Kinross reports 2019 third-quarter results
On track to meet production guidance and lower end of cost of sales guidance
Construction and commissioning of Nevada projects completed
Largest producing mines – Paracatu, Kupol and Tasiast – continue to achieve lowest costs in portfolio
Toronto, Ontario – November 6, 2019 – Kinross Gold Corporation (TSX: K, NYSE: KGC) today announced its results for the third-quarter ended September 30, 2019.
(This news release contains forward-looking information about expected future events and financial and operating performance of the Company. We refer to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located on page 19 of this release. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.)
2019 third-quarter highlights:
Q3 2019 results First nine months 2019 results 2019 guidance
Gold equivalent production1
(ounces) 608,033 1,862,315 2.5 million (+/- 5%)
Production cost of sales2 ($ per Au eq. oz.) $735 $692 $730 (+/- 5%)
All-in sustaining cost2 ($ per Au eq. oz.) $1,028 $958 $995 (+/- 5%)
Capital expenditures $265.5 million $807.0 million $1,050 million (+/- 5%)

Kinross remains on track to meet 2019 annual guidance for production, cost of sales per ounce, all-in sustaining cost per ounce and capital expenditures. The Company is tracking towards the lower end of its 2019 production cost of sales guidance and the higher end of its capital expenditure guidance.
? Operating cash flow of $231.7 million, an 82% increase over Q3 2018, with adjusted operating cash flow2 more than doubling to $295.4 million compared with Q3 2018.
? Reported net earnings3 of $60.9 million, or $0.05 per share, and adjusted net earnings2,3 of $104.0 million, or $0.08 per share.
? Cash and cash equivalents of $358.0 million and total liquidity of approximately $1.8 billion at September 30, 2019, with no debt maturities until 2021.
Operations and organic development projects highlights:
? Kinross’ three largest producing mines – Paracatu, Kupol and Tasiast – which accounted for 62% of total company production, achieved the lowest costs in the portfolio for Q3 and the first nine months of 2019.
? The Company approved the value-enhancing Tasiast 24k project and announced the acquisition of the high-quality Chulbatkan development project during the quarter.
o Tasiast 24k project work has commenced, with detailed engineering now 65% complete.
o The Chulbatkan acquisition is progressing as anticipated and is on track to close early next year.
? Construction and commissioning of the Round Mountain Phase W and Bald Mountain Vantage Complex projects have been completed. Both projects have been handed over to their respective Operations teams.
? The Fort Knox Gilmore project is proceeding on schedule and on budget, with initial stripping commencing during the quarter.

Unless otherwise stated, production figures in this news release are based on Kinross’ 90% share of Chirano production.
2 These figures are non-GAAP financial measures and are defined and reconciled on pages 13 to 18 of this news release.
3 Net earnings (loss) figures in this release represent “net earnings (loss) from continuing operations attributable to common shareholders”.


CEO Commentary
J. Paul Rollinson, President and CEO, made the following comments in relation to 2019 third-quarter results:
“Our portfolio of mines continued to perform well during the third quarter, delivering higher production, lower costs and more than doubling adjusted operating cash flow compared with the same period last year. Paracatu, Kupol and Tasiast, our largest producing mines, once again achieved our lowest costs. We remain on track to meet our annual production guidance, and given strong results year-to-date, are tracking towards the low end of our cost of sales guidance.
“During the quarter, we announced we were proceeding with the Tasiast 24k project and the acquisition of the Chulbatkan project, two exciting opportunities that are expected to add significant value to our Company. Tasiast 24k is expected to generate strong free cash flow, attractive returns and further unlock the mine’s substantial value, while Chulbatkan adds a high-quality asset with upside potential to our project pipeline.
“In our Americas region, we are making excellent progress in advancing our projects. We completed the construction and commissioning of both our Nevada projects, started stripping at the Fort Knox Gilmore project and are targeting completion of the La Coipa feasibility study in February.”

Financial results
see & read more on
https://s2.q4cdn.com/496390694/files/doc_financials/quarterly_reports/2019/q3/KGC-Q3-2019-results-news-release-Final.pdf
Summary of financial and operating results