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Kinross Reports 2013 First-Quarter Results


Kinross Reports 2013 First-Quarter Results

TORONTO, ONTARIO -- (Marketwired) -- 05/07/13 -- Kinross Gold Corporation (TSX:K)(NYSE:KGC) today announced its results for the first quarter ended March 31, 2013.

(This news release contains forward-looking information subject to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located on page six of this release. All dollar amounts in this release are expressed in U.S. dollars, unless otherwise noted. The comparative figures have been recast to exclude Crixas due to its disposal.)

Financial and operating highlights:


 
--  Production(1): 648,897 gold equivalent ounces (Au eq. oz.), compared
    with 588,358 ounces in Q1 2012. 
--  Revenue: $1,058.1 million, compared with $1,005.1 million in Q1 2012. 
--  Production cost of sales(2): $729 per Au eq. oz., compared with $738 in
    Q1 2012. 
--  All-in sustaining cost(2): $1,038 per Au oz. sold, compared with $1,180
    in Q1 2012. 
--  Attributable margin(3): $895 per ounce sold, compared with $906 in Q1
    2012. 
--  Adjusted operating cash flow(2): $411.8 million, or $0.36 per share,
    compared with $319.3 million, or $0.28 per share, in Q1 2012. 
--  Adjusted net earnings(2), (4): $170.5 million, or $0.15 per share,
    compared with $196.1 million, or $0.17 per share, in Q1 2012. 
--  Reported net earnings(4): $160.5 million, or $0.14 per share, compared
    with net earnings of $99.6 million, or $0.09 per share, for Q1 2012. 
--  Outlook: The Company expects to be within its 2013 forecast guidance for
    production (2.4-2.6 million attributable gold equivalent ounces),
    production cost of sales ($740-$790 per gold equivalent ounce), all-in
    sustaining cost ($1,100-$1,200 per gold ounce sold) and capital
    expenditures ($1.6 billion).   

Development projects:


 
--  The Company announced results of the Tasiast expansion project pre-
    feasibility study on April 29, 2013. The Company is proceeding to a full
    feasibility study on a 38,000 tonne per day (tpd) mill. The feasibility
    study is expected to be completed in the first quarter of 2014. 
--  Dvoinoye remains on schedule to commence full production in the second
    half of the year. 

Board of Directors:


 
--  On April 3, 2013, Kinross announced the appointments of Mr. John Macken,
    Ms. Una Power, and Ms. Ruth Woods to its Board of Directors. 

CEO Commentary

J. Paul Rollinson, CEO, made the following comments in relation to first-quarter 2013 results:

"Our continued focus on operational fundamentals contributed to solid results in the first quarter, as production was higher and cost of sales per ounce was lower than the same period last year. We are on target to meet our annual guidance for production and cost of sales at each of our regions, and company-wide.

"We continue to focus on margin and cash flow, versus production at any cost, in our mine planning and production decisions. At the same time, we continue to pursue opportunities to reduce capital spending and operating costs across our operations.

"During the quarter, we made excellent development progress at Dvoinoye, and completed the Tasiast pre-feasibility study on schedule. We are proceeding to a feasibility study at Tasiast, and plan to make a decision on whether to proceed with construction of an expanded operation following completion of the study."

Financial results

Summary of financial and operating results


 
----------------------------------------------------------------------------
                                                          Three months ended
                                                                   March 31,
                                                      ----------------------
(dollars in millions, except per share and per ounce                        
 amounts)                                                    2013       2012
----------------------------------------------------------------------------
                                                                            
Total gold equivalent ounces(a)(e) - Produced (c)         655,610    611,838
Total gold equivalent ounces(a)(e) - Sold (c)             652,197    629,505
                                                                            
Gold equivalent ounces from continuing operations                           
 (a)(d) - Produced (c)                                    655,610    595,949
Gold equivalent ounces from continuing operations                           
 (a)(d) - Sold (c)                                        652,197    612,352
                                                                            
Total attributable gold equivalent ounces(a)(e) -                           
 Produced (c)                                             648,897    604,247
Total attributable gold equivalent ounces(a)(e) - Sold                      
 (c)                                                      645,252    621,680
                                                                            
Attributable gold equivalent ounces from continuing                         
 operations (a)(d) - Produced (c)                         648,897    588,358
Attributable gold equivalent ounces from continuing                         
 operations (a)(d) - Sold (c)                             645,252    604,527
                                                                            
Financial Highlights from Continuing Operations (d)                         
Metal sales                                             $ 1,058.1  $ 1,005.1
Production cost of sales                                $   475.7  $   451.7
Depreciation, depletion and amortization                $   227.7  $   142.5
Operating earnings                                      $   250.9  $   301.2
Net earnings from continuing operations attributable                        
 to common shareholders                                 $   160.5  $    99.6
Basic earnings per share from continuing operations                         
 attributable to common shareholders                    $    0.14  $    0.09
Diluted earnings per share from continuing operations                       
 attributable to common shareholders                    $    0.14  $    0.09
Adjusted net earnings from continuing operations                            
 attributable to common shareholders(b)                 $   170.5  $   196.1
Adjusted net earnings from continuing operations per                        
 share(b)                                               $    0.15  $    0.17
Net cash flow of continuing operations provided from                        
 operating activities                                   $   358.1  $   380.0
Adjusted operating cash flow from continuing                                
 operations(b)                                          $   411.8  $   319.3
Adjusted operating cash flow from continuing                                
 operations per share(b)                                $    0.36  $    0.28
Average realized gold price per ounce from continuing                       
 operations                                             $   1,624  $   1,644
Consolidated production cost of sales from continuing                       
 operations per equivalent ounce(c) sold(b)             $     729  $     738
Attributable(a) production cost of sales from                               
 continuing operations per equivalent ounce(c) sold(b)  $     729  $     738
At
tributable(a) production cost of sales from                               
 continuing operations per ounce sold on a by-product                       
 basis(b)                                               $     674  $     655
Attributable(a) all-in sustaining cost from continuing                      
 operations per ounce sold on a by-product basis(b)     $   1,038  $   1,180
                                                                            
(a)  Total includes 100% of Chirano production. "Attributable" includes     
     Kinross' share of Chirano (90%) production.                            
(b)  The definition and reconciliation of these non-GAAP financial measures 
     is included on pages eight to 10 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   
     first quarter of 2013 was 54.19:1, compared with 51.82:1 for the first 
     quarter of 2012.                                                       
(d)  The comparative figures have been recast to exclude Crixas' results due
     to its disposal.                                                       
(e)  The total gold equivalent ounces and total attributable gold equivalent
     ounces include Crixas.                                                 
----------------------------------------------------------------------------

The following operating and financial results are based on first-quarter 2013 attributable gold equivalent production from continuing operations:

Production: Kinross produced 648,897 attributable gold equivalent ounces from continuing operations in the first quarter of 2013, a 10% increase over the first quarter of 2012, mainly due to production increases at Tasiast and Fort Knox.

Production cost of sales: Production cost of sales per gold equivalent ounce(2) was $729 for the first quarter of 2013, compared with $738 for the first quarter of 2012. The decrease was mainly due to the continued focus on cost management and the increase in gold ounces sold. Production cost of sales per gold ounce on a by-product basis was $674 in the first quarter of 2013, compared with $655 in Q1 2012, based on Q1 2013 attributable gold sales of 606,767 ounces and attributable silver sales of 2,085,425 ounces.

All-in sustaining cost: Attributable all-in sustaining cost per gold ounce sold(2) was $1,038 in Q1 2013, compared with $1,180 in Q1 2012, mainly as a result of increased ounces sold and the timing of sustaining capital spending. The Company expects all-in sustaining cost per gold ounce sold to be within the previously disclosed guidance range of $1,100 to $1,200 for the year.

Revenue: Revenue from metal sales was $1,058.1 million in the first quarter of 2013, compared with $1,005.1 million during the same period in 2012, an increase of 5%, mainly due to an increase in gold equivalent ounces sold. The average realized gold price was $1,624 per ounce in Q1 2013, compared with $1,644 per ounce for Q1 2012.

Margins: Kinross' margin per gold equivalent ounce sold(3) was $895 for the first quarter of 2013, a decrease of 1% compared with Q1 2012 margin of $906 per gold equivalent ounce.

Operating cash flow: Adjusted operating cash flow(2) was $411.8 million for the quarter, or $0.36 per share, compared with $319.3 million, or $0.28 per share, for Q1 2012.

Cash balance: Cash and cash equivalents and short-term investments were $1,420.8 million as at March 31, 2013, compared with $1,982.5 million as at December 31, 2012.

Earnings: Adjusted net earnings(2), (4) were $170.5 million, or $0.15 per share, for Q1 2013, compared with $196.1 million, or $0.17 per share, for Q1 2012.

Reported net earnings(4) were $160.5 million, or $0.14 per share, for Q1 2013, compared with earnings of $99.6 million, or $0.09 per share, for Q1 2012.

Capital expenditures: Capital expenditures were $317.8 million for Q1 2013, compared with $529.3 million for the same period last year, a decrease due mainly to timing of expenditures at the Tasiast expansion project, and the completion of the fourth ball mill at Paracatu and SART plant at Maricunga in 2012.

Operating results

Mine-by-mine summaries for first-quarter operating results may be found on pages 11 and 15 of this news release. Highlights include the following:

North America: Performance was strong in the first quarter, and the region is on track to meet both production and production cost of sales guidance for the year. Regional production was higher compared with Q1 2012, but lower compared with the previous quarter, mainly due to the expected winter slow-down of production from the heap leach at Fort Knox, and lower mill output as a result of harder ore and slightly lower grade. The harder ore Fort Knox encountered during the quarter is not expected to continue in Q2. Kettle River-Buckhorn had an outstanding quarter, as throughput increased compared with the previous quarter, while Round Mountain performed as anticipated during the quarter.

Russia: The region is on target to meet both production and production cost of sales guidance for the year. First quarter production at Kupol was largely in line with Q1 2012, but was lower compared with Q4 2012 as a result of expected lower grades. Mill throughput and recoveries remained strong.

West Africa: Performance was strong during the first quarter and the region is on target to meet both production and production cost of sales guidance for the year. Tasiast achieved its highest quarterly production since being acquired by Kinross. The production increase was mainly due to higher mining rates and expected higher grades entering the mill, along with improved performance from the dump leach. Chirano performed ahead of expectations for the quarter, but production was lower than Q4 2012 as a result of expected lower grades and a slight reduction in mill throughput.

South America: The region is on target to meet both production and production cost of sales guidance for the year. Paracatu achieved record mill throughput and continued to achieve higher mill recoveries. Production at Paracatu was lower than the previous quarter mainly due to expected lower grades at both mills, particularly at Plant 2. Maricunga's decrease in production was a result of less favourable heap performance, and lower grades from transitional ore as the bottom of the current phase is mined. Due to anticipated lower grades, La Coipa's production decreased relative to Q4 2012. As previously disclosed, the Company expects to suspend mining of the existing orebody at La Coipa in the second half of the year.

Project update and new developments

The forward-looking information contained in this section of the release is subject to the risks and assumptions contained in the Cautionary Statement on Forward-Looking Information on page six of this news release.

Tasiast expansion project

On April 29, 2013, Kinross announced the results of its pre-feasibility (PFS) study for the Tasiast expansion. Based on the PFS study results, the Company is proceeding to a full feasibility study on an expanded Tasiast operation with a 38,000 tpd mill. The feasibility study is scheduled for completion in the first quarter of 2014.

Following completion of the feasibility study, the Company will make a decision on whether to complete engineering and proceed with construction. The decision will depend on a range of factors, including gold price assumptions and projections, expected economic returns, and various technical and other considerations.

During the first quarter, work on a large part of the basic infrastructure improvements at Tasiast neared completion, including the power station, truck shop and other facilities. The new camp was completed in the quarter, and permitting, engineering and bidding for a permanent seawater supply system are progressing as expected.

Dvoinoye

Underground development at Dvoinoye progressed ahead of plan, with 1,567 metres completed. All necessary permits for the current scope of underground development and construction activities are in place, including approval of the mine design. Infrastructure construction progressed on schedule, inclu ding advancing the installation of the permanent man camp, truck shop and administrative building.

Expansion of Kupol's mill capacity to 4,500 tpd is well underway, with final completion expected to take place in the third quarter.

The project remains on schedule and on budget and is expected to commence full production in the second half of the year.

Fruta del Norte

As previously disclosed, the Company is engaged in negotiations with the Ecuadorian government regarding exploitation and investment protection agreements for the Fruta Del Norte (FDN) project, and thus far the parties have been unable to reach agreement on certain key economic and legal matters.

The Company respects the sovereign authority of the Ecuadorian government, and a meeting with the newly appointed Minister for Non-Renewable Natural Resources has been requested with a view to continuing dialogue on the key outstanding matters.

The Company can give no assurances that an agreement acceptable to the parties can be reached within the required time frame(5).

Outlook

The forward-looking information contained in this section is subject to the risk factors and assumptions contained in the Cautionary Statement on Forward-Looking Information located on page six of this news release.

As previously announced on February 13, 2013, Kinross expects to produce approximately 2.4-2.6 million gold equivalent ounces for the year, and meet regional production guidance.

The Company expects to be within its regional production cost of sales guidance and meet its company-wide production cost of sales range of $740-$790 per gold equivalent ounce and its all-in sustaining costs range of $1,100-$1,200 per gold ounce sold on a by-product basis in 2013.

The Company also expects to meet its 2013 capital expenditures forecast of approximately $1.6 billion.

Other developments

Board of Directors appointments

Kinross announced the appointments of Mr. John Macken, Ms. Una Power, and Ms. Ruth Woods to its Board of Directors, effective April 3, 2013. Mr. Macken, Ms. Power, and Ms. Woods will be nominated as Directors for election by shareholders at the Kinross Annual Meeting of Shareholders on May 8, 2013. The appointments bring membership on the Kinross Board of Directors to 12, following the retirement of Mr. George Michals in 2012.

Convertible senior notes

On March 15, 2013, the Company repurchased convertible senior notes totaling $454.6 million that were tendered by the holders under their right to require Kinross to repurchase the convertible senior notes on March 15, 2013.

On April 30, 2013, the Company redeemed, in cash, the remaining $5.4 million of convertible senior notes.

Conference call details

In connection with the release, Kinross will hold a conference call and audio webcast on Wednesday, May 8, 2013 at 7:45 a.m. ET to discuss the results, followed by a question-and-answer session. To access the call, please dial:


 
Canada & US toll-free - 1-800-319-4610                                      
Outside of Canada & US - 1-604-638-5340                                     

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


 
Canada & US toll-free - 1-800-319-6413; Passcode - 3310 followed by #.      
Outside of Canada & US - 1-604-638-9010; Passcode - 3310 followed by #.     

You may also access the conference call on a listen-only basis via webcast at our website www.kinross.com. The audio webcast will be archived on our website at www.kinross.com.

Kinross will hold its Annual Meeting of Shareholders on Wednesday, May 8, 2013, at 10 a.m. ET at the Design Exchange, 234 Bay Street, Toronto, Ontario, Canada. A live audio webcast (listen-only mode) of the Annual Meeting of Shareholders will be available at www.kinross.com.

This release should be read in conjunction with Kinross' 2013 first quarter Financial Statements and Management's Discussion and Analysis report at www.kinross.com.

Kinross' unaudited 2013 first quarter 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.

About Kinross Gold Corporation

Kinross is a Canadian-based gold mining company with mines and projects in Brazil, Canada, Chile, Ecuador, Ghana, Mauritania, Russia and the United States, employing approximately 9,000 people worldwide. Kinross maintains listings on the Toronto Stock Exchange (symbol:K) and the New York Stock Exchange (symbol:KGC).

Cautionary statement on forward-looking information

All statements, other than statements of historical fact, contained or incorporated by reference in this news release, but not limited to, any information as to the future financial or operating performance of Kinross, constitute "forward-looking information" or "forward-looking statements" within the meaning of certain securities laws, including the provisions of the Securities Act (Ontario) and the provisions for "safe harbour" under the United States Private Securities Litigation Reform Act of 1995 and are based on expectations, estimates and projections as of the date of this news release. Forward-looking statements include, without limitation, statements with respect to: possible events, the future price of gold and silver, the estimation of mineral reserves and mineral resources, the realization of mineral reserve and mineral resource estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of projects and new deposits, success of exploration, development and mining activities, permitting timelines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. The words "anticipates", "plans", "expects", "indicative", "intend", "scheduled", "timeline", "estimates", "forecasts", "guidance", "opportunity", "outlook", "potential", "projected", "pursue", "seek", "strategy", "study", "targets", "models", or "believes", or variations of or similar such words and phrases or statements that certain actions, events or results "may", "could", "would", or "should", "might", or "will be taken", "occur" or "be achieved" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Kinross as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates, models and assumptions of Kinross referenced, contained or incorporated by reference in this news release, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth herein and in our most recently filed Annual Information Form and our full-year 2012 Management's Discussion and Analysis as well as: (1) there being no significant disruptions affecting the operations of the Company or any entity in which it now or hereafter directly or indirectly holds an investment, whether due to labour disruptions, supply disruptions, power disruptions, damage to equipment or otherwise; (2) permitting, development, operations and expansion at Paracatu (including, without limitation, land acquisitions and permitting for the construction and operation of the new tailings facility) being consistent with our current expectations; (3) the viability, permitting and development of the Fruta del Norte deposit, and its continuing ownership by the Company, being consistent with Kinross' current expectations; (4) political and legal developments in any jurisdiction in which the Company, or any entity in which it now or hereafter directly or indirectly holds an investment, operates being consistent with its current expectations including, without limitation, the implementation of Ecuador's mining and investment laws (and prospective amendment to these laws) and related regulations and policies, being consistent with Kinross' current expectations; (5) negotiation of an exploitation contract and an investment protection contract for Fruta del Norte with the Ecuadorian government being successfully concluded, including but not limited to Kinross and the government jointly declaring a phase change from economic evaluation to exploitation prior to August 1, 2013 (or any government approved extension of up to 1.5 years or up to a two year suspension of commencement of the exploitation phase) and entering into an exploitation agreement with the government within six months of such declared phase change or such suspension, the failure of which will likely result in the extinguishment of the FDN concession

and forfeiture of related project infrastructure to the government, with a corresponding non-cash charge equal to the carrying value of FDN being recorded by the Company; (6) the exchange rate between the Canadian dollar, Brazilian real, Chilean peso, Russian rouble, Mauritanian ouguiya, Ghanaian cedi and the U.S. dollar being approximately consistent with current levels; (7) certain price assumptions for gold and silver; (8) prices for diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; (9) production and cost of sales forecasts for the Company, and entities in which it now or hereafter directly or indirectly holds an investment, meeting expectations; (10) the accuracy of the current mineral reserve and mineral resource estimates of the Company (including but not limited to ore tonnage and ore grade estimates) and any entity in which it now or hereafter directly or indirectly holds an investment; (11) labour and materials costs increasing on a basis consistent with Kinross' current expectations; (12) permitting, development and operations at Dvoinoye (including, without limitation, renewal of the subsoil license) being consistent with Kinross' expectations; (13) permitting, development, operations and expansion at Tasiast and Chirano (including but not limited to, at Tasiast, the expansion feasibility study and project optimization, the impact of ore tonnage and grade variability reconciliation analysis and, as required, conversion of exploration licences to mining licences) being consistent with Kinross' current expectations; (14) the terms and conditions of the legal and fiscal stability agreements for the Tasiast and Chirano operations being interpreted and applied in a manner consistent with their intent and Kinross' expectations; (15) goodwill and/or asset impairment potential; and (16) access to capital markets, including but not limited to maintaining an investment grade debt rating and securing partial project financing for the Dvoinoye, Fruta del Norte and the Tasiast expansion projects, being consistent with the Company's current expectations. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: fluctuations in the currency markets; fluctuations in the spot and forward price of gold or certain other commodities (such as diesel fuel and electricity); increases in the discount rates applied to present value net future cash flows based on country-specific real weighted average cost of capital; declines in the market valuations of peer group gold producers and the Company, and the resulting impact on market price to net asset value multiples; changes in interest rates or gold or silver lease rates that could impact the mark-to-market value of outstanding derivative instruments and ongoing payments/receipts under any interest rate swaps and variable rate debt obligations; risks arising from holding derivative instruments (such as credit risk, market liquidity risk and mark-to-market risk); changes in national and local government legislation, taxation (including but not limited to income tax, advance income tax, stamp tax, withholding tax, capital tax, tariffs, value-added or sales tax, capital outflow tax, capital gains tax, windfall or windfall profits tax, royalty, excise tax, customs/import or export taxes/duties, asset taxes, asset transfer tax, property use or other real estate tax, together with any related fine, penalty, surcharge, or interest imposed in connection with such taxes), controls, policies and regulations; the security of personnel and assets; political or economic developments in Canada, the United States, Chile, Brazil, Russia, Ecuador, Mauritania, Ghana, or other countries in which Kinross, or entities in which it now or hereafter directly or indirectly holds an interest, do business or may carry on business; business opportunities that may be presented to, or pursued by, us; our ability to successfully integrate acquisitions and complete divestitures; operating or technical difficulties in connection with mining or development activities; employee relations; commencement of litigation against the Company including, but not limited to, securities class actions in Canada and/or the United States; the speculative nature of gold exploration and development including, but not limited to, the risks of obtaining necessary licenses and permits; diminishing quantities or grades of reserves; adverse changes in our credit rating; and contests over title to properties, particularly title to undeveloped properties. In addition, there are risks and hazards associated with the business of gold exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance, or the inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, Kinross' actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Kinross, including but not limited to resulting in an impairment charge on goodwill and/or assets. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those made in our other filings with the securities regulators of Canada and the United States including, but not limited to, the cautionary statements made in the "Risk Factors" section of our most recently filed Annual Information Form and full-year 2012 and Q1 2013 Management Discussion and Analysis. These factors are not intended to represent a complete list of the factors that could affect Kinross. Kinross disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.

Key Sensitivities

Approximately 60%-70% of the Company's costs are denominated in US dollars.

A 10% change in foreign exchange could result in an approximate $9 impact in production cost of sales per ounce(6).

A $10 per barrel change in the price of oil could result in an approximate $2 impact on production cost of sales per ounce.

The impact on royalties of a $100 change in the gold price could result in an approximate $3 impact on cost of sales per ounce.

Other information

Where we say "we", "us", "our", the "Company", or "Kinross" in this news release, we mean Kinross Gold Corporation and/or one or more or all of its subsidiaries, as may be applicable.

The technical information about the Company's material mineral properties contained in this news release has been prepared under the supervision of and verified by Mr. James K. Fowler, an officer of the Company who is a "qualified person" within the meaning of National Instrument 43-101.

Reconciliation of non-GAAP financial measures

The Company has included certain non-GAAP financial measures in this document. These measures are not defined under IFRS and should not be considered in isolation. The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. The inclusion of these measures is meant to provide additional information and should not be used as a substitute for performance measures prepared in accordance with IFRS. T hese measures 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 are non-GAAP measures 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, 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, 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 are not necessarily indicative of net earnings and earnings per share measures as determined under IFRS.

The following table provides a reconciliation of net earnings from continuing operations to adjusted net earnings from continuing operations for the periods presented:


 
----------------------------------------------------------------------------
                                                           GAAP to Adjusted 
                                                              Earnings from 
                                                      Continuing Operations 
                                                             Reconciliation 
                                                    ------------------------
                                                         Three months ended 
(in millions, except share and per share amounts)                 March 31, 
                                                    ------------------------
                                                           2013        2012 
                                                    ------------------------
                                                                            
Net earnings from continuing operations attributable                        
 to common shareholders - as reported                $    160.5  $     99.6 
                                                    ------------------------
                                                                            
Adjusting items:                                                            
  Foreign exchange losses (gains)                           3.6        (7.5)
  Non-hedge derivatives gains - net of tax                    -       (10.1)
  Gains on sale of other assets - net of tax               (0.6)          - 
  Foreign exchange loss (gain) on translation of tax                        
   basis and foreign exchange on deferred income                            
   taxes within income tax expense                         (2.6)        2.5 
  Change in deferred income tax due to a change in                          
   statutory corporate income tax rate                        -       110.3 
  Taxes in respect of prior years                           4.0         1.3 
  Impairment of investments                                 5.6           - 
                                                    ------------------------
                                                           10.0        96.5 
                                                    ------------------------
Net earnings from continuing operations attributable                        
 to common shareholders - Adjusted                   $    170.5  $    196.1 
                                                    ------------------------
                                                    ------------------------
Weighted average number of common shares outstanding                        
 - Basic                                                1,140.6     1,138.1 
                                                    ------------------------
Net earnings from continuing operations per share -                         
 Adjusted                                            $     0.15  $     0.17 
                                                    ------------------------
                                                    ------------------------
                                                                            
----------------------------------------------------------------------------

The Company makes reference to a non-GAAP measure for adjusted operating cash flow and adjusted operating cash flow per share. Adjusted operating cash flow is defined as cash flow from operations excluding certain impacts which the Company believes are not reflective of the Company's regular operating cash flow, and excluding changes in working capital. Working capital can be volatile due to numerous factors, including the timing of tax payments, and in the case of Kupol, a build-up of inventory due to transportation logistics. The Company uses adjusted operating cash flow internally as a measure of the underlying operating cash flow performance and future operating cash flow-generating capability of the Company. However, adjusted operating cash flow and adjusted operating cash flow per share measures are not necessarily indicative of net cash flow from operations as determined under IFRS.

The following table provides a reconciliation of adjusted operating cash flow from continuing operations for the periods presented:


 
----------------------------------------------------------------------------
                                                           GAAP to Adjusted 
                                                        Operating Cash Flow 
                                                            from Continuing 
                                                                 Operations 
                                                    ------------------------
                                                         Three months ended 
(in millions, except share and per share amounts)                 March 31, 
                                                    ------------------------
                                                           2013        2012 
                                                    ------------------------
                                                                            
Net cash flow of continuing operations provided from                        
 operating activities - as reported                  $    358.1  $    380.0 
                                                    ------------------------
                                                                            
Adjusting items:                                                            
  Close out and early settlement of derivative                              
   instruments                                                -       (28.4)
  Working capital changes:                                                  
    Accounts receivable and other assets                  (28.7)       28.5 
    Inventories                                            34.9        (1.2)
    Accounts payable and other liabilities,                                 
     including taxes                                       47.5       (59.6)
                                                    ------------------------
                                                           53.7       (60.7)
                                                    ------------------------
Adjusted operating cash flow fro
m continuing                                
 operations                                          $    411.8  $    319.3 
                                                    ------------------------
                                                    ------------------------
Weighted average number of common shares outstanding                        
 - Basic                                                1,140.6     1,138.1 
                                                    ------------------------
Adjusted operating cash flow from continuing                                
 operations per share                                $     0.36  $     0.28 
                                                    ------------------------
                                                    ------------------------
                                                                            
----------------------------------------------------------------------------

Consolidated production cost of sales per gold equivalent ounce sold is a non-GAAP measure and is defined as production cost of sales as per the consolidated financial statements divided by the total number of gold equivalent ounces sold. This measure converts the Company's non-gold production into gold equivalent ounces and credits it to total production.

Attributable production cost of sales per gold equivalent ounce sold is a non-GAAP measure and is defined as attributable production cost of sales divided by the attributable number of gold equivalent ounces sold. This measure converts the Company's non-gold production into gold equivalent ounces and credits it to total production.

Management uses these measures to monitor and evaluate the performance of its operating properties.


 
----------------------------------------------------------------------------
                                                           Consolidated and 
                                                       Attributable Cost of 
                                                      Sales from Continuing 
                                                             Operations Per 
                                                      Equivalent Ounce Sold 
                                                    ------------------------
                                                                            
                                                    ------------------------
(in millions, except ounces and production cost of       Three months ended 
 sales per equivalent ounce)                                      March 31, 
                                                    ------------------------
                                                           2013        2012 
                                                    ------------------------
                                                                            
Production cost of sales from continuing operations                         
 - as reported(1)                                    $    475.7  $    451.7 
Less: portion attributable to Chirano non-                                  
 controlling interest                                      (5.1)       (5.4)
                                                    ------------------------
Attributable production cost of sales from                                  
 continuing operations                               $    470.6  $    446.3 
                                                    ------------------------
                                                    ------------------------
                                                                            
Gold equivalent ounces sold from continuing                                 
 operations                                             652,197     612,352 
Less: portion attributable to Chirano non-                                  
 controlling interest                                    (6,945)     (7,825)
                                                    ------------------------
Attributable gold equivalent ounces sold from                               
 continuing operations                                  645,252     604,527 
                                                    ------------------------
                                                    ------------------------
Consolidated production cost of sales from                                  
 continuing operations per equivalent ounce sold     $      729  $      738 
Attributable production cost of sales from                                  
 continuing operations per equivalent ounce sold     $      729  $      738 
----------------------------------------------------------------------------
                                                                            
(1)  "Production cost of sales" is equivalent to "Total cost of sales" per  
     the interim financial statements less depreciation, depletion and      
     amortization and impairment charges.                                   

Attributable production cost of sales per ounce sold on a by-product basis is a non-GAAP measure which calculates the Company's non-gold production as a credit against its per ounce production costs, rather than converting its non-gold production into gold equivalent ounces and crediting it to total production, as is the case in co-product accounting. Management believes that this measure provides investors with the ability to better evaluate Kinross' production cost of sales per ounce on a comparable basis with other major gold producers who routinely calculate their cost of sales per ounce using by-product accounting rather than co-product accounting.

The following table provides a reconciliation of attributable production cost of sales per ounce sold on a by-product basis for the periods presented:


 
----------------------------------------------------------------------------
                                                       Attributable Cost of 
                                                      Sales from Continuing 
                                                       Operations Per Ounce 
                                                       Sold on a By-Product 
                                                                      Basis 
                                                    ------------------------
(in millions, except ounces and production cost of       Three months ended 
 sales per ounce)                                                 March 31, 
                                                    ------------------------
                                                           2013        2012 
                                                    ------------------------
                                                                            
Production cost of sales from continuing operations                         
 - as reported(1)                                    $    475.7  $    451.7 
Less: portion attributable to Chirano non-                                  
 controlling interest                                      (5.1)       (5.4)
Less: attributable silver sales from continuing                             
 operations                                               (61.9)      (83.7)
                                                    ------------------------
Attributable production cost of sales from                                  
 continuing operations net of silver by-product                             
 revenue                                             $    408.7  $    362.6 
                                                    ------------------------
                                                    ------------------------
                                                                            
Gold ounces sold from continuing operations             613,683     561,152 
Less: portion attributable to Chirano non-                                  
 
 controlling interest                                    (6,916)     (7,800)
                                                    ------------------------
Attributable gold ounces sold from continuing                               
 operations                                             606,767     553,352 
                                                    ------------------------
                                                    ------------------------
Attributable production cost of sales from                                  
 continuing operations per ounce sold on a by-                              
 product basis                                       $      674  $      655 
                                                    ------------------------
                                                                            
----------------------------------------------------------------------------
                                                                            
(1)  "Production cost of sales" is equivalent to "Total cost of sales" per  
     the interim financial statements less depreciation, depletion and      
     amortization and impairment charges.                                   

All-in sustaining cost - attributable is a non-GAAP measure that the Company has defined to include attributable production cost of sales from continuing operations net of silver by-product credits; general and administrative expenses; sustaining business development and exploration costs; sustaining capital (including related capitalized interest); and a portion of other operating costs. Management uses this measure internally and believes that it provides investors with the ability to better evaluate the cost of sustaining gold production.


 
----------------------------------------------------------------------------
                                                        Attributable All-in 
                                                       Sustaining Cost from 
                                                      Continuing Operations 
                                                    Per Ounce Sold on a By- 
                                                              Product Basis 
                                                    ------------------------
                                                         Three months ended 
                                                                  March 31, 
                                                    ------------------------
(in millions, except ounces and production cost of                          
 sales per ounce)                                          2013        2012 
                                                    ------------------------
Production cost of sales from continuing operations                         
 - as reported(1)                                    $    475.7  $    451.7 
Less: portion attributable to Chirano non-                                  
 controlling interest                                      (5.1)       (5.4)
Less: attributable silver sales from continuing                             
 operations                                               (61.9)      (83.7)
                                                    ------------------------
Attributable production cost of sales from                                  
 continuing operations net of silver by-product                             
 revenue                                             $    408.7  $    362.6 
                                                    ------------------------
                                                    ------------------------
Adjusting items on an attributable basis:                                   
  General and administrative                               39.5        39.7 
  Exploration and business development - sustaining        30.2        55.4 
  Other operating expense - sustaining                     15.3         7.9 
  Additions to property, plant and equipment -                              
   sustaining                                             133.5       181.3 
  Capitalized interest and exploration                      2.8         6.3 
                                                    ------------------------
All-in Sustaining Cost - attributable                $    630.0  $    653.2 
                                                    ------------------------
                                                    ------------------------
Gold ounces sold from continuing operations             613,683     561,152 
Less: portion attributable to Chirano non-                                  
 controlling interest                                    (6,916)     (7,800)
                                                    ------------------------
Attributable gold ounces sold from continuing                               
 operations                                             606,767     553,352 
                                                    ------------------------
                                                    ------------------------
Attributable all-in sustaining cost from continuing                         
 operations per ounce sold on a by-product basis     $    1,038  $    1,180 
                                                                            
----------------------------------------------------------------------------
                                                                            
(1)  "Production cost of sales" is equivalent to "Total cost of sales" per  
     the interim financial statements less depreciation, depletion and      
     amortization and impairment charges.                                   

Review of Operations


 
----------------------------------------------------------------------------
Three months ended March 31,                  Gold equivalent ounces        
                                      --------------------------------------
                                                Produced               Sold 
                                      --------------------------------------
                                           2013     2012      2013     2012 
                                      --------------------------------------
                                                                            
Fort Knox                                93,252   61,716   118,034   60,365 
Round Mountain                           39,421   44,758    38,796   43,551 
Kettle River - Buckhorn                  39,870   42,618    39,673   39,321 
                                      --------------------------------------
North America Total                     172,543  149,092   196,503  143,237 
                                                                            
Kupol (100%)                            124,498  126,970    83,799  126,735 
                                      --------------------------------------
Russia Total                            124,498  126,970    83,799  126,735 
                                                                            
Paracatu                                119,891  104,618   122,028  110,527 
La Coipa                                 53,729   37,740    57,242   43,712 
Maricunga                                55,062   63,989    54,791   69,063 
                                      --------------------------------------
South America Total                     228,682  206,347   234,061  223,302 
                                                                            
Tasiast                                  62,757   37,634    68,381   40,827 
Chirano (100%)                           67,130   75,906    69,453   78,251 
                                      --------------------------------------
West Africa Total                       129,887  113,540   137,834  119,078 
                                      --------------------------------------
              
                                                              
Continuing operations                   655,610  595,949   652,197  612,352 
Discontinued operations(2)                    -   15,889         -   17,153 
                                                                            
                                      --------------------------------------
Operations Total                        655,610  611,838   652,197  629,505 
Less Chirano non-controlling interest                                       
 (10%)                                   (6,713)  (7,591)   (6,945)  (7,825)
                                      --------------------------------------
Attributable - Continuing operations    648,897  588,358   645,252  604,527 
                                      --------------------------------------
Attributable Total                      648,897  604,247   645,252  621,680 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
 
----------------------------------------------------------------------------
Three months ended March 31,                                                
                                                                            
                                               Production                   
                                                  cost of         Production
                                                 sales(1)            cost of
                                              ($millions)        sales(1)/oz
                                      --------------------------------------
                                           2013      2012      2013     2012
                                      --------------------------------------
                                                                            
Fort Knox                              $   65.9  $   52.0  $    558 $    861
Round Mountain                             31.2      37.3       804      856
Kettle River - Buckhorn                    20.3      18.9       512      481
                                      --------------------------------------
North America Total                       117.4     108.2       597      755
                                                                            
Kupol (100%)                               45.9      61.2       548      483
                                      --------------------------------------
Russia Total                               45.9      61.2       548      483
                                                                            
Paracatu                                  101.4     105.4       831      954
La Coipa                                   40.3      43.6       704      997
Maricunga                                  59.8      43.7     1,091      633
                                      --------------------------------------
South America Total                       201.5     192.7       861      863
                                                                            
Tasiast                                    60.2      35.9       880      879
Chirano (100%)                             50.7      53.7       730      686
                                      --------------------------------------
West Africa Total                         110.9      89.6       805      752
                                      --------------------------------------
                                                                            
Continuing operations                     475.7     451.7       729      738
Discontinued operations(2)                    -      13.8         -      805
                                                                            
                                      --------------------------------------
Operations Total                       $  475.7  $  465.5  $    729 $    739
Less Chirano non-controlling interest                                       
 (10%)                                     (5.1)     (5.4)                  
                                      --------------------------------------
Attributable - Continuing operations   $  470.6  $  446.3  $    729 $    738
                                      --------------------------------------
Attributable Total                     $  470.6  $  460.1  $    729 $    740
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
(1)  "Production cost of sales" is equivalent to "Total cost of sales" per  
     the interim financial statements less depreciation, depletion and      
     amortization and impairment charges.                                   
(2)  On June 28, 2012, the Company completed the sale of its 50% interest in
     the Crixas gold mine.                                                  
----------------------------------------------------------------------------

Consolidated balance sheets


 
(unaudited, expressed in millions of United States dollars, except share    
 amounts)                                                                   
----------------------------------------------------------------------------
                                                                            
                                                 As at                      
                            ------------------------------------------------
                                  March 31,    December 31,      January 1, 
                                       2013            2012            2012 
                            ------------------------------------------------
                                                                            
Assets                                                                      
  Current assets                                                            
    Cash and cash                                                           
     equivalents             $      1,420.8  $      1,632.7  $      1,724.8 
    Restricted cash                    58.1            58.1            56.1 
    Short-term investments                -           349.8             1.3 
    Accounts receivable and                                                 
     other assets                     233.4           280.9           304.7 
    Inventories                     1,278.1         1,254.9           961.7 
    Unrealized fair value of                                                
     derivative assets                 15.0            15.0             2.8 
                            ------------------------------------------------
                                    3,005.4         3,591.4         3,051.4 
                            ------------------------------------------------
  Non-current assets                                                        
    Property, plant and                                                     
     equipment                      9,082.0         8,968.1         8,855.0 
    Goodwill                        1,136.7         1,136.7         3,382.3 
    Long-term investments              40.8            49.1            79.3 
    Investments in associate                                                
     and joint ventures               537.1           536.1           654.9 
    Unrealized fair value of                                                
     derivative assets                  8.3             9.6             1.1 
    Deferred charges and                                                    
     other long-term assets           579.5           545.5           403.1 
    Deferred tax assets                53.3            46.1            21.8 
                            -------------------
-----------------------------
Total assets                 $     14,443.1  $     14,882.6  $     16,448.9 
                            ------------------------------------------------
                                                                            
Liabilities                                                                 
  Current liabilities                                                       
    Accounts payable and                                                    
     accrued liabilities     $        607.1  $        636.2  $        562.0 
    Current tax payable                76.5            93.2            67.6 
    Current portion of long-                                                
     term debt                         66.3           516.2            31.9 
    Current portion of                                                      
     provisions                        40.3            42.0            37.6 
    Current portion of                                                      
     unrealized fair value                                                  
     of derivative                                                          
     liabilities                       11.4            22.0            66.7 
                            ------------------------------------------------
                                      801.6         1,309.6           765.8 
                            ------------------------------------------------
  Non-current liabilities                                                   
    Long-term debt                  2,087.7         2,116.4         1,599.4 
    Provisions                        727.6           720.4           584.0 
    Unrealized fair value of                                                
     derivative liabilities             5.3            10.5            32.7 
    Other long-term                                                         
     liabilities                      142.1           125.6           132.4 
    Deferred tax liabilities          666.8           674.4           863.9 
                                                            ----------------
Total liabilities                   4,431.1         4,956.9         3,978.2 
                            ------------------------------------------------
                                                                            
Equity                                                                      
  Common shareholders'                                                      
   equity                                                                   
    Common share capital and                                                
     common share purchase                                                  
     warrants                $     14,712.9  $     14,692.5  $     14,656.6 
    Contributed surplus                79.8            89.9            81.4 
    Accumulated deficit            (4,867.9)       (4,937.1)       (2,249.9)
    Accumulated other                                                       
     comprehensive income                                                   
     (loss)                            10.1             4.9           (97.7)
                            ------------------------------------------------
Total common shareholders'                                                  
 equity                             9,934.9         9,850.2        12,390.4 
                            ------------------------------------------------
  Non-controlling interest             77.1            75.5            80.3 
                            ------------------------------------------------
Total equity                       10,012.0         9,925.7        12,470.7 
                            ------------------------------------------------
Commitments and                                                             
 contingencies                                                              
Subsequent events                                                           
                            ------------------------------------------------
Total liabilities and equity $     14,443.1  $     14,882.6  $     16,448.9 
                            ------------------------------------------------
                                                                            
Common shares                                                               
  Authorized                      Unlimited       Unlimited       Unlimited 
  Issued and outstanding      1,141,664,089   1,140,132,123   1,137,732,344 
                                                                            
----------------------------------------------------------------------------

Consolidated statements of operations


 
(unaudited, expressed in millions of United States dollars, except per      
 share and share amounts)                                                   
                                                                            
----------------------------------------------------------------------------
                                                       Three months ended   
                                                                            
                                                      March 31,   March 31, 
                                                           2013        2012 
                                                    ------------------------
                                                                            
Revenue                                                                     
  Metal sales                                        $  1,058.1  $  1,005.1 
                                                                            
Cost of sales                                                               
  Production cost of sales                                475.7       451.7 
  Depreciation, depletion and amortization                227.7       142.5 
                                                    ------------------------
Total cost of sales                                       703.4       594.2 
                                                    ------------------------
Gross profit                                              354.7       410.9 
                                                    ------------------------
  Other operating expense                                  24.5        11.5 
  Exploration and business development                     39.8        58.5 
  General and administrative                               39.5        39.7 
                                                    ------------------------
Operating earnings                                        250.9       301.2 
                                                    ------------------------
  Other income (expense) - net                             (8.5)       12.5 
  Equity in losses of associate and joint venture          (0.9)          - 
  Finance income                                            2.0         1.0 
  Finance expense                                          (8.6)       (9.8)
                                                    ------------------------
Earnings before taxes                                     234.9       304.9 
  Income tax expense - net                                (72.8)     (214.1)
                                                    ------------------------
Earnings from continuing operations after tax             162.1        90.8 
Earnings from discontinued operations after tax               -         6.1 
                                                    ------------------------
                                                    ------------------------
Net earnings                                         $    162.1  $     96.9 
                                                    ------------------------
                                                    --------------------
----
                                                                            
Net earnings (loss) from continuing operations                              
 attributable to:                                                           
  Non-controlling interest                           $      1.6  $     (8.8)
                                                    ------------------------
                                                    ------------------------
  Common shareholders                                $    160.5  $     99.6 
                                                    ------------------------
                                                    ------------------------
Net earnings (loss) attributable to:                                        
                                                    ------------------------
                                                    ------------------------
  Non-controlling interest                           $      1.6  $     (8.8)
                                                    ------------------------
                                                    ------------------------
  Common shareholders                                $    160.5  $    105.7 
                                                    ------------------------
                                                    ------------------------
                                                                            
Earnings per share from continuing operations                               
 attributable to common shareholders                                        
                                                                            
  Basic                                              $     0.14  $     0.09 
  Diluted                                            $     0.14  $     0.09 
Earnings per share attributable to common                                   
 shareholders                                                               
                                                                            
  Basic                                              $     0.14  $     0.09 
  Diluted                                            $     0.14  $     0.09 
                                                                            
Weighted average number of common shares outstanding                        
 (millions)                                                                 
  Basic                                                 1,140.6     1,138.1 
  Diluted                                               1,147.2     1,143.6 
----------------------------------------------------------------------------

Consolidated statements of cash flows


 
(unaudited, expressed in millions of United States dollars)                 
----------------------------------------------------------------------------
                                                       Three months ended   
                                                      March 31,   March 31, 
                                                           2013        2012 
                                                    ------------------------
Net inflow (outflow) of cash related to the                                 
 following activities:                                                      
                                                                            
Operating:                                                                  
Net earnings from continuing operations              $    162.1  $     90.8 
Adjustments to reconcile net earnings from                                  
 continuing operations to net cash provided from                            
 (used in) operating activities:                                            
  Depreciation, depletion and amortization                227.7       142.5 
  Gains on sale of other assets - net                      (0.8)          - 
  Equity in losses of associate and joint venture           0.9           - 
  Non-hedge derivative gains - net                            -       (10.1)
  Settlement of derivative instruments                      0.2        28.4 
  Share-based compensation expense                          8.7         9.5 
  Accretion expense                                         5.4         5.4 
  Deferred tax (recovery) expense                         (20.8)       97.4 
  Foreign exchange (gains) losses and other                28.4       (16.2)
  Changes in operating assets and liabilities:                              
    Accounts receivable and other assets                   28.7       (28.5)
    Inventories                                           (34.9)        1.2 
    Accounts payable and accrued liabilities               28.1       118.1 
                                                    ------------------------
Cash flow provided from operating activities              433.7       438.5 
                                                    ------------------------
  Income taxes paid                                       (75.6)      (58.5)
                                                    ------------------------
Net cash flow of continuing operations provided from                        
 operating activities                                     358.1       380.0 
                                                    ------------------------
                                                                            
Investing:                                                                  
  Additions to property, plant and equipment             (317.8)     (529.3)
  Net proceeds from the sale of long-term                                   
   investments and other assets                               -         0.2 
  Additions to long-term investments and other                              
   assets                                                 (24.5)      (12.7)
  Net proceeds from the sale of property, plant and                         
   equipment                                                1.3           - 
  Disposals of short-term investments                     349.8         1.1 
  Decrease in restricted cash                                 -         0.9 
  Interest received                                         2.1         0.9 
  Other                                                       -        (0.3)
                                                    ------------------------
Net cash flow of continuing operations provided from                        
 (used in) investing activities                            10.9      (539.2)
                                                    ------------------------
                                                                            
Financing:                                                                  
  Issuance of common shares on exercise of options                          
   and warrants                                             1.6         1.9 
  Proceeds from issuance of debt                              -       127.4 
  Repayment of debt                                      (487.0)     (151.8)
  Interest paid                                            (1.5)       (3.2)
  Dividends paid to common shareholders                   (91.3)      (91.1)
  Other                                                       -        (0.7)
                                                    ------------------------
Net cash flow of continuing operations used in                              
 financing activities                                    (578.2)     (117.5)
                                                    ------------------------
Effect of exchange rate changes on cash and cash                            
 equivalents of continuing operations                      (2.7)        2.6 
                                                    ------------------------
Decrease in cash and cash equivalents                    (211.9)     (274.1)
Cash and cash equiv
alents, beginning of period          1,632.7     1,724.8 
                                                    ------------------------
Cash and cash equivalents, end of period             $  1,420.8  $  1,450.7 
                                                    ------------------------
                                                    ------------------------
                                                                            
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Operating Summary                                                           
----------------------------------------------------------------------------
                                                               Ore          
                                      Tonnes        Ore  Processed          
                                         Ore  Processed      (Heap          
                                       Mined   (Milled)     Leach)     Grade
        Mine      Period Ownership       (1)        (1)        (1)    (Mill)
----------------------------------------------------------------------------
                               (%)     ('000      ('000      ('000          
                                     tonnes)    tonnes)    tonnes)     (g/t)
----------------------------------------------------------------------------
North   Fort Knox                                                           
 America          Q1 2013      100     7,361      2,894        536      0.88
                  ----------------------------------------------------------
                  Q4 2012      100     7,805      3,273      6,530      1.03
                  Q3 2012      100     7,998      3,238     12,873      0.76
                  Q2 2012      100     5,115      3,452      9,632      0.51
                  Q1 2012      100     5,019      3,241        915      0.46
        --------------------------------------------------------------------
        Round                                                               
         Mountain Q1 2013       50     6,474        936      6,468      0.64
                  ----------------------------------------------------------
                  Q4 2012       50     3,820        867      3,864      0.68
                  Q3 2012       50     5,376      1,026      5,118      0.72
                  Q2 2012       50     5,186        922      3,752      0.82
                  Q1 2012       50     6,240        810      4,310      0.91
        --------------------------------------------------------------------
        Kettle                                                              
         River    Q1 2013      100        91        121          -     13.21
                  ----------------------------------------------------------
                  Q4 2012      100       101         87          -     13.96
                  Q3 2012      100        81         95          -     15.23
                  Q2 2012      100        93        111          -     11.52
                  Q1 2012      100       111        112          -     12.81
----------------------------------------------------------------------------
Russia  Kupol                                                               
         (4)(5)   Q1 2013      100       338        328          -     10.57
                  ----------------------------------------------------------
                  Q4 2012      100       337        329          -     11.89
                  Q3 2012      100       302        332          -     12.34
                  Q2 2012      100       320        329          -     12.23
                  Q1 2012      100       301        309          -     11.76
        --------------------------------------------------------------------
South   Paracatu                                                            
 America          Q1 2013      100    13,971     14,068          -      0.37
                  ----------------------------------------------------------
                  Q4 2012      100    15,791     13,692          -      0.39
                  Q3 2012      100    13,336     13,386          -      0.38
                  Q2 2012      100    12,544     12,988          -      0.38
                  Q1 2012      100    13,329     12,910          -      0.35
        --------------------------------------------------------------------
        La Coipa                                                            
         (3)      Q1 2013      100       990      1,400          -      0.97
                  ----------------------------------------------------------
                  Q4 2012      100     1,298      1,421          -      1.07
                  Q3 2012      100       896      1,297          -      0.65
                  Q2 2012      100       585      1,256          -      0.72
                  Q1 2012      100       210      1,467          -      0.56
                  ----------------------------------------------------------
        Maricunga Q1 2013      100     4,452          -      3,861         -
                  ----------------------------------------------------------
                  Q4 2012      100     5,704          -      3,937         -
                  Q3 2012      100     5,326          -      3,755         -
                  Q2 2012      100     3,808          -      3,487         -
                  Q1 2012      100     3,574          -      4,014         -
        --------------------------------------------------------------------
West    Tasiast                                                             
 Africa           Q1 2013      100     6,164        639      4,154      1.87
                  ----------------------------------------------------------
                  Q4 2012      100     9,522        659      3,681      1.31
                  Q3 2012      100     6,637        643      1,887      1.55
                  Q2 2012      100     5,636        656      4,477      1.74
                  Q1 2012      100     1,783        595      1,002      1.71
        --------------------------------------------------------------------
        Chirano -                                                           
         100%     Q1 2013       90     1,005        816          -      2.73
                  ----------------------------------------------------------
                  Q4 2012       90     1,311        879          -      3.27
                  Q3 2012       90     1,252        846          -      2.67
                  Q2 2012       90     1,016        802          -      2.70
                  Q1 2012       90     1,149        854          -      2.97
        --------------------------------------------------------------------
        Chirano                                                             
         (6)      Q1 2013       90     1,005        816          -      2.73
                  ----------------------------------------------------------
                  Q4 2012       90     1,311        879          -      3.27
                  Q3 2012       90     1,252        846          -      2.67
                  Q2 2012       90     1,016        802          -      2.70
                  Q1 2012       90     1,149        854          -      2.97
----------------------------------------------------------------------------
 
----------------------------------------------------------------------------
Operating Summary                                                           
----------------------------------------------------------------------------
                                       Grade               Gold Eq          
                                       (Heap  Recovery  Production   Gold Eq
        Mine      Period Ownership    Leach)       (2)         (7)  Sales(7)
-------------------
---------------------------------------------------------
                               (%)     (g/t)       (%)    (ounces)  (ounces)
----------------------------------------------------------------------------
North   Fort Knox                                                           
 America          Q1 2013      100      0.25        84%     93,252   118,034
                  ----------------------------------------------------------
                  Q4 2012      100      0.30        84%    119,582   100,923
                  Q3 2012      100      0.30        84%    106,698   100,172
                  Q2 2012      100      0.33        85%     71,952    71,978
                  Q1 2012      100      0.36        84%     61,716    60,365
        --------------------------------------------------------------------
        Round                                                               
         Mountain Q1 2013       50      0.38        75%     39,421    38,796
                  ----------------------------------------------------------
                  Q4 2012       50      0.40        70%     41,220    41,371
                  Q3 2012       50      0.44        71%     53,205    53,237
                  Q2 2012       50      0.43        74%     53,147    52,433
                  Q1 2012       50      0.46        78%     44,758    43,551
        --------------------------------------------------------------------
        Kettle                                                              
         River    Q1 2013      100         -        92%     39,870    39,673
                  ----------------------------------------------------------
                  Q4 2012      100         -        93%     33,548    33,242
                  Q3 2012      100         -        94%     43,942    44,049
                  Q2 2012      100         -        92%     35,985    40,354
                  Q1 2012      100         -        90%     42,618    39,321
----------------------------------------------------------------------------
Russia  Kupol                                                               
         (4)(5)   Q1 2013      100         -        93%    124,498    83,799
                  ----------------------------------------------------------
                  Q4 2012      100         -        93%    146,535   130,759
                  Q3 2012      100         -        94%    155,533   164,025
                  Q2 2012      100         -        93%    149,214   156,716
                  Q1 2012      100         -        93%    126,970   126,735
        --------------------------------------------------------------------
South   Paracatu                                                            
 America          Q1 2013      100         -        75%    119,891   122,028
                  ----------------------------------------------------------
                  Q4 2012      100         -        75%    132,114   137,534
                  Q3 2012      100         -        70%    111,558   104,937
                  Q2 2012      100         -        74%    118,419   118,389
                  Q1 2012      100         -        72%    104,618   110,527
        --------------------------------------------------------------------
        La Coipa                                                            
         (3)      Q1 2013      100         -        84%     53,729    57,242
                  ----------------------------------------------------------
                  Q4 2012      100         -        86%     63,429    58,935
                  Q3 2012      100         -        79%     41,585    42,240
                  Q2 2012      100         -        77%     36,113    30,325
                  Q1 2012      100         -        78%     37,740    43,712
                  ----------------------------------------------------------
        Maricunga Q1 2013      100      0.57        nm      55,062    54,791
                  ----------------------------------------------------------
                  Q4 2012      100      0.59        nm      64,568    61,046
                  Q3 2012      100      0.64        nm      46,971    45,818
                  Q2 2012      100      0.65        nm      60,841    61,367
                  Q1 2012      100      0.66        nm      63,989    69,063
        --------------------------------------------------------------------
West    Tasiast                                                             
 Africa           Q1 2013      100      0.35        91%     62,757    68,381
                  ----------------------------------------------------------
                  Q4 2012      100      0.59        91%     46,051    44,400
                  Q3 2012      100      0.51        92%     51,842    48,045
                  Q2 2012      100      0.47        86%     49,807    46,296
                  Q1 2012      100      0.60        89%     37,634    40,827
        --------------------------------------------------------------------
        Chirano -                                                           
         100%     Q1 2013       90         -        93%     67,130    69,453
                  ----------------------------------------------------------
                  Q4 2012       90         -        94%     86,070    87,724
                  Q3 2012       90         -        93%     67,599    69,698
                  Q2 2012       90         -        92%     63,660    62,978
                  Q1 2012       90         -        93%     75,906    78,251
        --------------------------------------------------------------------
        Chirano                                                             
         (6)      Q1 2013       90         -        93%     60,417    62,508
                  ----------------------------------------------------------
                  Q4 2012       90         -        94%     77,463    78,952
                  Q3 2012       90         -        93%     60,839    62,728
                  Q2 2012       90         -        92%     57,294    56,680
                  Q1 2012       90         -        93%     68,315    70,426
----------------------------------------------------------------------------
 
----------------------------------------------------------------------------
Operating Summary                                                           
----------------------------------------------------------------------------
                                              Production                    
                                   Production    cost of                    
                                     costs of   sales(8)                    
        Mine      Period Ownership   sales(8)        /oz    Cap Ex      DD&A
----------------------------------------------------------------------------
                               (%)         ($        ($/        ($        ($
                                    millions)     ounce) millions) millions)
----------------------------------------------------------------------------
North   Fort Knox                                                           
 America          Q1 2013      100 $     65.9 $      558 $    49.4 $    27.2
                  ----------------------------------------------------------
                  Q4 2012      100       49.8        493      37.8      20.7
                  Q3 2012      100       64.9        648      13.7      25.7
                  Q2 2012      100       54.5        757      38.4      11.3
                  Q1 2012      100       52.0        861      24.8       9.1
        --------------------------------------------------------------------
        Round                                                               
         Mountain Q1 2013       50       31.2        804      10.0       4.9
                  ----------------------------------------------------------
                  Q4 2012       50       32.6        788      18.8       5.4
                  Q3 2012       50       32.2        605      14.4       6.6
                  Q2 2012       50       34.7        662      19.3       8.4
                  Q1 2012       50       37.3        856      13.6       7.8
        --------------------------------------------------------------------
        Kettle                                                              
         River    Q1 2013      100       20.3        512       1.2      16.4
                  ----------------------------------------------------------
                  Q4 2012      100       15.4        463       4.7      15.1
                  Q3 2012      100       20.7        470       1.0      21.7
                  Q2 2012      100       20.5        508       3.2      18.2
                  Q1 2012      100       18.9        481       0.5      18.9
----------------------------------------------------------------------------
Russia  Kupol                                                               
         (4)(5)   Q1 2013      100       45.9        548      29.0      14.9
                  ----------------------------------------------------------
                  Q4 2012      100       62.0        474      21.5      24.6
                  Q3 2012      100       76.5        466      59.0      30.1
                  Q2 2012      100       73.2        467      43.5      29.4
                  Q1 2012      100       61.2        483      39.9      23.6
        --------------------------------------------------------------------
South   Paracatu                                                            
 America          Q1 2013      100      101.4        831      14.4      26.1
                  ----------------------------------------------------------
                  Q4 2012      100      109.8        798      61.7      31.5
                  Q3 2012      100       92.0        877      81.0      20.0
                  Q2 2012      100      108.2        914      67.2      19.2
                  Q1 2012      100      105.4        954      74.6      14.6
        --------------------------------------------------------------------
        La Coipa                                                            
         (3)      Q1 2013      100       40.3        704       1.5      36.8
                  ----------------------------------------------------------
                  Q4 2012      100       43.2        733       8.4      26.8
                  Q3 2012      100       45.9      1,087      25.9      12.2
                  Q2 2012      100       34.9      1,151      21.9       6.2
                  Q1 2012      100       43.6        997      14.4       4.3
                  ----------------------------------------------------------
        Maricunga Q1 2013      100       59.8      1,091      16.3      32.3
                  ----------------------------------------------------------
                  Q4 2012      100       56.6        927       0.5       5.4
                  Q3 2012      100       40.0        873      33.9       4.9
                  Q2 2012      100       44.5        725      50.7       5.5
                  Q1 2012      100       43.7        633      35.6       6.3
        --------------------------------------------------------------------
West    Tasiast                                                             
 Africa           Q1 2013      100       60.2        880     155.6      33.3
                  ----------------------------------------------------------
                  Q4 2012      100       47.1      1,061     291.6      23.1
                  Q3 2012      100       32.2        670     190.4      18.6
                  Q2 2012      100       44.5        961     124.3      19.9
                  Q1 2012      100       35.9        879     260.0      13.8
        --------------------------------------------------------------------
        Chirano -                                                           
         100%     Q1 2013       90       50.7        730      28.1      33.8
                  ----------------------------------------------------------
                  Q4 2012       90       61.2        698      41.3      45.1
                  Q3 2012       90       51.3        736      15.9      39.5
                  Q2 2012       90       49.1        780      20.6      36.9
                  Q1 2012       90       53.7        686      22.5      41.8
        --------------------------------------------------------------------
        Chirano                                                             
         (6)      Q1 2013       90       45.6        730      25.3      30.4
                  ----------------------------------------------------------
                  Q4 2012       90       55.1        698      37.2      40.6
                  Q3 2012       90       46.2        736      14.3      35.6
                  Q2 2012       90       44.2        780      18.5      33.2
                  Q1 2012       90       48.3        686      20.3      37.6
----------------------------------------------------------------------------
                                                                            
(1)  Ore processed is to 100%, production and costs are to Kinross' account.
(2)  Due to the nature of heap leach operations, recovery rates at Maricunga
     cannot be accurately measured on a quarterly basis.  Recovery rates at 
     Fort Knox, Round Mountain and Tasiast represent mill recovery only.    
(3)  La Coipa silver grade and recovery were as follows: Q1 (2013) 35.61    
     g/t, 58%; Q4 (2012) 49.45 g/t, 50%; Q3 (2012) 55.58 g/t, 45%; Q2 (2012)
     42.04 g/t, 46%                                                         
(4)  The Kupol segment includes the Kupol and Dvoinoye mines.               
(5)  Kupol silver grade and recovery were as follows:  Q1 (2013) 128.44 g/t,
     85%; Q4 (2012) 155.53 g/t, 85%; Q3 (2012) 163.68 g/t, 85%; Q2 (2012)   
     187.49 g/t, 87%                                                        
(6)  Includes Kinross' share of Chirano at 90%.                             
(7)  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 2013: 54.19:1, Q4 2012: 52.55:1,
     Q3 2012: 55.44:1, Q2 2012: 54.77:1.                                    
(8)  "Production cost of sales" is equivalent to "Total cost of sales" per  
     the interim financial statements less depreciation, depletion and      
     amortization and impairment charges.                                   

For more information, please see Kinross' 2013 first-quarter Financial Statements and MD&A at www.kinross.com.


 
(1)  Unless otherwise stated, production figures in this news release are   
     based on Kinross' 90% share of Chirano production. Prior year          
     production figures have been adju
sted to exclude Crixas due to its sale
     in Q2 2012.                                                            
(2)  These figures are non-GAAP financial measures and are defined and      
     reconciled on pages eight to 10 of this news release.                  
(3)  Attributable margin per ounce sold is a non-GAAP measure defined as    
     "average realized gold price per ounce" less "attributable production  
     cost of sales per gold equivalent ounce sold".                         
(4)  "Net earnings (loss) figures in this release represent "net earnings   
     (loss) from continuing operations attributable to common shareholders".
(5)  See Kinross' Annual Information Form for the year ended December 31,   
     2012, page 62, "Risk Factors".                                         
(6)  Refers to all of the currencies in the countries where the Company has 
     mining operations, fluctuating simultaneously by 10% in the same       
     direction, either appreciating, or depreciating, taking into           
     consideration the impact of hedging and the weighting of each currency 
     within our consolidated cost structure.                                

Contacts: Media Contact: Kinross Gold Corporation Steve Mitchell Vice-President, Corporate Communications 416-365-2726 steve.mitchell@kinross.com

Investor Relations Contact: Kinross Gold Corporation Tom Elliott Vice-President, Investor Relations 416-365-3390 tom.elliott@kinross.com www.kinross.com

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