2020 Q2 highlights:
·Production1 of 571,978 attributable gold equivalent ounces (Au eq. oz.), and sales of 584,477 Au eq. oz.·All Kinross mines continued production during the quarter, as the Company’s comprehensive COVID-19 response plans mitigated operational risk and continued to help protect the health and safety of employees and host communities.·Kinross’ three largest producing mines – Paracatu, Kupol and Tasiast – delivered 63% of total production and were the lowest cost mines in the portfolio, with an average cost of sales of $596 per Au eq. oz.·Reported net earnings2 and adjusted net earnings3 both more than doubled to $195.7 million, or $0.16 per share, and $194.0 million, or $0.15 per share, respectively, compared with Q2 2019.·Operating cash flow of $432.8 million and adjusted operating cash flow3 of $416.9 million, a 30% and 45% increase, respectively, compared with Q2 2019.·Production cost of sales1,3 of $725 per Au eq. oz. and all-in sustaining cost1,3 of $984 per Au eq. oz. sold, both of which are within the Company’s original annual 2020 guidance range.·Attributable margin per Au eq. oz. sold4 increased 53% to $987 per Au eq. oz. compared with Q2 2019, outpacing the 31% increase in average realized gold price to $1,712 per Au oz. compared with Q2 2019.·Cash and cash equivalents of $1,527.1 million and total liquidity of $2.3 billion at June 30, 2020, as both improved quarter-over-quarter. The Company also further improved its debt metrics, including its net debt to EBITDA ratio, and has no debt maturities until September 2021.·While the Company withdrew its full-year guidance as a precautionary measure given the global uncertainties caused by the pandemic, production, cost of sales per ounce, all-in sustaining cost per ounce and capital expenditures are on track to meet Kinross’ original 2020 guidance.·On June 15, 2020, Kinross announced an agreement in principle with the Government of Mauritania to enhance the parties’ partnership.·On July 15, 2020, Kinross announced the results of the Lobo-Marte project pre-feasibility study in Chile, which added 6.4 million Au oz.5 to the Company’s mineral reserve estimates and increased its reserve life index by approximately 2.5 years6.