For more information, please see Kinross’ 2022 Q1 Financial Statements and MD&A
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5
p. 1 Kinross reports 2022 first-quarter results www.kinross.com
For more information,
please see Kinross’ 2022 Q1
Financial Statements and MD&A
at www.kinross.com
NEWS RELEASE
Kinross reports 2022 first-quarter results
Company guidance maintained for pro-forma portfolio
Tasiast achieves record quarterly production
Toronto, Ontario – May 10, 2022 – Kinross Gold Corporation (TSX: K, NYSE: KGC) (“Kinross” or the “Company”)
today announced its results for the first-quarter ended March 31, 2022.
This news release contains forward-looking information about expected future events and financial and operating performance of the Company.
Please refer to the risks and assumptions set out in our Cautionary Statement on Forward- Looking Information located on page 28 of this
release. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.
In Q1 2022, Kinross announced its plan to divest all of its Russian assets. As such, the Company’s Russian assets have been excluded from its
Q1 2022 results, along with comparative figures, due to the classification of these assets as discontinued as of March 31, 2022.
Q1 2022 highlights from continuing operations:
• Tasiast achieved record production in Q1 2022, with the 24k project progressing well and on schedule.
• La Coipa poured its first gold bar in February, on schedule and under budget.
• At the Great Bear project, exploration, study and permitting activities have ramped up since the completion of
the acquisition on February 24, 2022, with assay results reaffirming the world-class potential of the deposit.
• Kinross’ Board of Directors declared a quarterly dividend of $0.03 per common share payable on June 16,
2022 to shareholders of record at the close of business on June 2, 2022.
• Attributable gold equivalent production1 of 409,857 Au eq. oz. produced.
• Attributable production cost of sales1, 2 of $1,000 per Au eq. oz., consolidated production cost of sales3
of $1,003 per Au eq. oz., and attributable all-in sustaining cost1, 2 of $1,245 per Au eq. oz. sold.
• Margins4 of $872 per Au eq. oz. sold.
• Adjusted operating cash flow2 of $261.0 million and operating cash flow5 of $105.2 million.
• Reported net earnings6 of $82.3 million, or $0.07 per share, with adjusted net earnings2, 7 of $70.6 million, or
$0.06 per share2.
• Cash and cash equivalents of $454.2 million, and total liquidity8 of approximately $1.7 billion at March 31,
2022.
Pro-forma Company guidance:
• Kinross maintained its 2022 company-wide guidance for its pro- forma portfolio after excluding its assets from
Russia and Ghana due to their pending divestments. The Company has adjusted gold and oil price assumptions
for cost of sales and all-in sustaining cost guidance to reflect current prices.
• Kinross expects to produce 2.15 and 2.3 million Au eq. oz. (+/- 5%) in 2022 and 2023, respectively, which is
expected to drive strong free cash flow.
• T he Company expects to produce 2.1 million Au eq. oz. in 2024 and an average of two million Au eq. oz. per
year over the remainder of the decade.
1 “Attributable” includes Kinross’ 90% share of Chirano production and costs, and 70% of Manh Choh cost s.
2 These figures are non-GAAP financial measures and ratios, as applicable, and are defined and reconciled on pages 18 to 24 of this news release. Non-GAAP
financial measures and ratios have no standardized meaning under IFRS and therefore, may not be comparable to similar measures presented by other issuers.
3 “Consolidated production cost of sales from continuing operations per equivalent ounce sold” is defined as production cost of sales, as reported on the interim
condensed consolidated statements of operations, divided by gold equivalent ounces sold from continuing operations.
4 “Margins” per equivalent ounce sold is defined as average realized gold price per ounce from continuing operations less consolidated production cost of sales
from continuing operations per gold equivalent ounce sold.
5 Operating cash flow figures in this release represent “Net cash flow of continuing operations provided from operating activities ,” as reported on the interim
condensed statements of cash flows.
6 Reported net earnings figures in this news release represent “Net earnings from continuing operations attributable to common shareholders ,” as reported on the
interim condensed consolidated statements of operations.
7 Adjusted net earnings figures in this news release represent “Adjusted net earnings from continuing operations attributable to common shareholders.”
8 “Total liquidity” is defined as the sum of cash and cash equivalents, as reported on the interim condensed consolidated balance sheets, and available credit
under the Company’s credit facilities (as calculated in Section 6 – Liquidity and Capital Resources of Kinross’ MD&A for the three months ended March 31, 2022 ).
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5
p. 2 Kinross reports 2022 first-quarter results www.kinross.com
• Taking into account current gold and oil prices, the Company maintained its production cost of sales guidance
of $830 per Au eq. oz. sold (+/- 5%) for the year, with all-in sustaining cost of sales2 of $1,150 per eq. oz.
sold (+/-5%). Consolidated production cost of sales was $832 9 per Au eq. oz. sold and attributable all -in
sustaining cost of sales was $1,138 per eq. oz. sold1, 2, 9 for the year ended December 31, 2021.
• Capital expenditures expected to decrease to $850 million (+/- 5%) in 2022. Capital expenditures are
expected to be approximately $750 million per year in 2023 and 2024, excluding potential inflationary impacts
and based on the Company’s current production guidance.
Russia and Ghana divestments:
• Kinross entered into an agreement with the Highland Gold group of companies to sell 100% of its Russian assets
for total consideration of $680 million in cash on April 5, 2022. The parties are continuing to advance the closing
process and the transaction remains subject to Russian government approval.
• Kinross entered into an agreement with Asante Gold Corporation (“Asante”) to sell the Company’s 90% interest
in the Chirano mine in Ghana for total consideration of $225 million in cash and shares on April 25, 2022. The
transaction closing is targeted for the end of May.
Environment, Social, Governance (ESG):
• Kinross published its 2021 Sustainability Report, detailing its approach and strong record on ESG. The Company
continued to rank well among peers in major ESG rankings and ratings.
• In 2021, Kinross generated $3.5 billion in economic benefits in host countries through taxes, wages, procurement
and community support.
• The Company recycled 80% of water used at site, maintaining a high rate consistent with its five-year average.
• A cross the Company, approximately 99% of the total workforce and 92% of all management are from within host
countries, both record highs for the Company.
CEO Commentary:
J. Paul Rollinson, President and CEO, made the following comments in relation to 2022 first-quarter results:
“During the quarter, we announced the sale of our Russian assets, and in late April, announced the sale of our
Chirano mine in Ghana. With these pending divestments, and the close of the acquisition of Great Bear Resources,
our overall portfolio has been re-balanced, with approximately 70% of our production now expected to be generated
by our mines in the Americas.
“We have maintained our guidance for our pro-forma portfolio, with a substantial production outlook of 2.15 million
gold ounces in 2022, which is expected to grow to 2.3 million gold ounces in 2023. Going forward, we will prioritize
balance sheet strength while also returning capital to our shareholders through dividends and our share buyback
program.
“We are excited about the future for Kinross which includes a production profile that averages two million ounces a
year to the end of the decade, anchored by two tier one assets – Paracatu and Tasiast – accounting for more than
half of our production, and a world-class development project in Canada.
“Over the quarter, we achieved record production at Tasiast, and our project pipeline continued to advance well.
The Tasiast 24k project remains on track, and we poured first gold at the La Coipa project. We are already making
good progress on our exploration program at the Great Bear project and are seeing positive results to support our
goal of declaring an initial inferred resource estimate with our 2022 year-end results and our vision of developing a
large, long-life mining complex.
“In the important area of ESG , mining responsibly will remain at the core of our business. We were pleased to
release our 2021 Sustainability Report, which detailed another year of strong performance. We continued to deliver
on our responsible mining goals, ranked well among our peers in major ESG ratings, and provided significant
9 Results as previously reported for the year ended December 31, 2021 include Ghanaian and Russian operations. Production cost of sales per equivalent ounce
sold for the year ended December 31, 2021 is “Consolidated production cost of sales per equivalent ounce sold” and is defined as production cost of sales, as
reported on the consolidated statements of operations for the year ended December 31, 2021, divided by total gold equivalent ounces sold. Attributable all -in
sustaining cost per equivalent ounce sold of $1,138 for the year ended December 31, 2021 includes Kinross' share of Chirano (90%) production and costs . The
definition and reconciliation of this non-GAAP ratio is included on page 23 of this news release.
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5
p. 3 Kinross reports 2022 first-quarter results www.kinross.com
economic benefits to the host countries and communities in which we do business. We are committed to
continuously improving our ESG performance, as indicated by our commitment to reduce greenhouse gas emission
intensity by 30% by 2030.”
Summary of financial and operating results
(a) "Total" includes 100% of Chirano production. "Attributable" includes Kinross' share of Chirano (90%) production and costs, and Manh Choh (70%) costs.
(b) The definition and reconciliation of these non-GAAP financial measures and ratios is included on pages 18 to 24 of this news release. Non-GAAP financial
measures and ratios have no standardized meaning under IFRS and therefore, may not be comparable to similar measures presented by other issuers.
(c) “Gold equivalent ounces” include silver ounces produced and sold converted to a gold equivalent based on a ratio of the average spot market prices for the
commodities for each period. The ratio for the first quarter of 2022 was 78.19:1 (first quarter of 2021 - 68.33:1).
(d) “Capital expenditures from continuing operations” is as reported as “Additions to property, plant and equipment” on the interim condensed consolidated
statements of cash flows.
(e) “Average realized gold price per ounce from continuing operations” is defined as gold metal sales from continuing operations divided by total gold ounces sold
from continuing operations.
(f) “Consolidated production cost of sales from continuing operations per equivalent ounce sold” is defined as production cost of sales divided by total gold equivalent
ounces sold from continuing operations.
(unaudited, in millions of U.S. dollars, except ounces, per share amounts, and per ounce amounts) 2022 2021
Operating Highlights
Total gold equivalent ounces(a),(g)
Produced(c) 509,241 563,166
Sold(c) 495,475 552,198
Total gold equivalent ounces from continuing operations(a),(h)
Produced(c) 413,350 440,914
Sold(c) 409,538 430,045
Attributable gold equivalent ounces(a),(g)
Produced(c) 505,748 558,777
Sold(c) 491,894 548,084
Attributable gold equivalent ounces from continuing operations(a),(h)
Produced(c) 409,857 436,525
Sold(c) 405,957 425,931
Financial Highlights from Continuing Operations (h)
Metal sales 768.0$ 768.7$
Production cost of sales 410.6$ 345.2$
Depreciation, depletion and amortization 180.8$ 188.8$
Operating earnings 102.5$ 144.3$
Net earnings from continuing operations attributable to common shareholders 82.3$ 76.2$
Basic earnings per share from continuing operations attributable to common shareholders 0.07$ 0.06$
Diluted earnings per share from continuing operations attributable to common shareholders 0.06$ 0.06$
Adjusted net earnings from continuing operations attributable to common shareholders(b) 70.6$ 102.4$
Adjusted net earnings from continuing operations per share(b) 0.06$ 0.08$
Net cash flow of continuing operations provided from operating activities 105.2$ 145.1$
Adjusted operating cash flow from continuing operations(b) 261.0$ 298.9$
Capital expenditures from continuing operations(d) 106.3$ 191.6$
Free cash flow from continuing operations(b) (1.1)$ (46.5)$
Average realized gold price per ounce from continuing operations(e) 1,875$ 1,787$
Consolidated production cost of sales from continuing operations per equivalent ounce(c) sold(f) 1,003$ 803$
Attributable(a) production cost of sales from continuing operations per equivalent ounce(c) sold(b) 1,000$ 798$
Attributable(a) production cost of sales from continuing operations per ounce sold on a by-product basis(b) 994$ 789$
Attributable(a) all-in sustaining cost from continuing operations per ounce sold on a by-product basis(b) 1,241$ 1,044$
Attributable(a) all-in sustaining cost from continuing operations per equivalent ounce(c) sold(b) 1,245$ 1,051$
Attributable(a) all-in cost from continuing operations per ounce sold on a by-product basis(b) 1,471$ 1,432$
Attributable(a) all-in cost from continuing operations per equivalent ounce(c) sold(b)
1,473$ 1,435$
Three months ended
March 31,
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5
p. 4 Kinross reports 2022 first-quarter results www.kinross.com
(g) Total gold equivalent ounces produced and sold and attributable gold equivalent ounces produced and sold include results from the Kupol and Dvoinoye mines up
to March 31, 2022.
(h) In the first quarter of 2022, the Company announced its plan to divest its Russian operations, which includes the Kupol and Dvoinoye mines and the Udinsk
project. Results for the three months ended March 31, 2022 and 2021 are from continuing operations and exclude results from the Company’s Russian operations
due to the classification of these operations as discontinued as of March 31, 2022.
The following operating and financial results are based on first -quarter gold equivalent production and include the
results of Chirano, but exclude Russian operations except where noted:
Attributable production1: Kinross produced 409,857 attributable Au eq. oz. in Q1 2022 from continuing operations,
compared with 436,525 attributable Au eq. oz. in Q 1 2021. The decrease was largely due to lower production at
Round Mountain and Paracatu, partially offset by record high quarterly production at Tasiast.
Average realized gold price: The average realized gold price from continuing operations in Q1 2022 was $1,875
per ounce, compared with $1,787 per ounce in Q1 2021.
Revenue: During the first quarter, revenue from continuing operations was $768.0 million, in line with $768.7 million
during Q1 2021.
Attributable production cost of sales1, 2: Attributable production cost of sales from continuing operations per Au
eq. oz. sold increased to $1,000 for Q1 2022, compared with $798 in Q1 2021, mainly as a result of a decrease in
ounces sold, inflationary pressures on consumables, and increases in operating waste mined at Tasiast, Paracatu
and Fort Knox.
Attributable production cost of sales from continuing operations per Au oz. sold on a by-product basis was $994 in
Q1 2022, compared with $789 in Q1 2021, based on gold sales of 407,104 ounces and silver sales of 190,342
ounces.
Consolidated production cost of sales: Consolidated production cost of sales from continuing operations per Au
eq. oz. sold was $1,003 for Q1 2022, compared with $803 in Q1 2021.
Margins4: Kinross’ margin from continuing operations per Au eq. oz. sold was $872 for Q1 2022, compared with
the Q1 2021 margin of $984.
Attributable all-in sustaining cost1, 2: Attributable all-in sustaining cost from continuing operations per Au eq. oz.
sold was $1,245 in Q1 2022, compared with $1,051 in Q1 2021.
In Q1 2022, attributable all-in sustaining cost from continuing operations per Au oz. sold on a by-product basis from
continuing operations was $1,241, compared with $1,044 in Q1 2021.
Operating cash flow: Adjusted operating cash flow from continuing operations 2 was $261.0 million in Q1 2022,
compared with $298.9 million for Q1 2021.
Operating cash flow from continuing operations was $105.2 million for Q1 2022, compared with $145.1 million for
Q1 2021.
Free cash flow2: Free cash flow from continuing operations was a net outflow of $1.1 million in Q1 2022, compared
with a net outflow of $46.5 million for Q1 2021. The decrease in free cash outflow was mainly due to lower capital
expenditures. The net free cash outflow of $1.1 million in Q1 2022 includes $156 million of working capital outflows.
Earnings: Adjusted net earnings from continuing operations2, 7 were $70.6 million, or $0.06 per share, for Q1 2022,
compared with $102.4 million, or $0.08 per share, for Q1 2021.
Reported net earnings6 from continuing operations were $82.3 million, or $0.07 per share for Q1 2022, compared
with reported net earnings of $76.2 million, or $0.06 per share, for Q1 2021. The increase in reported net earnings
was mainly due to a decrease in income tax expense, partially offset by an increase in production cost of sales.
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5
p. 5 Kinross reports 2022 first-quarter results www.kinross.com
Reported net loss from the Russian discontinued operations 10 was $606.1 million in Q1 2022, which includes an
impairment charge of $671.0 million related to the re-measurement of the Russian operations to fair value less costs
to sell.
Capital expenditures: Capital expenditures from continuing operations decreased to $106.3 million for Q1 2022,
compared with $191.6 million for Q 1 2021. The decrease was primarily due to mine sequencing at Fort Knox,
Tasiast and Round Mountain involving an increase in operating waste mined and a decrease in capital stripping,
partially offset by increased expenditures for development activities at La Coipa.
Balance sheet
As of March 31, 2022, Kinross had cash and cash equivalents of $454.2 million, compared with $531.5 million at
December 31, 2021 . The decrease was primarily due to the reclassification of $134.0 million of cash and cash
equivalents to assets held for sale as a result of the Company’s announced sale of its Russian assets.
On March 7, 2022 , the Company arranged a new $1.0 billion term loan. The three- year term loan will mature on
March 7, 2025, has no mandatory amortization payments, and has a flexible repayment schedule. Kinross used the
proceeds of the financing to settle amounts drawn under its $1.5 billion revolving cr edit facility in connection with
the closing of its acquisition of Great Bear Resources.
The Company had additional available credit 11 of $1,261.0 million as of March 31, 2022 and total liquidity 8 of
approximately $1.7 billion.
Operating results
Mine-by-mine summaries for 2022 first -quarter operating results may be found on pages 13 and 17 of this news
release. Highlights include the following:
Tasiast performed well and achieved record production during the quarter. The increase in production was mainly
due to higher grades, with higher mill throughput contributing to the production increase versus the previous quarter.
Cost of sales per ounce sold increased quarter -over-quarter and year -over-year mainly as a result of higher
operating waste mined, with higher contractor and maintenance costs also contributing to the increase versus Q1
2021. Tasiast expects to increase production over the year as it mines higher grades and increases throughput.
At Paracatu, production decreased quarter-over-quarter and year-over-year primarily due to lower throughput and
lower grades as a result of planned mine sequencing and temporary mill downtime. Cost of sales per ounce sold
was higher compared with the previous quarter and year mainly due to lower production. Higher operating waste
mined, maintenance costs and inflationary pressure s also contribut ed to the higher costs versus Q1 2021.
Production and costs are expected to improve at Paracatu throughout the year , as mining is expected to move t o
higher grade areas of the orebody.
At Fort Knox, production was lower compared with the previous quarter mainly due to lower grades, mill throughput
and ounces recovered from the heap leach pads, and was largely in line with Q1 2021. Production is expected to
increase in the second half of the year as ounces recovered from the heap leach pads typically improve due to
seasonality. Cost of sales per ounce sold was higher quarter -over-quarter mainly due to lower production, and
increased year-over-year mainly due to higher operating waste mined and increased costs related to contractors,
reagents, power, and fuel.
At Round Mountain , production decreased quarter -over-quarter due to lower ounces recovered from the heap
leach pads and lower mill throughput, partially offset by higher mill grade. Compared with the same period in 2021,
production decreased mainly due to fewer ounces recovered from the heap leach pads. Cost of sales per ounce
sold increased quarter-over-quarter and year-over-year primarily due to lower production, higher operating waste
mined and higher fuel, power and maintenance costs.
10 Reported net loss from the Russian discontinued operations in this news release represents “(Loss) earnings from discontinued operations after tax,” as
reported on the interim condensed consolidated statements of operations.
11 “Available credit” is defined as available credit under the Company’s credit facilities and is calculated in Section 6 – Liquidity and Capital Resources of Kinross’
MD&A for the three months ended March 31, 2022.
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5
p. 6 Kinross reports 2022 first-quarter results www.kinross.com
The Round Mountain mine optimization program is progressing on schedule to be completed in the second half of
the year. The program is continuing to assess shallower pit wall slope angles over a larger area of the pit to enhance
stability, along with an optimal mine plan sequence for Phase W, Phase S and Phase X. These include longer-term
mine plan scenarios post -2024 that optimize stripping requirements while continuing to evaluate the underground
potential for portions of Phase W and Phase X.
The program’s interim results are now contemplating a mine plan sequence that divides mining of Phase W into
four parts. The first two parts would be mined over the next three to four years as part of the open pit, given stripping
had already commenced in these areas, and would account for approximately 2 0% of Round Mountain’s mineral
reserve estimates. Phase S mining is expected to start later this year (at December 31, 2021, 938 Au koz. at Phase
S were converted to proven and probable reserves). Mining for the third and fourth parts of Phase W is expected
to commence post -2024 and could potential ly include underground mining as the Company continues to explore
opportunities at Phase X.
At Bald Mountain, production was lower quarter -over-quarter and year-over-year mainly due to timing of ounces
recovered from the heap leach pads in the north area of the mine. Production is expected to increase in the second
half of the year due to higher heap leach recoveries. Cost of sales per ounce sold was higher compared with the
previous quarter and year primarily due to lower production and higher contractor and fuel costs.
At La Coipa, the first gold bar was poured in February 2022 and the mine produced 524 Au eq. oz. during the
quarter. The project was delivered on schedule and under budget despite the challenging global environment over
the past two years. The plant is expected to ramp up over the next few months to reach full operating capacity mid-
year. The Company continues to study opportunities to further extend mine life by incorporating adjacent pits into
the mine plan.
At Chirano, production was largely in line quarter -over-quarter and decreased year-over-year mainly due to lower
grades from underground mining. Cost of sales per ounce sold was lower compared with the previous quarter due
to higher gold sales, and was higher year-over-year mainly due to lower production.
Development projects
Tasiast 24k
At the Tasiast 24k project, the process plant is now regularly reaching throughput of 21,000 tonnes per day (t/d),
with efforts underway to further reduce commissioning downtime. The second phase of the project continues to
progress well and is on track to meet throughput of 24,000 t/d by mid- 2023. Engineering is planned to be
substantially completed during Q2 2022 and construction of the site’s third leach tank is now 70% complete.
Great Bear project update
On February 24, 2022, Kinross announced that it had completed the acquisition of Great Bear Resources Ltd. On
April 7, 2022, the Company provided an update on development at the Great Bear project in Red Lake, Ontario,
with assay results from 60 holes drilled in the LP Fault zone continuing to confirm gold mineralization, which is open
along strike and at depth. Kinross has received additional assay results from 25 holes since the last update which
continue to support the Company’s view of a high-grade, top tier deposit that underpins the prospect of developing
a large, long-life mining complex.
Kinross remains on track to declare an initial inferred mineral resource for the Great Bear project as part of its 2022
year-end results and commence a pre-feasibility study in 2023.
See Appendix A: Figure 1 for a LP Fault zone long section and the location of drill ho les in the table below, and
Appendix B for a full list of recent significant, composited assay results.
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5
p. 7 Kinross reports 2022 first-quarter results www.kinross.com
Hole ID From
(m)
To
(m)
Width
(m)
True
Width
(m)
Au
(g/t) Target
BR-470 140.25 143.25 3.00 2.90 8.82 Discovery
BR-471 151.60 160.00 8.40 7.90 1.82 Discovery
BR-471 including 153.10 153.75 0.65 0.60 18.20
BR-471 and 202.50 204.00 1.50 1.40 7.38
BR-478 38.40 39.00 0.60 0.50 10.40 Discovery
BR-517 544.80 545.55 0.75 0.70 8.87 Yauro
BR-517 and 550.30 562.75 12.45 11.70 0.49
BR-530 498.75 499.25 0.50 0.50 8.11 Discovery
BR-534 604.60 605.50 0.90 0.80 10.70
BR
Discovery
BR-534 and 631.00 664.70 33.70 30.70 1.73
BR-553 514.15 517.75 3.60 3.40 2.61 Yauro
BR-553 and 725.60 730.20 4.60 4.40 4.68
BR-553 and 758.00 758.65 0.65 0.60 24.70
BR-561 219.80 225.25 5.45 5.40 1.05 Viggo
BR-561 including 222.35 223.55 1.20 1.20 3.20
BR-565 175.05 196.50 21.45 20.10 7.50 Viggo
BR-565 including 176.50 180.00 3.50 3.30 37.69
BR-565 and 376.35 377.50 1.15 1.10 21.00
BR-565 and 394.50 396.00 1.50 1.40 7.27
Exploration, study, and permitting activities continue to ramp up at the project, with approximately 200,000 metres
of exploration and infill drilling expected to be completed in 2022. The drilling program will continue to focus on the
LP Fault zone, the most significant discovery to date at the project. There are currently eight diamond drills and two
reverse-circulation (RC) rigs active on site. The RC rigs are being utilized for a grade control program that is
expected to inform the continuity and distribution of the high grade in the LP zone, while also testing grade control
methodology. Since March 2022, approximately 11,800 metres of the planned 35,000-metre grade control program
have been drilled.
Kinross is also analyzing an advanced exploration program that would establish an underground decline and
workings. The advanced program would allow for underground drilling for more efficient exploration of deeper areas
of the LP Fault, along with the nea rby Hinge and Limb gold zones, as well as bulk sampling. The Company is
targeting a potential start of the advanced program as early as 2024.
Baseline environmental surveys and local community socio- economic studies required for the permitting process
are underway, and the Company is now working with a team of experts who have permitted multiple operating
mines in Ontario. Kinross is also continuing its local stakeholder engagement program and working to foster strong
relationships with local communities and with its partners in the Wabauskang and Lac Seul First Nations, on whose
traditional territories the project is located.
Manh Choh
At the 70%-owned Manh Choh project in Alaska, feasibility study work is progressing well and is expected to be
completed on schedule by the end of 2022. Permit applications are advancing as planned, with the Company now
liaising with regulators on comments received regarding key permit applications submitted at the end of last year.
Kinross has also signed an extension of the community support agreement with the Native Village of Tetlin and is
continuing to prioritize transparent community engagements and generating local economic benefits as it develops
the project. Initial production is on schedule to commence in late 2024, subject to permitting.
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5
p. 8 Kinross reports 2022 first-quarter results www.kinross.com
Lobo-Marte
The Lobo-Marte project in Chile continues to provide optionality for Kinross’ long-term portfolio as a potential large,
low-cost mine, following the completion of the project feasibility study in November 2021. The timing and go-forward
decision for the project will depend on a range of factors, including the gold price environment and projections,
economic returns, permitting, priorities in the Company’s portfolio and other potential opportunities in the region,
including mine life extensions at La Coipa. Should further La Coipa mine life extension opportunities be successful,
Lobo-Marte’s timing is expected to be affected accordingly.
Company guidance update
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 28 of this news release. This Company Guidance section references
all-in sustaining cost per equivalent ounce sold, which is a non-GAAP ratio with no standardized meaning under IFRS and therefore, may not be comparable to
similar measures presented by other issuers. The definition of this non-GAAP ratio and comparable reconciliation is included on pages 18 to 24 of this news release.
Kinross has adjusted its 2022 company -wide guidance previously disclosed on February 16, 2022 to exclude its
assets from Russia and Ghana for full-year 2022 and other future guidance figures due to their pending divestments.
As Kinross’ share of Chirano (90%) is now excluded from guidance, all guidance figures are no longer on an
attributable basis, but on a total basis.
Production guidance
On a pro-forma portfolio basis, Kinross maintained its 2022 production guidance of 2.15 million Au eq. oz. (+/- 5%).
The Company continues to expect higher production in the second half of the year, which is largely driven by
increased production at Paracatu, Tasiast and La Coipa.
The Company’s 2023 and 2024 production guidance have been adjusted to 2.3 and 2.1 million Au eq. oz. (+/- 5%),
respectively. Kinross expects to maintain a substantial production profile with estimated average production of two
million Au eq. oz. per year over the remainder of the decade.
Annual gold equivalent production guidance
(+/- 5%)
2022 2.15 million oz.
2023 2.3 million oz.
2024 2.1 million oz.
Inflation impact
The ongoing global impacts of the COVID-19 pandemic and inflation have been factored into the Company’s 2022
attributable cost of sales and capital expenditures guidance. Potential additional inflationary impacts have been
excluded from the Company’s forecast for its 2023 and 2024 capital forecast. Kinross continues to closely monitor
the impact of inflationary pressures on its operations and projects.
Cost guidance
2022 Guidance
(+/- 5%) 2021 Actual9
Production cost of sales per Au eq. oz. $830 $832
All-in sustaining cost per Au eq. oz. 2 $1,150 $1,1381