U.S. Markets close in 1 hr 2 mins

Kinross Reports 2016 Second-Quarter Results

TORONTO, ON--(Marketwired - July 27, 2016) - Kinross Gold Corporation (TSX:K.TO) (KGC) today announced its results for the second quarter ended June 30, 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 17 of this release. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.)

2016 second quarter highlights:

  • Production1: 671,267 gold equivalent ounces (Au eq. oz.), compared with 660,898 Au eq. oz. in Q2 2015.
  • Revenue: $876.4 million, compared with $755.2 million in Q2 2015.
  • Production cost of sales2: $731 per Au eq. oz., compared with $724 in Q2 2015.
  • All-in sustaining cost2: $988 per Au eq. oz. sold, compared with $1,011 in Q2 2015. All-in sustaining cost per gold ounce (Au oz.) sold on a by-product basis was $976 in Q2 2016, compared with $1,006 in Q2 2015.
  • Adjusted operating cash flow2: $187.2 million, or $0.15 per share, compared with $161.4 million, or $0.14 per share, in Q2 2015.
  • Adjusted net loss2,3: $9.8 million, or $0.01 per share, compared with adjusted net loss of $13.6 million, or $0.01 per share, in Q2 2015.
  • Reported net loss3: $25.0 million, or $0.02 per share, compared with a loss of $83.2 million, or $0.07 per share, in Q2 2015.
  • Balance sheet: Increased cash and cash equivalents to $968.2 million, adding $217.8 million during the quarter, with total liquidity of approximately $2.5 billion.
  • Average realized gold price: $1,266 per ounce, compared with $1,194 per ounce in Q2 2015.
  • Tasiast update: Kinross has resolved the expatriate work permit issue with the Government of Mauritania and expects to resume normal operations in August 2016.
  • Outlook: Kinross expects to be within its 2016 guidance range 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.).

CEO Commentary

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

"Kinross generated robust free cash flow of more than $200 million4 from its operations and ended the second quarter with approximately $970 million in cash and cash equivalents. We remain on track to be within our full-year guidance range for both production and cost of sales as strong production from Russia and North America offset temporary production curtailments at Tasiast and Maricunga.

"Maricunga resumed operations in early July, subject to ongoing regulatory proceedings, while at Tasiast, we expect to resume normal operations in August. We have resolved the expatriate work permit issue with the Government of Mauritania as part of an agreed 'Mauritanization' plan to increase the number of skilled local workers at Tasiast. The required plan is an important milestone for the country and is a positive example of the ongoing partnership between the Government and Kinross.

"Our continued focus on cost management and capital discipline, combined with our high leverage to stronger gold prices, help to ensure we maximize cash generation. With an excellent balance sheet, financial flexibility, a diverse portfolio of producing mines and high-quality development projects, we remain well positioned to deliver value now and for the future."

   
Financial results  
Summary of financial and operating results
 
   
    Three months ended     Six months ended  
    June 30,     June 30,  
(in millions, except ounces, per share amounts, and per ounce amounts)   2016     2015     2016   2015  
Operating Highlights                              
Total gold equivalent ounces(a)                              
  Produced(c)     675,623       667,529       1,367,533     1,303,657  
  Sold(c)     690,983       633,148       1,355,148     1,274,900  
                               
Attributable gold equivalent ounces(a)                              
  Produced(c)     671,267       660,898       1,358,730     1,290,258  
  Sold(c)     686,752       626,246       1,346,149     1,260,811  
                               
Financial Highlights                              
Metal sales   $ 876.4     $ 755.2     $ 1,659.0   $ 1,536.6  
Production cost of sales   $ 506.7     $ 458.5     $ 964.4   $ 913.1  
Depreciation, depletion and amortization   $ 210.2     $ 216.7     $ 403.4   $ 422.9  
Impairment charges   $ -     $ 24.5     $ -   $ 24.5  
Operating earnings (loss)   $ 69.2     $ (67.8 )   $ 112.0   $ (25.3 )
Net earnings (loss) attributable to common shareholders   $ (25.0 )   $ (83.2 )   $ 10.0   $ (89.9 )
Basic earnings (loss) per share attributable to common shareholders   $ (0.02 )   $ (0.07 )   $ 0.01   $ (0.08 )
Diluted earnings (loss) per share attributable to common shareholders   $ (0.02 )   $ (0.07 )   $ 0.01   $ (0.08 )
Adjusted net earnings (loss) attributable to common shareholders(b)   $ (9.8 )   $ (13.6 )   $ 11.4   $ 1.7  
Adjusted net earnings (loss) per share(b)   $ (0.01 )   $ (0.01 )   $ 0.01   $ 0.00  
Net cash flow provided from operating activities   $ 315.9     $ 167.2     $ 530.4   $ 417.3  
Adjusted operating cash flow(b)   $ 187.2     $ 161.4     $ 394.8   $ 376.2  
Adjusted operating cash flow per share(b)   $ 0.15     $ 0.14     $ 0.33   $ 0.33  
Average realized gold price per ounce   $ 1,266     $ 1,194     $ 1,223   $ 1,206  
Consolidated production cost of sales per equivalent ounce(c) sold(b)   $ 733     $ 724     $ 712   $ 716  
Attributable(a) production cost of sales per equivalent ounce(c) sold(b)   $ 731     $ 724     $ 709   $ 717  
Attributable(a) production cost of sales per ounce sold on a by-product basis(b)   $ 711     $ 712     $ 693   $ 704  
Attributable(a) all-in sustaining cost per ounce sold on a by-product basis(b)   $ 976     $ 1,006     $ 963   $ 982  
Attributable(a) all-in sustaining cost per equivalent ounce(c) sold(b)   $ 988     $ 1,011     $ 972   $ 987  
Attributable(a) all-in cost per ounce sold on a by-product basis(b)   $ 1,027     $ 1,092     $ 1,022   $ 1,071  
Attributable(a) all-in cost per equivalent ounce(c) sold(b)   $ 1,037     $ 1,094     $ 1,028   $ 1,074  
(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 12 to 16 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 2016 was 75.06:1, compared with 72.75:1 for the second quarter of 2015 and for the first six months of 2016 was 77.20:1, compared with 72.84:1 for the first six months of 2015.
   

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

Production: Kinross produced 671,267 attributable Au eq. oz. in Q2 2016, a 2% increase compared with Q2 2015, due mainly to higher production at Paracatu and the acquisition of Bald Mountain and 50% of Round Mountain.

Production cost of sales: Production cost of sales per Au eq. oz.2 was $731 for Q2 2016, compared with $724 for Q2 2015, mainly as a result of higher costs at Tasiast, Chirano, and Fort Knox.

Production cost of sales per Au oz. on a by-product basis2 was $711 in Q2 2016, compared with $712 in Q2 2015, based on Q2 2016 attributable gold sales of 665,032 ounces and attributable silver sales of 1,630,139 ounces.

All-in sustaining cost: All-in sustaining cost per Au eq. oz. sold2 decreased to $988 in Q2 2016, compared with $1,011 in Q2 2015. All-in sustaining cost per Au oz. sold on a by-product basis2 was $976 in Q2 2016, compared with $1,006 in Q2 2015.

Average realized gold price: The average realized gold price in Q2 2016 increased to $1,266 per ounce, compared with $1,194 per ounce in Q2 2015.

Revenue: Revenue from metal sales was $876.4 million in Q2 2016, compared with $755.2 million during the same period in 2015, primarily due to increases in gold equivalent ounces sold and the average realized gold price.

Margins: Kinross' attributable margin per Au eq. oz. sold5 was $535 per Au eq. oz. for Q2 2016, compared with a Q2 2015 margin of $470 per Au eq. oz.

Operating cash flow: Adjusted operating cash flow2 was $187.2 million, or $0.15 per share, for Q2 2016, compared with $161.4 million, or $0.14 per share, for Q2 2015.

Earnings/loss: Adjusted net loss2,3 was $9.8 million, or $0.01 per share, for Q2 2016, compared with adjusted net loss of $13.6 million, or $0.01 per share, for Q2 2015.

Reported net loss3 was $25.0 million, or $0.02 per share, for Q2 2016, mainly as a result of a $69.4 million tax expense, compared with reported net loss of $83.2 million, or $0.07 per share, for Q2 2015.

Capital expenditures: Capital expenditures decreased to $114.0 million for Q2 2016, compared with $128.5 million for the same period last year, primarily due to lower spending at Fort Knox and Paracatu.

Operating results and update
Mine-by-mine summaries for 2016 second-quarter operating results may be found on pages seven and 11 of this news release. Highlights include the following:

Americas

The region is tracking at the low end of its guidance range for production and the high end of its guidance range for cost of sales per ounce for the year. At Fort Knox, production increased compared with the previous quarter as a result of higher mill throughput and recoveries. Production decreased compared with Q2 2015 mainly as a result of lower mill grades and recoveries. Cost of sales per ounce increased compared with Q1 2016 and Q2 2015 primarily due to higher costs associated with mined operating waste.

Round Mountain continued to perform well, with production in line with Q1 2016, as an increase in the amount of ore processed and strong performance from the heap leach offset lower mill grades. Cost of sales per ounce increased compared with the previous quarter due to higher input costs.

As announced on June 29, 2016, Kinross added 2.4 million Au oz. to the Company's estimated inferred mineral resource6 at Round Mountain and expects that the Process Solution Management program will produce approximately 200,000 - 230,000 Au eq. oz. over life of mine at a low cost of approximately $200 - $400 per Au eq. oz. (which includes production cost of sales and capital expenditures).

At Bald Mountain, production increased compared with Q1 2016 as a result of an increase in ore mined and processed, offset by lower grades. Cost of sales per ounce increased quarter-over-quarter as a result of a higher level of operating stripping.

The Company believes it can substantially increase Bald Mountain's current mineral reserve estimate and extend life of mine by developing additional deposits in the near-term. The current mine plan conservatively assumes an approximate 30% conversion of Bald Mountain's current estimated mineral resources to mineral reserves upon receipt of permits, a process which is proceeding as planned and nearly complete, and completion of modest infill drilling at the Vantage Complex and additional drilling at the Saga deposit.

Kettle-River Buckhorn continued with its strong performance as it nears the end of its mine life, which is expected at year end. Production was largely in line with the previous quarter, with cost of sales per ounce decreasing as a result of slightly higher grades and recoveries.

At Paracatu, production was higher compared with Q1 2016 and Q2 2015 mainly due to an increase in ore processed, which included approximately 20,000 Au eq. oz. from the Santo Antonio tailing reprocessing initiative, offset by lower recoveries. Cost of sales per ounce increased slightly compared with the previous quarter mainly due to higher input costs, while costs decreased compared with Q2 2015 mainly as a result of favourable foreign exchange rates and currency hedge losses incurred in 2015.

Due to the lack of rainfall at Paracatu during the 2015-2016 rainy season, the Company now expects to temporarily suspend operation of the mine's Plant 1 facility in the second half of the third quarter. Plant 1 will remain suspended until the water balance rises sufficiently to allow for production to restart. To help mitigate the effect of the lack of rainfall in the area, the Company has increased the water capture area and water conservation activities at the site and commenced operation of an enhanced water pumping system. The Company's 2016 full-year regional and company-wide production guidance includes an allocation to production and costs for a potential curtailment at Paracatu.

At Maricunga, production was lower compared with Q1 2016 and Q2 2015 as a result of the regulatory suspension of mining and crushing activities which began on May 2, 2016. Operations resumed on July 9, 2016, the continuation of which remains subject to the ongoing regulatory proceedings. Cost of sales per ounce increased quarter-over-quarter due to the suspension, but was lower year-over-year as the mine incurred higher costs due to the extreme weather event in Q2 2015.

The regulatory suspension was a result of water curtailment orders imposed by Chile's environmental regulatory authority (SMA). As previously announced on March 21, 2016, the Company received notification from the SMA of a resolution commencing a legal process to seek closure of Maricunga's water pumping wells. On June 24, 2016, the SMA issued a revised resolution amending the initial sanction which, if affirmed by Chile's Environmental Tribunal, would require the Company to effectively cease operations and close the mine. The Company vigorously disputes the resolution and the curtailment orders and has appeals pending with Chile's Environmental Tribunal7.

The Company has been assessing Maricunga's mine plan in the context of other capital priorities in its global portfolio and now expects to suspend mining in Q4 2016 and commence rinsing the residual gold from the heap leach pads, subject to the ongoing regulatory proceedings.

Russia

Kupol and Dvoinoye performed well in the second quarter, and achieved higher than expected production and lower cost of sales per ounce in the first half of 2016. As a result, the region expects to be at the higher end of production and at the lower end of cost of sales guidance for the year. Production was lower compared with Q1 2016 and Q2 2015 mainly as a result of anticipated lower grades at both mines, which was offset by an increase in ore processed. Cost of sales per ounce continued to decline mainly due to the sustained benefits from foreign exchange rates and rigorous cost management. Approximately 84,000 Au eq. oz. were produced from processing Dvoinoye ore in Q2 2016.

At the Russian development projects, haulage roads to both Moroshka, located near Kupol, and September Northeast, located near Dvoinoye, have been constructed. Portal construction is expected to begin in Q4 2016 at Moroskha, with mining scheduled to commence in 2018. Camp facilities have been constructed and site preparation is on schedule to be completed in Q4 2016 at September Northeast, with mining expected to commence in early 2017.

West Africa

The region expects to be at the lower end of its 2016 guidance range for production and at the higher end of its range for cost of sales per ounce. At Tasiast, production was lower quarter-over-quarter and year-over-year mainly as a result of the 18-day strike which ended on June 11, 2016 and the temporary suspension of mining and processing which began on June 18, 2016. Production cost of sales per ounce increased due to the decrease in gold equivalent ounces sold. Tonnes of ore mined increased compared with Q1 2016 and Q2 2015 due to additional heap leach material encountered in the West Branch footwall and planned mine sequencing to support the higher mill throughput rate, which continued to average more than 8,000 tonnes per day (tpd) in the quarter.

The Company and the Government of Mauritania have resolved the expatriate work permit issue as part of reaching a mutually acceptable "Mauritanization" plan to increase the number of local workers who have the necessary skills and experience to work at Tasiast, a requirement under Mauritanian law. Kinross has remobilized its workforce and expects to resume normal mining and processing activities in August 2016. As a result of the suspension, the Phase One expansion's expected timing for commercial production may extend to Q2 2018.

Labour negotiations respecting the Company's collective labour agreement at Tasiast are expected to recommence in the near term following resumption of normal mining and processing activities.

At Chirano, production was lower compared with Q1 2016 and Q2 2015 as the site continued to transition to the Paboase underground deposit, which resulted in lower grades. Production cost of sales per ounce was higher compared with both Q1 2016 and Q2 2015 as a result of fewer ounces sold, higher power costs and increased maintenance costs. The Company expects to mine higher grades and larger volumes from Paboase in the second half of the year resulting in improved mine performance.

Balance sheet and liquidity

As of June 30, 2016, Kinross had cash and cash equivalents of $968.2 million, a decrease of $75.7 million since December 31, 2015, mainly as a result of the $588.0 million used in the acquisition of the Bald Mountain mine and the remaining 50% interest in the Round Mountain mine, offset by net proceeds of $275.7 million from the equity issuance in Q1 2016 and $276.9 million of free cash flow generated from its operations in the first half of 2016. The Company also has available credit of $1,499.6 million as of June 30, 2016 for total liquidity of approximately $2.5 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. After September, Kinross will have no other debt maturities until 2020, as the Company has extended the maturity dates of its $500 million term loan and $1,500 million revolving credit facility by one year to August 10, 2020 and August 10, 2021, respectively.

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 17 of this news release.

The Company expects to be within its 2016 production guidance range of approximately 2.7 - 2.9 million Au eq. oz., its 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.

Kinross is tracking below its capital expenditure forecast of $755 million and is reviewing timing of its capital spend for the second half of 2016. The Company expects to provide an update in the third quarter.

Other operating costs are now forecast to be approximately $95 million, compared with the previously-stated forecast of $45 million, mainly due to the temporary suspension of mining at Tasiast and Maricunga during the quarter.

Depreciation, depletion and amortization is now forecast to be approximately $350 per Au eq. oz., compared with the previous forecast of $375 per Au eq. oz.

Conference call details

In connection with the release, Kinross will hold a conference call and audio webcast on Thursday, July 28, 2016 at 8 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 - 00585 followed by #.
Outside of Canada & US - 1-604-638-9010; Passcode - 00585 followed by #.

You may also access the conference call on a listen-only basis via webcast at our www.kinross.com, where it will be archived.

This news release should be read in conjunction with Kinross' 2016 second-quarter unaudited Financial Statements and Management's Discussion and Analysis report at www.kinross.com. Kinross' 2016 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. 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 (KGC).

 
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
    2016     2015     2016     2015     2016     2015     2016   2015
                                                     
Fort Knox   97,221     116,061     97,625     113,697     $ 77.4     $ 68.9     $ 793   $ 606
Round Mountain   92,813     48,448     91,646     47,893       71.3       36.4       778     760
Bald Mountain   32,704     -     35,508     -       43.2       -       1,217     -
Kettle River - Buckhorn   25,031     29,580     24,808     29,524       18.2       23.4       734     793
Paracatu   126,774     110,366     126,365     107,169       87.5       90.5       692     844
Maricunga   44,304     47,713     45,362     50,957       42.6       55.0       939     1,079
Americas Total   418,847     352,168     421,314     349,240       340.2       274.2       807     785
                                                     
Kupol   183,638     191,160     198,890     159,950       82.9       78.3       417     490
Russia Total   183,638     191,160     198,890     159,950       82.9       78.3       417     490
                                                     
Tasiast   29,577     57,890     28,467     54,941       35.3       58.4       1,240     1,063
Chirano (100%)   43,561     66,311     42,312     69,017       48.3       47.6       1,142     690
West Africa Total   73,138     124,201     70,779     123,958       83.6       106.0       1,181     855
                                                     
Operations Total   675,623     667,529     690,983     633,148       506.7       458.5       733     724
Less Chirano non-controlling interest (10%)   (4,356 )   (6,631 )   (4,231 )   (6,902 )     (4.8 )     (4.8 )            
Attributable Total   671,267     660,898     686,752     626,246     $ 501.9     $ 453.7     $ 731   $ 724
                                                     
 
                                                     
Six months ended June 30, Gold equivalent ounces                              
  Produced   Sold       Production cost of sales
($millions)
      Production cost of sales/equivalent ounce sold
    2016      2015     2016     2015       2016       2015       2016     2015
                                                     
Fort Knox   185,021     198,734     185,514     195,700     $ 139.6     $ 124.0     $ 753   $ 634
Round Mountain   185,739     88,710     182,120     88,340       131.7       72.4       723     820
Bald Mountain   53,126     -     46,705     -       56.3       -       1,205     -
Kettle River - Buckhorn   53,343     53,845     53,072     53,691       40.4       47.7       761     888
Paracatu   246,150     235,051     243,455     232,098       167.4       184.4       688     794
Maricunga   103,380     104,535     102,852     105,333       89.9       111.0       874     1,054
Americas Total   826,759     680,875     813,718     675,162       625.3       539.5       768     799
                                                     
Kupol   376,088     376,889     374,581     352,117       161.1       169.8       430     482
Russia Total   376,088     376,889     374,581     352,117       161.1       169.8       430     482
                                                     
Tasiast   76,655     111,899     76,858     106,731       82.5       110.3       1,073     1,033
Chirano (100%)   88,031     133,994     89,991     140,890       95.5       93.5       1,061     664
West Africa Total   164,686     245,893     166,849     247,621       178.0       203.8       1,067     823
                                                     
Operations Total   1,367,533     1,303,657     1,355,148     1,274,900       964.4       913.1       712     716
Less Chirano non-controlling interest (10%)   (8,803 )   (13,399 )   (8,999 )   (14,089 )     (9.6 )     (9.4 )            
Attributable Total   1,358,730     1,290,258     1,346,149     1,260,811     $ 954.8     $ 903.7     $ 709   $ 717
                                                     
 
 
Consolidated balance sheets
             
(unaudited expressed in millions of United States dollars, except share amounts)      
             
    As at  
    June 30     December 31,  
    2016     2015  
             
Assets                
  Current assets                
    Cash and cash equivalents   $ 968.2       1,043.9  
    Restricted cash     11.4       10.5  
    Accounts receivable and other assets     126.4       108.2  
    Current income tax recoverable     80.8       123.3  
    Inventories     1,056.5       1,005.2  
    Unrealized fair value of derivative assets     21.4       1.0  
      2,264.7       2,292.1  
  Non-current assets                
    Property, plant and equipment     5,059.8       4,593.7  
    Goodwill     162.7       162.7  
    Long-term investments     145.6       83.1  
    Investments in associate and joint ventures     163.3       157.1  
    Unrealized fair value of derivative assets     5.3       -  
    Other long-term assets     413.2       370.2  
    Deferred tax assets     92.3       76.5  
Total assets   $ 8,306.9     $ 7,735.4  
                 
Liabilities                
  Current liabilities                
    Accounts payable and accrued liabilities   $ 432.4     $ 379.6  
    Current income tax payable     40.8       6.4  
    Current portion of long-term debt     249.9       249.5  
    Current portion of provisions     53.3       50.3  
    Current portion of unrealized fair value of derivative liabilities     1.0       16.0  
      777.4       701.8  
  Non-current liabilities                
    Long-term debt     1,733.1       1,731.9  
    Provisions     857.3       720.8  
    Other long-term liabilities     195.8       148.7  
    Deferred tax liabilities     432.1       499.0  
Total liabilities     3,995.7       3,802.2  
                 
Equity                
  Common shareholders' equity                
    Common share capital   $ 14,890.6     $ 14,603.5  
    Contributed surplus     233.8       239.2  
    Accumulated deficit     (10,912.1 )     (10,922.1 )
    Accumulated other comprehensive income (loss)     58.4       (31.3 )
Total common shareholders' equity     4,270.7       3,889.3  
  Non-controlling interest     40.5       43.9  
Total equity     4,311.2       3,933.2  
Total liabilities and equity   $ 8,306.9     $ 7,735.4  
                 
Common shares                
  Authorized     Unlimited       Unlimited  
  Issued and outstanding     1,244,357,781       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     Six months ended  
    June 30,     June 30,     June 30,     June 30,  
    2016     2015     2016     2015  
                         
Revenue                                
  Metal sales   $ 876.4     $ 755.2     $ 1,659.0     $ 1,536.6  
                                 
Cost of sales                                
  Production cost of sales     506.7       458.5       964.4       913.1  
  Depreciation, depletion and amortization     210.2       216.7       403.4       422.9  
  Impairment charges     -       24.5       -       24.5  
Total cost of sales     716.9       699.7       1,367.8       1,360.5  
Gross profit     159.5       55.5       291.2       176.1  
  Other operating expense     36.1       49.0       70.0       65.3  
  Exploration and business development     21.8       29.7       38.5       52.5  
  General and administrative     32.4       44.6       70.7       83.6  
Operating earnings (loss)     69.2       (67.8 )     112.0       (25.3 )
  Other income (expense) - net     3.7       (6.3 )     13.2       (8.2 )
  Equity in earnings (losses) of associate and joint ventures     (0.1 )     5.9       0.1       4.9  
  Finance income     1.9       2.0       3.5       4.2  
  Finance expense     (32.3 )     (23.7 )     (65.5 )     (47.7 )
Earnings (loss) before tax     42.4       (89.9 )     63.3       (72.1 )
  Income tax recovery (expense) - net     (69.4 )     5.4       (56.7 )     (19.9 )
Net earnings (loss)   $ (27.0 )   $ (84.5 )   $ 6.6     $ (92.0 )
Net earnings (loss) attributable to:                                
  Non-controlling interest   $ (2.0 )   $ (1.3 )   $ (3.4 )   $ (2.1 )
  Common shareholders   $ (25.0 )   $ (83.2 )   $ 10.0     $ (89.9 )
Earnings (loss) per share attributable to common shareholders                                
                                 
  Basic   $ (0.02 )   $ (0.07 )   $ 0.01     $ (0.08 )
  Diluted   $ (0.02 )   $ (0.07 )   $ 0.01     $ (0.08 )
                                 
Weighted average number of common shares outstanding (millions)                                
  Basic     1,244.2       1,146.2       1,208.9       1,145.7  
  Diluted     1,244.2       1,146.2       1,219.4       1,145.7  
                                   
 
 
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,  
    2016     2015     2016     2015  
Net inflow (outflow) of cash related to the following activities:                                
                                 
Operating:                                
Net earnings (loss)   $ (27.0 )   $ (84.5 )   $ 6.6     $ (92.0 )
Adjustments to reconcile net earnings (loss) to net cash provided from operating activities:                                
  Depreciation, depletion and amortization     210.2       216.7       403.4       422.9  
  Impairment of inventory     -       24.5       -       24.5  
  Equity in losses (earnings) of associate and joint ventures     0.1       (5.9 )     (0.1 )     (4.9 )
  Non-hedge derivative losses (gains) - net     5.9       (1.8 )     0.4       (0.8 )
  Share-based compensation expense     3.3       4.3       7.1       8.9  
  Finance expense     32.3       23.7       65.5       47.7  
  Deferred tax expense (recovery)     (45.0 )     12.7       (104.0 )     (17.1 )
  Foreign exchange losses (gains) and other     7.4       (28.3 )     15.9       (13.0 )
  Changes in operating assets and liabilities:                                
  Accounts receivable and other assets     4.9       (29.8 )     3.6       11.0  
  Inventories     49.6       36.5       83.9       87.2  
  Accounts payable and accrued liabilities     101.0       28.0       115.0       0.4  
Cash flow provided from operating activities     342.7       196.1       597.3       474.8  
  Income taxes paid     (26.8 )     (28.9 )     (66.9 )     (57.5 )
Net cash flow provided from operating activities     315.9       167.2       530.4       417.3  
                                 
Investing:                                
  Additions to property, plant and equipment     (114.0 )     (128.5 )     (253.5 )     (278.0 )
  Business acquisition     22.0       -       (588.0 )     -  
  Net additions to long-term investments and other assets     (9.0 )     (20.0 )     (20.1 )     (41.7 )
  Net proceeds from the sale of property, plant and equipment     2.5       1.6       6.9       2.9  
  Decrease (increase) in restricted cash     (0.5 )     2.6       (0.9 )     2.8  
  Interest received and other     0.9       1.0       1.5       2.1  
Net cash flow used in investing activities     (98.1 )     (143.3 )     (854.1 )     (311.9 )
Financing:                                
  Issuance of common shares on exercise of options     1.0       -       1.0       -  
  Proceeds from issuance of equity     -       -       275.7       -  
  Proceeds from issuance of debt     -       3.0       -       22.5  
  Repayment of debt     -       (3.0 )     -       (52.5 )
  Interest paid     (3.6 )     (2.5 )     (33.2 )     (23.5 )
  Other     -       (1.0 )     -       (1.0 )
Net cash flow provided from (used in) financing activities     (2.6 )     (3.5 )     243.5       (54.5 )
Effect of exchange rate changes on cash and cash equivalents     2.6       0.5       4.5       (3.0 )
Increase (decrease) in cash and cash equivalents     217.8       20.9       (75.7 )     47.9  
Cash and cash equivalents, beginning of period     750.4       1,010.5       1,043.9       983.5  
Cash and cash equivalents, end of period   $ 968.2     $ 1,031.4     $ 968.2     $ 1,031.4  
                                 
                                 
...
                         
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)