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Kinross reports 2017 third-quarter results

TORONTO, ON--(Marketwired - November 08, 2017) - Kinross Gold Corporation (TSX:K.TO) (KGC) today announced its results for the third-quarter ended September 30, 2017.

(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.)

2017 third-quarter highlights:

  • Production1: 653,993 gold equivalent ounces (Au eq. oz.), compared with 684,129 Au eq. oz. in Q3 2016.
  • Revenue: $828.0 million, compared with $910.2 million in Q3 2016.
  • Production cost of sales(2): $662 per Au eq. oz., compared with $719 in Q3 2016.
  • All-in sustaining cost2: $937 per Au eq. oz. sold, compared with $1,001 in Q3 2016. All-in sustaining cost per gold ounce (Au oz.) sold on a by-product basis was $927 in Q3 2017, compared with $987 in Q3 2016.
  • Operating cash flow: $197.7 million, compared with $266.2 million in Q3 2016.
  • Adjusted operating cash flow2: $320.8 million, compared with $320.3 million for Q3 2016.
  • Reported net earnings(3): Net earnings increased to $60.1 million, or $0.05 per share, compared with net earnings of $2.5 million, or $0.00 per share, in Q3 2016.
  • Adjusted net earnings2,3: $84.1 million, or $0.07 per share, compared with adjusted net earnings of $128.7 million, or $0.10 per share, in Q3 2016.
  • Organic development projects:
    • In mid-September 2017, the Company announced that it was proceeding with the Tasiast Phase Two and Round Mountain Phase W projects. Phase Two is expected to transform Tasiast into a large, world-class mine with low costs while Phase W is expected to extend mining by five years at Round Mountain.
    • The Tasiast Phase One expansion continues to advance on time and on budget and is expected to reach full commercial production towards the end of Q2 2018. Plant construction is now 77% complete.
    • Construction for the Tasiast Phase Two expansion is on schedule to start early next year, with engineering now 25% complete.
    • At the Round Mountain Phase W project, stripping and initial construction is on schedule to begin early next year, pending the permitting process. The Decision Record from the U.S. Bureau of Land Management was received in October 2017 and state permits are proceeding as planned.
    • At the Bald Mountain Vantage Complex, overall engineering work is now 70% complete and initial construction work is expected to commence in Q1 2018.
    • At the Moroshka project located near Kupol, development of the twin declines is progressing on schedule.
  • Outlook: Kinross is tracking towards the high end of its 2017 guidance for production (2.5 - 2.7 million Au eq. oz.), and the low end for both production cost of sales ($660 - $720 per Au eq. oz.) and all-in sustaining cost ($925 - $1,025 per Au eq. oz.). The Company expects to be within its capital expenditures guidance of $900 million (+/- 5%).
  • Balance sheet: As of September 30, 2017, Kinross had cash and cash equivalents of $992.1 million, and available credit of $1,512.2 million, for total liquidity of approximately $2.5 billion.The Company has no scheduled debt repayments until 2021.

1 Unless otherwise stated, production figures in this news release are based on Kinross' 90% share of Chirano production.
2 These figures are non-GAAP financial measures and are defined and reconciled on pages 13 to 17 of this news release.
3 Net earnings/loss figures in this release represent "net earnings (loss) attributable to common shareholders".

CEO Commentary
J. Paul Rollinson, President and CEO, made the following comments in relation to 2017 third-quarter results:

"Kinross delivered strong third quarter results, bolstered by outperformance at our two Nevada mines and at Tasiast. We are on target to meet our annual guidance range for the sixth consecutive year, and are tracking towards the high end of our production and the low end of both our cost of sales and all-in sustaining cost guidance. We also generated solid cash flow and maintained one of the best balance sheets among our peers.

"Development at our suite of organic projects continues to proceed well. Tasiast Phase One is on track for full commercial production towards the end of Q2 2018 and engineering at Phase Two is now 25% complete. We also expect to start construction at Tasiast Phase Two, Round Mountain Phase W and the Vantage Complex at Bald Mountain early next year, as initial development work at all three projects is already in progress.

"We are continuing to deliver and have strong operational momentum as we head into year end."

Financial results

Summary of financial and operating results

       
  Three months ended   Nine months ended
  September 30,   September 30,
(in millions, except ounces, per share amounts, and per ounce amounts) 2017 2016   2017 2016
Operating Highlights                  
Total gold equivalent ounces(a)                  
  Produced(c)   660,564   690,311     2,038,797   2,057,844
  Sold(c)   645,235   680,327     1,987,113   2,035,475
                   
Attributable gold equivalent ounces(a)                  
  Produced(c)   653,993   684,129     2,020,823   2,042,859
  Sold(c)   638,659   674,070     1,968,189   2,020,219
                   
Financial Highlights                  
Metal sales $ 828.0 $ 910.2   $ 2,492.7 $ 2,569.2
Production cost of sales $ 427.5 $ 490.0   $ 1,342.9 $ 1,454.4
Depreciation, depletion and amortization $ 207.6 $ 213.8   $ 629.1 $ 617.2
Impairment charges $ - $ 139.6   $ - $ 139.6
Operating earnings (loss) $ 80.1 $ (30.1 ) $ 233.6 $ 81.9
Net earnings attributable to common shareholders $ 60.1 $ 2.5   $ 227.8 $ 12.5
Basic earnings per share attributable to common shareholders $ 0.05 $ 0.00   $ 0.18 $ 0.01
Diluted earnings per share attributable to common shareholders $ 0.05 $ 0.00   $ 0.18 $ 0.01
Adjusted net earnings attributable to common shareholders(b) $ 84.1 $ 128.7   $ 162.4 $ 143.9
Adjusted net earnings per share(b) $ 0.07 $ 0.10   $ 0.13 $ 0.12
Net cash flow provided from operating activities $ 197.7 $ 266.2   $ 585.2 $ 796.6
Adjusted operating cash flow(b) $ 320.8 $ 320.3   $ 802.5 $ 715.1
Average realized gold price per ounce $ 1,283 $ 1,336   $ 1,254 $ 1,261
Consolidated production cost of sales per equivalent ounce(c) sold(b) $ 663 $ 720   $ 676 $ 715
Attributable(a) production cost of sales per equivalent ounce(c) sold(b) $ 662 $ 719   $ 674 $ 713
Attributable(a) production cost of sales per ounce sold on a by-product basis(b) $ 645 $ 695   $ 658 $ 694
Attributable(a) all-in sustaining cost per ounce sold on a by-product basis(b) $ 927 $ 987   $ 924 $ 962
Attributable(a) all-in sustaining cost per equivalent ounce(c) sold(b) $ 937 $ 1,001   $ 933 $ 973
Attributable(a) all-in cost per ounce sold on a by-product basis(b) $ 1,155 $ 1,074   $ 1,117 $ 1,030
Attributable(a) all-in cost per equivalent ounce(c) sold(b) $ 1,158 $ 1,085   $ 1,121 $ 1,039
(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 onpage 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 third quarter of 2017 was 75.91:1, compared with 68.05:1 for the third quarter of 2016 and for the first nine months of 2017 was 72.94:1, compared with 73.61:1 for the first nine months of 2016.
     

Unless otherwise noted, the following operating and financial results are based on third-quarter 2017 gold equivalent production. Production and cost measures are on an attributable basis:

Production: Kinross produced 653,993 attributable Au eq. oz. in Q3 2017, compared with production of 684,129 attributable Au eq. oz. in Q3 2016.

Production cost of sales: Production cost of sales per Au eq. oz.2 decreased to $662 for Q3 2017, compared with $719 for Q3 2016, mainly as a result of lower cost of sales per ounce at Round Mountain, Bald Mountain and Fort Knox.

Production cost of sales per Au oz. on a by-product basis2 decreased to $645 in Q3 2017, compared with $695 in Q3 2016, based on Q3 2017 attributable gold sales of 621,720 ounces and attributable silver sales of 1,285,860 ounces.

All-in sustaining cost: All-in sustaining cost per Au eq. oz. sold2 decreased to $937 in Q3 2017, compared with $1,001 in Q3 2016. All-in sustaining cost per Au oz. sold on a by-product basis2 decreased to $927 in Q3 2017, compared with $987 in Q3 2016.

Average realized gold price: The average realized gold price in Q3 2017 was $1,283 per ounce, compared with $1,336 per ounce in Q3 2016.

Revenue: Revenue from metal sales decreased to $828.0 million in Q3 2017, compared with $910.2 million during the same period in 2016, mainly due to lower gold equivalent ounces sold and the lower average realized gold price.

Margins: Kinross' attributable margin per Au eq. oz. sold4 was $621 for Q3 2017, compared with a Q3 2016 margin of $617 per Au eq. oz.

4 Attributable margin per equivalent ounce sold is a non-GAAP measure defined as "average realized gold price per ounce" less "attributable production cost of sales per gold equivalent ounce sold."

Operating cash flow: Adjusted operating cash flow2 was $320.8 million for Q3 2017, compared with $320.3 million for Q3 2016.

Net operating cash flow was $197.7 million for Q3 2017, compared with $266.2 million for Q3 2016.

Earnings: Adjusted net earnings2,3 were $84.1 million, or $0.07 per share, for Q3 2017, compared with adjusted net earnings of $128.7 million, or $0.10 per share, for Q3 2016, mainly as a result of a decrease in revenue and income tax recovery recognized in the quarter, compared with the same period in 2016.

Reported net earnings3 increased to $60.1 million, or $0.05 per share, for Q3 2017, compared with net earnings of $2.5 million, or $0.00 per share, for Q3 2016 mainly as a result of a non-cash impairment charge recognized in the same period last year and lower production cost of sales.

Capital expenditures: Capital expenditures increased to $204.7 million for Q3 2017, compared with $153.8 million for the same period last year, primarily due to Tasiast Phase One expansion project costs and increased spending at Fort Knox, partly offset by lower spending at Kupol.

Operating results
Mine-by-mine summaries for 2017 third-quarter operating results may be found on pages eight and 12 of this news release. Highlights include the following:

Americas

At Fort Knox, production increased compared with Q2 2017 mainly due to more ore processed and ounces recovered from the heap leach, but decreased slightly compared with Q3 2016 primarily due to lower tonnes placed on the heap leach pad. Cost of sales per ounce was largely in line with Q2 2017 and was lower compared with Q3 2016 mainly as a result of a decrease in operating waste mined and lower contractor costs as the site began to transition more of its maintenance function to self-perform.

Kinross' Nevada operations outperformed during the quarter as both Round Mountain and Bald Mountain increased production and lowered cost of sales per ounce quarter-over-quarter and year-over-year.

Round Mountain increased production by 30% over Q3 2016 mainly due to the highest mill grades since 2003, the year Kinross first started operating the mine. Production increased quarter-over-quarter mainly due to higher mill grades and recoveries. The high mill grade was also the main driver for the decrease in cost of sales per ounce, which was at its lowest level in five years. Lower labour and contractor costs also contributed to the 25% reduction in cost of sales per ounce compared with Q3 2016.

Bald Mountain achieved record production during the quarter and continues to be on track to double annual production for 2017 compared with full-year 2016. Production increased compared with Q2 2017 and Q3 2016 mainly due to higher grades and a significant increase of tonnes placed on the heap leach pads. Cost of sales per ounce decreased compared with Q2 2017 and Q3 2016 mainly due to higher grades and more gold equivalent ounces sold. Additionally, maintenance costs decreased compared with Q3 2016.

Kettle River-Buckhorn produced approximately 17,000 gold equivalent ounces from its stockpiles during the quarter, as the last batch of ore was hauled from Buckhorn in July. Reclamation is now well underway at the site and exploration is continuing in the region.

At Paracatu, production was lower quarter-over-quarter and year-over-year due to the temporary curtailment of mining and Plant 2 operations as a result of lower than average rainfall in the region. The curtailment of mining and Plant 2 began in early July and continued through October, with Plant 1 running intermittently during that month mainly due to the slow start of this year's rainy season. The decrease was partly mitigated by production from the tailings reprocessing at Plant 1, which was higher than expected. Cost of sales per ounce was higher due to the reduction in production and gold equivalent ounces sold.

Mining and processing activities re-started in early November at Paracatu, as the area received sufficient rainfall in late October. Paracatu is expected to resume normal production in Q4 as sufficient water becomes available. The Company continues to advance its water mitigation efforts to prepare for potential lower rainfall levels going forward. These efforts include securing ground water rights and installation of wells around the site.

At Maricunga, production was better than expected, as the rinsing of the heap materials placed on the pads prior to the suspension of mining activities continued to achieve strong results. Cost of sales per ounce was higher compared with the previous quarter mainly due to higher contractor costs. Production is expected to be at a similar level for the fourth quarter.

Russia

The region performed well in Q3 2017 with production from Kupol and Dvoinoye largely in line with Q2 2017. Production decreased compared with Q3 2016 mainly due to anticipated lower grades. Cost of sales per ounce was lower compared with Q2 2017 primarily as a result of lower fuel and maintenance costs and continued to be among the lowest in Kinross' portfolio. Cost of sales per ounce increased year-over-year mainly due to the lower grades, higher operating waste mined and unfavourable foreign exchange rates.

West Africa

Tasiast performed well during the quarter, as production increased 10% compared with Q2 2017 primarily due to strong mill grades, the highest since 2010, and more tonnes processed from the dump leach. Cost of sales per ounce was lower compared with Q2 2017 mainly due to the higher grades and an increase in gold equivalent ounces sold. Production was higher and cost of sales per ounce lower compared with Q3 2016 due to higher mill grades and the impact of the temporary suspension of mining last year.

At Chirano, production was higher compared with Q2 2017 and Q3 2016 mainly due to, respectively, better mill performance as a result of a more stable supply of electricity from the country's power grid, and higher grades. Cost of sales per ounce was lower quarter-over-quarter mainly as a result of less operating waste mined and lower mining costs due to the cessation of open pit mining. Cost of sales per ounce was lower year-over-year mainly due to lower overhead and energy costs.

Organic development projects

In mid-September 2017, the Company announced that it was proceeding with the Tasiast Phase Two and Round Mountain Phase W expansion projects. Phase Two is expected to transform Tasiast into a large, world-class mine with low costs and Phase W is expected to extend mining by five years at Round Mountain.

Tasiast Phase One project development is progressing well, and continues to be on time and on budget, with full commercial production expected towards the end of Q2 2018. Plant construction is now 77% complete. Crusher installation has started and conveyor installation is progressing well for both the stockpile and SAG feed. The gearless motor drives for the SAG mill are now in place and work on the stator windings has begun. Significant progress has been made at the downstream portion of the plant, including the cyclones, three leach tanks, elution circuit and pumping and piping. Electrical work is ramping up across the project and the tailings storage facility is now ready for tailings deposition.

Construction for the Tasiast Phase Two project is on schedule to commence in early 2018. Procurement for long lead items, including the power plant, has begun. Overall engineering is now 25% complete and commercial terms for the EPCM package have been finalized.

At the Round Mountain Phase W project, stripping and initial construction work is expected to begin in early 2018, pending the completion of the permitting process. The Decision Record from the U.S. Bureau of Land Management was received in October 2017 and state permits are proceeding as planned. Detailed engineering continues to advance and procurement activities for long lead items and mining equipment have commenced. Initial low grade Phase W ore is expected to be encountered in mid-2019.

At the Bald Mountain Vantage Complex project, overall engineering is now 70% complete. The permitting process is proceeding as planned and initial construction work is on schedule to begin in Q1 2018. The proposed heap leach pad and associated processing facilities and infrastructure is expected to accommodate a total capacity of 68 million tonnes of ore.

At the Moroshka satellite deposit in Russia, located approximately four kilometres east of Kupol, development of the twin declines is proceeding on schedule, with construction of surface infrastructure now complete.

At the Tasiast Sud project, located 10 kilometres south of Tasiast, the pre-feasibility study that is contemplating a potential dump leach operation that would combine materials from multiple deposits in the area, and the trucking of high grade ore to the Tasiast mill, is progressing well and is expected to be completed in the second half of 2018. The accelerated infill drilling campaign, which is evaluating the potential for additions to mineral resource estimates at year end, has generated encouraging results and completed 21,700 metres of drilling in 245 holes as of the end of September.

Balance sheet

As of September 30, 2017, Kinross had cash and cash equivalents of $992.1 million, compared with $1,061.3 million as of June 30, 2017. The Company also had available credit of $1,512.2 million as of September 30, 2017 for total liquidity of approximately $2.5 billion.

During the third quarter, the Company completed a $500.0 million offering of 4.50% debt securities and used the net proceeds, along with cash on hand, to repay its term loan due August 2020. As a result, the Company has no scheduled debt repayments until 2021.

On July 28, 2017, the Company extended the maturity date of its $1,500.0 million revolving credit facility by one year from August 10, 2021 to August 10, 2022.

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' 2017 production guidance took into account the potential curtailment at Paracatu and is tracking towards the high end of the range of approximately 2.5 - 2.7 million Au eq. oz., with robust year-to-date production from Maricunga, Kettle River-Buckhorn and Round Mountain strengthening the Company's portfolio.

Kinross is tracking towards the low end for both its production cost of sales guidance range of $660 - $720 per Au eq. oz. and its all-in sustaining cost guidance range of $925 - $1,025 per Au eq. oz. sold.

The Company expects to meet its 2017 capital expenditures forecast of approximately $900 million (+/- 5%).

Other operating costs are now expected to be $140 - $150 million for 2017, compared with the previous guidance range of $80 - $90 million, mainly as a result of the temporary curtailment at Paracatu, VAT and other tax related items, and Kettle River-Buckhorn reclamation costs.

Board update

The Board of Directors of Kinross has appointed Mr. Kerry Dyte, Q.C, ICD.D as a Director. Mr. Dyte has over 30 years of experience in the legal field and over 20 years of experience as a senior executive in the resource industry. Mr. Dyte was most recently the Executive Vice-President, General Counsel and Corporate Secretary of Cenovus Energy Inc. Mr. Dyte has played a key leadership role in a variety of major corporate transactions including mergers and acquisitions, financings and project development, during his career.

Mr. John M.H. Huxley, who has been a Kinross Board member since 1993, has decided to retire effective as of December 31, 2017. Kinross' Board of Directors and management team would like to thank Mr. Huxley for his many contributions and his distinguished directorship on the Board.

Conference call details

In connection with the release, Kinross will hold a conference call and audio webcast on Thursday, November 9, 2017 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 - 1740 followed by #.
Outside of Canada & US - 1-604-638-9010; Passcode -1740followed 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 news release should be read in conjunction with Kinross' 2017 third-quarter unaudited Financial Statements and Management's Discussion and Analysis report at www.kinross.com. Kinross' 2017 third-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 September 30,       Gold equivalent ounces                              
  Produced     Sold     Production cost of sales ($millions)     Production cost of sales/equivalent ounce sold
  2017     2016     2017       2016     2017     2016     2017   2016
                                                     
Fort Knox 101,047     110,396     101,077       107,444     $ 64.8     $ 79.8     $ 641   $ 743
Round Mountain 120,743     93,215     120,944       88,477       75.7       73.7       626     833
Bald Mountain 80,677     32,675     67,598       30,174       46.7       30.9       691     1,024
Kettle River - Buckhorn 17,132     28,241     17,385       28,104       10.3       17.1       592     608
Paracatu 46,971     111,889     53,076       111,796       53.0       77.5       999     693
Maricunga 20,463     39,253     14,129       39,458       8.1       37.5       573     950
Americas Total 387,033     415,669     374,209       405,453       258.6       316.5       691     781
                                                     
Kupol 145,759     178,032     142,821       181,508       74.8       82.4       524     454
Russia Total 145,759     178,032     142,821       181,508       74.8       82.4       524     454
                                                     
Tasiast 62,065     34,793     62,448       30,793       46.1       38.1       738     1,237
Chirano (100%) 65,707     61,817     65,757       62,573       48.0       53.0       730     847
West Africa Total 127,772     96,610     128,205       93,366       94.1       91.1       734     976
                                                     
Operations Total 660,564     690,311     645,235       680,327       427.5       490.0       663     720
Less Chirano non-controlling interest (10%) (6,571 )   (6,182 )   (6,576 )     (6,257 )     (4.8 )     (5.3 )            
Attributable Total 653,993     684,129     638,659       674,070     $ 422.7     $ 484.7     $ 662   $ 719
                                                     
                                                     
 
                                             
Nine months ended September 30,       Gold equivalent ounces                              
  Produced     Sold     Production cost of sales ($millions)     Production cost of sales/equivalent ounce sold
  2017     2016     2017       2016     2017     2016     2017   2016
                                                     
Fort Knox 285,933     295,417     287,055       292,958     $ 181.2     $ 219.4     $ 631   $ 749
Round Mountain 338,683     278,954     333,853       270,597       220.9       205.4       662     759
Bald Mountain 177,635     85,801     163,553       76,879       121.9       87.2       745     1,134
Kettle River - Buckhorn 72,664     81,584     73,138       81,176       36.4       57.5       498     708
Paracatu 293,936     358,039     293,408       355,251       250.4       244.9       853     689
Maricunga 72,088     142,633     30,115       142,310       13.0       127.4       432     895
Americas Total 1,240,939     1,242,428     1,181,122       1,219,171       823.8       941.8       697     772
                                                     
Kupol 435,150     554,120     435,489       556,089       227.1       243.5       521     438
Russia Total 435,150     554,120     435,489       556,089       227.1       243.5       521     438
                                                     
Tasiast 182,966     111,448     181,263       107,651       135.2       120.6       746     1,120
Chirano (100%) 179,742     149,848     189,239       152,564       156.8       148.5       829     973
West Africa Total 362,708     261,296     370,502       260,215       292.0       269.1       788     1,034
                                                     
Operations Total 2,038,797     2,057,844     1,987,113       2,035,475       1,342.9       1,454.4       676     715
Less Chirano non-controlling interest (10%) (17,974 )   (14,985 )   (18,924 )     (15,256 )     (15.7 )     (14.9 )            
Attributable Total 2,020,823     2,042,859     1,968,189       2,020,219     $ 1,327.2     $ 1,439.5     $ 674   $ 713
                                                     
 
 

Consolidated balance sheets

(unaudited expressed in millions of United States dollars, except share amounts)
             
    As at  
    September 30,     December 31,  
    2017     2016  
                 
Assets                
  Current assets                
    Cash and cash equivalents   $ 992.1     $ 827.0  
    Restricted cash     12.3       11.6  
    Accounts receivable and other assets     162.0       127.3  
    Current income tax recoverable     89.9       111.9  
    Inventories     1,042.0       986.8  
    Unrealized fair value of derivative assets     15.0       16.1  
    Assets classified as held for sale     2.5       -  
        2,315.8       2,080.7  
  Non-current assets                
    Property, plant and equipment     4,809.6       4,917.6  
    Goodwill     162.7       162.7  
    Long-term investments     204.2       142.9  
    Investments in associate and joint ventures     24.0       163.6  
    Unrealized fair value of derivative assets     2.7       6.0  
    Other long-term assets     479.2       411.3  
    Deferred tax assets     90.9       94.5  
Total assets   $ 8,089.1     $ 7,979.3  
                 
Liabilities                
  Current liabilities                
    Accounts payable and accrued liabilities   $ 459.2     $ 464.8  
    Current income tax payable     15.0       72.6  
    Current portion of provisions     72.1       93.2  
    Current portion of unrealized fair value of derivative liabilities     0.5       7.1  
    Liabilities classified as held for sale     37.6       -  
        584.4       637.7  
  Non-current liabilities                
    Long-term debt     1,732.0       1,733.2  
    Provisions     853.7       861.2  
    Other long-term liabilities     127.4       172.2  
    Deferred tax liabilities     375.3       390.7  
Total liabilities     3,672.8       3,795.0  
                 
Equity                
  Common shareholders' equity                
    Common share capital   $ 14,902.5     $ 14,894.2  
    Contributed surplus     237.1       238.3  
    Accumulated deficit     (10,798.3 )     (11,026.1 )
    Accumulated other comprehensive income     38.4       39.1  
Total common shareholders' equity     4,379.7       4,145.5  
  Non-controlling interest     36.6       38.8  
Total equity     4,416.3       4,184.3  
Total liabilities and equity   $ 8,089.1     $ 7,979.3  
                 
Common shares                
  Authorized     Unlimited       Unlimited  
  Issued and outstanding     1,246,993,687       1,245,049,712  
                 
                 

Consolidated statements of operations

(unaudited expressed in millions of United States dollars, except share and per share amounts)
    Three months ended     Nine months ended  
    September 30,     September 30,     September 30,     September 30,  
    2017     2016     2017     2016  
                                 
Revenue                                
  Metal sales   $ 828.0     $ 910.2     $ 2,492.7     $ 2,569.2  
                                 
Cost of sales                                
  Production cost of sales     427.5       490.0       1,342.9       1,454.4  
  Depreciation, depletion and amortization     207.6       213.8       629.1       617.2  
  Impairment charges     -       139.6       -       139.6  
Total cost of sales     635.1       843.4       1,972.0       2,211.2  
Gross profit     192.9       66.8       520.7       358.0  
  Other operating expense     55.1       27.2       116.3       97.2  
  Exploration and business development     26.1       29.8       72.0       68.3  
  General and administrative     31.6       39.9       98.8       110.6  
Operating earnings (loss)     80.1       (30.1 )     233.6       81.9  
  Other income (expense) - net     (1.2 )     2.1       123.5       15.3  
  Equity in losses of associate and joint ventures     (0.1 )     (0.3 )     (1.0 )     (0.2 )
  Finance income     3.3       2.1       9.4       5.6  
  Finance expense     (32.3 )     (31.0 )     (89.3 )     (96.5 )
Earnings before tax     49.8       (57.2 )     276.2       6.1  
  Income tax recovery (expense) - net     10.3       59.4       (50.6 )     2.7  
Net earnings   $ 60.1     $ 2.2     $ 225.6     $ 8.8  
Net earnings (loss) attributable to:                                
  Non-controlling interest   $ -     $ (0.3 )   $ (2.2 )   $ (3.7 )
  Common shareholders   $ 60.1     $ 2.5     $ 227.8     $ 12.5  
Earnings per share attributable to common shareholders                                
                                 
  Basic   $ 0.05     $ 0.00     $ 0.18     $ 0.01  
  Diluted   $ 0.05     $ 0.00     $ 0.18     $ 0.01  
                                 
Weighted average number of common shares outstanding (millions)                                
  Basic     1,247.0       1,244.9       1,246.5       1,221.0  
  Diluted     1,257.1       1,256.5       1,256.5       1,231.8  

Consolidated statements of cash flows

(unaudited expressed in millions of United States dollars)  
    Three months ended     Nine months ended  
    September 30,     September 30,     September 30,     September 30,  
    2017     2016     2017     2016  
Net inflow (outflow) of cash related to the following activities:                                
                                 
Operating:                                
Net earnings   $ 60.1     $ 2.2     $ 225.6     $ 8.8  
Adjustments to reconcile net earnings to net cash provided from operating activities:                                
  Depreciation, depletion and amortization     207.6       213.8       629.1       617.2  
  Gain on disposition of associate and other interests - net     -       -       (11.0 )     -  
  Reversal of impairment charges     -       -       (97.0 )     -  
  Impairment charges     -       139.6       -       139.6  
  Equity in losses of associate and joint ventures     0.1       0.3       1.0       0.2  
  Share-based compensation expense     3.5       3.7       10.1       10.8  
  Finance expense     32.3       31.0       89.3       96.5  
  Deferred tax expense (recovery)     3.7       (46.7 )     (13.5 )     (150.7 )
  Foreign exchange losses (gains) and other     1.6       (23.6 )     (45.0 )     (7.3 )
  Reclamation expense     11.9       -       13.9       -  
  Changes in operating assets and liabilities:                                
    Accounts receivable and other assets     (76.5 )     (55.5 )     (33.4 )     (51.9 )
    Inventories     (60.7 )     (16.9 )     (65.8 )     67.0  
    Accounts payable and accrued liabilities     46.1       40.3       28.3       155.3  
Cash flow provided from operating activities     229.7       288.2       731.6       885.5  
  Income taxes paid     (32.0 )     (22.0 )     (146.4 )     (88.9 )
Net cash flow provided from operating activities     197.7       266.2       585.2       796.6  
                                 
Investing:                                
  Additions to property, plant and equipment     (204.7 )     (153.8 )     (584.3 )     (407.3 )
  Business acquisition     -       -       -       (588.0 )
  Net additions to long-term investments and other assets     (32.9 )     (35.4 )     (48.0 )     (55.5 )
  Net proceeds from the sale of property, plant and equipment     1.5       1.1       6.3       8.0  
  Net proceeds from disposition of associate and other interests     -       -       267.5       -  
  Decrease (increase) in restricted cash     0.4       (0.1 )     (0.7 )     (1.0 )
  Interest received and other     1.9       1.1       5.2       2.6  
Net cash flow used in investing activities     (233.8 )     (187.1 )     (354.0 )     (1,041.2 )
Financing:                                
  Issuance of common shares on exercise of options     -       1.8       0.8       2.8  
  Proceeds from issuance of equity     -       -       -       275.7  
  Proceeds from issuance of debt     494.7       -       494.7       175.0  
  Repayment of debt     (500.0 )     (250.0 )     (500.0 )     (425.0 )
  Interest paid     (28.4 )     (37.2 )     (62.9 )     (70.4 )
  Other     (1.1 )     (3.3 )     (1.6 )     (3.3 )
Net cash flow used in financing activities     (34.8 )     (288.7 )     (69.0 )     (45.2 )
Effect of exchange rate changes on cash and cash equivalents     1.7       (2.2 )     2.9       2.3  
Increase (decrease) in cash and cash equivalents     (69.2 )     (211.8 )     165.1       (287.5 )
Cash and cash equivalents, beginning of period     1,061.3       968.2       827.0       1,043.9  
Cash and cash equivalents, end of period   $ 992.1     $ 756.4     $ 992.1     $ 756.4  
                                 
                                 
...
 
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)   ($ millions)
Americas Fort Knox   Q3 2017   100   7,490   3,228   6,088   0.78   0.26   81%   101,047   101,077   $ 64.8   $ 641   $ 25.4   $ 20.5
Q2 2017   100   5,353   3,069   5,830   0.86   0.26   84%   91,848   91,237     57.9     635     21.4     20.0
Q1 2017   100   5,242   2,933   3,885   0.75   0.23   83%   93,038   94,741     58.5     617     28.0     22.5
Q4 2016   100   9,864   3,235   7,226   0.79   0.28