K.TO · 2020-07-29 12:00:00

Kinross reports strong 2020 second-quarter results Cash flow increased 30% and earnings more than doubled year-over-year, as balance sheet continued to strengthen

Corporate Updates

Kinross reports strong 2020 second-quarter results

Cash flow increased 30% and earnings more than doubled year-over-year, as balance sheet continued to strengthen

TORONTO, July 29, 2020 -- Kinross Gold Corporation (TSX: K, NYSE: KGC) today announced its results for the second-quarter ended June 30, 2020.

(This news release contains forward-looking information about expected future events and financial and operating performance of the Company. We refer to

the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located on page 20 of this release. All dollar amounts are

expressed in U.S. dollars, unless otherwise noted.)

2020 Q2 highlights:

• Production1 of 571,978 attributable gold equivalent ounces (Au eq. oz.), and sales of 584,477 Au eq. oz.

• All Kinross mines continued production during the quarter , as the Company’s comprehensive COVID-19 response plans mitigated operational

risk and continued to help protect the health and safety of employees and host communities.

• Kinross’ three largest producing mines – Paracatu, Kupol and Tasiast – delivered 63% of total production and were the lowest cost mines in the

portfolio, with an average cost of sales of $596 per Au eq. oz.

• Reported net earnings 2 and adjusted net earnings 3 both more than doubled to $195.7 million, or $0.16 per share, and $194.0 million, or $0.15 per

share, respectively, compared with Q2 2019.

• Operating cash flow of $432.8 million and adjusted operating cash flow 3 of $416.9 million, a 30% and 45% increase, respectively, compared with

Q2 2019.

• Production cost of sales1,3 of $725 per Au eq. oz. and all-in sustaining cost1,3 of $984 per Au eq. oz. sold, both of which are within the Company’s

original annual 2020 guidance range.

• Attributable margin per Au eq. oz. sold 4 increased 53% to $987 per Au eq. oz. compared with Q2 2019, outpacing the 31% increase in average

realized gold price to $1,712 per Au oz. compared with Q2 2019.

• Cash and cash equivalents of $1,527.1 million and total liquidity of $2.3 billion at June 30, 2020, as both improved quarter-over-quarter. The

Company also further improved its debt metrics, including its net debt to EBITDA ratio, and has no debt maturities until September 2021.

• While the Company withdrew its full-year guidance as a precautionary measure given the global uncertainties caused by the pandemic, production,

cost of sales per ounce, all-in sustaining cost per ounce and capital expenditures are on track to meet Kinross’ original 2020 guidance.

• On June 15, 2020, Kinross announced an agreement in principle with the Government of Mauritania to enhance the parties’ partnership.

• On July 15, 2020, Kinross announced the results of the Lobo-Marte project pre-feasibility study in Chile, which added 6.4 million Au oz. 5 to the

Company’s mineral reserve estimates and increased its reserve life index by approximately 2.5 years 6.

CEO commentary:

J. Paul Rollinson, President and CEO, made the following comments in relation to 2020 second-quarter results.

“Kinross had a strong second quarter, as we generated robust free cash flow, more than doubled earnings year-over-year, and continued to strengthen our

investment grade balance sheet. Our margins increased 53% year-over-year, well above the 31% increase in the average realized gold price. Our portfolio of

mines performed well and continued production during the quarter, with our three largest producing mines – Paracatu, Kupol and Tasiast – delivering the

lowest costs.

“We have been able to effectively manage COVID-19 impacts on our portfolio of mines during the first half of the year, as our comprehensive pandemic

response plan continued to help protect the health of our employees and communities, while supporting the successful continuation of our business.

Although we prudently withdrew our full-year guidance given the potential impacts of the pandemic on our operations, we continue to work towards the safe

delivery of our annual targets. I would like to thank our employees around the world for their dedication, hard work and commitment to safety during these

challenging times.

“During the quarter, we announced an agreement in principle with the Government of Mauritania that enhances our partnership and will provide further stability

for the long-term success of our Tasiast mine. Earlier this month, we also announced an addition of 6.4 million ounces to our gold reserve estimates with the

completion of the Lobo-Marte pre-feasibility study. This high-quality asset increases our reserve life index and further enhances optionality on our long-term

development project pipeline.

“For the first half of the year, more than 50% of our production came from the Americas, and more than 80% from five key assets in five diverse regions. With

the recent acquisition in Russia, and taking into account our track record of exploration success, we expect these assets and regions will continue to

produce for at least 10 years.”

Financial results

Summary of financial and operating results

Three months

ended Six months ended

June 30, June 30,

(unaudited, expressed in millions of U.S. dollars, except ounces, per share amounts, and per ounce

amounts) 2020 2019 2020 2019

Operating Highlights

Total gold equivalent ounces(a)

Produced(c) 575,846 653,586 1,147,620 1,264,849

Sold(c) 588,485 641,149 1,145,161 1,244,206

Attributable gold equivalent ounces(a)

Produced(c) 571,978 648,251 1,139,305 1,254,282

Sold(c) 584,477 636,035 1,137,219 1,233,684

Financial Highlights

Metal sales $ 1,007.2 $ 837.8$ 1,887.0$ 1,624.0

Production cost of sales $ 428.5 $ 426.1$ 849.8$ 837.8

Depreciation, depletion and amortization $ 210.4 $ 179.9$ 403.5$ 344.0

Reversal of impairment charge $ 48.3 $ -$ 48.3$ -

Operating earnings $ 321.1 $ 144.3$ 513.7$ 259.7

Net earnings attributable to common shareholders $ 195.7 $ 71.5$ 318.4$ 136.2

Basic earnings per share attributable to common shareholders $ 0.16 $ 0.06$ 0.25$ 0.11

Diluted earnings per share attributable to common shareholders $ 0.15 $ 0.06$ 0.25$ 0.11

Adjusted net earnings attributable to common shareholders(b) $ 194.0 $ 79.6$ 321.4$ 162.9

Adjusted net earnings per share(b) $ 0.15 $ 0.06$ 0.26$ 0.13

Net cash flow provided from operating activities $ 432.8 $ 333.0$ 732.4$ 584.6

Adjusted operating cash flow(b) $ 416.9 $ 287.7$ 835.5$ 518.5

Capital expenditures(d) $ 214.3 $ 275.8$ 405.7$ 519.7

Average realized gold price per ounce(b) $ 1,712 $ 1,307$ 1,648$ 1,305

Consolidated production cost of sales per equivalent ounce(c) sold(b) $ 728 $ 665$ 742$ 673

Attributable(a) production cost of sales per equivalent ounce(c) sold(b) $ 725 $ 663$ 739$ 672

Attributable(a) production cost of sales per ounce sold on a by-product basis (b) $ 707 $ 650$ 722$ 659

Attributable(a) all-in sustaining cost per ounce sold on a by-product basis (b) $ 971 $ 918$ 976$ 917

Attributable(a) all-in sustaining cost per equivalent ounce(c) sold(b) $ 984 $ 925$ 988$ 925

Attributable(a) all-in cost per ounce sold on a by-product basis (b) $ 1,208 $ 1,242$ 1,226$ 1,240

Attributable(a) all-in cost per equivalent ounce(c) sold(b) $ 1,217 $ 1,243$ 1,233$ 1,242

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

(b) The definition and reconciliation of these non-GAAP measures is included on pages 14 to 19 of this news release

(c) "Gold equivalent ounces" include silver ounces produced and sold converted to a gold equivalent based on a ratio of the average spot market prices for

the commodities for each period. The ratio for the second quarter of 2020 was 104.49:1 (second quarter of 2019: 87.98:1). The ratio for the first six months of

2020 was 98.85:1 (first six months of 2019: 85.78:1)

(d) "Capital expenditures" is as reported as “Additions to property, plant and equipment” on the interim condensed consolidated statement of cash flows and

excludes “Interest paid capitalized to property, plant and equipment”.

The following operating and financial results are based on 2020 second-quarter gold equivalent production. Production and cost measures are on an

attributable basis:

Production1: Kinross produced 571,978 attributable Au eq. oz. in Q2 2020, compared with 648,251 Au eq. oz. in Q2 2019. The decrease was mainly due to

lower production at Paracatu, Round Mountain and Chirano, partially offset by higher production at Bald Mountain and Kupol.

Production cost of sales1,3: Production cost of sales per Au eq. oz. was $725 for Q2 2020, compared with $663 for Q2 2019. Production cost of sales per

Au oz. on a by-product basis was $707 in Q2 2020, compared with $650 in Q2 2019, based on Q2 2020 attributable gold sales of 574,299 ounces and

attributable silver sales of 1,063,572 ounces.

All-in sustaining cost1,3: All-in sustaining cost per Au eq. oz. sold was $984 in Q2 2020, compared with $925 in Q2 2019. All-in sustaining cost per Au oz.

sold on a by-product basis was $971 in Q2 2020, compared with $918 in Q2 2019.

Revenue : Revenue from metal sales increased 20% to $1,007.2 million in Q2 2020, compared with $837.8 million during the same period in 2019.

Average realized gold price 7: The average realized gold price in Q2 2020 increased 31% to $1,712 per ounce, compared with $1,307 per ounce in Q2

2019.

Margins: Kinross’ attributable margin per Au eq. oz. sold4 increased 53% to $987 per Au eq. oz. for Q2 2020, compared with the Q2 2019 margin of $644 per

Au eq. oz. sold.

Operating cash flow : Adjusted operating cash flow3 for Q2 2020 increased significantly by 45% to $416.9 million, compared with $287.7 million for Q2 2019,

primarily due to the increase in margins.

Net operating cash flow was $432.8 million for Q2 2020, an increase of 30% compared with $333.0 million for Q2 2019.

Earnings: Adjusted net earnings3 more than doubled to $194.0 million, or $0.15 per share, for Q2 2020, compared with adjusted net earnings of $79.6 million,

or $0.06 per share, for Q2 2019, primarily due to the increase in margins.

Reported net earnings2 also more than doubled to $195.7 million, or $0.16 per share, for Q2 2020, compared with net earnings of $71.5 million, or $0.06 per

share, in Q2 2019. The increase was mainly due to higher operating earnings and a non-cash impairment reversal of $48.3 million at Lobo-Marte as a result of

the addition of mineral reserves at the project in conjunction with the recently completed pre-feasibility study, partially offset by the increase in income tax

expense in Q2 2020.

Capital expenditures : Capital expenditures were $214.3 million for Q2 2020, compared with $275.8 million for the same period last year, primarily due to a

decrease in spending at Tasiast as a result of impacts of the pandemic on stripping rates, and decreases at Bald Mountain and Round Mountain.

Balance sheet and financial position

As of June 30, 2020, Kinross had cash and cash equivalents of $1,527.1 million, which increased compared with $1,138.6 million at March 31, 2020. The

quarter-over-over increase was due to free cash flow generated during Q2 2020 and the $200 million drawdown from the Tasiast project financing.

The Company had additional available credit of $811.2 million as of June 30, 2020, and total liquidity of approximately $2.3 billion, with no scheduled debt

repayments until September 2021. The Company had total debt of approximately $2.7 billion, which includes the $750 million draw from the revolving credit

facility in the first quarter and the $200 million in Tasiast project financing, and net debt 8 of approximately $1.1 billion. Kinross has further improved its debt

metrics, including its net debt to EBITDA ratio.

The Company drew down from its revolving credit facility in March 2020 as a precautionary measure to protect against economic and business uncertainties

caused by the COVID-19 pandemic. The Company repaid $250 million of the drawn amount on July 24, 2020 given the increase in the Company’s cash and

cash equivalents and its strong financial position, and does not plan to deploy the remaining funds.

On July 1, 2020, Kinross extended the maturity date of its $300 million letter of credit guarantee facility with Export Development Canada for two years to

June 30, 2022.

Operating results

All of Kinross’ mines continued production during Q2 2020, as the Company’s ongoing response to COVID-19 safeguarded the health and safety of

employees and host communities and mitigated material operational impacts to the portfolio. However, COVID-19 did partially affect overall performance and

productivity rates, mainly as a result of global travel constraints and the implementation of rigorous safety protocols and measures at all mines and projects.

Mine-by-mine summaries for 2020 second-quarter results can be found on pages nine and 13 of this news release. Operational highlights from Q2 2020

include the following:

Americas

Paracatu performed well during the quarter, with production increasing compared with Q1 2020 mainly due to higher mill throughput and grades, while cost of

sales per ounce sold decreased largely as a result of favourable foreign exchange rates. Production was lower compared with Q2 2019’s record performance,

as grades and recoveries decreased as planned. Cost of sales per ounce sold was higher year-over-year mainly due to the lower production, which was offset

by favourable foreign exchange rates.

At Round Mountain , production was lower quarter-over-quarter mainly due to fewer ounces recovered from the heap leach pads, and decreased year-over-

year mainly due to lower mill grades. Cost of sales per ounce sold was higher versus Q1 2020 and Q2 2019 largely due to lower production as a result of

fewer ounces from the heap leach pads, with higher maintenance and contractor costs also contributing to the increase year-over-year.

Bald Mountain had good performance during the quarter, as production increased compared with Q1 2020 and Q2 2019 largely as a result of more ounces

recovered from the Vantage Complex heap leach pad and higher grades. Cost of sales per ounce sold increased compared with Q1 2020 mainly due to higher

cost ounces recovered from the heap leach pads, and was largely in line with Q2 2019.

At Fort Knox, production increased compared with Q1 2020 primarily as a result of higher mill grades and recoveries, while cost of sales per ounce sold

decreased mainly due to higher mill grades and lower energy costs. Production was largely in line year-over-year, with cost of sales per ounce sold

increasing mainly due to a higher percentage of operating waste mined and higher maintenance costs, partially offset by lower energy costs.

Russia

The Russia region continued its strong and consistent performance during the quarter, with production at Kupol and Dvoinoye increasing quarter-over-quarter

and year-over-year, mainly due to higher gold grades. Cost of sales per ounce sold was lower compared with Q1 2020 largely as a result of favourable foreign

exchange rates, and was higher versus Q2 2019 mainly due to higher royalties associated with the increase in the average realized gold price.

West Africa

At Tasiast, production was lower compared with Q1 2020 and Q2 2019 mainly due to the 17-day strike during the quarter and mine sequencing, which was

slightly offset by higher grades. The principal impact of COVID-19 was a lower-than-planned mining rate, which resulted in deferrals of some stripping and

associated capital expenditures. Production is expected to increase during the second half of the year, and, as a result, 2020 production is not expected to

be materially impacted by the deferrals. Throughput performance adjusted for the impact of the strike continued to be strong, with average daily rates slightly

better than the record performance in Q1 2020. Cost of sales per ounce sold increased compared with the previous quarter mainly due to the lower production

and impacts from COVID-19. Cost of sales per ounce sold decreased compared with the previous year mainly due to lower fuel and overhead costs.

In 2021, stripping rates and capital expenditures are expected to be higher compared to those presented in the Tasiast Technical Report as the mine makes

up for the stripping deferred from 2020. A modest reduction in 2021 gold production is also expected compared to the Technical Report due to a longer-than-

planned period of stockpile feed and delayed access to higher grade ore. The Company expects no impacts to Tasiast’s life of mine production, mineral

reserve estimates and overall value, and was able to adjust short-term mine plans given the availability of large stockpiles at site.

At Chirano, production was lower quarter-over-quarter mainly due to temporary downtime at the mill and decreased mining rates from COVID-19 impacts,

both of which were slightly offset by higher grades, while cost of sales per ounce sold decreased mainly due to lower operating waste mined. Production

decreased compared with the previous year mainly due to lower throughput, grades and recoveries, with cost of sales per ounce sold increasing mainly due to

higher operating waste mined.

Development projects

Tasiast 24k

The Tasiast 24k project continues to advance and remains on schedule to increase throughput capacity to 21,000 t/d by the end of 2021, and then to 24,000

t/d by mid-2023. During Q2 2020, COVID-19 impacts affected progress on power plant construction, while civil works in the processing plant, including the

gravity circuit, thickener and screens, progressed well. The project team continues to explore measures to mitigate potential impacts of prolonged constraints

on the global movement of people and supplies, which could affect the project schedule. However, by late June, the Company reinstated more regular

rotations of expatriate staff in Mauritania, which has improved the situation.

Fort Knox Gilmore

The Fort Knox Gilmore project continues to progress well and is on schedule and on budget, with the new Barnes Creek heap leach expected to be

completed in Q4 2020. Stripping is advancing well and the project is now approximately 80% complete.

Chulbatkan

At the Chulbatkan development project in Russia, the 2020 drill program is ramping back up after COVID-19-related challenges reduced drilling rates in the

second quarter and remains on track to be completed by year-end. As of the end of Q2 2020, approximately 35,500 metres of infill, step-out and metallurgical

drilling was completed, with drilling confirming the well disseminated nature of the orebody, including large lower grade intercepts, combined with pockets of

high grade intercepts. In the third quarter, the drilling program will focus on further defining the high-grade zone of the known resource through additional tight-

spaced drilling. The project currently has a large, near-surface estimated mineral resource, with highly continuous mineralization that is open along strike and

at depth.

For Chulbatkan cross-section figure:

https://www.kinross.com/files/doc_financials/2020/q2/KGC-Chulbatkan-Exploration-Figure.pdf

La Coipa Restart and Lobo-Marte

At the La Coipa Restart project, work is ramping up after limitations on people movement challenged the project in the first quarter. Mining crews are being

mobilized and fleet rebuilds are commencing in preparation for pre-stripping, which is expected to start in early 2021, with first production expected in mid-

2022. The project team continues to study opportunities to optimize the mine plan and potentially extend mine life.

On July 15, 2020, Kinross announced results for the Lobo-Marte pre-feasibility study (PFS). The project added a significant 6.4 million gold ounces 5 to

Kinross’ 2019 year-end probable mineral reserve estimates and increased the Company’s reserve life index by approximately 2.5 years 6. The PFS estimate

includes total life of mine production of approximately 4.5 million Au oz. during a 15-year mine life, and pending a positive development decision, is expected

to commence production after the conclusion of mining at the La Coipa project.

The long-term Lobo-Marte project provides Kinross with an excellent, organic development option that has attractive all-in sustaining costs and strong returns

at the consensus long-term gold price. The project is expected to realize significant upside value and increase margins at higher gold prices without having to

increase stripping or current cost estimates as the pit design would remain based on a $1,200/oz. gold price. The Company plans to commence a feasibility

study later this year, with scheduled completion in Q4 2021, and will continue to prioritize balance sheet strength and disciplined capital allocation as it

moves forward with the project.

Exploration update

Exploration activities during the first half of the year continued to focus on promising targets around current operations, and areas where existing infrastructure

can be leveraged, with the goal of extending mine life and adding to the Company’s mineral reserve and resource estimates. Highlights include:

Kupol: During the first half of the year, exploration within the existing footprint of Russia operations were very encouraging, with positive results from the

Kupol NE Extension, Kupol Deeps South, Moroshka and Providence. Exploration will continue to focus on these targets for the rest of 2020, with the goal of

adding significant ounces to Kupol’s mineral reserve and resource estimates at year-end and extending mine life.

Chirano: Exploration at Chirano showed promising results during the first half of the year as the Company continued to target multi-year mine life extensions.

To date, a total of approximately 29,000 metres of drilling was completed at the Akwaaba, Tano, Obra and Mamnao West areas. At Obra, drilling yielded

significant results and has extended the depth of high-grade mineralization. For the second half of the year, Kinross will continue to explore the underground

mining potential at Obra by commencing initial works on an exploration drift to drill from the underground in order to increase accuracy and targeting. Drilling

will also continue to explore the extensions of Akwaaba, Tano and Suraw, and the potential for open pit mining at Mamnao West.

For Chirano Obra cross-section and long-section figures:

https://www.kinross.com/files/doc_financials/2020/q2/KGC-Chirano-Exploration-Figures.pdf

Round Mountain: At Round Mountain, drilling continued at Phase X, which is the northwest continuation of Phase W mineralization. Results received to

date have been encouraging, as drilling has intersected significant mineralization in the upper portions within the shallow portion of Phase X to potentially

optimize the pit shell design, and confirmed that mineralization extends from Phase W. Further drilling is assessing mineralization to reduce the strip ratio at

Phase X.

Curlew Basin Project: The 2020 Curlew exploration program has focused on areas around the historical K2 mine, which is located approximately 35

kilometres north of the Kettle River mill. The program added 162 Au koz. with grades of 8.8 g/t to Kinross’ indicated mineral resource estimates at year-end

2019, and high level engineering and economic assessment of potential mining at the Curlew Basin achieved encouraging results during the first half of the

year. Exploration activities will continue to target incremental high-margin ounces proximal to and extensions of the K2 and K5 deposits by constructing a

series of exploration drifts to explore the highly prospective areas. The drifts will allow for underground drilling that will test the large prospective ground at

optimal drill angles and at expected lower costs.

Exploration work for the second half of the year is expected to also continue at the Company’s other brownfield targets, including Fort Knox, Bald Mountain

and La Coipa. As well, Kinross expects to focus on growing mineral resource estimates at Tasiast Sud in Mauritania and progressing work at district targets

around Kupol-Dvoinoye in Russia.

Agreement in principle with Government of Mauritania

On June 15, 2020, Kinross reached an agreement in principle with the Government of Mauritania to resolve outstanding matters between the parties. The

terms are subject to finalizing definitive agreements and provide Kinross with a 30-year exploitation license for Tasiast Sud, with expedited permitting and the

possibility of early mining. The terms also provide for the reinstatement of a tax exemption on fuel duties and repayment by the Government to Kinross of

outstanding VAT refunds. Kinross also volunteered to update the royalty structure for Tasiast so it is tied to the gold price, is in line with Mauritania’s current

mining conventions and codes, and further aligns interests by ensuring the country receives an appropriate share of economic benefits from the Tasiast mine.

2020 Guidance

The following section of the news release represents forward-looking information and users are cautioned that actual results may vary. We refer to the risks

and assumptions contained in the Cautionary Statement on Forward-Looking Information on page 20 of this news release.

On April 1, 2020, the Company made the prudent decision to withdraw its full-year guidance. Although the COVID-19 pandemic has not materially impacted

Kinross’ overall business performance during the first half of the year, the pandemic continues to present the potential for further business disruptions.

To date, Kinross’ ongoing and comprehensive response to the pandemic has enabled the Company to safeguard employees and local communities, help

prevent the spread of COVID-19, and mitigate operational risk. The Company continues to target the safe delivery of its operating plans and is on track to

meet its original 2020 guidance for production, cost of sales per ounce sold, all-in sustaining cost per ounce sold and capital expenditures.

Q2 2020 conference call details

In connection with the release, Kinross will hold a conference call and audio webcast on Thursday, July 30, 2020 at 8:00 a.m. ET followed by a question-and-

answer session. Please enter the passcode: 5161488 to access the call.

Canada & US toll-free – +1 (833) 968-2237; passcode: 5161488

Outside of Canada & US – +1 (825) 312-2059; passcode: 5161488

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

Canada & US toll-free – +1 (800) 585-8367; passcode: 5161488

Outside of Canada & US – +1 (416) 621-4642; passcode: 5161488

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 news release should be read in conjunction with Kinross’ 2020 second-quarter unaudited Financial Statements and Management’s Discussion and

Analysis report at www.kinross.com. Kinross’ 2020 second-quarter unaudited Financial Statements and Management’s Discussion and Analysis have been

filed with Canadian securities regulators (available at www.sedar.com) and furnished to the U.S. Securities and Exchange Commission (available at

www.sec.gov). Kinross shareholders may obtain a copy of the financial statements free of charge upon request to the Company.

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. Kinross

maintains listings on the Toronto Stock Exchange (symbol:K) and the New York Stock Exchange (symbol:KGC).

Media Contact

Louie Diaz

Senior Director, Corporate Communications

phone: 416-369-6469

[email protected]

_________________________________________________

Investor Relations Contact

Tom Elliott

Senior Vice-President, Investor Relations and Corporate Development

phone: 416-365-3390

[email protected]

Review of operations

Three months ended June 30, (unaudited) Gold equivalent ounces

Produced Sold Production cost of sales

($millions) Production cost of

sales/equivalent ounce sold

2020 2019 2020 2019 2020 2019 2020 2019

Fort Knox 56,031 55,440 56,465 55,740 $ 66.1 $ 50.7 $ 1,171 $ 910

Round Mountain 74,351 90,833 71,087 87,106 51.6 57.8 726 664

Bald Mountain 48,368 40,564 49,594 31,547 42.7 27.0 861 856

Paracatu 138,851 186,167 140,646 186,520 83.6 106.8 594 573

Maricunga - 6,648 1,159 9,474 0.8 8.0 690 844

Americas Total 317,601 379,652 318,951 370,387 244.8 250.3 768 676

Kupol 130,983 127,684 130,771 124,873 79.3 70.2 606 562

Russia Total 130,983 127,684 130,771 124,873 79.3 70.2 606 562

Tasiast 88,579 92,901 98,679 94,748 57.8 58.9 586 622

Chirano (100%) 38,683 53,349 40,084 51,141 46.6 46.7 1,163 913

West Africa Total 127,262 146,250 138,763 145,889 104.4 105.6 752 724

Operations Total 575,846 653,586 588,485 641,149 428.5 426.1 728 665

Less Chirano non-controlling interest (10%) (3,868) (5,335) (4,008) (5,114) (4.7) (4.7)

Attributable Total 571,978 648,251 584,477 636,035 $ 423.8 $ 421.4 $ 725 $ 663

Six months ended June 30, (unaudited) Gold equivalent ounces

Produced Sold Production cost of sales

($millions) Production cost of

sales/equivalent ounce sold

2020 2019 2020 2019 2020 2019 2020 2019

Fort Knox 107,697 93,053 107,233 93,677 $ 130.7 $ 89.5 $ 1,219 $ 955

Round Mountain 158,816 175,968 156,802 170,720 107.7 113.8 687 667

Bald Mountain 90,456 87,819 91,970 74,777 78.4 56.2 852 752

Paracatu 263,217 332,943 261,843 332,917 171.1 201.7 653 606

Maricunga - 17,364 2,470 17,098 1.6 12.8 648 749

Americas Total 620,186 707,147 620,318 689,189 489.5 474.0 789 688

Kupol 251,868 257,772 252,795 255,287 156.2 148.2 618 581

Russia Total 251,868 257,772 252,795 255,287 156.2 148.2 618 581

Tasiast 192,416 194,259 192,629 194,506 109.7 124.9 569 642

Chirano (100%) 83,150 105,671 79,419 105,224 94.4 90.7 1,189 862

West Africa Total 275,566 299,930 272,048 299,730 204.1 215.6 750 719

Operations Total 1,147,620 1,264,849 1,145,161 1,244,206 849.8 837.8 742 673

Less Chirano non-controlling interest (10%) (8,315) (10,567) (7,942) (10,522) (9.4) (9.1)

Attributable Total 1,139,305 1,254,282 1,137,219 1,233,684 $ 840.4 $ 828.7 $ 739 $ 672

Interim condensed consolidated balance sheets

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

As at

June 30, December 31,

2020 2019

Assets

Current assets

Cash and cash equivalents $ 1,527.1 $ 575.1

Restricted cash 13.3 15.2

Accounts receivable and other assets 134.1 137.4

Current income tax recoverable 166.1 43.2

Inventories 985.0 1,053.8

2,825.6 1,824.7

Non-current assets

Property, plant and equipment 6,688.3 6,340.0

Goodwill 158.8 158.8

Long-term investments 105.2 126.2

Investment in joint venture 18.3 18.4

Other long-term assets 568.5 572.7

Deferred tax assets - 35.2

Total assets $ 10,364.7 $ 9,076.0

Liabilities

Current liabilities

Accounts payable and accrued liabilities $ 451.8 $ 469.3

Current income tax payable 53.6 68.0

Current portion of provisions 60.6 57.9

Other current liabilities 43.4 20.3

Deferred payment obligation 141.5 -

750.9 615.5

Non-current liabilities

Long-term debt and credit facilities 2,671.6 1,837.4

Provisions 813.4 838.6

Long-term lease liabilities 32.6 38.9

Unrealized fair value of derivative liabilities 15.9 0.8

Other long-term liabilities 89.2 107.7

Deferred tax liabilities 370.2 304.5

Total liabilities $ 4,743.8 $ 3,743.4

Equity

Common shareholders' equity

Common share capital $ 4,472.0 $ 14,926.2

Contributed surplus 10,704.3 242.1

Accumulated deficit (9,511.0) (9,829.4)

Accumulated other comprehensive income (loss) (59.4) (20.4)

Total common shareholders' equity 5,605.9 5,318.5

Non-controlling interest 15.0 14.1

Total equity 5,620.9 5,332.6

Total liabilities and equity $ 10,364.7 $ 9,076.0

Common shares

Authorized Unlimited Unlimited

Issued and outstanding 1,257,998,978 1,253,765,724

Interim condensed consolidated statements of operations

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

Three months ended Six months ended

June 30, June 30, June 30, June 30,

2020 2019 2020 2019

Revenue

Metal sales $ 1,007.2 $ 837.8 $ 1,887.0 $ 1,624.0

Cost of sales

Production cost of sales 428.5 426.1 849.8 837.8

Depreciation, depletion and amortization 210.4 179.9 403.5 344.0

Reversal of impairment charge (48.3) - (48.3) -

Total cost of sales 590.6 606.0 1,205.0 1,181.8

Gross profit 416.6 231.8 682.0 442.2

Other operating expense 52.9 29.5 74.8 62.4

Exploration and business development 17.9 28.4 37.0 47.9

General and administrative 24.7 29.6 56.5 72.2

Operating earnings 321.1 144.3 513.7 259.7

Other income (expense) - net 9.2 (2.5) 8.6 0.2

Finance income 1.0 1.9 3.0 4.0

Finance expense (32.8) (26.1) (58.5) (53.6)

Earnings before tax 298.5 117.6 466.8 210.3

Income tax expense - net (102.5) (46.5) (147.5) (74.6)

Net earnings $ 196.0 $ 71.1 $ 319.3 $ 135.7

Net earnings (loss) attributable to:

Non-controlling interest $ 0.3 $ (0.4) $ 0.9 $ (0.5)

Common shareholders $ 195.7 $ 71.5 $ 318.4 $ 136.2

Earnings per share attributable to common shareholders

Basic $ 0.16 $ 0.06 $ 0.25 $ 0.11

Diluted $ 0.15 $ 0.06 $ 0.25 $ 0.11

Weighted average number of common shares outstanding (millions)

Basic 1,257.6 1,252.3 1,256.1 1,251.5

Diluted 1,268.5 1,261.2 1,266.9 1,260.3

Interim condensed consolidated statements of cash flows

(unaudited, expressed in millions of U.S. dollars)

Three months ended Six months ended

June 30, June 30, June 30, June 30,

2020 2019 2020 2019

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

Operating:

Net earnings $ 196.0 $ 71.1 $ 319.3 $ 135.7

Adjustments to reconcile net earnings to net cash provided from operating activities:

Depreciation, depletion and amortization 210.4 179.9 403.5 344.0

Reversal of impairment charge (48.3) - (48.3) -

Share-based compensation expense 2.8 3.0 7.3 7.6

Finance expense 32.8 26.1 58.5 53.6

Deferred tax expense (recovery) 44.1 5.8 112.5 (31.4)

Foreign exchange (gains) losses and other (20.9) 1.8 (17.3) 9.0

Changes in operating assets and liabilities:

Accounts receivable and other assets (49.1) (40.3) - (127.7) (25.7)

Inventories 31.6 12.6 39.3 50.0

Accounts payable and accrued liabilities 96.4 56.6 112.2 42.4

Cash flow provided from operating activities 495.8 316.6 859.3 585.2

Income taxes (paid) recovered (63.0) 16.4 (126.9) (0.6)

Net cash flow provided from operating activities 432.8 333.0 732.4 584.6

Investing:

Additions to property, plant and equipment (214.3) (275.8) (405.7) (519.7)

Interest paid capitalized to property, plant and equipment (3.8) (0.9) (26.1) (21.8)

Acquisitions - - (128.3) (30.0)

Net additions to long-term investments and other assets (1.4) (5.9) (3.3) (12.3)

Net proceeds from the sale of property, plant and equipment 0.7 1.2 2.2 2.1

Increase in restricted cash - net (24.9) (0.2) (23.1) (0.8)

Interest received and other - net 0.7 1.2 1.7 2.1

Net cash flow used in investing activities (243.0) (280.4) (582.6) (580.4)

Net cash flow of discontinued operations provided from investing activities

Financing:

Proceeds from drawdown of debt 200.0 100.0 950.0 260.0

Repayment of debt - (80.0) (100.0) (105.0)

Interest paid (3.4) (1.1) (29.0) (28.4)

Payment of lease liabilities (4.8) (3.9) (9.5) (7.2)

Other - net 2.0 (0.4) (4.6) (0.2)

Net cash flow provided from financing activities 193.8 14.6 806.9 119.2

Effect of exchange rate changes on cash and cash equivalents 4.9 1.3 (4.7) 3.0

Increase in cash and cash equivalents 388.5 68.5 952.0 126.4

Cash and cash equivalents, beginning of period 1,138.6 406.9 575.1 349.0

Cash and cash equivalents, end of period $ 1,527.1 $ 475.4 $ 1,527.1 $ 475.4

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)

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)

Fort Knox

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

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

2019 100 7,648 2,615 5,498 0.43 0.20 81% 53,183 55,040 65.9 $ 1,197 37.1 25.0

Americas

2019 100 7,094 2,097 5,250 0.52 0.21 83% 54,027 51,606 58.3 $ 1,130 37.4 24.7

2019 100 4,829 1,811 3,440 0.59 0.20 81% 55,440 55,740 50.7 $ 910 34.9 22.6

Round

Mountain

2020 100 4,431 911 4,357 0.80 0.36 84% 74,351 71,087 $ 51.6 $ 726 $ 36.9 $ 10.2

2020 100 3,700 954 3,594 0.83 0.43 83% 84,465 85,715 56.1 $ 654 41.8 12.6

2019 100 7,408 882 7,140 1.00 0.36 82% 103,501 108,402 79.3 $ 732 62.7 12.6

2019 100 7,128 1,004 7,557 1.05 0.32 85% 82,195 81,617 57.5 $ 705 43.1 9.1

2019 100 4,074 909 3,910 1.17 0.33 86% 90,833 87,106 57.8 $ 664 58.7 10.2

Bald

Mountain

(h)

2020 100 4,051 - 4,051 - 0.53 nm 48,368 49,594 $ 42.7 $ 861 $ 29.6 $ 30.2

2020 100 3,254 - 3,254 - 0.55 nm 42,087 42,376 35.7 $ 842 31.5 26.7

2019 100 2,928 - 3,007 - 0.48 nm 66,147 65,381 49.8 $ 762 54.6 36.3

2019 100 6,494 - 6,494 - 0.41 nm 33,995 37,644 30.6 $ 813 38.9 14.8

2019 100 3,725 - 4,138 - 0.36 nm 40,564 31,547 27.0 $ 856 57.3 12.2

Paracatu

2020 100 15,223 14,703 - 0.40 - 74% 138,851 140,646 $ 83.6 $ 594 $ 49.1 $ 45.2

2020 100 12,350 13,224 - 0.39 - 75% 124,367 121,197 87.5 $ 722 14.4 37.7

2019 100 12,393 14,168 - 0.38 - 76% 140,224 140,430 111.1 $ 791 21.4 42.8

2019 100 12,442 14,731 - 0.38 - 78% 146,396 145,662 99.5 $ 683 36.8 39.5

2019 100 12,307 14,439 - 0.48 - 80% 186,167 186,520 106.8 $ 573 34.5 45.2

Maricunga

(h)

2020 100 - - - - - nm - 1,159 $ 0.8 $ 690 $ - $ 0.3

2020 100 - - - - - nm - 1,311 0.8 $ 610 - 0.3

2019 100 - - - - - nm 3,221 17,455 11.7 $ 670 - 0.4

2019 100 - - - - - nm 18,016 9,203 7.0 $ 761 - 0.4

2019 100 - - - - - nm 6,648 9,474 8.0 $ 844 - 0.5

Russia Kupol (c)(d)

(f)

2020 100 386 416 - 9.73 - 95% 130,983 130,771 $ 79.3 $ 606 $ 5.9 $ 31.1

2020 100 500 425 - 8.73 - 95% 120,885 122,024 76.9 $ 630 5.6 34.4

2019 100 468 435 - 9.14 - 95% 132,009 135,083 83.3 $ 617 15.8 34.8

2019 100 338 431 - 9.65 - 95% 137,562 136,088 82.6 $ 607 7.6 32.2

2019 100 431 432 - 9.23 - 94% 127,684 124,873 70.2 $ 562 8.3 30.7

West

Africa

Tasiast

2020 100 1,134 1,168 - 2.40 - 94% 88,579 98,679 $ 57.8 $ 586 $ 40.6 $ 54.8

2020 100 1,160 1,467 - 2.31 - 95% 103,837 93,950 51.9 $ 552 69.2 40.3

2019 100 1,129 1,379 - 2.39 - 96% 102,973 101,940 50.4 $ 494 86.1 35.0

2019 100 1,010 1,297 - 2.37 - 97% 93,865 86,357 55.1 $ 638 68.2 32.0

2019 100 819 1,281 - 2.19 - 97% 92,901 94,748 58.9 $ 622 74.9 32.2

Chirano -

100%

2020 90 679 785 - 1.85 88% 38,683 40,084 $ 46.6 $ 1,163 $ 5.8 $ 13.1

2020 90 690 873 - 1.73 - 88% 44,465 39,335 47.8 $ 1,215 5.1 15.9

2019 90 737 844 - 2.00 - 91% 48,984 47,186 49.0 $ 1,038 8.0 21.4

2019 90 714 801 - 2.02 - 92% 46,641 49,458 50.0 $ 1,011 4.8 22.0

2019 90 619 904 - 1.95 - 92% 53,349 51,141 46.7 $ 913 2.7 23.8

2020 90 679 785 - 1.85 - 88% 34,815 36,076 $ 41.9 $ 1,163 $ 5.2 $ 11.8

2020 90 690 873 - 1.73 - 88% 40,019 35,401 43.0 $ 1,215 4.7 14.3

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