Adjusted net earnings4, 5 increase 16% Board approves Dvoinoye feasibility study
Toronto, Ontario – May 8, 2012 – Kinross Gold Corporation (TSX: K, NYSE: KGC) today announced its results for the first quarter ended March 31, 2012. (This news release contains forward-looking information that is subject to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located on page seven of this news release. All dollar amounts in this news release are expressed in U.S. dollars, unless otherwise noted.) Financial and operating highlights: • Production1: 604,247 gold equivalent ounces, a 6% decrease over Q1 2011. • Revenue: $1,036.6 million, an 11% increase over Q1 2011. • Production cost of sales2: $742 per gold equivalent ounce, compared with $545 in Q1 2011. • Attributable margin3: $902 per ounce sold, a 15% increase over Q1 2011. • Adjusted operating cash flow4: $339.7 million, a 14% decrease over Q1 2011. Adjusted operating cash flow per share was $0.30, compared with $0.35 in Q1 2011. • Adjusted net earnings4, 5: $203.1 million, a 16% increase over Q1 2011. Adjusted net earnings per share were $0.18, compared with $0.15 in Q1 2011. • Reported net earnings5: $105.7 million, or $0.09 per share, compared with $250.1 million, or $0.22 per share, for Q1 2011. • Outlook: The Company expects to be within its 2012 forecast guidance for production (2.6–2.8 million attributable gold equivalent ounces) and production cost of sales ($670–715 per gold equivalent ounce). Growth projects: • Kinross continues to advance its capital and project optimization process, with Tasiast and Dvoinoye as key development priorities. • Mining activity at Tasiast has accelerated, and infrastructure development for an expanded operation is proceeding on schedule. Work towards identifying an optimum processing approach for the next phase of the expansion project remains on plan. Exploration activity has transitioned fully to step-out and district drilling. • The Dvoinoye feasibility study was completed on schedule and the Board has approved full construction funding. The mine is expected to produce approximately 1,000 tonnes of ore per day to be shipped to the Kupol mill, which will be upgraded to process approximately 4,500 tonnes per day. Gold equivalent production from Dvoinoye ore for the first three full years is expected to average approximately 215,000–250,000 ounces, providing total expected production from Kupol of approximately 650,000–700,000 ounces. The project is on schedule to deliver first ore to the Kupol mill in the second half of 2013.