Fermer X Les cookies sont necessaires au bon fonctionnement de 24hGold.com. En poursuivant votre navigation sur notre site, vous acceptez leur utilisation.
Pour en savoir plus sur les cookies...
AnglaisFrancais
Cours Or & Argent en
Dans la même rubrique

Kinross Gold Corporation

Publié le 10 mai 2016

Kinross Reports 2016 First Quarter Results

( 0 vote, 0/5 ) Imprimer l'article
  Article Commentaires Commenter Notation Suivre la société  
0
envoyer
0
commenter
Mots clés associés :   9/11 | Canada | Cash | Corruption | Diesel | Dollar | Fort Knox | Ghana | K Street | Knox | Mines | Ukraine |
Kinross Gold Corporation
News Release

Kinross Reports 2016 First Quarter Results

Production higher and cost of sales per ounce lower year-over-year
On track to meet 2016 production and cost guidance

TORONTO, ONTARIO -- (Marketwired) -- 05/10/16 -- Kinross Gold Corporation (TSX:K)(NYSE:KGC) today announced its results for the first quarter ended March 31, 2016.

(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.)

2016 first quarter highlights:

  • Production 1 : 687,463 gold equivalent ounces (Au eq. oz.), compared with 629,360 Au eq. oz. in Q1 2015.
  • Revenue: $782.6 million, compared with $781.4 million in Q1 2015.
  • Production cost of sales(2): $694 per Au eq. oz., compared with $709 in Q1 2015.
  • All-in sustaining cost 2 : $963 per Au eq. oz. sold, compared with $964 in Q1 2015. All-in sustaining cost per gold ounce (Au oz.) sold on a by-product basis was $957 in Q1 2016, compared with $957 in Q1 2015.
  • Adjusted operating cash flow 2 : $202.6 million, or $0.17 per share, compared with $214.8 million, or $0.19 per share, in Q1 2015.
  • Adjusted net earnings 2,3 : $1.4 million, or $0.00 per share, compared with adjusted net earnings of $15.3 million, or $0.01 per share, in Q1 2015.
  • Reported net loss(3): $13.9 million, or $0.01 per share, compared with a loss of $6.7 million, or $0.01 per share, in Q1 2015.
  • Outlook: Kinross expects to be within its 2016 forecast guidance for production (2.7 - 2.9 million Au eq. oz.), production cost of sales ($675 - $735 per Au eq. oz.) and all-in sustaining cost ($890 - $990 per Au eq. oz.). Capital expenditures guidance was increased to $755 million to reflect the additional $160 million expected to be spent on the Tasiast Phase One expansion.
  • Tasiast Phase One expansion: Kinross is proceeding with the Tasiast Phase One expansion, which is expected to nearly double production and reduce production cost of sales per ounce by half, at a manageable capital cost.
  • Nevada asset acquisition: Kinross closed the acquisition of Bald Mountain and 50% of Round Mountain on January 11, 2016 for $610 million, to be reduced by $22 million as a result of a working capital adjustment finalized subsequent to March 31, 2016.
  • Development projects: The Bald Mountain exploration program is progressing well and the Russia development projects - Moroshka near Kupol and September Northeast near Dvoinoye - are advancing as planned.
  • Equity financing: The Company completed a public equity offering on March 18, 2016 for net proceeds of $275.7 million to further strengthen the Company's balance sheet.

CEO Commentary

J. Paul Rollinson, President and CEO, made the following comments in relation to 2016 first quarter results:

"Kinross is off to a strong start to the year, generating solid free cash flow as our portfolio of mines continued to deliver consistent operational results in the first quarter. All-in sustaining cost is trending lower, production is higher compared with the previous quarter and year, and we are once again on track to meet our annual guidance at each of our regions and company-wide.

"We also significantly clarified our path to the future on two major fronts. At Tasiast, we are moving ahead with the Phase One expansion, which is expected to nearly double production, while reducing cost of sales significantly, at a manageable capital cost. At the same time, we completed a pre-feasibility study for a potential Phase Two expansion that would transform the operation into our largest mine, with one of the lowest costs. With the acquisition of our Nevada-based assets now complete, we are more confident in Bald Mountain's clear upside potential and expect to convert a substantial amount of the site's estimated mineral resources into mineral reserves.

"We have strongly underlined our value proposition as a large, pure gold producer. We are well levered to the gold price and have an outstanding operating record, a strong balance sheet, and attractive low-risk development projects."

Financial results
Summary of financial and operating results
Three months ended
March 31,
(in millions, except ounces, per share amounts, and per ounce amounts) 2016 2015
Operating Highlights
Total gold equivalent ounces(a)
Produced(c) 691,910 636,128
Sold(c) 664,165 641,752
Attributable gold equivalent ounces(a)
Produced(c) 687,463 629,360
Sold(c) 659,397 634,565
Financial Highlights
Metal sales $ 782.6 $ 781.4
Production cost of sales $ 462.3 $ 454.6
Depreciation, depletion and amortization $ 207.8 $ 206.2
Operating earnings $ 23.6 $ 42.5
Net loss attributable to common shareholders $ (13.9 ) $ (6.7 )
Basic loss per share attributable to common shareholders $ (0.01 ) $ (0.01 )
Diluted loss per share attributable to common shareholders $ (0.01 ) $ (0.01 )
Adjusted net earnings attributable to common shareholders (b) $ 1.4 $ 15.3
Adjusted net earnings per share(b) $ 0.00 $ 0.01
Net cash flow provided from operating activities $ 214.5 $ 250.1
Adjusted operating cash flow (b) $ 202.6 $ 214.8
Adjusted operating cash flow per share(b) $ 0.17 $ 0.19
Average realized gold price per ounce $ 1,179 $ 1,218
Consolidated production cost of sales per equivalent ounce(c) sold(b) $ 696 $ 708
Attributable(a) production cost of sales per equivalent ounce(c) sold(b) $ 694 $ 709
Attributable(a) production cost of sales per ounce sold on a by-product basis (b) $ 682 $ 696
Attributable(a) all-in sustaining cost per ounce sold on a by-product basis (b) $ 957 $ 957
Attributable(a) all-in sustaining cost per equivalent ounce(c) sold(b) $ 963 $ 964
Attributable(a) all-in cost per ounce sold on a by-product basis (b) $ 1,023 $ 1,050
Attributable(a) all-in cost per equivalent ounce(c) sold(b) $ 1,026 $ 1,054
(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 page 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 first quarter of 2016 was 79.64:1, compared with 72.91:1 for the first quarter of 2015.

The following operating and financial results are based on first-quarter 2016 gold equivalent production. Production and cost measures are on an attributable basis:

Production: Kinross produced 687,463 attributable Au eq. oz. in Q1 2016, a 9% increase compared with Q1 2015, due mainly to the acquisition of Bald Mountain and 50% of Round Mountain the Company did not already own.

Production cost of sales: Production cost of sales per Au eq. oz.2 decreased to $694 for Q1 2016, compared with $709 for the first quarter of 2015, mainly as a result of lower fuel costs, favourable foreign exchange rates and an increase in attributable Au eq. oz. sold.

Production cost of sales per Au oz. on a by-product basis2 decreased to $682 in Q1 2016, compared with $696 in Q1 2015, based on Q1 2016 attributable gold sales of 642,733 ounces and attributable silver sales of 1,327,243 ounces.

All-in sustaining cost: All-in sustaining cost per Au eq. oz. sold2 decreased to $963 in Q1 2016, compared with $964 in Q1 2015. All-in sustaining cost per Au oz. sold on a by-product basis2 was $957 in Q1 2016, compared with $957 in Q1 2015.

Average realized gold price: The average realized gold price in Q1 2016 declined to $1,179 per ounce, compared with $1,218 per ounce in Q1 2015.

Revenue: Revenue from metal sales was $782.6 million in Q1 2016, compared with $781.4 million during the same period in 2015, primarily due to an increase in gold equivalent ounces sold offset by a lower average realized gold price.

Margins: Kinross' attributable margin per Au eq. oz. sold4 was $485 per Au eq. oz. for Q1 2016, compared with a Q1 2015 margin of $509 per Au eq. oz.

Operating cash flow: Adjusted operating cash flow2 was $202.6 million, or $0.17 per share, for Q1 2016, compared with $214.8 million, or $0.19 per share, for Q1 2015.

Earnings/loss: Adjusted net earnings2,3 were $1.4 million, or $0.00 per share, for Q1 2016, compared with adjusted net earnings of $15.3 million, or $0.01 per share, for Q1 2015.

Reported net loss3 was $13.9 million, or $0.01 per share, for Q1 2016, compared with reported net loss of $6.7 million, or $0.01 per share, for Q1 2015, mainly due to a lower average gold price.

Capital expenditures: Capital expenditures decreased to $139.5 million for Q1 2016, compared with $149.5 million for the same period last year, primarily due to lower spending at Fort Knox.

Operating results

Mine-by-mine summaries for 2016 first-quarter operating results may be found on pages eight and 12 of this news release. Highlights include the following:

Americas

The region's first quarter performance was strong, with higher production and lower cost of sales compared with the prior quarter and year-over-year. At Fort Knox, production was in line with Q4 2015 and increased compared with Q1 2015 as mild weather conditions had a positive seasonal impact on mining operations and the heap leach. Cost of sales per ounce increased compared with Q1 2015 mainly due to increased reagent usage and more labour needed as a result of placing more tonnes on the heap leach pads. Kettle River-Buckhorn performed well as it nears the end of its mine life, with production increasing quarter-over-quarter mainly due to more tonnes processed through the mill, and year-over-year mainly due to higher grades. Cost of sales per ounce decreased compared with Q1 2015 largely due to a decrease in contractor and fuel costs. Kettle River-Buckhorn now expects to continue mining until the end of the year, as test drilling in perimeter holes around the site has uncovered more ounces.

With the completion of the Nevada acquisition on January 11, 2016, Bald Mountain and the 50% of Round Mountain Kinross did not previously own were integrated into the Company's portfolio. At Round Mountain, production increased mainly as a result of the acquisition of the remaining 50% and higher mill grades. Cost of sales per ounce decreased compared with Q1 2015 largely due to higher grades and increased recovery. At Bald Mountain, exploration continued as planned, and further work has begun to realize the site's full potential. Production was lower than expected mainly due to a higher than anticipated level of stripping from the adopted mine plan, harsh winter conditions during the quarter and the replenishment of ADR plant inventory. The Company expects site performance to improve in the second half of the year. After the planned stripping campaign is completed this year, the Company expects the site to substantially increase production, and reduce costs in 2017.

Paracatu's production decreased compared with Q1 2015 mainly due to lower mill throughput and recoveries, but increased compared with the previous quarter due to a partial curtailment of milling activities in Q4 2015 as a result of reduced rainfall in the area. Paracatu's Santo Antonio tailing reprocessing initiative is now on track, producing approximately 13,400 Au eq. oz. in the quarter. To reduce water usage, tailings are now being hauled for reprocessing, rather than hydro-pumping. Cost of sales decreased compared with Q4 2015 and Q1 2015 primarily due to increased exposure to favourable foreign exchange rates in 2016. At Maricunga, production was slightly higher quarter-over-quarter and year-over-year mainly due to an increase in ore processed on the heap leach pads. Cost of sales per ounce decreased compared with Q1 2015 mainly due to favourable exchange rates.

Russia

Kupol and Dvoinoye continued with consistent and strong performance in the first quarter, increasing production and decreasing the cost of sales per ounce compared with Q4 2015 and Q1 2015. The production increase was mainly the result of mining a higher grade zone during the quarter. Approximately 93,300 Au eq. oz. were produced from processing Dvoinoye ore in Q1 2016. Cost of sales per ounce was at its lowest level in more than four years. The decrease, compared with Q4 2015 and Q1 2015, was mainly a result of favourable foreign exchange rates and higher grades.

West Africa

At Tasiast, production was lower compared with Q4 2015 and Q1 2015 as a result of mine sequencing and lower grades. Cost of sales per ounce was lower year-over-year mainly as a result of a decrease in fuel and labour costs and less reagent consumption. The site's throughput rate continues to benefit from improvements made to fragmentation of blasted ore from the pit and its crushing and grinding circuits. During the quarter, throughput averaged more than 8,000 tonnes per day (tpd), compared with an average of 7,500 tpd in Q4 2015.

In the context of ongoing collective agreement negotiations, on May 10, 2016, the union at Tasiast served notice of intention to strike with effect on May 24, 2016. The notice is not unexpected and regional management remains available to meet with the union.

At Chirano, production was lower compared with Q4 2015 and Q1 2015 as the site continued to transition from mining the Akwaaba deposit to the Paboase deposit, which resulted in fewer tonnes mined and lower grades. Cost of sales per ounce increased compared with Q1 2015 mainly as a result of higher power costs and lower ounces produced. The Company expects performance to improve in the third quarter.

Organic development projects

The Tasiast Phase One expansion is progressing well, with work commencing this month. Engineering and procurement is 55% complete, major earthworks are scheduled to begin in June and the start of the project's first substantial construction activity is planned for August. The project remains on track, with full production expected by the end of Q1 2018.

The Bald Mountain exploration program, which is focused on targets in the footprint of active mining areas, is progressing well. The new exploration team has two rigs on site, and has drilled approximately 9,000 metres since the close of the acquisition, mostly in the Saga, Top and Redbird pits in the 100% Kinross-owned North area. Results are encouraging as the team continues to develop a better geological understanding of the property. The Company remains confident in the upside potential at this prospective property, and expects to convert a substantial amount of the site's estimated mineral resources into mineral reserves over the next few years. The permitting process to expand exploration and mining activities is expected to be completed in mid-2016.

Kinross' Russian development projects continue to advance as planned. At the Moroshka project, located approximately four kilometres east of Kupol, construction of an ore haulage road is now underway and is expected to be completed in June. The Company expects to commence mining in 2018 to process ore in the Kupol mill. At September Northeast, located approximately 15 km northwest of Dvoinoye, a haulage road to the site has been completed and a camp facility constructed. Site preparation is expected to be completed by the fourth quarter with mining on track to commence in late 2017.

At the La Coipa Phase 7 project, Kinross continues to advance permitting efforts, including recently obtaining approval for an exploration DIA (Declaration of Impact to Environment) permit. Exploration drilling is planned for several targets in 2016, including Catalina, which is located less than one kilometre southeast of the Phase 7 deposit.

Maricunga update

In setting its strategic business priorities, Kinross has been assessing the Maricunga mine plan in the context of disciplined capital allocation and a focus on quality ounces over quantity. After taking into consideration Maricunga's cost position and future capital needs, as well as other capital priorities in its global portfolio, Kinross is contemplating a potential suspension of mining activities by the end of October, subject to regulatory processes. Should the Company proceed with this suspension, heap leach rinsing is expected to continue at Maricunga for approximately three years. Total production expected from the heap during the three years of rinsing is expected to be approximately 100,000 Au eq. oz.

The Company will continue to review the operation's mine plan, evaluate its estimated mineral reserve and mineral resource base and explore further permitting needs.

The Maricunga mine produced 212,155 gold equivalent ounces during 2015 at production cost of sales of $1,010 per equivalent ounce. At December 31, 2015, the Maricunga mine had estimated proven and probable mineral reserves of 1.042 million ounces, estimated measured and indicated mineral resources of 4.275 million ounces and estimated inferred mineral resources of 1.053 million ounces. The mineral reserve estimates were prepared using a $1,200 per ounce gold price, and the mineral resource estimates were prepared using a $1,400 per ounce gold price5.

As previously announced on March 18, 2016, the Company received notification from Chile's environmental regulatory authority (SMA) of a resolution commencing a legal process that will seek the closure of Maricunga's water pumping wells. Kinross vigorously opposes the resolution and has filed an administrative appeal with the SMA on the basis that a complete stoppage of water use would be both legally and technically flawed and would have serious environmental, health and safety consequences. The appeal process may impact the timing of any proposed future suspension.

On May 2, 2016, the SMA imposed a 15-day water curtailment order. In response, the Maricunga mine has temporarily suspended mining and crushing activities for the duration of the order. This temporary suspension is not expected to impact the Company's regional production and cost guidance.

Balance sheet

As of March 31, 2016, Kinross had cash and cash equivalents of $750.4 million, a decrease of $293.5 million since December 31, 2015, mainly as a result of the $610.0 million acquisition of the Bald Mountain mine and the remaining 50% interest in the Round Mountain mine, partially offset by net proceeds of $275.7 million from the equity issuance and cash flow generated in the first quarter. The Company also had available credit of $1,506.0 million as of March 31, 2016 for total liquidity of approximately $2.3 billion.

The Company expects that its existing liquidity sources will be sufficient to fund the Tasiast Phase One expansion and the repayment of $250 million in senior notes due in September. Kinross has no other debt maturities until 2019.

Equity financing

During the first quarter, Kinross completed a public offering, issuing 95,910,000 common shares of Kinross, including 12,510,000 common shares issued to the underwriters on the exercise of their over-allotment option. The transaction was completed on March 18, 2016 and the Company received net proceeds of $275.7 million from the offering.

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.

As previously announced on February 10, 2016, Kinross expects to produce approximately 2.7 - 2.9 million Au eq. oz. for the year and expects to be within its regional production guidance ranges.

The Company expects to be within its regional production cost of sales guidance ranges, its company-wide production cost of sales guidance range of $675 - $735 per Au eq. oz., and its all-in sustaining cost guidance range of $890 - $990 per Au eq. oz. sold in 2016. The Company also expects to meet its revised 2016 capital expenditure forecast of approximately $755 million.

Conference call details

In connection with the release, Kinross will hold a conference call and audio webcast on Wednesday, May 11, 2016 at 7:45 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 - 00432 followed by #.

Outside of Canada & US - 1-604-638-9010; Passcode - 00432 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.

Kinross' Annual Shareholders Meeting will be held on Wednesday, May 11, 2016 at 10:00 a.m. ET at the Glenn Gould Studio, 250 Front Street West, Toronto, Ontario, Canada. A live audio webcast (listen-only mode) of the Annual Meeting will be available at www.kinross.com and will also be archived for later access.

This news release should be read in conjunction with Kinross' 2016 first-quarter unaudited Financial Statements and Management's Discussion and Analysis report at www.kinross.com. Kinross' 2016 first-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. Our focus is on delivering value based on the core principles of operational excellence, balance sheet strength, disciplined growth and responsible mining. Kinross maintains listings on the Toronto Stock Exchange (symbol:K) and the New York Stock Exchange (symbol:KGC).

Review of operations
Three months ended March 31, Gold equivalent ounces
Production cost of Production cost of
Produced Sold sales ($millions) sales/equivalent ounce sold
2016 2015 2016 2015 2016 2015 2016 2015
Fort Knox 87,800 82,673 87,889 82,003 $ 62.2 $ 55.1 $ 708 $ 672
Round Mountain 92,926 40,262 90,474 40,447 65.0 36.0 718 890
Bald Mountain 20,422 - 11,197 - 13.1 - 1,170 -
Kettle River - Buckhorn 28,312 24,265 28,264 24,167 22.2 24.3 785 1,006
Paracatu 119,376 124,685 117,090 124,929 79.9 93.9 682 752
Maricunga 59,076 56,822 57,490 54,376 47.3 56.0 823 1,030
Americas Total 407,912 328,707 392,404 325,922 289.7 265.3 738 814
Kupol 192,450 185,729 175,691 192,167 78.2 91.5 445 476
Russia Total 192,450 185,729 175,691 192,167 78.2 91.5 445 476
Tasiast 47,078 54,009 48,391 51,790 47.2 51.9 975 1,002
Chirano (100%) 44,470 67,683 47,679 71,873 47.2 45.9 990 639
West Africa Total 91,548 121,692 96,070 123,663 94.4 97.8 983 791
Operations Total 691,910 636,128 664,165 641,752 462.3 454.6 696 708
Less Chirano non-controlling interest (10%) (4,447 ) (6,768 ) (4,768 ) (7,187 ) (4.7 ) (4.6 )
Attributable Total 687,463 629,360 659,397 634,565 $ 457.6 $ 450.0 $ 694 $ 709
Consolidated balance sheets
(unaudited expressed in millions of United States dollars, except share amounts)
As at
March 31 December 31,
2016 2015
Assets
Current assets
Cash and cash equivalents $ 750.4 $1,043.9
Restricted cash 10.9 10.5
Accounts receivable and other assets 107.5 108.2
Current income tax recoverable 125.9 123.3
Inventories 1,165.6 1,005.2
Unrealized fair value of derivative assets 11.5 1.0
2,171.8 2,292.1
Non-current assets
Property, plant and equipment 5,057.2 4,593.7
Goodwill 162.7 162.7
Long-term investments 109.6 83.1
Investments in associate and joint venture 157.9 157.1
Other long-term assets 393.7 370.2
Deferred tax assets 80.0 76.5
Total assets $ 8,132.9 $7,735.4
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 351.5 $379.6
Current income tax payable 18.3 6.4
Current portion of long-term debt 249.7 249.5
Current portion of provisions 51.0 50.3
Current portion of unrealized fair value of derivative liabilities 3.7 16.0
674.2 701.8
Non-current liabilities
Long-term debt 1,732.5 1,731.9
Provisions 848.5 720.8
Other long-term liabilities 168.9 148.7
Deferred tax liabilities 474.0 499.0
Total liabilities 3,898.1 3,802.2
Equity
Common shareholders' equity
Common share capital $ 14,889.5 $14,603.5
Contributed surplus 231.2 239.2
Accumulated deficit (10,936.0 ) (10,922.1 )
Accumulated other comprehensive income (loss) 7.6 (31.3 )
Total common shareholders' equity 4,192.3 3,889.3
Non-controlling interest 42.5 43.9
Total equity 4,234.8 3,933.2
Total liabilities and equity $ 8,132.9 $7,735.4
Common shares
Authorized Unlimited Unlimited
Issued and outstanding 1,244,137,896 1,146,540,188
Consolidated statements of operations
(unaudited expressed in millions of United States dollars, except per share and share amounts)
Three months ended
March 31, March 31,
2016 2015
Revenue
Metal sales $ 782.6 $ 781.4
Cost of sales
Production cost of sales 462.3 454.6
Depreciation, depletion and amortization 207.8 206.2
Total cost of sales 670.1 660.8
Gross profit 112.5 120.6
Other operating expense 33.9 16.3
Exploration and business development 16.7 22.8
General and administrative 38.3 39.0
Operating earnings 23.6 42.5
Other income (expense) - net 8.1 (1.9 )
Equity in earnings (losses) of associate and joint venture 0.2 (1.0 )
Finance income 1.6 2.2
Finance expense (33.2 ) (24.0 )
Earnings before tax 0.3 17.8
Income tax expense - net (15.6 ) (25.3 )
Net loss $ (15.3 ) $ (7.5 )
Net loss attributable to:
Non-controlling interest $ (1.4 ) $ (0.8 )
Common shareholders $ (13.9 ) $ (6.7 )
Loss per share attributable to common shareholders
Basic $ (0.01 ) $ (0.01 )
Diluted $ (0.01 ) $ (0.01 )
Weighted average number of common shares outstanding (millions)
Basic 1,173.6 1,145.1
Diluted 1,173.6 1,145.1
Consolidated statements of cash flows
(unaudited expressed in millions of United States dollars)
Three months ended
March 31, March 31,
2016 2015
Net inflow (outflow) of cash related to the following activities:
Operating:
Net loss $ (15.3 ) $ (7.5 )
Adjustments to reconcile net earnings (loss) to net cash provided from operating activities:
Depreciation, depletion and amortization 207.8 206.2
Equity in (earnings) losses of associate and joint venture (0.2 ) 1.0
Non-hedge derivative (gains) losses - net (5.5 ) 1.0
Share-based compensation expense 3.8 4.6
Finance expense 33.2 24.0
Deferred tax recovery (31.9 ) (29.8 )
Foreign exchange losses and other Changes in operating assets and liabilities: 10.7 15.3
Accounts receivable and other assets (0.2 ) 40.8
Inventories 37.1 50.7
Accounts payable and accrued liabilities 15.1 (27.6 )
Cash flow provided from operating activities 254.6 278.7
Income taxes paid (40.1 ) (28.6 )
Net cash flow provided from operating activities 214.5 250.1
Investing:
Additions to property, plant and equipment (139.5 ) (149.5 )
Business acquisitions (610.0 ) -
Net additions to long-term investments and other assets (11.1 ) (21.7 )
Net proceeds from the sale of property, plant and equipment 4.4 1.3
Decrease (increase) in restricted cash (0.4 ) 0.2
Interest received and other 0.6 1.1
Net cash flow used in investing activities (756.0 ) (168.6 )
Financing:
Proceeds from issuance of equity 275.7 -
Proceeds from issuance of debt - 19.5
Repayment of debt - (49.5 )
Interest paid (29.6 ) (21.0 )
Net cash flow provided from (used in) financing activities 246.1 (51.0 )
Effect of exchange rate changes on cash and cash equivalents 1.9 (3.5 )
Increase (decrease) in cash and cash equivalents (293.5 ) 27.0
Cash and cash equivalents, beginning of period 1,043.9 983.5
Cash and cash equivalents, end of period $ 750.4 $ 1,010.5
Operating Summary
Mine Period Ownership Tonnes Ore Mined (1)
Ore
Processed (Milled)
(1)
Ore
Processed (Heap Leach)
(1)
Grade (Mill) Grade (Heap Leach) Recovery
(2)
Gold Eq Production
(5)
Gold Eq Sales (5) Production cost
of sales
Production cost
of sales/oz
Cap Ex (7) DD&A
(%) ('000 tonnes) ('000 tonnes) ('000 tonnes) (g/t) (g/t) (%) (ounces) (ounces) ($ millions) ($/ounce) ($ millions) ($ millions)
Americas Fort Knox Q1 2016 100 6,786 3,246 7,495 0.66 0.26 81 % 87,800 87,889 $ 62.2 $ 708 $ 18.0 $ 23.5
Q4 2015 100 4,454 3,407 6,712 0.66 0.26 82 % 87,561 87,426 62.6 716 35.3 31.7
Q3 2015 100 5,950 3,328 6,697 0.86 0.27 83 % 115,258 118,978 66.2 556 37.4 36.8
Q2 2015 100 6,543 3,345 8,255 0.87 0.28 84 % 116,061 113,697 68.9 606 26.7 37.2
Q1 2015 100 5,814 3,366 3,554 0.64 0.29 82 % 82,673 82,003 55.1 672 41.4 24.6
Round Mountain Q1 2016 100 (8 ) 4,018 869 3,617 1.17 0.44 83 % 92,926 90,474 $ 65.0 $ 718 $ 16.3 $ 27.2
Q4 2015 50 6,392 898 3,724 0.86 0.42 77 % 51,034 52,882 37.0 700 14.2 11.0
Q3 2015 50 6,962 924 4,546 0.91 0.47 81 % 58,074 54,559 37.5 687 12.3 12.9
Q2 2015 50 5,286 748 4,372 1.08 0.40 75 % 48,448 47,893 36.4 760 10.8 12.0
Q1 2015 50 7,494 146 6,726 0.65 0.40 67 % 40,262 40,447 36.0 890 11.2 9.0
Bald Mountain (8) Q1 2016 100 1,766 - 1,766 - 0.62 nm 20,422 11,197 $ 13.1 $ 1,170 $ 1.7 $ 5.5
Kettle River- Buckhorn Q1 2016 100 86 107 - 7.23 - 92 % 28,312 28,264 $ 22.2 $ 785 $ - $ 1.4
Q4 2015 100 84 90 - 9.67 - 92 % 19,301 19,601 14.6 745 - 2.0
Q3 2015 100 97 106 - 6.93 - 92 % 24,222 24,284 19.3 795 - 2.6
Q2 2015 100 95 130 - 8.58 - 93 % 29,580 29,524 23.4 793 - 3.3
Q1 2015 100 93 111 - 6.02 - 91 % 24,265 24,167 24.3 1,006 0.6 4.1
Paracatu Q1 2016 100 11,825 11,439 - 0.44 - 73 % 119,376 117,090 $ 79.9 $ 682 $ 10.7 $ 35.4
Q4 2015 100 10,730 9,738 - 0.51 - 76 % 113,547 117,796 89.2 757 30.1 34.9
Q3 2015 100 13,969 12,322 - 0.43 - 76 % 129,064 134,838 100.7 747 36.9 38.4
Q2 2015 100 11,435 11,392 - 0.41 - 72 % 110,366 107,169 90.5 844 29.4 36.4
Q1 2015 100 11,616 11,825 - 0.43 - 77 % 124,685 124,929 93.9 752 16.3 37.8
Maricunga (8) Q1 2016 100 3,947 - 4,254 - 0.69 nm 59,076 57,490 $ 47.3 $ 823 $ 0.8 $ 10.8
Q4 2015 100 3,870 - 4,099 - 0.78 nm 54,948 56,440 52.6 932 4.7 8.2
Q3 2015 100 3,476 - 3,822 - 0.74 nm 52,672 52,282 52.5 1,004 5.2 7.3
Q2 2015 100 2,220 - 1,957 - 0.81 nm 47,713 50,957 55.0 1,079 7.1 6.4
Q1 2015 100 2,695 - 2,912 - 0.69 nm 56,822 54,376 56.0 1,030 7.5 5.4
Russia Kupol
(3)(4)(6)
Q1 2016 100 494 416 - 13.92 - 95 % 192,450 175,691 $ 78.2 $ 445 $ 27.8 $ 52.9
Q4 2015 100 449 429 - 13.81 - 96 % 191,308 195,465 91.3 467 9.0 73.8
Q3 2015 100 468 410 - 13.65 - 96 % 190,366 217,031 101.7 469 21.4 77.3
Q2 2015 100 516 423 - 13.43 - 95 % 191,160 159,950 78.3 490 10.0 56.3
Q1 2015 100 464 418 - 13.20 - 95 % 185,729 192,167 91.5 476 15.5 63.9
West Africa Tasiast Q1 2016 100 1,891 777 1,187 1.51 0.41 91 % 47,078 48,391 $ 47.2 $ 975 $ 49.9 $ 22.7
Q4 2015 100 1,318 689 587 2.27 0.55 89 % 53,706 52,146 49.9 957 49.6 26.5
Q3 2015 100 1,259 618 364 2.21 0.48 92 % 53,440 57,163 60.4 1,057 44.1 19.5
Q2 2015 100 1,609 605 521 2.21 0.56 92 % 57,890 54,941 58.4 1,063 31.1 18.7
Q1 2015 100 1,009 630 66 2.00 0.97 89 % 54,009 51,790 51.9 1,002 36.4 16.2
Chirano - 100% Q1 2016 90 453 847 - 1.77 - 91 % 44,470 47,679 $ 47.2 $ 990 $ 11.7 $ 25.7
Q4 2015 90 559 853 - 2.32 - 91 % 58,123 56,284 42.2 750 11.6 44.1
Q3 2015 90 873 917 - 2.36 - 91 % 63,981 62,792 44.0 701 6.7 42.7
Q2 2015 90 875 823 - 2.73 - 92 % 66,311 69,017 47.6 690 4.9 44.6
Q1 2015 90 739 899 - 2.62 - 89 % 67,683 71,873 45.9 639 7.3 43.6
Chirano - 90% Q1 2016 90 453 847 - 1.77 - 91 % 40,023 42,911 $ 42.5 $ 990 $ 10.5 $ 23.1
Q4 2015 90 559 853 - 2.32 - 91 % 52,311 50,655 38.0 750 10.4 39.7
Q3 2015 90 873 917 - 2.36 - 91 % 57,583 56,513 39.6 701 6.0 38.4
Q2 2015 90 875 823 - 2.73 - 92 % 59,680 62,115 42.8 689 4.4 40.1
Q1 2015 90 739 899 - 2.62 - 89 % 60,915 64,686 41.3 638 6.6 39.2
(1) Tonnes of ore mined and processed represent 100% Kinross for all periods presented.
(2) Due to the nature of heap leach operations, recovery rates at Maricunga and Bald Mountain cannot be accurately measured on a quarterly basis. Recovery rates at Fort Knox, Round Mountain and Tasiast represent mill recovery only.
(3) The Kupol segment includes the Kupol and Dvoinoye mines.
(4) Kupol silver grade and recovery were as follows: Q1 (2016) 104.19 g/t, 88%; Q4 (2015) 100.58 g/t, 87%; Q3 (2015) 100.55 g/t, 88%; Q2 (2015) 106.19 g/t, 87%; Q1 (2015) 95.64 g/t, 85.3%.
(5) Gold equivalent ounces include silver ounces produced and sold converted to a gold equivalent based on the ratio of the average spot market prices for the commodities for each period. The ratios for the quarters presented are as follows: Q1 2016: 79.64:1; Q4 2015: 74.78:1; Q3 2015: 75.40:1, Q2 2015: 72.75:1, Q1 2015: 72.91:1.
(6) Dvoinoye ore processed and grade were as follows: Q1 (2016) 129,675 tonnes, 22.69 g/t; Q4 (2015) 122,987 tonnes, 22.91 g/t; Q3 (2015) 111,806 tonnes, 24.52 g/t; Q2 (2015) 104,465 tonnes, 26.43 g/t; Q1 (2015) 93,000 tonnes, 27.40 g/t.
(7) Capital expenditures are presented on a cash basis, consistent with the statement of cash flows.
(8) On January 11, 2016, Kinross completed the acquisition of 100% of the Bald Mountain gold mine and the remaining 50% interest in the Round Mountain gold mine.

Reconciliation of non-GAAP financial measures

The Company has included certain non-GAAP financial measures in this document. These measures are not defined under IFRS and should not be considered in isolation. The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. The inclusion of these measures is meant to provide additional information and should not be used as a substitute for performance measures prepared in accordance with IFRS. These measures are not necessarily standard and therefore may not be comparable to other issuers.

Adjusted net earnings attributable to common shareholders and adjusted net earnings per share are non-GAAP measures which determine the performance of the Company, excluding certain impacts which the Company believes are not reflective of the Company's underlying performance for the reporting period, such as the impact of foreign exchange gains and losses, reassessment of prior year taxes and/or taxes otherwise not related to the current period, impairment charges, gains and losses and other one-time costs related to acquisitions, dispositions and other transactions, and non-hedge derivative gains and losses. Although some of the items are recurring, the Company believes that they are not reflective of the underlying operating performance of its current business and are not necessarily indicative of future operating results. Management believes that these measures, which are used internally to assess performance and in planning and forecasting future operating results, provide investors with the ability to better evaluate underlying performance, particularly since the excluded items are typically not included in public guidance. However, adjusted net earnings and adjusted net earnings per share measures are not necessarily indicative of net earnings and earnings per share measures as determined under IFRS.

The following table provides a reconciliation of net earnings to adjusted net earnings for the periods presented:

Adjusted Earnings
(in millions, except share and per share amounts) Three months ended
March 31
2016 2015
Net earnings (loss) attributable to common shareholders - as reported $ (13.9 ) $ (6.7 )
Adjusting items:
Foreign exchange losses 2.8 1.0
Non-hedge derivatives losses (gains) - net of tax (6.6 ) 2.0
Losses (gains) on sale of other assets - net of tax (3.5 ) 0.9
Foreign exchange losses (gains) on translation of tax basis and foreign exchange on
deferred income taxes within income tax expense (6.2 ) 17.7
Nevada acquisition costs 7.6 -
Taxes in respect of prior years 21.2 0.4
15.3 22.0
Adjusted net earnings attributable to common shareholders $ 1.4 $ 15.3
Weighted average number of common shares outstanding - Basic 1,173.6 1,145.1
Adjusted net earnings per share $ 0.00 $ 0.01

The Company makes reference to a non-GAAP measure for adjusted operating cash flow and adjusted operating cash flow per share. Adjusted operating cash flow is defined as cash flow from operations excluding certain impacts which the Company believes are not reflective of the Company's regular operating cash flow, and excluding changes in working capital. Working capital can be volatile due to numerous factors, including the timing of tax payments, and in the case of Kupol, a build-up of inventory due to transportation logistics. The Company uses adjusted operating cash flow internally as a measure of the underlying operating cash flow performance and future operating cash flow-generating capability of the Company. However, adjusted operating cash flow and adjusted operating cash flow per share measures are not necessarily indicative of net cash flow from operations as determined under IFRS.

The following table provides a reconciliation of adjusted operating cash flow for the periods presented:

Adjusted Operating Cash
Flow
(in millions, except share and per share amounts) Three months ended
March 31
2016 2015
Net cash flow provided from operating activities - as reported $ 214.5 $ 250.1
Adjusting items:
Working capital changes:
Accounts receivable and other assets 0.2 (40.8 )
Inventories (37.1 ) (50.7 )
Accounts payable and other liabilities, including taxes 25.0 56.2
(11.9 ) (35.3 )
Adjusted operating cash flow $ 202.6 $ 214.8
Weighted average number of common shares outstanding - Basic 1,173.6 1,145.1
Adjusted operating cash flow per share $ 0.17 $ 0.19

Consolidated production cost of sales per gold equivalent ounce sold is a non-GAAP measure and is defined as production cost of sales as per the consolidated financial statements divided by the total number of gold equivalent ounces sold. This measure converts the Company's non-gold production into gold equivalent ounces and credits it to total production.

Attributable production cost of sales per gold equivalent ounce sold is a non-GAAP measure and is defined as attributable production cost of sales divided by the attributable number of gold equivalent ounces sold. This measure converts the Company's non-gold production into gold equivalent ounces and credits it to total production.

Management uses these measures to monitor and evaluate the performance of its operating properties. The following table presents a reconciliation of consolidated and attributable production cost of sales per equivalent ounce sold for the periods presented:

Consolidated and Attributable
Production Cost of Sales Per
Equivalent Ounce Sold
Three months ended
(in millions, except ounces and production cost of sales per equivalent ounce) March 31
2016 2015
Production cost of sales - as reported $ 462.3 $ 454.6
Less: portion attributable to Chirano non-controlling interest (4.7 ) (4.6 )
Attributable production cost of sales $ 457.6