Kinross reports 2024 first-quarter results Strong start to the year with robust margins driving strong free cash flow Development projects on track Well positioned to meet annual guidance
Kinross reports 2024 first-quarter results
Strong start to the year with robust margins driving strong free cash flow
Development projects on track
Well positioned to meet annual guidance
TORONTO, May 07, 2024 -- Kinross Gold Corporation (TSX: K, NYSE: KGC) (“Kinross” or the “Company”) today announced its results for the first quarter
ended March 31, 2024.
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 27 and 28 of this release. All dollar amounts are
expressed in U.S. dollars, unless otherwise noted.
2024 first-quarter highlights:
• Production of 527,399 gold equivalent ounces (Au eq. oz.), a 13% year-over-year increase.
• Production cost of sales1, 2 of $982 per Au eq. oz. sold and all-in sustaining cost2, 3 of $1,310 per Au eq. oz. sold, both of which are in line with Q1
2023.
• Margins4 increased by 20% to $1,088 per Au eq. oz. sold, outpacing the rise in the average realized gold price.
• Operating cash flow 5 of $374.4 million and adjusted operating cash flow 3 of $424.9 million. Attributable6 free cash flow 3 of $145.3 million.
• Reported net earnings 7 of $107.0 million, or $0.09 per share, with adjusted net earnings 3, 8 of $124.9 million, or $0.10 per share3.
• Kinross’ Board of Directors declared a quarterly dividend of $0.03 per common share payable on June 13, 2024, to shareholders of record at the close
of business on May 30, 2024.
• On track to meet annual guidance: On an attributable basis 6, Kinross expects to produce 2.1 million Au eq. oz. (+/- 5%) at a production cost of
sales per Au eq. oz. 1 of $1,020 (+/- 5%) and all-in sustaining cost 3 of $1,360 (+/- 5%) per ounce sold for 2024. Total attributable 6 capital expenditures 3
are forecast to be approximately $1,050 million (+/- 5%).
• Balance sheet strength: Kinross has improved its debt metrics and continues to maintain its investment grade credit ratings. As of March 31, 2024,
Kinross had cash and cash equivalents of $406.9 million, for total liquidity 9 of approximately $2 billion.
• Operations:
◦ Kinross’ three largest producing mines – Tasiast, Paracatu and La Coipa – delivered 68% of total production, with production cost of sales of
$821 per Au eq. oz. sold1 and margins4 of $1,251 per Au eq. oz. sold.
◦ Tasiast achieved record quarterly throughput as the mine continued its strong performance since the completion of the 24k project.
◦ Paracatu achieved record quarterly throughput and La Coipa continued to deliver high margin production.
• Development projects:
◦ Kinross’ pipeline of development projects continues to advance on plan.
◦ At Great Bear , the drilling campaign made strong progress in Q1 2024 and continues to successfully target extensions of the resource at depth.
◦ At Manh Choh, operations are ramping up and the project is on track for first production in early Q3 2024.
◦ At Round Mountain, Phase S mining is on plan, and the exploration decline at Phase X is progressing well, with approximately 1,800 metres
developed to date.
• Sustainability Report: Kinross expects to publish its 2023 Sustainability Report later this month, providing a comprehensive summary of its
performance over the past year.
CEO commentary:
J. Paul Rollinson, CEO, made the following comments in relation to 2024 first-quarter results:
“We have had a strong start to the year and are well positioned to meet our annual guidance. Our portfolio of mines performed well, driven by strong operational
performance, disciplined cost management and higher gold prices. The Company delivered a 20% increase in margins to $1,088 per ounce sold, which is
approximately double the percentage increase in the gold price over the same period. As a result, free cash flow more than tripled over Q1 2023.
“With the strong sustained gold price, we will continue to prioritize our financial discipline and operational excellence. We will focus on maintaining our margins
and cost profile, prudent capital allocation and debt reduction.
“Our development projects are all proceeding as planned. At Great Bear, we made excellent progress on our 2024 drilling campaign, which continued to
successfully target extensions of the resource at depth, and we remain on track to release a preliminary economic assessment (PEA) in the second half of the
year. At Round Mountain, Phase S and Phase X are advancing well. We are also looking forward to first production at Manh Choh early in the third quarter. At
Tasiast, our solar power plant is complete and generating power at full capacity.
“Kinross’ commitment to Sustainability is deeply rooted in our values and culture, and we are proud of our consistent high rankings in our industry. We are
looking forward to publishing our 2023 Sustainability Report later this month, marking our 16th year of reporting in this important area.”
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) 2024 2023
Operating Highlights
Total gold equivalent ounces(a)
Produced 527,399 466,022
Sold 522,400 490,330
Financial Highlights
Metal sales $ 1,081.5 $ 929.3
Production cost of sales $ 512.9 $ 483.9
Depreciation, depletion and amortization $ 270.7 $ 211.9
Operating earnings $ 193.2 $ 143.9
Net earnings attributable to common shareholders $ 107.0 $ 90.2
Basic earnings per share attributable to common shareholders $ 0.09 $ 0.07
Diluted earnings per share attributable to common shareholders $ 0.09 $ 0.07
Adjusted net earnings attributable to common shareholders(b) $ 124.9 $ 87.6
Adjusted net earnings per share(b) $ 0.10 $ 0.07
Net cash flow provided from operating activities $ 374.4 $ 259.0
Adjusted operating cash flow(b) $ 424.9 $ 358.2
Capital expenditures(c) $ 241.9 $ 221.2
Attributable(d)capital expenditures(b) $ 232.1 $ 211.8
Attributable(d)free cash flow(b) $ 145.3 $ 47.8
Average realized gold price per ounce(e) $ 2,070 $ 1,894
Production cost of sales per equivalent ounce(a)sold(f)(g) $ 982 $ 987
Production cost of sales per ounce sold on a by-product basis (b)(g) $ 941 $ 929
All-in sustaining cost per ounce sold on a by-product basis (b)(g) $ 1,281 $ 1,284
All-in sustaining cost per equivalent ounce(a)sold(b)(g) $ 1,310 $ 1,321
Attributable(d)all-in cost per ounce sold on a by-product basis (b) $ 1,613 $ 1,616
Attributable(d)all-in cost per equivalent ounce(a)sold(b) $ 1,630 $ 1,634
(a) “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 2024 was 88.70:1 (first quarter of 2023 – 83.82:1).
(b) The definition and reconciliation of these non-GAAP financial measures and ratios is included on pages 16 to 21 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) “Capital expenditures” is as reported as “Additions to property, plant and equipment” on the interim condensed consolidated statements of cash flows.
(d) “Attributable” includes Kinross’ 70% share of Manh Choh costs, capital expenditures and cash flow, as appropriate.
(e) “Average realized gold price per ounce” is defined as gold metal sales divided by total gold ounces sold.
(f) “Production cost of sales per equivalent ounce sold” is defined as production cost of sales divided by total gold equivalent ounces sold.
(g) As production from Manh Choh is expected to commence in the third quarter of 2024, production cost of sales and attributable all-in sustaining cost
figures and ratios for Manh Choh are nil for all periods presented. As a result, production cost of sales and all-in sustaining cost figures and ratios are
equal to attributable production cost of sales and attributable all-in sustaining cost figures and ratios, as applicable.
The following operating and financial results are based on first-quarter gold equivalent production:
Production: Kinross produced 527,399 Au eq. oz. in Q1 2024, compared with 466,022 Au eq. oz. in Q1 2023. The 13% year-over-year increase was primarily
due to higher throughput at Tasiast, higher grades at La Coipa, and higher production at Bald Mountain due to timing of ounces recovered from the heap leach
pads.
Average realized gold price 10: The average realized gold price in Q1 2024 was $2,070 per ounce, compared with $1,894 per ounce in Q1 2023.
Revenue : During the first quarter, revenue increased to $1,081.5 million, compared with $929.3 million during Q1 2023. The 16% year-over-year increase is
primarily due to increases in gold equivalent ounces sold and average metal prices realized.
Production cost of sales: Production cost of sales per Au eq. oz. sold 1, 2 decreased slightly to $982 for the quarter, compared with $987 in Q1 2023.
Production cost of sales per Au oz. sold on a by-product basis 2, 3 was $941 in Q1 2024, compared with $929 in Q1 2023, based on gold sales of 503,604
ounces and silver sales of 1,667,248 ounces.
Margins4: Kinross’ margin per Au eq. oz. sold increased by 20% to $1,088 for Q1 2024, compared with the Q1 2023 margin of $907, outpacing the 9%
increase in average realized gold price10.
All-in sustaining cost2, 3: All-in sustaining cost per Au eq. oz. sold was $1,310 in Q1 2024, compared with $1,321 in Q1 2023.
In Q1 2024, all-in sustaining cost per Au oz. sold on a by-product basis was $1,281, compared with $1,284 in Q1 2023.
Operating cash flow 5: Operating cash flow was $374.4 million for Q1 2024, compared with $259.0 million for Q1 2023.
Adjusted operating cash flow3 for Q1 2024 was $424.9 million, compared with $358.2 million for Q1 2023.
Attributable6 free cash flow 3: Attributable free cash flow more than tripled to $145.3 million in Q1 2024, compared with $47.8 million in Q1 2023.
Earnings: Reported net earnings7 increased by 19% to $107.0 million for Q1 2024, or $0.09 per share, compared with reported net earnings of $90.2 million, or
$0.07 per share, for Q1 2023.
Adjusted net earnings3, 8 increased by 43% to $124.9 million, or $0.10 per share, for Q1 2024, compared with $87.6 million, or $0.07 per share, for Q1 2023.
Attributable6 capital expenditures 3: Attributable capital expenditures increased to $232.1 million for Q1 2024, compared with $211.8 million for Q1 2023,
primarily due to an increase in capital stripping at Tasiast and Fort Knox 11, as well as the start of Phase S capital development at Round Mountain, partially
offset by a decrease in capital stripping at La Coipa.
Balance sheet
Kinross had cash and cash equivalents of $406.9 million as of March 31, 2024, compared with $352.4 million at December 31, 2023. The increase was
primarily due to the increase in operating cash flow.
Kinross has improved its debt metrics and continues to prioritize maintaining and strengthening its investment grade balance sheet. Kinross plans to further
reduce debt during the year by allocating excess free cash generated towards the term loan due in 2025.
The Company had additional available credit12 of $1.6 billion and total liquidity 9 of approximately $2 billion as of March 31, 2024.
Dividend
As part of its continuing quarterly dividend program, the Company declared a dividend of $0.03 per common share payable on June 13, 2024, to shareholders of
record as of May 30, 2024.
Operating results
Mine-by-mine summaries for 2024 first-quarter operating results may be found on pages 10 and 14 of this news release. Highlights include the following:
At Tasiast, production was in line with the previous quarter, and was higher year-over-year mainly due to record quarterly throughput following the completion of
the Tasiast 24k project in the second half of 2023, partly offset by lower grades, as planned. Cost of sales per ounce sold was largely in line quarter-over-
quarter, and lower year-over-year mainly due to the higher ounces sold.
Paracatu delivered according to plan, with production largely in line with the previous quarter, and higher year-over-year mainly due to an increase in
throughput, partly offset by lower grades as a result of planned mine sequencing. Cost of sales per ounce sold decreased quarter-over-quarter primarily due to
lower maintenance, labour and contractor costs. Year-over-year, cost of sales per ounce sold increased mainly due to an increase in labour, drilling, blasting
and fuel costs related to an increase in tonnes mined.
At La Coipa , production was slightly lower than the previous quarter mainly as a result of a decrease in throughput, which was offset by higher grades and
recoveries. Production increased compared with the same period last year primarily due to an increase in gold grades, and an increase in mill throughput. Cost
of sales per ounce sold was largely in line with both comparable periods.
At Fort Knox 11, production was lower quarter-over-quarter due to lower mill grade, throughput and recovery, and the seasonal effect of fewer ounces recovered
from the heap leach pads. Year-over-year, production was lower due to lower mill grade, throughput and recovery. In both comparable periods, cost of sales per
ounce sold was higher primarily due to lower production.
Round Mountain performed well, with production increasing quarter-over-quarter due to higher mill throughput, grade, and recoveries, partially offset by fewer
ounces recovered from the heap leach pads. The increase in production compared to Q1 2023 was primarily due to higher mill grade and throughput, partially
offset by lower mill recovery and fewer ounces recovered from the heap leach pads. In both comparable periods, cost of sales per ounce sold was lower due to
the increase in production as well as an increase in capital development related to the start of stripping Phase S.
At Bald Mountain , production increased in both comparable periods mainly due to an increase in ounces recovered from the heap leach pads. Cost of sales
per ounce sold was lower quarter-over-quarter mainly as a result of a higher proportion of capital development, and similarly, lower year-over-year due to a
higher proportion of capital development as well as higher production.
Development Projects and Exploration
Great Bear
At the Great Bear project, the Company’s robust exploration program continues to make excellent progress, execution planning for the advanced exploration
program is well underway, and permitting continues to advance on plan.
The drilling results below (at true width) continue to support the view of a high-grade, long-life mining complex at Great Bear, with recent results showing
extension of mineralization at depth across multiple zones.
At Yuma, results continue to intersect higher grade mineralization at depth in close proximity to the current resource, with holes BR-843AC3 and BR-695C1A
intersecting 10.2m @ 18.59 g/t at 975m vertical depth and 6.2m @ 6.24 g/t at 1,085m vertical depth, respectively.
At Yauro, BR-708AC1B intersected 2.0m @ 11.41 g/t at a vertical depth of 1,095m well below the current resources, showing the potential for Yauro to
continue to expand at depth with high grade mineralization, similar to how depth extensions progressed with continued drilling at Yuma.
At Auro, recent drilling also intersected high grade mineralization with a minable width below the current resources with hole BR-882 intersecting 6.1m @ 25.71
g/t at a vertical depth of 720m.
At Discovery to the northwest, hole BR-847 has intersected 2.4m @ 5.53 g/t at 870m in the under-tested area beneath the current resource, demonstrating
continuity of mineralization between previously reported drill holes. The 2024 drill program will continue to target mineralization below the existing mineral
resource, explore for additional deposits along strike, and expand our Red Lake style mineralization at Hinge and Limb.
For the Advanced Exploration (AEX) program, Kinross is progressing provincial permitting, engineering, and execution planning activities that would establish
an underground decline to obtain a bulk sample and allow for definition and infill drilling in the LP zone. Kinross has the necessary surface rights to develop the
AEX project, subject to obtaining the required provincial permits.
Detailed engineering, execution planning, and procurement continue to progress well. Some required infrastructure such as the camp and water treatment plant
have now been purchased.
Kinross is targeting a start of the surface construction for the AEX program in the second half of 2024, subject to receipt of permits, with start of the
underground decline planned in mid-2025.
For the Main Project, Kinross continues to advance technical studies, including engineering and field test work campaigns. In the last quarter, substantial
geotechnical field work was conducted to help de-risk project construction through strong early technical studies.
Kinross remains on track to release a PEA in the second half of 2024. Kinross has opted to pursue a PEA as it enables the inclusion of a portion of the inferred
underground resource. This provides visibility into the potential production scale, construction capital, all-in sustaining cost and margins for both the open pit
and the underground. The PEA will only include a subset of the ounces in the measured, indicated, and inferred resources drilled to date.
The Detailed Project Description for the Main Project was submitted to the Impact Assessment Agency of Canada in Q1 2024, as planned, and the Federal
Impact Assessment is underway. Studies are ongoing and the Company expects to file its Impact Statement in the first half of 2025.
Selected Great Bear Drill Results
See Appendix A for full results.
Hole ID From
(m)
To
(m)
Width
(m)
True Width
(m)
Au
(g/t)
Target
BR-695C1A 1,324.7 1,333.0 8.3 7.3 5.35 Yuma
BR-695C1A Including 1,324.7 1,331.7 7.0 6.2 6.24
BR-695C1A 1,441.2 1,444.2 3.0 2.6 0.58
BR-695C1A 1,469.0 1,517.5 48.5 42.7 0.86
BR-695C1A Including 1,502.6 1,506.3 3.7 2.8 4.49
BR-695C1A 1,524.5 1,537.8 13.3 11.3 0.81
BR-708AC1B 1,271.7 1,276.7 5.0 4.5 0.64 Yauro
BR-708AC1B 1,319.9 1,323.7 3.8 3.4 0.50
BR-708AC1B 1,376.2 1,441.7 65.5 59.0 0.96
BR-708AC1B Including 1,438.7 1,441.1 2.4 2.0 11.41
BR-843AC3 1,256.3 1,259.8 3.5 2.7 0.68 Yuma
BR-843AC3 1,354.7 1,395.0 40.3 36.3 5.65
BR-843AC3 1,377.4 1,388.8 11.3 10.2 18.59
BR-843AC3 1,509.7 1,513.7 4.0 3.5 3.39
BR-847 934.7 950.0 15.3 13.0 2.08 Discovery
BR-847 Including 934.7 937.5 2.8 2.4 5.21
BR-847 975.0 992.5 17.5 14.9 0.85
BR-847 998.8 1,001.8 3.0 2.6 0.48
BR-847 1,027.2 1,036.1 8.9 7.8 1.54
BR-847 1,048.5 1,051.5 3.0 2.7 0.35
BR-847 1,052.9 1,080.0 27.1 24.4 1.38
BR-847 Including 1,063.6 1,066.3 2.7 2.4 5.53
BR-882 953.0 957.5 4.5 3.7 0.45 Auro
BR-882 1,015.2 1,022.4 7.2 6.1 25.71
BR-882 Including 1,017.5 1,019.4 1.9 1.6 95.27
Results are preliminary in nature and are subject to on-going QA/QC. Lengths are subject to rounding.
See Appendix B for a LP zone long section.
Fort Knox
At the Kinross-operated, 70%-owned Manh Choh project, the Company is on track for first production in early Q3 2024. Ore and waste mining are ongoing with
the full mining fleet now in operation as planned. Following several months of orientation runs, transportation of ore to Fort Knox, where the ore will be
processed, continues to ramp up with all contracted trucks received, the majority of the drivers onboarded, and trailer manufacturing now complete.
At Fort Knox, mill modifications and site preparation remain on plan, including the completion of the ore delivery road and tie-ins for the pebble recycle
conveyor. Building construction is advancing well, along with interior piping and electrical works.
Round Mountain
The extension strategy at Round Mountain is advancing well. At Phase S, mining is on plan. For the heap leach pad expansion, earthworks began during the
quarter, procurement is advancing as expected and construction activities remain on track.
At Phase X, development of the exploration decline is progressing well, with over 1,800 metres developed to date. The decline has now progressed to the point
that infill drilling of the primary Phase X target can commence in Q2 2024, as planned.
The Company also took the opportunity, as the decline was advancing, to perform exploration drilling in between the open pit and the underground target. This
drilling13 has intersected high-grade mineralization with significant widths in this area outside of the primary Phase X target, which is also an area that did not
have significant historic drilling, as highlighted below:
• DX-0012: 8.4m @ 16.6 g/t Au Eq
• DX-0019: 21.3m @ 9.9 g/t Au Eq
• DX-0014: 9.1m @ 9.5 g/t Au Eq
These results show potential for expansion of the target area for mineralization and for potential future mining at Phase X (see Appendix C).
At Gold Hill , infill drilling of the underground targets is being completed from the bottom of the historical pit and exploration drilling is being completed from
surface, testing continuity and extensions at depth and on strike.
Chile
Kinross’ activities in Chile are currently focused on La Coipa and potential opportunities to extend its mine life. The Lobo-Marte project continues to provide
optionality as a potential large, low-cost mine upon the conclusion of mining at La Coipa. While the Company focuses its technical resources on La Coipa, it
will continue to engage and build relationships with communities related to Lobo-Marte and government stakeholders.
Curlew Basin exploration
At Curlew, Kinross is working on optimizing the potential mine design with a focus on improving the efficiency and margin of potential underground mining. The
Company continues to progress underground drilling to follow up on recent high-grade intersections at the Roadrunner and Stealth vein zones, and has
intersected multiple zones of stockwork veining with assays pending.
Conference call details
In connection with this news release, Kinross will hold a conference call and audio webcast on Wednesday, May 8, 2024, 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 – 1 (888) 330-2446; Passcode: 4915537
Outside of Canada & US – 1 (240) 789-2732; Passcode: 4915537
Replay (available up to 14 days after the call):
Canada & US toll-free – 1 (800) 770-2030; Passcode: 4915537
Outside of Canada & US – 1 (647) 362-9199; Passcode: 4915537
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.
Virtual Annual Meeting of Shareholders
Kinross’ virtual Annual Meeting of Shareholders will be held on Wednesday, May 8, 2024, at 10:00 a.m. EDT.
The virtual meeting will be accessible online at: web.lumiagm.com/#/429018094. 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.
This release should be read in conjunction with Kinross’ 2024 first-quarter unaudited Financial Statements and Management’s Discussion and Analysis report
at www.kinross.com. Kinross’ 2024 first-quarter Financial Statements and Management’s Discussion and Analysis have been filed with Canadian securities
regulators (available at www.sedarplus.ca) and furnished with the U.S. Securities and Exchange Commission (available at www.sec.gov). Kinross shareholders
may obtain a copy of the financial statements free of charge upon request to the Company.
About Kinross Gold Corporation
Kinross is a Canadian-based global senior gold mining company with operations and projects in the United States, Brazil, Mauritania, Chile and Canada. Our
focus is on delivering value based on the core principles of responsible mining, operational excellence, disciplined growth, and balance sheet strength. Kinross
maintains listings on the Toronto Stock Exchange (symbol: K) and the New York Stock Exchange (symbol: KGC).
Media Contact
Victoria Barrington
Senior Director, Corporate Communications
phone: 647-788-4153
Investor Relations Contact
Chris Lichtenheldt
Vice-President, Investor Relations
phone: 416-365-2761
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
2024 2023 2024 2023 2024 2023 2024 2023
Tasiast 159,199 131,045 151,014 128,479 99.7 88.4 660 688
Paracatu 128,273 123,334 128,110 128,344 135.7 118.0 1,059 919
La Coipa 71,245 53,596 71,125 61,780 52.1 44.9 733 727
Fort Knox 53,350 65,387 56,292 65,404 82.5 77.6 1,466 1,186
Round Mountain 68,352 58,832 68,169 58,226 90.6 96.5 1,329 1,657
Bald Mountain 46,980 33,828 47,241 47,283 52.1 58.0 1,103 1,227
United States Total 168,682 158,047 171,702 170,913 225.2 232.1 1,312 1,358
Maricunga - - 449 814 0.2 0.5 445 614
Operations Total 527,399 466,022 522,400 490,330 512.9 483.9 982 987
Interim condensed consolidated balance sheets
(unaudited, expressed in millions of U.S. dollars, except share amounts)
As at
March 31, December 31,
2024 2023
Assets
Current assets
Cash and cash equivalents $ 406.9 $ 352.4
Restricted cash 10.3 9.8
Accounts receivable and other assets 283.2 268.7
Current income tax recoverable 2.7 3.4
Inventories 1,117.7 1,153.0
Unrealized fair value of derivative assets 10.9 15.0
1,831.7 1,802.3
Non-current assets
Property, plant and equipment 7,942.4 7,963.2
Long-term investments 49.4 54.7
Other long-term assets 716.8 710.6
Deferred tax assets 12.6 12.5
Total assets $ 10,552.9 $ 10,543.3
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 466.8 $ 531.5
Current income tax payable 68.6 92.9
Current portion of long-term debt and credit facilities 999.3 -
Current portion of provisions 47.0 48.8
Other current liabilities 12.1 12.3
1,593.8 685.5
Non-current liabilities
Long-term debt and credit facilities 1,234.0 2,232.6
Provisions 893.9 889.9
Long-term lease liabilities 16.4 17.5
Other long-term liabilities 86.8 82.4
Deferred tax liabilities 458.6 449.7
Total liabilities $ 4,283.5 $ 4,357.6
Equity
Common shareholders' equity
Common share capital $ 4,486.5 $ 4,481.6
Contributed surplus 10,640.3 10,646.0
Accumulated deficit (8,912.5) (8,982.6)
Accumulated other comprehensive loss (62.4) (61.3)
Total common shareholders' equity 6,151.9 6,083.7
Non-controlling interests 117.5 102.0
Total equity 6,269.4 6,185.7
Total liabilities and equity $ 10,552.9 $ 10,543.3
Common shares
Authorized Unlimited Unlimited
Issued and outstanding 1,228,982,701 1,227,837,974
Interim condensed consolidated statements of operations
(unaudited, expressed in millions of U.S. dollars, except per share amounts)
Three months ended
March 31, March 31,
2024 2023
Revenue
Metal sales $ 1,081.5 $ 929.3
Cost of sales
Production cost of sales 512.9 483.9
Depreciation, depletion and amortization 270.7 211.9
Total cost of sales 783.6 695.8
Gross profit 297.9 233.5
Other operating expense 27.6 31.2
Exploration and business development 41.7 34.0
General and administrative 35.4 24.4
Operating earnings 193.2 143.9
Other income - net 0.1 4.4
Finance income 3.9 9.4
Finance expense (21.5) (27.5)
Earnings before tax 175.7 130.2
Income tax expense - net (69.1) (39.8)
Net earnings $ 106.6 $ 90.4
Net earnings (loss) attributable to:
Non-controlling interests $ (0.4) $ 0.2
Common shareholders $ 107.0 $ 90.2
Earnings per share attributable to common shareholders
Basic $ 0.09 $ 0.07
Diluted $ 0.09 $ 0.07
Interim condensed consolidated statements of cash flows
(unaudited, expressed in millions of U.S. dollars)
Three months ended
March 31, March 31,
2024 2023
Net inflow (outflow) of cash related to the following activities:
Operating:
Net earnings $ 106.6 $ 90.4
Adjustments to reconcile net earnings to net cash provided from operating activities:
Depreciation, depletion and amortization 270.7 211.9
Finance expense 21.5 27.5
Deferred tax expense 8.6 9.0
Foreign exchange losses and other 17.5 15.4
Reclamation expense - 4.0
Changes in operating assets and liabilities:
Accounts receivable and other assets 10.3 20.0
Inventories 5.9 (43.2)
Accounts payable and accrued liabilities 12.1 (5.8)
Cash flow provided from operating activities 453.2 329.2
Income taxes paid (78.8) (70.2)
Net cash flow provided from operating activities 374.4 259.0
Investing:
Additions to property, plant and equipment (241.9) (221.2)
Interest paid capitalized to property, plant and equipment (34.9) (38.3)
Net (additions) disposals to long-term investments and other assets (3.1) 15.3
Increase in restricted cash - net (0.5) (0.8)
Interest received and other - net 3.9 2.7
Net cash flow of continuing operations used in investing activities (276.5) (242.3)
Net cash flow of discontinued operations provided from investing activities - 5.0
Financing:
Proceeds from drawdown of debt - 100.0
Interest paid (18.5) (24.2)
Payment of lease liabilities (3.4) (15.5)
Funding from non-controlling interest 15.5 5.1
Dividends paid to common shareholders (36.9) (36.8)
Other - net 0.3 2.1
Net cash flow (used in) provided from financing activities (43.0) 30.7
Effect of exchange rate changes on cash and cash equivalents (0.4) 0.5
Increase in cash and cash equivalents 54.5 52.9
Cash and cash equivalents, beginning of period 352.4 418.1
Cash and cash equivalents, end of period $ 406.9 $ 471.0
Operating Summary
Mine Period
Tonnes
Ore
Mined
Ore
Processed
(Milled)
Ore
Processed
(Heap
Leach)
Grade
(Mill)
Grade
(Heap
Leach)
Recovery
(a)(b)
Gold Eq
Production
(c)
Gold Eq
Sales(c)
Production
cost of
sales
Production
cost of
sales/oz(d)
Cap Ex -
sustaining
(e)
Total
Cap Ex
(e)
DD&A
('000
tonnes)
('000
tonnes)
('000
tonnes) (g/t) (g/t) (%) (ounces) (ounces) ($ millions) ($/ounce) ($ millions) ($
millions)
($
millions)
West
Africa Tasiast
Q1
2024 2,044 2,073 - 2.46 - 91% 159,199 151,014 $ 99.7 $ 660 $ 10.1 $ 79.5 $ 77.9
Q4
2023 2,937 2,056 - 3.04 - 93% 160,764 171,199 $ 110.4 $ 645 $ 9.7 $ 85.2 $ 70.6
Q3
2023 3,486 1,796 - 3.10 - 92% 171,140 162,823 $ 108.5 $ 666 $ 12.2 $ 77.3 $ 69.0
Q2
2023 1,688 1,663 - 3.25 - 93% 157,844 152,564 $ 99.5 $ 652 $ 9.1 $ 81.9 $ 58.6
Q1
2023 1,690 1,208 - 3.49 - 91% 131,045 128,479 $ 88.4 $ 688 $ 14.6 $ 64.6 $ 46.2
Americas
Paracatu
Q1
2024 14,078 15,609 - 0.31 - 79% 128,273 128,110 $ 135.7 $ 1,059 $ 19.6 $ 19.6 $ 46.7
Q4
2023 16,865 15,279 - 0.35 - 79% 127,940 132,886 $ 144.2 $ 1,085 $ 41.6 $ 41.6 $ 43.3
Q3
2023 14,725 14,669 - 0.41 - 79% 172,482 167,105 $ 141.2 $ 845 $ 58.4 $ 58.4 $ 53.1
Q2
2023 14,199 15,104 - 0.42 - 80% 164,243 163,889 $ 135.2 $ 825 $ 39.7 $ 39.7 $ 49.8
Q1
2023 8,056 15,130 - 0.37 - 79% 123,334 128,344 $ 118.0 $ 919 $ 27.8 $ 27.8 $ 40.4
La Coipa (f)
Q1
2024 1,035 827 - 2.09 - 87% 71,245 71,125 $ 52.1 $ 733 $ 7.2 $ 7.2 $ 50.0
Q4
2023 1,591 1,188 - 1.92 - 78% 73,823 73,477 $ 52.9 $ 720 $ 7.0 $ 10.9 $ 54.8
Q3
2023 1,137 1,017 - 1.69 - 81% 65,975 65,856 $ 41.4 $ 629 $ 7.5 $ 15.2 $ 48.3
Q2
2023 869 971 - 1.62 - 81% 66,744 67,378 $ 43.6 $ 647 $ 19.9 $ 23.3 $ 48.3
Q1
2023 748 691 - 1.68 - 88% 53,596 61,780 $ 44.9 $ 727 $ 1.6 $ 25.4 $ 36.4
Fort Knox
(100%)(g)
Q1
2024 10,037 1,850 8,778 0.67 0.24 76% 53,350 56,292 $ 82.5 $ 1,466 $ 37.7 $ 78.6 $ 20.5
Q4
2023 11,018 2,173 9,930 0.69 0.22 78% 84,215 81,306 $ 104.3 $ 1,283 $ 50.6 $ 114.3 $ 31.5
Q3
2023 6,667 1,912 5,961 0.81 0.21 78% 71,611 71,616 $ 82.3 $ 1,149 $ 52.1 $ 96.0 $ 24.6
Q2
2023 7,624 2,075 6,837 0.82 0.24 82% 69,438 69,206 $ 79.3 $ 1,146 $ 52.1 $ 90.3 $ 22.1
Q1
2023 7,412 1,966 5,972 0.78 0.22 82% 65,387 65,404 $ 77.6 $ 1,186 $ 38.6 $ 67.8 $ 18.6
Fort Knox
(attributable)
(g)
Q1
2024 10,009 1,850 8,778 0.67 0.24 76% 53,350 56,292 $ 82.5 $ 1,466 $ 37.7 $ 68.8 $ 20.5
Q4
2023 11,014 2,173 9,930 0.69 0.22 78% 84,215 81,306 $ 104.3 $ 1,283 $ 50.6 $ 100.7 $ 31.5
Q3
2023 6,667 1,912 5,961 0.81 0.21 78% 71,611 71,616 $ 82.3 $ 1,149 $ 52.1 $ 84.5 $ 24.6
Q2
2023 7,624 2,075 6,837 0.82 0.24 82% 69,438 69,206 $ 79.3 $ 1,146 $ 52.1 $ 81.5 $ 22.1
Q1
2023 7,412 1,966 5,972 0.78 0.22 82% 65,387 65,404 $ 77.6 $ 1,186 $ 38.6 $ 58.4 $ 18.6
Round
Mountain
Q1
2024 4,246 960 3,257 1.32 0.37 73% 68,352 68,169 $ 90.6 $ 1,329 $ 3.7 $ 19.3 $ 47.3
Q4
2023 4,666 884 2,729 0.91 0.48 68% 55,764 56,495 $ 82.6 $ 1,462 $ 4.6 $ 4.8 $ 45.0
Q3
2023 8,474 911 7,644 0.75 0.38 75% 63,648 61,931 $ 93.1 $ 1,503 $ 7.7 $ 7.8 $ 44.1
Q2
2023 10,496 1,021 10,028 0.67 0.35 76% 57,446 57,412 $ 85.5 $ 1,489 $ 10.5 $ 10.5 $ 33.5
Q1
2023 5,019 878 4,367 0.81 0.44 79% 58,832 58,226 $ 96.5 $ 1,657 $ 7.4 $ 7.4 $ 34.6
Bald
Mountain
Q1
2024 1,480 - 1,480 - 0.42 nm 46,980 47,241 $ 52.1 $ 1,103 $ 32.4 $ 32.4 $ 27.0
Q4
2023 3,894 - 3,918 - 0.47 nm 44,007 49,375 $ 57.1 $ 1,156 $ 36.3 $ 38.8 $ 25.0
Q3
2023 7,412 - 7,412 - 0.39 nm 40,593 41,300 $ 53.9 $ 1,305 $ 20.6 $ 24.9 $ 23.3
Q2
2023 4,142 - 4,119 - 0.42 nm 39,321 42,181 $ 54.5 $ 1,292 $ 16.5 $ 31.4 $ 25.6
Q1
2023 1,864 - 1,857 - 0.47 nm 33,828 47,283 $ 58.0 $ 1,227 $ 6.1 $ 25.2 $ 33.9
(a) Due to the nature of heap leach operations, recovery rates at Bald Mountain cannot be accurately measured on a quarterly basis. Recovery rates
at Fort Knox and Round Mountain represent mill recovery only.
(b) "nm" means not meaningful.
(c) Gold equivalent ounces include silver ounces produced and sold converted to a gold equivalent based on the ratio of the average spot market prices
for the commodities for each period. The ratios for the quarters presented are as follows: Q1 2024: 88.70:1; Q4 2023: 85.00:1; Q3 2023: 81.82:1; Q2
2023: 81.88:1; Q1 2023: 83.82:1.
(d) “Production cost of sales per equivalent ounce sold” is defined as production cost of sales divided by total gold equivalent ounces sold.
(e) "Total Cap Ex" is as reported as “Additions to property, plant and equipment” on the interim condensed consolidated statements of cash flows. "Cap
Ex - sustaining" is a non-GAAP financial measure. The definition and reconciliation of this non-GAAP financial measure is included on pages 20 and
21 of this news release.
(f) La Coipa silver grade and recovery were as follows: Q1 2024: 87.20 g/t, 58%; Q4 2023: 96.24 g/t, 44%; Q3 2023: 106.70 g/t, 63%; Q2 2023: 109.84
g/t, 56%; Q1 2023: 125.77 g/t, 70%.
(g) The Fort Knox segment is composed of Fort Knox and Manh Choh, and comparative results shown are presented in accordance with the current year’s
presentation. Manh Choh tonnes of ore processed and grade were nil for all periods presented as production is expected to commence in the third
quarter of 2024. The attributable results for Fort Knox include 100% of Fort Knox and 70% of Manh Choh.
Reconciliation of non-GAAP financial measures and ratios
The Company has included certain non-GAAP financial measures and ratios in this document. These financial measures and ratios are not defined under IFRS
and should not be considered in isolation. The Company believes that these financial measures and ratios, together with financial measures and ratios
determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. The inclusion of these
financial measures and ratios is meant to provide additional information and should not be used as a substitute for performance measures prepared in
accordance with IFRS. These financial measures and ratios are not necessarily standard and therefore may not be comparable to other issuers.
Adjusted Net Earnings Attributable to Common Shareholders and Adjusted Net Earnings per Share
Adjusted net earnings attributable to common shareholders and adjusted net earnings per share are non-GAAP financial measures and ratios which determine
the performance of the Company, excluding certain impacts which the Company believes are not reflective of the Company’s underlying performance for the
reporting period, such as the impact of foreign exchange gains and losses, reassessment of prior year taxes and/or taxes otherwise not related to the current
period, impairment charges (reversals), gains and losses and other one-time costs related to acquisitions, dispositions and other transactions, and non-hedge
derivative gains and losses. Although some of the items are recurring, the Company believes that they are not reflective of the underlying operating performance
of its current business and are not necessarily indicative of future operating results. Management believes that these measures and ratios, which are used
internally to assess performance and in planning and forecasting future operating results, provide investors with the ability to better evaluate underlying
performance, particularly since the excluded items are typically not included in public guidance. However, adjusted net earnings and adjusted net earnings per
share measures and ratios are not necessarily indicative of net earnings and earnings per share measures and ratios as determined under IFRS.
The following table provides a reconciliation of net earnings to adjusted net earnings for the periods presented: