99.1
|
Press release dated Aug 8, 2012 announcing results for the quarter ended June 30, 2012.
|
99.2
|
Press release dated Aug 8, 2012 announcing the payment of a dividend.
|
99.3
|
Press release dated Aug 9, 2012 announcing senior management changes
|
99.4
|
Material Change Report filed on SEDAR
|
KINROSS GOLD CORPORATION | |||
Signed:/ | Shelley M. Riley | ||
Vice President, Office Services and Corporate Secretary |
|||
![]() |
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5 |
|
●
|
Production1: 632,772 gold equivalent ounces, compared with 660,807 ounces in Q2 2011.
|
|
●
|
Revenue: $1,006.7 million, compared with $963.6 million in Q2 2011.
|
|
●
|
Production cost of sales2: $725 per gold equivalent ounce, compared with $569 in Q2 2011.
|
|
●
|
Attributable margin3: $843 per ounce sold, compared with $879 in Q2 2011.
|
|
●
|
Adjusted operating cash flow4: $270.5 million, compared with $404.8 million in Q2 2011. Adjusted operating cash flow per share was $0.24, compared with $0.36 in Q2 2011.
|
|
●
|
Adjusted net earnings4, 5: $156.0 million, compared with $222.6 million in Q2 2011. Adjusted net earnings per share were $0.14, compared with $0.20 in Q2 2011.
|
|
●
|
Reported net earnings5: $115.8 million, or $0.10 per share, compared with $244.3 million, or $0.22 per share, for Q2 2011.
|
|
●
|
Outlook: As a result of Kinross’ disposition of its 50% interest in Crixas, the Company now expects to produce approximately 2.5-2.6 million gold equivalent ounces in 2012 from its continuing operations, compared with its previous forecast of 2.6-2.8 million gold equivalent ounces. The Company remains on track to meet its 2012 production forecast excluding the adjustment for Crixás. Cost of sales for 2012 are now forecast to be $690-$725 per ounce, compared with the previous forecast of $670-$715, due to higher forecast production cost of sales per ounce in West Africa and South America.
|
|
●
|
Dividend: The Board of Directors declared a dividend of $0.08 per share payable on September 28, 2012 to shareholders of record at the close of business on September 21, 2012.
|
|
●
|
The Board of Directors has appointed J. Paul Rollinson, formerly Executive Vice-President, Corporate Development, as Chief Executive Officer of Kinross, replacing Tye W. Burt.
|
|
●
|
Kinross continues to advance its capital and project optimization process. At Tasiast, the Company has elected to undertake a pre-feasibility study (PFS) for construction of a mid-sized CIL mill in the 30,000 tonne per day range, for purposes of comparison with a 60,000 tonne per day mill option. Construction of the Dvoinoye project progressed well through the second quarter. Dvoinoye remains on schedule to deliver first ore to the upgraded Kupol mill in the second half of 2013.
|
|
●
|
The Company is launching a comprehensive cost reduction initiative with a focus on reducing operating, capital and other costs across the organization.
|
|
●
|
Kinross divested its 50% interest in the Crixás mine in the second quarter, consistent with its strategy of portfolio optimization and focusing resources on core operations and priority projects.
|
![]() |
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5 |
Three months ended
|
Six months ended
|
||||||||||||||||
June 30,
|
June 30,
|
||||||||||||||||
(dollars in millions, except per share and per ounce amounts)
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Total gold equivalent ounces(a)(e) - Produced (c)
|
654,243 | 696,631 | 1,266,081 | 1,397,110 | |||||||||||||
Total gold equivalent ounces(a)(e) - Sold (c)
|
656,447 | 704,447 | 1,285,952 | 1,423,024 | |||||||||||||
Gold equivalent ounces from continuing operations (a)(d) - Produced (c)
|
639,138 | 681,193 | 1,235,087 | 1,366,859 | |||||||||||||
Gold equivalent ounces from continuing operations (a)(d) - Sold (c)
|
640,836 | 688,282 | 1,253,188 | 1,393,240 | |||||||||||||
Total attributable gold equivalent ounces(a)(e) - Produced (c)
|
647,877 | 676,245 | 1,252,124 | 1,319,102 | |||||||||||||
Total attributable gold equivalent ounces(a)(e) - Sold (c)
|
650,149 | 685,823 | 1,271,829 | 1,346,611 | |||||||||||||
Attributable gold equivalent ounces from continuing operations (a)(d) - Produced (c)
|
632,772 | 660,807 | 1,221,130 | 1,288,851 | |||||||||||||
Attributable gold equivalent ounces from continuing operations (a)(d) - Sold (c)
|
634,538 | 669,658 | 1,239,065 | 1,316,827 | |||||||||||||
Financial Highlights from Continuing Operations (d)
|
|||||||||||||||||
Metal sales
|
$ | 1,006.7 | $ | 963.6 | $ | 2,014.8 | $ | 1,881.7 | |||||||||
Production cost of sales
|
$ | 464.9 | $ | 389.0 | $ | 917.5 | $ | 760.5 | |||||||||
Depreciation, depletion and amortization
|
$ | 157.0 | $ | 146.3 | $ | 299.7 | $ | 297.0 | |||||||||
Operating earnings
|
$ | 258.8 | $ | 352.8 | $ | 561.7 | $ | 677.9 | |||||||||
Net earnings from continuing operations attributed to common shareholders
|
$ | 115.8 | $ | 244.3 | $ | 215.4 | $ | 490.5 | |||||||||
Basic earnings per share from continuing operations attributable to common shareholders
|
$ | 0.10 | $ | 0.22 | $ | 0.19 | $ | 0.43 | |||||||||
Diluted earnings per share from continuing operations attributable to common shareholders
|
$ | 0.10 | $ | 0.21 | $ | 0.19 | $ | 0.43 | |||||||||
Adjusted net earnings from continuing operations attributed to common shareholders(b)
|
$ | 156.0 | $ | 222.6 | $ | 352.3 | $ | 394.2 | |||||||||
Adjusted net earnings from continuing operations per share(b)
|
$ | 0.14 | $ | 0.20 | $ | 0.31 | $ | 0.35 | |||||||||
Net cash flow of continuing operations provided from operating activities
|
$ | 77.4 | $ | 346.6 | $ | 453.9 | $ | 687.2 | |||||||||
Adjusted operating cash flow from continuing operations(b)
|
$ | 270.5 | $ | 404.8 | $ | 591.2 | $ | 795.5 | |||||||||
Adjusted operating cash flow from continuing operations per share(b)
|
$ | 0.24 | $ | 0.36 | $ | 0.52 | $ | 0.70 | |||||||||
Average realized gold price per ounce from continuing operations
|
$ | 1,568 | $ | 1,448 | $ | 1,605 | $ | 1,386 | |||||||||
Consolidated production cost of sales from continuing operations per equivalent ounce(c) sold(b)
|
$ | 725 | $ | 565 | $ | 732 | $ | 546 | |||||||||
Attributable(a) production cost of sales from continuing operations per equivalent ounce(c) sold(b)
|
$ | 725 | $ | 569 | $ | 732 | $ | 555 | |||||||||
Attributable(a) production cost of sales from continuing operations per ounce sold on a by-product basis(b)
|
$ | 658 | $ | 504 | $ | 655 | $ | 485 | |||||||||
(a)
|
Total includes 100% of Kupol and Chirano production. “Attributable” includes Kinross’ share of Kupol (75% up to April 27, 2011, 100% thereafter) and Chirano (90%) production.
|
||||||||||||||||
(b)
|
“Adjusted net earnings from continuing operations attributed to common shareholders”, “Adjusted net earnings from continuing operations per share”, “Adjusted operating cash flow from continuing operations”, “Adjusted operating cash flow from continuing operations per share”, “Consolidated production cost of sales from continuing operations per equivalent ounce sold”, “Attributable production cost of sales from continuing operations per equivalent ounce sold”, and “Attributable production cost of sales from continuing operations per ounce sold on a by-product basis” are non-GAAP measures. The definition and reconciliation of these non-GAAP financial measures is included on page 11 of this news release.
|
||||||||||||||||
(c)
|
“Gold equivalent ounces” include silver ounces produced and sold converted to a gold equivalent based on a ratio of the average spot market prices for the commodities for each period. The ratio for the second quarter of 2012 was 54.77:1, compared with 39.67:1 for the second quarter of 2011 and for the first six months of 2012 was 53.17:1, compared with 41.47:1 for the first six months of 2011.
|
||||||||||||||||
(d)
|
The comparative figures have been recast to exclude Crixás results due to its disposal.
|
||||||||||||||||
(e)
|
The total gold equivalent ounces and total attributable gold equivalent ounces include Crixás.
|
||||||||||||||||
p. 2 Kinross reports 2012 second quarter results | www.kinross.com |
![]() |
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5 |
p. 3 Kinross reports 2012 second quarter results | www.kinross.com |
![]() |
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5 |
p. 4 Kinross reports 2012 second quarter results | www.kinross.com |
![]() |
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5 |
p. 5 Kinross reports 2012 second quarter results | www.kinross.com |
![]() |
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5 |
|
●
|
Tasiast: In the second quarter, exploration drilling at Tasiast focused on step-out and district drilling. One core and eight reverse circulation (RC) rigs were in operation throughout the quarter, drilling a total of 1,062 holes for 112,472 metres. Near the mine, approximately 7,059 metres were drilled, testing for extensions of mineralization below the West Branch-Piment pit and Prolongation pit. Assay results from deep drilling have returned encouraging intercepts at Prolongation and West Branch South.
|
p. 6 Kinross reports 2012 second quarter results | www.kinross.com |
![]() |
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5 |
|
●
|
La Coipa: Seventy-eight holes were drilled at La Coipa for a total of 28,150 metres during the second quarter. The majority of the work was completed on the CMLC Joint Venture property (75% Kinross) where drilling continued to delineate the zone of oxide mineralization at Pompeya. Initial step-out drilling in the vicinity of Pompeya returned highly encouraging results of a similar mineralization style 250 metres southeast of the main deposit.
|
p. 7 Kinross reports 2012 second quarter results | www.kinross.com |
![]() |
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5 |
Region |
Previous production forecast
(gold equivalent oz)
|
Revised production forecast from
continuing operations (gold equivalent oz)
|
Previous cost of sales forecast ($ per gold
equivalent oz) |
Revised cost of sales forecast from continuing operations ($ per gold
equivalent oz) |
||||
South America
|
930,000-1,030,000
|
890,000-930,000
|
780-850
|
830-870
|
||||
North America
|
620,000-660,000
|
640,000-660,000
|
620-660
|
Unchanged
|
||||
West Africa
(attributable) |
500,000-560,000
|
430,000-460,000
|
740-800
|
780-820
|
||||
Russia
|
525,000-565,000
|
535,000-565,000
|
470-495
|
Unchanged
|
||||
Total Kinross
|
2.6-2.8 million
|
2.5-2.6 million
|
670-715
|
690-725
|
|
●
|
2.00 Brazilian reais to the U.S. dollar, compared with 1.75 Brazilian reais to the U.S. dollar
|
|
●
|
1.90 Ghanaian cedi to the U.S. dollar, compared with 1.60 Ghanaian cedi to the U.S. dollar
|
|
●
|
1.25 U.S. dollar to the Euro, compared with 1.35 U.S. dollar to the Euro.
|
Previous by-product
production forecast (ounces) |
Revised by-product production forecast
from continuing operations (ounces) |
|
Gold
|
2.5-2.6 million
|
2.35-2.45 million
|
Silver
|
7.5-8.0 million
|
9.0-9.5 million
|
p. 8 Kinross reports 2012 second quarter results | www.kinross.com |
![]() |
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5 |
p. 9 Kinross reports 2012 second quarter results | www.kinross.com |
![]() |
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5 |
p.10 Kinross reports 2012 second quarter results | www.kinross.com |
![]() |
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5 |
GAAP to Adjusted Earnings from Continuing
Operations Reconciliation |
||||||||||||||||
(in US$ millions)
|
Three months ended
|
Six months ended
|
||||||||||||||
June 30
|
June 30
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Net earnings from continuing operations attributed to common shareholders - as
reported |
$ | 115.8 | $ | 244.3 | $ | 215.4 | $ | 490.5 | ||||||||
Adjusting items:
|
||||||||||||||||
Foreign exchange (gains) losses
|
13.5 | (7.4 | ) | 6.2 | (21.9 | ) | ||||||||||
Non-hedge derivatives gains - net of tax
|
(3.4 | ) | (7.6 | ) | (13.5 | ) | (48.6 | ) | ||||||||
(Gains) losses on acquisition/disposition of assets and
investments - net of tax |
0.3 | (0.4 | ) | 0.3 | (31.2 | ) | ||||||||||
FX (gain) loss on translation of tax basis and FX on deferred
income taxes within income tax expense |
9.6 | (10.6 | ) | 12.1 | (1.6 | ) | ||||||||||
Change in deferred tax due to a change in Ghanaian
corporate income tax rate |
- | - | 110.3 | - | ||||||||||||
Taxes in respect of prior years
|
- | - | 1.3 | - | ||||||||||||
Impairment of investments
|
20.2 | - | 20.2 | - | ||||||||||||
Inventory fair value adjustment - net of tax
|
- | 4.3 | - | 7.0 | ||||||||||||
40.2 | (21.7 | ) | 136.9 | (96.3 | ) | |||||||||||
Net earnings from continuing operations attributed to common shareholders -
Adjusted |
$ | 156.0 | $ | 222.6 | $ | 352.3 | $ | 394.2 | ||||||||
Weighted average number of common shares outstanding - Basic
|
1,138.1 | 1,135.8 | 1,138.5 | 1,134.9 | ||||||||||||
Net earnings from continuing operations per share - Adjusted
|
$ | 0.14 | $ | 0.20 | $ | 0.31 | $ | 0.35 | ||||||||
p. 11 Kinross reports 2012 second quarter results | www.kinross.com |
![]() |
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5 |
GAAP to Adjusted Operating Cash Flow from
Continuing Operations |
||||||||||||||||
(in US$ millions)
|
Three months ended
|
Six months ended
|
||||||||||||||
June 30
|
June 30
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Net cash flow of continuing operations provided from operating activities - as
reported |
$ | 77.4 | $ | 346.6 | $ | 453.9 | $ | 687.2 | ||||||||
Adjusting items:
|
||||||||||||||||
Close out and early settlement of derivative instruments
|
(20.3 | ) | - | (48.7 | ) | - | ||||||||||
Working capital changes:
|
||||||||||||||||
Accounts receivable and other assets
|
53.0 | 131.8 | 85.4 | 167.9 | ||||||||||||
Inventories
|
50.2 | (11.7 | ) | 48.6 | 2.5 | |||||||||||
Accounts payable and other liabilities, including taxes
|
110.2 | (61.9 | ) | 52.0 | (62.1 | ) | ||||||||||
193.1 | 58.2 | 137.3 | 108.3 | |||||||||||||
Adjusted operating cash flow from continuing operations
|
$ | 270.5 | $ | 404.8 | $ | 591.2 | $ | 795.5 | ||||||||
Weighted average number of common shares outstanding - Basic
|
1,138.1 | 1,135.8 | 1,138.5 | 1,134.9 | ||||||||||||
Adjusted operating cash flow from continuing operations per share
|
$ | 0.24 | $ | 0.36 | $ | 0.52 | $ | 0.70 | ||||||||
Consolidated and Attributable Cost of Sales from
Continuing Operations Per Equivalent Ounce Sold |
||||||||||||||||
(in US$ millions)
|
Three months ended
|
Six months ended
|
||||||||||||||
June 30
|
June 30
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Production cost of sales from continuing operations
|
$ | 464.9 | $ | 389.0 | $ | 917.5 | $ | 760.5 | ||||||||
Less: portion attributable to Kupol non-controlling interest(1)
|
- | (4.1 | ) | - | (21.0 | ) | ||||||||||
Less: portion attributable to Chirano non-controlling interest
|
(4.9 | ) | (3.7 | ) | (10.3 | ) | (8.6 | ) | ||||||||
Attributable production cost of sales from continuing operations
|
$ | 460.0 | $ | 381.2 | $ | 907.2 | $ | 730.9 | ||||||||
Gold equivalent ounces sold from continuing operations
|
640,836 | 688,282 | 1,253,188 | 1,393,240 | ||||||||||||
Less: portion attributable to Kupol non-controlling interest(1)
|
- | (12,968 | ) | - | (63,803 | ) | ||||||||||
Less: portion attributable to Chirano non-controlling interest
|
(6,298 | ) | (5,656 | ) | (14,123 | ) | (12,610 | ) | ||||||||
Attributable gold equivalent ounces sold
|
634,538 | 669,658 | 1,239,065 | 1,316,827 | ||||||||||||
Consolidated production cost of sales from continuing operations per equivalent ounce sold
|
$ | 725 | $ | 565 | $ | 732 | $ | 546 | ||||||||
Attributable production cost of sales from continuing operations per equivalent ounce sold
|
$ | 725 | $ | 569 | $ | 732 | $ | 555 |
(1)
|
On April 27, 2011, Kinross acquired the remaining 25% of CMGC, and thereby obtained 100% ownership of Kupol. As such, the results up to April 27, 2011 reflect 75% and results thereafter reflect 100%.
|
p. 12 Kinross reports 2012 second quarter results | www.kinross.com |
![]() |
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5 |
Attributable Cost of Sales from Continuing Operations
Per Ounce Sold on a By-Product Basis |
||||||||||||||||
(in US$ millions)
|
Three months ended
|
Six months ended
|
||||||||||||||
June 30
|
June 30
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Production cost of sales from continuing operations(1)
|
$ | 464.9 | $ | 389.0 | $ | 917.5 | $ | 760.5 | ||||||||
Less: portion attributable to Kupol non-controlling interest(2)
|
- | (4.1 | ) | - | (21.0 | ) | ||||||||||
Less: portion attributable to Chirano non-controlling interest
|
(4.9 | ) | (3.7 | ) | (10.3 | ) | (8.6 | ) | ||||||||
Less: attributable silver sales
|
(72.0 | ) | (83.4 | ) | (158.2 | ) | (165.4 | ) | ||||||||
Attributable production cost of sales from continuing operations net of silver by-
product revenue |
$ | 388.0 | $ | 297.8 | $ | 749.0 | $ | 565.5 | ||||||||
Gold ounces sold
|
595,654 | 605,729 | 1,156,807 | 1,226,923 | ||||||||||||
Less: portion attributable to Kupol non-controlling interest(2)
|
- | (9,349 | ) | - | (49,299 | ) | ||||||||||
Less: portion attributable to Chirano non-controlling interest
|
(6,285 | ) | (5,625 | ) | (14,085 | ) | (12,552 | ) | ||||||||
Attributable gold ounces sold
|
589,369 | 590,755 | 1,142,722 | 1,165,072 | ||||||||||||
Attributable production cost of sales from continuing operations per ounce sold on
a by- product basis |
$ | 658 | $ | 504 | $ | 655 | $ | 485 | ||||||||
(1)
|
“Production cost of sales” is equivalent to “Total cost of sales” per the consolidated financial statements less depreciation, depletion and amortization and impairment charges.
|
(2)
|
On April 27, 2011, Kinross acquired the remaining 25% of CMGC, and thereby obtained 100% ownership of Kupol. As such, the results up to April 27, 2011 reflect 75% and results thereafter reflect 100%.
|
p. 13 Kinross reports 2012 second quarter results | www.kinross.com |
![]() |
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5 |
Three months ended June 30,
|
Gold equivalent ounces | ||||||||||||||||||||||||||||||||
Produced
|
Sold
|
Production cost of
sales(1) ($millions) |
Production cost of
sales(1)/oz |
||||||||||||||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||||||||||||
Fort Knox
|
71,952 | 77,727 | 71,978 | 77,269 | $ | 54.5 | $ | 52.4 | $ | 757 | $ | 678 | |||||||||||||||||||||
Round Mountain
|
53,147 | 47,151 | 52,433 | 46,941 | 34.7 | 34.7 | 662 | 739 | |||||||||||||||||||||||||
Kettle River - Buckhorn
|
35,985 | 46,237 | 40,354 | 45,442 | 20.5 | 18.3 | 508 | 403 | |||||||||||||||||||||||||
North America Total
|
161,084 | 171,115 | 164,765 | 169,652 | 109.7 | 105.4 | 666 | 621 | |||||||||||||||||||||||||
Kupol (100%)
|
149,214 | 184,066 | 156,716 | 199,773 | 73.2 | 69.1 | 467 | 346 | |||||||||||||||||||||||||
Russia Total
|
149,214 | 184,066 | 156,716 | 199,773 | 73.2 | 69.1 | 467 | 346 | |||||||||||||||||||||||||
Paracatu
|
118,419 | 99,893 | 118,389 | 95,773 | 108.2 | 77.1 | 914 | 805 | |||||||||||||||||||||||||
La Coipa
|
36,113 | 50,867 | 30,325 | 56,906 | 35.7 | 40.5 | 1,177 | 712 | |||||||||||||||||||||||||
Maricunga
|
60,841 | 70,105 | 61,367 | 63,407 | 44.5 | 26.2 | 725 | 413 | |||||||||||||||||||||||||
South America Total
|
215,373 | 220,865 | 210,081 | 216,086 | 188.4 | 143.8 | 897 | 665 | |||||||||||||||||||||||||
Tasiast
|
49,807 | 47,249 | 46,296 | 46,213 | 44.5 | 33.6 | 961 | 727 | |||||||||||||||||||||||||
Chirano (100%)
|
63,660 | 57,898 | 62,978 | 56,558 | 49.1 | 37.1 | 780 | 656 | |||||||||||||||||||||||||
West Africa Total
|
113,467 | 105,147 | 109,274 | 102,771 | 93.6 | 70.7 | 857 | 688 | |||||||||||||||||||||||||
Continuing operations
|
639,138 | 681,193 | 640,836 | 688,282 | 464.9 | 389.0 | 725 | 565 | |||||||||||||||||||||||||
Discontinued operations(3)
|
15,105 | 15,438 | 15,611 | 16,165 | 13.6 | 13.6 | 871 | 841 | |||||||||||||||||||||||||
Operations Total
|
654,243 | 696,631 | 656,447 | 704,447 | $ | 478.5 | $ | 402.6 | $ | 729 | $ | 572 | |||||||||||||||||||||
Less Kupol non-controlling interest (25%)(2)
|
- | (14,596 | ) | - | (12,968 | ) | - | (4.1 | ) | ||||||||||||||||||||||||
Less Chirano non-controlling interest (10%)
|
(6,366 | ) | (5,790 | ) | (6,298 | ) | (5,656 | ) | (4.9 | ) | (3.7 | ) | |||||||||||||||||||||
Attributable - Continuing operations
|
632,772 | 660,807 | 634,538 | 669,658 | $ | 460.0 | $ | 381.2 | $ | 725 | $ | 569 | |||||||||||||||||||||
Attributable Total
|
647,877 | 676,245 | 650,149 | 685,823 | $ | 473.6 | $ | 394.8 | $ | 728 | $ | 576 | |||||||||||||||||||||
(1) |
“Production cost of sales” is equivalent to “Total cost of sales” per the consolidated financial statements less depreciation, depletion and amortization and impairment charges.
|
(2) |
On April 27, 2011, Kinross acquired the remaining 25% of CMGC, and thereby obtained 100% ownership of Kupol. As such, the results up to April 27, 2011 reflect 75% and results thereafter reflect 100%.
|
(3) |
On June 28, 2012, the Company completed the sale of its 50% interest in the Crixás gold mine.
|
p. 14 Kinross reports 2012 second quarter results | www.kinross.com |
Six months ended June 30,
|
Gold equivalent ounces |
Production cost of
sales(1) ($millions) |
Production cost of
sales(1)/oz |
||||||||||||||||||||||||||||||
Produced
|
Sold
|
||||||||||||||||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||||||||||||
Fort Knox
|
133,668 | 142,774 | 132,343 | 141,935 | $ | 106.5 | $ | 93.0 | $ | 805 | $ | 655 | |||||||||||||||||||||
Round Mountain
|
97,905 | 89,272 | 95,984 | 88,496 | 71.9 | 67.6 | 749 | 764 | |||||||||||||||||||||||||
Kettle River - Buckhorn
|
78,603 | 92,089 | 79,675 | 93,071 | 39.5 | 36.2 | 496 | 389 | |||||||||||||||||||||||||
North America Total
|
310,176 | 324,135 | 308,002 | 323,502 | 217.9 | 196.8 | 707 | 608 | |||||||||||||||||||||||||
Kupol (100%)
|
276,184 | 389,741 | 283,451 | 403,111 | 134.4 | 134.6 | 474 | 334 | |||||||||||||||||||||||||
Russia Total
|
276,184 | 389,741 | 283,451 | 403,111 | 134.4 | 134.6 | 474 | 334 | |||||||||||||||||||||||||
Paracatu
|
223,037 | 200,320 | 228,916 | 203,730 | 213.6 | 151.6 | 933 | 744 | |||||||||||||||||||||||||
La Coipa
|
73,853 | 105,313 | 74,037 | 119,837 | 80.2 | 78.0 | 1,083 | 651 | |||||||||||||||||||||||||
Maricunga
|
124,830 | 128,845 | 130,430 | 119,250 | 88.2 | 53.1 | 676 | 445 | |||||||||||||||||||||||||
South America Total
|
421,720 | 434,478 | 433,383 | 442,817 | 382.0 | 282.7 | 881 | 638 | |||||||||||||||||||||||||
Tasiast
|
87,441 | 98,570 | 87,123 | 97,706 | 80.4 | 60.2 | 923 | 616 | |||||||||||||||||||||||||
Chirano (100%)
|
139,566 | 119,935 | 141,229 | 126,104 | 102.8 | 86.2 | 728 | 684 | |||||||||||||||||||||||||
West Africa Total
|
227,007 | 218,505 | 228,352 | 223,810 | 183.2 | 146.4 | 802 | 654 | |||||||||||||||||||||||||
Continuing operations
|
1,235,087 | 1,366,859 | 1,253,188 | 1,393,240 | 917.5 | 760.5 | 732 | 546 | |||||||||||||||||||||||||
Discontinued operations(3)
|
30,994 | 30,251 | 32,764 | 29,784 | 27.4 | 23.7 | 836 | 796 | |||||||||||||||||||||||||
Operations Total
|
1,266,081 | 1,397,110 | 1,285,952 | 1,423,024 | $ | 944.9 | $ | 784.2 | $ | 735 | $ | 551 | |||||||||||||||||||||
Less Kupol non-controlling interest (25%)(2)
|
- | (66,015 | ) | - | (63,803 | ) | - | (21.0 | ) | ||||||||||||||||||||||||
Less Chirano non-controlling interest (10%)
|
(13,957 | ) | (11,993 | ) | (14,123 | ) | (12,610 | ) | (10.3 | ) | (8.6 | ) | |||||||||||||||||||||
Attributable - Continuing operations
|
1,221,130 | 1,288,851 | 1,239,065 | 1,316,827 | $ | 907.2 | $ | 730.9 | $ | 732 | $ | 555 | |||||||||||||||||||||
Attributable Total
|
1,252,124 | 1,319,102 | 1,271,829 | 1,346,611 | $ | 934.6 | $ | 754.6 | $ | 735 | $ | 560 | |||||||||||||||||||||
(1) |
“Production cost of sales” is equivalent to “Total cost of sales” per the consolidated financial statements less depreciation, depletion and amortization and impairment charges.
|
(2) |
On April 27, 2011, Kinross acquired the remaining 25% of CMGC, and thereby obtained 100% ownership of Kupol. As such, the results up to April 27, 2011 reflect 75% and results thereafter reflect 100%.
|
(3) |
On June 28, 2012, the Company completed the sale of its 50% interest in the Crixás gold mine.
|
p. 15 Kinross reports 2012 second quarter results | www.kinross.com |
![]() |
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5 |
As at
|
|||||||||
June 30,
|
December 31,
|
||||||||
2012
|
2011
|
||||||||
Assets
|
|||||||||
Current assets
|
|||||||||
Cash and cash equivalents
|
$ | 1,340.3 | $ | 1,766.0 | |||||
Restricted cash
|
54.8 | 62.1 | |||||||
Short-term investments
|
- | 1.3 | |||||||
Accounts receivable and other assets
|
383.5 | 309.4 | |||||||
Inventories
|
1,015.4 | 976.2 | |||||||
Unrealized fair value of derivative assets
|
2.2 | 2.8 | |||||||
2,796.2 | 3,117.8 | ||||||||
Non-current assets
|
|||||||||
Property, plant and equipment
|
9,638.2 | 8,959.4 | |||||||
Goodwill
|
3,382.3 | 3,420.3 | |||||||
Long-term investments
|
60.5 | 79.4 | |||||||
Investments in associates
|
511.1 | 502.5 | |||||||
Unrealized fair value of derivative assets
|
4.0 | 1.1 | |||||||
Deferred charges and other long-term assets
|
446.6 | 406.4 | |||||||
Deferred tax assets
|
35.5 | 21.9 | |||||||
Total assets
|
$ | 16,874.4 | $ | 16,508.8 | |||||
Liabilities
|
|||||||||
Current liabilities
|
|||||||||
Accounts payable and accrued liabilities
|
$ | 596.0 | $ | 575.3 | |||||
Current tax payable
|
142.0 | 82.9 | |||||||
Current portion of long-term debt
|
475.9 | 32.7 | |||||||
Current portion of provisions
|
35.3 | 38.1 | |||||||
Current portion of unrealized fair value of derivative liabilities
|
51.5 | 66.7 | |||||||
1,300.7 | 795.7 | ||||||||
Non-current liabilities
|
|||||||||
Long-term debt
|
1,147.7 | 1,600.4 | |||||||
Provisions
|
592.9 | 597.1 | |||||||
Unrealized fair value of derivative liabilities
|
27.9 | 32.7 | |||||||
Other long-term liabilities
|
130.3 | 133.1 | |||||||
Deferred tax liabilities
|
960.8 | 879.1 | |||||||
Total liabilities
|
4,160.3 | 4,038.1 | |||||||
Equity
|
|||||||||
Common shareholders’ equity
|
|||||||||
Common share capital and common share purchase warrants
|
$ | 14,680.6 | $ | 14,656.6 | |||||
Contributed surplus
|
79.8 | 81.4 | |||||||
Accumulated deficit
|
(2,081.7 | ) | (2,249.9 | ) | |||||
Accumulated other comprehensive loss
|
(36.3 | ) | (97.7 | ) | |||||
Total common shareholders’ equity
|
12,642.4 | 12,390.4 | |||||||
Non-controlling interest
|
71.7 | 80.3 | |||||||
Total equity
|
12,714.1 | 12,470.7 | |||||||
Total liabilities and equity
|
$ | 16,874.4 | $ | 16,508.8 | |||||
Common shares
|
|||||||||
Authorized
|
Unlimited
|
Unlimited
|
|||||||
Issued and outstanding
|
1,139,280,972 | 1,137,732,344 |
p. 16 Kinross reports 2012 second quarter results | www.kinross.com |
![]() |
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5 |
Three months ended
|
Six months ended
|
||||||||||||||||
June 30,
|
June 30,
|
||||||||||||||||
2012
|
2011
|
2012
|
2011
|
||||||||||||||
Revenue
|
|||||||||||||||||
Metal sales
|
$ | 1,006.7 | $ | 963.6 | $ | 2,014.8 | $ | 1,881.7 | |||||||||
Cost of sales
|
|||||||||||||||||
Production cost of sales
|
464.9 | 389.0 | 917.5 | 760.5 | |||||||||||||
Depreciation, depletion and amortization
|
157.0 | 146.3 | 299.7 | 297.0 | |||||||||||||
Total cost of sales
|
621.9 | 535.3 | 1,217.2 | 1,057.5 | |||||||||||||
Gross profit
|
384.8 | 428.3 | 797.6 | 824.2 | |||||||||||||
Other operating costs
|
10.8 | 9.1 | 22.3 | 13.0 | |||||||||||||
Exploration and business development
|
71.2 | 26.3 | 129.9 | 49.9 | |||||||||||||
General and administrative
|
44.0 | 40.1 | 83.7 | 83.4 | |||||||||||||
Operating earnings
|
258.8 | 352.8 | 561.7 | 677.9 | |||||||||||||
Other income (expense) - net
|
(28.5 | ) | 17.0 | (16.2 | ) | 105.1 | |||||||||||
Equity in gains (losses) of associates
|
(1.7 | ) | 0.2 | (2.9 | ) | - | |||||||||||
Finance income
|
1.1 | 1.6 | 2.1 | 3.7 | |||||||||||||
Finance expense
|
(9.0 | ) | (16.0 | ) | (18.8 | ) | (32.3 | ) | |||||||||
Earnings before taxes
|
220.7 | 355.6 | 525.9 | 754.4 | |||||||||||||
Income tax expense - net
|
(104.7 | ) | (97.5 | ) | (319.1 | ) | (209.1 | ) | |||||||||
Earnings from continuing operations after tax
|
116.0 | 258.1 | 206.8 | 545.3 | |||||||||||||
Earnings from discontinued operations after tax
|
37.8 | 3.1 | 43.9 | 7.0 | |||||||||||||
Net earnings
|
$ | 153.8 | $ | 261.2 | $ | 250.7 | $ | 552.3 | |||||||||
Net earnings from continuing operations attributed to:
|
|||||||||||||||||
Non-controlling interest
|
$ | 0.2 | $ | 13.8 | $ | (8.6 | ) | $ | 54.8 | ||||||||
Common shareholders
|
$ | 115.8 | $ | 244.3 | $ | 215.4 | $ | 490.5 | |||||||||
Net earnings attributed to:
|
|||||||||||||||||
Non-controlling interest
|
$ | 0.2 | $ | 13.8 | $ | (8.6 | ) | $ | 54.8 | ||||||||
Common shareholders
|
$ | 153.6 | $ | 247.4 | $ | 259.3 | $ | 497.5 | |||||||||
Earnings per share from continuing operations attributable to common shareholders
|
|||||||||||||||||
Basic
|
$ | 0.10 | $ | 0.22 | $ | 0.19 | $ | 0.43 | |||||||||
Diluted
|
$ | 0.10 | $ | 0.21 | $ | 0.19 | $ | 0.43 | |||||||||
Net earnings per share attributable to common shareholders
|
|||||||||||||||||
Basic
|
$ | 0.13 | $ | 0.22 | $ | 0.23 | $ | 0.44 | |||||||||
Diluted
|
$ | 0.13 | $ | 0.22 | $ | 0.23 | $ | 0.44 | |||||||||
Weighted average number of common shares outstanding (millions)
|
|||||||||||||||||
Basic
|
1,138.1 | 1,135.8 | 1,138.5 | 1,134.9 | |||||||||||||
Diluted
|
1,144.3 | 1,141.4 | 1,144.4 | 1,140.7 |
p. 17 Kinross reports 2012 second quarter results | www.kinross.com |
![]() |
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5 |
Three months ended
|
Six months ended
|
||||||||||||||||
June 30,
|
June 30,
|
June 30,
|
June 30,
|
||||||||||||||
2012
|
2011
|
2012
|
2011
|
||||||||||||||
Net inflow (outflow) of cash related to the following activities:
|
Note 4
|
Note 4
|
|||||||||||||||
Operating:
|
|||||||||||||||||
Net earnings from continuing operations
|
$ | 116.0 | $ | 258.1 | $ | 206.8 | $ | 545.3 | |||||||||
Adjustments to reconcile net earnings from continuing operations to net cash provided from (used in) operating activities:
|
|||||||||||||||||
Depreciation, depletion and amortization
|
157.0 | 146.3 | 299.7 | 297.0 | |||||||||||||
(Gains) losses on acquisition/disposition of assets and investments - net
|
0.5 | (0.6 | ) | 0.5 | (31.4 | ) | |||||||||||
Equity in (gains) losses of associates
|
1.7 | (0.2 | ) | 2.9 | - | ||||||||||||
Non-hedge derivative gains - net
|
(3.4 | ) | (7.1 | ) | (13.5 | ) | (48.1 | ) | |||||||||
Settlement of derivative instruments
|
20.3 | - | 48.7 | - | |||||||||||||
Share-based compensation expense
|
9.4 | 10.2 | 18.9 | 18.4 | |||||||||||||
Accretion expense
|
5.3 | 13.8 | 10.7 | 26.5 | |||||||||||||
Deferred tax (recovery) expense
|
(14.0 | ) | (19.0 | ) | 83.5 | (12.1 | ) | ||||||||||
Foreign exchange (gains) losses and other
|
(2.0 | ) | 3.3 | (18.3 | ) | (0.1 | ) | ||||||||||
Changes in operating assets and liabilities:
|
|||||||||||||||||
Accounts receivable and other assets
|
(53.0 | ) | (131.8 | ) | (85.4 | ) | (167.9 | ) | |||||||||
Inventories
|
(50.2 | ) | 11.7 | (48.6 | ) | (2.5 | ) | ||||||||||
Accounts payable and accrued liabilities, excluding interest and taxes
|
22.7 | 181.6 | 140.1 | 245.0 | |||||||||||||
Cash flow provided from operating activities
|
210.3 | 466.3 | 646.0 | 870.1 | |||||||||||||
Income taxes paid
|
(132.9 | ) | (119.7 | ) | (192.1 | ) | (182.9 | ) | |||||||||
Net cash flow of continuing operations provided from operating activities
|
77.4 | 346.6 | 453.9 | 687.2 | |||||||||||||
Net cash flow of discontinued operations provided from operating activities
|
9.6 | 14.7 | 14.8 | 9.2 | |||||||||||||
Investing:
|
|||||||||||||||||
Additions to property, plant and equipment
|
(431.2 | ) | (408.8 | ) | (961.4 | ) | (661.7 | ) | |||||||||
Net proceeds from the sale of long-term investments and other assets
|
- | - | 0.2 | 101.1 | |||||||||||||
Additions to long-term investments and other assets
|
- | (64.7 | ) | (12.7 | ) | (76.5 | ) | ||||||||||
Net proceeds from the sale of property, plant and equipment
|
0.2 | 0.7 | 0.2 | 0.8 | |||||||||||||
Disposals (additions) of short-term investments
|
0.2 | (1.3 | ) | 1.3 | (1.3 | ) | |||||||||||
Increase (decrease) in restricted cash
|
0.4 | (3.9 | ) | 1.3 | (3.9 | ) | |||||||||||
Interest received
|
1.2 | 0.7 | 2.1 | 1.9 | |||||||||||||
Other
|
0.4 | (2.7 | ) | 0.1 | (3.0 | ) | |||||||||||
Net cash flow of continuing operations used in investing activities
|
(428.8 | ) | (480.0 | ) | (968.9 | ) | (642.6 | ) | |||||||||
Net cash flow of discontinued operations provided from (used in) investing activities
|
204.4 | (14.1 | ) | 198.9 | (16.7 | ) | |||||||||||
Financing:
|
|||||||||||||||||
Issuance of common shares on exercise of options and warrants
|
1.6 | 6.0 | 3.5 | 14.9 | |||||||||||||
Acquisition of CMGC 25% non-controlling interest
|
- | (335.4 | ) | - | (335.4 | ) | |||||||||||
Proceeds from issuance of debt
|
168.9 | 99.6 | 296.3 | 192.6 | |||||||||||||
Repayment of debt
|
(170.7 | ) | (111.1 | ) | (322.5 | ) | (215.6 | ) | |||||||||
Interest paid
|
(1.6 | ) | (0.5 | ) | (4.8 | ) | (5.1 | ) | |||||||||
Dividends paid to common shareholders
|
- | - | (91.1 | ) | (56.8 | ) | |||||||||||
Settlement of derivative instruments
|
- | (9.4 | ) | - | (19.7 | ) | |||||||||||
Other
|
(0.1 | ) | - | (0.8 | ) | (5.7 | ) | ||||||||||
Net cash flow of continuing operations used in financing activities
|
(1.9 | ) | (350.8 | ) | (119.4 | ) | (430.8 | ) | |||||||||
Net cash flow of discontinued operations used in financing activities
|
(0.3 | ) | (0.7 | ) | (0.6 | ) | (1.4 | ) | |||||||||
Effect of exchange rate changes on cash and cash equivalents of continuing operations
|
(7.0 | ) | 3.8 | (4.4 | ) | 8.8 | |||||||||||
Decrease in cash and cash equivalents
|
(146.6 | ) | (480.5 | ) | (425.7 | ) | (386.3 | ) | |||||||||
Cash and cash equivalents, beginning of period
|
1,486.9 | 1,560.8 | 1,766.0 | 1,466.6 | |||||||||||||
Cash and cash equivalents, end of period
|
$ | 1,340.3 | $ | 1,080.3 | $ | 1,340.3 | $ | 1,080.3 | |||||||||
p. 18 Kinross reports 2012 second quarter results | www.kinross.com |
![]() |
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5 |
Mine
|
Period
|
Ownership
|
Ore
Processed (1)
|
Grade
|
Recovery (2)
|
Gold Eq
Production (11) |
Gold Eq Sales
(11) |
Production
costs of sales(12) |
Production
cost of sales(12)/oz |
Cap Ex
|
DD&A
|
||||||||||||||||||||||||||||||||||
(%)
|
(‘000 tonnes)
|
(g/t) |
(%)
|
(ounces)
|
(ounces)
|
($ millions)
|
($/ounce)
|
($ millions)
|
($ millions)
|
||||||||||||||||||||||||||||||||||||
North America
|
Fort Knox(3)
|
Q2 2012 | 100 | 13,084 | 0.51 | 85 | % | 71,952 | 71,978 | $ | 54.5 | $ | 757 | $ | 38.4 | $ | 11.3 | ||||||||||||||||||||||||||||
Q1 2012 | 100 | 4,156 | 0.46 | 84 | % | 61,716 | 60,365 | 52.0 | 861 | 24.8 | 9.1 | ||||||||||||||||||||||||||||||||||
Q4 2011 | 100 | 8,197 | 0.51 | 79 | % | 70,759 | 69,973 | 52.3 | 747 | 28.4 | 10.0 | ||||||||||||||||||||||||||||||||||
Q3 2011 | 100 | 9,415 | 0.49 | 77 | % | 76,261 | 75,611 | 53.8 | 712 | 26.8 | 15.4 | ||||||||||||||||||||||||||||||||||
Q2 2011 | 100 | 10,000 | 0.59 | 79 | % | 77,727 | 77,269 | 52.4 | 678 | 26.2 | 17.2 | ||||||||||||||||||||||||||||||||||
Round Mountain
(4) |
Q2 2012 | 50 | 4,674 | 0.82 | 74 | % | 53,147 | 52,433 | 34.7 | 662 | 19.3 | 8.4 | |||||||||||||||||||||||||||||||||
Q1 2012 | 50 | 5,121 | 0.92 | 78 | % | 44,758 | 43,551 | 37.3 | 856 | 13.6 | 7.8 | ||||||||||||||||||||||||||||||||||
Q4 2011 | 50 | 6,317 | 0.98 | 81 | % | 43,584 | 44,231 | 26.4 | 597 | 22.2 | 6.1 | ||||||||||||||||||||||||||||||||||
Q3 2011 | 50 | 6,989 | 0.95 | 74 | % | 54,588 | 52,658 | 35.2 | 668 | 9.6 | 8.8 | ||||||||||||||||||||||||||||||||||
Q2 2011 | 50 | 6,960 | 0.99 | 76 | % | 47,151 | 46,941 | 34.7 | 739 | 7.9 | 7.2 | ||||||||||||||||||||||||||||||||||
Kettle River
|
Q2 2012 | 100 | 111 | 11.52 | 92 | % | 35,985 | 40,354 | 20.5 | 508 | 3.2 | 18.2 | |||||||||||||||||||||||||||||||||
Q1 2012 | 100 | 112 | 12.81 | 90 | % | 42,618 | 39,321 | 18.9 | 481 | 0.5 | 18.9 | ||||||||||||||||||||||||||||||||||
Q4 2011 | 100 | 123 | 12.24 | 89 | % | 42,003 | 43,089 | 19.2 | 446 | 3.0 | 21.6 | ||||||||||||||||||||||||||||||||||
Q3 2011 | 100 | 110 | 13.06 | 91 | % | 41,200 | 42,109 | 19.5 | 463 | 3.9 | 17.5 | ||||||||||||||||||||||||||||||||||
Q2 2011 | 100 | 104 | 14.77 | 89 | % | 46,237 | 45,442 | 18.3 | 403 | 3.4 | 20.0 | ||||||||||||||||||||||||||||||||||
Russia
|
Kupol - 100%(6)
|
Q2 2012 | 100 | 329 | 12.23 | 93 | % | 149,214 | 156,716 | 73.2 | 467 | 12.3 | 29.4 | ||||||||||||||||||||||||||||||||
Q1 2012 | 100 | 309 | 11.76 | 93 | % | 126,970 | 126,735 | 61.2 | 483 | 10.4 | 23.6 | ||||||||||||||||||||||||||||||||||
Q4 2011 | 100 | 325 | 10.81 | 93 | % | 138,410 | 113,936 | 54.8 | 481 | 18.5 | 21.3 | ||||||||||||||||||||||||||||||||||
Q3 2011 | 100 | 303 | 10.39 | 93 | % | 124,912 | 138,278 | 58.4 | 422 | 8.0 | 25.7 | ||||||||||||||||||||||||||||||||||
Q2 2011 | 100 | 305 | 15.88 | 94 | % | 184,066 | 199,773 | 69.1 | 346 | 16.1 | 37.0 | ||||||||||||||||||||||||||||||||||
Kupol (6)(7)(8)
|
Q2 2012 | 100 | 329 | 12.23 | 93 | % | 149,214 | 156,716 | 73.2 | 467 | 12.3 | 29.4 | |||||||||||||||||||||||||||||||||
Q1 2012 | 100 | 309 | 11.76 | 93 | % | 126,970 | 126,735 | 61.2 | 483 | 10.4 | 23.6 | ||||||||||||||||||||||||||||||||||
Q4 2011 | 100 | 325 | 10.81 | 93 | % | 138,410 | 113,936 | 54.8 | 481 | 18.5 | 21.3 | ||||||||||||||||||||||||||||||||||
Q3 2011 | 100 | 303 | 10.39 | 93 | % | 124,912 | 138,278 | 58.4 | 422 | 8.0 | 25.7 | ||||||||||||||||||||||||||||||||||
Q2 2011 | 100 | 305 | 15.88 | 94 | % | 169,470 | 186,805 | 65.0 | 348 | 15.2 | 35.4 | ||||||||||||||||||||||||||||||||||
South America
|
Paracatu
|
Q2 2012 | 100 | 12,988 | 0.38 | 74 | % | 118,419 | 118,389 | 108.2 | 914 | 67.2 | 19.2 | ||||||||||||||||||||||||||||||||
Q1 2012 | 100 | 12,910 | 0.35 | 72 | % | 104,618 | 110,527 | 105.4 | 954 | 74.6 | 14.6 | ||||||||||||||||||||||||||||||||||
Q4 2011 | 100 | 11,578 | 0.42 | 74 | % | 117,977 | 112,048 | 82.6 | 737 | 131.6 | 15.1 | ||||||||||||||||||||||||||||||||||
Q3 2011 | 100 | 13,202 | 0.43 | 74 | % | 135,099 | 133,827 | 89.7 | 670 | 105.9 | 16.9 | ||||||||||||||||||||||||||||||||||
Q2 2011 | 100 | 10,014 | 0.41 | 76 | % | 99,893 | 95,773 | 77.1 | 805 | 65.2 | 14.3 | ||||||||||||||||||||||||||||||||||
Crixás (13)
|
Q2 2012 | 50 | 302 | 3.43 | 91 | % | 15,105 | 15,611 | 13.6 | 871 | 3.6 | 4.9 | |||||||||||||||||||||||||||||||||
Q1 2012 | 50 | 282 | 3.82 | 91 | % | 15,889 | 17,153 | 13.8 | 805 | 3.8 | 4.0 | ||||||||||||||||||||||||||||||||||
Q4 2011 | 50 | 302 | 4.58 | 93 | % | 20,781 | 17,379 | 11.3 | 650 | 7.1 | 3.6 | ||||||||||||||||||||||||||||||||||
Q3 2011 | 50 | 300 | 3.49 | 92 | % | 15,551 | 16,594 | 15.3 | 922 | 5.4 | 3.7 | ||||||||||||||||||||||||||||||||||
Q2 2011 | 50 | 312 | 3.35 | 93 | % | 15,438 | 16,165 | 13.6 | 841 | 6.9 | 3.6 | ||||||||||||||||||||||||||||||||||
La Coipa (5)
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Q2 2012 | 100 | 1,256 | 0.72 | 77 | % | 36,113 | 30,325 | 35.7 | 1,177 | 22.2 | 6.2 | |||||||||||||||||||||||||||||||||
Q1 2012 | 100 | 1,467 | 0.56 | 78 | % | 37,740 | 43,712 | 44.5 | 1,018 | 15.3 | 4.5 | ||||||||||||||||||||||||||||||||||
Q4 2011 | 100 | 1,060 | 0.58 | 85 | % | 34,435 | 35,629 | 35.4 | 994 | 23.2 | 3.3 | ||||||||||||||||||||||||||||||||||
Q3 2011 | 100 | 1,011 | 0.70 | 76 | % | 38,539 | 35,566 | 32.1 | 903 | 17.4 | 6.6 | ||||||||||||||||||||||||||||||||||
Q2 2011 | 100 | 1,131 | 0.72 | 81 | % | 50,867 | 56,906 | 40.5 | 712 | 15.3 | 8.1 | ||||||||||||||||||||||||||||||||||
Maricunga
|
Q2 2012 | 100 | 3,487 | 0.65 |
nm
|
60,841 | 61,367 | 44.5 | 725 | 50.7 | 5.5 | ||||||||||||||||||||||||||||||||||
Q1 2012 | 100 | 4,014 | 0.66 |
nm
|
63,989 | 69,063 | 43.7 | 633 | 35.6 | 6.3 | |||||||||||||||||||||||||||||||||||
Q4 2011 | 100 | 3,960 | 0.76 |
nm
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54,281 | 52,987 | 22.2 | 419 | 34.0 | 4.8 | |||||||||||||||||||||||||||||||||||
Q3 2011 | 100 | 3,284 | 0.80 |
nm
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53,123 | 58,591 | 30.2 | 515 | 29.9 | 5.5 | |||||||||||||||||||||||||||||||||||
Q2 2011 | 100 | 4,023 | 0.86 |
nm
|
70,105 | 63,407 | 26.2 | 413 | 44.3 | 7.1 | |||||||||||||||||||||||||||||||||||
West Africa
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Tasiast(10)
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Q2 2012 | 100 | 5,133 | 1.74 | 86 | % | 49,807 | 46,296 | 44.5 | 961 | 124.3 | 19.9 | ||||||||||||||||||||||||||||||||
Q1 2012 | 100 | 1,597 | 1.71 | 89 | % | 37,634 | 40,827 | 35.9 | 879 | 260.0 | 13.8 | ||||||||||||||||||||||||||||||||||
Q4 2011 | 100 | 4,581 | 2.33 | 88 | % | 54,874 | 50,800 | 37.2 | 732 | 204.6 | 14.8 | ||||||||||||||||||||||||||||||||||
Q3 2011 | 100 | 2,679 | 2.05 | 87 | % | 47,175 | 48,455 | 40.8 | 842 | 88.3 | 18.4 | ||||||||||||||||||||||||||||||||||
Q2 2011 | 100 | 1,990 | 1.60 | 91 | % | 47,249 | 46,213 | 33.6 | 727 | 92.1 | 14.5 | ||||||||||||||||||||||||||||||||||
Chirano - 100%
|
Q2 2012 | 90 | 802 | 2.70 | 92 | % | 63,660 | 62,978 | 49.1 | 780 | 20.6 | 36.9 | |||||||||||||||||||||||||||||||||
Q1 2012 | 90 | 854 | 2.97 | 93 | % | 75,906 | 78,251 | 53.7 | 686 | 22.5 | 41.8 | ||||||||||||||||||||||||||||||||||
Q4 2011 | 90 | 917 | 2.70 | 93 | % | 73,539 | 67,876 | 45.3 | 667 | 28.6 | 28.4 | ||||||||||||||||||||||||||||||||||
Q3 2011 | 90 | 949 | 2.45 | 91 | % | 68,372 | 68,697 | 50.5 | 735 | 19.5 | 23.6 | ||||||||||||||||||||||||||||||||||
Q2 2011 | 90 | 858 | 2.28 | 91 | % | 57,898 | 56,558 | 37.1 | 656 | 29.0 | 19.3 | ||||||||||||||||||||||||||||||||||
Chirano (9)
|
Q2 2012 | 90 | 802 | 2.70 | 92 | % | 57,294 | 56,680 | 44.2 | 780 | 18.5 | 33.2 | |||||||||||||||||||||||||||||||||
Q1 2012 | 90 | 854 | 2.97 | 93 | % | 68,315 | 70,426 | 48.3 | 686 | 20.3 | 37.6 | ||||||||||||||||||||||||||||||||||
Q4 2011 | 90 | 917 | 2.70 | 93 | % | 66,185 | 61,086 | 40.8 | 667 | 25.7 | 25.6 | ||||||||||||||||||||||||||||||||||
Q3 2011 | 90 | 949 | 2.45 | 91 | % | 61,535 | 61,828 | 45.5 | 735 | 17.6 | 21.2 | ||||||||||||||||||||||||||||||||||
Q2 2011 | 90 | 858 | 2.28 | 91 | % | 52,108 | 50,902 | 33.4 | 656 | 26.1 | 17.4 |
p. 19 Kinross reports 2012 second quarter results | www.kinross.com |
(1)
|
Ore processed is to 100%, production and costs are to Kinross’ account.
|
(2)
|
Due to the nature of heap leach operations, recovery rates at Maricunga cannot be accurately measured on a quarterly basis. Recovery rates at Fort Knox, Round Mountain and Tasiast represent mill recovery only.
|
(3)
|
Includes 9,632,000 tonnes placed on the heap leach pad during the second quarter of 2012, and 10,547,000 tonnes for the first six months of 2012. Grade and recovery represent mill processing only. Ore placed on the heap leach pad had an average grade of 0.33 grams per tonne for both the three and six months ended June 30, 2012.
|
(4)
|
Includes 3,752,000 tonnes placed on the heap leach pad during the second quarter of 2012, and 8,062,000 tonnes for the first six months of 2012. The presentation has been amended to reflect mill grade and recovery only, with heap leach grade disclosed separately, rather than a blended rate for mill and heap leach grades. Ore placed on the heap leach pad had an average grade of 0.43 grams per tonne for the second quarter of 2012, and 0.45 tonnes for the first six months of 2012. In addition, the presentation has been amended to exclude tonnes transferred between heap leach pads.
|
(5)
|
La Coipa silver grade and recovery were as follows: Q2 (2012) 42.04 g/t, 46%; Q1 (2012) 38.78 g/t, 51%; Q4 (2011) 56.82 g/t, 54%; Q3 (2011) 65.00 g/t, 43%; Q2 (2011) 58.85 g/t, 55%
|
(6)
|
The Kupol segment excludes Dvoinoye capital expenditures.
|
(7)
|
Kupol silver grade and recovery were as follows: Q2 (2012) 187.49 g/t, 87%; Q1 (2012) 171.8 g/t, 85 %; Q4 (2011) 170.52 g/t,85 %; Q3 (2011) 159.03 g/t, 82%; Q2 (2011) 215.21 g/t, 84%
|
(8)
|
On April 27, 2011, Kinross acquired the remaining 25% of CMGC, and thereby obtained 100% ownership of Kupol. As such, the results up to April 27, 2011 reflect 75% and results thereafter reflect 100%.
|
(9)
|
Includes Kinross’ share of Chirano at 90%.
|
(10)
|
Includes 4,477,000 tonnes placed on the heap leach pad during the second quarter of 2012, and 5,480,000 tonnes for the first six months of 2012. Grade and recovery represent mill processing only. Ore placed on the heap leach pad had an average grade of 0.47 grams per tonne for the second quarter of 2012, and 0.49 grams per tonne for the first six months of 2012.
|
(11)
|
Gold equivalent ounces include silver ounces produced and sold converted to a gold equivalent based on the ratio of the average spot market prices for the commodities for each period. The ratios for the quarters presented are as follows: Q2 2012: 54.77:1, Q1 2012: 51.82:1, Q4 2011: 52.64:1, Q3 2011: 43.87:1, Q2 2011: 39.67:1.
|
(12)
|
“Production cost of sales” is equivalent to “Total cost of sales” per the consolidated financial statements less depreciation, depletion and amortization and impairment charges.
|
(13)
|
On June 28, 2012, the Company completed the sale of its 50% interest in the Crixás gold mine.
|
p. 20 Kinross reports 2012 second quarter results | www.kinross.com |
![]() |
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5 |
Kinross declares dividend |
![]() |
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5
|
1.
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Name and Address of Company
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Kinross Gold Corporation (“Kinross”)
|
|
25 York Street, 17th Floor
|
|
Toronto, Ontario
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M5J 2V5
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|
2.
|
Date of Material Change
|
August 1, 2012
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|
3.
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News Release
|
A news release with respect to the material change referred to in this material change report was issued by Kinross on August 1, 2012 through the facilities of Marketwire and filed on the System for Electronic Document Analysis and Retrieval.
|
|
4.
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Summary of Material Change
|
On August 1, 2012 Kinross announced that its Board of Directors had appointed J. Paul Rollinson as Chief Executive Officer and a Director of Kinross.
|
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5.
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Full Description of Material Change
|
On August 1, 2012 Kinross announced that its Board of Directors had appointed J. Paul Rollinson (formerly Executive Vice-President, Corporate Development) as Chief Executive Officer of Kinross, replacing Tye W. Burt. Mr. Rollinson has also replaced Mr. Burt on the Kinross Board of Directors.
|
|
6.
|
Reliance on Subsection 7.1(2) of National Instrument 51-102
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Not applicable.
|
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7.
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Omitted Information
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No significant facts in this report remain confidential, and no information has been omitted from this report.
|
|
8.
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Executive Officer
|
.
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For further information, please contact Shelley M. Riley, Vice President, Office Services and Corporate Secretary, at (416) 365-5198
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9.
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Date of Report
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August 8, 2012
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