Company reports increased quarterly production and lower costs
Returned capital of approximately $300 million year-to-date

TORONTO, Nov. 09, 2022 (GLOBE NEWSWIRE) -- Kinross Gold Corporation (TSX: K, NYSE: KGC) (“Kinross” or the “Company”) today announced its results for the third-quarter ended September 30, 2022.

This news release contains forward-looking information about expected future events and financial and operating performance of the Company. Please refer to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located on page 30 of this release. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.

Results from the Company’s Russian and Ghanaian assets have been excluded from its Q3 2022 continuing results, along with comparative figures, due to the classification of these assets as discontinued as at September 30, 2022.

Q3 2022 highlights from continuing operations:

Gold equivalent production of 529,155 Au eq. oz. produced, an increase of 17% compared with Q2.
Production cost of sales 1 of $941 per Au eq. oz. sold and all-in sustaining cost2 of $1,282 per Au eq. oz. sold, representing reductions of 8% and 4%, respectively, compared with Q2.
Margins 3 of $791 per Au eq. oz. sold.
Operating cash flow 4 of $173.2 million and adjusted operating cash flow2 of $259.4 million.
Reported net earnings 5 of $65.9 million, or $0.05 per share, with adjusted net earnings2, 6 of $68.7 million, or $0.05 per share2.
Cash and cash equivalents of $488.4 million, and totalliquidity7 of approximately $2 billion at September 30, 2022.
Return of capital:

Kinross returned approximately $300 million of capital to its shareholders year-to-date through its enhanced share buyback and quarterly dividend programs, or approximately $0.23 per share. Full year return of capital is expected to be approximately $450 million.
Since launching an enhanced share buyback program in September, the Company has re-purchased approximately $180 million in shares, or 60%, out of the $300 million planned for 2022.
Kinross’ Board of Directors declared a quarterly dividend of $0.03 per common share payable on December 15, 2022 to shareholders of record at the close of business on December 1, 2022.
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1 “Production cost of sales from continuing operations per equivalent ounce sold” is defined as production cost of sales, as reported on the interim condensed consolidated statements of operations, divided by total gold equivalent ounces sold from continuing operations.
2 These figures are non-GAAP financial measures and ratios, as applicable, and are defined and reconciled on pages 18 to 23 of this news release. Non-GAAP financial measures and ratios have no standardized meaning under IFRS and therefore, may not be comparable to similar measures presented by other issuers.
3 “Margins” from continuing operations per equivalent ounce sold is defined as average realized gold price per ounce from continuing operations less production cost of sales from continuing operations per equivalent ounce sold.
4 Operating cash flow figures in this release represent “Net cash flow of continuing operations provided from operating activities,” as reported on the interim condensed consolidated statements of cash flows.
5 Reported net earnings (loss) figures in this news release represent “Net earnings (loss) from continuing operations attributable to common shareholders,” as reported on the interim condensed consolidated statements of operations.
6 Adjusted net earnings figures in this news release represent “Adjusted net earnings from continuing operations attributable to common shareholders.”
7 “Total liquidity” is defined as the sum of cash and cash equivalents, as reported on the interim condensed consolidated balance sheets, and available credit under the Company’s credit facilities (as calculated in Section 6 – Liquidity and Capital Resources of Kinross’ MD&A for the three and nine months ended September 30, 2022).


Company guidance:

Kinross is expecting its 2022 production to be approximately 2 million Au eq. oz., mainly due to the temporary delays in La Coipa’s mill ramp-up and commissioning related to the Tasiast 21k project. Full-year production from continuing operations for the year ended December 31, 2021 was 1,447,240 Au eq. oz.
The Company expects its 2022 production cost of sales to be slightly above $900 per Au eq. oz. All-in sustaining cost is expected to be approximately $1,240 per Au eq. oz. sold2. Consolidated production cost of sales was $8328 per Au eq. oz. sold and attributable all-in sustaining cost of sales was $1,1382, 8 per Au eq. oz. sold for the year ended December 31, 2021.
The Company now anticipates its 2022 capital expenditures to be approximately $750 million mainly due to deferred capital development across the portfolio. Capital expenditures from continuing operations were $822 million for the year ended December 31, 2021.
Kinross has updated its forecast to produce approximately 2.1 million attributable9 Au eq. oz. in 2023 and 2024, respectively, and approximately 2 million attributable9 Au eq. oz. in 2025.
Development projects:

The Great Bear project in Red Lake, Ontario, continues to make excellent progress and the Company plans to declare an initial mineral resource estimate in early 2023. Drilling results continue to confirm Kinross’ vision of developing a large, long-life mining complex.
The Tasiast 24k project is on schedule to reach 24,000 tonnes per day throughput in mid-2023.
The Manh Choh project advanced well during the quarter with production expected in the second half of 2024.
CEO Commentary:
J. Paul Rollinson, President and CEO, made the following comments in relation to 2022 third-quarter results:

“During the quarter, our operations increased production and lowered costs, primarily driven by higher grades at Paracatu, enhanced seasonal recoveries from our U.S.-based heap leaches, and the ramp-up at La Coipa, which progressed well and is expected to continue trending upwards with the mill averaging throughput levels of approximately 9,500 tonnes per day in October. Tasiast is on track to significantly increase production in the fourth quarter, with higher recoveries and increased throughput, which is expected to contribute to our strongest quarter of 2022.

“We are excited about our pipeline of development and exploration projects, which all made strong progress during the quarter. At the world-class Great Bear project, drilling results continue to fulfill our expectations, including high-grade intercepts at depth, and we are on track to declare an initial mineral resource early next year.

“We have returned approximately $300 million of capital to shareholders so far this year and expect to return a total of approximately $450 million by year-end through our share repurchase and dividend programs. Since launching our enhanced share buyback program in September, we have spent $180 million, effectively repurchasing for cancellation the shares that were issued as part of the Great Bear transaction while maintaining our quarterly dividend and investment-grade balance sheet.

“During the quarter we continued to advance our ESG goals. On climate change and emissions reductions, we have completed an analysis of climate-related scenarios and their potential impacts on our future business, advanced our pipeline of energy-efficiency projects, and entered into strategic partnerships with various technology providers, suppliers and electric utilities.”

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8 Results as previously reported for the year ended December 31, 2021 include Ghanaian and Russian operations. Production cost of sales per equivalent ounce sold for the year ended December 31, 2021 is “Consolidated production cost of sales per equivalent ounce sold” and is defined as production cost of sales, as reported on the consolidated statements of operations for the year ended December 31, 2021, divided by total gold equivalent ounces sold. Attributable all-in sustaining cost per equivalent ounce sold of $1,138 for the year ended December 31, 2021 includes Kinross' share of Chirano (90%) production and costs. The definition and reconciliation of this non-GAAP ratio is included on page 20 of this news release.
9 Attributable production guidance includes Kinross' share of Manh Choh (70%) production.

Summary of financial and operating results

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