|
62%
|
|
|||||||||||
Grade (grams/tonne)(b)
|
0.66
|
0.57
|
0.09
|
16%
|
|
|||||||||||
Recovery(b)
|
79.8%
|
|
80.3%
|
|
(0.5%
|
)
|
(1%
|
)
|
||||||||
Gold equivalent ounces:
|
||||||||||||||||
Produced
|
54,803
|
55,815
|
(1,012
|
)
|
(2%
|
)
|
||||||||||
Sold
|
52,813
|
55,561
|
(2,748
|
)
|
(5%
|
)
|
||||||||||
Financial Data (in millions)
|
||||||||||||||||
Metal sales
|
$
|
98.1
|
$
|
98.5
|
$
|
(0.4
|
)
|
(0%
|
)
|
|||||||
Production cost of sales
|
67.4
|
57.7
|
9.7
|
17%
|
|
|||||||||||
Depreciation, depletion and amortization
|
20.9
|
22.5
|
(1.6
|
)
|
(7%
|
)
|
||||||||||
9.8
|
18.3
|
(8.5
|
)
|
(46%
|
)
|
|||||||||||
Other operating expense
|
0.2
|
0.3
|
(0.1
|
)
|
(33%
|
)
|
||||||||||
Exploration and business development
|
1.1
|
0.1
|
1.0
|
nm
|
||||||||||||
Segment operating earnings
|
$
|
8.5
|
$
|
17.9
|
$
|
(9.4
|
)
|
(53%
|
)
|
(a)
|
Includes 13,010,000 tonnes placed on the heap leach pad during the first quarter of 2022 (first quarter of 2021 - 7,396,000 tonnes).
|
(b)
|
Amount represents mill grade and recovery only. Ore placed on the heap leach pads had an average grade of 0.17 grams
per tonne during the first quarter of 2022 (first quarter of 2021 - 0.20 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,
|
||||||||||||||||
|
2022
|
2021
|
Change
|
% Change
|
||||||||||||
Operating Statistics
|
||||||||||||||||
Tonnes ore mined (000's)
|
3,767
|
3,843
|
(76
|
)
|
(2%
|
)
|
||||||||||
Tonnes processed (000's)(a)
|
4,137
|
4,995
|
(858
|
)
|
(17%
|
)
|
||||||||||
Grade (grams/tonne)(b)
|
0.80
|
0.70
|
0.10
|
14%
|
|
|||||||||||
Recovery(b)
|
78.6%
|
|
80.9%
|
|
(2.3%
|
)
|
(3%
|
)
|
||||||||
Gold equivalent ounces:
|
||||||||||||||||
Produced
|
45,319
|
74,286
|
(28,967
|
)
|
(39%
|
)
|
||||||||||
Sold
|
46,959
|
73,878
|
(26,919
|
)
|
(36%
|
)
|
||||||||||
Financial Data (in millions)
|
||||||||||||||||
Metal sales
|
$
|
87.6
|
$
|
131.6
|
$
|
(44.0
|
)
|
(33%
|
)
|
|||||||
Production cost of sales
|
52.3
|
63.1
|
(10.8
|
)
|
(17%
|
)
|
||||||||||
Depreciation, depletion and amortization
|
12.1
|
17.0
|
(4.9
|
)
|
(29%
|
)
|
||||||||||
|
23.2
|
51.5
|
(28.3
|
)
|
(55%
|
)
|
||||||||||
Other operating expense
|
0.4
|
3.8
|
(3.4
|
)
|
(89%
|
)
|
||||||||||
Exploration and business development
|
0.3
|
0.4
|
(0.1
|
)
|
(25%
|
)
|
||||||||||
Segment operating earnings
|
$
|
22.5
|
$
|
47.3
|
$
|
(24.8
|
)
|
(53%
|
)
|
(a)
|
Includes 3,208,000 tonnes placed on the heap leach pads during the first quarter of 2022 (first quarter of 2021 – 4,019,000 tonnes).
|
(b)
|
Amount represents mill grade and recovery only. Ore placed on the heap leach pads had an average grade of 0.36 grams per tonne during the first quarter of 2022 (first
quarter of 2021 – 0.46 grams per tonne). Due to the nature of heap leach operations, point-in-time recovery rates are not meaningful.
|
Three months ended March 31,
|
||||||||||||||||
|
2022
|
2021
|
Change
|
% Change
|
||||||||||||
Operating Statistics(a)
|
||||||||||||||||
Tonnes ore mined (000's)
|
3,870
|
2,025
|
1,845
|
91%
|
|
|||||||||||
Tonnes processed (000's)
|
3,870
|
2,025
|
1,845
|
91%
|
|
|||||||||||
Grade (grams/tonne)
|
0.63
|
0.48
|
0.15
|
31%
|
|
|||||||||||
Gold equivalent ounces:
|
||||||||||||||||
Produced
|
36,071
|
51,408
|
(15,337
|
)
|
(30%
|
)
|
||||||||||
Sold
|
41,017
|
48,250
|
(7,233
|
)
|
(15%
|
)
|
||||||||||
Financial Data (in millions)
|
||||||||||||||||
Metal sales
|
$
|
76.5
|
$
|
85.8
|
$
|
(9.3
|
)
|
(11%
|
)
|
|||||||
Production cost of sales
|
40.3
|
37.0
|
3.3
|
9%
|
|
|||||||||||
Depreciation, depletion and amortization
|
35.1
|
40.2
|
(5.1
|
)
|
(13%
|
)
|
||||||||||
|
1.1
|
8.6
|
(7.5
|
)
|
(87%
|
)
|
||||||||||
Other operating expense
|
0.5
|
0.3
|
0.2
|
67%
|
|
|||||||||||
Exploration and business development
|
1.3
|
1.2
|
0.1
|
8%
|
|
|||||||||||
Segment operating (loss) earnings
|
$
|
(0.7
|
)
|
$
|
7.1
|
$
|
(7.8
|
)
|
(110%
|
)
|
(a)
|
Due to the nature of heap leach operations, point-in-time recovery rates are not meaningful.
|
Three months ended March 31,
|
||||||||||||||||
|
2022
|
2021
|
Change
|
% Change(a)
|
||||||||||||
Operating Statistics
|
||||||||||||||||
Tonnes ore mined (000's)
|
6,165
|
12,612
|
(6,447
|
)
|
(51%
|
)
|
||||||||||
Tonnes processed (000's)
|
13,645
|
15,372
|
(1,727
|
)
|
(11%
|
)
|
||||||||||
Grade (grams/tonne)
|
0.33
|
0.38
|
(0.05
|
)
|
(13%
|
)
|
||||||||||
Recovery
|
74.9%
|
|
75.2%
|
|
(0.3%
|
)
|
(0%
|
)
|
||||||||
Gold equivalent ounces:
|
||||||||||||||||
Produced
|
108,009
|
126,547
|
(18,538
|
)
|
(15%
|
)
|
||||||||||
Sold
|
101,886
|
126,811
|
(24,925
|
)
|
(20%
|
)
|
||||||||||
Financial Data (in millions)
|
||||||||||||||||
Metal sales
|
$
|
189.7
|
$
|
225.8
|
$
|
(36.1
|
)
|
(16%
|
)
|
|||||||
Production cost of sales
|
106.6
|
82.8
|
23.8
|
29%
|
|
|||||||||||
Depreciation, depletion and amortization
|
39.6
|
37.7
|
1.9
|
5%
|
|
|||||||||||
|
43.5
|
105.3
|
(61.8
|
)
|
(59%
|
)
|
||||||||||
Other operating expense
|
1.1
|
1.4
|
(0.3
|
)
|
(21%
|
)
|
||||||||||
Exploration and business development
|
0.3
|
0.1
|
0.2
|
nm
|
||||||||||||
Segment operating earnings
|
$
|
42.1
|
$
|
103.8
|
$
|
(61.7
|
)
|
(59%
|
)
|
(a)
|
"nm" means not meaningful.
|
Three months ended March 31,
|
||||||||||||||||
|
2022
|
2021
|
Change
|
% Change(a)
|
||||||||||||
Operating Statistics
|
||||||||||||||||
Tonnes ore mined (000's)
|
3,462
|
843
|
2,619
|
nm
|
||||||||||||
Tonnes processed (000's)
|
1,524
|
1,504
|
20
|
1%
|
|
|||||||||||
Grade (grams/tonne)(a)
|
2.54
|
1.85
|
0.69
|
37%
|
|
|||||||||||
Recovery(a)
|
94.3%
|
|
95.5%
|
|
(1.2%
|
)
|
(1%
|
)
|
||||||||
Gold equivalent ounces:
|
||||||||||||||||
Produced
|
133,695
|
88,964
|
44,731
|
50%
|
|
|||||||||||
Sold
|
130,195
|
83,670
|
46,525
|
56%
|
|
|||||||||||
Financial Data (in millions)
|
||||||||||||||||
Metal sales
|
$
|
247.4
|
$
|
151.4
|
$
|
96.0
|
63%
|
|
||||||||
Production cost of sales
|
95.8
|
51.3
|
44.5
|
87%
|
|
|||||||||||
Depreciation, depletion and amortization
|
57.1
|
48.3
|
8.8
|
18%
|
|
|||||||||||
|
94.5
|
51.8
|
42.7
|
82%
|
|
|||||||||||
Other operating expense
|
14.2
|
14.3
|
(0.1
|
)
|
(1%
|
)
|
||||||||||
Exploration and business development
|
0.9
|
0.5
|
0.4
|
80%
|
|
|||||||||||
Segment operating earnings
|
$
|
79.4
|
$
|
37.0
|
$
|
42.4
|
115%
|
|
(a)
|
"nm" means not meaningful.
|
Three months ended March 31,
|
||||||||||||||||
|
2022
|
2021
|
Change
|
% Change(b)
|
||||||||||||
Operating Statistics
|
||||||||||||||||
Tonnes ore mined (000's)
|
651
|
735
|
(84
|
)
|
(11%
|
)
|
||||||||||
Tonnes processed (000's)
|
875
|
821
|
54
|
7%
|
|
|||||||||||
Grade (grams/tonne)
|
1.32
|
1.81
|
(0.49
|
)
|
(27%
|
)
|
||||||||||
Recovery
|
86.2%
|
|
88.1%
|
|
(1.9%
|
)
|
(2%
|
)
|
||||||||
Gold equivalent ounces:
|
||||||||||||||||
Produced
|
34,929
|
43,894
|
(8,965
|
)
|
(20%
|
)
|
||||||||||
Sold
|
35,810
|
41,144
|
(5,334
|
)
|
(13%
|
)
|
||||||||||
Financial Data (in millions)
|
||||||||||||||||
Metal sales
|
$
|
67.1
|
$
|
74.3
|
$
|
(7.2
|
)
|
(10%
|
)
|
|||||||
Production cost of sales
|
47.6
|
52.8
|
(5.2
|
)
|
(10%
|
)
|
||||||||||
Depreciation, depletion and amortization
|
14.3
|
21.2
|
(6.9
|
)
|
(33%
|
)
|
||||||||||
|
5.2
|
0.3
|
4.9
|
nm
|
||||||||||||
Other operating expense
|
4.0
|
-
|
4.0
|
nm
|
||||||||||||
Exploration and business development
|
1.4
|
1.9
|
(0.5
|
)
|
(26%
|
)
|
||||||||||
Segment operating loss
|
$
|
(0.2
|
)
|
$
|
(1.6
|
)
|
$
|
1.4
|
87%
|
|
(a)
|
Operating and financial data are at 100% for all periods.
|
(b)
|
"nm" means not meaningful.
|
Three months ended March 31,
|
||||||||||||||||
|
2022
|
2021
|
Change
|
% Change(e)
|
||||||||||||
Operating Statistics(a)
|
||||||||||||||||
Tonnes ore mined (000's)(b)
|
316
|
312
|
4
|
1%
|
|
|||||||||||
Tonnes processed (000's)
|
414
|
418
|
(4
|
)
|
(1%
|
)
|
||||||||||
Grade (grams/tonne):
|
||||||||||||||||
Gold
|
6.68
|
8.71
|
(2.03
|
)
|
(23%
|
)
|
||||||||||
Silver
|
62.90
|
69.95
|
(7.05
|
)
|
(10%
|
)
|
||||||||||
Recovery:
|
||||||||||||||||
Gold
|
95.3%
|
|
94.2%
|
|
1.1%
|
|
1%
|
|
||||||||
Silver
|
84.4%
|
|
82.6%
|
|
1.8%
|
|
2%
|
|
||||||||
Gold equivalent ounces:(c)
|
||||||||||||||||
Produced
|
95,891
|
122,252
|
(26,361
|
)
|
(22%
|
)
|
||||||||||
Sold
|
85,937
|
122,153
|
(36,216
|
)
|
(30%
|
)
|
||||||||||
Silver ounces:
|
||||||||||||||||
Produced (000's)
|
728
|
765
|
(37
|
)
|
(5%
|
)
|
||||||||||
Sold (000's)
|
656
|
763
|
(107
|
)
|
(14%
|
)
|
||||||||||
Financial Data (in millions)
|
||||||||||||||||
Metal sales
|
$
|
153.5
|
$
|
217.8
|
$
|
(64.3
|
)
|
(30%
|
)
|
|||||||
Production cost of sales
|
65.4
|
74.7
|
(9.3
|
)
|
(12%
|
)
|
||||||||||
Depreciation, depletion and amortization
|
12.6
|
18.2
|
(5.6
|
)
|
(31%
|
)
|
||||||||||
Impairment charges(d)
|
671.0
|
-
|
671.0
|
nm
|
||||||||||||
|
(595.5
|
)
|
124.9
|
(720.4
|
)
|
nm
|
||||||||||
Other operating expense
|
(41.6
|
)
|
21.6
|
(63.2
|
)
|
nm
|
||||||||||
Exploration and business development
|
7.6
|
5.3
|
2.3
|
43%
|
|
|||||||||||
$
|
(561.5
|
)
|
$
|
98.0
|
$
|
(659.5
|
)
|
nm
|
||||||||
Other expenses
|
2.5
|
1.9
|
0.6
|
32%
|
|
|||||||||||
Net earnings before tax
|
$
|
(564.0
|
)
|
$
|
96.1
|
$
|
(660.1
|
)
|
nm
|
|||||||
Income tax expense
|
42.1
|
22.8
|
19.3
|
85%
|
|
|||||||||||
Net earnings from discontinued operations
|
$
|
(606.1
|
)
|
$
|
73.3
|
$
|
(679.4
|
)
|
nm
|
(a)
|
Operating statistics include the results of the Kupol and Dvoinoye mines. Mining activities were completed at Dvoinoye in the fourth quarter of 2020.
|
(b)
|
Tonnes of ore mined relates entirely to the Kupol mine during the first quarter of 2022 and 2021.
|
(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 2022 was 78.19:1 (first quarter of 2021 - 68.33:1).
|
(d)
|
At March 31, 2022, the Company recognized an impairment charge of $671.0 million related to the remeasurement of the Company’s Russian operations to fair value
less costs to sell.
|
(e)
|
"nm" means not meaningful.
|
|
Three months ended March 31,
|
|||||||||||||||
(in millions)
|
2022
|
2021
|
Change
|
% Change
|
||||||||||||
Exploration and business development
|
$
|
24.8
|
$
|
20.1
|
$
|
4.7
|
23%
|
|
|
Three months ended March 31,
|
|||||||||||||||
(in millions)
|
2022
|
2021
|
Change
|
% Change
|
||||||||||||
General and administrative
|
$
|
30.2
|
$
|
30.7
|
$
|
(0.5
|
)
|
(2%
|
)
|
|
Three months ended March 31,
|
|||||||||||||||
(in millions)
|
2022
|
2021
|
Change
|
% Change(a)
|
||||||||||||
Net losses on dispositions of assets
|
(1.4
|
)
|
(0.5
|
)
|
(0.9
|
)
|
(180%
|
)
|
||||||||
Foreign exchange (losses) gains - net
|
(2.4
|
)
|
5.8
|
(8.2
|
)
|
(141%
|
)
|
|||||||||
Net non-hedge derivative losses
|
(0.6
|
)
|
(1.5
|
)
|
0.9
|
60%
|
|
|||||||||
Other - net
|
(0.6
|
)
|
0.4
|
(1.0
|
)
|
nm
|
||||||||||
Other (expense) income - net
|
$
|
(5.0
|
)
|
$
|
4.2
|
$
|
(9.2
|
)
|
nm
|
(a)
|
"nm" means not meaningful.
|
|
Three months ended March 31,
|
|||||||||||||||
(in millions)
|
2022
|
2021
|
Change
|
% Change
|
||||||||||||
Accretion of reclamation and remediation obligations
|
$
|
4.8
|
$
|
3.2
|
$
|
1.6
|
50%
|
|
||||||||
Interest expense, including accretion of lease liabilities
|
17.2
|
15.8
|
1.4
|
9%
|
|
|||||||||||
Finance expense
|
$
|
22.0
|
$
|
19.0
|
$
|
3.0
|
16%
|
|
6.
|
LIQUIDITY AND CAPITAL RESOURCES
|
Three months ended March 31,
|
||||||||||||||||
(in millions)
|
2022
|
2021
|
Change
|
% Change(c)
|
||||||||||||
Cash Flow:
|
||||||||||||||||
Of continuing operations provided from operating activities(a)
|
$
|
105.2
|
$
|
145.1
|
$
|
(39.9
|
)
|
(27%
|
)
|
|||||||
Of discontinued operations provided from operating activities(a)
|
91.4
|
134.7
|
(43.3
|
)
|
(32%
|
)
|
||||||||||
Of continuing operations used in investing activities(a)
|
(1,159.3
|
)
|
(213.8
|
)
|
(945.5
|
)
|
nm
|
|||||||||
Of discontinued operations used in investing activities(a)
|
(11.2
|
)
|
(155.0
|
)
|
143.8
|
93%
|
|
|||||||||
Of continuing operations provided from (used in) financing activities(a)
|
1,034.5
|
(64.4
|
)
|
1,098.9
|
nm
|
|||||||||||
Of discontinued operations used in financing activities(a)
|
-
|
-
|
-
|
nm
|
||||||||||||
Effect of exchange rate changes on cash and cash equivalents of continuing operations(a)
|
-
|
(0.2
|
)
|
0.2
|
nm
|
|||||||||||
Effect of exchange rate changes on cash and cash equivalents of discontinued operations(a)
|
(3.9
|
)
|
(1.2
|
)
|
(2.7
|
)
|
nm
|
|||||||||
Increase (decrease) in cash and cash equivalents
|
56.7
|
(154.8
|
)
|
211.5
|
137%
|
|
||||||||||
Cash and cash equivalents, beginning of period
|
531.5
|
1,210.9
|
(679.4
|
)
|
(56%
|
)
|
||||||||||
Reclassified to assets held for sale(b)
|
(134.0
|
)
|
-
|
(134.0
|
)
|
nm
|
||||||||||
Cash and cash equivalents, end of period
|
$
|
454.2
|
$
|
1,056.1
|
$
|
(601.9
|
)
|
(57%
|
)
|
(a)
|
The comparative figures have been recast to present results from Russian operations as discontinued operations.
|
(b)
|
As at March 31, 2022, cash and cash equivalents of the Company’s Russian operations were classified to assets held for sale.
|
(c)
|
“nm” means not meaningful.
|
|
Three months ended March 31,
|
|||||||||||||||
(in millions)
|
2022
|
2021
|
Change
|
% Change(d)
|
||||||||||||
Operating segments
|
||||||||||||||||
Fort Knox
|
$
|
2.9
|
$
|
25.4
|
$
|
(22.5
|
)
|
(89%
|
)
|
|||||||
Round Mountain
|
16.0
|
31.3
|
(15.3
|
)
|
(49%
|
)
|
||||||||||
Bald Mountain
|
5.8
|
8.9
|
(3.1
|
)
|
(35%
|
)
|
||||||||||
Paracatu
|
16.0
|
20.8
|
(4.8
|
)
|
(23%
|
)
|
||||||||||
Tasiast
|
19.4
|
68.6
|
(49.2
|
)
|
(72%
|
)
|
||||||||||
Chirano
|
5.5
|
10.1
|
(4.6
|
)
|
(46%
|
)
|
||||||||||
Non-operating segments
|
||||||||||||||||
Great Bear
|
-
|
-
|
-
|
nm
|
||||||||||||
Corporate and other(c)
|
40.7
|
26.5
|
14.2
|
54%
|
|
|||||||||||
Total
|
$
|
106.3
|
$
|
191.6
|
$
|
(85.3
|
)
|
(45%
|
)
|
(a)
|
“Capital expenditures” is as reported as “Additions to property, plant and equipment” on the interim condensed consolidated statements of cash flows.
|
(b)
|
In the first quarter of 2022, the Company announced its plan to divest its Russian operations, which includes the Kupol and Dvoinoye mines and the Udinsk project. Results for the
three months ended March 31, 2022 and 2021 are from continuing operations and exclude results from the Company’s Russian operations, which also includes the Udinsk project previously included in the Corporate and other segment, due to
the classification of these operations as discontinued as of March 31, 2022.
|
(c)
|
“Corporate and other” includes corporate and other non-operating assets (including Kettle River-Buckhorn, La Coipa, Lobo-Marte, Manh Choh and Maricunga).
|
(d)
|
“nm” means not meaningful.
|
|
As at,
|
|||||||
|
March 31,
|
December 31,
|
||||||
(in millions)
|
2022
|
2021
|
||||||
Cash and cash equivalents
|
$
|
454.2
|
$
|
531.5
|
||||
Current assets
|
$
|
2,189.6
|
$
|
1,948.9
|
||||
Total assets
|
$
|
11,122.0
|
$
|
10,428.1
|
||||
Current liabilities, including current portion of long-term debt
|
$
|
661.1
|
$
|
741.4
|
||||
Total debt and credit facilities, including current portion
|
$
|
2,728.8
|
$
|
1,629.9
|
||||
Total liabilities
|
$
|
4,684.2
|
$
|
3,778.5
|
||||
Common shareholders' equity
|
$
|
6,367.7
|
$
|
6,580.9
|
||||
Non-controlling interests
|
$
|
70.1
|
$
|
68.7
|
Type of credit
|
|
Revolving credit facility
|
LIBOR plus 1.45%
|
Term loan
|
SOFR plus 1.25%
|
Letters of credit
|
0.967-1.45%
|
Standby fee applicable to unused availability
|
0.290%
|
|
As at,
|
|||||||
|
March 31,
|
December 31,
|
||||||
(in millions)
|
2022
|
2021
|
||||||
Utilization of revolving credit facility
|
$
|
(306.6
|
)
|
$
|
(206.5
|
)
|
||
Utilization of EDC facility
|
(232.4
|
)
|
(232.3
|
)
|
||||
Borrowings
|
$
|
(539.0
|
)
|
$
|
(438.8
|
)
|
||
|
||||||||
Available under revolving credit facility
|
$
|
1,193.4
|
$
|
1,293.5
|
||||
Available under EDC credit facility
|
67.6
|
67.7
|
||||||
Available credit
|
$
|
1,261.0
|
$
|
1,361.2
|
Foreign currency
|
2022
|
2023
|
2024
|
|||||||||
Brazilian real zero cost collars (in millions of U.S. dollars)
|
$
|
77.6
|
$
|
68.4
|
$
|
27.6
|
||||||
Average put strike (Brazilian real)
|
4.81
|
5.13
|
5.55
|
|||||||||
Average call strike (Brazilian real)
|
6.88
|
7.34
|
9.01
|
|||||||||
Canadian dollar forward buy contracts (in millions of U.S. dollars)
|
$
|
37.8
|
$
|
15.0
|
$
|
-
|
||||||
Average rate (Canadian dollar)
|
1.31
|
1.29
|
-
|
|||||||||
Chilean peso zero cost collars (in millions of U.S. dollars)
|
$
|
63.6
|
$
|
42.0
|
$
|
-
|
||||||
Average put strike (Chilean peso)
|
760
|
810
|
-
|
|||||||||
Average call strike (Chilean peso)
|
992
|
1,040
|
-
|
|||||||||
Russian rouble zero cost collars (in millions of U.S. dollars)
|
$
|
45.0
|
$
|
43.8
|
$
|
22.2
|
||||||
Average put strike (Russian rouble)
|
74.6
|
77.1
|
83.0
|
|||||||||
Average call strike (Russian rouble)
|
96.5
|
98.8
|
105.6
|
|||||||||
Energy
|
||||||||||||
WTI oil swap contracts (barrels)
|
791,550
|
565,200
|
-
|
|||||||||
Average price
|
$
|
48.09
|
$
|
39.58
|
$
|
-
|
|
As at,
|
|||||||
|
March 31,
|
December 31,
|
||||||
(in millions)
|
2022
|
2021
|
||||||
Asset (liability)
|
||||||||
Foreign currency forward and collar contracts
|
$
|
(7.7
|
)
|
$
|
(4.5
|
)
|
||
Energy swap contracts
|
59.9
|
40.4
|
||||||
Total return swap contracts
|
0.1
|
1.7
|
||||||
|
$
|
52.3
|
$
|
37.6
|
(in millions)
|
Three months ended
March 31, 2022
|
Year ended
December 31, 2021
|
||||||
Revenue
|
$
|
453.9
|
$
|
2,285.8
|
||||
Cost of sales
|
377.7
|
1,799.3
|
||||||
Gross profit
|
76.2
|
486.5
|
||||||
Operating earnings
|
39.0
|
293.2
|
||||||
Net earnings before equity in the earnings (losses) of, and other gains from, non- guarantor subsidiaries
|
30.0
|
187.3
|
||||||
Equity in the earnings (losses) of, and other gains from, non-guarantor continuing subsidiaries
|
43.3
|
(324.2
|
)
|
|||||
Equity in the earnings (losses) of, and other gains from, non-guarantor discontinued subsidiaries
|
(597.1
|
)
|
358.1
|
|||||
Net earnings
|
(523.8
|
)
|
221.2
|
|||||
Net earnings attributable to common shareholders
|
$
|
(523.8
|
)
|
$
|
221.2
|
|
As at,
|
|||||||
(in millions)
|
March 31, 2022
|
December 31, 2021
|
||||||
Current assets
|
$
|
1,045.8
|
$
|
1,019.5
|
||||
Current assets – with non-guarantor subsidiaries
|
2,452.2
|
1,937.9
|
||||||
Non-current assets
|
5,000.7
|
3,931.3
|
||||||
Non-current assets – with non-guarantor subsidiaries
|
3,421.8
|
4,346.2
|
||||||
Current liabilities
|
301.5
|
428.1
|
||||||
Current liabilities – with non-guarantor subsidiaries
|
621.7
|
618.9
|
||||||
Non-current liabilities
|
3,360.3
|
2,294.8
|
||||||
Non-current liabilities – with non-guarantor subsidiaries
|
1,269.3
|
1,312.2
|
7.
|
SUMMARY OF QUARTERLY INFORMATION
|
2022
|
2021(a)
|
2020(a)
|
||||||||||||||||||||||||||||||
(in millions, except per share amounts)
|
Q1
|
Q4
|
Q3
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
||||||||||||||||||||||||
Metal sales
|
$
|
768.0
|
$
|
671.7
|
$
|
644.8
|
$
|
781.4
|
$
|
768.7
|
$
|
948.3
|
$
|
889.9
|
$
|
783.5
|
||||||||||||||||
Net earnings (loss) from continuing operations attributable to common
shareholders
|
$
|
82.3
|
$
|
(67.0
|
)
|
$
|
(77.0
|
)
|
$
|
27.4
|
$
|
76.2
|
$
|
730.9
|
$
|
153.4
|
$
|
125.9
|
||||||||||||||
Basic earnings (loss) per share from continuing operations attributable to
common shareholders
|
$
|
0.07
|
$
|
(0.05
|
)
|
$
|
(0.06
|
)
|
$
|
0.02
|
$
|
0.06
|
$
|
0.58
|
$
|
0.12
|
$
|
0.10
|
||||||||||||||
Diluted earnings (loss) per share from continuing operations attributable to
common shareholders
|
$
|
0.06
|
$
|
(0.05
|
)
|
$
|
(0.06
|
)
|
$
|
0.02
|
$
|
0.06
|
$
|
0.58
|
$
|
0.12
|
$
|
0.10
|
||||||||||||||
(Loss) earnings from discontinued operations after tax
|
$
|
(606.1
|
)
|
$
|
64.3
|
$
|
32.1
|
$
|
91.9
|
$
|
73.3
|
$
|
52.4
|
$
|
87.3
|
$
|
69.8
|
|||||||||||||||
Net (loss) earnings attributable to common shareholders
|
$
|
(523.8
|
)
|
$
|
(2.7
|
)
|
$
|
(44.9
|
)
|
$
|
119.3
|
$
|
149.5
|
$
|
783.3
|
$
|
240.7
|
$
|
195.7
|
|||||||||||||
Basic (loss) earnings per share attributable to common shareholders
|
$
|
(0.41
|
)
|
$
|
-
|
$
|
(0.04
|
)
|
$
|
0.09
|
$
|
0.12
|
$
|
0.62
|
$
|
0.19
|
$
|
0.16
|
||||||||||||||
Diluted (loss) earnings per share attributable to common shareholders
|
$
|
(0.41
|
)
|
$
|
-
|
$
|
(0.04
|
)
|
$
|
0.09
|
$
|
0.12
|
$
|
0.62
|
$
|
0.19
|
$
|
0.15
|
||||||||||||||
Net cash flow of continuing operations provided from operating activities
|
$
|
105.2
|
$
|
162.2
|
$
|
150.3
|
$
|
291.2
|
$
|
145.1
|
$
|
571.3
|
$
|
432.9
|
$
|
334.5
|
(a)
|
The quarterly results were updated retrospectively to reflect the impact of Russian discontinued
operations.
|
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)
|
2022
|
2021
|
||||||
Net earnings from continuing operations attributable to common shareholders - as reported
|
$
|
82.3
|
$
|
76.2
|
||||
Adjusting items:
|
||||||||
Foreign exchange losses (gains)
|
2.4
|
(5.8
|
)
|
|||||
Foreign exchange (gains) losses on translation of tax basis and foreign exchange on deferred income taxes within income tax
expense
|
(15.7
|
)
|
6.3
|
|||||
Taxes in respect of prior periods
|
5.9
|
8.7
|
||||||
Reclamation recovery
|
(11.9
|
)
|
-
|
|||||
COVID-19 costs(a)
|
-
|
5.6
|
||||||
Round Mountain pit wall stabilization costs
|
-
|
3.5
|
||||||
Other(b)
|
9.3
|
12.0
|
||||||
Tax effects of the above adjustments
|
(1.7
|
)
|
(4.1
|
)
|
||||
|
(11.7
|
)
|
26.2
|
|||||
Adjusted net earnings from continuing operations attributable to common shareholders
|
$
|
70.6
|
$
|
102.4
|
||||
Weighted average number of common shares outstanding - Basic
|
1,264.5
|
1,259.2
|
||||||
Adjusted net earnings from continuing operations per share
|
$
|
0.06
|
$
|
0.08
|
||||
Basic earnings from continuing operations per share attributable to common shareholders
|
$
|
0.07
|
$
|
0.06
|
(a)
|
Includes COVID-19 related labour, health and safety, donations and other support program costs. For the three months ended March 31, 2022, adjusted net earnings has not
been adjusted for COVID-19 related costs of $5.7 million incurred at operating sites.
|
(b)
|
Other includes various impacts, such as one-time costs at sites, and gains and losses on the sale of assets and hedges, which the Company believes are not reflective of
the Company’s underlying performance for the reporting period.
|
|
Three months ended March 31,
|
|||||||
(in millions)
|
2022
|
2021
|
||||||
Net cash flow of continuing operations provided from operating activities - as reported
|
$
|
105.2
|
$
|
145.1
|
||||
Less: Additions to property, plant and equipment
|
(106.3
|
)
|
(191.6
|
)
|
||||
Free cash flow from continuing operations
|
$
|
(1.1
|
)
|
$
|
(46.5
|
)
|
|
Three months ended March 31,
|
|||||||
(in millions)
|
2022
|
2021
|
||||||
Net cash flow of continuing operations provided from operating activities - as reported
|
$
|
105.2
|
$
|
145.1
|
||||
Adjusting items:
|
||||||||
Working capital changes:
|
||||||||
Accounts receivable and other assets
|
(43.8
|
)
|
3.0
|
|||||
Inventories
|
90.5
|
32.9
|
||||||
Accounts payable and other liabilities, including income taxes paid
|
109.1
|
117.9
|
||||||
|
155.8
|
153.8
|
||||||
Adjusted operating cash flow from continuing operations
|
$
|
261.0
|
$
|
298.9
|
|
Three months ended March 31,
|
|||||||
(in millions, except ounces and production cost of sales per equivalent ounce)
|
2022
|
2021
|
||||||
Production cost of sales from continuing operations - as reported
|
$
|
410.6
|
$
|
345.2
|
||||
Less: portion attributable to Chirano non-controlling interest(a)
|
(4.8
|
)
|
(5.3
|
)
|
||||
Attributable(b) production cost of sales from continuing operations
|
$
|
405.8
|
$
|
339.9
|
||||
Gold equivalent ounces sold from continuing operations
|
409,538
|
430,045
|
||||||
Less: portion attributable to Chirano non-controlling interest(c)
|
(3,581
|
)
|
(4,114
|
)
|
||||
Attributable(b) gold equivalent ounces sold from continuing operations
|
405,957
|
425,931
|
||||||
Attributable(b) production cost of sales from continuing operations per equivalent ounce sold
|
$
|
1,000
|
$
|
798
|
||||
Consolidated production cost of sales from continuing operations per equivalent ounce sold(d)
|
$
|
1,003
|
$
|
803
|
|
Three months ended March 31,
|
|||||||
(in millions, except ounces and production cost of sales per ounce)
|
2022
|
2021
|
||||||
Production cost of sales from continuing operations - as reported
|
$
|
410.6
|
$
|
345.2
|
||||
Less: portion attributable to Chirano non-controlling interest(a)
|
(4.8
|
)
|
(5.3
|
)
|
||||
Less: attributable(b) silver revenue(e)
|
(4.5
|
)
|
(6.6
|
)
|
||||
Attributable(b) production cost of sales from continuing operations net of silver by-product revenue
|
$
|
401.3
|
$
|
333.3
|
||||
Gold ounces sold from continuing operations
|
407,104
|
426,327
|
||||||
Less: portion attributable to Chirano non-controlling interest(c)
|
(3,577
|
)
|
(4,107
|
)
|
||||
Attributable(b) gold ounces sold from continuing operations
|
403,527
|
422,220
|
||||||
Attributable(b) production cost of sales from continuing operations per ounce sold on a by-product basis
|
$
|
994
|
$
|
789
|
||||
Consolidated production cost of sales from continuing operations per equivalent ounce sold(d)
|
$
|
1,003
|
$
|
803
|
|
Three months ended March 31,
|
|||||||
(in millions, except ounces and costs per ounce)
|
2022
|
2021
|
||||||
Production cost of sales from continuing operations - as reported
|
$
|
410.6
|
$
|
345.2
|
||||
Less: portion attributable to Chirano non-controlling interest(a)
|
(4.8
|
)
|
(5.3
|
)
|
||||
Less: attributable(b) silver revenue from continuing operations(e)
|
(4.5
|
)
|
(6.6
|
)
|
||||
Attributable(b) production cost of sales from continuing operations net of silver by-product revenue
|
$
|
401.3
|
$
|
333.3
|
||||
Adjusting items on an attributable(b) basis:
|
||||||||
General and administrative(f)
|
30.2
|
30.7
|
||||||
Other operating expense - sustaining(g)
|
5.0
|
2.3
|
||||||
Reclamation and remediation - sustaining(h)
|
8.4
|
10.4
|
||||||
Exploration and business development - sustaining(i)
|
7.9
|
8.1
|
||||||
Additions to property, plant and equipment - sustaining(j)
|
42.9
|
48.6
|
||||||
Lease payments - sustaining(k)
|
5.2
|
7.5
|
||||||
All-in Sustaining Cost on a by-product basis - attributable(b)
|
$
|
500.9
|
$
|
440.9
|
||||
Other operating expense - non-sustaining(g)
|
12.4
|
9.6
|
||||||
Reclamation and remediation - non-sustaining(h)
|
1.2
|
0.9
|
||||||
Exploration and business development - non-sustaining(i)
|
16.8
|
11.8
|
||||||
Additions to property, plant and equipment - non-sustaining(j)
|
62.0
|
141.2
|
||||||
Lease payments - non-sustaining(k)
|
0.2
|
0.1
|
||||||
All-in Cost on a by-product basis - attributable(b)
|
$
|
593.5
|
$
|
604.5
|
||||
Gold ounces sold from continuing operations
|
407,104
|
426,327
|
||||||
Less: portion attributable to Chirano non-controlling interest(c)
|
(3,577
|
)
|
(4,107
|
)
|
||||
Attributable(b) gold ounces sold from continuing operations
|
403,527
|
422,220
|
||||||
Attributable(b) all-in sustaining cost from continuing operations per ounce sold on a by-product
basis
|
$
|
1,241
|
$
|
1,044
|
||||
Attributable(b) all-in cost from continuing operations per ounce sold on a by-product basis
|
$
|
1,471
|
$
|
1,432
|
||||
Consolidated production cost of sales from continuing operations per equivalent ounce sold(d)
|
$
|
1,003
|
$
|
803
|
|
Three months ended March 31,
|
|||||||
(in millions, except ounces and costs per equivalent ounce)
|
2022
|
2021
|
||||||
Production cost of sales from continuing operations - as reported
|
$
|
410.6
|
$
|
345.2
|
||||
Less: portion attributable to Chirano non-controlling interest(a)
|
(4.8
|
)
|
(5.3
|
)
|
||||
Attributable(b) production cost of sales from continuing operations
|
$
|
405.8
|
$
|
339.9
|
||||
Adjusting items on an attributable(b) basis:
|
||||||||
General and administrative (f)
|
30.2
|
30.7
|
||||||
Other operating expense - sustaining(g)
|
5.0
|
2.3
|
||||||
Reclamation and remediation - sustaining(h)
|
8.4
|
10.4
|
||||||
Exploration and business development- sustaining(i)
|
7.9
|
8.1
|
||||||
Additions to property, plant and equipment - sustaining(j)
|
42.9
|
48.6
|
||||||
Lease payments - sustaining(k)
|
5.2
|
7.5
|
||||||
All-in Sustaining Cost - attributable(b)
|
$
|
505.4
|
$
|
447.5
|
||||
Other operating expense - non-sustaining(g)
|
12.4
|
9.6
|
||||||
Reclamation and remediation - non-sustaining(h)
|
1.2
|
0.9
|
||||||
Exploration and business development - non-sustaining(i)
|
16.8
|
11.8
|
||||||
Additions to property, plant and equipment - non-sustaining(j)
|
62.0
|
141.2
|
||||||
Lease payments - non-sustaining(k)
|
0.2
|
0.1
|
||||||
All-in Cost - attributable(b)
|
$
|
598.0
|
$
|
611.1
|
||||
Gold equivalent ounces sold from continuing operations
|
409,538
|
430,045
|
||||||
Less: portion attributable to Chirano non-controlling interest(c)
|
(3,581
|
)
|
(4,114
|
)
|
||||
Attributable(b) gold equivalent ounces sold from continuing operations
|
405,957
|
425,931
|
||||||
Attributable(b) all-in sustaining cost from continuing operations per equivalent ounce sold
|
$
|
1,245
|
$
|
1,051
|
||||
Attributable(b) all-in cost from continuing operations per equivalent ounce sold
|
$
|
1,473
|
$
|
1,435
|
||||
Consolidated production cost of sales from continuing operations per equivalent ounce sold(d)
|
$
|
1,003
|
$
|
803
|
|
Year ended
|
|||
(in millions, except ounces and costs per equivalent ounce)
|
December 31, 2021
|
|||
Production cost of sales - as reported
|
$
|
1,726.1
|
||
Less: portion attributable to Chirano non-controlling interest(a)
|
(20.2
|
)
|
||
Attributable(b) production cost of sales
|
$
|
1,705.9
|
||
Adjusting items on an attributable(b) basis:
|
||||
General and administrative (l)
|
126.6
|
|||
Other operating expense - sustaining(m)
|
10.6
|
|||
Reclamation and remediation - sustaining(n)
|
43.2
|
|||
Exploration and business development- sustaining(o)
|
40.0
|
|||
Additions to property, plant and equipment - sustaining(p)
|
386.0
|
|||
Lease payments - sustaining(q)
|
32.8
|
|||
All-in Sustaining Cost - attributable(b)
|
$
|
2,345.1
|
||
Other operating expense - non-sustaining(m)
|
38.1
|
|||
Reclamation and remediation - non-sustaining(n)
|
3.4
|
|||
Exploration and business development - non-sustaining(o)
|
91.3
|
|||
Additions to property, plant and equipment - non-sustaining(p)
|
544.6
|
|||
Lease payments - non-sustaining(q)
|
1.0
|
|||
All-in Cost - attributable(b)
|
$
|
3,023.5
|
||
Gold equivalent ounces sold
|
2,075,738
|
|||
Less: portion attributable to Chirano non-controlling interest(c)
|
(14,829
|
)
|
||
Attributable(b) gold equivalent ounces sold
|
2,060,909
|
|||
Attributable(b) all-in sustaining cost per equivalent ounce sold
|
$
|
1,138
|
||
Attributable(b) all-in cost per equivalent ounce sold
|
$
|
1,467
|
||
Consolidated production cost of sales per equivalent ounce sold(r)
|
$
|
832
|
(a)
|
The portion attributable to Chirano non-controlling interest represents the non-controlling interest (10%) in the production cost of sales for the Chirano mine.
|
(b)
|
“Attributable” includes Kinross' share of Chirano (90%) production and costs, and Manh Choh (70%) costs.
|
(c)
|
“Portion attributable to Chirano non-controlling interest” represents the non-controlling interest (10%) in the ounces sold from the Chirano mine.
|
(d)
|
“Consolidated production cost of sales from continuing operations per equivalent ounce sold” is defined as production cost of sales from continuing operations
divided by gold equivalent ounces sold from continuing operations.
|
(e)
|
“Attributable silver revenue” represents the attributable portion of metal sales realized from the production of the secondary or by-product metal (i.e.
silver). Revenue from the sale of silver, which is produced as a by-product of the process used to produce gold, effectively reduces the cost of gold production.
|
(f)
|
“General and administrative” expenses is as reported on the interim condensed consolidated statements of operations, net of certain restructuring expenses.
General and administrative expenses are considered sustaining costs as they are required to be absorbed on a continuing basis for the effective operation and governance of the Company.
|
(g)
|
“Other operating expense – sustaining” is calculated as “Other operating expense” as reported on the interim condensed consolidated statements of
operations, less other operating and reclamation and remediation expenses related to non-sustaining activities as well as other items not reflective of the underlying operating performance of our business. Other operating
expenses are classified as either sustaining or non-sustaining based on the type and location of the expenditure incurred. The majority of other operating expenses that are incurred at existing operations are considered costs
necessary to sustain operations, and are therefore classified as sustaining. Other operating expenses incurred at locations where there is no current operation or related to other non-sustaining activities are classified as
non-sustaining.
|
(h)
|
“Reclamation and remediation - sustaining” is calculated as current period accretion related to reclamation and remediation obligations plus current
period amortization of the corresponding reclamation and remediation assets, and is intended to reflect the periodic cost of reclamation and remediation for currently operating mines. Reclamation and remediation costs for
development projects or closed mines are excluded from this amount and classified as non-sustaining.
|
(i)
|
“Exploration and business development – sustaining” is calculated as “Exploration and business development” expenses as reported on the interim
condensed consolidated statements of operations, less non-sustaining exploration and business development expenses. Exploration expenses are classified as either sustaining or non-sustaining based on a determination of the
type and location of the exploration expenditure. Exploration expenditures within the footprint of operating mines are considered costs required to sustain current operations and so are included in sustaining costs.
Exploration expenditures focused on new ore bodies near existing mines (i.e. brownfield), new exploration projects (i.e. greenfield) or for other generative exploration activity not linked to existing mining operations are
classified as non-sustaining. Business development expenses are classified as either sustaining or non-sustaining based on a determination of the type of expense and requirement for general or growth related operations.
|
(j)
|
“Additions to property, plant and equipment – sustaining” represents the majority of capital expenditures at existing operations including
capitalized exploration costs, periodic capitalized stripping and underground mine development costs, ongoing replacement of mine equipment and other capital facilities and other capital expenditures and is calculated as
total additions to property, plant and equipment (as reported on the interim condensed consolidated statements of cash flows), less non-sustaining capital. Non-sustaining capital represents capital expenditures for major
projects, including major capital stripping projects at existing operations that are expected to materially benefit the operation, as well as enhancement capital for significant infrastructure improvements at existing
operations. Non-sustaining capital expenditures during the three months ended March 31, 2022, primarily related to major projects at La Coipa and Tasiast. Non-sustaining capital expenditures during the three months ended
March 31, 2021, primarily related to major projects at Tasiast, Round Mountain, Fort Knox and La Coipa.
|
(k)
|
“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.
|
(l)
|
“General and administrative” expenses is as reported on the consolidated statements of operations for the year ended December 31, 2021, 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.
|
(m)
|
“Other operating expense – sustaining” is calculated as “Other operating expense” as reported on the consolidated statements of operations for
the year ended December 31, 2021, 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.
|
(n)
|
“Reclamation and remediation - sustaining” is calculated as accretion related to reclamation and remediation obligations plus amortization
of the corresponding reclamation and remediation assets for the year ended December 31, 2021, 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.
|
(o)
|
“Exploration and business development – sustaining” is calculated as “Exploration and business development” expenses as reported on the
consolidated statements of operations for the year ended December 31, 2021, less non-sustaining exploration and business development expenses.Exploration expenses are classified as either sustaining or
non-sustaining based on a determination of the type and location of the exploration
|
|
expenditure. Exploration expenditures within the footprint of operating mines are considered costs required to sustain current operations
and so are included in sustaining costs. Exploration expenditures focused on new ore bodies near existing mines (i.e. brownfield), new exploration projects (i.e. greenfield) or for other generative exploration
activity not linked to existing mining operations are classified as non-sustaining. Business development expenses are classified as either sustaining or non-sustaining based on a determination of the type of
expense and requirement for general or growth related operations.
|
(p)
|
“Additions to property, plant and equipment – sustaining” represents the majority of capital expenditures at existing operations for the
year ended December 31, 2021, 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 non-sustaining capital. Non-sustaining
capital represents capital expenditures for major projects, including major capital stripping projects at existing operations that are expected to materially benefit the operation, as well as enhancement
capital for significant infrastructure improvements at existing operations. Non-sustaining capital expenditures during the year ended December 31, 2021, primarily related to major projects at Tasiast, La
Coipa, Udinsk, Fort Knox, and Round Mountain.
|
(q)
|
“Lease payments – sustaining” represents the majority of lease payments as reported on the consolidated statements of cash flows for
the year ended December 31, 2021, 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.
|
(r)
|
“Consolidated production cost of sales per equivalent ounce sold” is defined as production cost of sales, as reported on the
consolidated statements of operations for the year ended December 31, 2021, divided by total gold equivalent ounces sold.
|
|
|
As at
|
|||||||
|
|
March 31,
|
December 31,
|
||||||
|
|
2022
|
2021
|
||||||
|
|
||||||||
Assets
|
|
||||||||
Current assets
|
|
||||||||
Cash and cash equivalents
|
Note 6
|
$
|
454.2
|
$
|
531.5
|
||||
Restricted cash
|
Note 6
|
13.1
|
11.4
|
||||||
Accounts receivable and other assets
|
Note 6
|
123.6
|
214.5
|
||||||
Current income tax recoverable
|
6.7
|
10.2
|
|||||||
Inventories
|
Note 6
|
1,044.4
|
1,151.3
|
||||||
Unrealized fair value of derivative assets
|
Note 7
|
49.2
|
30.0
|
||||||
Assets held for sale
|
Note 5
|
498.4
|
-
|
||||||
|
|
2,189.6
|
1,948.9
|
||||||
Non-current assets
|
|
||||||||
Property, plant and equipment
|
Note 6
|
8,248.3
|
7,617.7
|
||||||
Goodwill
|
Note 5
|
-
|
158.8
|
||||||
Long-term investments
|
Note 6
|
108.2
|
98.2
|
||||||
Investment in joint venture
|
|
7.0
|
7.1
|
||||||
Other long-term assets
|
Note 6
|
568.9
|
590.9
|
||||||
Deferred tax assets
|
-
|
6.5
|
|||||||
Total assets
|
|
$
|
11,122.0
|
$
|
10,428.1
|
||||
|
|
||||||||
Liabilities
|
|
||||||||
Current liabilities
|
|
||||||||
Accounts payable and accrued liabilities
|
Note 6
|
$
|
441.8
|
$
|
492.7
|
||||
Current income tax payable
|
|
16.8
|
95.0
|
||||||
Current portion of long-term debt and credit facilities
|
Note 8
|
40.0
|
40.0
|
||||||
Current portion of provisions
|
Note 9
|
85.4
|
90.0
|
||||||
Other current liabilities
|
Note 6
|
23.7
|
23.7
|
||||||
Liabilities held for sale
|
Note 5
|
53.4
|
-
|
||||||
|
|
661.1
|
741.4
|
||||||
Non-current liabilities
|
|
||||||||
Long-term debt and credit facilities
|
Note 8
|
2,688.8
|
1,589.9
|
||||||
Provisions
|
Note 9
|
735.9
|
847.9
|
||||||
Long-term lease liabilities
|
|
33.4
|
35.1
|
||||||
Other long-term liabilities
|
|
146.1
|
127.4
|
||||||
Deferred tax liabilities
|
418.9
|
436.8
|
|||||||
Total liabilities
|
|
$
|
4,684.2
|
$
|
3,778.5
|
||||
|
|
||||||||
Equity
|
|
||||||||
Common shareholders' equity
|
|
||||||||
Common share capital
|
Note 10
|
$
|
4,710.2
|
$
|
4,427.7
|
||||
Contributed surplus
|
|
10,698.4
|
10,664.4
|
||||||
Accumulated deficit
|
|
(9,055.1
|
)
|
(8,492.4
|
)
|
||||
Accumulated other comprehensive income (loss)
|
Note 6
|
14.2
|
(18.8
|
)
|
|||||
Total common shareholders' equity
|
|
6,367.7
|
6,580.9
|
||||||
Non-controlling interests
|
|
70.1
|
68.7
|
||||||
Total equity
|
|
$
|
6,437.8
|
$
|
6,649.6
|
||||
Commitments and contingencies
|
Note 14
|
||||||||
Subsequent events
|
Note 5 and 10
|
||||||||
Total liabilities and equity
|
|
$
|
11,122.0
|
$
|
10,428.1
|
||||
|
|
||||||||
Common shares
|
|
||||||||
Authorized
|
|
Unlimited
|
Unlimited
|
||||||
Issued and outstanding
|
Note 10
|
1,297,256,784
|
1,244,332,772
|
||||||
|
|
|
|
Three months ended
|
|||||||
|
|
March 31,
|
March 31,
|
||||||
|
|
2022
|
2021
|
||||||
|
|
||||||||
Revenue
|
|
||||||||
Metal sales
|
|
$
|
768.0
|
$
|
768.7
|
||||
|
|
||||||||
Cost of sales
|
|
||||||||
Production cost of sales
|
|
410.6
|
345.2
|
||||||
Depreciation, depletion and amortization
|
|
180.8
|
188.8
|
||||||
Total cost of sales
|
|
591.4
|
534.0
|
||||||
Gross profit
|
|
176.6
|
234.7
|
||||||
Other operating expense
|
|
19.1
|
39.6
|
||||||
Exploration and business development
|
|
24.8
|
20.1
|
||||||
General and administrative
|
|
30.2
|
30.7
|
||||||
Operating earnings
|
|
102.5
|
144.3
|
||||||
Other (expense) income - net
|
Note 6
|
(5.0
|
)
|
4.2
|
|||||
Finance income
|
|
2.2
|
1.5
|
||||||
Finance expense
|
Note 6
|
(22.0
|
)
|
(19.0
|
)
|
||||
Earnings from continuing operations before tax
|
|
77.7
|
131.0
|
||||||
Income tax recovery (expense) - net
|
|
4.5
|
(55.1
|
)
|
|||||
Earnings from continuing operations after tax
|
|
82.2
|
75.9
|
||||||
(Loss) earnings from discontinued operations after tax
|
Note 5
|
(606.1
|
)
|
73.3
|
|||||
Net (loss) earnings
|
|
$
|
(523.9
|
)
|
$
|
149.2
|
|||
Net (loss) earnings from continuing operations attributable to:
|
|
||||||||
Non-controlling interests
|
|
$
|
(0.1
|
)
|
$
|
(0.3
|
)
|
||
Common shareholders
|
|
$
|
82.3
|
$
|
76.2
|
||||
Net (loss) earnings attributable to:
|
|
||||||||
Non-controlling interests
|
|
$
|
(0.1
|
)
|
$
|
(0.3
|
)
|
||
Common shareholders
|
|
$
|
(523.8
|
)
|
$
|
149.5
|
|||
Earnings per share from continuing operations attributable to common shareholders
|
|
||||||||
Basic
|
|
$
|
0.07
|
$
|
0.06
|
||||
Diluted
|
|
$
|
0.06
|
$
|
0.06
|
||||
|
|
||||||||
(Loss) earnings per share attributable to common shareholders
|
|
||||||||
Basic
|
|
$
|
(0.41
|
)
|
$
|
0.12
|
|||
Diluted
|
|
$
|
(0.41
|
)
|
$
|
0.12
|
|
|
Three months ended
|
|||||||
|
|
March 31,
|
March 31,
|
||||||
|
|
2022
|
2021
|
||||||
|
|
||||||||
|
|
||||||||
Net (loss) earnings
|
|
$
|
(523.9
|
)
|
$
|
149.2
|
|||
|
|
||||||||
Other comprehensive income (loss), net of tax(a):
|
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(b)
|
|
6.9
|
(13.7
|
)
|
|||||
|
|
||||||||
Items that are or may be reclassified to profit or loss in subsequent periods:
|
|
||||||||
Cash flow hedges - effective portion of changes in fair value(c)
|
|
21.1
|
10.4
|
||||||
Cash flow hedges - reclassified out of accumulated other comprehensive income ("AOCI")(d)
|
|
5.0
|
(1.0
|
)
|
|||||
|
|
33.0
|
(4.3
|
)
|
|||||
Total comprehensive (loss) income
|
|
$
|
(490.9
|
)
|
$
|
144.9
|
|||
|
|
||||||||
Comprehensive income from continuing operations
|
|
$
|
115.2
|
$
|
71.6
|
||||
Comprehensive (loss) income from discontinued operations
|
Note 5
|
(606.1
|
)
|
73.3
|
|||||
Total comprehensive (loss) income
|
|
$
|
(490.9
|
)
|
$
|
144.9
|
|||
|
|
||||||||
Attributable to non-controlling interests
|
|
$
|
(0.1
|
)
|
$
|
(0.3
|
)
|
||
Attributable to common shareholders
|
|
$
|
(490.8
|
)
|
$
|
145.2
|
|||
|
|
(a) As at March 31, 2022, hedge accounting has been discontinued for
all Russian rouble collar contracts. The related balance in AOCI of $13.8 million, net of tax recovery of $5.0 million has been reclassified to loss (earnings) from discontinued operations after tax.
(b) Net of tax expense (recovery) of $nil (2021 - $nil).
|
(c) Net of tax expense of $7.6 million (2021 - $2.3 million).
(d) Net of tax expense (recovery) of $2.1 million (2021 - $(0.1)
million).
|
|
|
Three months ended
|
|||||||
|
|
March 31,
|
March 31,
|
||||||
|
|
2022
|
2021
|
||||||
Net inflow (outflow) of cash related to the following activities:
|
|
||||||||
Operating:
|
|
||||||||
Earnings from continuing operations after tax
|
|
$
|
82.2
|
$
|
75.9
|
||||
Adjustments to reconcile net earnings from continuing operations to net cash provided from operating activities:
|
|
||||||||
Depreciation, depletion and amortization
|
|
180.8
|
188.8
|
||||||
Share-based compensation expense
|
|
3.0
|
3.8
|
||||||
Finance expense
|
|
22.0
|
19.0
|
||||||
Deferred tax (recovery) expense
|
|
(20.0
|
)
|
2.9
|
|||||
Foreign exchange losses and other
|
|
4.9
|
8.5
|
||||||
Reclamation recovery
|
|
(11.9
|
)
|
-
|
|||||
Changes in operating assets and liabilities:
|
|
||||||||
Accounts receivable and other assets
|
|
43.8
|
(3.0
|
)
|
|||||
Inventories
|
|
(90.5
|
)
|
(32.9
|
)
|
||||
Accounts payable and accrued liabilities
|
|
(25.2
|
)
|
(21.6
|
)
|
||||
Cash flow provided from operating activities
|
|
189.1
|
241.4
|
||||||
Income taxes paid
|
(83.9
|
)
|
(96.3
|
)
|
|||||
Net cash flow of continuing operations provided from operating activities
|
|
105.2
|
145.1
|
||||||
Net cash flow of discontinued operations provided from operating activities
|
Note 5
|
91.4
|
134.7
|
||||||
Investing:
|
|
||||||||
Additions to property, plant and equipment
|
|
(106.3
|
)
|
(191.6
|
)
|
||||
Interest paid capitalized to property, plant and equipment
|
Note 8
|
(11.0
|
)
|
(23.2
|
)
|
||||
Acquisitions net of cash acquired
|
Note 5
|
(1,027.5
|
)
|
-
|
|
||||
Net additions to long-term investments and other assets
|
|
(13.9
|
)
|
(1.9
|
)
|
||||
(Increase) decrease in restricted cash - net
|
|
(1.7
|
)
|
2.4
|
|||||
Interest received and other - net
|
|
1.1
|
0.5
|
||||||
Net cash flow of continuing operations used in investing activities
|
|
(1,159.3
|
)
|
(213.8
|
)
|
||||
Net cash flow of discontinued operations used in investing activities
|
Note 5
|
(11.2
|
)
|
(155.0
|
)
|
||||
Financing:
|
|
||||||||
Proceeds from drawdown of debt
|
Note 8
|
1,097.6
|
-
|
||||||
Interest paid
|
Note 8
|
(24.7
|
)
|
(23.6
|
)
|
||||
Payment of lease liabilities
|
|
(5.4
|
)
|
(7.6
|
)
|
||||
Dividends paid to common shareholders
|
Note 10
|
(38.9
|
)
|
(37.8
|
)
|
||||
Other - net
|
|
5.9
|
4.6
|
||||||
Net cash flow of continuing operations provided from (used in) financing activities
|
|
1,034.5
|
(64.4
|
)
|
|||||
Net cash flow of discontinued operations used in financing activities
|
Note 5
|
-
|
-
|
||||||
Effect of exchange rate changes on cash and cash equivalents of continuing operations
|
|
-
|
(0.2
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents of discontinued operations
|
|
(3.9
|
)
|
(1.2
|
)
|
||||
Increase (decrease) in cash and cash equivalents
|
|
56.7
|
(154.8
|
)
|
|||||
Cash and cash equivalents, beginning of period
|
|
531.5
|
1,210.9
|
||||||
Reclassified to assets held for sale
|
|
(134.0
|
)
|
-
|
|||||
Cash and cash equivalents, end of period
|
|
$
|
454.2
|
$
|
1,056.1
|
||||
|
|
|
|
Three months ended
|
|||||||
|
|
March 31,
|
March 31,
|
||||||
|
|
2022
|
2021
|
||||||
|
|
||||||||
Common share capital
|
|
||||||||
Balance at the beginning of the period
|
|
$
|
4,427.7
|
$
|
4,473.7
|
||||
Common shares issued on acquisition of Great Bear
|
Note 5
|
271.6
|
-
|
||||||
Transfer from contributed surplus on exercise of restricted shares
|
|
6.3
|
7.4
|
||||||
Options exercised, including cash
|
|
4.6
|
5.1
|
||||||
Balance at the end of the period
|
|
$
|
4,710.2
|
$
|
4,486.2
|
||||
|
|
||||||||
Contributed surplus
|
|
||||||||
Balance at the beginning of the period
|
|
$
|
10,664.4
|
$
|
10,709.0
|
||||
Share options issued on acquisition of Great Bear
|
Note 5
|
39.5
|
-
|
||||||
Contingent value rights issued on acquisition of Great Bear
|
Note 5
|
4.7
|
-
|
||||||
Share-based compensation
|
|
3.0
|
3.8
|
||||||
Transfer of fair value of exercised options and restricted shares
|
|
(13.2
|
)
|
(15.7
|
)
|
||||
Balance at the end of the period
|
|
$
|
10,698.4
|
$
|
10,697.1
|
||||
|
|
||||||||
Accumulated deficit
|
|
||||||||
Balance at the beginning of the period
|
|
$
|
(8,492.4
|
)
|
$
|
(8,562.5
|
)
|
||
Dividends paid
|
Note 10
|
(38.9
|
)
|
(37.8
|
)
|
||||
Net earnings attributable to common shareholders
|
|
(523.8
|
)
|
149.5
|
|||||
Balance at the end of the period
|
|
$
|
(9,055.1
|
)
|
$
|
(8,450.8
|
)
|
||
|
|
||||||||
Accumulated other comprehensive income (loss)
|
|
||||||||
Balance at the beginning of the period
|
|
$
|
(18.8
|
)
|
$
|
(23.7
|
)
|
||
Other comprehensive income (loss), net of tax
|
|
33.0
|
(4.3
|
)
|
|||||
Balance at the end of the period
|
|
$
|
14.2
|
$
|
(28.0
|
)
|
|||
Total accumulated deficit and accumulated other comprehensive loss
|
|
$
|
(9,040.9
|
)
|
$
|
(8,478.8
|
)
|
||
|
|
||||||||
Total common shareholders' equity
|
|
$
|
6,367.7
|
$
|
6,704.5
|
||||
|
|
||||||||
Non-controlling interests
|
|
||||||||
Balance at the beginning of the period
|
|
$
|
68.7
|
$
|
66.5
|
||||
Net loss attributable to non-controlling interests
|
|
(0.1
|
)
|
(0.3
|
)
|
||||
Funding from non-controlling interest
|
|
1.5
|
0.9
|
||||||
Balance at the end of the period
|
|
$
|
70.1
|
$
|
67.1
|
||||
|
|
||||||||
Total equity
|
|
$
|
6,437.8
|
$
|
6,771.6
|
||||
|
|
1.
|
DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS
|
2.
|
BASIS OF PRESENTATION
|
3.
|
CHANGES IN SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS
|
4.
|
SIGNIFICANT JUDGMENTS, ESTIMATES AND ASSUMPTIONS
|
5.
|
ACQUISITIONS, DIVESTITURES AND DISCONTINUED OPERATIONS
|
i.
|
Acquisition of Great Bear Resources Ltd.
|
Purchase price
|
||||
Cash consideration
|
$
|
1,061.5
|
||
Common shares issued (49.3 million)(a)
|
271.6
|
|||
Fair value of options issued (9.9 million)(b)
|
39.5
|
|||
Fair value of contingent value rights issued (59.3 million)
|
4.7
|
|||
Acquisition costs
|
14.6
|
|||
Total purchase price
|
$
|
1,391.9
|
(a)
|
Common shares issued were valued at the closing share price on February 23, 2022 of C$7.01.
|
(b)
|
Fair value of stock options were determined using the Black-Scholes option pricing model. See Note 11i.
|
Purchase price allocation
|
||||
Mineral interests - pre-development properties
|
$
|
1,367.8
|
||
Land, plant and equipment
|
0.6
|
|||
Total property, plant and equipment
|
1,368.4
|
|||
Net working capital
|
23.5
|
|||
Total purchase price
|
$
|
1,391.9
|
ii.
|
Divestiture of Russian Discontinued Operations
|
|
As at
|
|||
|
March 31,
|
|||
|
2022
|
|||
|
||||
Assets
|
||||
Cash and cash equivalents
|
$
|
134.0
|
||
Accounts receivable and other assets
|
29.6
|
|||
Current income tax recoverable
|
4.5
|
|||
Inventories
|
219.2
|
|||
Property, plant and equipment
|
83.6
|
|||
Other long-term assets
|
27.5
|
|||
Assets held for sale
|
$
|
498.4
|
||
|
||||
Liabilities
|
||||
Accounts payable and accrued liabilities
|
$
|
20.4
|
||
Current income tax payable
|
0.1
|
|||
Provisions
|
28.5
|
|||
Deferred tax liabilities
|
4.4
|
|||
Liabilities held for sale
|
$
|
53.4
|
||
|
||||
Net assets held for sale
|
$
|
445.0
|
||
|
|
Three months ended
|
|||||||
|
March 31,
|
March 31,
|
||||||
|
2022
|
2021
|
||||||
|
||||||||
Results of discontinued operation
|
||||||||
Revenue
|
$
|
153.5
|
$
|
217.8
|
||||
Expenses(a)
|
717.5
|
121.7
|
||||||
(Loss) earnings before tax
|
(564.0
|
)
|
96.1
|
|||||
Income tax expense - net
|
(42.1
|
)
|
(22.8
|
)
|
||||
(Loss) earnings and other comprehensive (loss) income from discontinued operations after tax
|
$
|
(606.1
|
)
|
$
|
73.3
|
|||
|
||||||||
(Loss) earnings per share from discontinued operations attributable to common shareholders
|
||||||||
Basic
|
$
|
(0.48
|
)
|
$
|
0.06
|
|||
Diluted
|
$
|
(0.48
|
)
|
$
|
0.06
|
(a)
|
Includes impairment charges of $671.0 million for the three months ended March 31, 2022, as well as $18.8 million for the reclassification of AOCI to (loss)
earnings from discontinued operations on the discontinuation of hedge accounting for Russian rouble collar contracts as at March 31, 2022.
|
|
Three months ended
|
|||||||
|
March 31,
|
March 31,
|
||||||
|
2022
|
2021
|
||||||
Cash flows of discontinued operation:
|
||||||||
Net cash flow provided from operating activities
|
$
|
91.4
|
$
|
134.7
|
||||
Net cash flow used in investing activities(a)
|
(11.2
|
)
|
(155.0
|
)
|
||||
Net cash flow used in financing activities
|
-
|
-
|
||||||
Effect of exchange rate changes on cash and cash equivalents
|
(3.9
|
)
|
(1.2
|
)
|
||||
Net cash flow of discontinued operation
|
$
|
76.3
|
$
|
(21.5
|
)
|
|||
|
(a)
|
Net cash flow used in investing activities for the three months ended March 31, 2021 includes $141.5 million paid to settle the deferred payment obligation
related to the acquisition of the Chulbatkan license.
|
iii.
|
Divestiture of Chirano
|
6.
|
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT DETAILS
|
i.
|
Cash and cash equivalents:
|
|
March 31,
|
December 31,
|
||||||
|
2022
|
2021
|
||||||
Cash on hand and balances with banks
|
$
|
352.7
|
$
|
386.8
|
||||
Short-term deposits
|
101.5
|
144.7
|
||||||
|
$
|
454.2
|
$
|
531.5
|
ii.
|
Restricted cash:
|
|
March 31,
|
December 31,
|
||||||
|
2022
|
2021
|
||||||
Restricted cash(a)
|
$
|
13.1
|
$
|
11.4
|
(a)
|
Restricted cash relates to loan escrow judicial deposits and environmental indemnity deposits.
|
iii.
|
Accounts receivable and other assets:
|
|
March 31,
|
December 31,
|
||||||
|
2022
|
2021
|
||||||
Trade receivables
|
$
|
5.0
|
$
|
3.3
|
||||
Prepaid expenses
|
28.3
|
31.9
|
||||||
VAT receivable
|
67.5
|
79.5
|
||||||
Deposits
|
10.3
|
16.6
|
||||||
Other(a)
|
12.5
|
83.2
|
||||||
|
$
|
123.6
|
$
|
214.5
|
(a)
|
At December 31, 2021, Other includes $61.5 million related to initial insurance recoveries for the Tasiast mill fire, which was received during
the three months ended March 31, 2022.
|
iv.
|
Inventories:
|
|
March 31,
|
December 31,
|
||||||
|
2022
|
2021
|
||||||
Ore in stockpiles(a)
|
$
|
239.5
|
$
|
250.7
|
||||
Ore on leach pads(b)
|
678.5
|
589.1
|
||||||
In-process
|
85.9
|
111.4
|
||||||
Finished metal
|
74.0
|
64.0
|
||||||
Materials and supplies
|
284.1
|
459.9
|
||||||
|
1,362.0
|
1,475.1
|
||||||
Long-term portion of ore in stockpiles and ore on leach pads(a),(b)
|
(317.6
|
)
|
(323.8
|
)
|
||||
|
$
|
1,044.4
|
$
|
1,151.3
|
(a)
|
Ore in stockpiles relates to the Company’s operating mines. Low-grade material not scheduled for processing within the next 12 months is
included in other long-term assets. See Note 6vii.
|
(b)
|
Ore on leach pads relates to the Company's Bald Mountain, Fort Knox, Round Mountain and Tasiast mines. Based on current mine plans, the Company
expects to place the last tonne of ore on its leach pads at Bald Mountain in 2024, Fort Knox in 2028 and Round Mountain in 2029. The last tonne of ore was placed on the Tasiast leach pads during 2020. Material not scheduled for
processing within the next 12 months is included in other long-term assets. See Note 6vii.
|
v.
|
Property, plant and equipment:
|
|
Mineral Interests
|
|||||||||||||||
|
Land, plant and equipment(a)
|
Development and operating properties(b)
|
Pre-development properties(c)
|
Total
|
||||||||||||
Cost
|
||||||||||||||||
Balance at January 1, 2022
|
$
|
10,524.5
|
$
|
10,560.6
|
$
|
517.3
|
$
|
21,602.4
|
||||||||
Additions
|
63.6
|
3.4
|
2.8
|
69.8
|
||||||||||||
Acquisitions(d)
|
0.6
|
-
|
1,367.8
|
1,368.4
|
||||||||||||
Capitalized interest
|
3.7
|
3.7
|
2.8
|
10.2
|
||||||||||||
Disposals
|
(5.7
|
)
|
-
|
-
|
(5.7
|
)
|
||||||||||
Other
|
(0.1
|
)
|
13.6
|
(1.2
|
)
|
12.3
|
||||||||||
Assets held for sale(e)
|
(987.8
|
)
|
(1,446.3
|
)
|
(356.0
|
)
|
(2,790.1
|
)
|
||||||||
Balance at March 31, 2022
|
9,598.8
|
9,135.0
|
1,533.5
|
20,267.3
|
||||||||||||
|
||||||||||||||||
Accumulated depreciation, depletion, and amortization
|
||||||||||||||||
Balance at January 1, 2022
|
$
|
(6,886.3
|
)
|
$
|
(7,098.4
|
)
|
$
|
-
|
$
|
(13,984.7
|
)
|
|||||
Depreciation, depletion and amortization
|
(110.1
|
)
|
(106.1
|
)
|
-
|
(216.2
|
)
|
|||||||||
Disposals
|
4.1
|
-
|
-
|
4.1
|
||||||||||||
Assets held for sale(e)
|
887.6
|
1,290.2
|
-
|
2,177.8
|
||||||||||||
Balance at March 31, 2022
|
(6,104.7
|
)
|
(5,914.3
|
)
|
-
|
(12,019.0
|
)
|
|||||||||
|
||||||||||||||||
Net book value
|
$
|
3,494.1
|
$
|
3,220.7
|
$
|
1,533.5
|
$
|
8,248.3
|
||||||||
|
||||||||||||||||
Amount included above as at March 31, 2022:
|
||||||||||||||||
Assets under construction
|
$
|
362.6
|
$
|
328.2
|
$
|
20.5
|
$
|
711.3
|
||||||||
Assets not being depreciated(f)
|
$
|
610.1
|
$
|
611.7
|
$
|
1,533.5
|
$
|
2,755.3
|
||||||||
|
(a)
|
Additions includes $0.4 million of right-of-use (“ROU”) assets for lease arrangements entered into during the three months ended March 31, 2022. Depreciation,
depletion and amortization includes depreciation for ROU assets of $5.3 million during the three months ended March 31, 2022. The net book value of property, plant and equipment includes ROU assets with an aggregate net book value of
$49.6 million as at March 31, 2022.
|
(b)
|
At March 31, 2022, the significant development and operating properties are Fort Knox, Round Mountain, Bald Mountain, Paracatu, Tasiast, Chirano, La Coipa and
Lobo-Marte.
|
(c)
|
At March 31, 2022, the significant pre-development properties include the Great Bear and Manh Choh projects.
|
(d)
|
During the three months ended March 31, 2022, the Company acquired Great Bear. See Note 5i. Land, plant and equipment acquired included $0.3 million of ROU
assets.
|
(e)
|
As at March 31, 2022, property, plant and equipment related to the Kupol segment and the Udinsk project were reclassified as held for sale. See Note 5ii.
|
(f)
|
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(c)
|
Total
|
||||||||||||
Cost
|
||||||||||||||||
Balance at January 1, 2021
|
$
|
10,190.0
|
$
|
10,136.2
|
$
|
465.3
|
$
|
20,791.5
|
||||||||
Additions
|
501.2
|
416.7
|
46.9
|
964.8
|
||||||||||||
Capitalized interest
|
25.0
|
19.8
|
3.5
|
48.3
|
||||||||||||
Disposals
|
(59.6
|
)
|
-
|
-
|
(59.6
|
)
|
||||||||||
Derecognition(d)
|
(134.4
|
)
|
(14.1
|
)
|
-
|
(148.5
|
)
|
|||||||||
Other
|
2.3
|
2.0
|
1.6
|
5.9
|
||||||||||||
Balance at December 31, 2021
|
10,524.5
|
10,560.6
|
517.3
|
21,602.4
|
||||||||||||
|
||||||||||||||||
Accumulated depreciation, depletion, and amortization
|
||||||||||||||||
Balance at January 1, 2021
|
$
|
(6,471.3
|
)
|
$
|
(6,666.7
|
)
|
$
|
-
|
$
|
(13,138.0
|
)
|
|||||
Depreciation, depletion and amortization
|
(556.2
|
)
|
(437.7
|
)
|
-
|
(993.9
|
)
|
|||||||||
Derecognition(d)
|
90.8
|
8.4
|
-
|
99.2
|
||||||||||||
Disposals
|
48.8
|
-
|
-
|
48.8
|
||||||||||||
Other
|
1.6
|
(2.4
|
)
|
-
|
(0.8
|
)
|
||||||||||
Balance at December 31, 2021
|
(6,886.3
|
)
|
(7,098.4
|
)
|
-
|
(13,984.7
|
)
|
|||||||||
|
||||||||||||||||
Net book value
|
$
|
3,638.2
|
$
|
3,462.2
|
$
|
517.3
|
$
|
7,617.7
|
||||||||
|
||||||||||||||||
Amount included above as at December 31, 2021:
|
||||||||||||||||
Assets under construction
|
$
|
399.9
|
$
|
326.5
|
$
|
65.2
|
$
|
791.6
|
||||||||
Assets not being depreciated(e)
|
$
|
646.5
|
$
|
661.0
|
$
|
517.3
|
$
|
1,824.8
|
||||||||
|
(a)
|
Additions includes $10.2 million of ROU assets for lease arrangements entered into during the year ended December 31, 2021. Depreciation, depletion and amortization
includes depreciation for ROU assets of $32.2 million during the year ended December 31, 2021. The net book value of property, plant and equipment includes ROU assets with an aggregate net book value of $54.2 million as at December 31,
2021.
|
(b)
|
At December 31, 2021, the significant development and operating properties are Fort Knox, Round Mountain, Bald Mountain, Paracatu, Kupol, Tasiast, Chirano, La
Coipa, and Lobo-Marte.
|
(c)
|
At December 31, 2021, the significant pre-development properties are the Chulbatkan license area, including the Udinsk project, and the Manh Choh project.
|
(d)
|
During the year ended December 31, 2021, the Company derecognized property, plant and equipment related to the Vantage heap leach pad at Bald Mountain.
|
(e)
|
Assets not being depreciated relate to land, capitalized E&E costs, assets under construction, which relate to expansion projects, and other assets that are in
various stages of being readied for use.
|
vi.
|
Long-term investments:
|
|
March 31, 2022
|
December 31, 2021
|
||||||||||||||
|
Fair value
|
Gains (losses) in AOCI(a)
|
Fair value
|
Gains (losses) in AOCI(a)
|
||||||||||||
Investments in an accumulated gain position
|
$
|
77.4
|
$
|
10.4
|
$
|
12.4
|
$
|
0.7
|
||||||||
Investments in an accumulated loss position
|
30.8
|
(52.5
|
)
|
85.8
|
(49.3
|
)
|
||||||||||
Net realized gains
|
-
|
3.3
|
-
|
2.9
|
||||||||||||
|
$
|
108.2
|
$
|
(38.8
|
)
|
$
|
98.2
|
$
|
(45.7
|
)
|
(a)
|
See Note 6x for details of changes in fair values recognized in other comprehensive income during the three months ended March 31, 2022 and year ended December 31,
2021.
|
vii.
|
Other long-term assets:
|
|
March 31,
|
December 31,
|
||||||
|
2022
|
2021
|
||||||
Long-term portion of ore in stockpiles and ore on leach pads(a)
|
$
|
317.6
|
$
|
323.8
|
||||
Deferred charges, net of amortization
|
6.4
|
7.3
|
||||||
Long-term receivables
|
123.5
|
110.8
|
||||||
Advances for the purchase of capital equipment
|
30.8
|
45.8
|
||||||
Restricted cash(b)
|
25.0
|
25.0
|
||||||
Unrealized fair value of derivative assets(c)
|
23.6
|
15.1
|
||||||
Other
|
42.0
|
63.1
|
||||||
|
$
|
568.9
|
$
|
590.9
|
(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,
2022, long-term ore in stockpiles was at the Company’s Paracatu and Tasiast mines, and long-term ore on leach pads was at the Company’s Fort Knox and Round Mountain mines.
|
(b)
|
See Note 8iii for details of the Tasiast loan and cash restricted for future loan payments as at March 31, 2022.
|
(c)
|
See Note 7 for details of the non-current portion of unrealized fair value of derivative assets.
|
viii.
|
Accounts payable and accrued liabilities:
|
|
March 31,
|
December 31,
|
||||||
|
2022
|
2021
|
||||||
Trade payables
|
$
|
93.6
|
$
|
87.8
|
||||
Accrued liabilities
|
250.6
|
270.5
|
||||||
Employee related accrued liabilities
|
97.6
|
134.4
|
||||||
|
$
|
441.8
|
$
|
492.7
|
ix.
|
Other current liabilities:
|
|
March 31,
|
December 31,
|
||||||
|
2022
|
2021
|
||||||
Current portion of lease liabilities
|
$
|
17.8
|
$
|
19.7
|
||||
Current portion of unrealized fair value of derivative liabilities(a)
|
5.9
|
4.0
|
||||||
|
$
|
23.7
|
$
|
23.7
|
(a)
|
See Note 7 for details of the current portion of unrealized fair value of derivative liabilities.
|
x.
|
Accumulated other comprehensive income (loss):
|
|
Long-term Investments
|
Derivative
Contracts |
Total
|
|||||||||
Balance at December 31, 2020
|
$
|
(25.9
|
)
|
$
|
2.2
|
$
|
(23.7
|
)
|
||||
Other comprehensive income (loss) before tax
|
(19.8
|
)
|
33.6
|
13.8
|
||||||||
Tax
|
-
|
(8.9
|
)
|
(8.9
|
)
|
|||||||
Balance at December 31, 2021
|
$
|
(45.7
|
)
|
$
|
26.9
|
$
|
(18.8
|
)
|
||||
Other comprehensive income (loss) before tax
|
6.9
|
35.8
|
42.7
|
|||||||||
Tax
|
-
|
(9.7
|
)
|
(9.7
|
)
|
|||||||
Balance at March 31, 2022
|
$
|
(38.8
|
)
|
$
|
53.0
|
$
|
14.2
|
xi.
|
Other (expense) income – net:
|
|
Three months ended March 31,
|
|||||||
|
2022
|
2021
|
||||||
Net losses on dispositions of assets
|
(1.4
|
)
|
(0.5
|
)
|
||||
Foreign exchange (losses) gains - net
|
(2.4
|
)
|
5.8
|
|||||
Net non-hedge derivative losses
|
(0.6
|
)
|
(1.5
|
)
|
||||
Other - net
|
(0.6
|
)
|
0.4
|
|||||
|
$
|
(5.0
|
)
|
$
|
4.2
|
xii.
|
Finance expense:
|
|
Three months ended March 31,
|
|||||||
|
2022
|
2021
|
||||||
Accretion of reclamation and remediation obligations
|
$
|
(4.8
|
)
|
$
|
(3.2
|
)
|
||
Interest expense, including accretion of debt and lease liabilities(a), (b)
|
(17.2
|
)
|
(15.8
|
)
|
||||
|
$
|
(22.0
|
)
|
$
|
(19.0
|
)
|
(a)
|
During the three months ended March 31, 2022, $10.2 million of interest was capitalized to property, plant and equipment (three months ended March 31, 2021 - $15.2
million). See Note 6v.
|
(b)
|
During the three months ended March 31, 2022, accretion of lease liabilities was $0.7 million (three months ended March 31, 2021 - $1.0 million).
|
7.
|
FAIR VALUE MEASUREMENT
|
(a)
|
Recurring fair value measurement
|
|
||||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Aggregate
Fair Value |
||||||||||||
Equity investments at FVOCI
|
$
|
108.2
|
$
|
-
|
$
|
-
|
$
|
108.2
|
||||||||
Derivative contracts:
|
||||||||||||||||
Foreign currency forward and collar contracts
|
-
|
(7.7
|
)
|
-
|
(7.7
|
)
|
||||||||||
Energy swap contracts
|
-
|
59.9
|
-
|
59.9
|
||||||||||||
Total return swap contracts
|
-
|
0.1
|
-
|
0.1
|
||||||||||||
|
$
|
108.2
|
$
|
52.3
|
$
|
-
|
$
|
160.5
|
|
March 31, 2022
|
December 31, 2021
|
||||||||||||||
|
Asset / (Liability)
Fair Value
|
AOCI
|
Asset / (Liability)
Fair Value
|
AOCI
|
||||||||||||
Currency contracts
|
||||||||||||||||
Foreign currency forward and collar contracts(a)
|
$
|
(7.7
|
)
|
$
|
7.8
|
$
|
(4.5
|
)
|
$
|
(3.5
|
)
|
|||||
|
||||||||||||||||
Commodity contracts
|
||||||||||||||||
Energy swap contracts(b)
|
59.9
|
45.2
|
40.4
|
30.4
|
||||||||||||
|
||||||||||||||||
Other contracts
|
||||||||||||||||
Total return swap contracts
|
0.1
|
-
|
1.7
|
-
|
||||||||||||
|
||||||||||||||||
|
||||||||||||||||
Total all contracts
|
$
|
52.3
|
$
|
53.0
|
$
|
37.6
|
$
|
26.9
|
||||||||
|
||||||||||||||||
Unrealized fair value of derivative assets
|
||||||||||||||||
Current
|
$
|
49.2
|
$
|
30.0
|
||||||||||||
Non-current
|
23.6
|
15.1
|
||||||||||||||
|
$
|
72.8
|
$
|
45.1
|
||||||||||||
Unrealized fair value of derivative liabilities
|
||||||||||||||||
Current
|
$
|
(5.9
|
)
|
$
|
(4.0
|
)
|
||||||||||
Non-current
|
(14.6
|
)
|
(3.5
|
)
|
||||||||||||
|
$
|
(20.5
|
)
|
$
|
(7.5
|
)
|
||||||||||
Total net fair value
|
$
|
52.3
|
$
|
37.6
|
(a)
|
Of the total amount recorded in AOCI at March 31, 2022, $4.0 million will be reclassified out of AOCI within the next 12 months as a result of settling the
contracts.
|
(b)
|
Of the total amount recorded in AOCI at March 31, 2022, $31.9 million will be reclassified out of AOCI within the next 12 months as a result of settling the
contracts.
|
(b)
|
Fair value of financial assets and liabilities not measured and recognized at fair value
|
8.
|
LONG-TERM DEBT AND CREDIT FACILITIES
|
|
|
|||||||||||||||||||||||||||
|
|
March 31, 2022
|
December 31, 2021
|
|||||||||||||||||||||||||
|
|
Interest Rates
|
Nominal Amount
|
Deferred Financing Costs
|
Carrying Amount(a)
|
Fair
Value(b) |
Carrying Amount(a)
|
Fair
Value(b) |
||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
Senior notes
|
(i)
|
4.50%-6.875%
|
|
$
|
1,248.3
|
$
|
(6.0
|
)
|
$
|
1,242.3
|
$
|
1,310.1
|
$
|
1,241.9
|
$
|
1,432.7
|
||||||||||||
Revolving credit facility
|
(ii)
|
LIBOR plus 1.45%
|
300.0
|
-
|
$
|
300.0
|
300.0
|
200.0
|
200.0
|
|||||||||||||||||||
Term loan
|
(ii)
|
SOFR plus 1.25%
|
1,000.0
|
(2.4
|
)
|
$
|
997.6
|
997.6
|
-
|
-
|
||||||||||||||||||
Tasiast loan
|
(iii)
|
LIBOR plus 4.38%
|
200.0
|
(11.1
|
)
|
$
|
188.9
|
188.9
|
188.0
|
200.0
|
||||||||||||||||||
Total long-term and current debt
|
$
|
2,748.3
|
$
|
(19.5
|
)
|
$
|
2,728.8
|
$
|
2,796.6
|
$
|
1,629.9
|
$
|
1,832.7
|
|||||||||||||||
Less: current portion
|
|
(40.0
|
)
|
-
|
(40.0
|
)
|
-
|
(40.0
|
)
|
-
|
||||||||||||||||||
Long-term debt and credit facility
|
$
|
2,708.3
|
$
|
(19.5
|
)
|
$
|
2,688.8
|
$
|
2,796.6
|
$
|
1,589.9
|
$
|
1,832.7
|
(a)
|
Includes transaction costs on senior notes, term loan and Tasiast loan financings.
|
(b)
|
The fair value of senior notes is primarily determined using quoted market determined variables. See Note 7(b).
|
(i)
|
Senior notes
|
(ii)
|
Revolving credit facility and term loan
|
Type of credit
|
|
Revolving credit facility
|
LIBOR plus 1.45%
|
Term loan
|
SOFR plus 1.25%
|
Letters of credit
|
0.967-1.45%
|
Standby fee applicable to unused availability
|
0.290%
|
(iii)
|
Tasiast loan
|
(iv)
|
Other
|
(v)
|
Changes in liabilities arising from financing activities
|
|
Long-term debt and credit facilities
|
Lease liabilities
|
Accrued interest payable(a)
|
Total
|
||||||||||||
Balance as at January 1, 2022
|
$
|
1,629.9
|
$
|
54.8
|
$
|
25.3
|
$
|
1,710.0
|
||||||||
Changes from financing cash flows
|
||||||||||||||||
Debt issued
|
1,097.6
|
-
|
-
|
1,097.6
|
||||||||||||
Interest paid
|
-
|
-
|
(24.7
|
)
|
(24.7
|
)
|
||||||||||
Payment of lease liabilities
|
-
|
(5.4
|
)
|
-
|
(5.4
|
)
|
||||||||||
|
2,727.5
|
49.4
|
0.6
|
2,777.5
|
||||||||||||
Other changes
|
||||||||||||||||
Interest expense and accretion
|
$
|
-
|
$
|
0.7
|
$
|
16.5
|
$
|
17.2
|
||||||||
Capitalized interest
|
-
|
-
|
10.2
|
10.2
|
||||||||||||
Capitalized interest paid
|
-
|
-
|
(11.0
|
)
|
(11.0
|
)
|
||||||||||
Additions of lease liabilities
|
-
|
0.7
|
-
|
0.7
|
||||||||||||
Other
|
1.3
|
0.4
|
(4.3
|
)
|
(2.6
|
)
|
||||||||||
|
1.3
|
1.8
|
11.4
|
14.5
|
||||||||||||
Balance as at March 31, 2022
|
$
|
2,728.8
|
$
|
51.2
|
$
|
12.0
|
$
|
2,792.0
|
(a)
|
Included in Accounts payable and accrued liabilities.
|
|
Long-term debt and credit facilities
|
Lease liabilities
|
Accrued interest payable(a)
|
Total
|
||||||||||||
Balance as at January 1, 2021
|
$
|
1,923.9
|
$
|
74.7
|
$
|
33.7
|
$
|
2,032.3
|
||||||||
Changes from financing cash flows
|
||||||||||||||||
Debt issued
|
200.0
|
-
|
-
|
200.0
|
||||||||||||
Debt repayments
|
(500.0
|
)
|
-
|
-
|
(500.0
|
)
|
||||||||||
Interest paid
|
-
|
-
|
(46.9
|
)
|
(46.9
|
)
|
||||||||||
Payment of lease liabilities
|
-
|
(33.8
|
)
|
-
|
(33.8
|
)
|
||||||||||
|
1,623.9
|
40.9
|
(13.2
|
)
|
1,651.6
|
|||||||||||
Other changes
|
||||||||||||||||
Interest expense and accretion
|
$
|
-
|
$
|
3.8
|
$
|
67.7
|
$
|
71.5
|
||||||||
Capitalized interest
|
-
|
-
|
48.3
|
48.3
|
||||||||||||
Capitalized interest paid
|
-
|
-
|
(51.1
|
)
|
(51.1
|
)
|
||||||||||
Additions of lease liabilities
|
-
|
10.2
|
-
|
10.2
|
||||||||||||
Other
|
6.0
|
(0.1
|
)
|
(26.4
|
)
|
(20.5
|
)
|
|||||||||
|
6.0
|
13.9
|
38.5
|
58.4
|
||||||||||||
Balance as at December 31, 2021
|
$
|
1,629.9
|
$
|
54.8
|
$
|
25.3
|
$
|
1,710.0
|
(a)
|
Included in Accounts payable and accrued liabilities.
|
9.
|
PROVISIONS
|
|
Reclamation and remediation obligations (i)
|
Other
|
Total
|
|||||||||
Balance at January 1, 2022
|
$
|
867.0
|
$
|
70.9
|
$
|
937.9
|
||||||
Additions
|
7.7
|
3.3
|
11.0
|
|||||||||
Reductions
|
(41.8
|
)
|
(0.8
|
)
|
(42.6
|
)
|
||||||
Reclamation spending
|
(4.1
|
)
|
-
|
(4.1
|
)
|
|||||||
Accretion
|
4.8
|
-
|
4.8
|
|||||||||
Reclamation recovery
|
(11.9
|
)
|
-
|
(11.9
|
)
|
|||||||
Reclassifed to liabilities held for sale(a)
|
(73.8
|
)
|
-
|
(73.8
|
)
|
|||||||
Balance at March 31, 2022
|
$
|
747.9
|
$
|
73.4
|
$
|
821.3
|
||||||
|
||||||||||||
Current portion
|
36.4
|
49.0
|
85.4
|
|||||||||
Non-current portion
|
711.5
|
24.4
|
735.9
|
|||||||||
|
$
|
747.9
|
$
|
73.4
|
$
|
821.3
|
(a)
|
As at March 31, 2022, provisions related to the Kupol segment and the Udinsk project were reclassified as held for sale. See Note 5ii.
|
(i)
|
Reclamation and remediation obligations
|
10.
|
COMMON SHARE CAPITAL
|
|
Three months ended March 31, 2022
|
Year ended December 31, 2021
|
||||||||||||||
|
Number of shares
|
Amount
|
Number of shares
|
Amount
|
||||||||||||
|
(000's)
|
(000's)
|
||||||||||||||
Common shares
|
||||||||||||||||
Balance at January 1,
|
1,244,333
|
$
|
4,427.7
|
1,258,320
|
$
|
4,473.7
|
||||||||||
Issued on acquisition of Great Bear
|
49,268
|
271.6
|
-
|
-
|
||||||||||||
Issued under share option and restricted share plans
|
3,656
|
10.9
|
3,621
|
16.9
|
||||||||||||
Repurchase and cancellation of shares (i)
|
-
|
-
|
(17,608
|
)
|
(62.9
|
)
|
||||||||||
Total common share capital
|
1,297,257
|
$
|
4,710.2
|
1,244,333
|
$
|
4,427.7
|
i.
|
Repurchase and cancellation of common shares
|
ii.
|
Dividends on common shares
|
|
Per share
|
Total
amount paid
|
||||||
Dividends declared and paid during the period:
|
||||||||
Three months ended March 31, 2022
|
$
|
0.03
|
$
|
38.9
|
||||
Dividends declared and paid during the period:
|
||||||||
Three months ended March 31, 2021
|
$
|
0.03
|
$
|
37.8
|
11.
|
SHARE-BASED PAYMENTS
|
i.
|
Share option plan
|
|
Three months ended March 31, 2022
|
|||||||
|
Number of options (000's)
|
Weighted average exercise price (C$)
|
||||||
Outstanding at January 1, 2022
|
3,764
|
$
|
4.47
|
|||||
Issued on acquisition of Great Bear(a)
|
9,880
|
1.93
|
||||||
Exercised
|
(3,019
|
)
|
2.89
|
|||||
Outstanding at end of period
|
10,625
|
$
|
2.56
|
|||||
Exercisable at end of period
|
10,625
|
$
|
2.56
|
(a)
|
See Note 5i for details of the options issued on acquisition of Great Bear.
|
Weighted average share price (C$)
|
$
|
7.01
|
||
Expected dividend yield
|
2.8%
|
|
||
Expected volatility
|
36.26%
|
|
||
Risk-free interest rate
|
2.5%
|
|
||
Expected option life (in years)
|
1.0
|
|||
Weighted average fair value per share option granted (C$)
|
$
|
5.09
|
ii.
|
Restricted share unit plans
|
|
Three months ended March 31, 2022
|
|||||||
|
Number of units (000's)
|
Weighted average fair value (C$/unit)
|
||||||
Outstanding at January 1, 2022
|
5,293
|
$
|
7.81
|
|||||
Granted
|
3,396
|
7.04
|
||||||
Reinvested
|
36
|
7.52
|
||||||
Redeemed
|
(2,033
|
)
|
7.44
|
|||||
Forfeited
|
(214
|
)
|
8.18
|
|||||
Outstanding at end of period
|
6,478
|
$
|
7.51
|
|
Three months ended March 31, 2022
|
|||||||
|
Number of units (000's)
|
Weighted average fair value (C$/unit)
|
||||||
Outstanding at January 1, 2022
|
3,781
|
$
|
7.25
|
|||||
Granted
|
1,638
|
6.53
|
||||||
Reinvested
|
21
|
7.57
|
||||||
Redeemed
|
(1,247
|
)
|
4.61
|
|||||
Forfeited
|
(235
|
)
|
5.60
|
|||||
Outstanding at end of period
|
3,958
|
$
|
7.88
|
iii.
|
Deferred share unit (“DSU”) plan
|
iv.
|
Employee share purchase plan (“SPP”)
|
12.
|
EARNINGS (LOSS) PER SHARE
|
(Number of common shares in thousands)
|
Three months ended March 31,
|
|||||||
|
2022
|
2021
|
||||||
Basic weighted average shares outstanding:
|
1,264,491
|
1,259,189
|
||||||
Weighted average shares dilution adjustments:
|
||||||||
Stock options(a)
|
3,753
|
2,591
|
||||||
Restricted share units
|
4,165
|
2,605
|
||||||
Restricted performance share units
|
5,951
|
3,984
|
||||||
Diluted weighted average shares outstanding
|
1,278,360
|
1,268,369
|
(a)
|
Dilutive stock options were determined using the Company’s average share price for the period. For the three months ended March 31, 2022, the average share price
used was $5.55 (three months ended March 31, 2021 - $6.93).
|
(Number of common shares in thousands)
|
Three months ended March 31,
|
|||||||
|
2022
|
2021
|
||||||
Basic weighted average shares outstanding:
|
1,264,491
|
1,259,189
|
||||||
Weighted average shares dilution adjustments:
|
||||||||
Stock options(a)
|
-
|
2,591
|
||||||
Restricted share units
|
-
|
2,605
|
||||||
Restricted performance share units
|
-
|
3,984
|
||||||
Diluted weighted average shares outstanding
|
1,264,491
|
1,268,369
|
||||||
|
||||||||
Weighted average shares dilution adjustments - exclusions(b):
|
||||||||
Stock options(a)
|
3,216
|
-
|
||||||
Restricted share units
|
1,729
|
-
|
||||||
Restricted performance share units
|
2,881
|
-
|
(a)
|
Dilutive stock options were determined using the Company’s average share price for the period. For the three months ended March 31, 2022, the average share price
used was $5.55 (three months ended March 31, 2021 - $6.93).
|
(b)
|
These adjustments were excluded as they are anti-dilutive.
|
13.
|
SEGMENTED INFORMATION
|
|
Operating segments
|
Non-operating segments(a)
|
||||||||||||||||||||||||||||||||||
Three months ended March 31, 2022:
|
Fort Knox
|
Round Mountain
|
Bald Mountain
|
Paracatu
|
Tasiast
|
Chirano
|
Great Bear(d)
|
Corporate and other(b),(c)
|
Total
|
|||||||||||||||||||||||||||
Revenue
|
||||||||||||||||||||||||||||||||||||
Metal sales
|
$
|
98.1
|
87.6
|
76.5
|
189.7
|
247.4
|
67.1
|
-
|
1.6
|
$
|
768.0
|
|||||||||||||||||||||||||
Cost of sales
|
||||||||||||||||||||||||||||||||||||
Production cost of sales
|
67.4
|
52.3
|
40.3
|
106.6
|
95.8
|
47.6
|
-
|
0.6
|
410.6
|
|||||||||||||||||||||||||||
Depreciation, depletion and amortization
|
20.9
|
12.1
|
35.1
|
39.6
|
57.1
|
14.3
|
-
|
1.7
|
180.8
|
|||||||||||||||||||||||||||
Total cost of sales
|
88.3
|
64.4
|
75.4
|
146.2
|
152.9
|
61.9
|
-
|
2.3
|
591.4
|
|||||||||||||||||||||||||||
Gross profit (loss)
|
$
|
9.8
|
23.2
|
1.1
|
43.5
|
94.5
|
5.2
|
-
|
(0.7
|
)
|
$
|
176.6
|
||||||||||||||||||||||||
Other operating expense
|
0.2
|
0.4
|
0.5
|
1.1
|
14.2
|
4.0
|
-
|
(1.3
|
)
|
19.1
|
||||||||||||||||||||||||||
Exploration and business development
|
1.1
|
0.3
|
1.3
|
0.3
|
0.9
|
1.4
|
4.0
|
15.5
|
24.8
|
|||||||||||||||||||||||||||
General and administrative
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
30.2
|
30.2
|
|||||||||||||||||||||||||||
Operating earnings (loss)
|
$
|
8.5
|
22.5
|
(0.7
|
)
|
42.1
|
79.4
|
(0.2
|
)
|
(4.0
|
)
|
(45.1
|
)
|
$
|
102.5
|
|||||||||||||||||||||
Other expense - net
|
(5.0
|
)
|
||||||||||||||||||||||||||||||||||
Finance income
|
2.2
|
|||||||||||||||||||||||||||||||||||
Finance expense
|
(22.0
|
)
|
||||||||||||||||||||||||||||||||||
Earnings from continuing operations before tax
|
$
|
77.7
|
|
Operating segments
|
Non-operating segments(a)
|
||||||||||||||||||||||||||||||
Three months ended March 31, 2021:
|
Fort Knox
|
Round Mountain
|
Bald Mountain
|
Paracatu
|
Tasiast
|
Chirano
|
Corporate and other(b),(c)
|
Total
|
||||||||||||||||||||||||
Revenue
|
||||||||||||||||||||||||||||||||
Metal sales
|
$
|
98.5
|
131.6
|
85.8
|
225.8
|
151.4
|
74.3
|
1.3
|
$
|
768.7
|
||||||||||||||||||||||
Cost of sales
|
||||||||||||||||||||||||||||||||
Production cost of sales
|
57.7
|
63.1
|
37.0
|
82.8
|
51.3
|
52.8
|
0.5
|
345.2
|
||||||||||||||||||||||||
Depreciation, depletion and amortization
|
22.5
|
17.0
|
40.2
|
37.7
|
48.3
|
21.2
|
1.9
|
188.8
|
||||||||||||||||||||||||
Total cost of sales
|
80.2
|
80.1
|
77.2
|
120.5
|
99.6
|
74.0
|
2.4
|
534.0
|
||||||||||||||||||||||||
Gross profit (loss)
|
$
|
18.3
|
51.5
|
8.6
|
105.3
|
51.8
|
0.3
|
(1.1
|
)
|
$
|
234.7
|
|||||||||||||||||||||
Other operating expense
|
0.3
|
3.8
|
0.3
|
1.4
|
14.3
|
-
|
19.5
|
39.6
|
||||||||||||||||||||||||
Exploration and business development
|
0.1
|
0.4
|
1.2
|
0.1
|
0.5
|
1.9
|
15.9
|
20.1
|
||||||||||||||||||||||||
General and administrative
|
-
|
-
|
-
|
-
|
-
|
-
|
30.7
|
30.7
|
||||||||||||||||||||||||
Operating earnings (loss)
|
$
|
17.9
|
47.3
|
7.1
|
103.8
|
37.0
|
(1.6
|
)
|
(67.2
|
)
|
$
|
144.3
|
||||||||||||||||||||
Other income - net
|
4.2
|
|||||||||||||||||||||||||||||||
Finance income
|
1.5
|
|||||||||||||||||||||||||||||||
Finance expense
|
(19.0
|
)
|
||||||||||||||||||||||||||||||
Earnings from continuing operations before tax
|
$
|
131.0
|
|
Operating segments
|
Non-operating segments(a)
|
||||||||||||||||||||||||||||||||||||||
|
Fort Knox
|
Round Mountain
|
Bald Mountain
|
Paracatu
|
Tasiast
|
Chirano
|
Great Bear(d)
|
Corporate and other(b)
|
Discontinued operations(f)
|
Total
|
||||||||||||||||||||||||||||||
Property, plant and equipment at:(f)
|
||||||||||||||||||||||||||||||||||||||||
March 31, 2022
|
$
|
402.4
|
807.9
|
347.9
|
1,649.1
|
2,360.7
|
301.7
|
1,370.9
|
1,007.7
|
-
|
$
|
8,248.3
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Total assets at:
|
||||||||||||||||||||||||||||||||||||||||
March 31, 2022
|
$
|
756.2
|
1,089.8
|
568.9
|
1,958.3
|
2,938.1
|
403.2
|
1,392.2
|
1,516.9
|
498.4
|
$
|
11,122.0
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Capital expenditures for three months ended March 31, 2022(e)
|
$
|
2.9
|
17.2
|
6.2
|
17.2
|
17.5
|
6.0
|
2.6
|
44.1
|
12.5
|
$
|
126.2
|
|
Operating segments
|
Non-operating segments(a)
|
||||||||||||||||||||||||||||||||||
|
Fort Knox
|
Round Mountain
|
Bald Mountain
|
Paracatu
|
Tasiast
|
Chirano
|
Corporate and other(b)
|
Discontinued operations(f)
|
Total
|
|||||||||||||||||||||||||||
Property, plant and equipment at:
|
||||||||||||||||||||||||||||||||||||
December 31, 2021
|
$
|
429.5
|
829.3
|
392.4
|
1,665.2
|
2,406.4
|
309.2
|
973.4
|
612.3
|
$
|
7,617.7
|
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Total assets at:
|
||||||||||||||||||||||||||||||||||||
December 31, 2021
|
$
|
749.8
|
1,074.4
|
586.5
|
2,016.6
|
2,911.5
|
406.7
|
1,531.5
|
1,151.1
|
$
|
10,428.1
|
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Capital expenditures for three months ended March 31, 2021(e)
|
$
|
31.0
|
35.9
|
9.6
|
18.6
|
93.1
|
12.2
|
28.6
|
13.3
|
$
|
242.3
|
(a)
|
Non-operating segments include development and pre-development properties.
|
(b)
|
Corporate and other includes corporate, shutdown and other non-operating assets (including Kettle River-Buckhorn, La Coipa, Lobo-Marte, Manh Choh, and Maricunga).
|
(c)
|
Corporate
and other includes metal sales and operating losses of Maricunga of
$1.6 million and $(0.2) million, respectively, for the three months
ended March 31, 2022
($1.3 million and $(3.4) million, respectively, for the
three months ended March 31, 2021) as Maricunga continues to sell its
remaining finished metals inventories after transitioning all processing
activities to care and maintenance in
2019.
|
(d)
|
On February 24, 2022, the Company acquired Great Bear. See Note 5i.
|
(e)
|
Segment capital expenditures are presented on an accrual basis and include capitalized interest. Additions to property, plant and equipment in the interim condensed
consolidated statements of cash flows are presented on a cash basis.
|
(f)
|
Discontinued operations relate to the Company’s Russian operations held for sale as at March 31, 2022. Property, plant and equipment related to discontinued operations are included in
Assets held for sale. See Note 5ii.
|
14.
|
COMMITMENTS AND CONTINGENCIES
|
i.
|
Commitments
|
ii.
|
Contingencies
|
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, 2022.
|
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, with respect to 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, 2022 and ended on March 31, 2022 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, 2022.
|
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, with respect to 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, 2022 and ended on March 31, 2022 that has materially affected, or is reasonably likely to materially affect, the
issuer's ICFR.
|