Kinross reports 2021 first-quarter results Company on track to meet annual guidance Three largest producing mines – Paracatu, Kupol and Tasiast – deliver lowest costs in portfolio
Kinross reports 2021 first-quarter results
Company on track to meet annual guidance
Three largest producing mines – Paracatu, Kupol and Tasiast – deliver lowest costs in portfolio
TORONTO, May 11, 2021 (GLOBE NEWSWIRE) -- Kinross Gold Corporation (TSX: K, NYSE: KGC) (“Kinross” or the “Company”) today announced its results
for the first-quarter ended March 31, 2021.
(This news release contains forward-looking information about expected future events and financial and operating performance of the Company. We refer to
the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located on pages 20-22. All dollar amounts are expressed in
U.S. dollars, unless otherwise noted.)
2021 first-quarter highlights:
2021 first-quarter results 2021 guidance
(+/- 5%)
Gold equivalent production 1
(ounces) 558,777 2.4 million
Production cost of sales1, 2
($ per Au eq. oz.) $756 $790
All-in sustaining cost1, 2
($ per Au eq. oz.) $975 $1,025
Capital expenditures $204.2 million $900 million
• The Company is on track to meet 2021 annual guidance .
• Production1 of 558,777 attributable gold equivalent ounces (Au eq. oz.).
• Production cost of sales1,2 was $756 per Au eq. oz. and largely in line with Q1 2020, while all-in sustaining cost1,2 decreased to $975 per Au eq. oz.
sold year-over-year.
• Attributable margins 3 increased 25% to $1,031 per Au eq. oz. sold compared with Q1 2020, and outpaced the rise in average realized gold price2.
• Adjusted operating cash flow 2 of $399.6 million, operating cash flow of $279.8 million and free cash flow 2 of $75.6 million.
• Reported net earnings 4 increased 22% to $149.5 million, or $0.12 per share, with adjusted net earnings 2 increasing 51% to $192.8 million, or $0.15
per share, compared with Q1 2020.
• Cash and cash equivalents of $1,056.1 million, and total liquidity of $2.6 billion at March 31, 2021.
• Kinross’ Board of Directors declared a quarterly dividend of $0.03 per common share payable on June 17, 2021 to shareholders of record at the
close of business on June 3, 2021.
Operations and sustainability highlights:
• Three largest producing mines – Paracatu , Kupol and Tasiast – accounted for 60% of production and were the lowest cost mines in the portfolio.
• The Tasiast 24k and La Coipa Restart projects advanced well and both remain on schedule, with studies at Udinsk, Manh Choh (formerly known as
“Peak”) and Lobo-Marte all proceeding as planned.
• Kinross commits to reach net-zero greenhouse gas (GHG) emissions by 2050 and expects to finalize a strategy to support this goal by year-end,
including identifying tangible GHG reduction targets for 2030.
CEO Commentary:
J. Paul Rollinson, President and CEO, made the following comments in relation to 2021 first-quarter results:
“Our diversified portfolio of mines performed well to start the year, as we continued to mitigate the impacts of COVID-19 across all our operations and projects.
The Company delivered a 51% year-over-year increase in adjusted net earnings, with margins increasing 25% to $1,031 per ounce sold, once again outpacing
the increase in the average realized gold price. We are well-positioned to continue generating strong cash flow through the year, are on track to meet our
annual guidance, and we are in an excellent financial position.
“Our three largest producing mines – Paracatu, Kupol and Tasiast – delivered our lowest costs for the quarter, with Paracatu and Tasiast achieving record
quarterly throughput. Development at our Tasiast 24k and La Coipa projects advanced well and both projects remain on schedule. Our studies at Udinsk, Manh
Choh and Lobo-Marte are all proceeding as planned.
“In line with our values and commitment to responsible environmental stewardship, Kinross is taking an important step and committing to reach net-zero
greenhouse gas emissions by 2050. To support this goal, we are currently developing a strategy that we expect to finalize by year-end that will identify tangible
GHG reduction targets for 2030, and the steps the Company plans to take to achieve those targets, leveraging our position as one of the lowest GHG emitters
among our peers.”
Financial results
Summary of financial and operating results
Three months ended
March 31,
(unaudited, in millions of U.S. dollars, except ounces, per share amounts, and per ounce amounts) 2021 2020
Operating Highlights
Total gold equivalent ounces(a)
Produced(c) 563,166 571,773
Sold(c) 552,198 556,676
Attributable gold equivalent ounces(a)
Produced(c) 558,777 567,327
Sold(c) 548,084 552,742
Financial Highlights
Metal sales $ 986.5 $ 879.8
Production cost of sales $ 419.9 $ 421.3
Depreciation, depletion and amortization $ 207.0 $ 193.1
Operating earnings $ 242.3 $ 192.6
Net earnings attributable to common shareholders $ 149.5 $ 122.7
Basic earnings per share attributable to common shareholders $ 0.12 $ 0.10
Diluted earnings per share attributable to common shareholders $ 0.12 $ 0.10
Adjusted net earnings attributable to common shareholders(b) $ 192.8 $ 127.4
Adjusted net earnings per share(b) $ 0.15 $ 0.10
Net cash flow provided from operating activities $ 279.8 $ 299.6
Adjusted operating cash flow(b) $ 399.6 $ 418.6
Capital expenditures(d) $ 204.2 $ 191.4
Free cash flow(b) $ 75.6 $ 108.2
Average realized gold price per ounce(b) $ 1,787 $ 1,581
Consolidated production cost of sales per equivalent ounce(c) sold(b) $ 760 $ 757
Attributable(1) production cost of sales per equivalent ounce(c) sold(b) $ 756 $ 754
Attributable(a) production cost of sales per ounce sold on a by-product basis (b) $ 728 $ 738
Attributable(a) all-in sustaining cost per ounce sold on a by-product basis (b) $ 953 $ 982
Attributable(a) all-in sustaining cost per equivalent ounce(c) sold(b) $ 975 $ 993
Attributable(a) all-in cost per ounce sold on a by-product basis (b) $ 1,279 $ 1,245
Attributable(a) all-in cost per equivalent ounce(c) sold(b) $ 1,292 $ 1,251
(a) "Total includes 100% of Chirano production. "Attributable" includes Kinross' share of Chirano (90%) production and costs, and Manh Choh (70%) costs.
(b) The definition and reconciliation of these non-GAAP financial measures is included on pages 14 to 20.
(c) "Gold equivalent ounces" include silver ounces produced and sold converted to a gold equivalent based on a ratio of the average spot market prices for the commodities for each period. The ratio for the first quarter
of 2021 was 68.33:1 (first quarter of 2020 – 93.63:1).
(d) “Capital expenditures” is as reported as “Additions to property, plant and equipment” on the interim condensed consolidated statement of cash flows.
The following operating and financial results are based on 2021 first-quarter gold equivalent production. Production and cost measures are on an attributable
basis:
Production1: Kinross produced 558,777 Au eq. oz. in Q1 2021, compared with 567,327 Au eq. oz. in Q1 2020. This slight decrease was primarily due to lower
production at Tasiast and at Round Mountain, partially offset by higher production at Bald Mountain.
Average realized gold price 2: The average realized gold price increased 13% to $1,787 per ounce in Q1 2021 compared with $1,581 per ounce for the same
period in 2020.
Revenue : Revenue increased 12% to $986.5 million in Q1 2021 compared with $879.8 million during Q1 2020.
Production cost of sales1, 2: Production cost of sales per Au eq. oz. was $756 in Q1 2021, in line with $754 in Q1 2020.
Production cost of sales per Au oz. on a by-product basis was $728 in Q1 2021 compared with $738 in Q1 2020, based on attributable gold sales of 533,207
ounces and attributable silver sales of 1,016,549 ounces.
Margins3: Kinross’ attributable margin per Au eq. oz. sold increased by 25% to $1,031 for Q1 2021, compared with $827 in Q1 2020, which outpaced the 13%
year-over-year increase in average realized gold price.
All-in sustaining cost1, 2: All-in sustaining cost per Au eq. oz. sold decreased to $975 in Q1 2021, compared with $993 in Q1 2020.
All-in sustaining cost per Au oz. sold on a by-product basis decreased to $953 in Q1 2021, compared with $982 in Q1 2020.
Operating cash flow : Adjusted operating cash flow 2 was $399.6 million in Q1 2021, compared with $418.6 million for Q1 2020 primarily due to an increase in
current tax expense, offset by increased operating earnings.
Net operating cash flow was $279.8 million for Q1 2021, compared with $299.6 million for Q1 2020.
Free cash flow 2: Free cash flow was $75.6 million in Q1 2021, compared with $108.2 million for Q1 2020 due to increases in income taxes paid and capital
expenditures, partially offset by increased margins. Free cash flow is reported on an unadjusted basis and includes net outflows for working capital and taxes
paid of $119.8 million.
Earnings: Adjusted net earnings 2 increased 51% to $192.8 million, or $0.15 per share, for Q1 2021, compared with $127.4 million, or $0.10 per share, for Q1
2020.
Reported net earnings 4 increased 22% to $149.5 million, or $0.12 per share, for Q1 2021, compared with $122.7 million, or $0.10 per share, for Q1 2020,
primarily due to the increase in operating earnings, partially offset by the increase in income tax expense.
Capital expenditures : Capital expenditures increased slightly to $204.2 million for Q1 2021, compared with $191.4 million for Q1 2020 primarily due to
increased spending at the La Coipa, Lobo-Marte and Udinsk projects, partially offset by decreased capital development activities at Bald Mountain and Round
Mountain.
Balance sheet
As of March 31, 2021, Kinross had cash and cash equivalents of $1,056.1 million, compared with $1,210.9 million at December 31, 2020. The decrease was
primarily due to the final payment for the Chulbatkan license and the quarterly dividend payments, partially offset by free cash flow2 generated in the quarter.
The Company had additional available credit of $1,563.9 million as of March 31, 2021 and total liquidity of approximately $2.6 billion. Kinross had total debt of
approximately $1.9 billion at March 31, 2021.
Kinross announced on April 29, 2021 that it will redeem all the outstanding 5.125% Senior Notes due September 1, 2021, which have an aggregate principal
amount of $500 million, on June 1, 2021. After the 2021 notes are redeemed, $1,250 million in aggregate principal amount of Kinross Senior Notes will remain
outstanding, with the next maturity date on March 15, 2024 for $500 million in aggregate principal amount.
Operating results
The Company’s comprehensive response to the COVID-19 pandemic continued to maintain the safety of its global workforce and mitigate operational impacts.
Mine-by-mine summaries for 2021 first-quarter operating results may be found on pages nine and 13. Highlights include the following:
Americas
Paracatu performed well in Q1 2021, with production increasing year-over-year as the site delivered record quarterly throughput. Production was lower quarter-
over-quarter mainly as a result of a decrease in mill grade due to mine sequencing, which was largely offset by strong throughput. Cost of sales per ounce sold
was lower compared with Q1 2020 mainly due to favourable foreign exchange, and increased compared with Q4 2020 primarily due to lower production.
At Round Mountain , mining activities during the quarter were impacted by precautionary measures taken after wall movements in the north wall of the pit
were detected by the site’s comprehensive monitoring system. The site deferred mining in the area, which delayed access to Phase W ore and affected
production and cost of sales per ounce during the quarter. The site has accelerated dewatering in the area and is moving waste material to mitigate the issue
and to enhance the stability of the wall. A mine optimization program has also commenced, which is expected to be completed in the second quarter of next
year and will evaluate opportunities for Phase S, the mine’s next planned pushback after Phase W. While production timing and mine sequencing are expected
to be impacted, including potentially deferring access to higher grade Phase W ore for approximately two years, Kinross does not anticipate this issue to
impact the Company’s 2021 production and cost of sales guidance and its longer-term production profile, or Round Mountain’s total life of mine production.
At Bald Mountain , production was in line with the previous quarter, and was higher year-over-year mainly due to timing of ounces recovered from the heap
leach pads. Cost of sales per ounce decreased quarter-over-quarter primarily due to lower contractor and fuel costs, partially offset by higher operating waste
mined. The year-over-year decrease in cost of sales per ounce was mainly as a result of higher production and lower contractor costs.
At Fort Knox, production was slightly lower compared with the previous quarter mainly due to lower mill grades and throughput, which was largely offset by
higher heap leach production. Year-over-year, production was higher mainly as a result of timing of ounces processed through the mill and an increase in
ounces recovered from the heap leach pads. Cost of sales per ounce increased quarter-over-quarter primarily due to lower production and a higher proportion of
production from the heap leach pads, and decreased year-over-year primarily due to lower operating waste mined.
Russia
At Kupol and Dvoinoye, production was lower than the previous quarter mainly as a result of a decrease in throughput and anticipated lower grade ore as the
site transitioned to Dvoinoye stockpiles. Production was largely in line with the previous year. Cost of sales per once sold increased slightly quarter-over-
quarter due to lower production and was largely offset by lower mining costs as a result of the completion of mining activities at Dvoinoye. Cost of sales per
ounce sold was lower year-over-year mainly due to lower mining costs as a result of the completion of mining activities at Dvoinoye and favourable foreign
exchange.
West Africa
Tasiast performed to plan during the first quarter, with the site achieving record quarterly mill throughput rates and shift rotations returning to pre-pandemic
schedules in March. Compared with the previous quarter and year, production decreased primarily as result of lower mill grade, which was expected as the site
processed more stockpile ore, largely offset by record mill throughput. Cost of sales per ounce sold was higher quarter-over-quarter and year-over-year mainly
as a result of lower production, with higher royalty expenses also contributing to the increase versus Q1 2020.
At Chirano, production was higher quarter-over-quarter mainly due to an increase in throughput and higher grades from the underground deposits. Production
was largely in line year-over-year. Cost of sales per ounce sold was higher compared with the previous quarter mainly as a result of an increase in operating
waste mined, and higher maintenance, milling and power costs. Cost of sales per ounce sold increased versus the first quarter of 2020 mainly due to higher
maintenance and mill costs, partially offset by lower operating waste mined.
Development projects
Tasiast 24k
The Tasiast 24k project remains on budget and on schedule to increase throughput capacity to 21,000 tonnes per day (t/d) by the end of 2021, and then to
24,000 t/d by mid-2023. The first phase of the project is now 80% complete. Power plant construction is advancing well and is now 80% complete, with
commissioning expected to commence shortly. The new leach tank has been assembled and the thickener is now mechanically complete.
Chulbatkan – Udinsk
Kinross continues to make good progress at Udinsk, the first project that is expected to be developed on the Chulbatkan license. The project’s pre-feasibility
study is on track to be completed in Q4 2021 and is focusing on fast-tracking construction. First production is anticipated to occur in 2025.
Exploration activities on the larger Chulbatkan license that were planned for 2021 have commenced, with drilling focused on new targets showing soil and
geophysics anomalies near the Udinsk resource pit to the northeast and southwest.
Alaska projects
The “Peak” project, which was formally re-named “Manh Choh,” continued to advance well during the quarter. The Athabascan name of “Manh Choh” (meaning
“Big Lake”) has considerable cultural significance to the local community and was chosen for the project after close consultation with the Upper Tanana
Athabascan Village of Tetlin.
The project’s scoping study remains on schedule to be completed by the end of Q2 2021, with infill, metallurgical and geotechnical drilling now complete.
Engineering, environmental studies for permitting, and community engagement initiatives are all progressing well. The Manh Choh feasibility study is expected
to be completed by the end of 2022 and first production is expected in 2024.
The Company has also commenced development of the Gil satellite pits , which are located approximately 13 kilometres east of Fort Knox. The Gil pits are
expected to produce approximately 160,000 Au eq. oz. over a two year mine life at an estimated average cost of sales of approximately $920 per Au eq. oz.,
with expected average mining grades of 0.8 g/t 5. Production is scheduled to commence in Q4 2021 5. Initial non-sustaining capital and sustaining capital
expenditures are expected to be approximately $30 million and $10 million, respectively 5. The Company plans to haul Gil ore to the Fort Knox mill for
processing using the mine’s existing road network.
La Coipa Restart and Lobo-Marte
The La Coipa Restart project is on schedule to commence production in mid-2022 and continues to progress well, with pre-stripping now ramped up after
commencing in January 2021. Fleet refurbishments are expected to be completed during Q2 2021, with plant refurbishments and mine road construction
advancing as planned. Work on studies to incorporate adjacent deposits into La Coipa’s mine plan to potentially extend mine life is proceeding well. The
Company is also evaluating the option of sourcing renewable power for the project.
The Lobo-Marte feasibility study is advancing on schedule and is expected to be completed in Q4 2021. Kinross is targeting to commence production in 2027
subject to permitting and after the completion of mining at La Coipa, with construction potentially starting in 2025. Kinross continues to believe that Lobo-Marte
has the potential to be a long-life, cornerstone asset with attractive costs.
Company Guidance
The following section of the news release represents forward-looking information and users are cautioned that actual results may vary. We refer to the risks
and assumptions contained in the Cautionary Statement on Forward-Looking Information on pages 20-22.
The Company is on track to meet its 2021 production guidance of 2.4 million Au eq. oz. (+/- 5%). Production is expected to increase quarter-over-quarter in
2021, largely driven by anticipated higher production at Paracatu, and expected higher production in the fourth quarter at Tasiast.
The Company is also on track to meet its 2021 guidance for production cost of sales of $790 per Au eq. oz. (+/- 5%), all-in sustaining cost of $1,025 per Au
eq. oz. (+/-5%) and capital expenditures of $900 million (+/-5%). Cost of sales is expected to increase through the year as a result of planned increases in
operating waste mined.
In 2022 and 2023, consistent with the three-year guidance the Company provided in October 2020, annual production is expected to increase to approximately
2.7 million Au eq. oz. (+/- 5%) and 2.9 million Au eq. oz. (+/- 5%), respectively. The Company also expects to produce an average of 2.5 million Au eq. oz. per
year through the end of the decade.
Sustainability update – commitment to net-zero GHG by 2050
In line with the Company’s core values and focus on responsible environmental stewardship, Kinross is committing to working toward the goals of the United
Nations Framework Convention on Climate Change (UNFCCC) Paris Agreement, with the ultimate objective of being a net-zero GHG emissions company by
2050. To support this objective, Kinross is currently developing a strategy that it expects to finalize by year-end that will include tangible GHG reduction targets
for 2030 and the steps the Company plans to take to achieve those targets. This strategy is expected to be based on site-specific analysis of mining and
processing technologies, renewable resources, and alternative energy sources potentially available over the life-of-mine across all of the Company’s assets.
The strategy will also leverage the Company’s current position as one of the lowest GHG emitters among its peers, and build on its record of incorporating
energy efficiencies into its projects and operations, such as the acquisition of two hydroelectric power plants in 2018 to increase renewable energy use at
Paracatu. As potential elements of its strategy, Kinross is also exploring on-site renewable energy generation, including studying solar photovoltaic power at
Tasiast, and sourcing renewable energy power from the grid at La Coipa, which is under evaluation as part of the project.
Kinross has a long record of transparency on climate-related disclosures and GHG emissions. The Company has been reporting on its emissions through the
Global Reporting Initiative (GRI) Standards and Carbon Disclosure Project (CDP) frameworks since 2005, and in 2020, began implementation of the
recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
More information on Kinross’ approach to climate change and energy is available in the Company’s latest Sustainability Report. Kinross expects to publish a
Sustainability Report Update in mid-2021.
Conference call details
In connection with this news release, Kinross will hold a conference call and audio webcast on Wednesday, May 12, 2021 at 7:45 a.m. EDT to discuss the
results, followed by a question-and-answer session. To access the call, please dial:
Canada & US toll-free – (833) 968-2237; Passcode: 8799762
Outside of Canada & US – (825) 312-2059; Passcode: 8799762
Replay (available up to 14 days after the call):
Canada & US toll-free – (800) 585-8367; Passcode: 8799762
Outside of Canada & US – +1 (416) 621-4642; Passcode: 8799762
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
www.kinross.com.
This release should be read in conjunction with Kinross’ 2021 first-quarter unaudited Financial Statements and Management’s Discussion and Analysis report
at www.kinross.com. Kinross’ 2021 first-quarter unaudited 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.
Virtual Annual Meeting of Shareholders
Kinross’ Annual Meeting of Shareholders will be held on Wednesday, May 12, 2021 at 10:00 a.m. EDT.
The Company has elected to hold a virtual meeting via a live audio webcast given the continued impact of the COVID-19 pandemic. Kinross believes this is a
prudent approach that prioritizes the health and safety of shareholders and employees, while still providing the same level of disclosure, transparency and
participation as previous meetings.
The virtual meeting will be accessible online at: web.lumiagm.com/406172480
The link to the virtual meeting will also be accessible at www.kinross.com and will be archived for later use.
Voting and participation instructions for eligible shareholders are provided in the Company’s Notice of Annual Meeting of Shareholders and Management
Information Circular.
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
Investor Relations Contact
Tom Elliott
Senior Vice-President, Investor Relations
phone: 416-365-3390
Review of operations
Three months ended March 31, (unaudited) Gold equivalent ounces
Produced Sold Production cost of
sales ($millions)
Production cost of
sales/equivalent ounce
sold
2021 2020 2021 2020 2021 2020 2021 2020
Fort Knox
55,815 51,667
55,561 50,768 $
57.7 $
64.6 $
1,038 $
1,272
Round Mountain
74,286 84,465
73,878 85,715
63.1 56.1
854 654
Bald Mountain
51,408 42,087
48,250 42,376
37.0 35.7
767 842
Paracatu
126,547 124,367
126,811 121,197
82.8 87.5
653 722
Maricunga
- -
731 1,311
0.5 0.8
684 610
Americas Total
308,056 302,586
305,231 301,367
241.1 244.7
790 812
Kupol
122,252 120,885
122,153 122,024
74.7 76.9
612 630
Russia Total
122,252 120,885
122,153 122,024
74.7 76.9
612 630
Tasiast
88,964 103,837
83,670 93,950
51.3 51.9
613 552
Chirano (100%)
43,894 44,465
41,144 39,335
52.8 47.8
1,283 1,215
West Africa Total
132,858 148,302
124,814 133,285
104.1 99.7
834 748
Operations Total
563,166 571,773
552,198 556,676
419.9 421.3
760 757
Less Chirano non-controlling
interest (10%)
(4,389) (4,446)
(4,114) (3,934)
(5.3) (4.8)
Attributable Total
558,777 567,327
548,084 552,742 $
414.6 $
416.5 $
756 $
754
Interim condensed consolidated balance sheets
(unaudited, expressed in millions of U.S. dollars, except share amounts)
As at
March 31, December 31,
2021 2020
Assets
Current assets
Cash and cash equivalents $
1,056.1 $ 1,210.9
Restricted cash
11.3 13.7
Accounts receivable and other assets
124.0 122.3
Current income tax recoverable
25.5 29.9
Inventories
1,098.2 1,072.9
2,315.1 2,449.7
Non-current assets
Property, plant and equipment
7,627.1 7,653.5
Goodwill
158.8 158.8
Long-term investments
101.3 113.0
Investment in joint venture
18.3 18.3
Other long-term assets
557.9 537.2
Deferred tax assets
3.9 2.7
Total assets
$
10,782.4 $ 10,933.2
Liabilities
Current liabilities
Accounts payable and accrued liabilities
$
402.7 $ 479.2
Current income tax payable
51.2 114.5
Current portion of long-term debt and credit facilities
499.8 499.7
Current portion of provisions
73.3 63.8
Other current liabilities
45.0 49.7
Deferred payment obligation
- 141.5
1,072.0 1,348.4
Non-current liabilities
Long-term debt and credit facilities
1,425.5 1,424.2
Provisions
858.9 861.1
Long-term lease liabilities
46.1 46.3
Other long-term liabilities
116.0 102.4
Deferred tax liabilities
492.3 487.8
Total liabilities
$
4,010.8 $ 4,270.2
Equity
Common shareholders' equity
Common share capital
$
4,486.2 $ 4,473.7
Contributed surplus
10,697.1 10,709.0
Accumulated deficit
(8,450.8) (8,562.5)
Accumulated other comprehensive income (loss)
(28.0) (23.7)
Total common shareholders' equity
6,704.5 6,596.5
Non-controlling interests
67.1 66.5
Total equity
$
6,771.6 $ 6,663.0
Total liabilities and equity $
10,782.4 $ 10,933.2
Common shares
Authorized Unlimited Unlimited
Issued and outstanding
1,261,073,345 1,258,320,461
Interim condensed consolidated statements of operations
(unaudited, expressed in millions of U.S. dollars, except share and per share amounts)
Three months ended
March 31, March 31,
2021 2020
Revenue
Metal sales $ 986.5 $ 879.8
Cost of sales
Production cost of sales 419.9 421.3
Depreciation, depletion and amortization 207.0 193.1
Total cost of sales 626.9 614.4
Gross profit 359.6 265.4
Other operating expense 57.9 21.9
Exploration and business development 25.4 19.1
General and administrative 34.0 31.8
Operating earnings 242.3 192.6
Other income (expense) - net 2.3 (0.6)
Finance income 1.8 2.0
Finance expense (19.3) (25.7)
Earnings before tax 227.1 168.3
Income tax expense - net (77.9) (45.0)
Net earnings $ 149.2 $ 123.3
Net earnings (loss) attributable to:
Non-controlling interests $ (0.3) $ 0.6
Common shareholders $ 149.5 $ 122.7
Earnings per share attributable to common shareholders
Basic $ 0.12 $ 0.10
Diluted $ 0.12 $ 0.10
Weighted average number of common shares outstanding
(millions)
Basic 1,259.2 1,254.6
Diluted 1,268.4 1,265.3
Interim condensed consolidated statements of cash flows
(unaudited, expressed in millions of U.S. dollars)
Three months ended
March 31, March 31,
2021 2020
Net inflow (outflow) of cash related to the following activities:
Operating:
Net earnings $ 149.2 $ 123.3
Adjustments to reconcile net earnings to net cash provided from
operating activities:
Depreciation, depletion and amortization 207.0 193.1
Share-based compensation expense 3.8 4.5
Finance expense 19.3 25.7
Deferred tax expense 1.1 68.4
Foreign exchange losses and other 19.2 3.6
Changes in operating assets and liabilities:
Accounts receivable and other assets (5.1) (78.6)
Inventories 0.3 7.7
Accounts payable and accrued liabilities 10.1 15.8
Cash flow provided from operating activities 404.9 363.5
Income taxes paid (125.1) (63.9)
Net cash flow provided from operating activities 279.8 299.6
Investing:
Additions to property, plant and equipment (204.2) (191.4)
Interest paid capitalized to property, plant and equipment (23.9) (22.3)
Acquisitions (141.5) (128.3)
Net additions to long-term investments and other assets (2.7) (1.9)
Net proceeds from the sale of property, plant and equipment 0.4 1.5
Decrease in restricted cash - net 2.4 1.8
Interest received and other - net 0.7 1.0
Net cash flow used in investing activities (368.8) (339.6)
Financing:
Proceeds from drawdown of debt - 750.0
Repayment of debt - (100.0)
Interest paid (23.6) (25.6)
Payment of lease liabilities (7.6) (4.7)
Dividends paid to common shareholders (37.8) -
Other - net 4.6 (6.6)
Net cash flow (used in) provided from financing activities (64.4) 613.1
Effect of exchange rate changes on cash and cash equivalents (1.4) (9.6)
(Decrease) increase in cash and cash equivalents (154.8) 563.5
Cash and cash equivalents, beginning of period 1,210.9 575.1
Cash and cash equivalents, end of period $ 1,056.1 $ 1,138.6
Operating
Summary
Mine Period Ownership
Tonnes
Ore
Mined
(a)
Ore
Processed
(Milled) (a)
Ore
Processed
(Heap
Leach) (a)
Grade
(Mill)
Grade
(Heap
Leach)
Recovery
(b)(h)
Gold Eq
Production
(e)
Gold Eq
Sales (e)
Production
cost of
sales
Production
cost of
sales/oz
Cap Ex
(g) DD&A
(%) ('000
tonnes)
('000
tonnes)
('000
tonnes) (g/t) (g/t) (%) (ounces) (ounces) ($ millions) ($/ounce) ($
millions)
($
millions)
Americas
Fort Knox
Q1
2021 100
8,174
1,751
7,396 0.57 0.20 80% 55,815 55,561 $ 57.7 $ 1,038 $ 25.4 $ 22.5
Q4
2020 100 8,456 2,583 7,021 0.61 0.20 80% 57,523 57,849 $ 51.1 $ 883 $ 46.0 $ 23.2
Q3
2020 100 7,202 2,664 5,497 0.67 0.19 83% 72,705 73,267 $ 69.5 $ 949 $ 39.7 $ 27.9
Q2
2020 100 6,116 2,048 4,783 0.73 0.23 83% 56,031 56,465 $ 66.1 $ 1,171 $ 33.9 $ 23.3
Q1
2020 100 6,795 1,859 5,694 0.60 0.23 80% 51,667 50,768 $ 64.6 $ 1,272 $ 19.1 $ 22.8
Round
Mountain
Q1
2021 100
3,843
976
4,019 0.70 0.46 81%
74,286
73,878 $
63.1 $
854 $
31.3 $
17.0
Q4
2020 100 6,542 988 6,315 0.92 0.50 83% 89,422 89,709 $ 62.2 $ 693 $ 41.2 $ 15.2
Q3
2020 100 6,085 972 5,884 0.79 0.39 83% 76,039 72,717 $ 49.7 $ 683 $ 39.2 $ 11.6
Q2
2020 100 4,431 911 4,357 0.80 0.36 84% 74,351 71,087 $ 51.6 $ 726 $ 36.9 $ 10.2
Q1
2020 100 3,700 954 3,594 0.83 0.43 83% 84,465 85,715 $ 56.1 $ 654 $ 41.8 $ 12.6
Bald
Mountain
Q1
2021 100 2,025 - 2,025 - 0.48 nm 51,408 48,250 $ 37.0 $ 767 $ 8.9 $ 40.2
Q4
2020 100 6,076 - 6,076 - 0.42 nm 51,487 57,087 $ 45.4 $ 795 $ 19.3 $ 44.3
Q3
2020 100 4,922 - 4,922 - 0.56 nm 49,339 37,492 $ 32.1 $ 856 $ 23.4 $ 27.1
Q2
2020 100 4,051 - 4,051 - 0.53 nm 48,368 49,594 $ 42.7 $ 861 $ 29.6 $ 30.2
Q1
2020 100 3,254 - 3,254 - 0.55 nm 42,087 42,376 $ 35.7 $ 842 $ 31.5 $ 26.7
Paracatu
Q1
2021 100 12,612 15,372 - 0.38 - 75% 126,547 126,811 $ 82.8 $ 653 $ 20.8 $ 37.7
Q4
2020 100 12,611 12,655 - 0.51 - 77% 148,218 150,881 $ 91.2 $ 604 $ 61.6 $ 58.2
Q3
2020 100 12,468 13,673 - 0.38 - 74% 131,000 128,782 $ 96.6 $ 750 $ 27.2 $ 42.4
Q2
2020 100 15,223 14,703 - 0.40 - 74% 138,851 140,646 $ 83.6 $ 594 $ 49.1 $ 45.2
Q1
2020 100 12,350 13,224 - 0.39 - 75% 124,367 121,197 $ 87.5 $ 722 $ 14.4 $ 37.7
Maricunga
Q1
2021 100 - - - - - nm - 731 $ 0.5 $ 684 $ - $ 0.1
Q4
2020 100 - - - - - nm 414 2,035 $ 1.1 $ 541 $ - $ 0.1
Q3
2020 100 - - - - - nm 3,132 4,442 $ 1.0 $ 225 $ - $ 0.2
Q2
2020 100 - - - - - nm - 1,159 $ 0.8 $ 690 $ - $ 0.3
Q1
2020 100 - - - - - nm - 1,311 $ 0.8 $ 610 $ - $ 0.3
Russia Kupol (c)(d)
(f)
Q1
2021 100 312 418 - 8.71 - 94% 122,252 122,153 $ 74.7 $ 612 $ 6.8 $ 18.2
Q4
2020 100 293 432 - 9.24 - 95% 130,731 131,541 $ 79.1 $ 601 $ 15.1 $ 31.0
Q3
2020 100 365 430 - 8.99 - 95% 128,144 126,637 $ 69.2 $ 546 $ 6.1 $ 27.0
Q2
2020 100 386 416 - 9.73 - 95% 130,983 130,771 $ 79.3 $ 606 $ 5.9 $ 31.1
Q1
2020 100 500 425 - 8.73 - 95% 120,885 122,024 $ 76.9 $ 630 $ 5.6 $ 34.4
West
Africa
Tasiast
Q1
2021 100 843 1,504 - 1.85 - 96% 88,964 83,670 $ 51.3 $ 613 $ 68.6 $ 48.3
Q4
2020 100 1,206 1,470 - 2.48 - 94% 111,028 107,865 $ 60.8 $ 564 $ 65.0 $ 46.5
Q3
2020 100 1,338 1,244 - 2.78 - 94% 103,065 103,295 $ 65.2 $ 631 $ 50.0 $ 50.2
Q2
2020 100 1,134 1,168 - 2.40 94% 88,579 98,679 $ 57.8 $ 586 $ 40.6 $ 54.8
Q1
2020 100 1,160 1,467 - 2.31 - 95% 103,837 93,950 $ 51.9 $ 552 $ 69.2 $ 40.3
Chirano -
100%
Q1
2021 100 735 821 - 1.81 - 88% 43,894 41,144 $ 52.8 $ 1,283 $ 10.1 $ 21.2
Q4
2020 100 915 801 - 1.75 - 88% 39,121 40,202 $ 45.6 $ 1,134 $ 11.3 $ 13.1
Q3
2020 100 768 815 - 1.87 - 88% 44,320 46,586 $ 56.1 $ 1,204 $ 5.0 $ 16.1