The Prospector News

Kinross reports 2021 first-quarter results

You have opened a direct link to the current edition PDF

Open PDF Close
Uncategorized

Share this news article

Kinross reports 2021 first-quarter results

 

 

 

 

 

Company on track to meet annual guidance

Three largest producing mines – Paracatu, Kupol and Tasiast – deliver lowest costs in portfolio

 

Kinross Gold Corporation (TSX: K) (NYSE: KGC) announced its results for the first-quarter ended March 31, 2021.

(This news release contains forward-looking information about expected future events and financial and operating performance of the Company. We refer to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located on pages 20-22. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.)

 

 

2021 first-quarter highlights:  

    

  2021 first-quarter results 2021 guidance
(+/- 5%)
Gold equivalent production1
(ounces)
558,777 2.4 million
Production cost of sales1, 2
($ per Au eq. oz.)
$756 $790
All-in sustaining cost1, 2
($ per Au eq. oz.)
$975 $1,025
Capital expenditures $204.2 million $900 million
  • The Company is on track to meet 2021 annual guidance.
  • Production1 of 558,777 attributable gold equivalent ounces (Au eq. oz.).
  • Production cost of sales1,2 was $756 per Au eq. oz. and largely in line with Q1 2020, while all-in sustaining cost1,2  decreased to $975 per Au eq. oz. sold year-over-year.
  • Attributable margins3 increased 25% to $1,031 per Au eq. oz. sold compared with Q1 2020, and outpaced the rise in average realized gold price2.
  • Adjusted operating cash flow2 of $399.6 million, operating cash flow of $279.8 million and free cash flow2 of $75.6 million.
  • Reported net earnings4 increased 22% to $149.5 million, or $0.12 per share, with adjusted net earnings2 increasing 51% to $192.8 million, or $0.15 per share, compared with Q1 2020.
  • Cash and cash equivalents of $1,056.1 million, and total liquidity of $2.6 billion at March 31, 2021.
  • Kinross’ Board of Directors declared a quarterly dividend of $0.03 per common share payable on June 17, 2021 to shareholders of record at the close of business on June 3, 2021.

 

Operations and sustainability highlights:

  • Three largest producing mines – ParacatuKupol and Tasiast – accounted for 60% of production and were the lowest cost mines in the portfolio.
  • The Tasiast 24k and La Coipa Restart projects advanced well and both remain on schedule, with studies at UdinskManh Choh (formerly known as “Peak”) and Lobo-Marte all proceeding as planned.
  • Kinross commits to reach net-zero greenhouse gas emissions by 2050 and expects to finalize a strategy to support this goal by year-end, including identifying tangible GHG reduction targets for 2030.

 

CEO Commentary:

 

  1. Paul Rollinson, President and CEO, made the following comments in relation to 2021 first-quarter results:

 

“Our diversified portfolio of mines performed well to start the year, as we continued to mitigate the impacts of COVID-19 across all our operations and projects. The Company delivered a 51% year-over-year increase in adjusted net earnings, with margins increasing 25% to $1,031 per ounce sold, once again outpacing the increase in the average realized gold price. We are well-positioned to continue generating strong cash flow through the year, are on track to meet our annual guidance, and we are in an excellent financial position.

 

“Our three largest producing mines – Paracatu, Kupol and Tasiast – delivered our lowest costs for the quarter, with Paracatu and Tasiast achieving record quarterly throughput. Development at our Tasiast 24k and La Coipa projects advanced well and both projects remain on schedule. Our studies at Udinsk, Manh Choh and Lobo-Marte are all proceeding as planned.

 

“In line with our values and commitment to responsible environmental stewardship, Kinross is taking an important step and committing to reach net-zero greenhouse gas emissions by 2050. To support this goal, we are currently developing a strategy that we expect to finalize by year-end that will identify tangible GHG reduction targets for 2030, and the steps the Company plans to take to achieve those targets, leveraging our position as one of the lowest GHG emitters among our peers.”

 

 

Financial results
Summary of financial and operating results

 

  Three months ended
  March 31,
(unaudited, in millions of U.S. dollars, except ounces, per share amounts, and per ounce amounts) 2021       2020  
Operating Highlights     
Total gold equivalent ounces(a)    
Produced(c)               563,166       571,773  
Sold(c)               552,198       556,676  
               
Attributable gold equivalent ounces(a)               
Produced(c)               558,777       567,327  
Sold(c)               548,084       552,742  
     
Financial Highlights     
Metal sales $               986.5     $              879.8  
Production cost of sales $               419.9     $              421.3  
Depreciation, depletion and amortization $               207.0     $              193.1  
Operating earnings $               242.3     $              192.6  
Net earnings attributable to common shareholders $               149.5     $              122.7  
Basic earnings per share attributable to common shareholders $                 0.12     $                0.10  
Diluted earnings per share attributable to common shareholders $                 0.12     $                0.10  
Adjusted net earnings attributable to common shareholders(b) $               192.8     $              127.4  
Adjusted net earnings per share(b) $                 0.15     $                0.10  
Net cash flow provided from operating activities $               279.8     $              299.6  
Adjusted operating cash flow(b) $               399.6     $              418.6  
Capital expenditures(d)  $               204.2     $              191.4  
Free cash flow(b) $                 75.6     $              108.2  
Average realized gold price per ounce(b) $               1,787     $              1,581  
Consolidated production cost of sales per equivalent ounce(c) sold(b) $                  760     $                 757  
Attributable(1) production cost of sales per equivalent ounce(c) sold(b) $                  756     $                 754  
Attributable(a) production cost of sales per ounce sold on a by-product basis(b) $                  728     $                 738  
Attributable(a) all-in sustaining cost per ounce sold on a by-product basis(b) $                  953     $                 982  
Attributable(a) all-in sustaining cost per equivalent ounce(c) sold(b) $                  975     $                 993  
Attributable(a) all-in cost per ounce sold on a by-product basis(b) $               1,279     $              1,245  
Attributable(a) all-in cost per equivalent ounce(c) sold(b) $               1,292     $              1,251  

 

(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 is included on pages 14 to 20.
(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 2021 was 68.33:1 (first quarter of 2020 – 93.63:1).
(d) “Capital expenditures” is as reported as “Additions to property, plant and equipment” on the interim condensed consolidated statement of cash flows.
   

 

The following operating and financial results are based on 2021 first-quarter gold equivalent production. Production and cost measures are on an attributable basis:

 

Production1: Kinross produced 558,777 Au eq. oz. in Q1 2021, compared with 567,327 Au eq. oz. in Q1 2020. This slight decrease was primarily due to lower production at Tasiast and at Round Mountain, partially offset by higher production at Bald Mountain.

 

Average realized gold price2: The average realized gold price increased 13% to $1,787 per ounce in Q1 2021 compared with $1,581 per ounce for the same period in 2020.

 

Revenue: Revenue increased 12% to $986.5 million in Q1 2021 compared with $879.8 million during Q1 2020.

 

Production cost of sales12: Production cost of sales per Au eq. oz. was $756 in Q1 2021, in line with $754 in Q1 2020.

 

Production cost of sales per Au oz. on a by-product basis was $728 in Q1 2021 compared with $738 in Q1 2020, based on attributable gold sales of 533,207 ounces and attributable silver sales of 1,016,549 ounces.

 

Margins3: Kinross’ attributable margin per Au eq. oz. sold increased by 25% to $1,031 for Q1 2021, compared with $827 in Q1 2020, which outpaced the 13% year-over-year increase in average realized gold price.

 

All-in sustaining cost1, 2: All-in sustaining cost per Au eq. oz. sold decreased to $975 in Q1 2021, compared with $993 in Q1 2020.

 

All-in sustaining cost per Au oz. sold on a by-product basis decreased to $953 in Q1 2021, compared with $982 in Q1 2020.

 

Operating cash flow: Adjusted operating cash flow2 was $399.6 million in Q1 2021, compared with $418.6 million for Q1 2020 primarily due to an increase in current tax expense, offset by increased operating earnings.

 

Net operating cash flow was $279.8 million for Q1 2021, compared with $299.6 million for Q1 2020.

 

Free cash flow2Free cash flow was $75.6 million in Q1 2021, compared with $108.2 million for Q1 2020 due to increases in income taxes paid and capital expenditures, partially offset by increased margins. Free cash flow is reported on an unadjusted basis and includes net outflows for working capital and taxes paid of $119.8 million.

 

Earnings: Adjusted net earnings2 increased 51% to $192.8 million, or $0.15 per share, for Q1 2021, compared with $127.4 million, or $0.10 per share, for Q1 2020.

 

Reported net earnings4 increased 22% to $149.5 million, or $0.12 per share, for Q1 2021, compared with $122.7 million, or $0.10 per share, for Q1 2020, primarily due to the increase in operating earnings, partially offset by the increase in income tax expense.

 

Capital expenditures: Capital expenditures increased slightly to $204.2 million for Q1 2021, compared with $191.4 million for Q1 2020 primarily due to increased spending at the La Coipa, Lobo-Marte and Udinsk projects, partially offset by decreased capital development activities at Bald Mountain and Round Mountain.

 

Balance sheet

 

As of March 31, 2021, Kinross had cash and cash equivalents of $1,056.1 million, compared with $1,210.9 million at December 31, 2020. The decrease was primarily due to the final payment for the Chulbatkan license and the quarterly dividend payments, partially offset by free cash flow2 generated in the quarter.

 

The Company had additional available credit of $1,563.9 million as of March 31, 2021 and total liquidity of approximately $2.6 billion. Kinross had total debt of approximately $1.9 billion at March 31, 2021.

 

Kinross announced on April 29, 2021 that it will redeem all the outstanding 5.125% Senior Notes due September 1, 2021, which have an aggregate principal amount of $500 million, on June 1, 2021. After the 2021 notes are redeemed, $1,250 million in aggregate principal amount of Kinross Senior Notes will remain outstanding, with the next maturity date on March 15, 2024 for $500 million in aggregate principal amount.

 

Operating results

 

The Company’s comprehensive response to the COVID-19 pandemic continued to maintain the safety of its global workforce and mitigate operational impacts.

 

Mine-by-mine summaries for 2021 first-quarter operating results may be found on pages nine and 13. Highlights include the following:

 

Americas

 

Paracatu performed well in Q1 2021, with production increasing year-over-year as the site delivered record quarterly throughput. Production was lower quarter-over-quarter mainly as a result of a decrease in mill grade due to mine sequencing, which was largely offset by strong throughput. Cost of sales per ounce sold was lower compared with Q1 2020 mainly due to favourable foreign exchange, and increased compared with Q4 2020 primarily due to lower production.

 

At Round Mountain, mining activities during the quarter were impacted by precautionary measures taken after  wall movements in the north wall of the pit were detected by the site’s comprehensive monitoring system. The site deferred mining in the area, which delayed access to Phase W ore and affected production and cost of sales per ounce during the quarter. The site has accelerated dewatering in the area and is moving waste material to mitigate the issue and to enhance the stability of the wall. A mine optimization program has also commenced, which is expected to be completed in the second quarter of next year and will evaluate opportunities for Phase S, the mine’s next planned pushback after Phase W. While production timing and mine sequencing are expected to be impacted, including potentially deferring access to higher grade Phase W ore for approximately two years, Kinross does not anticipate this issue to impact the Company’s 2021 production and cost of sales guidance and its longer-term production profile, or Round Mountain’s total life of mine production.

 

At Bald Mountain, production was in line with the previous quarter, and was higher year-over-year mainly due to timing of ounces recovered from the heap leach pads. Cost of sales per ounce decreased quarter-over-quarter primarily due to lower contractor and fuel costs, partially offset by higher operating waste mined. The year-over-year decrease in cost of sales per ounce was mainly as a result of higher production and lower contractor costs.

 

At Fort Knox, production was slightly lower compared with the previous quarter mainly due to lower mill grades and throughput, which was largely offset by higher heap leach production. Year-over-year, production was higher mainly as a result of timing of ounces processed through the mill and an increase in ounces recovered from the heap leach pads. Cost of sales per ounce increased quarter-over-quarter primarily due to lower production and a higher proportion of production from the heap leach pads, and decreased year-over-year primarily due to lower operating waste mined.

 

Russia

 

At Kupol and Dvoinoye, production was lower than the previous quarter mainly as a result of a decrease in throughput and anticipated lower grade ore as the site transitioned to Dvoinoye stockpiles. Production was largely in line with the previous year. Cost of sales per once sold increased slightly quarter-over-quarter due to lower production and was largely offset by lower mining costs as a result of the completion of mining activities at Dvoinoye. Cost of sales per ounce sold was lower year-over-year mainly due to lower mining costs as a result of the completion of mining activities at Dvoinoye and favourable foreign exchange.

 

West Africa

 

Tasiast performed to plan during the first quarter, with the site achieving record quarterly mill throughput rates and shift rotations returning to pre-pandemic schedules in March. Compared with the previous quarter and year, production decreased primarily as result of lower mill grade, which was expected as the site processed more stockpile ore, largely offset by record mill throughput. Cost of sales per ounce sold was higher quarter-over-quarter and year-over-year mainly as a result of lower production, with higher royalty expenses also contributing to the increase versus Q1 2020.

 

At Chirano, production was higher quarter-over-quarter mainly due to an increase in throughput and higher grades from the underground deposits. Production was largely in line year-over-year. Cost of sales per ounce sold was higher compared with the previous quarter mainly as a result of an increase in operating waste mined, and higher maintenance, milling and power costs. Cost of sales per ounce sold increased versus the first quarter of 2020 mainly due to higher maintenance and mill costs, partially offset by lower operating waste mined.

 

Development projects

 

Tasiast 24k

 

The Tasiast 24k project remains on budget and on schedule to increase throughput capacity to 21,000 tonnes per day (t/d) by the end of 2021, and then to 24,000 t/d by mid-2023. The first phase of the project is now 80% complete. Power plant construction is advancing well and is now 80% complete, with commissioning expected to commence shortly. The new leach tank has been assembled and the thickener is now mechanically complete.

 

Chulbatkan – Udinsk

 

Kinross continues to make good progress at Udinsk, the first project that is expected to be developed on the Chulbatkan license. The project’s pre-feasibility study is on track to be completed in Q4 2021 and is focusing on fast-tracking construction. First production is anticipated to occur in 2025.

 

Exploration activities on the larger Chulbatkan license that were planned for 2021 have commenced, with drilling focused on new targets showing soil and geophysics anomalies near the Udinsk resource pit to the northeast and southwest.

 

Alaska projects

 

The “Peak” project, which was formally re-named “Manh Choh,” continued to advance well during the quarter. The Athabascan name of “Manh Choh” (meaning “Big Lake”) has considerable cultural significance to the local community and was chosen for the project after close consultation with the Upper Tanana Athabascan Village of Tetlin.

 

The project’s scoping study remains on schedule to be completed by the end of Q2 2021, with infill, metallurgical and geotechnical drilling now complete. Engineering, environmental studies for permitting, and community engagement initiatives are all progressing well. The Manh Choh feasibility study is expected to be completed by the end of 2022 and first production is expected in 2024.

 

The Company has also commenced development of the Gil satellite pits, which are located approximately 13 kilometres east of Fort Knox. The Gil pits are expected to produce approximately 160,000 Au eq. oz. over a two year mine life at an estimated average cost of sales of approximately $920 per Au eq. oz., with expected average mining grades of 0.8 g/t5. Production is scheduled to commence in Q4 20215. Initial non-sustaining capital and sustaining capital expenditures are expected to be approximately $30 million and $10 million, respectively5. The Company plans to haul Gil ore to the Fort Knox mill for processing using the mine’s existing road network.

 

La Coipa Restart and Lobo-Marte

 

The La Coipa Restart project is on schedule to commence production in mid-2022 and continues to progress well, with pre-stripping now ramped up after commencing in January 2021. Fleet refurbishments are expected to be completed during Q2 2021, with plant refurbishments and mine road construction advancing as planned. Work on studies to incorporate adjacent deposits into La Coipa’s mine plan to potentially extend mine life is proceeding well. The Company is also evaluating the option of sourcing renewable power for the project.

 

The Lobo-Marte feasibility study is advancing on schedule and is expected to be completed in Q4 2021. Kinross is targeting to commence production in 2027 subject to permitting and after the completion of mining at La Coipa, with construction potentially starting in 2025. Kinross continues to believe that Lobo-Marte has the potential to be a long-life, cornerstone asset with attractive costs.

 

Company Guidance

 

The following section of the news release represents forward-looking information and users are cautioned that actual results may vary. We refer to the risks and assumptions contained in the Cautionary Statement on Forward-Looking Information on pages 20-22.

 

The Company is on track to meet its 2021 production guidance of 2.4 million Au eq. oz. (+/- 5%). Production is expected to increase quarter-over-quarter in 2021, largely driven by anticipated higher production at Paracatu, and expected higher production in the fourth quarter at Tasiast.

 

The Company is also on track to meet its 2021 guidance for production cost of sales of $790 per Au eq. oz. (+/- 5%), all-in sustaining cost of $1,025 per Au eq. oz. (+/-5%) and capital expenditures of $900 million (+/-5%). Cost of sales is expected to increase through the year as a result of planned increases in operating waste mined.

 

In 2022 and 2023, consistent with the three-year guidance the Company provided in October 2020, annual production is expected to increase to approximately 2.7 million Au eq. oz. (+/- 5%) and 2.9 million Au eq. oz. (+/- 5%), respectively. The Company also expects to produce an average of 2.5 million Au eq. oz. per year through the end of the decade.

 

Sustainability update – commitment to net-zero GHG by 2050

 

In line with the Company’s core values and focus on responsible environmental stewardship, Kinross is committing to working toward the goals of the United Nations Framework Convention on Climate Change (UNFCCC) Paris Agreement, with the ultimate objective of being a net-zero GHG emissions company by 2050. To support this objective, Kinross is currently developing a strategy that it expects to finalize by year-end that will include tangible GHG reduction targets for 2030 and the steps the Company plans to take to achieve those targets. This strategy is expected to be based on site-specific analysis of mining and processing technologies, renewable resources, and alternative energy sources potentially available over the life-of-mine across all of the Company’s assets.

 

The strategy will also leverage the Company’s current position as one of the lowest GHG emitters among its peers, and build on its record of incorporating energy efficiencies into its projects and operations, such as the acquisition of two hydroelectric power plants in 2018 to increase renewable energy use at Paracatu. As potential elements of its strategy, Kinross is also exploring on-site renewable energy generation, including studying solar photovoltaic power at Tasiast, and sourcing renewable energy power from the grid at La Coipa, which is under evaluation as part of the project.

 

Kinross has a long record of transparency on climate-related disclosures and GHG emissions. The Company has been reporting on its emissions through the Global Reporting Initiative (GRI) Standards and Carbon Disclosure Project (CDP) frameworks since 2005, and in 2020, began implementation of the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

 

More information on Kinross’ approach to climate change and energy is available in the Company’s latest Sustainability Report. Kinross expects to publish a Sustainability Report Update in mid-2021.

 

About Kinross Gold Corporation

 

Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Russia, Mauritania, Chile and Ghana. Our focus is on delivering value based on the core principles of operational excellence, balance sheet strength, disciplined growth and responsible mining. Kinross maintains listings on the Toronto Stock Exchange (symbol:K) and the New York Stock Exchange (symbol:KGC).

 

 

Review of operations

 

                                   
Three months ended March 31, (unaudited) Gold equivalent ounces                 
  Produced   Sold   Production cost of
sales 
($millions)
  Production cost of sales/equivalent ounce sold 
  2021   2020     2021   2020     2021   2020     2021     2020  
                                   
Fort Knox              55,815   51,667                 55,561   50,768     $             57.7   $          64.6     $              1,038   $             1,272  
Round Mountain              74,286   84,465                 73,878   85,715                   63.1   56.1                         854     654  
Bald Mountain              51,408   42,087                 48,250   42,376                   37.0   35.7                         767     842  
Paracatu            126,547   124,367               126,811   121,197                   82.8   87.5                         653     722  
Maricunga                      –                          731   1,311                     0.5   0.8                         684     610  
Americas Total             308,056   302,586               305,231   301,367                 241.1   244.7                         790     812  
                                           
Kupol            122,252   120,885               122,153   122,024                   74.7   76.9                         612     630  
Russia Total             122,252   120,885               122,153   122,024                   74.7   76.9                         612     630  
                                           
Tasiast              88,964   103,837                 83,670   93,950                   51.3   51.9                         613     552  
Chirano (100%)              43,894   44,465                 41,144   39,335                   52.8   47.8                      1,283     1,215  
West Africa Total            132,858   148,302               124,814   133,285                 104.1   99.7                         834     748  
                                           
Operations Total            563,166   571,773               552,198   556,676                 419.9   421.3                         760     757  
Less Chirano non-controlling
interest (10%)
             (4,389 ) (4,446 )               (4,114 ) (3,934 )                 (5.3 ) (4.8 )              
Attributable Total            558,777   567,327               548,084   552,742     $           414.6   $        416.5     $                 756   $                754  
                                               

 

 

 

Interim condensed consolidated balance sheets

 

(unaudited, expressed in millions of U.S. dollars, except share amounts)   
               
    As at  
    March 31,     December 31,    
    2021     2020    
               
Assets              
Current assets              
Cash and cash equivalents   $                         1,056.1     $ 1,210.9    
Restricted cash                                  11.3     13.7    
Accounts receivable and other assets                                124.0     122.3    
Current income tax recoverable                                  25.5     29.9    
Inventories                             1,098.2     1,072.9    
                              2,315.1     2,449.7    
Non-current assets              
Property, plant and equipment                             7,627.1     7,653.5    
Goodwill                                158.8     158.8    
Long-term investments                                101.3     113.0    
Investment in joint venture                                  18.3     18.3    
Other long-term assets                                557.9     537.2    
Deferred tax assets                                    3.9     2.7    
Total assets   $                       10,782.4     $ 10,933.2    
               
Liabilities              
Current liabilities              
Accounts payable and accrued liabilities   $                            402.7     $ 479.2    
Current income tax payable                                  51.2     114.5    
Current portion of long-term debt and credit facilities                                499.8     499.7    
Current portion of provisions                                  73.3     63.8    
Other current liabilities                                  45.0     49.7    
Deferred payment obligation                                      –       141.5    
                              1,072.0     1,348.4    
Non-current liabilities              
Long-term debt and credit facilities                             1,425.5     1,424.2    
Provisions                                858.9     861.1    
Long-term lease liabilities                                  46.1     46.3    
Other long-term liabilities                                116.0     102.4    
Deferred tax liabilities                                492.3     487.8    
Total liabilities   $                         4,010.8     $ 4,270.2    
               
Equity              
Common shareholders’ equity              
Common share capital   $                         4,486.2     $ 4,473.7    
Contributed surplus                           10,697.1     10,709.0    
Accumulated deficit                            (8,450.8 )   (8,562.5 )  
Accumulated other comprehensive income (loss)                                 (28.0 )   (23.7 )  
Total common shareholders’ equity                             6,704.5     6,596.5    
Non-controlling interests                                  67.1     66.5    
Total equity   $                         6,771.6     $ 6,663.0    
Total liabilities and equity   $                       10,782.4     $ 10,933.2    
               
Common shares               
Authorized    Unlimited      Unlimited    
Issued and outstanding                  1,261,073,345     1,258,320,461    
               

 

 

 

Interim condensed consolidated statements of operations

 

(unaudited, expressed in millions of U.S. dollars, except share and per share amounts)              
    Three months ended    
    March 31,     March 31,    
    2021     2020    
Revenue              
Metal sales   $                  986.5     $ 879.8    
               
Cost of sales              
Production cost of sales                      419.9     421.3    
Depreciation, depletion and amortization                      207.0     193.1    
Total cost of sales                      626.9     614.4    
Gross profit                      359.6     265.4    
Other operating expense                        57.9     21.9    
Exploration and business development                        25.4     19.1    
General and administrative                        34.0     31.8    
Operating earnings                      242.3     192.6    
Other income (expense) – net                          2.3     (0.6 )  
Finance income                          1.8     2.0    
Finance expense                      (19.3 )   (25.7 )  
Earnings before tax                      227.1     168.3    
Income tax expense – net                      (77.9 )   (45.0 )  
Net earnings    $                  149.2     $ 123.3    
Net earnings (loss) attributable to:              
Non-controlling interests   $                    (0.3 )   $ 0.6    
Common shareholders   $                  149.5     $ 122.7    
               
Earnings per share attributable to common shareholders              
Basic   $                    0.12     $ 0.10    
Diluted   $                    0.12     $ 0.10    
               
Weighted average number of common shares outstanding
(millions)
             
Basic                   1,259.2     1,254.6    
Diluted                   1,268.4     1,265.3    

 

 

 

Interim condensed consolidated statements of cash flows

 

(unaudited, expressed in millions of U.S. dollars)                
      Three months ended    
      March 31,     March 31,    
      2021     2020    
Net inflow (outflow) of cash related to the following activities:                
Operating:                
Net earnings     $                  149.2     $                 123.3    
Adjustments to reconcile net earnings to net cash provided from
operating activities:
               
Depreciation, depletion and amortization                        207.0     193.1    
Share-based compensation expense                            3.8     4.5    
Finance expense                          19.3     25.7    
Deferred tax expense                            1.1     68.4    
Foreign exchange losses and other                          19.2     3.6    
Changes in operating assets and liabilities:                
Accounts receivable and other assets                          (5.1 )   (78.6 )  
Inventories                            0.3     7.7    
Accounts payable and accrued liabilities                          10.1     15.8    
Cash flow provided from operating activities                        404.9     363.5    
Income taxes paid                      (125.1 )   (63.9 )  
Net cash flow provided from operating activities                        279.8     299.6    
Investing:                
Additions to property, plant and equipment                      (204.2 )   (191.4 )  
Interest paid capitalized to property, plant and equipment                        (23.9 )   (22.3 )  
Acquisitions                      (141.5 )   (128.3 )  
Net additions to long-term investments and other assets                          (2.7 )   (1.9 )  
Net proceeds from the sale of property, plant and equipment                            0.4     1.5    
Decrease in restricted cash – net                            2.4     1.8    
Interest received and other – net                            0.7     1.0    
Net cash flow used in investing activities                      (368.8 )   (339.6 )  
Financing:                
Proceeds from drawdown of debt                               –      750.0    
Repayment of debt                               –      (100.0 )  
Interest paid                        (23.6 )   (25.6 )  
Payment of lease liabilities                          (7.6 )   (4.7 )  
Dividends paid to common shareholders                        (37.8 )      
Other – net                            4.6     (6.6 )  
Net cash flow (used in) provided from financing activities                        (64.4 )   613.1    
Effect of exchange rate changes on cash and cash equivalents                          (1.4 )   (9.6 )  
(Decrease) increase in cash and cash equivalents                      (154.8 )   563.5    
Cash and cash equivalents, beginning of period                     1,210.9     575.1    
Cash and cash equivalents, end of period     $               1,056.1     $              1,138.6    

 

 

 

Operating Summary

 
  Mine Period Ownership Tonnes Ore Mined (a) Ore
Processed (Milled) (a) 
Ore
Processed (Heap Leach) (a)
 Grade (Mill)   Grade (Heap Leach)  Recovery (b)(h) Gold Eq Production (e) Gold Eq Sales (e)
Production cost of sales

Production cost of sales/oz

Cap Ex 
(g)

DD&A
      (%) (‘000 tonnes) (‘000 tonnes) (‘000 tonnes) (g/t) (g/t) (%) (ounces) (ounces) ($ millions) ($/ounce) ($ millions) ($ millions)
Americas Fort Knox Q1 2021 100           8,174            1,751          7,396     0.57     0.20 80% 55,815 55,561 $ 57.7 $ 1,038 $ 25.4 $ 22.5
Q4 2020 100 8,456 2,583 7,021 0.61 0.20 80% 57,523 57,849 $ 51.1 $ 883 $ 46.0 $ 23.2
Q3 2020 100 7,202 2,664 5,497 0.67 0.19 83% 72,705 73,267 $ 69.5 $ 949 $ 39.7 $ 27.9
Q2 2020 100 6,116 2,048 4,783 0.73 0.23 83% 56,031 56,465 $ 66.1 $ 1,171 $ 33.9 $ 23.3
Q1 2020 100 6,795 1,859 5,694 0.60 0.23 80% 51,667 50,768 $ 64.6 $ 1,272 $ 19.1 $ 22.8
Round Mountain Q1 2021 100          3,843             976           4,019     0.70     0.46 81%         74,286    73,878 $          63.1 $          854 $       31.3 $      17.0
Q4 2020 100 6,542 988 6,315 0.92 0.50 83% 89,422 89,709 $ 62.2 $ 693 $ 41.2 $ 15.2
Q3 2020 100 6,085 972 5,884 0.79 0.39 83% 76,039 72,717 $ 49.7 $ 683 $ 39.2 $ 11.6
Q2 2020 100 4,431 911 4,357 0.80 0.36 84% 74,351 71,087 $ 51.6 $ 726 $ 36.9 $ 10.2
Q1 2020 100 3,700 954 3,594 0.83 0.43 83% 84,465 85,715 $ 56.1 $ 654 $ 41.8 $ 12.6
Bald Mountain Q1 2021 100 2,025 2,025 0.48 nm 51,408 48,250 $ 37.0 $ 767 $ 8.9 $ 40.2
Q4 2020 100 6,076 6,076 0.42 nm 51,487 57,087 $ 45.4 $ 795 $ 19.3 $ 44.3
Q3 2020 100 4,922 4,922 0.56 nm 49,339 37,492 $ 32.1 $ 856 $ 23.4 $ 27.1
Q2 2020 100 4,051 4,051 0.53 nm 48,368 49,594 $ 42.7 $ 861 $ 29.6 $ 30.2
Q1 2020 100 3,254 3,254 0.55 nm 42,087 42,376 $ 35.7 $ 842 $ 31.5 $ 26.7
Paracatu Q1 2021 100 12,612 15,372 0.38 75% 126,547 126,811 $ 82.8 $ 653 $ 20.8 $ 37.7
Q4 2020 100 12,611 12,655 0.51 77% 148,218 150,881 $ 91.2 $ 604 $ 61.6 $ 58.2
Q3 2020 100 12,468 13,673 0.38 74% 131,000 128,782 $ 96.6 $ 750 $ 27.2 $ 42.4
Q2 2020 100 15,223 14,703 0.40 74% 138,851 140,646 $ 83.6 $ 594 $ 49.1 $ 45.2
Q1 2020 100 12,350 13,224 0.39 75% 124,367 121,197 $ 87.5 $ 722 $ 14.4 $ 37.7
Maricunga Q1 2021 100 nm 731 $ 0.5 $ 684 $ $ 0.1
Q4 2020 100 nm 414 2,035 $ 1.1 $ 541 $ $ 0.1
Q3 2020 100 nm 3,132 4,442 $ 1.0 $ 225 $ $ 0.2
Q2 2020 100 nm 1,159 $ 0.8 $ 690 $ $ 0.3
Q1 2020 100 nm 1,311 $ 0.8 $ 610 $ $ 0.3
Russia Kupol (c)(d)(f) Q1 2021 100 312 418 8.71 94% 122,252 122,153 $ 74.7 $ 612 $ 6.8 $ 18.2
Q4 2020 100 293 432 9.24 95% 130,731 131,541 $ 79.1 $ 601 $ 15.1 $ 31.0
Q3 2020 100 365 430 8.99 95% 128,144 126,637 $ 69.2 $ 546 $ 6.1 $ 27.0
Q2 2020 100 386 416 9.73 95% 130,983 130,771 $ 79.3 $ 606 $ 5.9 $ 31.1
Q1 2020 100 500 425 8.73 95% 120,885 122,024 $ 76.9 $ 630 $ 5.6 $ 34.4
West
Africa
Tasiast Q1 2021 100 843 1,504 1.85 96% 88,964 83,670 $ 51.3 $ 613 $ 68.6 $ 48.3
Q4 2020 100 1,206 1,470 2.48 94% 111,028 107,865 $ 60.8 $ 564 $ 65.0 $ 46.5
Q3 2020 100 1,338 1,244 2.78 94% 103,065 103,295 $ 65.2 $ 631 $ 50.0 $ 50.2
Q2 2020 100 1,134 1,168 2.40   94% 88,579 98,679 $ 57.8 $ 586 $ 40.6 $ 54.8
Q1 2020 100 1,160 1,467 2.31 95% 103,837 93,950 $ 51.9 $ 552 $ 69.2 $ 40.3
Chirano – 100%  Q1 2021 100 735 821 1.81 88% 43,894 41,144 $ 52.8 $ 1,283 $ 10.1 $ 21.2
Q4 2020 100 915 801 1.75 88% 39,121 40,202 $ 45.6 $ 1,134 $ 11.3 $ 13.1
Q3 2020 100 768 815 1.87 88% 44,320 46,586 $ 56.1 $ 1,204 $ 5.0 $ 16.1
Q2 2020 100 679 785 1.85 88% 38,683 40,084 $ 46.6 $ 1,163 $ 5.8 $ 13.1
Q1 2020 100 690 873 1.73 88% 44,465 39,335 $ 47.8 $ 1,215 $ 5.1 $ 15.9
Chirano – 90% Q1 2021 90             735              821                –        1.81         –   88%         39,505    37,030 $         47.5 $        1,283 $         9.1 $       19.1
Q4 2020 90 915 801 1.75 88% 35,209 36,182 $ 41.0 $ 1,134 $ 10.2 $ 11.8
Q3 2020 90 768 815 1.87 88% 39,888 41,927 $ 50.5 $ 1,204 $ 4.5 $ 14.5
Q2 2020 90 679 785 1.85 88% 34,815 36,076 $ 41.9 $ 1,163 $ 5.2 $ 11.8
Q1 2020 90 690 873 1.73 88% 40,019 35,401 $ 43.0 $ 1,215 $ 4.7 $ 14.3

 

(a) Tonnes of ore mined and processed represent 100% Kinross for all periods presented.
(b) Due to the nature of heap leach operations, recovery rates at Maricunga and Bald Mountain cannot be accurately measured on a quarterly basis.  Recovery rates at Fort Knox, Round Mountain and Tasiast represent mill recovery only.
(c) The Kupol segment includes the Kupol and Dvoinoye mines.
(d) Kupol silver grade and recovery were as follows: Q1 2021: 69.95 g/t, 83%; Q4 2020: 65.05 g/t, 84%; Q3 2020: 74.19 g/t, 88%; Q2 2020: 70.36 g/t, 86%; Q1 2020: 80.02 g/t, 84%.
(e) Gold equivalent ounces include silver ounces produced and sold converted to a gold equivalent based on the ratio of the average spot market prices for the commodities for each period. The ratios for the quarters presented are as follows: Q1 2021: 68.33:1; Q4 2020: 77.02:1; Q3 2020: 78.68:1; Q2 2020: 104.49:1; Q1 2020: 93.63:1.
(f) Dvoinoye tonnes of ore processed and grade were as follows: Q1 2021: 109,559, 6.56 g/t; Q4 2020: 115,998, 9.25 g/t; Q3 2020: 115,054, 9.44 g/t; Q2 2020: 113,472, 9.55 g/t; Q1 2020: 117,502, 9.24 g/t.
(g) “Capital expenditures” is as reported as “Additions to property, plant and equipment” on the interim condensed consolidated statement of cash flows.
(h) “nm” means not meaningful.
   

 

Posted May 12, 2021

Share this news article

MORE or "UNCATEGORIZED"


Provenance Gold Announces and Closes Substantially Oversubscribed $1.5 Million Private Placement

Provenance Gold Corp. (CSE: PAU) (OTCQB: PVGDF) is pleased to ann... READ MORE

October 22, 2021

Omai Drilling Continues to Outline Gold Mineralization in Multiple Shears Extending Below the Wenot Pit, including 16.8 g/t over 6 metres and 4.6 g/t over 20 metres

Omai Gold Mines Corp. (TSX-V: OMG) is pleased to report additiona... READ MORE

October 22, 2021

Emerita Intersects 8.2 Meters Grading 2.5% Copper, 17.3% Zinc, 8.7% Lead, 223.5g/t Silver, 0.5g/t Gold in Initial Step-Out Drill Hole at La Infanta Drill Program

Emerita Resources Corp. (TSX – V: EMO) (OTC: EMOTF) announces ... READ MORE

October 22, 2021

Aurania Resources Announces Closing of $2.26 Million Concurrent Private Placement

Aurania Resources Ltd. (TSX-V: ARU) (FSE: 20Q) announces that it ... READ MORE

October 22, 2021

Bonterra Announces Closing of $11.66 Million Private Placement

Bonterra Resources Inc. (TSX-V: BTR) (OTCQX: BONXF) (FSE: 9BR2) i... READ MORE

October 22, 2021

We acknowledge the [financial] support of the Government of Canada.

Government of Canada Supported
Copyright 2021 The Prospector News