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Nov. 10, 2021, 5:01 p.m. EST

Kinross reports 2021 third-quarter results

Tasiast mill has re-started and Company on track for strong production growth over next two years

TORONTO, Nov 10, 2021 (GLOBE NEWSWIRE via COMTEX) -- TORONTO, Nov. 10, 2021 (GLOBE NEWSWIRE) -- Kinross Gold Corporation /zigman2/quotes/200423011/delayed CA:K -1.47% /zigman2/quotes/208295151/composite KGC -1.69% ("Kinross" or the "Company") today announced its results for the third-quarter ended September 30, 2021.

(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 pages 20 to 21. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.)

2021 third-quarter highlights:

Q3 2021 results First nine months
2021 results
2021 guidance
(+/- 5%)
Gold equivalent production [1]
(ounces)
483,060 1,579,928 2.1 million
Production cost of sales [1, ] [2]
($ per Au eq. oz.)
$870 $816 $830
All-in sustaining cost [1, ] [2]
($ per Au eq. oz.)
$1,225 $1,084 $1,110
Capital expenditures $231.0 million $640.6 million $900 million
  • Kinross is on track to meet its revised production guidance of 2.1 million Au eq. oz. (+/- 5%) and continues to expect production to increase in 2022 and 2023 to 2.7 million and 2.9 million Au eq. oz. (+/- 5%), respectively. The Company is also on track to meet its revised 2021 cost of sales and all-in sustaining cost guidance, and its capital expenditures guidance.

  • Attributable margins [3] of $920 per Au eq. oz. sold in Q3 2021.

  • Adjusted operating cash flow [2] of $190.5 million, operating cash flow of $269.9 million and free cash flow [2] of $38.9 million in Q3 2021.

  • Reported net loss [4] of $44.9 million, or $0.04 per share, and adjusted net earnings [2] of $90.2 million, or $0.07 per share, in Q3 2021.

  • Cash and cash equivalents of $586.1 million, with totalliquidity of approximately $2.1 billion, at September 30, 2021.

  • The Tasiast mill has re-started at costs lower than original estimates. The mill is on track to ramp up and reach throughput of 21,000 tonnes per day by the end of Q1 2022.

  • The La Coipa Restart and Tasiast 24k projects remain on schedule to be completed in mid-2022 and mid-2023, respectively.

  • The Udinsk pre-feasibility and Lobo-Marte feasibility project studies were completed and reaffirmed the Company's views of both projects as attractive, high-quality assets that can significantly contribute to Kinross' future production profile at low costs.

  • Kinross' Board of Directors declared a quarterly dividend of $0.03 per common share.

  • As of November 10, 2021, Kinross had repurchased and cancelled 8.6 million of its common shares for $50.0 million as part of its share buyback program.

CEO Commentary:
J. Paul Rollinson, President and CEO, made the following comments in relation to 2021 third-quarter results:

"During the third quarter, our portfolio of mines performed well and we are on track to meet our revised production and cost guidance for the year. We maintained our balance sheet strength while enhancing shareholder returns, as we initiated our share buyback program in addition to declaring our quarterly dividend.

"We are pleased to announce that the Tasiast mill has now re-started at costs below original estimates and is ramping back up. We expect that, in December, the mill will achieve sustained throughput levels comparable to the first half of the year. The mill is also on track to reach 21,000 tonnes per day throughput by the end of Q1 2022.

"Our development projects made good progress during the quarter, with La Coipa on track to start production in mid-2022 and Tasiast 24k on schedule to be completed in mid-2023. We also completed studies for our Udinsk project in Russia and Lobo-Marte project in Chile which reaffirmed our views of both projects' strong potential to be significant value generators as large, low cost producers with attractive returns.

"Kinross remains on track to grow its production to 2.7 million ounces next year, and then to 2.9 million ounces in 2023, and is in excellent position to continue delivering value to its shareholders."

Financial results

Summary of financial and operating results

Three months ended Nine months ended
September 30, September 30,
(unaudited, in millions of U.S. dollars, except ounces, per share amounts, and per ounce amounts) 2021 2020 2021 2020
Operating Highlights
Total gold equivalent ounces [(a)]
Produced [(c)] 486,819 607,744 1,591,939 1,755,363
Sold [(c)] 481,959 593,218 1,586,028 1,738,379
Attributable gold equivalent ounces [(a) ]
Produced [(c)] 483,060 603,312 1,579,928 1,742,616
Sold [(c)] 478,459 588,559 1,574,362 1,725,778
Financial Highlights
Metal sales $ 862.5 $ 1,131.3 $ 2,849.9 $ 3,018.3
Production cost of sales $ 421.0 $ 439.4 $ 1,300.9 $ 1,289.2
Depreciation, depletion and amortization $ 208.8 $ 204.8 $ 641.6 $ 608.3
Reversal of impairment charge $ - $ - $ - $ 48.3
Operating earnings $ 72.9 $ 393.4 $ 509.1 $ 907.1
Net (loss) earnings attributable to common shareholders $ (44.9 ) $ 240.7 $ 223.9 $ 559.1
Basic (loss) earnings per share attributable to common shareholders $ (0.04 ) $ 0.19 $ 0.18 $ 0.44
Diluted (loss) earnings per share attributable to common shareholders $ (0.04 ) $ 0.19 $ 0.18 $ 0.44
Adjusted net earnings attributable to common shareholders [(b)] $ 90.2 $ 310.2 $ 439.5 $ 631.7
Adjusted net earnings per share [(b)] $ 0.07 $ 0.25 $ 0.35 $ 0.50
Net cash flow provided from operating activities $ 269.9 $ 544.1 $ 937.9 $ 1,276.5
Adjusted operating cash flow [(b)] $ 190.5 $ 549.6 $ 953.9 $ 1,385.1
Capital expenditures [(d) ] $ 231.0 $ 212.1 $ 640.6 $ 617.8
Free cash flow [(b)] $ 38.9 $ 332.0 $ 297.3 $ 658.7
Average realized gold price per ounce [(b)] $ 1,790 $ 1,908 $ 1,797 $ 1,736
Consolidated production cost of sales per equivalent ounce [(c)] sold [(b)] $ 874 $ 741 $ 820 $ 742
Attributable [(a)] production cost of sales per equivalent ounce [(c)] sold [(b)] $ 870 $ 737 $ 816 $ 738
Attributable [(a)] production cost of sales per ounce sold on a by-product basis [(b)] $ 836 $ 707 $ 787 $ 717
Attributable [(a)] all-in sustaining cost per ounce sold on a by-product basis [(b)] $ 1,205 $ 934 $ 1,062 $ 962
Attributable [(a)] all-in sustaining cost per equivalent ounce [(c)] sold [(b)] $ 1,225 $ 958 $ 1,084 $ 978
Attributable [(a)] all-in cost per ounce sold on a by-product basis [(b)] $ 1,543 $ 1,226 $ 1,388 $ 1,226
Attributable [(a)] all-in cost per equivalent ounce [(c)] sold [(b)] $ 1,552 $ 1,243 $ 1,400 $ 1,237


(a) "Total" includes 100% of Chirano production. "Attributable" includes Kinross' share of Chirano (90%) production and costs, and Manh Choh (70%) costs.
(b) The definition and reconciliation of these non-GAAP financial measures is included on pages 13 to 19.
(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 2021 was 73.45:1 (third quarter of 2020 - 78.68:1). The ratio for the first nine months of 2021 was 69.90:1 (first nine months of 2020 - 90.15:1).
(d) "Capital expenditures" is as reported as "Additions to property, plant and equipment" on the interim condensed consolidated statement of cash flows.


The following operating and financial results are based on 2021 third-quarter gold equivalent production. Production and cost measures are on an attributable basis:

Production [1] : Kinross produced 483,060 Au eq. oz. in Q3 2021, compared with 603,312 Au eq. oz. in Q3 2020, primarily due to lower production at Tasiast as a result of the suspension of milling operations after the mill fire in June 2021.

Average realized gold price [2] : The average realized gold price decreased 6% to $1,790 per ounce compared with $1,908 per ounce for Q3 2020.

Revenue: Revenue was $862.5 million in Q3 2021, a decrease compared with $1,131.3 million in Q3 2020, mainly due to a decrease in gold equivalent ounces sold primarily as a result of lower production, and lower average realized gold price.

Production cost of sales [1] [, ] [2] : Production cost of sales per Au eq. oz. was $870 in Q3 2021, compared with $737 per Au eq. oz. in Q3 2020, mainly due to higher costs at Kupol and Round Mountain.

Production cost of sales per Au oz. on a by-product basis was $836 in Q3 2021, compared with $707 per Au oz. in Q3 2020, based on attributable gold sales of 461,113 and attributable silver sales of 1,274,141 ounces.

Margins [3] : Kinross' attributable margin per Au eq. oz. was $920 for Q3 2021, which decreased compared with the Q3 2020 margin of $1,171 per Au eq. oz.

All-in sustaining cost [1, 2] : All-in sustaining cost per Au eq. oz. was $1,225 for Q3 2021, compared with $958 per Au eq. oz. in Q3 2020, primarily due to the decrease in ounces sold.

Operating cash flow: Adjusted operating cash flow [2] was $190.5 million in Q3 2021, which decreased compared with $549.6 million in Q3 2020, mainly due to the decrease in revenue.

Net operating cash flow was $269.9 million for Q3 2021, compared with $544.1 million in Q3 2020, primarily due to the decrease in operating earnings.

Free cash flow [2] : Free cash flow was $38.9 million in Q3 2021, compared with $332.0 million for Q3 2020, mainly due to lower net operating cash flow.

Earnings: Adjusted net earnings [2] were $90.2 million, or $0.07 per share, for Q3 2021, compared with $310.2 million, or $0.25 per share, for Q3 2020, primarily due to the decrease in revenue.

The temporary suspension of milling operations at Tasiast was a main contributor to the year-over-year decrease in operating earnings, resulting in a reported net loss [4] of $44.9 million, or $0.04 per share, for Q3 2021, compared with reported net earnings of $240.7 million, or $0.19 per share, for Q3 2020.

Capital expenditures: Capital expenditures increased to $231.0 million in Q3 2021 compared to $212.1 million in Q3 2020, primarily due to increased expenditures for development activities at La Coipa, the feasibility study at Lobo-Marte, the pre-feasibility study at Udinsk, and an increase in capital stripping at Tasiast. These increases were partially offset by reduced capital stripping at Bald Mountain and Round Mountain.

Balance sheet strength

As of September 30, 2021, Kinross had cash and cash equivalents of $586.1 million, compared with $675.6 million at June 30, 2021. The decrease during the quarter was mainly due to capital expenditures and the return of capital in the form of dividends and share buybacks, partially offset by operating cash flows.

The Company had additional available credit of $1,563.3 million as of September 30, 2021, for total liquidity of approximately $2.1 billion.

Share buyback update and dividend

Kinross continues to enhance shareholder returns through its share buyback and quarterly dividend programs.

On July 28, 2021, Kinross received approval from the Toronto Stock Exchange to establish a normal course issuer bid program to purchase up to 63,096,676 of its common shares (representing 5% of the Company's issued and outstanding common shares as at July 27, 2021), during the period starting on August 3, 2021 and ending on August 2, 2022.

As of November 10, 2021, Kinross had repurchased and cancelled 8.6 million of its common shares for $50.0 million.

As part of its continuing quarterly dividend program, the Company's Board of Directors declared a dividend of $0.03 per common share payable on December 15, 2021 to shareholders of record as of December 1, 2021.

Tasiast mill re-start update

Kinross has made excellent progress re-starting the Tasiast mill after the fire on June 15, 2021. The new trommel has been installed and mechanical testing at pre-incident throughput levels has been successful. The mill is now ramping up and is processing lower grade stockpile during this phase. In December, the mill is expected to achieve sustained throughput levels comparable to the first half of the year and the site is expected to produce approximately 15,000 Au eq. oz. during Q4 2021.

Mill re-start costs were approximately $20 million, which were below the previously lowered $35 million estimate disclosed in July 2021.

See the following link, or view below, a video of the mill re-start: https://youtu.be/YGgkJnWP-cc

Operating results

The Company's global operations continue to prioritize health and safety, while mitigating potential operational impacts related to the ongoing COVID-19 pandemic.

Mine-by-mine summaries for 2021 third-quarter operating results may be found on pages 8 and 12. Highlights include the following:

Americas

At Paracatu, production was impacted by temporary grade variability encountered during the quarter. Production decreased compared with Q2 2021 mainly due to timing of ounces processed through the mill, which was partially offset by higher mill throughput. Year-over-year, production was higher primarily due to an increase in throughput and recovery, partially offset by lower grades and timing of ounces processed. Cost of sales per ounce sold was higher quarter-over-quarter mainly due to lower production and increased year-over-year due to higher operating waste mined, power costs and inflationary pressures on consumables.

Fort Knox performed well during the quarter, with production increasing and cost of sales per ounce sold decreasing compared with Q2 2021. The quarter-over-quarter production increase was primarily due to more ounces recovered from the heap leach pads and higher mill grades and throughput, while cost of sales per ounce was down mainly as a result of lower operating waste mined and higher production. Both production and cost of sales per ounce were in line year-over-year.

At Bald Mountain, production was higher quarter-over-quarter as the operation mined through the carbonaceous material encountered in Q2 2021 and ounces recovered from the Vantage heap leach pad increased. Production also increased year-over-year due to higher recoveries from the site's heap leach pads. Mining activities were completed in the Vantage pit in August 2021 and activities were focused in the North Area by the end of the quarter. Cost of sales per ounce sold decreased quarter-over-quarter due to higher production, which was partially offset by higher reagent and maintenance costs. Cost of sales per ounce sold increased year-over-year mainly due to higher operating waste mined and higher production taxes, which was partially offset by increased production.

At Round Mountain, production was lower compared with Q2 2021 and Q3 2020 mainly as a result of deferred mining activities in the north wall of the Phase W area after wall instability was detected in Q1 2021. The movement of waste material at the top of the pit to stabilize the wall was completed during the quarter and resulted in unplanned gold recoveries. Cost of sales per ounce sold was higher compared with the previous quarter mainly due to lower production, higher operating waste mined, and higher energy and reagent costs. Higher taxes also contributed to an increase in cost of sales per ounce compared with the previous year. The mine optimization program is on schedule to be completed in Q2 2022.

Russia

At Kupol and Dvoinoye, production was consistent with the previous quarter, and lower year-over-year mainly due to the planned processing of lower-grade stockpiles at Dvoinoye. Cost of sales per ounce sold increased quarter-over-quarter and year-over-year mainly due to higher mining costs.

West Africa

At Tasiast, production was lower quarter-over-quarter and year-over-year due to the suspension of milling as a result of the mill fire on June 15, 2021. Cost of sales per ounce sold was higher for both comparable periods due to lower production. The mill is now ramping up and is expected to return to sustained pre-incident throughput levels in December 2021.

At Chirano, production was slightly lower quarter-over-quarter mainly due to timing of ounces processed through the mill and lower year-over-year primarily due to lower grades, which were partially offset by higher throughput at the mill. Cost of sales per ounce sold increased quarter-over-quarter mainly due to lower production and increased year-over-year mainly due to higher contractor and power costs.

Development projects

Udinsk and Lobo-Marte studies

For information regarding the completed pre-feasibility study for the Udinsk project in Russia and feasibility study for the Lobo-Marte project in Chile, see the news release here: https://www.kinross.com/Kinross-issues-results-of-Udinsk-and-Lobo-Marte-project-studies

The results of the studies reaffirm the projects' potential as significant open pit mines with large production profiles, low costs and attractive returns that are highly leveraged to the gold price. The projects can potentially add a combined 6.7 million Au oz. to Kinross' future production profile and represent a total of 9.7 million Au oz. of the Company's current probable mineral reserve estimates.

Both projects are located in jurisdictions where Kinross has extensive and successful operational experience. The projects have rigorous project plans in place that take into account local environmental considerations, and include robust local community outreach and engagement.

Tasiast 24k

The Tasiast 24k project is advancing well and is on schedule to reach throughput of 21,000 tonnes per day by the end of Q1 2022, and then 24,000 tonnes per day by mid-2023. The first phase of the project is 96% complete and planning for commissioning is well-advanced. The first tests of the power plant have been successful, commissioning is progressing well, and the plant is on schedule to be operational by year-end.

Alaska projects

At the 70%-owned Manh Choh project, feasibility study work is proceeding well, with community engagement and permitting activities also advancing. The study is on schedule to be completed by the end of 2022 and production is expected to commence in 2024.

Mining activities have now commenced at the Gil satellite pits, which are located approximately 13 kilometres east of Fort Knox. The first blast at the site occurred in September and first production is expected before year-end. The Company plans to haul Gil ore to the Fort Knox mill for processing using the mine's existing road network.

La Coipa

The La Coipa Restart project continues to advance well and is on budget and on schedule to commence production in mid-2022, with pre-stripping progressing as planned. Plant refurbishments are approximately 60% complete and mine road construction is now approximately 85% complete. The Company continues to study potential mine life extensions by incorporating adjacent deposits into La Coipa's mine plans and expects to provide an update in Q1 2022.

Company Guidance
The following section of the news release represents forward-looking information and users are cautioned that actual results may vary. Refer to the risks and assumptions contained in the Cautionary Statement on Forward-Looking Information on pages 20 to 21.

The Company is on track to meet its revised 2021 production guidance of 2.1 million Au eq. oz. (+/- 5%). Kinross continues to expect annual production to increase to 2.7 million Au eq. oz. (+/- 5%) in 2022 and 2.9 million Au eq. oz. (+/- 5%) in 2023.

The Company expects to meet its revised 2021 production cost of sales guidance of $830 per Au eq. oz. (+/- 5%) and all-in sustaining cost guidance of $1,110 per Au eq. oz. (+/- 5%).

Kinross remains on track to meet its 2021 capital expenditures guidance of $900 million (+/- 5%).

Conference call details

In connection with this news release, Kinross will hold a conference call and audio webcast on Thursday, November 11, 2021 at 8:00 a.m. EDT to discuss the results, followed by a question-and-answer session. To access the call, please dial:

Canada & US toll-free - (833) 968-2237; Passcode: 6608479
Outside of Canada & US - (825) 312-2059; Passcode: 6608479

Replay (available up to 14 days after the call):

Canada & US toll-free - (800) 585-8367; Passcode: 6608479
Outside of Canada & US - +1 (416) 621-4642; Passcode: 6608479

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 www.kinross.com .

This release should be read in conjunction with Kinross' 2021 third-quarter unaudited Financial Statements and Management's Discussion and Analysis report at www.kinross.com . Kinross' 2021 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 with 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).

Media Contact
Louie Diaz
Vice-President, Corporate Communications
phone: 416-369-6469
louie.diaz@kinross.com

Investor Relations Contact
Chris Lichtenheldt
Vice-President, Investor Relations
phone: 416-365-2761
chris.lichtenheldt@kinross.com


Review of operations

Three months ended September 30, (unaudited)
Gold equivalent ounces
Produced Sold Production cost of sales ($millions) Production cost of sales/equivalent ounce sold
2021 2020 2021 2020 2021 2020 2021 2020
Fort Knox 71,336 72,705 71,482 73,267 $ 67.7 $ 69.5 $ 947 $ 949
Round Mountain 63,242 76,039 61,405 72,717 60.8 49.7 990 683
Bald Mountain 55,559 49,339 52,874 37,492 48.8 32.1 923 856
Paracatu 134,425 131,000 133,924 128,782 103.7 96.6 774 750
Maricunga - 3,132 655 4,442 0.5 1.0 763 225
Americas Total 324,562 332,215 320,340 316,700 281.5 248.9 879 786
Kupol 120,822 128,144 121,798 126,637 81.8 69.2 672 546
Russia Total 120,822 128,144 121,798 126,637 81.8 69.2 672 546
Tasiast 3,847 103,065 4,822 103,295 8.3 65.2 1,721 631
Chirano (100%) 37,588 44,320 34,999 46,586 49.4 56.1 1,411 1,204
West Africa Total 41,435 147,385 39,821 149,881 57.7 121.3 1,449 809
Operations Total 486,819 607,744 481,959 593,218 421.0 439.4 874 741
Less Chirano non-controlling interest (10%) (3,759 ) (4,432 ) (3,500 ) (4,659 ) (4.9 ) (5.6 )
Attributable Total 483,060 603,312 478,459 588,559 $ 416.1 $
433.8 $ 870 $ 737
Nine months ended September 30, (unaudited)
Gold equivalent ounces
Produced Sold Production cost of sales ($millions) Production cost of sales/equivalent ounce sold
2021 2020 2021 2020 2021 2020 2021 2020
Fort Knox 190,453 180,402 189,206 180,500 $ 193.1 $ 200.2 $ 1,021 $ 1,109
Round Mountain 205,456 234,855 207,218 229,519 184.1 157.4 888 686
Bald Mountain 143,854 139,795 142,507 129,462 127.4 110.5 894 854
Paracatu 411,891 394,217 404,209 390,625 295.2 267.7 730 685
Maricunga - 3,132 1,966 6,912 1.4 2.6 712 376
Americas Total 951,654 952,401 945,106 937,018 801.2 738.4 848 788
Kupol 364,929 380,012 365,075 379,432 231.0 225.4 633 594
Russia Total 364,929 380,012 365,075 379,432 231.0 225.4 633 594
Tasiast 155,249 295,481 159,187 295,924 112.8 174.9 709 591
Chirano (100%) 120,107 127,469 116,660 126,005 155.9 150.5 1,336 1,194
West Africa Total 275,356 422,950 275,847 421,929 268.7 325.4 974 771
Operations Total 1,591,939 1,755,363 1,586,028 1,738,379 1,300.9 1,289.2 820 742
Less Chirano non-controlling interest (10%) (12,011 ) (12,747 ) (11,666 ) (12,601 ) (15.6 ) (15.0 )
Attributable Total 1,579,928 1,742,616 1,574,362 1,725,778 $ 1,285.3 $ 1,274.2 $ 816 $ 738



Interim condensed consolidated balance sheets

(unaudited, expressed in millions of U.S. dollars, except share amounts)
As at
September 30, December 31,
2021 2020
Assets
Current assets
Cash and cash equivalents $ 586.1 $ 1,210.9
Restricted cash 11.5 13.7
Accounts receivable and other assets 202.1 122.3
Current income tax recoverable 6.5 29.9
Inventories 1,156.1 1,072.9
1,962.3 2,449.7
Non-current assets
Property, plant and equipment 7,620.4 7,653.5
Goodwill 158.8 158.8
Long-term investments 86.3 113.0
Investment in joint venture 17.8 18.3
Other long-term assets 559.7 537.2
Deferred tax assets 5.9 2.7
Total assets $ 10,411.2 $ 10,933.2
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 482.4 $ 479.2
Current income tax payable 142.3 114.5
Current portion of long-term debt and credit facilities 30.0 499.7
Current portion of provisions 85.0 63.8
Other current liabilities 31.8 49.7
Deferred payment obligation - 141.5
771.5 1,348.4
Non-current liabilities
Long-term debt and credit facilities 1,398.7 1,424.2
Provisions 855.5 861.1
Long-term lease liabilities 39.6 46.3
Other long-term liabilities 119.8 102.4
Deferred tax liabilities 476.9 487.8
Total liabilities $ 3,662.0 $ 4,270.2
Equity
Common shareholders' equity
Common share capital $ 4,471.8 $ 4,473.7
Contributed surplus 10,686.2 10,709.0
Accumulated deficit (8,452.1 ) (8,562.5 )
Accumulated other comprehensive income (loss) (24.9 ) (23.7 )
Total common shareholders' equity 6,681.0 6,596.5
Non-controlling interests 68.2 66.5
Total equity 6,749.2 6,663.0
Total liabilities and equity $ 10,411.2 $ 10,933.2
Common shares
Authorized Unlimited Unlimited
Issued and outstanding 1,256,648,138 1,258,320,461

Interim condensed consolidated statements of operations

(unaudited, expressed in millions of U.S. dollars, except share and per share amounts)
Three months ended Nine months ended
September 30, September 30, September 30, September 30,
2021 2020 2021 2020
Revenue
Metal sales $ 862.5 $ 1,131.3 $ 2,849.9 $ 3,018.3
Cost of sales
Production cost of sales 421.0 439.4 1,300.9 1,289.2
Depreciation, depletion and amortization 208.8 204.8 641.6 608.3
Reversal of impairment charge - - - (48.3 )
Total cost of sales 629.8 644.2 1,942.5 1,849.2
Gross profit 232.7 487.1 907.4 1,169.1
Other operating expense 94.0 43.6 207.7 118.4
Exploration and business development 36.6 24.8 96.0 61.8
General and administrative 29.2 25.3 94.6 81.8
Operating earnings 72.9 393.4 509.1 907.1
Other income (expense) - net 3.6 (3.4 ) (9.0 ) 5.2
Finance income 1.7 0.8 5.2 3.8
Finance expense (19.4 ) (27.4 ) (58.7 ) (85.9 )
Earnings before tax 58.8 363.4 446.6 830.2
Income tax expense - net (104.7 ) (121.8 ) (224.9 ) (269.3 )
Net (loss) earnings $ (45.9 ) $ 241.6 $ 221.7 $ 560.9
Net (loss) earnings attributable to:
Non-controlling interests $ (1.0 ) $ 0.9 $ (2.2 ) $ 1.8
Common shareholders $ (44.9 ) $ 240.7 $ 223.9 $ 559.1
(Loss) earnings per share attributable to common shareholders
Basic $ (0.04 ) $ 0.19 $ 0.18 $ 0.44
Diluted $ (0.04 ) $ 0.19 $ 0.18 $ 0.44
Weighted average number of common shares outstanding
(millions)
Basic 1,261.2 1,258.1 1,260.6 1,256.8
Diluted 1,261.2 1,269.0 1,269.2 1,267.6

Interim condensed consolidated statements of cash flows

(unaudited, expressed in millions of U.S. dollars)
Three months ended Nine months ended
September 30, September 30, September 30, September 30,
2021 2020 2021 2020
Net inflow (outflow) of cash related to the following activities:
Operating:
Net (loss) earnings $ (45.9 ) $ 241.6 $ 221.7 $ 560.9
Adjustments to reconcile net (loss) earnings to net cash provided from operating activities:
Depreciation, depletion and amortization 208.8 204.8 641.6 608.3
Reversal of impairment charge - - - (48.3 )
Share-based compensation expense 2.4 3.1 8.4 10.4
Finance expense 19.4 27.4 58.7 85.9
Deferred tax (recovery) expense (6.8 ) 63.4 (23.6 ) 175.9
Foreign exchange (gains) losses and other 12.6 9.3 47.1 (8.0 )
Changes in operating assets and liabilities:
Accounts receivable and other assets (5.1 ) (40.9 ) (29.4 ) (168.6 )
Inventories (10.4 ) (13.0 ) (18.1 ) 26.3
Accounts payable and accrued liabilities 120.4 78.4 224.3 190.6
Cash flow provided from operating activities 295.4 574.1 1,130.7 1,433.4
Income taxes paid (25.5 ) (30.0 ) (192.8 ) (156.9 )
Net cash flow provided from operating activities 269.9 544.1 937.9 1,276.5
Investing:
Additions to property, plant and equipment (231.0 ) (212.1 ) (640.6 ) (617.8 )
Interest paid capitalized to property, plant and equipment (14.8 ) (16.9 ) (46.5 ) (43.0 )
Acquisitions - (122.5 ) (141.5 ) (250.8 )
Net (additions to) proceeds from the sale of long-term investments and other assets (12.4 ) 2.4 (28.9 ) (0.9 )
Net proceeds from the sale of property, plant and equipment 0.4 1.1 1.0 3.3
Decrease (increase) in restricted cash - net 0.5 0.2 2.2 (22.9 )
Interest received and other - net (1.7 ) 0.7 (0.3 ) 2.4
Net cash flow used in investing activities (259.0 ) (347.1 ) (854.6 ) (929.7 )
Financing:
Proceeds from drawdown of debt - - - 950.0
Repayment of debt - (750.0 ) (500.0 ) (850.0 )
Interest paid (20.0 ) (34.1 ) (46.9 ) (63.1 )
Payment of lease liabilities (8.5 ) (4.0 ) (24.1 ) (13.5 )
Dividends paid to common shareholders (37.8 ) - (113.5 ) -
Repurchase and cancellation of shares (31.8 ) - (31.8 ) -
Other - net (1.0 ) 1.0 7.9 (3.6 )
Net cash flow (used in) provided from financing activities (99.1 ) (787.1 ) (708.4 ) 19.8
Effect of exchange rate changes on cash and cash equivalents (1.3 ) (3.5 ) 0.3 (8.2 )
(Decrease) increase in cash and cash equivalents (89.5 ) (593.6 ) (624.8 ) 358.4
Cash and cash equivalents, beginning of period 675.6 1,527.1 1,210.9 575.1
Cash and cash equivalents, end of period $ 586.1 $ 933.5 $ 586.1 $ 933.5



Operating Summary
Mine Period Ownership Tonnes Ore Mined [ (a)] Ore
Processed (Milled) [(a) ]
Ore
Processed (Heap Leach) [(a)]
Grade (Mill) Grade (Heap Leach) Recovery [(b)(h)] Gold Eq Production [ (e)] Gold Eq Sales [(e)] Production cost of sales Production cost of sales/oz Cap Ex [(g)] DD&A
(%) ('000 tonnes) ('000 tonnes) ('000 tonnes) (g/t) (g/t) (%) (ounces) (ounces) ($ millions) ($/ounce) ($ millions) ($ millions)
Americas Fort Knox Q3 2021 100 8,024 2,221 6,395 0.77 0.20 82% 71,336 71,482 $ 67.7 $ 947 $ 37.4 $ 29.7
Q2 2021 100 9,560 1,939 7,864 0.70 0.22 81% 63,302 62,163 $ 67.7 $ 1,089 $ 18.7 $ 26.7
Q1 2021 100 8,174 1,751 7,396 0.57 0.20 80% 55,815 55,561 $ 57.7 $ 1,038 $ 25.4 $ 22.5
Q4 2020 100 8,456 2,583 7,021 0.61 0.20 80% 57,523 57,849 $ 51.1 $ 883 $ 46.0 $ 23.2
Q3 2020 100 7,202 2,664 5,497 0.67 0.19 83% 72,705 73,267 $ 69.5 $ 949 $ 39.7 $ 27.9
Round Mountain Q3 2021 100 1,531 915 4,442 0.63 0.29 76% 63,242 61,405 $ 60.8 $ 990 $ 23.7 $ 16.3
Q2 2021 100 2,551 1,133 2,552 0.54 0.38 76% 67,928 71,935 $ 60.2 $ 837 $ 20.2 $ 17.4
Q1 2021 100 3,843 976 4,019 0.70 0.46 81% 74,286 73,878 $ 63.1 $ 854 $ 31.3 $ 17.0
Q4 2020 100 6,542 988 6,315 0.92 0.50 83% 89,422 89,709 $ 62.2 $ 693 $ 41.2 $ 15.2
Q3 2020 100 6,085 972 5,884 0.79 0.39 83% 76,039 72,717 $ 49.7 $ 683 $ 39.2 $ 11.6
Bald Mountain Q3 2021 100 5,941 - 5,941 - 0.46 nm 55,559 52,874 $ 48.8 $ 923 $ 7.7 $ 59.4
Q2 2021 100 5,875 - 5,875 - 0.57 nm 36,887 41,383 $ 41.6 $ 1,005 $ 5.2 $ 39.1
Q1 2021 100 2,025 - 2,025 - 0.48 nm 51,408 48,250 $ 37.0 $ 767 $ 8.9 $ 40.2
Q4 2020 100 6,076 - 6,076 - 0.42 nm 51,487 57,087 $ 45.4 $ 795 $ 19.3 $ 44.3
Q3 2020 100 4,922 - 4,922 - 0.56 nm 49,339 37,492 $ 32.1 $ 856 $ 23.4 $ 27.1
Paracatu Q3 2021 100 14,107 15,085 - 0.37 - 76% 134,425 133,924 $ 103.7 $ 774 $ 30.0 $ 44.5
Q2 2021 100 12,624 14,138 - 0.37 - 76% 150,919 143,474 $ 108.7 $ 758 $ 27.5 $ 50.7
Q1 2021 100 12,612 15,372 - 0.38 - 75% 126,547 126,811 $ 82.8 $ 653 $ 20.8 $ 37.7
Q4 2020 100 12,611 12,655 - 0.51 - 77% 148,218 150,881 $ 91.2 $ 604 $ 61.6 $ 58.2
Q3 2020 100 12,468 13,673 - 0.38 - 74% 131,000 128,782 $ 96.6 $ 750 $ 27.2 $ 42.4
Maricunga Q3 2021 100 - - - - - nm - 655 $ 0.5 $ 763 $ - $ 0.3
Q2 2021 100 - - - - - nm - 580 $ 0.4 $ 690 $ - $ 0.1
Q1 2021 100 - - - - - nm - 731 $ 0.5 $ 684 $ - $ 0.1
Q4 2020 100 - - - - - nm 414 2,035 $ 1.1 $ 541 $ - $ 0.1
Q3 2020 100 - - - - - nm 3,132 4,442 $ 1.0 $ 225 $ - $ 0.2
Russia Kupol [(c)(d)(f)] Q3 2021 100 316 425 - 8.29 - 96% 120,822 121,798 $ 81.8 $ 672 $ 5.4 $ 18.3
Q2 2021 100 319 424 - 8.43 - 95% 121,855 121,124 $ 74.5 $ 615 $ 5.5 $ 16.9
Q1 2021 100 312 418 - 8.71 - 94% 122,252 122,153 $ 74.7 $ 612 $ 6.8 $ 18.2
Q4 2020 100 293 432 - 9.24 - 95% 130,731 131,541 $ 79.1 $ 601 $ 15.1 $ 31.0
Q3 2020 100 365 430 - 8.99 - 95% 128,144 126,637 $ 69.2 $ 546 $ 6.1 $ 27.0
West Africa Tasiast Q3 2021 100 822 - - - - 0% 3,847 4,822 $ 8.3 $ 1,721 $ 68.1 $ 21.3
Q2 2021 100 818 1,161 - 1.67 - 95% 62,438 70,695 $ 53.2 $ 753 $ 70.2 $ 54.2
Q1 2021 100 843 1,504 - 1.85 - 96% 88,964 83,670 $ 51.3 $ 613 $ 68.6 $ 48.3
Q4 2020 100 1,206 1,470 - 2.48 - 94% 111,028 107,865 $ 60.8 $ 564 $ 65.0 $ 46.5
Q3 2020 100 1,338 1,244 - 2.78 - 94% 103,065 103,295 $ 65.2 $ 631 $ 50.0 $ 50.2
Chirano - 100% Q3 2021 100 802 881 - 1.54 - 87% 37,588 34,999 $ 49.4 $ 1,411 $ 9.3 $ 17.0
Q2 2021 100 933 862 - 1.54 - 88% 38,625 40,517 $ 53.7 $ 1,325 $ 12.8 $ 19.0
Q1 2021 100 735 821 - 1.81 - 88% 43,894 41,144 $ 52.8 $ 1,283 $ 10.1 $ 21.2
Q4 2020 100 915 801 - 1.75 - 88% 39,121 40,202 $ 45.6 $ 1,134 $ 11.3 $ 13.1
Q3 2020 100 768 815 - 1.87 - 88% 44,320 46,586 $ 56.1 $ 1,204 $ 5.0 $ 16.1
Chirano - 90% Q3 2021 90 802 881 - 1.54 - 87% 33,829 31,499 $ 44.5 $ 1,411 $ 8.4 $ 15.3
Q2 2021 90 933 862 - 1.54 - 88% 34,762 36,465 $ 48.3 $ 1,325 $ 11.5 $ 17.1
Q1 2021 90 735 821 - 1.81 - 88% 39,505 37,030 $ 47.5 $ 1,283 $ 9.1 $ 19.1
Q4 2020 90 915 801 - 1.75 - 88% 35,209 36,182 $ 41.0 $ 1,134 $ 10.2 $ 11.8
Q3 2020 90 768 815 - 1.87 - 88% 39,888 41,927 $ 50.5 $ 1,204 $ 4.5 $ 14.5


(a) Tonnes of ore mined and processed represent 100% Kinross for all periods presented.
(b) 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.
(c) The Kupol segment includes the Kupol and Dvoinoye mines. Mining activities were completed at Dvoinoye in the fourth quarter of 2020.
(d) Kupol silver grade and recovery were as follows: Q3 2021: 72.71 g/t, 87%; Q2 2021: 77.19 g/t, 85%; Q1 2021: 69.95 g/t, 83%; Q4 2020: 65.05 g/t, 84%; Q3 2020: 74.19 g/t, 88%.
(e) 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: Q3 2021: 73.45:1; Q2 2021: 68.05:1; Q1 2021: 68.33:1; Q4 2020: 77.02:1; Q3 2020: 78.68:1.
(f) Dvoinoye tonnes of ore processed and grade were as follows: Q3 2021: 111,060, 6.21 g/t; Q2 2021: 103,607, 7.33 g/t; Q1 2021: 109,559, 6.56 g/t; Q4 2020: 115,998, 9.25 g/t; Q3 2020: 115,054, 9.44 g/t.
(g) "Capital expenditures" is as reported as "Additions to property, plant and equipment" on the interim condensed consolidated statement of cash flows.
(h) "nm" means not meaningful.


Reconciliation of non-GAAP financial measures

The Company has included certain non-GAAP financial measures in this document. These measures are not defined under International Financial Reporting Standards ("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 (reversals), 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 (loss) earnings to adjusted net earnings for the periods presented:

Adjusted Net Earnings
(unaudited, expressed in millions of U.S dollars, except per share amounts) Three months ended Nine months ended
September 30, September 30,
2021 2020 2021 2020
Net (loss) earnings attributable to common shareholders - as reported $ (44.9 ) $ 240.7 $ 223.9 $ 559.1
Adjusting items:
Foreign exchange (gains) losses (6.2 ) 6.5 1.4 (0.9 )
Foreign exchange losses on translation of tax basis and foreign
exchange on deferred income taxes within income tax expense
14.8 42.7 7.4 96.6
Taxes in respect of prior periods 55.3 5.5 79.0 11.6
COVID-19 costs [(a)] 5.1 17.3 24.3 40.8
Round Mountain pit wall stabilization costs 16.1 - 42.7 -
Tasiast mill fire related costs 28.9 - 41.0 -
Tasiast definitive agreement settlement 10.0 - 10.0 -
Reversal of impairment charge [(b)] - - - (48.3 )
U.S. CARES Act net benefit - - - (25.4 )
Tasiast strike costs - 2.3 - 8.3
Other 19.7 (3.1 ) 30.2 (2.9 )
Tax effect of the above adjustments (8.6 ) (1.7 ) (20.4 ) (7.2 )
135.1 69.5 215.6 72.6
Adjusted net earnings attributable to common shareholders $ 90.2 $ 310.2 $ 439.5 $ 631.7
Weighted average number of common shares outstanding - Basic 1,261.2 1,258.1 1,260.6 1,256.8
Adjusted net earnings per share $ 0.07 $ 0.25 $ 0.35 $ 0.50


(a) Includes COVID-19 related labour, health and safety, donations and other support program costs.
(b) During the nine months ended September 30, 2020, the Company recognized a non-cash reversal of impairment charge of $48.3 million related to property, plant and equipment at Lobo-Marte. There was no tax impact of this impairment reversal.


Free cash flow is a non-GAAP measure and is defined as net cash flow provided from operating activities less capital expenditures. The Company believes that this measure, which is used internally to evaluate the Company's underlying cash generation performance and the ability to repay creditors and return cash to shareholders, provides investors with the ability to better evaluate the Company's underlying performance. However, the free cash flow measure is not necessarily indicative of operating earnings or net cash flow from operations as determined under IFRS.

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

Free Cash Flow
(unaudited, expressed in millions of U.S dollars) Three months ended Nine months ended
September 30, September 30,
2021 2020 2021 2020
Net cash flow provided from operating activities - as reported $ 269.9 $ 544.1 $ 937.9 $ 1,276.5
Less: Additions to property, plant and equipment (231.0 ) (212.1 ) (640.6 ) (617.8 )
Free cash flow $ 38.9 $ 332.0 $ 297.3 $ 658.7

Adjusted operating cash flow is a non-GAAP measure and 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, the adjusted operating cash flow measure is 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
(unaudited, expressed in millions of U.S dollars) Three months ended Nine months ended
September 30, September 30,
2021 2020 2021 2020
Net cash flow provided from operating activities - as reported $ 269.9 $ 544.1 $ 937.9 $ 1,276.5
Adjusting items:
Working capital changes:
Accounts receivable and other assets 5.1 40.9 29.4 168.6
Inventories 10.4 13.0 18.1 (26.3 )
Accounts payable and other liabilities, including income taxes paid (94.9 ) (48.4 ) (31.5 ) (33.7 )
(79.4 ) 5.5 16.0 108.6
Adjusted operating cash flow $ 190.5 $ 549.6 $ 953.9 $ 1,385.1

Consolidated production cost of sales per gold equivalent ounce sold is a non-GAAP measure and is defined as production cost of sales as reported on the interim condensed consolidated statement of operations 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
(unaudited, expressed in millions of U.S. dollars,
except ounces and production cost of sales per equivalent ounce)
Three months ended Nine months ended
September 30, September 30,
2021 2020 2021 2020
Production cost of sales - as reported $ 421.0 $ 439.4 $ 1,300.9 $ 1,289.2
Less: portion attributable to Chirano non-controlling interest [(a)] (4.9 ) (5.6 ) (15.6 ) (15.0 )
Attributable [(b)] production cost of sales $ 416.1 $ 433.8 $ 1,285.3 $ 1,274.2
Gold equivalent ounces sold 481,959 593,218 1,586,028 1,738,379
Less: portion attributable to Chirano non-controlling interest [(j)] (3,500 ) (4,659 ) (11,666 ) (12,601 )
Attributable [(b)] gold equivalent ounces sold 478,459 588,559 1,574,362 1,725,778
Consolidated production cost of sales per equivalent ounce sold $ 874 $ 741 $ 820 $ 742
Attributable [(b)] production cost of sales per equivalent ounce sold $ 870 $ 737 $ 816 $ 738

See page 19for details of the footnotes referenced within the table above.

Attributable production cost of sales per ounce sold on a by-product basis is a non-GAAP measure which calculates the Company's non-gold production as a credit against its per ounce production costs, rather than converting its non-gold production into gold equivalent ounces and crediting it to total production, as is the case in co-product accounting. Management believes that this measure provides investors with the ability to better evaluate Kinross' production cost of sales per ounce on a comparable basis with other major gold producers who routinely calculate their cost of sales per ounce using by-product accounting rather than co-product accounting.

The following table provides a reconciliation of attributable production cost of sales per ounce sold on a by-product basis for the periods presented:

Attributable Production Cost of Sales Per Ounce Sold
on a By-Product Basis
(unaudited, expressed in millions of U.S. dollars,
except ounces and production cost of sales per ounce)
Three months ended Nine months ended
September 30, September 30,
2021 2020 2021 2020
Production cost of sales - as reported $ 421.0 $ 439.4 $ 1,300.9 $ 1,289.2
Less: portion attributable to Chirano non-controlling interest [(a)] (4.9 ) (5.6 ) (15.6 ) (15.0 )
Less: attributable [(b)] silver revenue [(c)] (30.7 ) (28.8 ) (84.3 ) (62.7 )
Attributable [(b)] production cost of sales net of silver by-product revenue $ 385.4 $ 405.0 $ 1,201.0 $ 1,211.5
Gold ounces sold 464,607 577,822 1,538,602 1,702,089
Less: portion attributable to Chirano non-controlling interest [(j)] (3,494 ) (4,649 ) (11,646 ) (12,575 )
Attributable [(b)] gold ounces sold 461,113 573,173 1,526,956 1,689,514
Attributable [(b)] production cost of sales per ounce sold on a by-product basis $ 836 $ 707 $ 787 $ 717

See page19 for details of the footnotes referenced within the table above.


In November 2018, the World Gold Council ("WGC") published updates to its guidelines for reporting all-in sustaining costs and all-in costs to address how the costs associated with leases, after a company's adoption of IFRS 16 "Leases", should be treated. The WGC is a market development organization for the gold industry and is an association whose membership comprises leading gold mining companies including Kinross. Although the WGC is not a mining industry regulatory organization, it worked closely with its member companies to develop these non-GAAP measures. Adoption of the all-in sustaining cost and all-in cost metrics is voluntary and not necessarily standard, and therefore, these measures presented by the Company may not be comparable to similar measures presented by other issuers. The Company believes that the all-in sustaining cost and all-in cost measures complement existing measures reported by Kinross.

All-in sustaining cost includes both operating and capital costs required to sustain gold production on an ongoing basis. The value of silver sold is deducted from the total production cost of sales as it is considered residual production. Sustaining operating costs represent expenditures incurred at current operations that are considered necessary to maintain current production. Sustaining capital represents capital expenditures at existing operations comprising mine development costs and ongoing replacement of mine equipment and other capital facilities, and does not include capital expenditures for major growth projects or enhancement capital for significant infrastructure improvements at existing operations.

All-in cost is comprised of all-in sustaining cost as well as operating expenditures incurred at locations with no current operation, or costs related to other non-sustaining activities, and capital expenditures for major growth projects or enhancement capital for significant infrastructure improvements at existing operations.

Attributable all-in sustaining cost and all-in cost per ounce sold on a by-product basis are calculated by adjusting total production cost of sales, as reported on the interim condensed consolidated statement of operations, as follows:

Attributable All-In Sustaining Cost and All-In Cost Per Ounce Sold
on a By-Product Basis
(unaudited, expressed in millions of U.S. dollars,
except ounces and costs per ounce)
Three months ended Nine months ended
September 30, September 30,
2021 2020 2021 2020
Production cost of sales - as reported $ 421.0 $ $ 439.4 $ 1,300.9 $ 1,289.2
Less: portion attributable to Chirano non-controlling interest [(a)] (4.9 ) (5.6 ) (15.6 ) (15.0 )
Less: attributable [(b)] silver revenue [(c)] (30.7 ) (28.8 ) (84.3 ) (62.7 )
Attributable [(b)] production cost of sales net of silver by-product revenue $ 385.4 $ $ 405.0 $ 1,201.0 $ 1,211.5
Adjusting items on an attributable [(b)] basis:
General and administrative [(d)] 29.2 25.3 94.6 81.8
Other operating expense - sustaining [(e)] 2.9 3.2 9.0 8.8
Reclamation and remediation - sustaining [(f)] 11.2 12.1 32.2 38.0
Exploration and business development - sustaining [(g)] 12.1 12.8 30.8 35.1
Additions to property, plant and equipment - sustaining [(h)] 107.0 73.0 231.5 237.3
Lease payments - sustaining [(i)] 7.8 3.8 23.2 12.6
All-in Sustaining Cost on a by-product basis - attributable [(b)] $ 555.6 $ 535.2 $ 1,622.3 $ 1,625.1
Other operating expense - non-sustaining [(e)] 8.5 15.6 27.8 38.9
Reclamation and remediation - non-sustaining [(f)] 0.8 1.2 2.5 3.7
Exploration - non-sustaining [(g)] 24.0 11.7 63.6 25.9
Additions to property, plant and equipment - non-sustaining [(h)] 122.1 138.7 402.8 376.8
Lease payments - non-sustaining [(i)] 0.7 0.2 0.9 0.9
All-in Cost on a by-product basis - attributable [(b)] $ 711.7 $ 702.6 $ 2,119.9 $ 2,071.3
Gold ounces sold 464,607 577,822 1,538,602 1,702,089
Less: portion attributable to Chirano non-controlling interest [(j)] (3,494 ) (4,649 ) (11,646 ) (12,575 )
Attributable [(b)] gold ounces sold 461,113 573,173 1,526,956 1,689,514
Attributable [(b)] all-in sustaining cost per ounce sold on a by-product basis $ 1,205 $ 934 $ 1,062 $ 962
Attributable [(b)] all-in cost per ounce sold on a by-product basis $ 1,543 $ 1,226 $ 1,388 $ 1,226

See page 19 for details of the footnotes referenced within the table above.


The Company also assesses its all-in sustaining cost and all-in cost on a gold equivalent ounce basis. Under these non-GAAP measures, the Company's production of silver is converted into gold equivalent ounces and credited to total production.

Attributable all-in sustaining cost and all-in cost per equivalent ounce sold are calculated by adjusting total production cost of sales, as reported on the interim condensed consolidated statement of operations, as follows:

Attributable All-In Sustaining Cost and All-In Cost
Per Equivalent Ounce Sold
(unaudited, expressed in millions of U.S. dollars,
except ounces and costs per equivalent ounce)
Three months ended Nine months ended
September 30, September 30,
2021 2020 2021 2020
Production cost of sales - as reported $ 421.0 $ 439.4 $ 1,300.9 $ 1,289.2
Less: portion attributable to Chirano non-controlling interest [(a)] (4.9 ) (5.6 ) (15.6 ) (15.0 )
Attributable [(b)] production cost of sales $ 416.1 $ 433.8 $ 1,285.3 $ 1,274.2
Adjusting items on an attributable [(b)] basis:
General and administrative [(d)] 29.2 25.3 94.6 81.8
Other operating expense - sustaining [(e)] 2.9 3.2 9.0 8.8
Reclamation and remediation - sustaining [(f)] 11.2 12.1 32.2 38.0
Exploration and business development - sustaining [(g)] 12.1 12.8 30.8 35.1
Additions to property, plant and equipment - sustaining [(h)] 107.0 73.0 231.5 237.3
Lease payments - sustaining [(i)] 7.8 3.8 23.2 12.6
All-in Sustaining Cost - attributable [(b)] $ 586.3 $ 564.0 $ 1,706.6 $ 1,687.8
Other operating expense - non-sustaining [(e)] 8.5 15.6 27.8 38.9
Reclamation and remediation - non-sustaining [(f)] 0.8 1.2 2.5 3.7
Exploration - non-sustaining [(g)] 24.0 11.7 63.6 25.9
Additions to property, plant and equipment - non-sustaining [(h)] 122.1 138.7 402.8 376.8
Lease payments - non-sustaining [(i)] 0.7 0.2 0.9 0.9
All-in Cost - attributable [(b)] $ 742.4 $