Kinross Gold Corporation
NYSE : KGC
TSX : K

Kinross Gold Corporation

November 02, 2009 18:08 ET

Kinross Reports Third Quarter 2009 Results

Margins, cash flow remain strong

TORONTO, ONTARIO--(Marketwire - Nov. 2, 2009) - Kinross Gold Corporation (TSX:K)(NYSE:KGC) today announced its unaudited results for the third quarter ended September 30, 2009.

This news release contains forward-looking information that is subject to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located on page 6 of this news release. All dollar amounts in this news release are expressed in U.S. dollars, unless otherwise noted.

Highlights

- Gold equivalent production(1) in the third quarter 2009 was 537,440 gold equivalent ounces, a decrease of 3% over the same period last year. Production for the first nine months of 2009 was 1,624,807 ounces, an increase of 26% over the same period last year.

- Revenue for the quarter was $582.3 million, compared to $503.7 million in the third quarter of 2008, an increase of 16%, while revenue for the first nine months was $1.7 billion, a 51% increase year-over-year. The average realized gold price was $956 per ounce sold compared to $857 per ounce sold in the third quarter of 2008. Kinross' attributable margin per ounce sold(2) was $492, an increase of 9% year-over-year.

- Cost of sales per gold equivalent ounce(3) was $464, an increase of 14% compared with Q3 2008. Cost of sales per gold ounce on a by-product basis was $421, compared with $362 the previous year.

- Cash flow from operating activities before changes in working capital(4) was $203.0 million, or $0.29 per share, compared with $183.2 million, or $0.29 per share, over the same period last year. Cash flow from operating activities before changes in working capital was $645.0 million, or $0.93 per share, for the first nine months of 2009.

- Adjusted net earnings(4) were $1.7 million or $0.0 per share, compared with $83.4 million or $0.13 per share for the same period last year. Adjusted net earnings for the first nine months of 2009 were $156.3 million or $0.23 per share. Reported net loss was $21.5 million, or $0.03 per share, compared with net earnings of $64.7 million, or $0.10 per share, for the third quarter of 2008. Both adjusted net earnings and reported net loss include a future income tax expense of $58.6 million on foreign exchange gains related to Paracatu's U.S. dollar debt.

- As previously disclosed, the Company has revised its 2009 production guidance and now expects to produce approximately 2.2 million gold equivalent ounces, primarily due to lower than expected production at the Paracatu expansion. Cost of sales per gold equivalent ounce is expected to be slightly higher at $435-450, primarily due to lower than expected production at the Paracatu expansion.

- The Company started heap leaching at the Fort Knox project in the third quarter, and gold production has commenced on schedule.

- Kinross continues to make progress at its new development projects. A pre-feasibility study is expected to be completed at Lobo-Marte by year-end, and work continues to obtain final authorization from the Ecuadorian government to recommence infill drilling at Fruta del Norte. The Company is in the process of reviewing and optimizing the draft feasibility study on Cerro Casale with its partner. The Maricunga expansion project is proceeding to a feasibility study which will focus on the option of increasing throughput and production at the existing operation by approximately 50%.

(1) Unless otherwise stated, production figures in this release are based on Kinross' share of Kupol production (75%).

(2) Cost of sales per ounce is a non-GAAP measure and is defined as cost of sales as per the financial statements divided by the number of gold equivalent ounces sold, both reduced for Kupol sales attributable to a third-party 25% shareholder.

(3) Reconciliation of non-GAAP financial measures is located on pages 7 and 8 of this news release.

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

CEO Commentary

Tye Burt, President and CEO, made the following comments in relation to the third quarter 2009 results.

"While revenue and cash flow before changes in working capital were higher than the previous year, we are disappointed by other aspects of our results for the third quarter, as they are below our expectations. Challenges at our Paracatu expansion project had a significant impact on our overall production and cost per ounce in the quarter, and we have reduced our overall 2009 production guidance by approximately 6%. We are working diligently to bring performance and production at Paracatu closer to plant design levels by improving flotation and blending mill feed with softer ore, as well as exploring options to increase grinding capacity.

"Our cash flow per share from operations before changes in working capital remained strong, at $0.29, while our margin per ounce sold was up by 9% year-over-year. Comparing the first nine months of 2009 to 2008, production was up by 26%, and cash flow per share before changes in working capital increased by 45%.

"At the Fort Knox project, we began heap leaching in the third quarter and produced first gold on schedule. We are advancing our development projects at Lobo Marte, Fruta del Norte, and Cerro Casale, and have moved to a feasibility study for our Maricunga expansion project, focused on increasing mine production by 50%."

Financial results

Summary of financial and operating results



----------------------------------------------------------------------------

Three months ended Nine months ended
September 30, September 30,
(dollars in millions, except ------------------------------------------
per share and per ounce amounts) 2009 2008 2009 2008
----------------------------------------------------------------------------
Total(a) gold equivalent
ounces(b) - produced 591,067 620,342 1,801,281 1,375,320
Total gold equivalent ounces
- sold 608,574 590,522 1,850,475 1,278,019

Attributable(c) gold
equivalent ounces - produced 537,440 551,510 1,624,807 1,289,326
Attributable(c) gold
equivalent ounces - sold 554,232 533,614 1,664,647 1,221,111

Metal sales $ 582.3 $ 503.7 $ 1,713.1 $ 1,132.6
Cost of sales (excludes
accretion and reclamation
expense, depreciation,
depletion and amortization) $ 271.6 $ 229.6 $ 776.1 $ 552.1
Accretion and reclamation
expense $ 4.7 $ 4.3 $ 13.9 $ 12.9
Depreciation, depletion and
amortization $ 109.7 $ 88.9 $ 337.9 $ 164.2
Operating earnings $ 124.6 $ 136.7 $ 419.7 $ 293.3
Net earnings (loss) $ (21.5) $ 64.7 $ 74.3 $ 161.6
Basic earnings (loss) per
share $ (0.03) $ 0.10 $ 0.11 $ 0.26
Diluted earnings (loss) per
share $ (0.03) $ 0.10 $ 0.11 $ 0.26
Adjusted net earnings (d) $ 1.7 $ 83.4 $ 156.3 $ 187.0
Adjusted net earnings per
share (d) $ 0.00 $ 0.13 $ 0.23 $ 0.30
Cash flow provided from (used
for) operating activities $ 141.9 $ 206.0 $ 479.1 $ 242.6
Cash flow before changes in
working capital (d) $ 203.0 $ 183.2 $ 645.0 $ 393.1
Cash flow before changes in
working capital per share (d) $ 0.29 $ 0.29 $ 0.93 $ 0.64
Average realized gold price
per ounce $ 956 $ 857 $ 926 $ 888
Consolidated cost of sales per
equivalent ounce sold (e) $ 446 $ 389 $ 419 $ 432
Attributable(c) cost of sales
per equivalent ounce sold (e) $ 464 $ 406 $ 439 $ 441
Attributable cost of sales per
ounce sold on a by-product
basis (f) $ 421 $ 362 $ 391 $ 388


(a) " Total" includes 100% of Kupol production.

(b) " 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 ratio for the third quarter of 2009 was 65.35:1, compared with 57.77:1 for the third quarter of 2008 and for the first nine months of 2009 was 67.96:1, compared with 54:05:1 for the first nine months of 2008.

(c) " Attributable" includes Kinross' share of Kupol production (75%) only.

(d) " Adjusted net earnings" , " Adjusted net earnings per share" , " Cash flow before changes in working capital" and " Cash flow before changes in working capital per share" are non-GAAP measures. The reconciliation of these non-GAAP financial measures is located in this news release.

(e) " Consolidated cost of sales per ounce" is a non-GAAP measure and is defined as cost of sales as per the consolidated financial statements divided by the total number of gold equivalent ounces sold.

(f) "Attributable cost of sales per ounce on a by-product basis" is a non-GAAP measure and is defined as cost of sales as per the consolidated financial statements less attributable(c) silver revenue divided by the total number of attributable(c) gold ounces sold.

Kinross produced 537,440 gold equivalent ounces in the third quarter of 2009, a 3% decrease over the 551,510 gold equivalent ounces produced in the third quarter of 2008.

Cost of sales per gold equivalent ounce was $464 compared with $406 per ounce for Q3 2008, an increase of 14%. Cost of sales per gold ounce on a by-product basis was $421 compared with $362 the previous year, based on third quarter 2009 attributable gold sales of 513,492 ounces and attributable silver sales of 2,662,394 ounces.

Revenue from metal sales was $582.3 million, compared with $503.7 million during the same period in 2008, an increase of 16%. The average realized gold price was $956 per ounce, compared with $857 per ounce for the third quarter of 2008. Kinross' margin per gold equivalent ounce sold was $492, an increase of 9% compared with the third quarter of 2008, reflecting a higher gold price for the quarter.

Cash flow from operating activities before changes in working capital(4) was $203.0 million, or $0.29 per share, compared with $183.2 million, or $0.29 per share, for the third quarter of 2008, while debt was reduced by $95.6 million in the quarter. Cash and short-term investments were $533.6 million at September 30, 2009 compared with $525.1 million at December 31, 2008.


Adjusted net earnings(4) were $1.7 million or $0.0 per share, compared with adjusted net earnings of $83.4 million, or $0.13 per share, for the same period last year. Adjustments to net earnings do not include the impact of a future income tax expense of $58.6 million resulting from foreign exchange gains on Paracatu's U.S. dollar debt. Reported net loss was $21.5 million, or $0.03 per share, compared with net earnings of $64.7 million, or $0.10 per share, for the third quarter of 2008.

Capital expenditures were $140.5 million, a decrease of 28% from the same period last year. Exploration and business development expense was $22.2 million, with expensed exploration at $17.3 million and capitalized exploration at $4.8 million.

Operating results

In Chile, the Maricunga and La Coipa operations produced 100,915 gold equivalent ounces at a cost of sales of $487 per ounce, compared with 102,192 gold equivalent ounces at a cost of sales of $576 per ounce for Q3 2008. Gold equivalent ounces sold were down 9% year-over-year. At Maricunga, the cost of sales per ounce was $518 compared to $572, a year-over-year reduction of 9%.

In Brazil, the Paracatu and Crixas operations produced 106,155 gold equivalent ounces at a cost of sales of $696 per ounce, compared with 70,207 gold equivalent ounces and cost of sales of $389 per ounce for the same period last year. Gold equivalent ounces sold increased by 51% year-over-year, as the Paracatu expansion plant produced at a higher rate in the third quarter of 2009 compared to 2008. At the Paracatu expansion plant, production increased slightly over the second quarter of 2009 but was lower than expected, while costs were higher than expected, due to ongoing challenges in achieving targeted recovery levels while maintaining targeted throughput levels, as previously disclosed. In the third quarter, the State Environmental Protection Agency of the State of Minas Gerais (SUPRAM) granted the installation permit (LI) to commence construction of the new Eustaquio tailings dam, and construction of the new dam has commenced. Work has also commenced on the San Antonio dam expansion, known as the Lift 20 project, which is expected to be completed in the fourth quarter of 2010.

In the U.S., the Fort Knox, Round Mountain and Kettle River-Buckhorn operations' gold equivalent production was 169,490 ounces at a cost of sales of $480 per ounce, compared with 164,252 gold equivalent ounces at a cost of sales of $444 per ounce. Gold equivalent ounces sold increased by 7% year-over-year, as Kettle River-Buckhorn, now in full production, was not producing in Q3 2008. At Fort Knox, production was negatively impacted by geotechnical complications in two areas of the pit wall. Modifications were made to the mine plan to improve stability in these areas so that production is focused on higher grade, but harder, portions of the ore body.

Heap leaching began at Fort Knox in the third quarter and initial gold production has commenced. Application of the process solution was delayed by one month due to the impact of inclement weather on completion of the heap liner installation. In order to avoid freezing of the pile over the first winter it is planned to stop stacking ore at very low temperatures.

In Russia, Kinross' share of production at the Kupol mine was 160,880 gold equivalent ounces, including 139,414 ounces of gold and 1,402,817 ounces of silver. In Q3 2008, Kinross' share of production was 206,495 gold equivalent ounces, including 174,656 ounces of gold and 1.8 million ounces of silver. Third quarter production at Kupol was negatively impacted by ground stability issues, and by lower grades. Cost of sales was $278 per ounce, compared to $231 for Kupol for the same period last year. Gold equivalent ounces sold from Kupol were down 5% year-over-year, primarily due to lower production. Ground control conditions have required a modification to the existing stope design and a modification of mining methodology to minimize ground control concerns in the summer months. This plan is currently being developed, and will likely result in slightly reduced production and slightly higher costs per ounce than originally planned for 2010.

Economic completion under the Kupol project financing was achieved in September 2009. This released EastWest Gold from its guarantee, released a $25 million letter of credit, and required Chukotka Mining and Geological Company (CMGC) to repay $89 million in third-party debt and pay a $100 million dividend, of which $75 million was paid to Kinross and $25 million was paid to the State Unitary enterprise of the Chukotsky Autonomous Okrug (Chukotsnab).

Project update and new developments

The forward-looking information contained in this section of the release is subject to the risks and assumptions contained in the Cautionary Statement on Forward-Looking Information on page 6 of this news release.

Lobo-Marte

The initial pre-feasibility study at Lobo-Marte which commenced in June is expected to be completed by year-end. Metallurgical testing has started for the Lobo deposit and results are expected by year-end to support the pre-feasibility study. Engineering and consulting firms have been retained for environmental impact analysis and preparation of project permit documents. Engineering work is progressing as planned.

Fruta del Norte

During the third quarter the Company continued work at its Fruta del Norte project. Fieldwork at the site consisted of environmental baseline studies, activation of water treatment systems, reconstruction of a key bridge on the access road, health and safety training, and education programs for the workforce. The land acquisition program continued to advance, while engineering and metallurgical studies also moved ahead.

The Company is continuing to work with the Ministry of Non-Renewable Natural Resources to obtain final authorization to recommence its infill drilling campaign. The Ministry has advised mining companies that the regulations to the new Ecuadorian Mining Law are scheduled to be issued in early November 2009. It is anticipated that the release of the regulations will facilitate the restart of large scale mining activity in the country.

Cerro Casale

The Company is now in the process of reviewing and optimizing the draft feasibility study on Cerro Casale with Barrick Gold and the technical committee that oversaw the work. The Company expects to release details of the study and file a technical report in the first quarter of 2010, including overall project economics, assumptions, and recommendations. Based on configuration updates currently under review, capital expenditures may be slightly higher than previously indicated and operating expenses slightly lower. However, continued optimization of the project could result in different dynamics. In parallel, permitting and engineering development work is continuing, and the Company expects to spend approximately $50 million in 2010 to support advancing the project.

Maricunga expansion

At Maricunga, an analysis was completed as part of the preliminary feasibility study to define the best option to increase production given the current ore reserve base. The most attractive option involves a 50% increase in ore processing through increasing the capacity of the existing crushing plant and construction of a new primary crusher. With an expansion option defined, the Company has begun an environmental impact analysis and expects to complete a feasibility study in the first half of 2010.

Round Mountain expansion

The Company is progressing with plans to expand the existing Round Mountain pit and heap leach facility, which may extend the current life of mine by up to seven years. A draft environmental impact statement (EIS) was issued at the end of July 2009 and a final EIS is expected to be completed during the first half of 2010. State and local permitting is proceeding as expected, and approvals are also expected during the first half of 2010. A feasibility study for the Gold Hill portion of the expansion is scheduled for completion in the second quarter of 2010.

Outlook

The forward-looking information contained in this section is subject to the risk factors and assumptions contained in the Cautionary Statement on Forward-Looking Information located on page 6 of this news release.

As previously disclosed, the Company has revised its production guidance and now expects to produce approximately 2.2 million gold equivalent ounces for the full year 2009, primarily due to lower than expected production at the Paracatu expansion. Based on year-to-date results, the Company expects cost of sales per gold equivalent ounce guidance to be $435-450.

The Company is revising its regional guidance for Brazil, where production for the full year 2009 is now expected to be 420,000-440,000 gold equivalent ounces at an average cost of sales of $645-670 per ounce. Guidance for all other regions remains as previously stated in the January 7, 2009 news release.

On a by-product accounting basis, Kinross now expects to produce 2.1 million ounces of gold and 12 million ounces of silver. Cost of sales per gold ounce on a by-product accounting basis is expected to be approximately $385--400.

Kinross currently expects its gold equivalent production in 2010 to be similar to its revised forecast for 2009 production. The Company plans to issue comprehensive guidance on 2010 production and costs in January 2010.

Conference call details

Kinross will hold a conference call and audio webcast on Tuesday, November 3, 2009 at 8:30 a.m. ET to discuss the third quarter 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 - 3310 followed by #.

Outside of Canada & US - 1-604-638-9010; Passcode - 3310 followed 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 release should be read in conjunction with Kinross' third quarter 2009 unaudited Financial Statements and the Management's Discussion and Analysis report at www.kinross.com.

About Kinross Gold Corporation

Kinross is a Canadian-based gold mining company with mines and projects in the United States, Brazil, Chile, Ecuador and Russia, employing approximately 5,500 people worldwide. Kinross' strategic focus is to maximize net asset value and cash flow per share through a four-point plan built on: delivering mine and financial performance; attracting and retaining the best people in the industry; achieving operating excellence through the "Kinross Way"; and delivering future value through profitable growth opportunities. Kinross maintains listings on the Toronto Stock Exchange (symbol:K) and the New York Stock Exchange (symbol:KGC).

Cautionary statement on forward-looking information

All statements, other than statements of historical fact, contained or incorporated by reference in this news release, but not limited to, any information as to the future financial or operating performance of Kinross, constitute ''forward-looking information'' or ''forward-looking statements'' within the meaning of certain securities laws, including the provisions of the Securities Act (Ontario) and the provisions for ''safe harbour'' under the United States Private Securities Litigation Reform Act of 1995 and are based on expectations, estimates and projections as of the date of this news release. Forward-looking statements include, without limitation, possible events, statements with respect to possible events, the future price of gold and silver, the estimation of mineral reserves and resources, the realization of mineral reserve and resource estimates, the timing and amount of estimated future production, costs of production, expected capital expenditures, costs and timing of the development of new deposits, success of exploration, development and mining activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. The words ''plans'', ''expects'' or ''does not expect'', ''is expected'', ''budget'', ''scheduled'', ''estimates'', ''forecasts'', ''intends'', ''anticipates'', or ''does not anticipate'', or ''believes'', or variations of such words and phrases or statements that certain actions, events or results ''may'', ''could'', ''would'', ''should'', ''might'', or ''will be taken'', ''occur'' or ''be achieved'' and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Kinross as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions of Kinross contained or incorporated by reference in this news release, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth herein and in our most recently filed Annual Information Form, or as otherwise expressly incorporated herein by reference as well as: (1) there being no significant disruptions affecting operations, whether due to labour disruptions, supply disruptions, power disruptions, damage to equipment or otherwise; (2) permitting, development, operations, expansion and acquisitions at Paracatu (including, without limitation, land acquisitions for and permitting and construction of the new tailings facility) being consistent with our current expectations; (3) development of the Phase 7 pit expansion and the heap leach project at Fort Knox continuing on a basis
consistent with Kinross' current expectations; (4) the viability, permitting and development of the Fruta del Norte deposit being consistent with Kinross' current expectations; (5) political developments in any jurisdiction in which the Company operates being consistent with its current expectations including, without limitation, the implementation of Ecuador's new mining law and related regulations and policies being consistent with Kinross' current expectations; (6) the new feasibility study to be prepared by the joint venture for Cerro Casale, incorporating updated geological, mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors, and permitting, being consistent with the Company's current expectations; (7) the viability, permitting and development of the Lobo-Marte project, including, without limitation, the metallurgy and processing of its ore, being consistent with our current expectations; (8) the exchange rate between the Canadian dollar, Brazilian real, Chilean peso, Russian ruble and the U.S. dollar being approximately consistent with current levels; (9) certain price assumptions for gold and silver; (10) prices for natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; (11) production and cost of sales forecasts meeting expectations; (12) the accuracy of our current mineral reserve and mineral resource estimates; and (13) labour and materials costs increasing on a basis consistent with Kinross' current expectations. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: fluctuations in the currency markets; fluctuations in the spot and forward price of gold or certain other commodities (such as diesel fuel and electricity); changes in interest rates or gold or silver lease rates that could impact the mark-to-market value of outstanding derivative instruments and ongoing payments/receipts under any interest rate swaps and variable rate debt obligations; risks arising from holding derivative instruments (such as credit risk, market liquidity risk and mark-to-
market risk); changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada, the United States, Chile, Brazil, Russia, Ecuador, or other countries in which we do business or may carry on business in the future; business opportunities that may be presented to, or pursued by, us; our ability to successfully integrate acquisitions; operating or technical difficulties in connection with mining or development activities; employee relations; the speculative nature of gold exploration and development, including the risks of obtaining necessary licenses and permits; diminishing quantities or grades of reserves; adverse changes in our credit rating; and contests over title to properties, particularly title to undeveloped properties. In addition, there are risks and hazards associated with the business of gold exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance, or the inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can affect, and could cause, Kinross' actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Kinross. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those made in our other filings with the securities regulators of Canada and the United
States including, but not limited to, the cautionary statements made in the ''Risk Factors'' section of our most recently filed Annual Information Form. These factors are not intended to represent a complete list of the factors that could affect Kinross. Kinross disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.

Key Sensitivities

Approximately 55%-60% of the Company's costs are denominated in U.S. dollars.

A 10% change in foreign exchange could result in an approximate $7 impact in cost of sales per ounce.

A $10 change in the price of oil could result in an approximate $2 impact on cost of sales per ounce.

The impact on royalties of a $100 change in the gold price could result in an approximate $5 impact on cost of sales per ounce.

Other information

Where we say ''we'', ''us'', ''our'', the ''Company'', or ''Kinross'' in this news release, we mean Kinross Gold Corporation and/or one or more or all of its subsidiaries, as may be applicable.

The technical information about the Company's material mineral properties contained in this news release has been prepared under the supervision of Mr. Rob Henderson, an officer of the Company who is a ''qualified person'' within the meaning of National Instrument 43-101.

Reconciliation of non-GAAP financial measures

The Company has included certain non-GAAP financial measures in this document. The Company believes that these measures, together with measures determined in accordance with GAAP, provide investors with an improved ability to evaluate the underlying performance of the Company. The inclusion of these measures are meant to provide additional information and should not be used as a substitute for performance measures prepared in accordance with GAAP. These measures are not necessarily standard and therefore may not be comparable to other issuers.

Adjusted net earnings 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 either non-recurring, or recurring, but of a nature which are not reflective of the Company's underlying performance, such as the impact of foreign exchange gains and losses, reassessment of prior year taxes and non-hedge derivative gains and losses. Management believes that these measures, which are also used internally, provide investors with the ability to better evaluate underlying performance particularly since the excluded items are typically not included in public guidance. The following table provides a reconciliation of net earnings to adjusted net earnings for the periods presented:



GAAP to Adjusted Earnings Reconciliation
-----------------------------------------------
(in US$ millions) Three months ended Nine months ended
September 30 September 30
-----------------------------------------------
2009 2008 2009 2008
-----------------------------------------------

Net earnings (loss) - GAAP $ (21.5) $ 64.7 $ 74.3 $ 161.6
-----------------------------------------------

Adjusting items:
Foreign exchange losses 35.0 (30.6) 86.9 (0.7)
Non-hedged derivatives losses
(gains) 1.5 (11.6) - (24.4)
Losses (gains) on sale of
assets and
investments - net 1.0 (18.4) 0.3 (28.9)
Litigation reserve adjustment (18.5) 19.1 (18.5) 19.1
Impairment - 60.2 - 60.3
Taxes in respect of prior years 4.2 - 13.3 -
-----------------------------------------------
23.2 18.7 82.0 25.4
-----------------------------------------------

Net earnings - Adjusted $ 1.7 $ 83.4 $ 156.3 $ 187.0
-----------------------------------------------
Weighted average number of
common shares outstanding
- Basic 695.0 626.1 690.0 618.4
-----------------------------------------------
Net earnings per share
- Adjusted $ 0.00 $ 0.13 $ 0.23 $ 0.30
-----------------------------------------------


The Company makes reference to a non-GAAP measure for cash flow before changes in working capital and cash flow before changes in working capital per share. Cash flow before changes in working capital is defined as cash flow provided from operating activities before changes in operating assets and liabilities. Working capital can be volatile due to numerous factors. Examples include the timing of tax payments and, in the case of Kupol, a build-up of inventory due to transportation logistics. Management believes that, by excluding working capital changes, this non-GAAP measure provides investors with the ability to better evaluate the cash flow performance of the Company since it excludes the impact of timing issues. The following table provides a reconciliation of cash flow from operations to cash flow from operations before working capital:




GAAP to Cash Flow Before Working Capital Reconciliation
--------------------------------------------------------
(in US$ millions) Three months ended Nine months ended
September 30 September 30
--------------------------------------------------------
2009 2008 2009 2008
--------------------------------------------------------

Cash flow provided
from (used for)
operating activities
- GAAP $ 141.9 $ 206.0 $ 479.1 $ 242.6
--------------------------------------------------------

Adjusting items:
Accounts receivable
and other assets 14.6 15.1 65.0 53.8
Inventories 25.8 36.5 75.2 115.5
Accounts payable
and other liabilities 20.7 (74.4) 25.7 (18.8)
--------------------------------------------------------
61.1 (22.8) 165.9 150.5
--------------------------------------------------------
Cash flow from operations
before working capital $ 203.0 $ 183.2 $ 645.0 $ 393.1
--------------------------------------------------------
Weighted average number of common
shares outstanding - Basic 695.0 626.1 690.0 618.4
--------------------------------------------------------
Cash flow from operations before
working capital changes per share $ 0.29 $ 0.29 $ 0.93 $ 0.64
--------------------------------------------------------


Attributable 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 cost of sales, 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, which is also used internally, provides investors with the ability to better evaluate Kinross' 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 cost of sales per ounce sold on a by-product basis for the periods presented:



Attributable Cost of Sales Per Ounce Sold on a By-Product Basis
---------------------------------------------------------------
(in US$ millions) Three months ended Nine months ended
September 30 September 30
---------------------------------------------
2009 2008 2009 2008
---------------------------------------------
Cost of sales $ 271.6 $ 229.6 $ 776.1 $ 552.1
Less: portion attributable to
Kupol non-controlling interest (14.6) (13.2) (45.0) (13.2)
Less: attributable silver
sales (40.9) (41.3) (133.3) (117.9)
---------------------------------------------
Attributable cost of sales net
of silver by-product revenue $ 216.1 $ 175.1 $ 597.8 $ 421.0
---------------------------------------------

Gold ounces sold 560,536 531,032 1,690,526 1,133,731
Less: portion attributable to
Kupol non-controlling interest (47,044) (47,824) (162,744) (47,824)
---------------------------------------------
Attributable gold ounces sold 513,492 483,208 1,527,782 1,085,907
---------------------------------------------

Attributable cost of sales per
ounce sold on a by-product
basis $ 421 $ 362 $ 391 $ 388


Review of operations

Three months ended September 30,

Gold equivalent
ounces
------------------------------
Produced Sold Cost of sales Cost of sales/oz
(in US$ -----------------------------------------------------------------
millions) 2009 2008 2009 2008 2009 2008 2009 2008
----------------------------------------------------------------------------
Fort
Knox 60,629 100,969 60,935 101,729 $ 36.0 $ 45.1 $ 591 $ 443
Round
Mountain 59,375 63,283 59,007 64,259 31.2 28.6 529 445
Kettle
River
- Buck-
horn
(a) 49,486 - 57,832 - 18.1 - 313 -
------------------------------------------------------------------
US Total 169,490 164,252 177,774 165,988 85.3 73.7 480 444

Kupol
(100%)
(b) 214,507 275,327 217,367 227,632 60.0 52.6 276 231
Julietta
(d) - 8,364 - 8,364 - 7.9 - 945
--------------------------------------------------------------------
Russia
Total 214,507 283,691 217,367 235,996 60.0 60.5 276 256
Paracatu 85,772 47,641 84,720 47,500 64.7 19.8 764 417
Crixas 20,383 22,566 22,176 23,363 9.7 7.8 437 334
--------------------------------------------------------------------
Brazil
Total 106,155 70,207 106,896 70,863 74.4 27.6 696 389
La Coipa
(c) 43,662 48,879 50,127 56,877 22.7 33.0 453 580
Maricunga 57,253 53,313 56,410 60,798 29.2 34.8 518 572
--------------------------------------------------------------------
Chile
Total 100,915 102,192 106,537 117,675 51.9 67.8 487 576
--------------------------------------------------------------------
Operatio
ns
Total 591,067 620,342 608,574 590,522 $ 271.6 $ 229.6 $446 $ 389
Less
Kupol
non
controll
ing
interest
(25%) (53,627)(68,832)(54,342)(56,908) (14.6) (13.2)
--------------------------------------------------------------------
Attribut
able 537,440 551,510 554,232 533,614 $ 257.0 $ 216.4 $464 $ 406
--------------------------------------------------------------------
--------------------------------------------------------------------

Nine months ended September 30,
Gold equivalent
ounces
------------------------------
Produced Sold Cost of sales Cost of sales/oz
(in US$ -----------------------------------------------------------------
millions) 2009 2008 2009 2008 2009 2008 2009 2008
----------------------------------------------------------------------------
Fort
Knox 176,646 251,972 173,802 254,403 $ 103.5 $ 114.8 $ 596 $ 451
Round
Mountain 160,873 192,457 162,905 190,988 85.8 85.5 527 448
Kettle
River
- Buck-
horn
(a) 111,192 - 120,407 - 37.1 - 308 -
--------------------------------------------------------------------

US Total 448,711 444,429 457,114 445,391 226.4 200.3 495 450
Kupol
(100%)
(b) 705,895 343,976 743,314 227,632 187.3 52.6 252 231
Julietta
(d) - 41,094 - 41,099 - 32.3 - 786
--------------------------------------------------------------------

Russia
Total 705,895 385,070 743,314 268,731 187.3 84.9 252 316
Paracatu 245,975 138,215 249,538 142,115 177.3 62.8 711 442
Crixas 52,624 65,506 53,487 64,906 23.0 20.3 430 313
--------------------------------------------------------------------
Brazil
Total 298,599 203,721 303,025 207,021 200.3 83.1 661 401
La Coipa
(c) 174,384 170,148 173,685 185,472 71.1 88.3 409 476
Maricunga 173,692 171,952 173,337 171,404 91.0 95.5 525 557
--------------------------------------------------------------------
Chile
Total 348,076 342,100 347,022 356,876 162.1 183.8 467 515
--------------------------------------------------------------------

Opera-
tions
Total 1,801,281 1,850,475
1,375,320 1,278,019 $ 776.1 $ 552.1 $ 419 $ 432
Less
Kupol
non
controll-
ing
interest(176,474) (185,828)
(25%) (85,994) (56,908) (45.0) (13.2)
--------------------------------------------------------------------

Attribut-
able 1,624,807 1,664,647
1,289,326 1,221,111 $ 731.1 $ 538.9 $ 439 $ 441
--------------------------------------------------------------------
--------------------------------------------------------------------


(a) Kettle River - Buckhorn began operations in the fourth quarter of 2008.

(b) Kupol began operations in the second quarter of 2008.

(c) Cost of sales per ounce for the first nine months of 2008 includes $48
related to the increase in inventory volume due to the asset swap
transaction.

(d) The Julietta mine was disposed of on August 16, 2008.


Consolidated balance sheets

(Unaudited expressed in millions of United States dollars, except share
amounts)
----------------------------------------------------------------------------
As at
-------------------------------
September 30, December 31,
2009 2008
----------------------------------------------------------------------------

Assets
Current assets
Cash, cash equivalents and short-term
investments $ 533.6 $ 525.1
Restricted cash 60.5 12.4
Accounts receivable and other assets 186.0 126.5
Inventories 505.3 437.1
Unrealized fair value of derivative assets 47.2 23.8
-------------------------------
1,332.6 1,124.9
Property, plant and equipment 5,057.0 4,748.0
Goodwill 1,181.9 1,181.9
Long-term investments 236.6 185.9
Future income and mining taxes 3.7 33.9
Unrealized fair value of derivative assets 11.3 8.7
Deferred charges and other long-term assets 104.9 104.2
-------------------------------
$ 7,928.0 $ 7,387.5
-------------------------------
-------------------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 234.2 $ 246.3
Current portion of long-term debt 145.8 167.1
Current portion of reclamation and
remediation obligations 7.8 10.0
Current portion of unrealized fair
value of derivative liabilities 100.0 128.1
-------------------------------
487.8 551.5
Long-term debt 612.4 783.8
Other long-term liabilities 651.1 586.6
Future income and mining taxes 700.9 622.3
-------------------------------
2,452.2 2,544.2
-------------------------------
Non-controlling interest 107.3 56.3
-------------------------------
Convertible preferred shares of subsidiary
company - 10.1
-------------------------------
Common shareholders' equity
Common share capital and common share
purchase warrants 6,443.2 5,873.0
Contributed surplus 165.8 168.5
Accumulated deficit (1,073.7) (1,100.2)
Accumulated other comprehensive loss (166.8) (164.4)
-------------------------------
5,368.5 4,776.9
-------------------------------

-------------------------------
$ 7,928.0 $ 7,387.5
-------------------------------
-------------------------------
Common shares
Authorized Unlimited Unlimited
Issued and outstanding 695,744,099 659,438,293
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Consolidated statement of operations


Unaudited (expressed in millions of United States dollars,
except per share and share amounts)

Three months ended Nine months ended
September 30, September 30,
2009 2008 2009 2008
----------------------------------------------------------------------------
Revenue
Metal sales $ 582.3 $ 503.7 $ 1,713.1 $ 1,132.6
Operating costs and
expenses
Cost of sales
(excludes accretion,
depreciation, depletion
and amortization) 271.6 229.6 776.1 552.1
Accretion and reclamation
expense 4.7 4.3 13.9 12.9
Depreciation,
depletion
and amortization 109.7 88.9 337.9 164.2
----------------------------------------------
196.3 180.9 585.2 403.4
Other operating costs 18.7 0.3 34.6 (5.6)
Exploration and
business development 22.2 19.2 48.9 43.6
General and administrative 30.8 24.7 82.0 72.1
----------------------------------------------

Operating earnings 124.6 136.7 419.7 293.3
Other expense - net (35.5) (29.6) (118.5) (36.2)
----------------------------------------------

Earnings before
taxes and other items 89.1 107.1 301.2 257.1
Income and mining
taxes expense net (89.1) (26.5) (143.8) (72.7)
Equity income
(losses) of associated
companies - net 0.3 (0.4) (6.4) (7.6)
Non-controlling
interest (21.8) (15.4) (76.7) (14.7)
Dividends on
convertible preferred
shares of subsidiary - (0.1) - (0.5)
----------------------------------------------

Net earnings (loss) $ (21.5) $ 64.7 $ 74.3 $ 161.6
----------------------------------------------

Earnings (loss) per
share
Basic $ (0.03) $ 0.10 $ 0.11 $ 0.26
Diluted $ (0.03) $ 0.10 $ 0.11 $ 0.26
Weighted average
number of common
shares outstanding
(millions)
Basic 695.0 626.1 690.0 618.4
Diluted 695.0 631.1 694.7 623.4



Consolidated statements of cash flows

Unaudited (expressed in millions of United States dollars)

Three months ended Nine months ended
September 30, September 30,
2009 2008 2009 2008
----------------------------------------------------------------------------
Net inflow (outflow) of
cash related to the
following activities:
Operating:
Net earnings (loss) $ (21.5) $ 64.7 $ 74.3 $ 161.6
Adjustments to reconcile
net earnings (loss) to net cash
provided from
(used in) operating
activities:
Depreciation, depletion
and amortization 109.7 88.9 337.9 164.2
Accretion and reclamation
expenses 4.7 4.3 13.9 12.9
Accretion of convertible
debt and deferred
financing costs 4.3 4.1 12.7 11.1
Losses (gains) on
disposal of assets and
investments - net 1.0 41.9 0.3 31.4
Equity income (losses) of
associated companies (0.3) 0.4 6.4 7.6
Non-hedge derivative
losses (gains) - net 1.5 (14.1) - (23.5)
Future income and mining
taxes 53.3 2.1 25.5 16.1
Non-controlling interest 21.8 15.4 76.7 14.7
Stock-based compensation
expense 6.5 5.9 20.3 16.6
Foreign exchange gains
(losses) and Other 22.0 (30.4) 77.0 (19.6)
Changes in operating
assets and liabilities:
Accounts receivable and
other assets (14.6) (15.1) (65.0) (53.8)
Inventories (25.8) (36.5) (75.2) (115.5)
Accounts payable and
other liabilities (20.7) 74.4 (25.7) 18.8
--------------------------------------------------
Cash flow provided from
operating
activities 141.9 206.0 479.1 242.6
--------------------------------------------------

Investing:
Additions to property,
plant and equipment (140.5) (194.1) (343.7) (569.1)
Asset purchases - net of
cash acquired - 33.4 (41.4) 33.4
Proceeds from the sale of
long-term investments and
other assets - (1.9) 0.1 (26.3)
Reductions (additions) to
long-term investments and
other assets 3.1 4.7 (172.5) 10.3
Proceeds from the sale of
property, plant and
equipment - 18.2 0.3 28.4
Reductions (additions) to
short-term investments 69.7 226.7 (1.5) (4.7)
Increase in restricted
cash (58.2) (16.4) (48.0) (15.9)
Other (12.3) 0.6 (12.4) 0.3
--------------------------------------------------
Cash flow provided from
(used for)
investing activities (138.2) 71.2 (619.1) (543.6)
--------------------------------------------------

Financing:
Issuance of common shares - - 396.4 -
Issuance of common shares
on exercise of options
and warrants 10.4 0.6 23.0 29.4
Increase in debt 44.4 - 49.8 117.9
Proceeds from issuance of
convertible debentures - - - 449.9
Debt issuance costs - - - (1.6)
Repayment of debt (144.6) (15.0) (230.3) (70.5)
Dividends paid to common
shareholder (34.6) (26.2) (62.4) (51.2)
Dividends paid to
Non-controlling
shareholder (25.8) - (25.8) -
Settlement of derivative
instruments (5.8) (2.1) (14.3) (11.0)
--------------------------------------------------
Cash flow provided from
(used for) financing
activities (156.0) (42.7) 136.4 462.9
--------------------------------------------------
Effect of exchange rate
changes on cash 4.3 (7.3) 10.6 (7.5)
--------------------------------------------------

Increase (decrease) in
cash and cash equivalents (148.0) 227.2 7.0 154.4
Cash and cash
equivalents, beginning of
period 645.6 473.4 490.6 551.3
--------------------------------------------------
Cash and cash
equivalents, end of
period before assets held
for sale $ 497.6 $ 700.6 $ 497.6 $ 705.7
Assets held for sale - 5.1 - -
--------------------------------------------------

Cash and cash
equivalents, end of
period $ 497.6 $ 705.7 $ 497.6 $ 705.7
Cash and cash
equivalents, end of
period $ 497.6 $ 705.7 $ 497.6 $ 705.7
Short-term investments 36.0 14.6 36.0 14.6
--------------------------------------------------
Cash, cash equivalents
and short-term investments $ 533.6 $ 720.3 $ 533.6 $ 720.3
--------------------------------------------------
--------------------------------------------------


----------------------------------------------------------------------------
----------------------------------------------------------------------------
Operating Summary
----------------------------------------------------------------------------
Ore Pro- Gold Eq
Mine Period Ownership cessed(1) Grade Recovery(2) Production
----------------------------------------------------------------------------
('000
(%) tonnes) (g/t) (%) (ounces)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
U.S.A.
----------------------------------------------------------------------------
Q3 2009 100 3,091 0.80 83% 60,629
Fort Q2 2009 100 3,269 0.74 82% 67,391
Knox Q1 2009 100 3,048 0.58 80% 48,626
---------------------------------------------------------------
Q4 2008 100 3,461 0.80 81% 77,133
Q3 2008 100 3,815 0.96 80% 100,969
----------------------------------------------------------------------------
Q3 2009 50 7,792 0.53 nm 59,375
Round Q2 2009 50 5,827 0.58 nm 51,322
Mountain Q1 2009 50 9,668 0.48 nm 50,176
---------------------------------------------------------------
Q4 2008 50 8,219 0.52 nm 54,489
Q3 2008 50 9,447 0.50 nm 63,283
----------------------------------------------------------------------------
Q3 2009 100 82 19.57 95% 49,486
Kettle Q2 2009 100 56 20.26 94% 33,807
River Q1 2009 100 47 19.50 94% 27,899
---------------------------------------------------------------
Q4 2008 100 77 12.29 88% 27,036
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Russia
----------------------------------------------------------------------------
Q3 2009 75 293 20.93 95% 214,507
Q2 2009 75 279 23.80 95% 234,265
Q1 2009 75 293 24.91 95% 257,123
Kupol - 100%---------------------------------------------------------------
(5)Q4 2008 75 286 28.13 95% 282,567
Q3 2008 75 258 26.62 95% 275,327
----------------------------------------------------------------------------
Q3 2009 75 293 20.93 95% 160,880
Q2 2009 75 279 23.80 95% 175,699
Kupol Q1 2009 75 293 24.91 95% 192,842
(5)(6)---------------------------------------------------------------
Q4 2008 75 286 28.13 95% 211,925
Q3 2008 75 258 26.62 95% 206,495
----------------------------------------------------------------------------
Q3 2009 90 - - - -
Q2 2009 90 - - - -
Julietta Q1 2009 90 - - - -
(4)---------------------------------------------------------------
Q4 2008 90 - - - -
Q3 2008 90 21 10.40 94% 6,855
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Brazil
----------------------------------------------------------------------------
Q3 2009 100 11,087 0.37 68% 85,772
Q2 2009 100 9,259 0.44 67% 87,458
Paracatu Q1 2009 100 8,997 0.42 61% 72,745
---------------------------------------------------------------
Q4 2008 100 6,051 0.40 64% 49,941
Q3 2008 100 4,860 0.37 81% 47,641
----------------------------------------------------------------------------
Q3 2009 50 303 4.56 92% 20,383
Q2 2009 50 277 5.03 92% 20,646
Crixas Q1 2009 50 202 3.94 90% 11,595
---------------------------------------------------------------
Q4 2008 50 195 7.44 95% 22,163
Q3 2008 50 208 7.15 94% 22,566
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Chile
----------------------------------------------------------------------------
Q3 2009 100 903 1.16 84% 43,662
Q2 2009 100 1,323 1.12 87% 64,482
La Coipa Q1 2009 100 1,419 1.08 85% 66,240
(3)---------------------------------------------------------------
Q4 2008 100 1,168 1.30 83% 56,145
Q3 2008 100 1,255 1.00 81% 48,879
----------------------------------------------------------------------------
Q3 2009 100 3,885 0.90 nm 57,253
Q2 2009 100 3,996 0.83 nm 59,674
Maricunga Q1 2009 100 3,664 0.87 nm 56,765
Q4 2008 100 3,920 0.82 nm 51,389
Q3 2008 100 3,945 0.77 nm 53,313
----------------------------------------------------------------------------



----------------------------------------------------------------------------
----------------------------------------------------------------------------
Gold Eq Cost of
Mine Period Sales Sales COS/oz Cap Ex DD & A
----------------------------------------------------------------------------
(ounces)($ millions) ($/ounce) ($ millions) ($ millions)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
U.S.A.
----------------------------------------------------------------------------
Q3 2009 60,935 36.0 591 31.2 6.0
Fort Q2 2009 63,443 34.3 541 41.9 6.6
Knox Q1 2009 49,424 33.2 672 23.3 5.7
----------------------------------------------------------------
Q4 2008 76,495 37.6 492 32.8 7.5
Q3 2008 101,729 45.1 443 38.4 8.5
----------------------------------------------------------------------------
Q3 2009 59,007 31.2 529 8.2 6.4
Round Q2 2009 52,912 28.6 541 9.0 4.9
Mountain Q1 2009 50,986 26.0 510 8.6 4.7
----------------------------------------------------------------
Q4 2008 51,664 27.4 530 11.2 4.9
Q3 2008 64,259 28.6 445 7.8 5.3
----------------------------------------------------------------------------
Q3 2009 57,832 18.1 313 8.3 19.5
Kettle Q2 2009 27,414 8.2 299 8.2 12.0
River Q1 2009 35,161 10.8 307 7.7 10.1
----------------------------------------------------------------
Q4 2008 16,296 5.6 344 11.9 5.8
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Russia
----------------------------------------------------------------------------
Q3 2009 217,367 60.0 276 12.3 48.2
Q2 2009 271,133 70.1 259 10.0 59.4
Q1 2009 254,814 57.2 224 6.5 55.6
Kupol - 100%----------------------------------------------------------------
(5)Q4 2008 303,958 64.2 211 7.2 71.4
Q3 2008 227,632 52.6 231 22.4 50.2
----------------------------------------------------------------------------
Q3 2009 163,025 45.4 278 9.2 36.2
Q2 2009 203,350 53.2 262 7.5 49.3
Kupol Q1 2009 191,110 43.6 228 4.9 46.3
(5)(6)----------------------------------------------------------------
Q4 2008 227,968 48.2 211 5.4 59.3
Q3 2008 170,724 39.4 231 16.8 44.1
----------------------------------------------------------------------------
Q3 2009 - - - - -
Q2 2009 - - - - -
Julietta Q1 2009 - - - - -
(4)----------------------------------------------------------------
Q4 2008 - - - - -
Q3 2008 8,364 7.9 945 0.5 1.2
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Brazil
----------------------------------------------------------------------------
Q3 2009 84,720 64.7 764 49.7 10.5
Q2 2009 92,725 64.6 697 24.8 11.9
Paracatu Q1 2009 72,093 48.0 666 10.3 10.6
----------------------------------------------------------------
Q4 2008 41,000 19.6 478 59.6 5.2
Q3 2008 47,500 19.8 417 93.9 4.4
----------------------------------------------------------------------------
Q3 2009 22,176 9.7 437 7.5 2.6
Q2 2009 17,763 7.5 422 6.3 2.3
Crixas Q1 2009 13,548 5.8 428 6.6 1.9
-------------------------------------------------------------
Q4 2008 21,757 5.9 271 7.0 2.8
Q3 2008 23,363 7.8 334 5.2 3.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Chile
----------------------------------------------------------------------------
Q3 2009 50,127 22.7 453 4.6 11.6
Q2 2009 67,296 26.4 392 3.6 14.6
La Coipa Q1 2009 56,262 22.0 391 4.0 17.0
(3)----------------------------------------------------------------
Q4 2008 49,287 26.4 536 5.0 6.5
Q3 2008 56,877 33.0 580 3.5 10.4
----------------------------------------------------------------------------
Q3 2009 56,410 29.2 518 8.0 4.0
Q2 2009 58,704 30.3 516 13.9 4.6
Maricunga Q1 2009 58,223 31.5 541 7.0 4.5
----------------------------------------------------------------
Q4 2008 50,478 30.0 594 3.8 4.5
Q3 2008 60,798 34.8 572 4.5 5.5
----------------------------------------------------------------------------
(1) Ore processed is to 100%, production and costs are to Kinross' account.
(2) Due to the nature of heap leach operations at Round Mountain and
Maricunga, recovery rates cannot be accurately measured on a quarterly
basis.
(3) La Coipa silver grade and recovery were as follows: Q3 (2009) 52.76 g/t
56.7%; Q2 (2009) 55.15g/t 63.0%; Q1 (2009) 64.87g/t 63.6%; YTD (2009)
53.34g/t 61.9%.
(4) Kinross completed the sale of Julietta on August 16, 2008.
(5) Kupol silver grade and recovery were as follows: Q3 (2009) 235.64 g/t
84%; Q2 (2009) 298.68 g/t 83%; Q1 (2009) 286.70 g/t 82%; YTD (2009)
273.25 g/t 83%.
(6) Includes Kinross' share of Kupol at 75%.

Contact Information

  • Media Contact:
    Kinross Gold Corporation
    Steve Mitchell, Vice-President, Corporate Communications
    (416) 365-2726
    steve.mitchell@kinross.com
    or
    Investor Relations Contacts
    Kinross Gold Corporation
    Erwyn Naidoo, Vice-President, Investor Relations
    (416) 365-2744
    erwyn.naidoo@kinross.com
    or
    Kinross Gold Corporation
    Lisa Doddridge
    Director, Investor Relations
    (416) 369-6480
    lisa.doddridge@kinross.com