- Returned more than $250 million to shareholders in 2021
Production outlook of 2.65 million, 2.8 million and 2.6 million ounces in 2022, 2023 and 2024, respectively, to drive free cash flow growth

TORONTO, Feb. 16, 2022 (GLOBE NEWSWIRE) -- Kinross Gold Corporation (TSX: K, NYSE: KGC) (“Kinross” or the “Company”) today announced its results for the fourth-quarter and year ended December 31, 2021.

(This news release contains forward-looking information about expected future events and financial and operating performance of the Company. We refer to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located on page 24 of this release. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.)

2021 full-year results and 2022 guidance:

2021 guidance
(+/- 5%) 2021 full-year results 2022 guidance
(+/- 5%)
Attributable gold equivalent production 1
(ounces) 2.1 million 2.07 million 2.65 million
Attributable production cost of sales 1, 2
($ per Au eq. oz.) $830 $828 $830
Consolidated production cost of sales 3
($ per Au eq. oz.) - $832 $835
Attributable all-in sustaining cost 1, 2
($ per Au eq. oz.) $1,110 $1,138 $1,130
Capital expenditures $900 million $939 million $1,050 million
Attributable production1 is expected to increase 28% year-over-year to 2.65 million Au eq. oz. in 2022, and to further increase to 2.8 million Au eq. oz. in 2023 driving significant free cash flow2 growth.
Kinross expects to produce 2.6 million attributable Au eq. oz. in 2024 and an average of at least 2.5 million attributable Au eq. oz. per year over the remainder of the decade.
2021 Q4 highlights:

Tasiast achieved Q4 2021 production target as throughput successfully ramped up to complete mill re-start.
La Coipa project began commissioning on time and on budget in February 2022. Life of mine production estimates increased by 45% to 1 million Au eq. oz. extending mine life to early 2026.
Kinross increased proven and probable mineral reserve estimates to 32.6 million Au oz.4, adding 2.7 million Au oz. in 2021, mainly due to additions at Udinsk and Round Mountain.
In 2021, Kinross returned more than $250 million in capital to shareholders consisting of $151.1 million in dividends and, as part of its share buyback program, $100.2 million in the repurchase and cancellation of 17.6 million common shares.
Kinross’ Board of Directors declared a quarterly dividend of $0.03 per common share payable on March 24, 2022 to shareholders of record at the close of business on March 9, 2022.
On December 8, 2021, Kinross announced an agreement to acquire Great Bear Resources and its flagship Dixie project in Red Lake, Ontario, which has significant potential to become a top-tier, large scale operation.
2021 Q4 and year-end financial results:

Attributable production 1 of 487,621 Au eq. oz. produced in Q4 2021, and 2,067,549 Au eq. oz. in 2021.
Attributable production cost of sales 1,2 of $864 per Au eq. oz. in Q4 2021, and $828 per Au eq. oz. in 2021.
Consolidated production cost of sales 3 of $868 per Au eq. oz. in Q4 2021 and $832 per Au eq. oz. in 2021.
Attributable all-in sustaining cost 1, 2 of $1,312 per Au eq. oz. sold in Q4 2021, and $1,138 per Au eq. oz. sold in 2021.
Margins 5 of $929 per Au eq. oz. sold in Q4 2021, and $965 for 2021.
Adjusted operating cash flow 2 was $356.0 million in Q4 2021, and $1,309.9 million in 2021.
Operating cash flow 6 of $197.3 million in Q4 2021, and $1,135.2 million in 2021.
Free cash flow 2 was a net outflow of $100.7 million in Q4 2021, and a net inflow of $196.6 million in 2021.
Reported net loss 7 of $2.7 million in Q4 2021, and reported net earnings of $221.2 million, or $0.18 per share, in 2021.
Adjusted net earnings 2 , 8 of $101.8 million, or $0.08 per share in Q4 2021, and $541.3 million, or $0.43 per share, in 2021.
Cash and cash equivalents of $531.5 million, and totalliquidity9 of $1.9 billion at December 31, 2021. The Company repaid $500 million in Senior Notes on June 1, 2021.
Environment, Social, Governance (ESG):

Kinross’ ESG performance continued to rank in the top quartile of its peer group, as measured by Sustainalytics, MSCI, ISS, Vigeo, Refinitiv and S&P Global CSA’s ESG ratings.
The Company outlined its Climate Change Strategy, with the target of reducing the intensity of its scope 1 and scope 2 emissions by 30% by 2030.
Injury frequency rates remained in line with Kinross’ three-year averages, however, this was overshadowed by a tragic fatality at Chirano and a mill fire at Tasiast.
Kinross continued to work to mitigate the risks associated with the ongoing COVID-19 pandemic, and provided support to bolster vaccination rates of its workforce.
The Company established an ESG Executive Committee to help further strengthen ESG governance.
CEO Commentary:
J. Paul Rollinson, President and CEO, made the following comments in relation to 2021 fourth-quarter and year-end results:

“Despite some challenges during 2021, we produced approximately 2.1 million ounces. We expect to increase our production in 2022 and 2023 to 2.65 million and 2.8 million ounces, respectively, to drive robust free cash flow. Our long-term production profile remains strong, with expected production of 2.6 million ounces in 2024 and an annual average production estimate of at least 2.5 million ounces over the remainder of the decade.

“We are pleased to report that the Tasiast mill is now operating at sustained throughput levels comparable to the first half of 2021. Our development projects are also advancing well and we have started commissioning at La Coipa, where we have increased life of mine production estimates to approximately 1 million ounces and extended estimated mine life to early 2026. Kinross also successfully added to its mineral reserve estimates, which increased by 2.7 million ounces to 32.6 million gold equivalent ounces at year-end 2021.

“In addition, we enhanced our return of capital to shareholders by returning more than $250 million through our quarterly dividend and share buyback programs. We also finalized our agreement with the Government of Mauritania to underpin our strong partnership and announced an agreement to acquire Great Bear Resources to further strengthen our long-term growth pipeline.

“Safety and sustainability continue to be priorities, and we again ranked in the top quartile of our peer group as measured by a number of ESG ranking agencies in 2021. We also outlined a Climate Change Strategy, with the objective of a 30% reduction in intensity of scope 1 and scope 2 emissions by 2030.”

Financial results

Summary of financial and operating results
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