Cost guidance lowered on strong performance year-to-date; All-in sustaining cost per ounce down 15% year-over-year

$100 million of cash added to the balance sheet in the first nine months of the year

Toronto, Ontario - November 5, 2014 - Kinross Gold Corporation (TSX: K, NYSE: KGC) today announced its results for the third quarter ended September 30, 2014.

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

Highlights:

  • Production1: 693,818 gold equivalent ounces (Au eq. oz.), compared with 680,580 ounces in Q3 2013.
  • Revenue: $945.7 million, compared with $876.3 million in Q3 2013.
  • Production cost of sales2: $698 per Au eq. oz., compared with $740 in Q3 2013.
  • All-in sustaining cost2: $919 per Au eq. oz. sold, compared with $1,082 in Q3 2013. All-in sustaining cost per Au oz. sold on a by-product basis was $911 in Q3 2014, compared with $1,069 in Q3 2013.
  • Adjusted operating cash flow2: $312.0 million, or $0.27 per share, compared with $256.4 million, or $0.22 per share, in Q3 2013.
  • Adjusted net earnings2,3: $70.1 million, or $0.06 per share, compared with $54.4 million, or $0.05 per share, in Q3 2013.
  • Reported net loss/earnings3: Loss of $4.3 million, or $0.00 per share, compared with earnings of $46.9 million, or $0.04 per share, in Q3 2013.
  • Average realized gold price: $1,268 per Au oz., compared with $1,331 per Au oz. in Q3 2013.
  • 2014 Outlook:
    • Lowers guidance range for production cost of sales per Au eq. oz. sold to $720-$750, from $730-$780
    • Expects to be at the high end of a narrowed production guidance range of 2.6-2.7 million Au eq. oz., from previous guidance range of 2.5-2.7 million Au eq. oz.
    • Narrows guidance range downward for all-in sustaining cost per Au eq. oz. sold to $950-$990, from $950-$1,050
    • Lowers guidance for capital expenditures from $675 million to a range of $630-$650 million
    • Expects to end the year below guidance of $205 million for overhead (G&A and business development)
  • Sale of Fruta del Norte: On October 21, 2014, Kinross announced that it entered into an agreement to sell its interest in Aurelian Resources Inc. and the Fruta del Norte project in Ecuador to Fortress Minerals Corp. for $240 million in cash and shares.

 CEO Commentary

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

"In Q3, Kinross made further significant gains in reducing costs. The Company is lowering its 2014 production cost of sales guidance and is revising down other key cost metrics as a result of successful cost reduction initiatives at several mines, continued discipline in capital spending and the addition of low cost ounces from our newest mine, Dvoinoye.

"The combination of declining costs and strong production in Q3 - including record production at Paracatu and Maricunga - resulted in a 22% year-over-year increase in adjusted operating cash flow, despite a lower gold price. In the first nine months of the year, the Company has added $100 million in cash to the balance sheet. 

"With Kinross' recently announced agreement to sell its interests in Ecuador for $240 million in cash and Fortress Minerals shares, we continue to strengthen our balance sheet and focus on strategic priorities and growth opportunities." 

Please click HERE to download the PDF of the full 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 12 to 16 of this news release. 

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

About Kinross

Kinross is a Canadian-based gold mining company with mines and projects in Brazil, 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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