Kinross reports 2012 fourth-quarter and year-end results
Company exceeds full-year production forecast; meets full-year cost of sales forecast
Toronto, Ontario – February 13, 2013 – Kinross Gold Corporation (TSX: K, NYSE: KGC) today announced its results for the
fourth quarter and full year ended December 31, 2012.
(This news release contains forward-looking information subject to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located on page 12 of this
release. All dollar amounts in this release are expressed in U.S. dollars, unless otherwise noted. The comparative figures have been recast to exclude Crixás due to its disposal.)
Financial and operating highlights:
? Production1: 724,510 gold equivalent ounces (Au eq. oz.), compared with 622,507 ounces in Q4 2011. Full-year
production was 2,617,813 Au eq. oz., exceeding guidance, compared with 2,543,790 Au eq. oz. for full-year 2011.
? Revenue: $1,186.9 million, compared with $919.8 million in Q4 2011. Full-year revenue was $4,311.4 million, compared
with $3,842.5 million for full-year 2011.
? Production cost of sales2: $686 per Au eq. oz., compared with $635 in Q4 2011. Full-year production cost of sales was in
line with guidance at $706 per Au eq. oz., compared with $592 per Au eq. oz. for full-year 2011.
? Attributable margin3: $1,021 per ounce sold, compared with $963 in Q4 2011. Full-year attributable margin was $937 per
ounce sold, compared with $908 for full-year 2011.
? Adjusted operating cash flow4: $501.4 million, or $0.44 per share, compared with $353.4 million, or $0.31 per share, in
Q4 2011. Full-year adjusted operating cash flow was $1,527.0 million, or $1.34 per share, compared with $1,561.8 million,
or $1.37 per share, for full-year 2011.
? Adjusted net earnings4, 5: $276.5 million, or $0.24 per share, compared with $187.2 million, or $0.16 per share, in Q4
2011. Full-year adjusted net earnings were $879.2 million, or $0.77 per share, compared with $850.8 million, or $0.75 per
share, for full-year 2011.
? Reported net loss5: A reported net loss of $2,989.1 million, or $2.62 per share, compared with a net loss of $2,791.0
million, or $2.45 per share, for Q4 2011. Full-year reported net loss was $2,548.8 million, or $2.24 per share, compared with
a net loss of $2,093.4 million, or $1.84 per share, for full-year 2011.
? Non-cash impairment charge: The reported net loss for 2012 included an after-tax non-cash impairment charge of
$3,206.1 million. The Tasiast project represents $3,094.8 million of this charge.
? Mineral reserves and resources: Proven and probable mineral reserve estimates at year-end 2012 were 59.6 million
ounces of gold, compared with 62.6 million ounces of gold at year-end 2011, both estimated using a $1,200 per ounce gold
price. Measured and indicated mineral resource estimates at year-end were 20.3 million ounces of gold, compared with
25.4 million ounces of gold at year-end 2011, both estimated using a $1,400 per ounce gold price.
Outlook, growth projects, and exploration:
? Kinross expects to produce approximately 2.4-2.6 million gold equivalent ounces in 2013 at a production cost of sales per
gold equivalent ounce of $740-790. Total capital expenditures are forecast to be approximately $1.6 billion, a reduction of
approximately $325 million compared with 2012.
? The Tasiast pre-feasibility study remains on schedule for expected completion in Q1 2013. Dvoinoye remains on schedule
for expected delivery of first ore to the Kupol mill in the second half of the year.
? Recent exploration results from two step-out drilling targets outside the current resource footprint at Tasiast have confirmed
the presence of narrow, high-grade veins. At Kupol, Kinross has identified a new structure with strong potential as a result
of the discovery of additional mineralization at the Moroshka target.
? The Board of Directors declared a dividend of $0.08 per share payable on March 28, 2013 to shareholders of record at the
close of business on March 21, 2013.
1 Unless otherwise stated, production figures in this news release are based on Kinross’ 90% share of Chirano production and 75% of Kupol production up to April 27, 2011 (100%
thereafter). Prior year production figures have been adjusted to exclude Crixás due to its sale in Q2 2012.
2 “Production cost of sales per gold equivalent ounce” is a non-GAAP measure defined as production cost of sales per the financial statements divided by the attributable number of gold
equivalent ounces sold, both reduced to reflect a 90% ownership interest in Chirano sales. Production cost of sales is equivalent to total cost of sales (per the financial statements), less
depreciation, depletion, amortization, and impairment charges.
3 “Attributable margin per ounce sold” is a non-GAAP measure defined as “average realized gold price per ounce” less “attributable production cost of sales per gold equivalent ounce sold”.
4 Reconciliation of non-GAAP measures are provided on page 14 of this news release.
5 “Net earnings (loss)” figures in this release represent “net earnings (loss) from continuing operations attributable to common shareholders.”