For more information, please see Kinross’ 2017 second-quarter Financial Statements and MD&A
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5
p. 1 Kinross reports 2017 second-quarter results www.kinross.com
For more information,
please see Kinross’ 2017 second-quarter
Financial Statements and MD&A
at www.kinross.com
NEWS RELEASE
Kinross reports 2017 second-quarter results
Company remains on track to meet annual production and cost guidance
Strengthened balance sheet, with liquidity position of approximately $2.5 billion
Toronto, Ontario – Aug 2, 2017 – Kinross Gold Corporation (TSX: K, NYSE: KGC) today announced its results
for the second-quarter ended June 30, 2017.
(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 19 of this release. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.)
2017 second-quarter highlights:
Production1: 694,874 gold equivalent ounces (Au eq. oz.), compared with 671,267 Au eq. oz. in Q2 2016.
Revenue: $868.6 million, compared with $876.4 million in Q2 2016.
Production cost of sales2: $660 per Au eq. oz., compared with $731 in Q2 2016.
All-in sustaining cost2: $910 per Au eq. oz. sold, compared with $988 in Q2 2016. All-in sustaining cost per
gold ounce (Au oz.) sold on a by-product basis was $901 in Q2 2017, compared with $976 in Q2 2016.
Operating cash flow: $179.7 million, compared with $315.9 million in Q2 2016.
Adjusted operating cash flow2: $230.8 million for Q2 2017, an increase of 23% compared with $187.2 million
for Q2 2016.
Adjusted net earnings (loss)2,3: $54.9 million, or $0.04 per share, compared with adjusted net loss of $9.8
million, or $0.01 per share, in Q2 2016.
Reported net earnings (loss)3: Net earnings increased to $33.1 million, or $0.03 per share, compared with a
net loss of $25.0 million, or $0.02 per share, in Q2 2016, mainly due to a decrease in production cost of sales.
Organic development projects:
o The Tasiast Phase One expansion continues to advance on time and on budget and is expected to reach
full commercial production in Q2 2018. Plant construction is now 55% complete.
o The Tasiast Phase Two and Round Mountain Phase W feasibility stud ies are on schedule to be
completed in September. The Company expects to make a development decision on both projects at that
time.
o At Bald Mountain, engineering work at the Vantage Complex in the South area is progressing on schedule.
o In Russia, the Company has started processing ore from the September Northeast satellite deposit near
Dvoinoye, while at Moroshka, decline developm ent is on schedule , with construction of surface
infrastructure now complete.
Outlook: Kinross expects to be within its 2017 guidance for production (2.5 - 2.7 million Au eq. oz.), production
cost of sales ($660 - $720 per Au eq. oz.) and all-in sustaining cost ($925 - $1,025 per Au eq. oz.). The Company
expects to be within its capital expenditures guidance of $900 million (+/- 5%).
Debt offering: On July 6 , 2017, Kinross closed its offering of debt securities, consisting of $500.0 million
principal amount of 4.50% Senior Notes due 2027. The Company used the net proceeds, along with available
cash on hand, to repay its term loan, which was due August 2020.
Balance sheet: As of June 30, 2017, Kinross had cash and cash equivalents of $1,061.3 million, and available
credit of $1,433.1 million, for total liquidity of approximately $2.5 billion. The Company has no scheduled debt
repayments until 2021.
1Unless otherwise stated, production figures in this news release are based on Kinross’ 90% share of Chirano production.
2These figures are non-GAAP financial measures and are defined and reconciled on pages 14 to 18 of this news release.
3Net earnings/loss figures in this release represent “net earnings (loss) attributable to common shareholders”.
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5
p. 2 Kinross reports 2017 second-quarter results www.kinross.com
CEO Commentary
J. Paul Rollinson, President and CEO, made the following comments in relation to 2017 second-quarter results:
“We delivered another quarter of strong and consistent operational results, as our portfolio of mines achieved
production targets, lowered costs, and generated strong cash flows.
“Our organic development projects are advancing well, and we expect to complete feasibility studies and make a
development decision on the Tasiast Phase Two and Round Mountain Phase W expansion projects in September.
The Tasiast Phase One expansion project is proceeding as planned and is expected to reach full commercial
production in Q2 2018. Our projects in Russia have progressed well, with ore from the September Northeast deposit
now being processed at the Kupol mill. We continue to advance Bald Mountain expansion opportunities and expect
production to double this year compared with 2016.
“The $500 million debt financing we complete d in July enhances our financial flexibility, strengthens our balance
sheet, and leaves no debt maturities until 2021.
“We are once again on t rack to meet our annual company -wide guidance for production and costs , and Kinross
remains strongly positioned to continue delivering value for our shareholders.”
Financial results
Summary of financial and operating results
(in millions, except ounces, per share amounts, and per ounce amounts) 2017 2016 2017 2016
Operating Highlights
Total gold equivalent ounces(a)
Produced(c)
700,452 675,623 1,378,233 1,367,533
Sold(c)
689,362 690,983 1,341,878 1,355,148
Attributable gold equivalent ounces(a)
Produced(c)
694,874 671,267 1,366,830 1,358,730
Sold(c)
683,584 686,752 1,329,530 1,346,149
Financial Highlights
Metal sales 868.6$ 876.4$ 1,664.7$ 1,659.0$
Production cost of sales 456.6$ 506.7$ 915.4$ 964.4$
Depreciation, depletion and amortization 204.0$ 210.2$ 421.5$ 403.4$
Operating earnings 104.9$ 69.2$ 153.5$ 112.0$
Net earnings (loss) attributable to common shareholders 33.1$ (25.0)$ 167.7$ 10.0$
Basic earnings (loss) per share attributable to common shareholders 0.03$ (0.02)$ 0.13$ 0.01$
Diluted earnings (loss) per share attributable to common shareholders 0.03$ (0.02)$ 0.13$ 0.01$
Adjusted net earnings (loss) attributable to common shareholders(b)
54.9$ (9.8)$ 78.3$ 11.4$
Adjusted net earnings (loss) per share(b)
0.04$ (0.01)$ 0.06$ 0.01$
Net cash flow provided from operating activities 179.7$ 315.9$ 387.5$ 530.4$
Adjusted operating cash flow(b)
230.8$ 187.2$ 481.7$ 394.8$
Average realized gold price per ounce 1,260$ 1,266$ 1,241$ 1,223$
Consolidated production cost of sales per equivalent ounce(c) sold(b)
662$ 733$ 682$ 712$
Attributable(a) production cost of sales per equivalent ounce(c) sold(b)
660$ 731$ 680$ 709$
Attributable(a) production cost of sales per ounce sold on a by-product basis(b)
645$ 711$ 665$ 693$
Attributable(a) all-in sustaining cost per ounce sold on a by-product basis(b)
901$ 976$ 922$ 963$
Attributable(a) all-in sustaining cost per equivalent ounce(c) sold(b)
910$ 988$ 931$ 972$
Attributable(a) all-in cost per ounce sold on a by-product basis(b)
1,098$ 1,027$ 1,100$ 1,022$
Attributable(a) all-in cost per equivalent ounce(c) sold(b)
1,102$ 1,037$ 1,103$ 1,028$
(a)
(b)
(c) "Gold equivalent ounces" include silver ounces produced and sold converted to a gold equivalent based on a ratio of the average spot market prices for the commodities for each period. The ratio for the second
quarter of 201 7 was 73.01 :1 , compared with 75.06:1 for the second quarter of 201 6 and for the first six months of 201 7 was 71 .46:1 , compared with 77.20:1 for the first six months of 201 6.
The definition and reconciliation of these non-GAAP financial measures is included on page 1 4 to 1 8 of this news release.
Six months ended
June 30,
Three months ended
June 30,
"Total" includes 1 00% of Chirano production. "Attributable" includes Kinross' share of Chirano (90%) production.
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5
p. 3 Kinross reports 2017 second-quarter results www.kinross.com
The following operating and financial results are based on second-quarter 2017 gold equivalent production.
Production and cost measures are on an attributable basis:
Production: Kinross production increased to 694,874 attributable Au eq. oz. in Q2 2017, compared with production
of 671,267 attributable Au eq. oz. in Q2 2016.
Production cost of sales: Production cost of sales per Au eq. oz.2 decreased to $660 for Q2 2017, the lowest since
2011, compared with $731 for Q2 2016, mainly as a result of lower cost of sales per ounce at Round Mountain, Fort
Knox, Bald Mountain and Tasiast.
Production cost of sales per Au oz. on a by-product basis2 decreased to $645 in Q2 2017, compared with $711 in
Q2 2016, based on Q2 2017 attributable gold sales of 665,858 ounces and attributable silver sales of 1,294,197
ounces.
All-in sustaining cost: All-in sustaining cost per Au eq. oz. sold 2 decreased to $910 in Q2 2017, compared with
$988 in Q2 2016. All-in sustaining cost per Au oz. sold on a by -product basis 2 decreased to $901 in Q2 2017,
compared with $976 in Q2 2016.
Average realized gold price: The average realized gold price in Q2 2017 was $1,260 per ounce, compared with
$1,266 per ounce in Q2 2016.
Revenue: Revenue from metal sales decreased slightly to $868.6 million in Q2 2017, compared with $876.4 million
during the same period in 2016, mainly due to the slightly lower average realized gold price.
Margins: Kinross’ attributable margin per Au eq. oz. sold4 was $600 for Q2 2017, compared with a Q2 2016 margin
of $535 per Au eq. oz.
Operating cash flow: Adjusted operating cash flow 2 increased by 23% to $230.8 million for Q2 2017, compared
with $187.2 million for Q2 2016.
Net operating cash flow was $179.7 million for Q2 2017, compared with $315.9 million for Q2 2016.
Earnings (loss): Adjusted net earnings2,3 increased to $54.9 million, or $0. 04 per share, for Q2 2017, compared
with a net loss of $9.8 million, or $0.01 per share, for Q2 2016, mainly as a result of a decrease in production cost
of sales.
Reported net earnings3 were $33.1 million, or $0.03 per share, for Q2 2017, compared with a net loss of $25.0
million, or $0.02 per share, for Q2 2016. Reported net earnings increased mainly as result of a decrease in
production cost of sales.
Capital expenditures: Capital expenditures increased to $200.7 million for Q2 2017, compared with $114.0 million
for the same period last year, primarily due to Tasiast Phase One expansion project costs, and increased spending
at Paracatu and Bald Mountain.
Operating results
Mine-by-mine summaries for 2017 second-quarter operating results may be found on pages nine and 13 of this
news release. Highlights include the following:
Americas
With strong operational performance during the quarter, the region is on track to meet its 2017 guidance range for
production and cost of sales per ounce, notwithstanding the temporary curtailment of mining operations at Paracatu.
4Attributable margin per equivalent ounce sold is a non-GAAP measure defined as “average realized gold price per ounce” less “attributable production cost of sales per gold equivalent
ounce sold.”
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5
p. 4 Kinross reports 2017 second-quarter results www.kinross.com
At Fort Knox, production and cost of sales per ounce were mainly in line with Q1 2017. Production decreased
compared with Q2 2016 largely due to a colder spring season t hat affected heap leach performance , which was
offset by an increase in mill grades. Cost of sales per ounce was lower year-over-year mainly due to a decrease in
operating waste.
Round Mountain performed strongly during the quarter, with production increasing 12% compared with Q1 2017,
and 24% compared with Q2 2016, primarily due to higher mill grades, the highest the mine has reached since 2008.
The production increase was also as a result of more ounces recovered from the heap leach primarily as a result
of higher grades. Cost of sales per ounce was at its lowest level since 2012, and was substantially lower both year-
over-year and quarter-over-quarter mainly due to the high er mill grades. Labour costs also decreased year -over-
year.
At Bald Mountain, production increased compared with Q1 2017 and Q2 2016 mainly due to a significant increase
of tonnes placed on the heap leach pads, and ounces recovered. Cost of sales decreased compared with Q1 2017
mainly due to lower contractor costs and was lower ye ar-over-year mainly due to a decrease in contractor and
maintenance costs. The mine is expected to substantially increase production in the second half of the year due to
mine sequencing and timing from the heap leach and is on track to double production for 2017 compared with full-
year 2016.
Kettle River-Buckhorn outperformed during the quarter, as production increased compared with Q1 2017 and Q2
2016, with cost of sales per ounce decreasing mainly due to higher grades. While the last batch of ore was hauled
from Buckhorn in July, the mill is expected to continue to process stockpiles, with minimal production expected in
the third quarter. The small -footprint, high-grade underground mine performed strongly during its nine-year mine
life and exceeded expectations, with mine life originally slated to end in 2015. Exploration in the region continues
in 2017.
At Paracatu, production was higher compared with Q1 2017 and Q2 2016 mainly due to higher recoveries. Cost of
sales per ounce decreased compared with Q1 2017 mainly due to the higher recoveries, and was higher compared
with Q2 2016 primarily due to more operating waste mined and unfavourable foreign exchange movements.
At the beginning of July, the expected temporary curtai lment of mining and Plant 2 operations commenced at
Paracatu due to the lower than average rainfall in the area. The Company’s 2017 production guidance took into
account the potential curtailment and is not expected to be impacted at this time. The expected production impact
has been partly mitigated by the tailings reprocessing initiative, which is expected to increase in the third quarter at
Plant 1, while Plant 2 maintenance has been brought forward to coincide with the downtime. The production from
the tailings reprocessing is expected to be approximately 25,000 - 35,000 gold ounces in the third quarter, with a
processing rate of approximately 50,000 t/d at Plant 1. The Company also continued to implement water mitigation
efforts, including an enhanced water pumping system, securing water rights, and installment of wells around the
site. Curtailment of mining and Plant 2 operations will continue until the water balance allow s for production to
resume, which is expected in Q4 when the rainy season begins.
At Maricunga, production from the rinsing of the heap materials placed on the pads prior to the suspension of
mining activities continued to produce better than expected results. Cost of sales per ounce was lower quarter-over-
quarter and ye ar-over-year due to higher ounces recovered. While the rinsing of the pads is now expected to
continue for the remainder of the year, production is expected to be minimal and lower than the first half of 2017.
Russia
The region performed well in Q2 2017 and is expected to meet its 2017 production and cost of sales per ounce
guidance. Kupol and Dvoinoye production was slightly higher compared with Q1 2017 primarily due to an increase
in ore processed, and was lower compared with Q2 2016 mainly due to the anticipated lower grades. Cost of sales
per ounce remain among the lowest in the portfolio, but increased compared with Q1 2017 mainly due to lower
grades and more operating waste mined , and increased compared with Q2 2016 mainly due to a decline in gold
equivalent ounces sold and unfavourable foreign exchange rates.
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5
p. 5 Kinross reports 2017 second-quarter results www.kinross.com
West Africa
The region had solid performance during the quarter and is on track to meet its 2017 guidance for production and
cost of sales per ounce. Tasiast production was lower compared with Q1 2017 primarily due to lower mill grades
and a decrease in ore processed, with cost of sales per ounce higher primarily due to higher contractor costs and
lower grades . Production and cost of sales per ounce outperformed Q2 2016 results due to the strike and
suspension of mining last year.
At Chirano, production was slightly lower compared with Q1 2017 mainly due to less ore mined, and was 28%
higher compared with Q2 2016 mainly due to higher grades as the operation ended open pit mining and transitioned
to mining the underground Paboase and Akoti dep osits. Cost of sales per ounce was higher quarter -over-quarter
mainly due to increased maintenance costs and was 22% lower year -over-year mainly due to better grades and
lower operating waste.
Organic development projects
Tasiast Phase One project development is progressing well, and continues to be on time and on budget, with full
commercial production expected in Q2 2018. Plant construction is now 55% complete, with 85% of all equipment
and materials now onsite. Installation of the SAG mil l’s outer shell is now complete and mechanical work has
commenced. The oxygen plant has now been commissioned, with the tailings storage facility expected to be
commissioned shortly. Concrete works and foundations for the primary crusher, apron feeder and cyclone towers
have been completed and heavy mechanical work has now commenced at all three facilities. Installation of three
new leach tanks is progressing, and installation of the conveyor is expected to begin shortly. Phase One is expected
to increase plant throughput to 12,000 t/d from 8,000 t/d.
The Tasiast Phase Two and Round Mountain Phase W feasibility studies are advancing well and expected to be
completed in September, when the Company expects to make a development decision on both expansion projects.
The Tasiast Phase Two expansion contemplates installing an additional 18,000 t/d of throughput capacity, for a
total combined capacity of 30,000 t/d for both phases. The Round Mountain Phase W expansion project is expected
to extend mine life at one of Kinross’ most consistent operations located in one of the best mining jurisdictions in
the world.
At Bald Mountain, detailed engineering work at the Vantage Complex in the South area is progressing on schedule.
The project team has now been establi shed and the execution plan is being developed . The permitting process is
proceeding as planned and major construction work is expected to begin in the first half of 2018 . The proposed
heap leach pad and associated processing facilities and infrastructure is expected to accommodate a total capacity
of 68 million tonnes of ore.
Development at Kinross’ Russian development projects are in their advanced stages. At the Moroshka satellite
deposit, located approximately four kilometres from Kupol, decline development is on schedule , with construction
of surface infrastructure now complete. The Company beg an processing ore from the September Northeast
satellite deposit at the Kupol mill in June 2017. September Northeast, which is located approximately 15 kilometres
from Dvoinoye, was completed on budget and on schedule.
Exploration
Kinross’ exploration efforts continued to focus within the footprint of existing mines and the immediate surrounding
districts. During the first half of the year, a total of appr oximately 113,000 metres of drilling was completed for
brownfield exploration, representing 54% of the 2017 brownfield drilling program. Highlights from the first half of
2017 include:
Kupol: A total of approximately 44,000 metres was drilled at Kupol in the first half of 2017, including
approximately 21,400 metres of infill drilling completed at the north and south strike extensions of the Kupol
main vein. The infill drilling program continues to show encouraging results. The program is expected to be
completed in Q3 2017, after which geological modelling and evaluation will commence to determine
potential mineral reserve conversions and mineral resource additions for end of year.
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5
p. 6 Kinross reports 2017 second-quarter results www.kinross.com
Tasiast Sud: The majority of exploration activities at Tasiast in the first half of 2017 were conducted in the
Tasiast Sud area within the C613 and C615 deposits, which are located immediately south of the Tasiast
mine and west of the Tamaya deposit . Approximately 12,800 metres of drilling was completed and results
have been encouraging . As a result, Kinross is commencing an accelerated infill drilling program in the
area, with the goal of potential mineral resource additions at year end. The Company has also initiated a
pre-feasibility study on the potential for a dump leach operation at Tasiast Sud, combining material from
Tamaya, C613 and C615 . The majority of mineralization at both C613 and C615 is within a banded iron
formation, with C613 defined over an approximate two kilometre mineralized strike open to the south and
north, and C615 defined over a three kilometre strike.
Bald Mountain: Exploration activities are continuing to focus on pit extensions and targets identified in
2016. Drilling results from the Vantage Complex deposit, including the Vantage South extension, Saddle
and Luxe, along with drilling at Top, Top Gap and Saga in the North area, have been encouraging.
Debt offering
On July 6, 2017, Kinross closed its offering of debt securities, consisting of $500.0 million principal amount of 4.50%
Senior Notes due 2027. Kinross use d the net proceeds, along with available cash on hand, to repay its term loan,
which was due August 2020. As a result, the Company now has no scheduled debt repayments until 2021.
Balance sheet
As of June 30, 2017, Kinross had cash and cash equivalents of $ 1,061.3 million, compared with $819.0 million as
of March 31, 2017. The Company also had available credit of $1,433.1 million as of June 30, 2017 for total liquidity
of approximately $2.5 billion.
On July 28, 2017, the Company extended the maturity date of its $1,500 .0 million revolving credit facility by one
year from August 10, 2021 to August 10, 2022.
Cerro Casale divestment
On June 9, 2017, Kinross completed an agreement to sell its 25% interest in the Cerro Casale project and its 100%
interest in the Quebrada Seca exploration project in Chile to Goldcorp Inc. (“Goldcorp”).
The sale included gross cash proceeds of $260.0 million (which includes $20.0 million for Quebrada Seca), a
contingent payment of $40.0 million following a construction decision for Cerro Casale, the assumption by Goldcorp
of a $20.0 million contingent payment obligation payable to Barrick Gold Corporation when production at Cerro
Casale commences, and a 1.25% royalty on 25% of gross revenues from all metals sold at the properties (with the
Company foregoing the first $10.0 million). Additionally on closing, the Company entered into a water supply
agreement with the Cerro Casale joint venture to have certain rights to access, up to a fixed amount, water not
required by the Cerro Casale joint venture.
Yukon property vend-in
On June 14, 2017, Kinross completed an agreement to sell its 100% interest in the White Gold exploration project
for gross cash proceeds of $7.6 million, 17.5 million common shares o f White Gold Corp., representing 19.9% of
the issued and outstanding shares of White Gold Corp., with a curren t market value of approximately $28 million,
and deferred payments of approximately $11.4 million.
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5
p. 7 Kinross reports 2017 second-quarter results www.kinross.com
Outlook
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 19 of this news release.
The Company expects to be within its 2017 production guidance range of approximately 2.5 - 2.7 million Au eq. oz.,
its production cost of sales guidance range of $6 60 - $720 per Au eq. oz. , and its all-in sustaining cost guidance
range of $925 - $1,025 per Au eq. oz. sold.
The Company expects to meet its 2017 capital expenditures forecast of approximately $900 million (+/ - 5%).
Other operating costs is now expected to be $ 80 - $90 million for 2 017, compared with the previous $60 million
forecast, mainly as a result of the temporary curtailment at Paracatu and VAT and other tax related items at Tasiast.
Depreciation, depletion and amortization is now expected to be approximately $300 - $325 per Au eq. oz. for 2017,
compared with the previous forecast of $350 per Au eq. oz.
Conference call details
In connection with the release, Kinross will hold a conference call and audio webcast on Thursday, August 3, 2017
at 8:00 a.m. ET to discuss the results, followed by a question-and-answer session. To access the call, please dial:
Canada & US toll-free – 1-800-319-4610
Outside of Canada & US – 1-604-638-5340
Replay (available up to 14 days after the call):
Canada & US toll-free – 1-800-319-6413; Passcode – 1511 followed by #.
Outside of Canada & US – 1-604-638-9010; Passcode – 1511 followed by #.
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 news release should be read in conjunction with Kinross’ 2017 second-quarter unaudited Financial Statements
and Management’s Discussion and Analysis report at www.kinross.com. Kinross’ 2017 second-quarter unaudited
Financial Statements and Management’s Discussion and Analysis have been filed with Canadian securities
regulators (available at www.sedar.com) and furnished to 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.
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5
p. 8 Kinross reports 2017 second-quarter results www.kinross.com
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
Director, Corporate Communications
phone: 416-369-6469
Investor Relations Contact
Tom Elliott
Senior Vice-President, Investor Relations and Corporate Development
phone: 416-365-3390