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Kinross reports 2020 fourth-quarter and full-year results Met guidance for ninth year in a row and delivered record free cash flow of more than $1 billion Production expected to grow by 20% in 2023

Production Results Financials

TORONTO, Feb. 10, 2021 (GLOBE NEWSWIRE) -- Kinross Gold Corporation (TSX: K, NYSE: KGC) (“Kinross” or the “Company”) today announced its results for the fourth quarter and year ended December 31, 2020.

(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 page 25 of this release. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.)

2020 full-year results and guidance:

2020 guidance 2021 guidance 2020 full-year results

(+/- 5%) (+/- 5%)

Gold equivalent production1 2.4 million 2.4 million 2.4 million (ounces)

Production cost of sales1, 2 $720 $723 $790 ($ per Au eq. oz.)

All-in sustaining cost1, 2 $970 $987 $1,025 ($ per Au eq. oz.)

Capital expenditures $900 million $916 million $900 million

  • Expect to increase production1 20% to 2.9 million Au eq. oz. in 2023 and produce1 an average of 2.5 million Au eq. oz. per year to 2029.

2020 Q4 and full-year highlights:

  • Production1,2 of 624,032 Au eq. oz. produced in Q4 2020 and 2,366,648 Au eq. oz. in 2020.
  • Production cost of sales1,2 of $682 per Au eq. oz. in Q4 2020 and $723 per Au eq. oz. in 2020.
  • All-in sustaining cost1,2 of $1,013 per Au eq. oz. sold in Q4 2020 and $987 per Au eq. oz. sold in 2020.
  • Attributable margins3 increased 61% to $1,193 per Au eq. oz. sold in Q4 2020, and 53% to $1,051 per Au eq. oz. sold for 2020, compared with Q4 2019 and 2019, respectively, with both increases outpacing the rise in average realized gold price2.
  • Adjusted operating cash flow2 increased to $527.6 million in Q4 2020 compared with Q4 2019, and increased 59% for 2020 to $1,912.7 million compared with 2019. Operating cash flow of $681.1 million in Q4 2020 and $1,957.6 million in 2020.
  • Free cash flow2 quarterly and full-year records of $382.8 million and $1,041.5 million, respectively.
  • Reported net earnings4 of $783.3 million, or $0.62 per share in Q4 2020, and $1,342.4 million, or $1.07 per share, in 2020.
  • Adjusted net earnings2 of $335.1 million, or $0.27 per share in Q4 2020, and $966.8 million, or $0.77 per share, in 2020. Adjusted net earnings more than doubled quarter-over-quarter and year-over-year.
  • Cash and cash equivalents of $1,210.9 million, and total liquidity of $2.8 billion at December 31, 2020.
  • Kinross’ Board of Directors declared a quarterly dividend of $0.03 per common share payable on March 18, 2021 to shareholders of record at the close of business on March 3, 2021.

Operations highlights:

  • Maintained operations throughout 2020 and delivered on original annual production, cost and capital expenditures guidance despite the impact of COVID-19 across the global portfolio.
  • Three largest producing mines – Paracatu, Kupol and Tasiast – represented 62% of production and were the lowest cost mines in the portfolio in 2020 for the second year in a row.
  • Tasiast delivered record production and costs in 2020 for the second consecutive year, and is expected to increase throughput to 21,000 tonnes per day by year-end with the Tasiast 24k project.
  • Fort Knox Gilmore project completed on time and under budget, with newly-acquired “bolt-on” Peak project advancing well.

Environment, Social, Governance (ESG):

  • Successfully managing the risks associated with the COVID-19 pandemic by implementing rigorous safety measures across global portfolio and provided approximately $6 million towards host community efforts to combat COVID-19.
  • ESG performance ranked in the top quartile of peer group, as measured by Sustainalytics, MSCI, ISS, Vigeo, Refinitiv and S&P’s Dow Jones Sustainability Index. Kinross was also recognized as the top mining company in The Globe and Mail’s annual corporate governance ranking.
  • Improved climate change disclosures and benchmarked against the recommendations made by the Task Force on Climate-related Financial Disclosures (TCFD), and included Sustainability Accounting Standards Board (SASB) metrics in most recent Sustainability Report.
  • Kinross continued to generate significant economic benefits to host countries through taxes, support of local suppliers and employment, with approximately 98% of Kinross employees from its host countries.
  • Safety performance was in line with three-year averages, with safety rates among the lowest in the industry. This was overshadowed by the first minesite fatality at Kinross since 2017.

________________________ 1 Unless otherwise stated, production, production cost of sales per Au eq. oz., and all-in-sustaining costs per Au eq. oz., in this news release are based on

Kinross’ 90% share of Chirano production and costs, and 70% share of Peak costs.

2 These figures are non-GAAP financial measures and are defined and reconciled on pages 18 to 24 of this news release.

3 Attributable margin per equivalent ounce sold is a non-GAAP financial measure defined as “average realized gold price per ounce” less “attributable production cost of sales per gold equivalent ounce sold.”

4 Net earnings figures in this release represent “net earnings from continuing operations attributable to common shareholders”.

CEO Commentary:

J. Paul Rollinson, President and CEO, made the following comments in relation to 2020 fourth-quarter and year-end results:

“Kinross delivered an excellent year in 2020, generating record free cash flow of more than $1 billion from our diversified portfolio of mines. We met our original guidance for the ninth consecutive year despite the impacts of the global pandemic. Kinross managed COVID-19 risks by implementing rigorous measures to keep our employees safe, maintain business continuity and support local communities. I would like to thank our workforce around the world for meeting the challenges of the pandemic. Our ability to quickly adapt and safely execute our plans in a difficult environment speaks to the strong culture of operational excellence we have built at Kinross.

“Operationally, our three largest mines – Paracatu, Kupol and Tasiast – produced 62% of our total ounces and were the lowest cost mines in our portfolio in 2020. Tasiast was a standout performer and achieved record annual production and low costs for the second consecutive year. We also added 5.7 million ounces to our mineral reserve estimates after depletion as a result of successful exploration and mine optimization programs. Kinross made good progress at our projects, including Tasiast 24k and La Coipa, and added to our portfolio with the acquisition of the Chulbatkan and Peak projects. Construction at the Fort Knox Gilmore project was completed on time and under budget and we continued to advance Udinsk and Lobo-Marte.

“During the year, we continued to strengthen our investment grade balance sheet, more than doubled our adjusted net earnings to approximately $970 million, and increased our margins by 53% to $1,051 per ounce, which outpaced the increase in the average realized gold price. We also instituted a sustainable quarterly dividend to return capital to shareholders, which underscores the strength of our financial position.

“Kinross delivered on our ESG commitments in 2020, with our ESG performance ranked in the top quartile of our peer group, as measured by independent third-party organizations. We continued to generate significant economic benefits to our host countries through taxes, support of local suppliers and employment.

“Looking forward, we expect to continue our consistent performance in 2021 and have provided solid guidance for the year. We expect production to grow by 20% to 2.9 million ounces in 2023, and to produce an average of 2.5 million ounces annually to 2029, putting us in excellent position to continue generating value.”

Financial results

Summary of financial and operating results

Three months ended Years ended December 31, December 31,

(in millions of U.S. dollars, except ounces, per share amounts, and per ounce amounts) 2020 2019 2020 2019

Operating Highlights

Total gold equivalent ounces(a)

Produced(c) 627,944 650,242 2,383,307 2,527,788 Sold(c) 637,169 670,917 2,375,548 2,512,758

Attributable gold equivalent ounces(a)

Produced(c) 624,032 645,344 2,366,648 2,507,659 Sold(c) 633,149 666,199 2,358,927 2,492,572

Financial Highlights

Metal sales$1,195.1$996.2$4,213.4$3,497.3
Production cost of sales$436.5$500.5$1,725.7$1,778.9
Depreciation, depletion and amortization$234.0$210.4$842.3$731.3
Reversals of impairment charges - net$(602.6)$(361.8)$(650.9)$(361.8)
Operating earnings$992.3$568.8$1,899.4$991.1
Net earnings attributable to common shareholders$783.3$521.5$1,342.4$718.6
Basic earnings per share attributable to common shareholders$0.62$0.41$1.07$0.57
Diluted earnings per share attributable to common shareholders$0.62$0.41$1.06$0.57
Adjusted net earnings attributable to common shareholders(b)$335.1$156.0$966.8$422.9
Adjusted net earnings per share(b)$0.27$0.13$0.77$0.34
Net cash flow provided from operating activities$681.1$408.6$1,957.6$1,224.9
Adjusted operating cash flow(b)$527.6$387.6$1,912.7$1,201.5
Capital expenditures(d)$298.3$297.9$916.1$1,060.2
Free cash flow(b)$382.8$110.7$1,041.5$164.7
Average realized gold price per ounce(b)$1,875$1,485$1,774$1,392
Consolidated production cost of sales per equivalent ounce(c)sold(b)$685$746$726$708
Attributable(1)production cost of sales per equivalent ounce(c)sold(b)$682$744$723$706

Attributable(a) production cost of sales per ounce sold on a by-product basis (b)

$653$728$700$691
Attributable(a)all-in sustaining cost per ounce sold on a by-product basis(b)$991$1,041$970$974
Attributable(a)all-in sustaining cost per equivalent ounce(c)sold(b)$1,013$1,050$987$983
Attributable(a)all-in cost per ounce sold on a by-product basis(b)$1,309$1,337$1,248$1,282
Attributable(a)all-in cost per equivalent ounce(c)sold(b)$1,322$1,340$1,260$1,284

(a) Total includes 100% of Chirano production. "Attributable" includes Kinross' share of Chirano (90%) and Peak (70%) production and costs.

(b) The definition and reconciliation of these non-GAAP financial measures is included on pages 18 to 24 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 2020 was 86.32:1 (2019 - 85.99:1). The ratio for Q4 2020 was 77.02:1 (Q4 2019 – 85.59:1).

(d) “Capital expenditures” is as reported as “Additions to property, plant and equipment” on the consolidated statements of cash flows and excludes “Interest paid capitalized to property, plant and equipment”.

The following operating and financial results are based on fourth-quarter and year-end 2020 gold equivalent production. Production and cost measures are on an attributable basis:

Production1,2: Kinross produced 624,032 attributable Au eq. oz. in Q4 2020, compared with 645,344 Au eq. oz. in Q4 2019. The slight decrease was largely due to lower production at Bald Mountain, Round Mountain and Chirano, largely offset by increases at Tasiast and Paracatu.

Over the full year, Kinross produced 2,366,648 Au eq. oz., in line with the Company’s annual guidance, compared with full-year 2019 production of 2,507,659 Au eq. oz. The decrease was consistent with plan and was a result of lower production at Paracatu, Round Mountain and Chirano, partially offset by higher production at Fort Knox and Tasiast.

Average realized gold price2: The average realized gold price in Q4 2020 increased 26% to $1,875 per ounce, compared with $1,485 per ounce in Q4 2019.

The average realized gold price per ounce increased 27% to $1,774 for full-year 2020, compared with $1,392 per ounce for full-year 2019.

Revenue: During the fourth quarter, revenue increased 20% to $1,195.1 million, compared with $996.2 million during the same period in 2019.

Revenue for full-year 2020 increased 20% to $4,213.4 million, compared with $3,497.3 million for full-year 2019.

Production cost of sales1, 2: Production cost of sales per Au eq. oz. decreased to $682 for Q4 2020 compared with $744 for the same period in 2019, mainly as a result of lower costs at Paracatu, Fort Knox and Round Mountain, partially offset by higher costs at Tasiast and Chirano.

Production cost of sales per Au eq. oz. was $723 for full-year 2020, which was in line with guidance, compared with $706 per Au eq. oz. for full-year 2019. The increase was mainly due to higher costs at Chirano.

Production cost of sales per Au oz. on a by-product basis was $653 in Q4 2020 compared with $728 in Q4 2019, based on attributable gold sales of 618,221 ounces and attributable silver sales of 1,149,687 ounces.

Production cost of sales per Au eq. oz. on a by-product was $700 for full-year 2020, compared with $691 for full-year 2019, based on 2020 attributable gold sales of 2,307,735 ounces and attributable silver sales of 4,425,708 ounces.

Margins3: Kinross’ attributable margin per Au eq. oz. sold increased by 61% to $1,193 for Q4 2020, compared with the Q4 2019 margin of $741, which is significantly higher than the 26% quarterly year-over-year increase in average realized gold price.

Full-year 2020 margin per Au eq. oz. sold increased 53% to $1,051, compared with $686 for full-year 2019, outpacing the 27% 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 $1,013 in Q4 2020, compared with $1,050 in Q4 2019. All-in sustaining cost per Au eq. oz. sold was $987 for full-year 2020, which is within the 2020 guidance range, compared with $983 for full-year 2019.

All-in sustaining cost per Au oz. sold on a by-product basis decreased to $991 in Q4 2020, compared with $1,041 in Q4 2019. All-in sustaining cost per Au oz. sold on a by-product basis was $970 for full-year 2020, in line with $974 in the previous year.

Operating cash flow: Adjusted operating cash flow2 for Q4 2020 increased by 36% to $527.6 million, compared with $387.6 million for Q4 2019.

Adjusted operating cash flow2 for the full year increased 59% to $1,912.7 million compared with $1,201.5 million the previous year, primarily due to an increase in margins.

Net operating cash flow increased 67% to $681.1 million for Q4 2020, compared with $408.6 million for Q4 2019. Net operating cash flow for full-year 2020 was $1,957.6 million, a 60% increase compared with $1,224.9 million for full-year 2019.

Free cash flow2: Free cash flow more than tripled to $382.8 million in Q4 2020, a quarterly record, compared with $110.7 million for Q4 2019.

Kinross delivered record free cash flow of $1,041.5 million for full-year 2020, which was significantly higher compared with $164.7 million the previous year.

Earnings: Adjusted net earnings2 more than doubled to $335.1 million, or $0.27 per share, for Q4 2020, compared with $156.0 million, or $0.13 per share, for Q4 2019.

Full-year 2020 adjusted net earnings2 more than doubled to $966.8 million, or $0.77 per share, compared with adjusted net earnings of $422.9 million, or $0.34 per share, for full-year 2019, mainly due to higher margins partially offset by an increase in depreciation, depletion and amortization and income tax expense.

Reported net earnings4 increased 50% to $783.3 million, or $0.62 per share, for Q4 2020, compared with $521.5 million, or $0.41 per share, for Q4 2020.

Reported net earnings4 in full-year 2020 increased 87% to $1,342.4 million, or $1.07 per share, compared with $718.6 million, or $0.57 per share, in 2019. The increase was primarily as a result of the increase in operating earnings, including impairment reversals, partially offset by the increase in income tax expense.

Included in reported net earnings in 2020 is a non-cash, after-tax impairment reversal of $612.8 million at Tasiast, Lobo-Marte and Chirano of $299.5 million, $180.4 million, and $132.9 million, respectively. The impairment reversals were related to property, plant and equipment mainly due to higher long-term gold price assumptions.

Capital expenditures: Capital expenditures were $298.3 million for Q4 2020, compared with $297.9 million for Q4 2019.

Capital expenditures for full-year 2020 were $916.1 million, within the Company’s annual guidance, and a $144.1 million decrease compared with $1,060.2 in 2019. The decrease was primarily as a result of reduced spending at Tasiast and the completion of the Bald Mountain Vantage Complex project and the construction of the Round Mountain Phase W project in 2019. These decreases were partially offset by additional mining equipment purchased at Paracatu.

Balance sheet

As of December 31, 2020, Kinross had cash and cash equivalents of $1,210.9 million, compared with $575.1 million at December 31, 2019. The increase was primarily due to strong cash flow and the $200 million drawdown on the Tasiast project financing. The increase in Kinross’ cash position was partially offset by the first 50% payment for the Chulbatkan acquisition5, payment for the 70% interest in the Peak development project, along with the $100 million in debt repayments on the revolving credit facility, and total interest and dividend payments.

The Company had additional available credit of $1,563.6 million as of December 31, 2020 and total liquidity of approximately $2.8 billion. Kinross had total debt of approximately $1.9 billion at year-end 2020, of which $500 million in senior notes are due in September 2021, which the Company intends to repay.

Kinross has further improved its debt metrics, including its net debt to EBITDA ratio, and continues to prioritize maintaining and strengthening its investment grade balance sheet.

________________________ 5 The second 50% payment was made in January 2021, which the Company also paid in cash.

Operating results

Mine-by-mine summaries for 2020 fourth-quarter and full-year operating results may be found on pages 13 and 17 of this news release. Highlights include the following:

Americas

Paracatu production for the full year decreased compared with the record production in the previous year mainly due to anticipated lower recoveries and throughput as result of the mine plan, partially offset by higher grades. Full-year cost of sales per ounce sold was largely in line with 2019. Paracatu finished the year with a strong fourth quarter, increasing production and lowering cost of sales per ounce sold compared with Q3 2020. The production increase in Q4 2020 was mostly due to higher mill grades, while cost of sales per ounce sold was lower mainly due to higher production and lower maintenance costs. Mine plan optimization work at Paracatu added 911 Au koz. to its mineral reserve estimates before depletion, extending mine life by one year to 2032.

At Round Mountain, full-year production was lower compared with 2019 mainly due to anticipated lower mill grades related to mine sequencing, while fullyear cost of sales per ounce sold decreased primarily due to lower operating waste mined. In Q4 2020, production increased compared with the previous quarter mainly as a result of higher grades, mill recoveries and ounces recovered from the heap leach pads. Cost of sales per ounce sold increased quarterover-quarter, which was mostly due to higher operating waste mined, which was anticipated as part of the mine sequencing and is expected to continue in 2021.

At Bald Mountain, full-year production increased slightly compared with 2019 mainly due to higher grades. Cost of sales per ounce sold increased year-overyear primarily as a result of higher operating waste mined. Bald Mountain finished the year well, with production largely in line quarter-over-quarter, while cost of sales per ounce sold decreased, mainly due to lower maintenance costs.

Fort Knox performed well in 2020, as full-year production increased year-over-year, mainly as a result of higher mill grades and mill throughput. Cost of sales per ounce sold for full-year 2020 was largely in line with the previous year. In Q4 2020, production and cost of sales per ounce sold were lower quarter-overquarter mainly due to an anticipated decrease in mill grades and a re-sequencing in mining which prioritized capital stripping. Construction at the Gilmore project was completed on time and under budget, and first production from the new heap leach pad was achieved in January 2021.

Russia

The Russia region continued to perform well in 2020 while managing pandemic-related challenges as remote, camp-based operations. The combined full-year production at Kupol and Dvoinoye decreased slightly compared with full-year 2019, mainly as a result of anticipated lower grades. Full-year cost of sales per ounce sold was in line with the previous year. Production during Q4 2020 increased compared with the previous quarter, mainly due to higher grades. Cost of sales per ounce sold was higher versus Q3 2020 mainly as a result of an increase in mine cost per tonne at Dvoinoye, as the last tonnes were mined in November 2020. Although mining activities were completed at Dvoinoye as planned, stockpiles are expected to be processed at the Kupol mill over the next three years. Kupol’s brownfields exploration program once again added to the mine’s mineral reserve estimates and extended mine life by one year to 2025, with opportunities for further mine life extensions.

West Africa

In 2020, Tasiast delivered record high annual production and record low cost of sales per ounce sold for the second consecutive year. The mine performed well in 2020 despite the impacts of COVID-19 and the strike in Q2 2020, and finished the year with a strong fourth quarter. Full-year production increased compared with the previous year mainly due to higher mill throughput and grades, while full-year cost of sales per ounce sold decreased mainly as a result of higher production. Tasiast achieved record quarterly production in Q4 2020 primarily as a result of higher mill throughput. Tasiast also reduced cost of sales per ounce quarter-over-quarter mainly due to lower processing costs.

At Chirano, full-year production decreased compared with 2019 mainly due to lower grades, throughput and recoveries. Full-year cost of sales per ounce sold was higher mainly due to higher milling and maintenance costs. In Q4 2020, production was lower quarter-over-quarter mainly due to lower grades from the underground operations. Cost of sales per ounce sold decreased quarter-over-quarter primarily as a result of lower power and milling costs. The exploration program at Chirano continued to yield excellent results and added to the operation’s mineral reserve estimates, helping extend mine life by three years to 2025, with opportunities for further mine life extensions.

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 page 25 of this news release.

Production guidance1

In 2021, Kinross expects to produce 2.4 million Au eq. oz. (+/- 5%) from its operations, which is consistent with 2020 production. In 2022 and 2023, annual production is expected to increase to approximately 2.7 million Au eq. oz. and 2.9 million Au eq. oz., respectively.

Annual gold equivalent production guidance (+/- 5%)
20212.4 million oz.
20222.7 million oz.
20232.9 million oz.

Kinross’ 2021 production forecast was impacted by the expected deferred production of approximately 100k Au eq. oz. at Tasiast from 2021 to 2022 due to lower mining rates as a result of COVID-19 impacts in 2020 and the strike in Q2 2020.

In 2021, production is expected to progressively increase quarter-over-quarter, largely driven by higher expected production in the second half of the year at Tasiast. The Company’s three largest mines – Paracatu, Kupol and Tasiast – are expected to account for approximately 60% of the total production in 2021 and are expected to be the lowest cost mines in the portfolio.

The expected production growth in 2022 and 2023 represents additional ounces enabled by planned life of mine extensions and projects resulting from the Company’s previous three-year major capital reinvestment phase, which established a low-risk and timely platform for growth in the current gold price environment. Kinross’ comprehensive continuous improvement programs, which have enhanced productivity and operational efficiencies, and its exploration strategy focused on promising prospects around existing operations, also contributed to the anticipated production increase.

Cost of sales guidance1

Production cost of sales is expected to be $790 per Au eq. oz. (+/- 5%) for 2021. The year-over-year increase is mainly due to higher operating waste mined as a result of planned mine sequencing, particularly at the U.S. mines and at Tasiast in the second half of the year. The delayed access to higher grade ore at Tasiast as a result of COVID-19 impacts and a decrease in low-cost ounces from Dvoinoye, which completed mining in November 2020 as planned, also affected 2021 cost of sales guidance. Cost of sales per ounce is expected to increase quarter-over-quarter during the year, largely driven by anticipated increases in operating waste mined.

Cost of sales per ounce sold is expected to decrease in 2022 and return to levels that are largely in line with 2020. The decrease is expected to be driven by lower-cost ounces from Tasiast and La Coipa in 2022 and higher total production.

The Company expects all-in sustaining cost to be $1,025 per ounce sold (+/- 5%) on both a gold equivalent and by-product basis for 2021. The increase is mainly driven by the expected higher cost of sales per ounce.

2021 by-product production and cost guidance

2021 Guidance Accounting basis

(+/- 5%)

Gold equivalent basis

Production (Au eq. oz.)1,2 2.4 million Average production cost of sales per Au eq. oz. 1,2 $790 All-in sustaining cost per Au eq. oz. 1,2 $1,025

By-product basis

Gold ounces1 2.4 million Silver ounces 4.0 million Average production cost of sales per Au oz. 1,2 $770

2021 regional production and cost guidance1

Forecast 2021 Forecast 2021 production Percentage of total Region production cost of sales

forecast production6 (Au eq. oz.) (per Au eq. oz.)2

Americas1.4 million(+/- 5%)58%$800(+/- 5%)
West Africa (attributable)520,000(+/- 10%)22%$870(+/- 10%)
Russia480,000(+/- 5%)20%$650(+/- 5%)
Total2.4 million(+/- 5%)100%$790(+/- 5%)

Material assumptions used to forecast 2021 production cost of sales are as follows:

  • a gold price of $1,500 per ounce;
  • a silver price of $20 per ounce;
  • an oil price of $55 per barrel;
  • foreign exchange rates of:

◦5.0 Brazilian reais to the U.S. dollar;

◦1.30 Canadian dollars to the U.S. dollar;

◦70 Russian roubles to the U.S. dollar;

◦725 Chilean pesos to the U.S. dollar;

◦5.50 Ghanaian cedis to the U.S. dollar;

◦35 Mauritanian ouguiyas to the U.S. dollar; and ◦0.90 U.S. dollar to the Euro.

Taking into account existing currency and oil hedges:

  • a 10% change in foreign currency exchange rates would be expected to result in an approximate $14 impact on production cost of sales per ounce7;
  • specific to the Russian rouble, a 10% change in this exchange rate would be expected to result in an approximate $15 impact on Russian production cost of sales per ounce;
  • specific to the Brazilian real, a 10% change in this exchange rate would be expected to result in an approximate $25 impact on Brazilian production cost of sales per ounce;
  • a $10 per barrel change in the price of oil would be expected to result in an approximate $3 impact on production cost of sales per ounce; and
  • a $100 change in the price of gold would be expected to result in an approximate $5 impact on production cost of sales per ounce as a result of a change in royalties.

________________________ 6 The percentages are calculated based on the mid-point of regional 2020 forecast production.

7 Refers to all of the currencies in the countries where the Company has mining operations, fluctuating simultaneously by 10% in the same direction, either appreciating or depreciating, taking into consideration the impact of hedging and the weighting of each currency within our consolidated cost structure.

Capital expenditures guidance

Total capital expenditures for 2021 are forecast to be approximately $900 million (+/- 5%) and are summarized in the table below.

Kinross’ capital expenditures outlook for 2022 and 2023 is $800 million and $700 million, respectively, and is based on Kinross’ current baseline production guidance. However, as previously indicated, capital expenditures for 2022 and 2023 exclude additional opportunities in the Company’s pipeline and are therefore expected to increase to approximate 2021 levels if additional projects are approved, including Round Mountain Phase S, Peak, Lobo-Marte and other projects.8

Forecast 2021 Forecast 2021 Total forecast capital sustaining capital non-sustaining capital

Region (+/- 5%) (million)

(million) (million)

Americas $270 $295 $565

West Africa$40$225$265
Russia$25$40$65
Corporate$5$0$5
TOTAL$340$560$900

2021 sustaining capital includes the following forecast spending estimates:

$70 million (Americas); $10 million (Russia); $10 million (West Africa)

  • Mine development:

$75 million (Americas); $10 million (Russia); $5 million (West Africa)

  • Mobile equipment:

$40 million

  • Tailings facilities:

$25 million (Americas); $10 million (West Africa)

  • Mill facilities:

$30 million (Americas)

  • Leach facilities:

2021 non-sustaining capital includes the following forecast spending estimates:

$180 million

  • La Coipa Restart:

$130 million

  • Development and growth projects and studies:

$125 million

  • Tasiast West Branch stripping:

$75 million

  • Tasiast 24k project:

$30 million

  • Round Mountain Phase W stripping:

$20 million

  • Fort Knox Gilmore stripping:

________________________ 8 Kinross’ capital expenditures estimates for 2021 – 2023 includes preliminary capital estimates of approximately $330 million for the Udinsk project.

Other 2021 guidance

The 2021 forecast for exploration is approximately $120 million, all of which is expected to be expensed. The increase compared with full-year 2020 will facilitate an enhanced program to follow-up on 2020’s exploration success and exploration projects acquired in 2020, such as the Kayenmyvaam and Kavralyanskaya projects near Kupol, Chulbatkan, and the Peak development project in Alaska.

The 2021 forecast for overhead (general and administrative and business development expenses) is approximately $155 million, which is largely in line with last year’s guidance. The Company has made cost improvements over recent years, with 2021 annual overhead guidance down $50 million over the past five years.

Other operating costs expected to be incurred in 2021 are approximately $150 million, which are principally due to $70 million in pandemic-related mitigation measures.

Based on an assumed gold price of $1,500 per ounce and other budget assumptions, tax expense is expected to be $140 million and taxes paid is expected to be $200 million. Adjusting the Brazilian real and Russian rouble to the respective exchange rates of 5.20 and 74 to the U.S. dollar in effect at December 31, 2020, tax expense would be expected to be $160 million. Tax expense is expected to increase by 26% of any profit resulting from higher gold prices. Taxes paid is expected to increase by a range of $20 million to $26 million for every $100 increase in the realized gold price.

Depreciation, depletion and amortization is forecast to be approximately $390 (+/-5%) per Au eq. oz.

Interest paid is forecast to be approximately $110 million, which includes $55 million of capitalized interest.

Environment, Social, Governance highlights (ESG)

Kinross continued to deliver on its ESG commitments in 2020, with the Company’s performance attributable to its values, strong policies and governance systems. ESG is embedded in Kinross’ culture, strategy and operations, and directly contributes to its license to operate.

The Company’s ESG performance consistently ranks in the top quartile of its peer group, as measured by Sustainalytics, MSCI, ISS, Vigeo, Refinitiv and S&P’s Dow Jones Sustainability Index. Kinross was recognized through inclusion in the S&P Global Sustainability Yearbook 2021, marking the Company’s eighth consecutive year in the industry’s top 10 for ESG performance, and its “A” level rating by MSCI. As a World Gold Council member, Kinross played an active role in the development of the Responsible Gold Mining Principles and is making good progress on the process of conformance.

Managing the risks associated with the COVID-19 pandemic was a key area of focus in 2020, as the Company implemented rigorous safety measures across its global portfolio to safeguard its workforce. Kinross provided approximately $6 million in the communities where the Company operates towards efforts to combat COVID-19 impacts, including support for health services, food security and bolstering local economies. By ensuring operational continuity, Kinross also maintained the economic benefits that its operations provide to host countries and communities during a challenging time.

Despite the impact of COVID-19, Kinross’ overall 2020 safety performance was in line with its three-year averages, with injury frequency rates among the lowest in the industry. This was overshadowed by a mine site fatality at Round Mountain, the first for the Company since 2017. Immediately following the incident Kinross held a global Safety Stand-down to reflect, reiterate the importance of safety, identify tangible actions to continually improve processes, and share insights and best practices across its global portfolio.

Kinross’ strong record of environmental performance was illustrated in World Wildlife Fund (WWF) Russia’s environmental transparency rating of mining and metals companies, ranking first in three of the past four years, including the top ranking in 2020. In Alaska, Kinross’ successful reclamation of the True North mine, the first large metal mine to be returned to the State and opened for public access, was publicly endorsed by the Alaska Department of Natural Resources and continues a long and successful track record of responsible reclamation by the Company.

Kinross continued to improve its disclosure on climate, including benchmarking against the recommendations made by the Task Force on Climate-related Financial Disclosures (TCFD). In 2020, the Company conducted a climate risk and opportunity assessment across all sites, including scenario analysis of projected climate change.

Social engagement was strong despite the limitations imposed by COVID-19 restrictions, with approximately 105,000 stakeholder interactions conducted during 2020. Kinross continued to provide significant economic benefits through taxes, support of local suppliers and employment, with more than 98% of Kinross employees from its host countries. The Company’s community investments supported over 938,000 beneficiaries during the year. Kinross also advanced its inclusion and diversity goals in 2020, with 33% female representation on the Board, and a commitment to Canada’s BlackNorth Initiative and its anti-racism pledge.

In the area of corporate governance, Kinross maintained its strong performance. The Company’s Board of Directors succession program has brought in seven new directors since 2015 and enabled effective succession planning. The Company was also recognized as the top mining company in The Globe and Mail’s annual corporate governance ranking.

For more information on Kinross’ sustainability performance, see the Company’s 2019 Sustainability Report, published in August 2020. The Report follows the Global Reporting Initiative (GRI) framework, fulfills Kinross’ commitment as a participant in the UN Global Compact and, for the first time, included indicators and metrics from the SASB (Sustainability Accounting Standards Board) Metals and Mining Standard.

Board update

Mr. John A. Brough, who had been a Kinross Board member since 1994 and was the Chair of the Board’s Audit and Risk Committee for many years, retired effective December 31, 2020. Kinross’ management and Board would like to thank Mr. Brough for his long and distinguished directorship on the Board and his many significant contributions to the Company.

As previously disclosed, Mr. Glenn A. Ives has assumed the role of Chair of the Audit and Risk Committee.

Conference call details

In connection with this news release, Kinross will hold a conference call and audio webcast on Thursday, February 11, 2021 at 8 a.m. ET to discuss the results, followed by a question-and-answer session. To access the call, please dial:

Canada & US toll-free – +1 (833) 968-2237; Passcode: 9694745 Outside of Canada & US – +1 (825) 312-2059; Passcode: 9694745

Replay (available up to 14 days after the call):

Canada & US toll-free – +1 (800) 585-8367; Passcode: 9694745 Outside of Canada & US – +1 (416) 621-4642; Passcode: 9694745

You may also access the conference call on a listen-only basis via webcast at our website www.kinross.com. The audio webcast will be archived on our website at www.kinross.com.

This release should be read in conjunction with Kinross’ 2020 year-end Financial Statements and Management’s Discussion and Analysis report at www.kinross.com. Kinross’ 2020 year-end Financial Statements and Management’s Discussion and Analysis have been filed with Canadian securities regulators (available at www.sedar.com) and furnished with the U.S. Securities and Exchange Commission (available at www.sec.gov). Kinross shareholders may obtain a copy of the financial statements free of charge upon request to the Company.

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).

Media Contact

Louie Diaz Vice-President, Corporate Communications phone: 416-369-6469 [email protected]

Investor Relations Contact

Tom Elliott Senior Vice-President, Investor Relations phone: 416-365-3390 [email protected]

Review of operations

Three months ended December 31, Gold equivalent ounces Production cost of Production cost of Produced Sold sales/equivalent sales ($millions)

ounce sold

20202019202020192020201920202019
Fort Knox57,52353,18357,84955,040$ 51.1 $65.9 $883 $1,197
Round Mountain89,422103,50189,709108,40262.279.3693732
Bald Mountain51,48766,14757,08765,38145.449.8795762
Paracatu148,218140,224150,881140,43091.2111.1604791
Maricunga4143,2212,03517,4551.111.7541670
Americas Total347,064366,276357,561386,708251.0317.8702822
Kupol130,731132,009131,541135,08379.183.3601617
Russia Total130,731132,009131,541135,08379.183.3601617
Tasiast111,028102,973107,865101,94060.850.4564494
Chirano (100%)39,12148,98440,20247,18645.649.01,1341,038
West Africa Total150,149151,957148,067149,126106.499.4719667
Operations Total627,944650,242637,169670,917436.5500.5685746

Less Chirano non-controlling interest

(3,912)(4,020)(4.6)
(10%)(4,898)(4,718)(4.9)
Attributable Total624,032645,344633,149666,199$ 431.9 $495.6 $ 682 $ 744

Years ended December 31, Gold equivalent ounces Production cost of Production cost of Produced Sold sales/equivalent sales ($millions)

ounce sold

20202019202020192020201920202019
Fort Knox237,925200,263238,349200,323$ 251.3 $213.7 $1,054 $1,067
Round Mountain324,277361,664319,228360,739219.6250.6688695
Bald Mountain191,282187,961186,549177,802155.9136.6836768
Paracatu542,435619,563541,506619,009358.9412.3663666
Maricunga3,54638,6018,9473.731.5414
Americas Total1,299,465 1,408,052 1,294,579 1,401,629989.41,044.7764745
Kupol510,743527,343510,973526,458304.5314.1596597
Russia Total510,743527,343510,973526,458304.5314.1596597
Tasiast406,509391,097403,789382,803235.7230.4584602
Chirano (100%)166,590201,296166,207201,868196.1189.71,180940
573,099592,393569,996584,671431.8420.1758719

43,756 720

West Africa Total

Operations Total 2,383,307 2,527,788 2,375,548 2,512,758 1,725.7 1,778.9 726 708 Less Chirano non-controlling interest (10%) (16,659) (20,129) (16,621) (20,186) (19.6) (19.0)

Attributable Total 2,366,648 2,507,659 2,358,927 2,492,572 $ 1,706.1 $ 1,759.9 $ 723 $ 706

Consolidated balance sheets

(expressed in millions of U.S. dollars, except share amounts)

As at

December 31, December 31, 2020 2019

Assets

Current assets

Cash and cash equivalents$ 1,210.9 $575.1
Restricted cash13.715.2
Accounts receivable and other assets122.3137.4
Current income tax recoverable29.943.2
Inventories1,072.91,053.8

2,449.7 1,824.7 Non-current assets

Property, plant and equipment7,653.56,340.0
Goodwill158.8158.8
Long-term investments113.0126.2
Investment in joint venture18.318.4
Other long-term assets537.2572.7
Deferred tax assets2.735.2
Total assets$ 10,933.2 $9,076.0

Liabilities

Current liabilities Accounts payable and accrued liabilities $ 479.2 $ 469.3

Current income tax payable114.568.0
Current portion of long-term debt and credit facilities499.7-
Current portion of provisions63.857.9
Other current liabilities49.720.3
Deferred payment obligation141.5-

1,348.4 615.5 Non-current liabilities

Long-term debt and credit facilities1,424.21,837.4
Provisions861.1838.6
Long-term lease liabilities46.338.9
Other long-term liabilities102.4108.5
Deferred tax liabilities487.8304.5
Total liabilities$ 4,270.2 $3,743.4

Equity

Common shareholders' equity Common share capital $ 4,473.7 $ 14,926.2 Contributed surplus 10,709.0 242.1 Accumulated deficit (9,829.4)

(8,562.5)

Accumulated other comprehensive income (loss)(23.7)(20.4)
Total common shareholders' equity6,596.55,318.5
Non-controlling interests66.514.1
Total equity6,663.05,332.6
Total liabilities and equity$ 10,933.2 $9,076.0

Common shares

Authorized Unlimited Unlimited Issued and outstanding 1,258,320,461 1,253,765,724

Consolidated statements of operations

(expressed in millions of U.S. dollars, except share and per share amounts)

Years ended December 31, December 31, 2020 2019

Revenue

Metal sales $ 4,213.4 $ 3,497.3

Cost of sales

Production cost of sales1,725.71,778.9
Depreciation, depletion and amortization842.3731.3
Reversals of impairment charges - net(650.9)(361.8)
Total cost of sales1,917.12,148.4
Gross profit2,296.31,348.9
Other operating expense186.5108.5
Exploration and business development92.5113.5
General and administrative117.9135.8
Operating earnings1,899.4991.1
Other income - net7.472.7
Finance income4.37.9
Finance expense(112.6)(107.9)
Earnings before tax1,798.5963.8
Income tax expense - net(439.8)(246.7)
Net earnings$ 1,358.7 $717.1

Net earnings (loss) attributable to:

Non-controlling interests $ 16.3 ($1.5) Common shareholders $ 1,342.4 $ 718.6

Earnings per share attributable to common shareholders

Basic $ 1.07 $ 0.57 Diluted $ 1.06 $ 0.57

Weighted average number of common shares outstanding (millions)

Basic 1,257.2 1,252.3 Diluted 1,268.0 1,262.3

Consolidated statements of cash flows

(expressed in millions of U.S. dollars)

Years ended

December 31, December 31, 2020 2019

Net inflow (outflow) of cash related to the following activities:

Operating:

Net earnings $ 1,358.7 $ 717.1 Adjustments to reconcile net earnings to net cash provided from operating activities:

Depreciation, depletion and amortization 731.3

842.3

Reversals of impairment charges - net(650.9)(361.8)
Share-based compensation expense13.714.3
Finance expense112.6107.9
Deferred tax expense217.941.1
Foreign exchange losses (gains) and other11.8(53.2)
Reclamation expense (recovery)6.6(11.9)

Changes in operating assets and liabilities:

Accounts receivable and other assets(120.9)(64.5)
Inventories(6.8)53.8
Accounts payable and accrued liabilities279.0165.9

2,064.0 1,340.0

Cash flow provided from operating activities

Income taxes paid (106.4) (115.1)

Net cash flow provided from operating activities 1,957.6 1,224.9

Investing:

Additions to property, plant and equipment(916.1)(1,060.2)
Interest paid capitalized to property, plant and equipment(47.9)(45.0)
Acquisitions(267.0)(30.0)
Net (additions to) proceeds from the sale of long-term investments and other assets(5.9)71.6
Net proceeds from the sale of property, plant and equipment8.431.9
Increase in restricted cash - net(23.5)(2.5)
Interest received and other - net2.97.6
Net cash flow used in investing activities(1,249.1)(1,026.6)

Financing:

Proceeds from drawdown of debt950.0300.0
Repayment of debt(850.0)(200.0)
Interest paid(63.1)(55.6)
Payment of lease liabilities(20.7)(14.3)
Dividends paid to common shareholders(75.5)-
Dividends paid to non-controlling interest(6.0)(5.0)
Other - net(2.4)-
Net cash flow (used in) provided from financing activities(67.7)25.1
Effect of exchange rate changes on cash and cash equivalents(5.0)2.7
Increase in cash and cash equivalents635.8226.1
Cash and cash equivalents, beginning of period575.1349.0
Cash and cash equivalents, end of period$ 1,210.9 $575.1
Operating Summary
MinePeriodOwnershipTonnes Ore Mined (a)Ore Processed (Milled) (a)Ore Processed (Heap Leach) (a)Grade (Mill)Grade (Heap Leach)Recovery (b)(h)Gold Eq Production (e)Gold Eq Sales (e)Production cost of salesProduction cost of sales/ozCap Ex (g)DD&A
(%)('000 tonnes)('000 tonnes)('000 tonnes)(g/t)(g/t)(%)(ounces)(ounces)($ millions)($/ounce)($ millions)($ millions)
Fort KnoxQ4 20201008,4562,5837,0210.610.2080%57,52357,849$ 51.1$ 883$ 46.0$ 23.2
Q3 2020 Q2 2020 Q1 2020 Q4 2019100 100 100 1007,202 6,116 6,795 7,6482,664 2,048 1,859 2,6155,497 4,783 5,694 5,4980.67 0.73 0.60 0.430.19 0.23 0.23 0.2083% 83% 80% 81%72,705 56,031 51,667 53,18373,267 56,465 50,768 55,040$ 69.5 66.1 64.6 65.9$ 949 $ 1,171 $ 1,272 $ 1,197$ 39.7 33.9 19.1 37.1$ 27.9 23.3 22.8 25.0
Q4 20201006,5429886,3150.920.5083%89,42289,709$ 62.2$ 693$ 41.2$ 15.2

Q3 100 6,085 972 5,884 0.79 0.39 83% 76,039 72,717 $ 49.7 $ 683 $ 39.2 $ 11.6 2020 Round Q2 100 4,431 911 4,357 0.80 0.36 84% 74,351 71,087 51.6 $ 726 36.9 10.2 Mountain 2020 Q1 100 3,700 954 3,594 0.83 0.43 83% 84,465 85,715 56.1 $ 654 41.8 12.6 2020 Q4 100 7,408 882 7,140 1.00 0.36 82% 103,501 108,402 79.3 $ 732 62.7 12.6 2019

Bald MountainQ4 20201006,076-6,076-0.42nm51,48757,087$ 45.4$ 795$ 19.3$ 44.3
Q3 2020 Q2 2020 Q1 2020 Q4 2019100 100 100 1004,922 4,051 3,254 2,928- - - -4,922 4,051 3,254 3,007- - - -0.56 0.53 0.55 0.48nm nm nm nm49,339 48,368 42,087 66,14737,492 49,594 42,376 65,381$ 32.1 42.7 35.7 49.8$ 856 $ 861 $ 842 $ 762$ 23.4 29.6 31.5 54.6$ 27.1 30.2 26.7 36.3
ParacatuQ4 202010012,61112,655-0.51-77%148,218150,881$ 91.2$ 604$ 61.6$ 58.2
Q3 2020 Q2 2020 Q1 2020 Q4 2019100 100 100 10012,468 15,223 12,350 12,39313,673 14,703 13,224 14,168- - - -0.38 0.40 0.39 0.38- - - -74% 74% 75% 76%131,000 138,851 124,367 140,224128,782 140,646 121,197 140,430$ 96.6 83.6 87.5 111.1$ 750 $ 594 $ 722 $ 791$ 27.2 49.1 14.4 21.4$ 42.4 45.2 37.7 42.8
MaricungaQ4 2020100-----nm4142,035$ 1.1$ 541$ -$ 0.1
Q3 2020 Q2 2020 Q1 2020 Q4 2019100 100 100 100- - - -- - - -- - - -- - - -- - - -nm nm nm nm3,132 - - 3,2214,442 1,159 1,311 17,455$ 1.0 0.8 0.8 11.7$ 225 $ 690 $ 610 $ 670$ - - - -$ 0.2 0.3 0.3 0.4
RussiaKupol (c)(d) (f)Q4 2020100293432-9.24-95%130,731131,541$ 79.1$ 601$ 15.1$ 31.0
Q3 2020 Q2 2020 Q1 2020 Q4 2019100 100 100 100365 386 500 468430 416 425 435- - - -8.99 9.73 8.73 9.14- - - -95% 95% 95% 95%128,144 130,983 120,885 132,009126,637 130,771 122,024 135,083$ 69.2 79.3 76.9 83.3$ 546 $ 606 $ 630 $ 617$ 6.1 5.9 5.6 15.8$ 27.0 31.1 34.4 34.8
West AfricaTasiastQ4 20201001,2061,470-2.48-94%111,028107,865$ 60.8$ 564$ 65.0$ 46.5
Q3 2020 Q2 2020 Q1 2020 Q4 2019100 100 100 1001,338 1,134 1,160 1,1291,244 1,168 1,467 1,379- - - -2.78 2.40 2.31 2.39- - -94% 94% 95% 96%103,065 88,579 103,837 102,973103,295 98,679 93,950 101,940$ 65.2 57.8 51.9 50.4$ 631 $ 586 $ 552 $ 494$ 50.0 40.6 69.2 86.1$ 50.2 54.8 40.3 35.0
Chirano - 100%Q4 2020100915801-1.75-88%39,12140,202$ 45.6$ 1,134$ 11.3$ 13.1
Q3 2020 Q2 2020 Q1 2020 Q4 2019100 100 100 100768 679 690 737815 785 873 844- - - -1.87 1.85 1.73 2.00- - - -88% 88% 88% 91%44,320 38,683 44,465 48,98446,586 40,084 39,335 47,186$ 56.1 46.6 47.8 49.0$ 1,204 $ 1,163 $ 1,215 $ 1,038$ 5.0 5.8 5.1 8.0$ 16.1 13.1 15.9 21.4
Chirano - 90%Q4 202090915801-1.75-88%35,20936,182$ 41.0$ 1,134$ 10.2$ 11.8
Q3 2020 Q2 2020 Q1 2020 Q4 201990 90 90 90768 679 690 737815 785 873 844- - - -1.87 1.85 1.73 2.00- - - -88% 88% 88% 91%39,888 34,815 40,019 44,08641,927 36,076 35,401 42,468$ 50.5 41.9 43.0 44.1$ 1,204 $ 1,163 $ 1,215 $ 1,038$ 4.5 5.2 4.7 7.2$ 14.5 11.8 14.3 19.3

(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: 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% Q4 2019: 65.63 g/t, 85%.

(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: Q4 2020: 77.02:1, Q3 2020: 78.68:1; Q2 2020: 104.49:1, Q1 2020: 93.34:1, Q4 2019: 85.59:1.

(f) Dvoinoye ore processed and grade were as follows: 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; Q4 2019: 100,685, 9.89 g/t.

(g) "Capital expenditures" is as reported as “Additions to property, plant and equipment” on the consolidated statement of cash flows and excludes “Interest paid capitalized to property, plant and equipment”.

(h) "nm" means not meaningful

Reconciliation of non-GAAP financial measures

The Company has included certain non-GAAP financial measures in this document. These measures are not defined under International Financial Reporting Standards (IFRS) and should not be considered in isolation. The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. The inclusion of these measures is meant to provide additional information and should not be used as a substitute for performance measures prepared in accordance with IFRS. These measures are not necessarily standard and therefore may not be comparable to other issuers.

Adjusted net earnings attributable to common shareholders and adjusted net earnings per share are non-GAAP measures which determine the performance of the Company, excluding certain impacts which the Company believes are not reflective of the Company’s underlying performance for the reporting period, such as the impact of foreign exchange gains and losses, reassessment of prior year taxes and/or taxes otherwise not related to the current period, impairment charges (reversals), gains and losses and other one-time costs related to acquisitions, dispositions and other transactions, and non-hedge derivative gains and losses. Although some of the items are recurring, the Company believes that they are not reflective of the underlying operating performance of its current business and are not necessarily indicative of future operating results. Management believes that these measures, which are used internally to assess performance and in planning and forecasting future operating results, provide investors with the ability to better evaluate underlying performance, particularly since the excluded items are typically not included in public guidance. However, adjusted net earnings and adjusted net earnings per share measures are not necessarily indicative of net earnings and earnings per share measures as determined under IFRS.

The following table provides a reconciliation of net earnings to adjusted net earnings for the periods presented:

Adjusted Net Earnings Three months ended Years ended

(expressed in millions of U.S dollars, except per share amounts)December 31,December 31,
2020201920202019
Net earnings attributable to common shareholders - as reported$ 521.5$ 718.6
$ 783.3$ 1,342.4

Adjusting items:

Foreign exchange losses (gains) 8.2 6.0 7.3 (0.6) Foreign exchange losses (gains) on translation of tax basis and foreign

exchange on deferred income taxes within income tax expense4.6(12.3)101.21.6
Taxes in respect of prior periods39.7(0.1)51.333.3
Reclamation and remediation expenses (recoveries)6.6(11.9)6.6(11.9)
Reversals of impairment charges - net(a)(602.6)(361.8)(650.9)(361.8)
COVID-19 and Tasiast strike costs(b)23.3-72.4-
U.S. CARES Act net benefit--
  • (25.4)
Gain on disposition of royalty portfolio-(72.7)-(72.7)
Fort Knox pit wall slide related costs-8.0-25.1
Restructuring costs---12.2
Other3.12.70.27.6
Tax effect of the above adjustments68.976.661.771.5
(448.2)(365.5)(375.6)(295.7)
Adjusted net earnings attributable to common shareholders$ 335.1 $156.0$ 966.8$ 422.9
Weighted average number of common shares outstanding - Basic1,258.31,253.51,257.21,252.3
Adjusted net earnings per share$ 0.27 $0.13$ 0.77$ 0.34

(a) During the year ended December 31, 2020, the Company recorded non-cash reversals of impairment charges of $689.0 million related to property, plant and equipment at Tasiast, Chirano and Lobo-Marte. The tax impacts on the impairment reversals at Chirano and Lobo-Marte were expenses of $71.6 million and $4.6 million, respectively. In addition, the Company recorded impairment charges of $38.1 million related to certain supplies inventories. During the year ended December 31, 2019, the Company recorded non-cash reversals of impairment charges of $361.8 million related to property, plant and equipment at Paracatu and Tasiast. The tax impact on the impairment reversal at Paracatu was an expense of $68.2 million. There were no tax impacts on the impairment reversals at Tasiast in 2020 and 2019.

(b) During the year ended December 31, 2020, $64.1 million (fourth quarter of 2020 - $23.3 million) of COVID-19 related labour, health & safety, donations and other support program costs, as well as $8.3 million of Tasiast strike costs, were incurred.

Free cash flow is a non-GAAP measure and is defined as net cash flow provided from operating activities less capital expenditures. The Company believes that that this measure, which is used internally to evaluate the Company’s underlying cash generation performance and the ability to repay creditors and return cash to shareholders, provides investors with the ability to better evaluate the Company’s underlying performance. However, the free cash flow measure is not necessarily indicative of operating earnings or net cash flow from operations as determined under IFRS.

The following table provides a reconciliation of free cash flow for the periods presented:

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