|
TORONTO, ON
--(Marketwired - July 29, 2015) -
Kinross Gold Corporation
(TSX:
K.TO
)
(
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:
-
Production
1
: 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 sales
2:
$724 per Au eq. oz., compared with $742 in Q2 2014.
-
All-in sustaining cost
2:
$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 flow
2:
$161.4 million, or $0.14 per share, compared with $240.3
million, or $0.21 per share, in Q2 2014.
-
Adjusted net earnings/loss
2,3:
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/loss
3:
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 debt
4
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 Companys financial position
and drive down costs.
| |
|
Financial results
|
|
Summary of financial and operating
results
|
| |
|
|
|
|
| |
|
Three months ended June 30,
|
|
Six months ended June 30,
|
| (in millions, except ounces, per
share amounts, and per ounce amounts) |
|
2015 |
|
|
2014 |
|
2015 |
|
|
2014 |
|
Operating Highlights from Continuing
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total gold equivalent ounces
(a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Produced
(c) |
|
|
667,529
|
|
|
|
686,130 |
|
|
1,303,657
|
|
|
|
1,358,310 |
| |
Sold
(c) |
|
|
633,148
|
|
|
|
709,606 |
|
|
1,274,900
|
|
|
|
1,338,243 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Attributable gold equivalent
ounces
(a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Produced
(c) |
|
|
660,898
|
|
|
|
679,831 |
|
|
1,290,258
|
|
|
|
1,344,521 |
| |
Sold
(c) |
|
|
626,246
|
|
|
|
703,234 |
|
|
1,260,811
|
|
|
|
1,324,765 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Highlights from Continuing
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Metal sales |
|
$ |
755.2
|
|
|
$ |
911.9 |
|
$ |
1,536.6
|
|
|
$ |
1,729.3 |
| Production cost of sales |
|
$ |
458.5
|
|
|
$ |
525.9 |
|
$ |
913.1
|
|
|
$ |
981.9 |
| Depreciation, depletion and
amortization |
|
$ |
216.7
|
|
|
$ |
215.3 |
|
$ |
422.9
|
|
|
$ |
411.7 |
| Impairment charges |
|
$ |
24.5
|
|
|
$ |
- |
|
$ |
24.5
|
|
|
$ |
- |
| Operating (loss) earnings |
|
$ |
(67.8
|
) |
|
$ |
80.2 |
|
$ |
(25.3
|
) |
|
$ |
161.6 |
| Net earnings (loss) attributable
to common shareholders |
|
$ |
(83.2
|
) |
|
$ |
46.0 |
|
$ |
(89.9
|
) |
|
$ |
77.8 |
| Basic earnings (loss) per share
attributable to common shareholders |
|
$ |
(0.07
|
) |
|
$ |
0.04 |
|
$ |
(0.08
|
) |
|
$ |
0.07 |
| Diluted earnings (loss) per share
attributable to common shareholders |
|
$ |
(0.07
|
) |
|
$ |
0.04 |
|
$ |
(0.08
|
) |
|
$ |
0.07 |
| Adjusted net earnings (loss)
attributable to common shareholders
(b) |
|
$ |
(13.6
|
) |
|
$ |
32.9 |
|
$ |
1.7
|
|
|
$ |
67.0 |
| Adjusted net earnings (loss) per
share
(b) |
|
$ |
(0.01
|
) |
|
$ |
0.03 |
|
$ |
0.00
|
|
|
$ |
0.06 |
| Net cash flow provided from
operating activities |
|
$ |
167.2
|
|
|
$ |
163.9 |
|
$ |
417.3
|
|
|
$ |
374.4 |
| Adjusted operating cash flow
(b) |
|
$ |
161.4
|
|
|
$ |
240.3 |
|
$ |
376.2
|
|
|
$ |
482.5 |
| Adjusted operating cash flow per
share
(b) |
|
$ |
0.14
|
|
|
$ |
0.21 |
|
$ |
0.33
|
|
|
$ |
0.42 |
| Average realized gold price per
ounce |
|
$ |
1,194
|
|
|
$ |
1,285 |
|
$ |
1,206
|
|
|
$ |
1,292 |
| Consolidated production cost of
sales per equivalent ounce
(c)
sold
(b) |
|
$ |
724
|
|
|
$ |
741 |
|
$ |
716
|
|
|
$ |
734 |
| Attributable
(a)
production cost of sales per equivalent ounce
(c)
sold
(b) |
|
$ |
724
|
|
|
$ |
742 |
|
$ |
717
|
|
|
$ |
735 |
| Attributable
(a)
production cost of sales per ounce sold on a by-product
basis
(b) |
|
$ |
712
|
|
|
$ |
725 |
|
$ |
704
|
|
|
$ |
717 |
| Attributable
(a)
all-in sustaining cost per ounce sold on a by-product basis
(b) |
|
$ |
1,006
|
|
|
$ |
967 |
|
$ |
982
|
|
|
$ |
978 |
| Attributable
(a)
all-in sustaining cost per equivalent ounce
(c)
sold
(b) |
|
$ |
1,011
|
|
|
$ |
976 |
|
$ |
987
|
|
|
$ |
988 |
| Attributable
(a)
all-in cost per ounce sold on a by-product basis
(b) |
|
$ |
1,092
|
|
|
$ |
1,055 |
|
$ |
1,071
|
|
|
$ |
1,078 |
| Attributable
(a)
all-in cost per equivalent ounce
(c)
sold
(b) |
|
$ |
1,094
|
|
|
$ |
1,062 |
|
$ |
1,074
|
|
|
$ |
1,084 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
"Total" includes 100% of Chirano
production. "Attributable" includes Kinross' share of
Chirano (90%) production. |
|
(b) |
The definition and reconciliation
of these non-GAAP financial measures is included on pages
13 to 17 of this news release. |
|
(c) |
"Gold equivalent ounces" include
silver ounces produced and sold converted to a gold
equivalent based on a ratio of the average spot market
prices for the commodities for each period. The ratio for
the second quarter of 2015 was 72.75:1, compared with
65.67:1 for the second quarter of 2014 and for the first
six months of 2015 was 72.84:1, compared with 64.36:1 for
the first six months of 2014. |
The following operating and financial results are based on
second-quarter 2015 gold equivalent production from continuing
operations. Production and cost measures are on an attributable
basis:
Production:
Kinross produced 660,898 attributable Au eq. oz. in Q2 2015, a 3%
decrease compared with Q2 2014, due mainly to lower production at
Maricunga as a result of heavy rains in March, which temporarily
suspended operations, and at Paracatu, due to lower mill
throughput and recoveries, partially offset by increased
production at Fort Knox.
Production cost of sales:
Production cost of sales per Au eq. oz.
2
decreased to $724 for Q2 2015, compared with $742 for Q2 2014,
mainly as a result of lower energy costs and favourable foreign
exchange rates.
Production cost of sales per Au oz. on a by-product basis
2
was $712 in Q2 2015, compared with $725 in Q2 2014, based on Q2
2015 attributable gold sales of 608,893 ounces and attributable
silver sales of 1,262,492 ounces.
All-in sustaining cost:
All-in sustaining cost per Au eq. oz. sold
2
was $1,011 in Q2 2015, compared with $976 in Q2 2014, primarily
due to higher capital expenditures and fewer attributable gold
ounces sold, partially offset by lower energy costs and
favourable foreign exchange rates. All-in sustaining cost per Au
oz. sold on a by-product basis
2
was $1,006 in Q2 2015, compared with $967 in Q2 2014.
Revenue:
Revenue from metal sales was $755.2 million in Q2 2015, compared
with $911.9 million during the same period in 2014, primarily due
to a lower average realized gold price and lower gold equivalent
ounces sold as a result of timing of sales.
Average realized gold price:
The average realized gold price in Q2 2015 declined to $1,194 per
ounce, compared with $1,285 per ounce in Q2 2014.
Margins:
Kinross' attributable margin per Au eq. oz. sold(5) was $470 per
Au eq. oz. for Q2 2015, compared with a Q2 2014 margin of $543
per Au eq. oz.
Operating cash flow:
Adjusted operating cash flow
2
was $161.4 million for Q2 2015, or $0.14 per share, compared with
$240.3 million, or $0.21 per share, for Q2 2014.
Earnings/loss:
Adjusted net loss
2,3
was $13.6 million, or $0.01 per share, for Q2 2015, compared with
adjusted net earnings of $32.9 million, or $0.03 per share, for
Q2 2014.
Reported net loss
3
was $83.2 million, or $0.07 per share, compared with reported net
earnings of $46.0 million, or $0.04 per share, for Q2 2014.
Reported net loss was due mainly to a $24.5 million inventory
write-down at Maricunga as a result of an extreme weather event
in Chile, and lower revenue due to a lower average gold price and
timing of gold sales from Russia.
Capital expenditures:
Capital expenditures increased to $128.5 million for Q2 2015,
compared with $120.0 million for the same period last year,
primarily due to the Paracatu Santo Antonio tailings reprocessing
initiative.
Balance sheet strength
Kinross continued to strengthen its financial position despite
recent declines in the gold price, increasing its cash position,
decreasing its net debt and optimizing its debt portfolio.
As of June 30, 2015, Kinross had cash and cash equivalents of
$1,031.4 million, excluding restricted cash, adding $20.9 million
during the quarter, and $47.9 million since December 31, 2014.
The Company has available credit of $1,513.1 million.
As of June 30, 2015, Kinross' net debt
4
was $960.2 million, a reduction of $17.3 million during the
quarter and $73.1 million since December 31, 2014.
On July 24, 2015, the Company extended the maturity dates of
its $500 million term loan and $1.5 billion revolving credit
facility by one year, to 2019 and 2020 respectively. As part of
this extension, the terms of Kinross' debt covenant were amended,
resulting in an improvement in the net debt to EBITDA ratio
6
. Based on this amendment, the June 30, 2015 ratio would decrease
by 24 basis points to 1.02, well below the maximum permitted
level of 3.50.
Other than $250 million in senior notes and $50 million of the
outstanding Kupol loan, both of which are scheduled to be repaid
by September 2016, Kinross has no debt maturities until 2019.
Operating results
Mine-by-mine summaries for 2015 second-quarter operating results
may be found on pages eight and 12 of this news release.
Highlights include the following:
Americas
The region performed well in the quarter and is on track to
meet its production and cost of sales forecast for the year. At
Fort Knox
, production increased compared with Q1 2015 due to higher grade
mill material and the seasonal impact of warmer weather on heap
leach performance. Cost of sales per ounce decreased compared
with the previous quarter due to higher mill grades and an
increase in gold ounces sold, and decreased year-over-year mainly
as a result of lower fuel and power costs. At
Kettle River-Buckhorn
, production increased slightly compared with Q1 2015, but was
down compared with Q2 2014 due to lower grades associated with
the expected wind-down of the operation in 2016. Cost of sales
per ounce was lower compared with Q1 2015 due to a decrease in
fuel costs but increased year-over-year as a result of lower
grades. At
Round Mountain
, cost of sales decreased compared with the previous year and
quarter due to lower costs for fuel and supplies related to the
heap. Round Mountain also benefited from a continuous improvement
initiative, launched in Q4 2014, to improve heap leach
performance, which has contributed to increased production and
lower costs. The initiative includes optimizing the flow of
loaded solution to the carbon columns and other leaching
operational improvements.
Paracatu's
production decreased year-over-year and compared with Q1 2015 due
to reduced throughput and recovery, primarily as a result of the
metallurgical characteristics of the ore mined in the open pit
during the quarter. Recoveries improved in June, and better
performance is expected for the remainder of the year, as mining
moved to other areas of the pit. Paracatu's production cost of
sales declined compared with Q2 2014 as a result of lower power
costs and favourable foreign exchange rates, but increased on a
per ounce basis compared with the previous quarter as result of
lower production.
Maricunga's
production decreased year-over-year and compared with Q1 2015
primarily due to heavy rains in late March which suspended mining
and crushing operations for nine weeks. While operations have
resumed, third quarter production will be impacted by the lack of
ore placed on the leach pad during the suspension. Production is
expected to improve in Q4. Maricunga's production cost of sales
increased compared with Q1 2015 and Q2 2014 due to the resulting
reduction in production.
Russia
The region continues to perform well, and is on track to be at
the higher end of production and the lower end of cost of sales
guidance for the year. Second quarter production at the combined
Kupol
and
Dvoinoye
operation was slightly higher compared with the previous quarter
as the region began to increase the proportion of higher grade
Dvoinoye ore processed through the Kupol mill. The mill is now
expected to process approximately 1,200 tonnes of Dvoinoye ore
per day, representing approximately 25% of the total throughput,
and thereby increasing overall mill grade. Approximately 87,500
Au eq. oz. were produced from processing Dvoinoye ore in Q2 2015.
Production cost of sales per ounce for Q2 2015 decreased 8% to
$490 per Au eq. oz. compared with the prior year, due mainly to
productivity enhancements and favourable foreign exchange
movements.
Revenue and production cost of sales per ounce would have
benefited further, and overall Company earnings were impacted, by
the timing of gold sales. The region produced 191,160
attributable Au eq. oz, but sold 159,950 attributable Au eq. oz.
The outstanding ounces were sold in July and the region is
expected to see the benefits of additional gold sales in Q3.
West Africa
The region is on track to be at the higher end of production
and lower end of cost of sales guidance for the year. At
Chirano
, production was fairly consistent with the previous quarter, and
higher year-over-year, mainly as a result of the mill repairs
carried out in Q2 2014. Production cost of sales per ounce
increased year-over-year due to higher underground mobile
equipment maintenance costs and fuel consumption.
Tasiast's
production increased compared with Q1 2015 as a result of higher
mill grades and mill recoveries but decreased compared to Q2 2014
due to the wind-down of the dump leach. Production cost of sales
per ounce increased year-over-year due mainly to higher
maintenance and material supply costs.
Tasiast optimization update
Following the Q1 2015 decision to defer the 38,000 t/d mill
expansion in order to preserve balance sheet strength, Kinross
continues to focus on optimizing the Tasiast operation to enhance
performance and reduce costs.
In addition to a number of continuous improvement initiatives,
Kinross is exploring opportunities to optimize mill throughput to
address the hardness of the higher grade ore. One concept, which
is currently being analysed, involves enhancing the comminution
circuit with the installation of additional grinding equipment to
improve milling capacity. The objective is to optimize throughput
in the near term, while preserving optionality for a possible
future expansion at the appropriate time.
In July, Kinross also initiated discussions with the
Government of Mauritania and employee representatives regarding
cost saving measures; one option under consideration includes a
potential workforce reduction.
Tasiast remains an attractive brownfield growth opportunity
with a significant mineral resource base. In order to leverage
Tasiast's future potential, the Company will continue to look for
ways to reduce costs and advance growth opportunities in a
financially disciplined way.
Organic production initiatives
La Coipa Phase 7 update:
A pre-feasibility study (PFS), begun in Q2 2014 to explore
potential re-start options at La Coipa, remains on track to be
completed during the third quarter of 2015. The Company continues
to believe in the project's potential to mine higher grade
material and leverage existing infrastructure in an attractive
jurisdiction. The PFS contemplates blending and processing
material from the recently delineated Phase 7 mineralization and
material from other already defined mineral deposits on the
property. Metallurgical test work to understand optimal blend and
throughput continues to be a major component of the PFS.
A decision on whether to continue advancing the project will
be based on the gold price environment and the status of permit
applications. Exploration continues at several district targets,
including Catalina, with the assessment of some attractive
opportunities to extend the mine life beyond what the PFS will
contemplate.
Paracatu Santo Antonio tailings reprocessing:
The new continuous improvement project to reprocess tailings from
the Santo Antonio tailings facility continues on track for an
expected launch in the fourth quarter. The project remains on
budget, with an estimated capital cost of $20 million. The
project expects to add 34,000 Au oz. per year at a production
cost of sales of $400 per ounce. The tailings will be reprocessed
through Plant 1, with an expected production of approximately
11,000 Au oz. in Q4 2015.
Chirano mine life extension:
Development of the decline at the Akoti deposit commenced in the
second quarter, as the Company continues to proceed with plans to
extend Chirano's estimated mine life by one year to 2020. Kinross
expects to mine additional ounces at two known mineral deposits,
Paboase and Akoti, with Akoti being the third underground mine
expected to open. The anticipated mine life extension will also
provide additional time to realize the exploration potential at
Chirano, which is one of Kinross' most cost competitive
operations and is located in a highly prospective and low cost
mining area.
Outlook
The following section of the news release represents
forward-looking information and users are cautioned that actual
results may vary. We refer to the risks and assumptions
contained in the Cautionary Statement on Forward-Looking
Information on page 18 of this news release.
Kinross is tracking at the high end of its 2015 production
guidance of approximately 2.4 - 2.6 million Au eq. oz.
The Company is tracking at the low end of its production cost
of sales guidance range of $720 - $780 per Au eq. oz. and all-in
sustaining cost guidance range of $1,000 - $1,100 per Au eq. oz.
sold, and below its capital expenditure forecast of approximately
$725 million.
Other operating costs are now expected to be approximately
$120 million, compared with the previously-stated guidance of $50
million, partly due to the impact of the extreme weather event in
Chile, and changes to legal and tax-related accounting
provisions.
Corporate Responsibility update
Kinross released its 2014 Corporate Responsibility Data
Supplement, which provides updates on the Company's performance
in the key areas of health and safety, environment, governance
and community from its
2013 Corporate Responsibility Report
. The Supplement also measures the Company's performance against
the principles and standards of the UN Global Compact, which it
joined in 2010.
Highlights from the 2014 report include: achieved best safety
performance in Company history and among the best in the
industry; reduced water usage by a net 25% compared with 2013;
reduced non-mineral waste by 32% compared with 2013; 77% of total
procurement spent in host countries; 98% of total workforce from
host countries; contributed to 687 local community programs,
initiatives and events that benefitted over 800,000 people;
updated corporate Diversity Policy and achieved new gender
diversity target of 33% female representation on Kinross' Board
of Directors.
Click here to read full report
.
In June, Kinross was ranked as the top mining company on the
list of Top 50 Most Socially Responsible Companies in Canada
developed by
Maclean's
magazine in partnership with Sustainalytics, an independent
sustainability investment research firm. Kinross was also
recognized as one of Canada's Best 50 Corporate Citizens for the
sixth consecutive year by Corporate Knights, a media and research
firm that promotes social responsibility in the private
sector.
Conference call details
In connection with the release, Kinross will hold a conference
call and audio webcast on Thursday, July 30, 2015 at 8:00 a.m. ET
to discuss the results, followed by a question-and-answer
session. To access the call, please dial:
Canada & US toll-free
-- 1-800-319-4610
Outside of Canada & US
-- 1-604-638-5340
Replay (available up to 14 days after the call):
Canada & US toll-free
-- 1-800-319-6413; Passcode - 3310 followed by #.
Outside of Canada & US
-- 1-604-638-9010; Passcode - 3310 followed by #.
You may also access the conference call on a listen-only basis
via webcast at our website
www.kinross.com
. The audio webcast will be archived on our website at
www.kinross.com
.
This release should be read in conjunction with Kinross' 2015
second-quarter unaudited Financial Statements and Management's
Discussion and Analysis report at
www.kinross.com
. Kinross' 2015 second-quarter unaudited Financial Statements and
Management's Discussion and Analysis have been filed with
Canadian securities regulators (available at
www.sedar.com
) and furnished to the U.S. Securities and Exchange Commission
(available at
www.sec.gov
). Kinross shareholders may obtain a copy of the financial
statements free of charge upon request to the Company.
About Kinross Gold Corporation
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 (
KGC
).
null
| |
|
Review of operations
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30,
|
|
Gold equivalent ounces
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Produced
|
|
|
Sold
|
|
|
Production cost of sales ($millions)
|
|
|
Production cost of sales/equivalent ounce
sold
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
2015
|
|
|
2014 |
|
|
2015
|
|
2014
(1) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fort Knox |
|
116,061
|
|
|
91,316 |
|
|
113,697
|
|
|
85,938 |
|
|
$ |
68.9
|
|
|
$ |
71.7 |
|
|
$ |
606
|
|
$ |
834 |
| Round Mountain |
|
48,448
|
|
|
42,275 |
|
|
47,893
|
|
|
42,378 |
|
|
|
36.4
|
|
|
|
36.9 |
|
|
|
760
|
|
|
871 |
| Kettle River - Buckhorn |
|
29,580
|
|
|
40,555 |
|
|
29,524
|
|
|
38,801 |
|
|
|
23.4
|
|
|
|
24.9 |
|
|
|
793
|
|
|
642 |
| Paracatu |
|
110,366
|
|
|
124,329 |
|
|
107,169
|
|
|
132,327 |
|
|
|
90.5
|
|
|
|
114.6 |
|
|
|
844
|
|
|
866 |
| La Coipa |
|
-
|
|
|
- |
|
|
-
|
|
|
21 |
|
|
|
-
|
|
|
|
0.1 |
|
|
|
-
|
|
|
nm |
| Maricunga |
|
47,713
|
|
|
64,290 |
|
|
50,957
|
|
|
64,333 |
|
|
|
55.0
|
|
|
|
56.2 |
|
|
|
1,079
|
|
|
874 |
|
Americas Total
|
|
352,168
|
|
|
362,765 |
|
|
349,240
|
|
|
363,798 |
|
|
|
274.2
|
|
|
|
304.4 |
|
|
|
785
|
|
|
837 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Kupol |
|
191,160
|
|
|
195,275 |
|
|
159,950
|
|
|
216,765 |
|
|
|
78.3
|
|
|
|
114.8 |
|
|
|
490
|
|
|
530 |
|
Russia Total
|
|
191,160
|
|
|
195,275 |
|
|
159,950
|
|
|
216,765 |
|
|
|
78.3
|
|
|
|
114.8 |
|
|
|
490
|
|
|
530 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tasiast |
|
57,890
|
|
|
65,099 |
|
|
54,941
|
|
|
65,319 |
|
|
|
58.4
|
|
|
|
66.5 |
|
|
|
1,063
|
|
|
1,018 |
| Chirano (100%) |
|
66,311
|
|
|
62,991 |
|
|
69,017
|
|
|
63,724 |
|
|
|
47.6
|
|
|
|
40.2 |
|
|
|
690
|
|
|
631 |
|
West Africa Total
|
|
124,201
|
|
|
128,090 |
|
|
123,958
|
|
|
129,043 |
|
|
|
106.0
|
|
|
|
106.7 |
|
|
|
855
|
|
|
827 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operations Total |
|
667,529
|
|
|
686,130 |
|
|
633,148
|
|
|
709,606 |
|
|
|
458.5
|
|
|
|
525.9 |
|
|
|
724
|
|
|
741 |
| Less Chirano non-controlling
interest (10%) |
|
(6,631
|
) |
|
(6,299 |
) |
|
(6,902
|
) |
|
(6,372 |
) |
|
|
(4.8
|
) |
|
|
(4.0 |
) |
|
|
|
|
|
|
|
Attributable Total
|
|
660,898
|
|
|
679,831 |
|
|
626,246
|
|
|
703,234 |
|
|
$ |
453.7
|
|
|
$ |
521.9 |
|
|
$ |
724
|
|
$ |
742 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) "nm" means not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30,
|
|
Gold equivalent ounces
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Produced
|
|
|
Sold
|
|
|
Production cost of
sales ($millions)
|
|
|
Production cost of sales/equivalent ounce
sold
|
| |
|
2015
|
|
|
2014 |
|
|
2015
|
|
|
2014 |
|
|
|
2015
|
|
|
|
2014 |
|
|
|
2015
|
|
|
2014 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fort Knox |
|
198,734
|
|
|
174,904 |
|
|
195,700
|
|
|
198,649 |
|
|
$ |
124.0
|
|
|
$ |
135.9 |
|
|
$ |
634
|
|
$ |
684 |
| Round Mountain |
|
88,710
|
|
|
87,329 |
|
|
88,340
|
|
|
83,768 |
|
|
|
72.4
|
|
|
|
74.2 |
|
|
|
820
|
|
|
886 |
| Kettle River - Buckhorn |
|
53,845
|
|
|
66,472 |
|
|
53,691
|
|
|
64,630 |
|
|
|
47.7
|
|
|
|
41.3 |
|
|
|
888
|
|
|
639 |
| Paracatu |
|
235,051
|
|
|
251,414 |
|
|
232,098
|
|
|
248,103 |
|
|
|
184.4
|
|
|
|
214.7 |
|
|
|
794
|
|
|
865 |
| La Coipa |
|
-
|
|
|
- |
|
|
-
|
|
|
1,365 |
|
|
|
-
|
|
|
|
1.7 |
|
|
|
-
|
|
|
1,245 |
| Maricunga |
|
104,535
|
|
|
117,019 |
|
|
105,333
|
|
|
120,190 |
|
|
|
111.0
|
|
|
|
114.8 |
|
|
|
1,054
|
|
|
955 |
|
Americas Total
|
|
680,875
|
|
|
697,138 |
|
|
675,162
|
|
|
716,705 |
|
|
|
539.5
|
|
|
|
582.6 |
|
|
|
799
|
|
|
813 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Kupol |
|
376,889
|
|
|
386,513 |
|
|
352,117
|
|
|
355,051 |
|
|
|
169.8
|
|
|
|
181.3 |
|
|
|
482
|
|
|
511 |
|
Russia Total
|
|
376,889
|
|
|
386,513 |
|
|
352,117
|
|
|
355,051 |
|
|
|
169.8
|
|
|
|
181.3 |
|
|
|
482
|
|
|
511 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tasiast |
|
111,899
|
|
|
136,770 |
|
|
106,731
|
|
|
131,705 |
|
|
|
110.3
|
|
|
|
134.0 |
|
|
|
1,033
|
|
|
1,017 |
| Chirano (100%) |
|
133,994
|
|
|
137,889 |
|
|
140,890
|
|
|
134,782 |
|
|
|
93.5
|
|
|
|
84.0 |
|
|
|
664
|
|
|
623 |
|
West Africa Total
|
|
245,893
|
|
|
274,659 |
|
|
247,621
|
|
|
266,487 |
|
|
|
203.8
|
|
|
|
218.0 |
|
|
|
823
|
|
|
818 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operations Total |
|
1,303,657
|
|
|
1,358,310 |
|
|
1,274,900
|
|
|
1,338,243 |
|
|
|
913.1
|
|
|
|
981.9 |
|
|
|
716
|
|
|
734 |
| Less Chirano non-controlling
interest (10%) |
|
(13,399
|
) |
|
(13,789 |
) |
|
(14,089
|
) |
|
(13,478 |
) |
|
|
(9.4
|
) |
|
|
(8.4 |
) |
|
|
|
|
|
|
|
Attributable Total
|
|
1,290,258
|
|
|
1,344,521 |
|
|
1,260,811
|
|
|
1,324,765 |
|
|
$ |
903.7
|
|
|
$ |
973.5 |
| | $ | 717 | | $ | 735 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Consolidated balance sheets | | | | (unaudited expressed in millions of United States dollars, except share amounts) | | | | As at | | | | | June 30 | | | December 31, | | | | | 2015 | | | 2014 | | | | | | | | | | | | | Assets | | | | | | | | | | | Current assets | | | | | | | | | | | | Cash and cash equivalents | | $ | 1,031.4 | | | $ | 983.5 | | | | | Restricted cash | | | 38.5 | | | | 41.3 | | | | | Accounts receivable and other assets | | | 194.1 | | | | 170.4 | | | | | Current income tax recoverable | | | 100.5 | | | | 115.2 | | | | | Inventories | | | 1,181.2 | | | | 1,276.7 | | | | | | 2,545.7 | | | | 2,587.1 | | | | Non-current assets | | | | | | | | | | | | Property, plant and equipment | | | 5,265.0 | | | | 5,409.4 | | | | | Goodwill | | | 162.7 | | | | 162.7 | | | | | Long-term investments | | | 99.3 | | | | 111.0 | | | | | Investments in associate and joint venture | | | 162.5 | | | | 156.8 | | | | | Other long-term assets | | | 411.8 | | | | 417.9 | | | | | Deferred tax assets | | | 62.9 | | | | 106.5 | | | Total assets | | $ | 8,709.9 | | | $ | 8,951.4 | | | | | | | | | | | | | Liabilities | | | | | | | | | | | Current liabilities | | | | | | | | | | | | Accounts payable and accrued liabilities | | $ | 390.3 | | | $ | 421.9 | | | | | Current income tax payable | | | 15.9 | | | | 19.2 | | | | | Current portion of long-term debt | | | 43.0 | | | | 60.0 | | | | | Current portion of provisions | | | 42.1 | | | | 43.1 | | | | | Current portion of unrealized fair value of derivative liabilities | | | 37.0 | | | | 60.2 | | | | | | 528.3 | | | | 604.4 | | | | Non-current liabilities | | | | | | | | | | | | Long-term debt | | | 1,987.1 | | | | 1,998.1 | | | | | Provisions | | | 799.6 | | | | 780.9 | | | | | Other long-term liabilities | | | 163.6 | | | | 207.2 | | | | | Deferred tax liabilities | | | 412.7 | | | | 469.0 | | | Total liabilities | | | 3,891.3 | | | | 4,059.6 | | | | | | | | | | | | | Equity | | | | | | | | | | | Common shareholders' equity | | | | | | | | | | | | Common share capital | | $ | 14,599.0 | | | $ | 14,587.7 | | | | | Contributed surplus | | | 235.6 | | | | 239.0 | | | | | Accumulated deficit | | | (10,027.5 | ) | | | (9,937.6 | ) | | | | Accumulated other comprehensive loss | | | (35.2 | ) | | | (46.1 | ) | | Total common shareholders' equity | | | 4,771.9 | | | | 4,843.0 | | | | Non-controlling interest | | | 46.7 | | | | 48.8 | | | Total equity | | | 4,818.6 | | | | 4,891.8 | | | Total liabilities and equity | | $ | 8,709.9 | | | $ | 8,951.4 | | | | | | | | | | | | | Common shares | | | | | | | | | | Authorized | | | Unlimited | | | | Unlimited | | | Issued and outstanding | | | 1,146,280,014 | | | | 1,144,576,474 | | | | | | | | | | | |
| | | | | Consolidated statements of operations | | | | (unaudited expressed in millions of United States dollars, except per share and share amounts) | | | | Three months ended | | | Six months ended | | | | | June 30, | | | June 30, | | | June 30, | | | June 30, | | | | | 2015 | | | 2014 | | | 2015 | | | 2014 | | | | | | | | | | | | | | | | | | | | | Revenue | | | | | | | | | | | | | | | | | | | Metal sales | | $ | 755.2 | | | $ | 911.9 | | | $ | 1,536.6 | | | $ | 1,729.3 | | | | | | | | | | | | | | | | | | | | | Cost of sales | | | | | | | | | | | | | | | | | | | Production cost of sales | | | 458.5 | | | | 525.9 | | | | 913.1 | | | | 981.9 | | | | Depreciation, depletion and amortization | | | 216.7 | | | | 215.3 | | | | 422.9 | | | | 411.7 | | | | Impairment charges | | | 24.5 | | | | - | | | | 24.5 | | | | - | | | Total cost of sales | | | 699.7 | | | | 741.2 | | | | 1,360.5 | | | | 1,393.6 | | | Gross profit | | | 55.5 | | | | 170.7 | | | | 176.1 | | | | 335.7 | | | | Other operating expense | | | 49.0 | | | | 15.3 | | | | 65.3 | | | | 33.0 | | | | Exploration and business development | | | 29.7 | | | | 29.0 | | | | 52.5 | | | | 51.7 | | | | General and administrative | | | 44.6 | | | | 46.2 | | | | 83.6 | | | | 89.4 | | | Operating earnings (loss) | | | (67.8 | ) | | | 80.2 | | | | (25.3 | ) | | | 161.6 | | | | Other income (expense) - net | | | (6.3 | ) | | | (1.1 | ) | | | (8.2 | ) | | | (7.3 | ) | | | Equity in earnings (losses) of associate and joint venture | | | 5.9 | | | | (0.7 | ) | | | 4.9 | | | | (2.0 | ) | | | Finance income | | | 2.0 | | | | 4.4 | | | | 4.2 | | | | 5.8 | | | | Finance expense | | | (23.7 | ) | | | (19.9 | ) | | | (47.7 | ) | | | (32.7 | ) | | Earnings (loss) before tax | | | (89.9 | ) | | | 62.9 | | | | (72.1 | ) | | | 125.4 | | | | Income tax recovery (expense) - net | | | 5.4 | | | | (17.2 | ) | | | (19.9 | ) | | | (48.3 | ) | | Earnings (loss) from continuing operations after tax | | | (84.5 | ) | | | 45.7 | | | | (92.0 | ) | | | 77.1 | | | Loss from discontinued operation after tax | | | - | | | | (1.9 | ) | | | - | | | | (4.1 | ) | | Net earnings (loss) | | $ | (84.5 | ) | | $ | 43.8 | | | $ | (92.0 | ) | | $ | 73.0 | | | | | | | | | | | | | | | | | | | | | Net earnings (loss) from continuing operations attributable to: | | | | | | | | | | | | | | | | | | | Non-controlling interest | | $ | (1.3 | ) | | $ | (0.3 | ) | | $ | (2.1 | ) | | $ | (0.7 | ) | | | Common shareholders | | $ | (83.2 | ) | | $ | 46.0 | | | $ | (89.9 | ) | | $ | 77.8 | | | | | | | | | | | | | | | | | | | | | | Net earnings (loss) attributable to: | | | | | | | | | | | | | | | | | | | Non-controlling interest | | $ | (1.3 | ) | | $ | (0.3 | ) | | $ | (2.1 | ) | | $ | (0.7 | ) | | | Common shareholders | | $ | (83.2 | ) | | $ | 44.1 | | | $ | (89.9 | ) | | $ | 73.7 | | | | | | | | | | | | | | | | | | | | | Earnings (loss) per share from continuing operations attributable to common shareholders | | | | | | | | | | | | | | | | | | | Basic | | $ | (0.07 | ) | | $ | 0.04 | | | $ | (0.08 | ) | | $ | 0.07 | | | | Diluted | | $ | (0.07 | ) | | $ | 0.04 | | | $ | (0.08 | ) | | $ | 0.07 | | | | | | | | | | | | | | | | | | | | | | Earnings (loss) per share attributable to common shareholders | | | | | | | | | | | | | | | | | | | Basic | | $ | (0.07 | ) | | $ | 0.04 | | | $ | (0.08 | ) | | $ | 0.06 | | | | Diluted | | $ | (0.07 | ) | | $ | 0.04 | | | $ | (0.08 | ) | | $ | 0.06 | | | | | | | | | | | | | | | | | | | | | Weighted average number of common shares outstanding (millions) | | | | | | | | | | | | | | | | | | | Basic | | | 1,146.2 | | | | 1,144.4 | | | | 1,145.7 | | | | 1,144.1 | | | | Diluted | | | 1,146.2 | | | | 1,153.9 | | | | 1,145.7 | | | | 1,152.5 | | | | | | | | | | | | | | | | | | | | |
| | | | | Consolidated statements of cash flows | | | | (unaudited expressed in millions of United States dollars) | | | | Three months ended | | | Six months ended | | | | | June 30, | | | June 30, | | | June 30, | | | June 30, | | | | | 2015 | | | 2014 | | | 2015 | | | 2014 | | | Net inflow (outflow) of cash related to the following activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Operating: | | | | | | | | | | | | | | | | | | Net earnings (loss) from continuing operations | | $ | (84.5 | ) | | $ | 45.7 | | | $ | (92.0 | ) | | $ | 77.1 | | | Adjustments to reconcile net earnings (loss) from continuing operations to net cash provided from (used in) operating activities: | | | | | | | | | | | | | | | | | | | Depreciation, depletion and amortization | | | 216.7 | | | | 215.3 | | | | 422.9 | | | | 411.7 | | | | Impairment of inventory | | | 24.5 | | | | - | | | | 24.5 | | | | - | | | | Equity in losses (earnings) of associate and joint venture | | | (5.9 | ) | | | 0.7 | | | | (4.9 | ) | | | 2.0 | | | | Non-hedge derivative (gains) losses - net | | | (1.8 | ) | | | 0.2 | | | | (0.8 | ) | | | 3.6 | | | | Share-based compensation expense | | | 4.3 | | | | 7.0 | | | | 8.9 | | | | 14.2 | | | | Finance expense | | | 23.7 | | | | 19.9 | | | | 47.7 | | | | 32.7 | | | | Deferred tax expense (recovery) | | | 12.7 | | | | (33.9 | ) | | | (17.1 | ) | | | (5.1 | ) | | | Foreign exchange losses (gains) and other | | | (28.3 | ) | | | (14.6 | ) | | | (13.0 | ) | | | (53.7 | ) | | | Changes in operating assets and liabilities: | | | | | | | | | | | | | | | | | | | | Accounts receivable and other assets | | | (29.8 | ) | | | (113.5 | ) | | | 11.0 | | | | (63.5 | ) | | | | Inventories | | | 36.5 | | | | 31.7 | | | | 87.2 | | | | 8.3 | | | | | Accounts payable and accrued liabilities | | | 28.0 | | | | 51.1 | | | | 0.4 | | | | 37.1 | | | Cash flow provided from operating activities | | | 196.1 | | | | 209.6 | | | | 474.8 | | | | 464.4 | | | | Income taxes paid | | | (28.9 | ) | | | (45.7 | ) | | | (57.5 | ) | | | (90.0 | ) | | Net cash flow of continuing operations provided from operating activities | | | 167.2 | | | | 163.9 | | | | 417.3 | | | | 374.4 | | | Net cash flow of discontinued operations used in operating activities | | | - | | | | (2.0 | ) | | | - | | | | (4.4 | ) | | | | | | | | | | | | | | | | | | | | Investing: | | | | | | | | | | | | | | | | | | | Additions to property, plant and equipment | | | (128.5 | ) | | | (120.0 | ) | | | (278.0 | ) | | | (288.9 | ) | | | Net additions to long-term investments and other assets | | | (20.0 | ) | | | (19.7 | ) | | | (41.7 | ) | | | (49.2 | ) | | | Net proceeds from the sale of property, plant and equipment | | | 1.6 | | | | 0.3 | | | | 1.9 | | | | 1.4 | | | | Decrease in restricted cash | | | 2.6 | | | | 16.6 | | | | 2.8 | | | | 15.8 | | | | Interest received and other | | | 1.0 | | | | 1.1 | | | | 2.1 | | | | 2.5 | | | Net cash flow of continuing operations used in investing activities | | | (143.3 | ) | | | (121.7 | ) | | | (312.9 | ) | | | (318.4 | ) | | Net cash flow of discontinued operations provided from investing activities | | | - | | | | - | | | | 1.0 | | | | - | | | Financing: | | | | | | | | | | | | | | | | | | | Issuance of common shares on exercise of options | | | - | | | | - | | | | - | | | | 0.1 | | | | Proceeds from issuance of debt | | | 3.0 | | | | 119.8 | | | | 22.5 | | | | 742.2 | | | | Repayment of debt | | | (3.0 | ) | | | (125.3 | ) | | | (52.5 | ) | | | (779.3 | ) | | | Interest paid | | | (2.5 | ) | | | (1.4 | ) | | | (23.5 | ) | | | (3.3 | ) | | | Settlement of derivative instruments | | | - | | | | - | | | | - | | | | (2.1 | ) | | | Other | | | (1.0 | ) | | | (0.2 | ) | | | (1.0 | ) | | | 0.2 | | | Net cash flow of continuing operations used in financing activities | | | (3.5 | ) | | | (7.1 | ) | | | (54.5 | ) | | | (42.2 | ) | | Net cash flow of discontinued operations used in financing activities | | | - | | ... |
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