Strong operational performance and focus on costs contribute to free cash flow

Cash and cash equivalents of more than $1 billion

Toronto, Ontario - July 29, 2015 - Kinross Gold Corporation (TSX: K, NYSE: KGC) today announced its results for the second quarter ended June 30, 2015.

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

2015 second quarter highlights:

  • Production1 : 660,898 gold equivalent ounces (Au eq. oz.), compared with 679,831 ounces in Q2 2014.
  • Revenue: $755.2 million, compared with $911.9 million in Q2 2014.
  • Production cost of sales2 : $724 per Au eq. oz., compared with $742 in Q2 2014.
  • All-in sustaining cost2 : $1,011 per Au eq. oz. sold, compared with $976 in Q2 2014. All-in sustaining cost per gold ounce (Au oz.) sold on a by-product basis was $1,006 in Q2 2015, compared with $967 in Q2 2014.
  • Adjusted operating cash flow2 : $161.4 million, or $0.14 per share, compared with $240.3 million, or $0.21 per share, in Q2 2014.
  • Adjusted net earnings/loss2,3 : Loss of $13.6 million, or $0.01 per share, compared with adjusted earnings of $32.9 million, or $0.03 per share, in Q2 2014.
  • Reported net earnings/loss3 : Loss of $83.2 million, or $0.07 per share, compared with earnings of $46.0 million, or $0.04 per share, in Q2 2014.
  • Balance sheet strength: Increased cash and cash equivalents to $1,031.4 million decreased net debt4 to $960.2 million, $250 million in senior notes due in 2016 only significant debt maturity until 2019.
  • Average realized gold price: $1,194 per ounce, compared with $1,285 per ounce in Q2 2014.
  • Outlook: Kinross is tracking at the high end of 2015 guidance for production (2.4 - 2.6 million Au eq. oz.), at the low end of guidance for production cost of sales ($720 - $780 per Au eq. oz.) and all-in sustaining cost ($1,000 - $1,100 per Au eq. oz.), and below total capital expenditure guidance ($725 million).
  • Comprehensive spending review: Kinross is continuing its comprehensive review of its non-operating discretionary spending in order to further reduce costs. This is in addition to further measures being taken to strengthen the business, including plans to reduce costs and enhance performance at its Tasiast operation, and an agreement reached in July to extend Kinross' debt profile and amend its debt covenant.

CEO Commentary

J. Paul Rollinson, CEO, made the following comments in relation to 2015 second quarter results:

"Kinross continued to deliver on its targets, with production in the first half of 2015 tracking at the high-end of guidance for the year, and all-in sustaining cost tracking at the low-end of the full-year forecast. The Company achieved these results despite a temporary suspension of operations at Maricunga and fewer ounces sold due to timing of some gold sales, which, together with a decline in the gold price, impacted earnings. Kinross nonetheless continued to generate free cash flow in Q2, in large part as a result of its strong operational performance, benefits from foreign exchange and lower oil prices, and a company-wide effort to drive down procurement costs and reduce working capital.

With strong liquidity, including more than $1 billion in cash on the balance sheet, Kinross is well-positioned to weather the current market volatility. This is no coincidence - over the past three years we have actively and prudently managed the balance sheet in a declining gold price environment - and we will continue to do so, with a number of ongoing initiatives to further strengthen the Company's financial position and drive down costs."

Please click here to download the PDF of the news release.

(1) 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 17 of this news release.

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

(4) "Net Debt" is defined as short- and long-term debt less cash and cash equivalents and restricted cash.

About Kinross

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

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