All-in sustaining cost down year-over-year

Production cost of sales continues to decline at Tasiast, Chirano and Maricunga

Toronto, Ontario - May 7, 2014 - Kinross Gold Corporation (TSX: K, NYSE: KGC) today announced its results for the first quarter ended March 31, 2014.

(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 six of this release. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.)

Highlights:

  • : 664,690 gold equivalent ounces (Au eq. oz.), compared with 648,897 ounces in Q1 2013.
  • Revenue: $817.4 million, compared with $1,058.1 million in Q1 2013.
  • : $727 per Au eq. oz., compared with $729 in Q1 2013.
  • All-in sustaining cost2: $1,001 per Au eq. oz. sold, compared with $1,030 in Q1 2013.
  • Adjusted operating cash flow2: $239.0 million, or $0.21 per share, compared with $413.7 million, or $0.36 per share, in Q1 2013.
  • Adjusted net earnings2,3: $34.1 million, or $0.03 per share, compared with adjusted earnings of $172.4 million, or $0.15 per share, in Q1 2013.
  • : $31.8 million, or $0.03 per share, compared with net earnings of $162.4 million, or $0.14 per share, in Q1 2013.
  • Average realized gold price: $1,299 per Au oz., compared with $1,624 per Au oz. in Q1 2013.
  • Outlook: Kinross expects to be within its 2014 forecast guidance for production (2.5-2.7 million Au eq. oz.), production cost of sales ($730-780 per Au eq. oz. sold), all-in sustaining cost ($950-1,050 per Au eq. oz. sold), and total capital expenditures ($675 million).

CEO Commentary

J. Paul Rollinson, CEO, made the following comments in relation to 2014 first-quarter results:

"Kinross had another quarter of solid performance, with an increase in production year-over-year as our new Dvoinoye mine came fully on stream, and a decline in all-in sustaining cost as a result of capital and operating cost reduction efforts across the Company.

"While lower gold prices affected earnings, Kinross is making steady progress to reduce costs. Capital expenditures for the quarter were approximately half of what they were a year ago, while our all-in sustaining cost continued to decline. In addition, we've been able to reduce production cost of sales on a per ounce basis by 16% at Chirano, 14% at Maricunga, and 9% at Tasiast compared with Q4 2013. With these improvements, and strong performance from our other sites, Kinross is on track to meet its guidance for the year. In short, we continue to deliver on our strategy, which is focused on capital discipline, operational excellence, quality over quantity and balance sheet strength.  

"We released the Tasiast feasibility study on schedule during the quarter. With a significant reduction in forecast capital costs compared with earlier project estimates, and expected production cost of sales of approximately $500 per ounce for the first five years of production, the study shows that an expanded Tasiast has the potential to be among our lowest cost operations, a significant contributor of new production and cash flow, and a cornerstone of our future portfolio."

1Unless otherwise stated, production figures in this news release are based on Kinross' 90% share of Chirano production.

2These figures arenon-GAAPfinancial measuresandaredefinedand reconciledonpageseight to 12 of this news release. 

3Net earnings figures in this release represent "net earnings from continuing operations attributable to common shareholders". 

Please click here to download the full PDF of this release.

About Kinross

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

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