SOURCE: Kinross Gold Corporation

Kinross Gold Corporation

February 10, 2016 17:00 ET

Kinross Reports 2015 Fourth-Quarter and Full-Year Results

Full-Year 2015 Production at High End of Guidance Range and Costs at Low End; Company Forecasts Record Production and Lower All-In Sustaining Cost in 2016

TORONTO, ON--(Marketwired - February 10, 2016) -  Kinross Gold Corporation (TSX: K) (NYSE: KGC) today announced its results for the fourth-quarter and year-end December 31, 2015.

(This news release contains forward-looking information about expected future events and financial and operating performance of the Company. We refer to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located on page 31 of this release. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.)

2015 fourth-quarter highlights: 

  • Production 1: 623,716 gold equivalent ounces (Au eq. oz.), compared with 672,051 ounces in Q4 2014.
  • Revenue: $706.2 million, compared with $791.3 million in Q4 2014.
  • Production cost of sales 2 : $688 per Au eq. oz., compared with $714 in Q4 2014.
  • All-in sustaining cost 2 : $991 per Au eq. oz. sold, compared with $1,006 in Q4 2014. All-in sustaining cost per gold ounce (Au oz.) sold on a by-product basis was $988 in Q4 2015, compared with $1,001 in Q4 2014.
  • Adjusted operating cash flow 2 : $203.8 million, or $0.18 per share, compared with $217.2 million, or $0.19 per share, in Q4 2014.
  • Adjusted net loss 2,3 : $68.8 million, or $0.06 per share, compared with an adjusted loss of $6.0 million, or $0.01 per share, in Q4 2014.
  • Reported net loss 3 : $841.9 million, or $0.73 per share, compared with a loss of $1,473.5 million, or $1.29 per share, for Q4 2014. The Q4 reported net loss includes a non-cash, after-tax impairment charge of $430.2 million related to property, plant and equipment, and a write down of inventory and other assets of $235.0 million.

2015 full-year highlights:

  • Production 1 : 2,594,652 Au eq. oz. compared with 2,710,390 ounces for full-year 2014.
  • Revenue: $3,052.2 million, compared with $3,466.3 million for full-year 2014.
  • Production cost of sales 2 : $696 per Au eq. oz. compared with $720 for full-year 2014.
  • All-in sustaining cost 2 : $975 per Au eq. oz. sold, compared with $973 for full-year 2014. All-in sustaining cost per Au oz. sold on a by-product basis was $971 for full-year 2015, compared with $965 per Au oz. sold for full-year 2014.
  • Adjusted operating cash flow 2 : $786.6 million, or $0.69 per share, compared with $1,023.8 million, or $0.89 per share, for full-year 2014.
  • Adjusted net loss 2,3 : $91.0 million, or $0.08 per share, compared with adjusted earnings of $131.1 million, or $0.11 per share, for full-year 2014.
  • Reported net loss 3 : $984.5 million, or $0.86 per share, compared with a loss of $1,400.0 million, or $1.22 per share, for full-year 2014.
  • Capital expenditures: $610.0 million, compared with $631.8 million for full-year 2014.
  • Balance sheet: Cash and cash equivalents of $1,043.9 million at year end, compared with $983.5 million at December 31, 20144. The Company paid down debt by $80.0 million in 2015. 

Outlook, Mineral Reserves and Mineral Resources, Exploration update:

  • 2016 Outlook: Kinross expects to produce a record 2.7 - 2.9 million Au eq. oz. at a production cost of sales per Au eq. oz. of $675 - $735 and an all-in sustaining cost per Au eq. oz. of $890 - $990. Total capital expenditures are forecast to be approximately $595 million.
  • Mineral reserves and mineral resources 5 : Proven and probable mineral reserve estimates at year-end 2015 were 34.0 million Au oz. with additions largely offsetting depletion over the year. Measured and indicated mineral resources estimates were 28.6 million Au oz., a 24% increase compared with year-end 2014.
  • Exploration: Exploration activities at La Coipa, Tasiast and Dvoinoye added approximately 1.4 million Au oz. and 43.1 million silver ounces (Ag oz.) to Kinross' estimated measured and indicated mineral resources and 0.13 million Au oz. and 2.1 Ag oz. to its estimated inferred mineral resources.
  • Nevada asset acquisition: On January 11, 2016, Kinross completed the acquisition of Bald Mountain, which includes one of the largest land packages in Nevada, and 50% of Round Mountain, from Barrick Gold for $610 million8 in cash. 

CEO Commentary

J. Paul Rollinson, President and CEO, made the following comments in relation to 2015 fourth-quarter and year-end results:

"In 2015, Kinross continued to deliver consistent and strong operational results. We finished the year at the high end of our production guidance and the low end of our guidance for all-in sustaining costs while recording the lowest cost of sales since 2011. Kinross is well-positioned in today's challenging gold price environment, having generated solid cash flow, reduced debt and prioritized balance sheet strength.

"We also capitalized on an opportunity to strengthen our portfolio by acquiring quality assets in Nevada which are expected to add production and lower overall costs, while providing a clear path to upside, with numerous expansion and brownfield exploration opportunities and ongoing continuous improvement initiatives.

"Our outlook remains strong for 2016, with record production and lower all-in sustaining cost of sales forecasts. We remain focused on reducing costs and delivering against our targets to maintain our excellent track record and build value for our shareholders.

"Looking back over the past four years, we have consistently met our guidance targets, maintained a strong balance sheet, and produced approximately 10 million ounces of gold. Looking forward over the next four years, we expect to produce another 10 million ounces of gold, and intend to maintain the same record of operational dependability and balance sheet strength."

Financial results

Summary of financial and operating results

    Three months ended     Years ended  
    December 31,     December 31,  
(in millions, except ounces, per share amounts, and per ounce amounts)   2015     2014     2015     2014  
Operating Highlights from Continuing Operations                                
Total gold equivalent ounces(a)                                
  Produced(c)     629,528       679,646       2,620,262       2,739,044  
  Sold(c)     638,040       658,730       2,634,867       2,743,398  
                                 
Attributable gold equivalent ounces(a)                                
  Produced(c)     623,716       672,051       2,594,652       2,710,390  
  Sold(c)     632,411       651,498       2,608,870       2,715,358  
                                 
Financial Highlights from Continuing Operations                                
Metal sales   $ 706.2     $ 791.3     $ 3,052.2     $ 3,466.3  
Production cost of sales   $ 439.4     $ 469.2     $ 1,834.8     $ 1,971.2  
Depreciation, depletion and amortization   $ 235.0     $ 229.2     $ 897.7     $ 874.7  
Impairment charges   $ 674.5     $ 1,251.4     $ 699.0     $ 1,251.4  
Operating loss   $ (717.3 )   $ (1,301.4 )   $ (742.9 )   $ (1,027.2 )
Net loss attributable to common shareholders   $ (841.9 )   $ (1,473.5 )   $ (984.5 )   $ (1,400.0 )
Basic loss per share attributable to common shareholders   $ (0.73 )   $ (1.29 )   $ (0.86 )   $ (1.22 )
Diluted loss per share attributable to common shareholders   $ (0.73 )   $ (1.29 )   $ (0.86 )   $ (1.22 )
Adjusted net earnings (loss) attributable to common shareholders(b)   $ (68.8 )   $ (6.0 )   $ (91.0 )   $ 131.1  
Adjusted net earnings (loss) per share(b)   $ (0.06 )   $ (0.01 )   $ (0.08 )   $ 0.11  
Net cash flow provided from operating activities   $ 182.2     $ 179.2     $ 831.6     $ 858.1  
Adjusted operating cash flow(b)   $ 203.8     $ 217.2     $ 786.6     $ 1,023.8  
Adjusted operating cash flow per share(b)   $ 0.18     $ 0.19     $ 0.69     $ 0.89  
Average realized gold price per ounce   $ 1,108     $ 1,201     $ 1,159     $ 1,263  
Consolidated production cost of sales per equivalent ounce(c) sold(b)   $ 689     $ 712     $ 696     $ 719  
Attributable(a) production cost of sales per equivalent ounce(c) sold(b)   $ 688     $ 714     $ 696     $ 720  
Attributable(a) production cost of sales per ounce sold on a by-product basis(b)   $ 676     $ 701     $ 684     $ 705  
Attributable(a) all-in sustaining cost per ounce sold on a by-product basis(b)   $ 988     $ 1,001     $ 971     $ 965  
Attributable(a) all-in sustaining cost per equivalent ounce(c) sold(b)   $ 991     $ 1,006     $ 975     $ 973  
Attributable(a) all-in cost per ounce sold on a by-product basis(b)   $ 1,055     $ 1,162     $ 1,047     $ 1,072  
Attributable(a) all-in cost per equivalent ounce(c) sold(b)   $ 1,055     $ 1,163     $ 1,049     $ 1,077  
                                 
(a)   "Total" includes 100% of Chirano production. "Attributable" includes Kinross' share of Chirano (90%) production.
(b)   The definition and reconciliation of these non-GAAP financial measures is included on pages 21 to 25 of this news release.
(c)   "Gold equivalent ounces" include silver ounces produced and sold converted to a gold equivalent based on a ratio of the average spot market prices for the commodities for each period. The ratio for the fourth quarter of 2015 was 74.78:1, compared with 72.73:1 for the fourth quarter of 2014; year to date 2015 was 73.92:1 compared with 66.29:1 for 2014.
     
     

The following operating and financial results are based on fourth-quarter and year-end 2015 gold equivalent production from continuing operations. Production and cost measures are on an attributable basis:

Production: Kinross produced 623,716 attributable Au eq. oz. in the fourth quarter of 2015, a decrease over the fourth quarter of 2014, due mainly to the temporary curtailment of milling operations at Paracatu in response to a lack of rainfall in southeastern Brazil and lower mill grades at Chirano.

Kinross produced 2,594,652 attributable Au eq. oz. for full-year 2015, which was at the high end of the Company's 2015 guidance range. The 4% decrease in full-year production was due mainly to lower production at Paracatu, Tasiast, Maricunga and Chirano, partially offset by higher production at Fort Knox, Round Mountain and Kupol.

Production cost of sales: Production cost of sales per Au eq. oz.2 declined to $688 for the fourth quarter of 2015, compared with $714 for the fourth quarter of 2014 largely due to lower cost per ounce at Kupol, Round Mountain and Maricunga. Production cost of sales per Au oz. on a by-product basis2 was $676 in Q4 2015, compared with $701 in Q4 2014, based on Q4 2015 attributable gold sales of 613,835 ounces and attributable silver sales of 1,389,110 ounces.

Production cost of sales per Au eq. oz. was $696 for full-year 2015, at the low end of the revised guidance range and a reduction of $24 per ounce compared with $720 for full-year 2014. The full-year decrease was due mainly to a $105 per ounce reduction at Round Mountain and a $83 per ounce reduction at Fort Knox. Production cost of sales per Au oz. on a by-product basis was $684 for full-year 2015, compared with $705 for full-year 2014, based on 2015 full-year attributable1 gold sales of 2,536,294 ounces and attributable silver sales of 5,373,074 ounces.

All-in sustaining cost: All-in sustaining cost per Au eq. oz. sold2 decreased to $991 in Q4 2015, compared with $1,006 in Q4 2014, primarily due to lower production cost of sales. All-in sustaining cost per Au oz. sold on a by-product basis2 was $988 in Q4 2015, compared with $1,001 in Q4 2014.

All-in sustaining cost per Au eq. oz. sold was $975 for full-year 2015, compared with $973 for full-year 2014. The slight increase was due mainly to a decrease in ounces sold and an increase in sustaining capital, offset by lower operating costs. All-in sustaining cost per Au oz. sold on a by-product basis was $971 for full-year 2015, compared with $965 for full-year 2014.

Revenue: Revenue from metal sales was $706.2 million in the fourth quarter of 2015, compared with $791.3 million during the same period in 2014, due mainly to lower gold sales and a lower average realized gold price.

Revenue was $3,052.2 million for full-year 2015, compared with $3,466.3 million for full-year 2014, due mainly to lower gold sales and a lower average realized gold price.

Average realized gold price: The average realized gold price in Q4 2015 declined to $1,108 per ounce, compared with $1,201 per ounce in Q4 2014.The average realized gold price per ounce declined to $1,159 for full-year 2015, compared with $1,263 per ounce for full-year 2014.

Margins: Kinross' attributable margin per Au eq. oz. sold6 was $420 per Au eq. oz. for the fourth quarter of 2015, compared with the Q4 2014 margin of $487 per Au eq. oz. Full-year margin per Au eq. oz. was $463, compared with $543 for full-year 2014.

Operating cash flow: Adjusted operating cash flow2 was $203.8 million for the fourth quarter of 2015, or $0.18 per share, compared with $217.2 million, or $0.19 per share, for Q4 2014. Adjusted operating cash flow for full-year 2015 was $786.6 million, or $0.69 per share, compared with $1,023.8 million, or $0.89 per share, for full-year 2014.

Earnings/loss: Adjusted net loss2,3 was $68.8 million, or $0.06 per share, for Q4 2015, compared with an adjusted net loss of $6.0 million, or $0.01 per share, for Q4 2014. Full-year 2015 adjusted net loss was $91.0 million, or $0.08 per share, compared with earnings of $131.1 million, or $0.11 per share, for full-year 2014.

Reported net loss3 was $841.9 million, or $0.73 per share, for Q4 2015, compared with a loss of $1,473.5 million, or $1.29 per share, in Q4 2014. Full-year 2015 reported net loss was $984.5 million, or $0.86 per share, compared with a loss of $1,400.0 million, or $1.22 per share, for full-year 2014. Reported net loss includes an after-tax, non-cash impairment charge of $430.2 million related to property, plant and equipment at Fort Knox, Tasiast and Round Mountain and a write down of inventory and other assets of $259.5 million. The property, plant and equipment impairment resulted from a decrease in future gold price estimates of $1,100 per ounce for 2016 and 2017, and $1,250 in the long-term. This is a reduction from 2014 impairment test estimates of $1,200 per ounce for 2015 and $1,300 per ounce long-term. 

Capital expenditures: Capital expenditures decreased to $160.7 million for Q4 2015, compared with $189.4 million for the same period last year, due mainly to lower spending at Paracatu and Tasiast.

Capital expenditures for full-year 2015 were $610.0 million, which was below both the revised 2015 guidance and 2014 full-year capital expenditures, mainly as a result of reduced spending at Tasiast and Kupol.

Balance sheet

As of December 31, 2015, Kinross had cash and cash equivalents, excluding restricted cash, of $1,043.9 million, an increase of $60.4 million since December 31, 2014.The Company also had available credit of $1,506.0 million as of year-end 2015.

Kinross had cash and cash equivalents of approximately $600 million and available credit of approximately $1.3 billion after the close of the acquisition of the Nevada assets on January 11, 2016. 

Kinross paid down debt by $80.0 million in 2015. Other than $250 million in senior notes, which are scheduled to be repaid by September 2016, Kinross has no debt maturities until 2019.

Operating results

Mine-by-mine summaries for 2015 fourth-quarter and full-year operating results may be found on pages 16 and 20 of this news release. Highlights include the following:

Americas

The region performed well, coming in at the high end of the production guidance range for 2015 despite issues at Paracatu and Maricunga related to rain. Round Mountain increased production by 16% compared with 2014 due to a continuous improvement initiative that enhanced heap leach performance. Fort Knox also performed well, increasing production compared with 2014 mainly as a result of higher mill grades for the year. At Paracatu, production was lower compared with the previous year as low rainfall in southeastern Brazil temporarily curtailed milling operations in the fourth quarter. Maricunga's production was lower compared with the previous year mainly as a result of heavy rains in March which caused a nine-week suspension of mining and crushing. Kettle River-Buckhorn's production decreased during the year compared with 2014 due to lower grades as the mine continued to wind down operations, which are expected to cease in Q3 2016.

In the fourth quarter, regional production was lower compared with Q4 2014 mainly as a result of lower production at Paracatu, due to lack of sufficient rainfall, and at Fort Knox, as mining transitioned to areas of the pit with lower grades. This was offset by increased quarterly production at Round Mountain compared with Q4 2014. 

The region ended the year below its cost of sales guidance range for 2015. Cost of sales was also lower compared with full-year 2014 mainly as a result of favourable foreign exchange rates at Paracatu and lower oil and consumable costs. Round Mountain, Paracatu and Fort Knox's full-year cost of sales per ounce decreased compared with 2014, however, these were partially offset by higher costs at Maricunga and Kettle River-Buckhorn. During the quarter, cost of sales per ounce for the region was lower compared with Q4 2014, due mainly to lower costs at Maricunga and Round Mountain.

Russia

The region performed strongly in 2015, with production at the high end of guidance and cost of sales per ounce $20 below the low end of the guidance range. The combined Kupol and Dvoinoye operation's full-year production was slightly higher compared with 2014, largely due to an increase in tonnes mined at Dvoinoye. This allowed for the processing of an increased proportion of higher grade Dvoinoye ore to offset lower grades at Kupol. Cost of sales per ounce was lower compared with 2014 mostly as a result of favourable foreign exchange movements and a decrease in diesel costs.

During the fourth quarter, production increased compared with Q4 2014 largely due to an increase in grades, while the region achieved its lowest cost of sales per ounce since 2012, mainly due to increased gold ounces sold and favourable foreign exchange.

West Africa

Production in the region was at the higher end of the guidance range and cost of sales per ounce at the lower end for 2015. On a full-year basis, Tasiast production was lower compared with 2014 due mainly to the planned reduction of dump leach production. Chirano full-year production was lower compared with 2014 due mainly to lower grades as a result of declining contribution from the higher grade Akwaaba underground deposit. In the fourth quarter, Tasiast production was lower compared with Q4 2014 due mainly to the planned decrease in dump leach production, while Chirano Q4 production was lower compared with Q4 2014 due mainly to lower grades. 

Cost of sales per ounce increased compared with 2014 mainly as result of increased power and maintenance costs at Chirano and lower production at both sites. During the quarter, cost of sales per ounce decreased at Tasiast compared with Q4 2014 mainly as a result of lower fuel costs, and lower labour costs due to the headcount reduction in Q3 2015.

Outlook

The following section of the news release represents forward-looking information and users are cautioned that actual results may vary. We refer to the risks and assumptions contained in the Cautionary Statement on Forward-Looking Information on page 31 of this news release.

In 2016, Kinross expects to produce a record 2.7 - 2.9 million Au eq. oz. from its operations, compared with full-year 2015 production of 2.59 million Au eq. oz. The forecast increase is mainly a result of the acquisition of Bald Mountain and the 50% of Round Mountain the Company did not already own offset by grade reductions at Kupol and Chirano, and the expected closure of Kettle River-Buckhorn in Q3 2016. Production guidance also takes into consideration the potential for a temporary curtailment of mill operations at Paracatu due to a lack of rainfall in southcentral Brazil. Based on the significant amount of rain already received in January, the Company does not expect a curtailment in the first half of 2016. 

Production in the second half of 2016 is expected to be higher compared with the first half of the year due mainly to mine sequencing at Tasiast and the seasonal impact on the heap leach at Fort Knox, Bald Mountain and Round Mountain. The lower production during the first half of the year is expected to have a corresponding impact on cost guidance.

Production cost of sales per Au eq. oz. is expected to be in the range of $675 - $735 for 2016, continuing the reduction experienced in 2015, largely as a result of favourable currency and oil movements. The Company has forecast an all-in sustaining cost for 2016 of $890 - $990 per Au eq. oz. sold, and per ounce sold on a by-product basis, which is lower than 2015 full-year guidance.

The table below summarizes the 2016 forecasts for production and average production cost of sales on a gold equivalent and a by-product accounting basis:

     

Accounting basis
 
2016 (forecast)
Gold equivalent basis    
  Production (Au eq. oz.)  2.7 - 2.9 million
  Average production cost of sales per Au eq. oz.  $675 - $735
  All-in sustaining cost per Au eq. oz.  $890 - $990
By-product basis    
  Gold ounces  2.6 - 2.8 million
  Silver ounces  5.3 - 5.8 million
  Average production cost of sales per Au oz.  $665 - $725
     

The following table provides a summary of the 2016 production and production cost of sales forecast by region:

             
             
Region   Forecast 2016 production
(Au eq. oz.)
  Percentage of total forecast production7   Forecast 2016 production cost of sales
$( per Au eq. oz.)
Americas   1.67 - 1.77 million   61%   $730 - $790
West Africa (attributable)*   360,000 - 420,000   14%   $850 - $920
Russia   670,000 - 710,000   25%   $460 - $490
Total   2.7 - 2.9 million   100%   $675 - $735
             
*Based on Kinross' 90% share of Chirano
 

Material assumptions used to forecast 2016 production cost of sales are as follows:

  • a gold price of $1,100 per ounce,
  • a silver price of $15 per ounce,
  • an oil price of $55 per barrel,
  • foreign exchange rates of:
    • 3.75 Brazilian real to the U.S. dollar,
    • 1.25 Canadian dollars to the U.S. dollar,
    • 55 Russian rubles to the U.S. dollar,
    • 650 Chilean pesos to the U.S. dollar,
    • 4.00 Ghanaian cedi to the U.S. dollar, 
    • 300 Mauritanian ouguiya to the U.S. dollar, and
    • 1.10 U.S. dollars to the Euro.

Taking into account existing currency and oil hedges:

  • a 10% change in foreign currency exchange rates would be expected to result in an approximate $15 impact on production cost of sales per ounce; 
  • specific to the Russian ruble, a 10% change in the exchange rate would be expected to result in an approximate $14 impact on Russian production cost of sales per ounce;
  • specific to the Brazilian real, a 10% change in the exchange rate would be expected to result in an approximate $24 impact on Brazilian production cost of sales per ounce;
  • a $10 per barrel change in the price of oil would be expected to result in an approximate $3 impact on production cost of sales per ounce;
  • a $100 change in the price of gold would be expected to result in an approximate $3 impact on production cost of sales per ounce as a result of a change in royalties.

Total capital expenditures for 2016 are forecast to be approximately $595 million (including estimated capitalized interest of approximately $25 million) and is summarized in the table below:

             
             
Region   Forecast 2016 sustaining capital (million)   Forecast 2016 non-sustaining capital (million)   Total forecast capital (million)
Americas   $220   $10   $230
West Africa   $120   $120   $240
Russia   $85   $10   $95
Corporate   $5   $0   $5
Total   $430   $140   $570
Capitalized interest           $25
 TOTAL            $595
             

Sustaining capital includes the following forecast spending estimates:

  • Mine development: $60 million (Americas)
  • Mobile equipment: $50 million (West Africa), $45 million (Americas), $10 million (Russia)
  • Tailings facilities: $40 million (Americas), $40 million (Russia), $15 million (West Africa)
  • Mill facilities: $30 million (Americas), $10 million (West Africa)
  • Leach facilities: $20 million (Americas)

Non-sustaining capital includes the following forecast spending estimates:

  • Tasiast West Branch stripping: $105 million
  • Development projects/studies: $35 million

The 2016 forecast for exploration is approximately $70 million, none of which is expected to be capitalized. 2016 overhead (general and administrative and business development expenses) is expected to be approximately $165 million or 20% less than last year's overhead guidance. Other operating costs are forecast to be approximately $45 million, which includes $15 million for care and maintenance at La Coipa and Kettle River-Buckhorn, as well as an estimated $10 million for closing costs associated with the acquisition of assets in Nevada.

Based on the Company's assumed metal price, oil price and foreign exchange rates, income tax expenses are expected to be nil and taxes paid (net of recoveries) are expected to be approximately $75 million, with both increasing at 23% of any profit resulting from changes in those underlying assumptions. Depreciation, depletion and amortization is forecast to be approximately $375 per Au eq. oz.

Tasiast expansion update

Kinross is finalizing studies on a two-phased expansion plan to realize Tasiast's significant growth potential in the current gold price environment. The two-phased expansion is expected to leverage existing mill infrastructure to optimize the current operation in the near term and lower overall capital costs compared with earlier project forecasts. 

Phase One of the potential expansion contemplates adding incremental grinding capacity to the operation's existing comminution circuit to increase mill throughput from the current 8,000 t/d to 12,000 t/d. Phase Two contemplates further increasing throughput capacity with the installation of additional milling, leaching, thickening and refinery capacity.

The Company expects to complete and provide results of the Phase One feasibility study and the Phase Two pre-feasibility study in late March. The studies are progressing well, as the Company continues to focus on optimizing the potential expansion plan and reducing capital costs. Any potential go-forward decision on the expansion will depend on a range of factors, including the gold price environment and projections, expected economic returns and various technical and other considerations.

Kinross is also continuing to optimize the current Tasiast operation to reduce costs. During the fourth quarter, the Company upgraded the tertiary crushing circuit, automated the secondary crusher feed, optimized grinding media, and completed a comprehensive upgrade of conveyors. These improvements resulted in increased average throughput of 7,500 tpd in Q4 2015, compared with 6,800 tpd in Q3 2015.

Acquisition of quality Nevada assets

On January 11, 2016, Kinross completed its acquisition of 100% of the Bald Mountain gold mine, which includes one of the largest land packages in Nevada, and 50% of Round Mountain the Company did not already own, from Barrick Gold Corporation for $610 million in cash8 under a definitive asset purchase agreement. The cash purchase price is subject to a typical working capital adjustment.

Bald Mountain update

The Bald Mountain integration is proceeding well, with Kinross recently appointing Round Mountain's General Manager (GM) - who has extensive experience in Nevada and with open-pit, heap leach mines - as the new Bald Mountain GM.

Bald Mountain represents a high-quality brownfield opportunity and will be a key aspect of Kinross' 2016 exploration program, with approximately $6.0 million of the exploration budget allocated for the site. The Company has established a new exploration team and initiated drilling to focus on upgrading and adding to the existing estimated mineral resource base. The immediate priority is within the footprint of the active mining areas in extensions to known deposits.

Drilling in the North area of the property will include the Top, Redbird, Winrock and Saga deposits while geological reviews will be conducted for the South area deposits including Yankee and Vantage (see Appendix A: Figure 7). Drilling in the South area will commence as soon as the permitting process is completed, which is expected mid-2016. Both the North and South areas are 100% Kinross owned.

At the Kinross-Barrick 50-50 joint venture area, the Company will perform a review of the site geoscience data in addition to completing targeted field work with the objective of developing geological models and generating new targets. The Company will also consider drilling some priority targets already identified by Barrick.

Russia projects update

The Company has completed a pre-feasibility study and is advancing the development of the Moroshka project, located approximately four kilometres east of Kupol and within the Kupol licence area (Appendix A: Figure 4). The Company expects to commence mining in 2018 to process ore in the Kupol mill.

At the September Northeast target, located approximately 15 kilometres northwest of the Dvoinoye mine, (Appendix A: Figure 5) material is currently being fast tracked to production, expected in late 2017, through a trial mining of bulk samples approved under terms of the exploration license.

For more information on exploration results at Kupol and Dvoinoye, see page 13 of this news release.

Non-cash impairment

The Company completed its annual assessment of the carrying value of its cash generating units (CGU) for the year-ended December 31, 2015, and as a result, recorded an after-tax, non-cash impairment charge of $430.2 million. The impairment charge resulted from reduced future gold price estimates and included charges of $240.2 million at Fort Knox, $147.0 million at Tasiast and $43.0 million at Round Mountain related to property, plant and equipment. The impairment charge was a result of a reduction in future gold price estimates to $1,100 per ounce for 2016 and 2017, and $1,250 in the long-term, down from $1,200 per ounce for 2015 and $1,300 per ounce long-term in the 2014 impairment test.

The Company also recorded inventory and other asset write-downs of $259.5 million primarily due to a change in accounting estimates for supplies inventory and a write-down of low-grade stockpiles and dump leach inventory at Tasiast and stockpiles at Maricunga.

Board update

The Board of Directors of Kinross has appointed Mr. Ian Atkinson as a Director. Mr. Atkinson has more than 40 years of experience in the mining industry and was most recently the President and CEO, and a Director, of Centerra Gold. Mr. Atkinson has contributed to the discovery of several major mineral deposits and been involved in a number of large global mining projects in his career, and has also held executive management positions with Hecla Mining Company and Battle Mountain Gold. Mr. Atkinson has extensive background in exploration, project development, and mergers and acquisitions.

Mr. John K. Carrington, who has been a Kinross Board member since 2005, has decided to retire and will not stand for re-election at the Company's next annual meeting of shareholders on May 11, 2016. Kinross' Board of Directors and management team would like to thank Mr. Carrington for his many contributions and his distinguished directorship on the Board 

2015 Mineral Reserves and Mineral Resources update

(See also the Company's detailed Annual Mineral Reserve and Mineral Resource Statement estimated as at December 31, 2015 and explanatory notes starting at page 26.)

In preparing the Company's 2015 year-end mineral reserves and mineral resource estimates as of December 31, 2015, Kinross has maintained gold price assumptions used since 2011: $1,200 per ounce for mineral reserves and $1,400 per ounce for mineral resources. Kinross continued to focus on estimated higher margin, lower cost ounces, and maintained its fully-loaded costing methodology.

Proven and Probable Mineral Reserves 9

Kinross' total estimated proven and probable gold reserves of 34.0 million ounces at year-end 2015, which include estimated gold reserves from the recently acquired assets in Nevada, was largely maintained compared with the previous year's 34.4 million ounces, as additions largely offset depletions. The slight net year-over-year decrease was mainly as a result of depletion across the Company's portfolio and revised pit designs at Maricunga. This was offset in part by the acquisition of assets in Nevada, which added 1.8 million Au oz., including a net increase of 91 Au koz. at Round Mountain on a 100% basis, and the net addition of 0.21 million estimated Au oz. at Chirano, as gold ounces from Akoti were upgraded into reserves.

Proven and probable silver reserves at year-end 2015 were estimated at approximately 41.0 million ounces, a net decrease of 3.0 million ounces from year-end 2014, primarily due to production depletion. Silver reserves were estimated using a silver price assumption of $17.00 per ounce.

Proven and probable copper reserves at year-end 2015 were estimated at 1.4 billion pounds, unchanged from year-end 2014. Copper reserves, which are exclusively at Cerro Casale, were estimated using a copper price assumption of $2.00 per pound.

Measured and Indicated Mineral Resources 9

Kinross' total estimated measured and indicated mineral resources at year-end 2015, which include mineral reserves from the recently acquired Bald Mountain and the 50% of Round Mountain Kinross did not already own, increased by approximately 5.5 million Au oz. to approximately 28.6 million Au oz. compared with year-end 2014. The 24% net increase in estimated mineral resources was mainly as a result of the acquisition of assets in Nevada, which added 4.2 million Au oz., and additions of 0.87 million Au oz. at La Coipa, the majority of which was from exploration results at Phase 7 and Catalina, and 0.3 million Au oz. at Tasiast from the Tamaya deposit, 0.28 million Au oz. at Maricunga and 0.26 million Au oz. at Paracatu. The increase in estimated mineral resources was offset by a reduction of 0.47 million Au oz. at Chirano, mainly as a result of reclassification of Au oz. from mineral resources to mineral reserves. 

Measured and indicated silver resource estimates more than doubled to 73.1 million ounces, assuming a $20.00 per ounce silver price, mainly as a result of additions at La Coipa, the acquisition of 50% of Round Mountain Kinross did not already own, increases at the Gold Hill deposit at Round Mountain, and additions at Kupol. 

Inferred Mineral Resources 9

Kinross' total estimated inferred gold resources at year-end 2015 were approximately 4.7 million ounces, a net increase of approximately 0.7 million ounces compared with year-end 2014, primarily due to the addition of Bald Mountain.

Exploration update

During 2015, the Company continued to prioritize brownfield projects and exploration within the existing footprint of the majority of Kinross mines and surrounding districts. During the year, exploration activities at La Coipa, Tasiast and Dvoinoye added 1,394.7 Au koz. and 43,120 Ag koz. to Kinross' estimated measured and indicated mineral resources and 126 Au koz. and 2,144 Ag koz. to its estimated inferred mineral resources9. Highlights include:

  • Tasiast: Measured and indicated mineral resource estimates totaling 335.2 Au koz. and an inferred mineral resource estimate of 55.5 Au koz. were defined at the Tamaya target at the Tasiast Sud license.
  • La Coipa: A measured and indicated mineral resource estimate of 328 Au koz. and 7,885 Ag koz. and an inferred mineral resources of 70.5 Au koz. and 2,142 Ag koz. was defined at the Catalina deposit, located less than one kilometre southeast of the Phase 7 deposit.
  • Dvoinoye: A high-grade indicated mineral resource estimate of 67.7 Au koz. at an average grade of 32.3 g/t was defined at September Northeast, located 15 kilometres west-northwest of the Dvoinoye mine.
  • Chirano: Drilling contributed to an extension of gold mineralization approximately 200 metres to the south and 300 metres at depth of the Suraw resource.
  • Bald Mountain: Exploration in 2016 will focus on expanding the existing estimated mineral resource base and initiating exploration for new deposits at this recently acquired high-quality brownfield exploration opportunity.

A summary of the 2015 highlights is presented below. Additional details may be found in the Appendices. Appendix A provides illustrations, captions, and accompanying explanatory notes, and Appendix B provides drilling results and location data corresponding to the figures below.

Appendix A: http://www.kinross.com/files/annual/Exploration-Update-YE-Disclosure-2015_Appendix-A.pdf
Appendix B: www.kinross.com/files/annual/Exploration-Disclosure-2015-Appendix-B.xlsx

La Coipa

As part of the La Coipa10 pre-feasibility (PFS) study completed in 2015, an oxide measured and indicated mineral resource of 664.2 Au koz. at 1.6 g/t and 35,235.6 Ag koz. at 85.8 g/t was estimated at the Phase 7 deposit9.

Phase 7 Pompeya deposit Mineral Resource estimates (gold):

Classification   Tonnes
(kt)
  Grade
(Au g/t)
  Ounces
(Au koz)
Measured & Indicated   12,774.5   1.6   664.2
             

Phase 7 Pompeya deposit Mineral Resource estimates (silver):

Classification   Tonnes
(kt)
  Grade
(Ag g/t)
  Ounces
(Ag koz)
Measured & Indicated   12,774.5   85.8   35,235.5
             

At Catalina, additional core drilling was conducted as infill and step-out drilling, following up on 2014 results. The 2015 results, which were not included in the La Coipa PFS, combined with previous years' positive drill intersections, led to the definition of the following oxide mineral resource estimates9:

Catalina Mineral Resource estimates (gold):

Classification   Tonnes
(kt)
  Grade
(Au g/t)
  Ounces
(Au koz)
Measured & Indicated   3,571.6   2.9   327.6
Inferred   1,477.4   1.5   70.5
             

Catalina Mineral Resource estimates (silver):

Classification   Tonnes
(kt)
  Grade
(Ag g/t)
  Ounces
(Ag koz)
Measured & Indicated   3,571.6   68.7   7,885.4
Inferred   1,477.4   45.1   2,142.1
             

The Catalina deposit is located less than one kilometre southeast of Phase 7 and occurs beneath 150 to 200 metres of overburden and young volcanic cover. Additional infill drilling is planned in 2016 at Catalina to upgrade and potentially expand estimated mineral resource ounces.

A three-kilometre long prospective NW-SE corridor, which hosts the Phase 7 and Catalina deposits, continued to deliver encouraging exploration results in 2015 (Appendix A: Figure 1). In addition to Catalina, several encouraging drill intersections were returned from a number of targets over this sector, including Pompeya NE (oxide), Pompeya SE (sulfide) and Catalina South (sulfide).

A follow-up drill program is planned in 2016 to confirm and extend mineralization over this corridor and grow the mineral resource estimates. The most significant drill results from 2015 at La Coipa include (for full results and explanatory notes see Appendix B):

La Coipa significant down-hole drill intercepts*

Hole ID   Target   From
(m)
  To
(m)
  Int.
(m)
  Au
(g/t)
  Ag
(g/t)
  Au Eq.
(g/t)
PMP15D130   Pompeya NE   82   110   28   2.0   58.1   2.9
including       100   102   2   4.8   51.0   5.5
PMP15D124   Pompeya SE   128   268   140   2.0   17.7   2.2
including       174   196   22   5.9   17.1   6.1
PMP15D126   Pompeya SE   168   206.7   38.7   3.1   9.0   3.2
including       186.3   194.5   8.2   8.6   18.7   8.9
CAT15D061   Catalina South   394   400   6   9.2   11.3   9.4
CAT15D063   Catalina South   314   410   96   1.0   31.2   1.5
CAT15D065   Catalina South   378   383.9   5.9   13.4   35.2   13.9
CAT15D075   Catalina South   374   396   22   9.8   42.9   10.4
                             

*Drill intercepts were not corrected to the true width

Tasiast

At Tasiast Sud, approximately 15 kilometres south of the Tasiast mine area, step-out and infill core and reverse circulation (RC) drilling continued at the Tamaya deposit, which is centered around the Tasiast shear zone (Appendix A: Figure 2). The 2015 drilling, together with the previous years' results, led to the definition of the following mineral resource estimates9:

Tamaya Mineral Resource estimates:

Classification   Tonnes
(kt)
  Grade
(Au g/t)
  Ounces
(Au koz)
Measured & Indicated   8,344.8   1.3   335.2
Inferred   1,853.6   0.9   55.5
             

The Tamaya deposit is centered around the Tasiast shear zone and remains open at depth and partially along strike. Additional step out drilling will be considered in 2016, depending on the results of an ongoing mineral resource update and a high level review of the deposit's potential viability. The structural trend hosting Tamaya remains under explored and is considered highly prospective for the definition of new mineralization. Geochemical auger sampling and RC drilling are planned over the Tamaya structure and other target areas in the Tasiast Sud License.

Near-mine exploration drilling was completed at various targets around the Tasiast mine which led to the identification of near-surface mineralization at West Branch South and Prolongation East. Kinross is now shifting some exploration focus to high grade mineralization identified in favourable geological settings below and peripheral to the open pits.

Over the Aouèouat Area (Tmeimichat and Imkebdene exploration licenses), 2015 results from surface geochemical sampling and drilling, combined with previous years' results, led to the definition of five modest low-grade near-surface mineralized zones over a strike length of approximately 10 kilometres, immediately north of the El Gaicha Mine Lease.

Chirano

In 2015, drilling continued along the mine trend (Appendix A: Figure 3), mainly targeting extensions to open pit and underground deposits, including Suraw and Akwaaba. At Suraw, significant gold mineralization was extended 200 metres south of the existing measured and indicated resource estimates of 186.4 Au koz.at 5.1 g/t Au9 and also 300 metres down dip. Significant results from 2015 drilling include (for full results and explanatory notes see Appendix B):

Suraw significant true width drill intercepts:

Hole ID   From   To   Int.
(m)
  Au
(g/t)
CHRC-2135D   735.8   745.8   10.0   11.9
CHRC-2159D   731.0   750.6   19.6   4.2
CHRC-2159DW1   884.2   892.5   8.3   7.9
CHRC-2306D   472.4   483.0   10.6   7.2
CHRC-2303D   425.8   433.0   7.2   5.7
including   425.8   427.5   1.7   14.5
including   432.4   433.0   0.6   24.0
                 

Drill spacing outside the current existing estimated mineral resources at Suraw is currently too wide to support a mineral resource estimate, however, 2015 results demonstrate the upside potential of the deposit. Assessment of the potential economic viability of the Suraw mineralized zones will continue in 2016, with further drilling planned to confirm geometry, continuity and grade of the mineralization.

Additional drilling of the Akwaaba orebody has delineated potential extension of the mineralization approximately 100 metres down dip, below the current reserve limits. An infill underground drill program will be considered in 2016 to better define the orebody extension and evaluate economic viability. Significant results from 2015 include (for full results and explanatory notes see Appendix B):

Akwaaba significant true width drill intercepts:

Hole ID   From   To   Int.
(m)
  Au
(g/t)
CHRC-2158D   1,123.1   1,131.2   8.1   4.7
CHRC-2158DW1   1,008.0   1,015.1   7.1   9.5
CHRC-2193DW1   957.2   961.7   4.5   13.8
CHRC-2208D   933.3   939.0   5.7   5.3
                 

In addition to the positive results at Suraw and Akwaaba, there are multiple organic growth opportunities along the eight-kilometre long mine trend. Continued drilling is required in 2016, targeting potential expansion of these known deposits.

RC and selective core drilling were also carried out on near-surface targets in proximity to the Chirano mine and within the Chirano district. Four target areas were drilled during 2015 and encouraging results were encountered at two targets, of which the Mag-Hinge area, located approximately 12 kilometres south of the mine, warrants further drilling in 2016. In addition, other new district targets will be drilled in 2016.

Kupol

A pre-feasibility study was completed at Moroshka, located approximately four kilometres east of Kupol and within the Kupol licence area (Appendix A: Figure 4). The Moroshka mineral resource estimate was converted to a proven and probable mineral reserve of 181.6 Au koz. at 10.1 g/t and 2,063.0 Ag koz. at 114.9 g/t9. Follow-up drilling completed in 2015 on the satellite Providence vein, discovered in 2014 less than one kilometre south of Moroshka, determined that the vein was too small to contribute to the economics of Moroshka.

2016 exploration at Kupol will continue between the Kupol mine and Moroshka, where several near-mine targets have been defined. Furthermore, Kinross is advancing with early stage exploration within an approximate 100 km radius around the Kupol mine.

Dvoinoye

Further infill drilling and close spaced channel sampling was completed over the September Northeast target, located approximately 15 kilometres northwest of the Dvoinoye mine (Appendix A: Figure 5). This work led to the definition of a near-surface, high-grade measured and indicated resource estimate of 67.7 Au koz. at 32.3 g/t9. This material is currently being fast tracked to production through a trial mining of bulk samples approved under terms of the exploration license.

September Northeast Mineral Resource estimates 9 :

Classification   Tonnes
(Kt)
  Grade
(Au g/t)
  Ounces
(Au koz)
Measured & Indicated   65.3   32.3   67.7
             

At Dvoinoye Zone 1, located two kilometres east of the Dvoinoye mine, 2015 drilling confirmed the continuity and grade of a mineralized vein at the bottom of a historically mined open pit (Appendix A: Figure 6). The vein is defined over a strike length of 250 metres, with thickness ranging from 0.9 to 11.3 metres and extends to a depth of 75 metres. A mineral resource estimation is expected in early 2016. Significant results from 2015 include (for full results and explanatory notes see Appendix B):

Dvoinoye Zone 1 significant down-hole drill intercepts:

Hole ID   From   To   Int.
(m)
  Au
(g/t)
  Ag
(g/t)
DV15-1-001   184.1   196.2   12.1   24.5   13.8
including   193.9   194.3   0.4   279.0   141.4
DV15-1-001   202.0   203.8   1.8   41.6   2.0
DV15-1-002   207.6   212.9   5.3   12.6   3.6
including   211.1   212.0   0.8   36.2   13.9
DV15-1-003   213.4   223.0   9.6   7.6   4.6
including   220.8   221.8   1.0   33.5   19.7
DV15-1-007   180.2   183.5   3.3   11.0   8.0
                     

*Drill intercepts were not corrected to the true width

Conference call details

In connection with the release, Kinross will hold a conference call and audio webcast on Thursday, February 11, 2016 at 8 a.m. ET to discuss the results, followed by a question-and-answer session. To access the call, please dial:

Canada & US toll-free - 1-800-319-4610
Outside of Canada & US - 1-604-638-5340
UK toll-free: 0808-101-2791

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

Canada & US toll-free - 1-800-319-6413; Passcode - 00179 followed by #.
Outside of Canada & US - 1-604-638-9010; Passcode - 00179 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' 2015 year-end Financial Statements and Management's Discussion and Analysis report at www.kinross.com. Kinross' 2015 year-end 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. Kinross maintains listings on the Toronto Stock Exchange (TSX: K) and the New York Stock Exchange (NYSE: KGC).

Review of operations

Three months ended December 31,   Gold equivalent ounces                      
    Produced     Sold     Production cost of sales $(millions)     Production cost of sales/equivalent ounce sold
    2015     2014     2015     2014     2015     2014     2015   2014
                                                     
Fort Knox   87,561     99,734     87,426     99,636     $ 62.6     $ 66.6     $ 716   $ 668
Round Mountain   51,034     37,746     52,882     37,133       37.0       32.2       700     867
Kettle River - Buckhorn   19,301     24,735     19,601     24,849       14.6       19.7       745     793
Paracatu   113,547     133,534     117,796     127,991       89.2       97.8       757     764
Maricunga   54,948     60,918     56,440     58,845       52.6       60.8       932     1,033
Americas Total   326,391     356,667     334,145     348,454       256.0       277.1       766     795
                                                     
Kupol   191,308     183,750     195,465     179,722       91.3       92.6       467     515
Russia Total   191,308     183,750     195,465     179,722       91.3       92.6       467     515
                                                     
Tasiast   53,706     63,277     52,146     58,236       49.9       57.2       957     982
Chirano (100%)   58,123     75,952     56,284     72,318       42.2       42.3       750     585
West Africa Total   111,829     139,229     108,430     130,554       92.1       99.5       849     762
                                                     
Operations Total   629,528     679,646     638,040     658,730       439.4       469.2       689     712
Less Chirano non-controlling interest (10%)   (5,812 )   (7,595 )   (5,629 )   (7,232 )     (4.2 )     (4.3 )            
Attributable Total   623,716     672,051     632,411     651,498     $ 435.2     $ 464.9     $ 688   $ 714
                                                     
                                             
Years ended December 31,   Gold equivalent ounces                      
    Produced     Sold     Production cost of sales $(millions)     Production cost of sales/equivalent ounce sold
    2015     2014     2015     2014     2015     2014     2015   2014
                                                     
Fort Knox   401,553     379,453     402,104     408,472     $ 252.8     $ 291.0     $ 629   $ 712
Round Mountain   197,818     169,839     195,781     166,441       146.9       142.3       750     855
Kettle River - Buckhorn   97,368     123,382     97,576     123,262       81.6       83.6       836     678
Paracatu   477,662     521,026     484,732     512,327       374.3       418.2       772     816
La Coipa   -     -     -     1,365       -       1.7       -     1,245
Maricunga   212,155     247,216     214,055     247,469       216.1       235.9       1,010     953
Americas Total   1,386,556     1,440,916     1,394,248     1,459,336       1,071.7       1,172.7       769     804
                                                     
Kupol   758,563     751,101     764,613     750,998       362.8       380.5       474     507
Russia Total   758,563     751,101     764,613     750,998       362.8       380.5       474     507
                                                     
Tasiast   219,045     260,485     216,040     252,668       220.6       252.2       1,021     998
Chirano (100%)   256,098     286,542     259,966     280,396       179.7       165.8       691     591
West Africa Total   475,143     547,027     476,006     533,064       400.3       418.0       841     784
                                                     
Operations Total   2,620,262     2,739,044     2,634,867     2,743,398       1,834.8       1,971.2       696     719
Less Chirano non-controlling interest (10%)   (25,610 )   (28,654 )   (25,997 )   (28,040 )     (18.0 )     (16.6 )            
Attributable Total   2,594,652     2,710,390     2,608,870     2,715,358     $ 1,816.8     $ 1,954.6     $ 696   $ 720

Consolidated balance sheets

(expressed in millions of United States dollars, except share amounts)            
             
    As at  
    December 31,     December 31,  
    2015     2014  
             
Assets                
   Current assets                
    Cash and cash equivalents   $ 1,043.9     $ 983.5  
    Restricted cash     10.5       41.3  
    Accounts receivable and other assets     109.2       170.4  
    Current income tax recoverable     123.3       115.2  
    Inventories     1,005.2       1,276.7  
          2,292.1       2,587.1  
   Non-current assets                
    Property, plant and equipment     4,593.7       5,409.4  
    Goodwill     162.7       162.7  
    Long-term investments     83.1       111.0  
    Investments in associate and joint venture     157.1       156.8  
    Other long-term assets     370.2       417.9  
    Deferred tax assets     76.5       106.5  
Total assets   $ 7,735.4     $ 8,951.4  
                 
Liabilities                
   Current liabilities                
    Accounts payable and accrued liabilities   $ 379.6     $ 421.9  
    Current income tax payable     6.4       19.2  
    Current portion of long-term debt     249.5       60.0  
    Current portion of provisions     50.3       43.1  
    Current portion of unrealized fair value of derivative liabilities     16.0       60.2  
          701.8       604.4  
   Non-current liabilities                
    Long-term debt     1,731.9       1,998.1  
    Provisions     720.8       780.9  
    Other long-term liabilities     148.7       207.2  
    Deferred tax liabilities     499.0       469.0  
Total liabilities     3,802.2       4,059.6  
                 
Equity                
  Common shareholders' equity                
    Common share capital   $ 14,603.5     $ 14,587.7  
    Contributed surplus     239.2       239.0  
    Accumulated deficit     (10,922.1 )     (9,937.6 )
    Accumulated other comprehensive loss     (31.3 )     (46.1 )
Total common shareholders' equity     3,889.3       4,843.0  
  Non-controlling interest     43.9       48.8  
Total equity     3,933.2       4,891.8  
Total liabilities and equity   $ 7,735.4     $ 8,951.4  
                 
Common shares                
  Authorized     Unlimited       Unlimited  
  Issued and outstanding     1,146,540,188       1,144,576,474  
                 
                 
                 

Consolidated statements of operations

(expressed in millions of United States dollars, except per share and share amounts)        
    Years ended  
    December 31,     December 31,  
    2015     2014  
                 
Revenue                
  Metal sales   $ 3,052.2     $ 3,466.3  
                 
Cost of sales                
  Production cost of sales     1,834.8       1,971.2  
  Depreciation, depletion and amortization     897.7       874.7  
  Impairment charges     699.0       1,251.4  
Total cost of sales     3,431.5       4,097.3  
Gross loss     (379.3 )     (631.0 )
  Other operating expense     76.2       111.8  
  Exploration and business development     108.0       105.6  
  General and administrative     179.4       178.8  
Operating loss     (742.9 )     (1,027.2 )
  Other income (expense) - net     (20.3 )     (215.5 )
  Equity in earnings (losses) of associate and joint venture     3.2       (5.8 )
  Finance income     8.3       11.2  
  Finance expense     (96.0 )     (80.1 )
Loss before tax     (847.7 )     (1,317.4 )
  Income tax expense - net     (141.7 )     (109.7 )
Loss from continuing operations after tax     (989.4 )     (1,427.1 )
Earnings from discontinued operation after tax     -       233.5  
Net loss     (989.4 )     (1,193.6 )
                 
Net loss from continuing operations attributable to:                
  Non-controlling interest   $ (4.9 )   $ (27.1 )
  Common shareholders   $ (984.5 )   $ (1,400.0 )
Net loss attributable to:                
  Non-controlling interest   $ (4.9 )   $ (27.1 )
  Common shareholders   $ (984.5 )   $ (1,166.5 )
                 
Loss per share from continuing operations attributable to common shareholders                
  Basic   $ (0.86 )   $ (1.22 )
  Diluted   $ (0.86 )   $ (1.22 )
                   
Loss per share attributable to common shareholders                
  Basic   $ (0.86 )   $ (1.02 )
  Diluted   $ (0.86 )   $ (1.02 )
                   
Weighted average number of common shares outstanding (millions)                
  Basic     1,146.0       1,144.3  
  Diluted     1,146.0       1,144.3  
                   
                   

Consolidated statements of cash flows

(expressed in millions of United States dollars)            
    Years ended  
    December 31,     December 31,  
    2015     2014  
Net inflow (outflow) of cash related to the following activities:                
                 
Operating:                
Loss from continuing operations   $ (989.4 )   $ (1,427.1 )
Adjustments to reconcile loss from continuing operations to net cash provided from operating activities:                
  Depreciation, depletion and amortization     897.7       874.7  
  Impairment charges     699.0       1,251.4  
  Impairment of investments     7.6       158.1  
  Equity in (earnings) losses of associate and joint venture     (3.2 )     5.8  
  Non-hedge derivative (gains) losses - net     (1.5 )     5.1  
  Share-based compensation expense     17.1       26.2  
  Finance expense     96.0       80.1  
  Deferred tax expense (recovery)     53.0       (13.8 )
  Foreign exchange losses and other     18.2       45.8  
  Reclamation expense (recovery)     (7.9 )     17.5  
  Changes in operating assets and liabilities:                
    Accounts receivable and other assets     91.0       26.9  
    Inventories     63.5       (59.4 )
    Accounts payable and accrued liabilities     27.9       52.1  
Cash flow provided from operating activities     969.0       1,043.4  
  Income taxes paid     (137.4 )     (185.3 )
Net cash flow of continuing operations provided from operating activities     831.6       858.1  
Net cash flow of discontinued operations used in operating activities     -       (8.8 )
Investing:                
  Additions to property, plant and equipment     (610.0 )     (631.8 )
  Net additions to long-term investments and other assets     (59.7 )     (55.5 )
  Net proceeds from the sale of property, plant and equipment     2.3       30.5  
  Decrease in restricted cash     30.8       17.7  
  Interest received and other     4.0       4.5  
Net cash flow of continuing operations used in investing activities     (632.6 )     (634.6 )
Net cash flow of discontinued operations provided from investing activities     1.0       148.2  
Financing:                
  Issuance of common shares on exercise of options     -       0.1  
  Proceeds from issuance of debt     22.5       913.0  
  Repayment of debt     (102.5 )     (980.1 )
  Interest paid     (48.8 )     (20.6 )
  Settlement of derivative instruments     -       (2.0 )
  Other     (2.9 )     (4.6 )
Net cash flow of continuing operations used in financing activities     (131.7 )     (94.2 )
Net cash flow of discontinued operations used in financing activities     -       -  
Effect of exchange rate changes on cash and cash equivalents of continuing operations     (7.9 )     (19.7 )
Increase in cash and cash equivalents     60.4       249.0  
Cash and cash equivalents, beginning of period     983.5       734.5  
Cash and cash equivalents, end of period   $ 1,043.9     $ 983.5  
                 
                 
Operating Summary                           
  Mine Period   Ownership   Tonnes Ore Mined (1)   Ore
Processed (Milled) (1)
  Ore
Processed (Heap Leach) (1)
  Grade (Mill)   Grade (Heap Leach)   Recovery (2)   Gold Eq Production (5)   Gold Eq Sales (5)   Production cost of sales   Production cost of sales/oz   Cap Ex (7)   DD & A
        (%)   ('000 tonnes)   ('000 tonnes)   ('000 tonnes)   (g/t)   (g/t)   (%)   (ounces)   (ounces)   ($ millions)   ($/ounce)   ($ millions)   ($ millions)
Americas Fort Knox Q4 2015   100   4,454   3,407   6,712   0.66   0.26   82%   87,561   87,426   $ 62.6   $ 716   $ 35.3   $ 31.7
Q3 2015   100   5,950   3,328   6,697   0.86   0.27   83%   115,258   118,978     66.2     556     37.4     36.8
Q2 2015   100   6,543   3,345   8,255   0.87   0.28   84%   116,061   113,697     68.9     606     26.7     37.2
Q1 2015   100   5,814   3,366   3,554   0.64   0.29   82%   82,673   82,003     55.1     672     41.4     24.6
Q4 2014   100   5,453   3,261   8,782   0.86   0.30   84%   99,734   99,636     66.6     668     19.2     27.0
Round Mountain(8) Q4 2015   50   6,392   898   3,724   0.86   0.42   77%   51,034   52,882   $ 37.0   $ 700   $ 14.2   $ 11.0
Q3 2015   50   6,962   924   4,546   0.91   0.47   81%   58,074   54,559     37.5     687     12.3     12.9
Q2 2015   50   5,286   748   4,372   1.08   0.40   75%   48,448   47,893     36.4     760     10.8     12.0
Q1 2015   50   7,494   146   6,726   0.65   0.40   67%   40,262   40,447     36.0     890     11.2     9.0
Q4 2014   50   6,946   -   6,418   nm   0.38   nm   37,746   37,133     32.2     867     16.7     10.0
Kettle River- Buckhorn Q4 2015   100   84   90   -   9.67   -   92%   19,301   19,601   $ 14.6   $ 745   $ -   $ 2.0
Q3 2015   100   97   106   -   6.93   -   92%   24,222   24,284     19.3     795     -     2.6
Q2 2015   100   95   130   -   8.58   -   93%   29,580   29,524     23.4     793     -     3.3
Q1 2015   100   93   111   -   6.02   -   91%   24,265   24,167     24.3     1,006     0.6     4.1
Q4 2014   100   91   104   -   7.46   -   93%   24,735   24,849     19.7     793     1.5     10.8
Paracatu Q4 2015   100   10,730   9,738   -   0.51   -   76%   113,547   117,796   $ 89.2   $ 757   $ 30.1   $ 34.9
Q3 2015   100   13,969   12,322   -   0.43   -   76%   129,064   134,838     100.7     747     36.9     38.4
Q2 2015   100   11,435   11,392   -   0.41   -   72%   110,366   107,169     90.5     844     29.4     36.4
Q1 2015   100   11,616   11,825   -   0.43   -   77%   124,685   124,929     93.9     752     16.3     37.8
Q4 2014   100   11,271   11,548   -   0.45   -   79%   133,534   127,991     97.8     764     49.7     38.8
Maricunga (8) Q4 2015   100   3,870   -   4,099   -   0.78   nm   54,948   56,440   $ 52.6   $ 932   $ 4.7   $ 8.2
Q3 2015   100   3,476   -   3,822   -   0.74   nm   52,672   52,282     52.5     1,004     5.2     7.3
Q2 2015   100   2,220   -   1,957   -   0.81   nm   47,713   50,957     55.0     1,079     7.1     6.4
Q1 2015   100   2,695   -   2,912   -   0.69   nm   56,822   54,376     56.0     1,030     7.5     5.4
Q4 2014   100   4,227   -   4,192   -   0.70   nm   60,918   58,845     60.8     1,033     2.7     13.4
Russia Kupol (3)(4)(6) Q4 2015   100   449   429   -   13.81   -   96%   191,308   195,465   $ 91.3   $ 467   $ 9.0   $ 73.8
Q3 2015   100   468   410   -   13.65   -   96%   190,366   217,031     101.7     469     21.4     77.3
Q2 2015   100   516   423   -   13.43   -   95%   191,160   159,950     78.3     490     10.0     56.3
Q1 2015   100   464   418   -   13.20   -   95%   185,729   192,167     91.5     476     15.5     63.9
Q4 2014   100   437   420   -   13.19   -   95%   183,750   179,722     92.6     515     12.7     64.6
West Africa Tasiast Q4 2015   100   1,318   689   587   2.27   0.55   89%   53,706   52,146   $ 49.9   $ 957   $ 49.6   $ 26.5
Q3 2015   100   1,259   618   364   2.21   0.48   92%   53,440   57,163     60.4     1,057     44.1     19.5
Q2 2015   100   1,609   605   521   2.21   0.56   92%   57,890   54,941     58.4     1,063     31.1     18.7
Q1 2015   100   1,009   630   66   2.00   0.97   89%   54,009   51,790     51.9     1,002     36.4     16.2
Q4 2014   100   1,226   619   1,139   2.18   0.75   93%   63,277   58,236     57.2     982     59.4     19.7
Chirano - 100% Q4 2015   90   559   853   -   2.32   -   91%   58,123   56,284   $ 42.2   $ 750   $ 11.6   $ 44.1
Q3 2015   90   873   917   -   2.36   -   91%   63,981   62,792     44.0     701     6.7     42.7
Q2 2015   90   875   823   -   2.73   -   92%   66,311   69,017     47.6     690     4.9     44.6
Q1 2015   90   739   899   -   2.62   -   89%   67,683   71,873     45.9     639     7.3     43.6
Q4 2014   90   866   883   -   2.96   -   91%   75,952   72,318     42.3     585     10.5     42.7
Chirano - 90% Q4 2015   90   559   853   -   2.32   -   91%   52,311   50,655   $ 38.0   $ 750   $ 10.4   $ 39.7
Q3 2015   90   873   917   -   2.36   -   91%   57,583   56,513     39.6     701     6.0     38.4
Q2 2015   90   875   823   -   2.73   -   92%   59,680   62,115     42.8     689     4.4     40.1
Q1 2015   90   739   899   -   2.62   -   89%   60,915   64,686     41.3     638     6.6     39.2
Q4 2014   90   866   883   -   2.96   -   91%   68,357   65,086     38.0     584     9.5     38.4
     
(1)   Ore processed is to 100%, production and costs are to Kinross' account.
(2)   Due to the nature of heap leach operations, recovery rates at Maricunga cannot be accurately measured on a quarterly basis. Recovery rates at Fort Knox, Round Mountain and Tasiast represent mill recovery only.
(3)   The Kupol segment includes the Kupol and Dvoinoye mines.
(4)   Kupol silver grade and recovery were as follows: Q4 (2015) 100.58g/t, 87%; Q3 (2015) 100.55g/t, 88%; Q2 (2015) 106.19g/t, 86.8%; Q1 (2015) 95.64 g/t, 85%; Q4 (2014) 92.78 g/t, 85%.
(5)   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: Q4 2015: 74.78:1; Q3 2015: 75.40:1; Q2 2015: 72.75:1; Q1 2015: 72.91:1; Q4 2014: 72.73:1;.
(6)   Dvoinoye ore processed and grade were as follows: Q4 (2015) 122,987 tonnes, 22.91 g/t; Q3 (2015) 111,806 tonnes, 24.52 g/t; Q2 (2015) 104,465 tonnes, 26.43 g/t; Q1 (2015) 93,000 tonnes, 27.40 g/t; Q4 (2014) 90,083 tonnes, 26.14 g/t.
(7)   Capital expenditures are presented on a cash basis, consistent with the statement of cash flows.
(8)   "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 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, 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 earnings (loss) from continuing operations to adjusted net earnings (loss) from continuing operations for the periods presented:

                         
    Adjusted Earnings  
(in millions, except share and per share amounts)   Three months ended     Years ended  
    December 31,     December 31,  
    2015     2014     2015     2014  
                                 
Net loss from continuing operations attributable to common shareholders - as reported   $ (841.9 )   $ (1,473.5 )   $ (984.5 )   $ (1,400.0 )
                                 
Adjusting items:                                
  Foreign exchange losses     17.9       29.9       30.6       50.1  
  Non-hedge derivatives losses - net of tax     (0.6 )     0.5       3.5       4.5  
  Losses on sale of other assets - net of tax     8.5       9.0       13.7       3.1  
  Foreign exchange losses on translation of tax basis and foreign exchange on deferred income taxes within income tax expense     108.5       86.6       132.9       112.8  
  Impairment charges - net of tax     644.2       1,098.2       668.7       1,098.2  
  Change in deferred income taxes due to tax reforms enacted in Chile     -       (3.1 )     -       32.7  
  Taxes in respect of prior years     0.9       62.5       22.2       45.2  
  Chile weather event related costs - net of tax     -       -       18.2       -  
  Impairment of investments and other - net of tax     3.1       162.0       9.5       162.6  
  Reclamation and remediation expense (recovery) - net of tax     (9.6 )     21.9       (9.6 )     21.9  
  Insurance recoveries - net of tax     (10.1 )     -       (18.4 )     -  
  Restructuring - net of tax     10.3       -       22.2       -  
      773.1       1,467.5       893.5       1,531.1  
Adjusted net earnings (loss) from continuing operations attributable to common shareholders   $ (68.8 )   $ (6.0 )   $ (91.0 )   $ 131.1  
Weighted average number of common shares outstanding - Basic     1,146.5       1,144.5       1,146.0       1,144.3  
Adjusted net earnings (loss) from continuing operations per share   $ (0.06 )   $ (0.01 )   $ (0.08 )   $ 0.11  
                                 
                                 

The Company makes reference to a non-GAAP measure for adjusted operating cash flow and adjusted operating cash flow per share. Adjusted operating cash flow 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, adjusted operating cash flow and adjusted operating cash flow per share measures are not necessarily indicative of net cash flow from operations as determined under IFRS.

The following table provides a reconciliation of adjusted operating cash flow from continuing operations for the periods presented:

                         
    Adjusted Operating Cash Flow  
(in millions, except share and per share amounts)   Three months ended     Years ended  
    December 31,     December 31,  
    2015     2014     2015     2014  
                                 
Net cash flow of continuing operations provided from operating activities - as reported   $ 182.2     $ 179.2     $ 831.6     $ 858.1  
                                 
Adjusting items:                                
  Working capital changes:                                
    Accounts receivable and other assets     (83.6 )     (100.1 )     (91.0 )     (26.9 )
    Inventories     46.9       78.3       (63.5 )     59.4  
    Accounts payable and other liabilities, including taxes     58.3       59.8       109.5       133.2  
      21.6       38.0       (45.0 )     165.7  
Adjusted operating cash flow from continuing operations   $ 203.8     $ 217.2     $ 786.6     $ 1,023.8  
Weighted average number of common shares outstanding - Basic     1,146.5       1,144.5       1,146.0       1,144.3  
Adjusted operating cash flow from continuing operations per share   $ 0.18     $ 0.19     $ 0.69     $ 0.89  
                                 
                                 

Consolidated production cost of sales per gold equivalent ounce sold is a non-GAAP measure and is defined as production cost of sales as per the consolidated financial statements 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  
    Three months ended     Years ended  
(in millions, except ounces and production cost of sales per equivalent ounce)   December 31,     December 31,  
    2015     2014     2015     2014  
                                 
Production cost of sales - as reported   $ 439.4     $ 469.2     $ 1,834.8     $ 1,971.2  
Less: portion attributable to Chirano non-controlling interest     (4.2 )     (4.3 )     (18.0 )     (16.6 )
Attributable production cost of sales   $ 435.2     $ 464.9     $ 1,816.8     $ 1,954.6  
                                 
Gold equivalent ounces sold     638,040       658,730       2,634,867       2,743,398  
Less: portion attributable to Chirano non-controlling interest     (5,629 )     (7,232 )     (25,997 )     (28,040 )
Attributable gold equivalent ounces sold     632,411       651,498       2,608,870       2,715,358  
Consolidated production cost of sales per equivalent ounce sold   $ 689     $ 712     $ 696     $ 719  
Attributable production cost of sales per equivalent ounce sold   $ 688     $ 714     $ 696     $ 720  
                                 
                                 

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  
(in millions, except ounces and production cost of sales per ounce)   Three months ended     Years ended  
    December 31,     December 31,  
    2015     2014     2015     2014  
                                 
Production cost of sales - as reported   $ 439.4     $ 469.2     $ 1,834.8     $ 1,971.2  
Less: portion attributable to Chirano non-controlling interest     (4.2 )   $ (4.3 )     (18.0 )     (16.6 )
Less: attributable silver revenues     (20.1 )   $ (19.7 )     (82.5 )     (93.6 )
Attributable production cost of sales net of silver by-product revenue   $ 415.1     $ 445.2     $ 1,734.3     $ 1,861.0  
                                 
Gold ounces sold     619,449       642,337       2,562,219       2,669,278  
Less: portion attributable to Chirano non-controlling interest     (5,614 )     (7,216 )     (25,925 )     (27,970 )
Attributable gold ounces sold     613,835       635,121       2,536,294       2,641,308  
Attributable production cost of sales per ounce sold on a by-product basis   $ 676     $ 701     $ 684     $ 705  
                                 
                                 

In June 2013, the World Gold Council ("WGC") published its guidelines for reporting all-in sustaining costs and all-in costs. 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 consolidated statement of operations, as follows:

       
       
    Attributable All-In Sustaining Cost and All-In Cost Per Ounce Sold on a By-Product Basis  
(in millions, except ounces and costs per ounce)   Three months ended     Years ended  
    December 31,     December 31,  
    2015     2014     2015     2014  
                                 
Production cost of sales - as reported   $ 439.4     $ 469.2     $ 1,834.8     $ 1,971.2  
Less: portion attributable to Chirano non-controlling interest(1)     (4.2 )     (4.3 )     (18.0 )     (16.6 )
Less: attributable(2) silver revenues(3)     (20.1 )     (19.7 )     (82.5 )     (93.6 )
Attributable(2) production cost of sales net of silver by-product revenue   $ 415.1     $ 445.2     $ 1,734.3     $ 1,861.0  
Adjusting items on an attributable(2) basis:                                
  General and administrative(4)     38.9       51.2       160.6       178.8  
  Other operating expense - sustaining(5)     2.5       (16.9 )     21.5       3.9  
  Reclamation and remediation - sustaining(6)     13.5       15.2       58.0       61.8  
  Exploration and business development - sustaining(7)     14.6       14.1       59.0       56.7  
  Additions to property, plant and equipment - sustaining(8)     122.0       127.1       428.5       387.0  
All-in Sustaining Cost on a by-product basis - attributable(2)   $ 606.6     $ 635.9     $ 2,461.9     $ 2,549.2  
  Other operating expense - non-sustaining(5)     3.2       12.1       20.8       36.9  
  Exploration - non-sustaining(7)     10.7       12.8       47.6       48.7  
  Additions to property, plant and equipment - non-sustaining(8)     34.7       60.0       132.7       179.2  
  Reclamation & remediation costs not related to current operations(6)     (7.9 )     17.5       (7.9 )     17.5  
All-in Cost on a by-product basis - attributable(2)   $ 647.3     $ 738.3     $ 2,655.1     $ 2,831.5  
Gold ounces sold     619,449       642,337       2,562,219       2,669,278  
Less: portion attributable to Chirano non-controlling interest(9)     (5,614 )     (7,216 )     (25,925 )     (27,970 )
Attributable(2) gold ounces sold     613,835       635,121       2,536,294       2,641,308  
Attributable(2) all-in sustaining cost per ounce sold on a by-product basis   $ 988     $ 1,001     $ 971     $ 965  
Attributable(2) all-in cost per ounce sold on a by-product basis   $ 1,055     $ 1,162     $ 1,047     $ 1,072  
                                 
                                 

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 consolidated statement of operations, as follows:

       
       
    Attributable All-In Sustaining Cost and All-In Cost Per Equivalent Ounce Sold  
(in millions, except ounces and costs per equivalent ounce)   Three months ended     Years ended  
    December 31,     December 31,  
    2015     2014     2015     2014  
                                 
Production cost of sales - as reported   $ 439.4     $ 469.2     $ 1,834.8     $ 1,971.2  
Less: portion attributable to Chirano non-controlling interest(1)     (4.2 )     (4.3 )     (18.0 )     (16.6 )
Attributable(2) production cost of sales   $ 435.2     $ 464.9     $ 1,816.8     $ 1,954.6  
Adjusting items on an attributable(2) basis:                                
  General and administrative(4)     38.9       51.2       160.6       178.8  
  Other operating expense - sustaining(5)     2.5       (16.9 )     21.5       3.9  
  Reclamation and remediation - sustaining(6)     13.5       15.2       58.0       61.8  
  Exploration and business development - sustaining(7)     14.6       14.1       59.0       56.7  
  Additions to property, plant and equipment - sustaining(8)     122.0       127.1       428.5       387.0  
All-in Sustaining Cost - attributable(2)   $ 626.7     $ 655.6     $ 2,544.4     $ 2,642.8  
  Other operating expense - non-sustaining(5)     3.2       12.1       20.8       36.9  
  Exploration - non-sustaining(7)     10.7       12.8       47.6       48.7  
  Additions to property, plant and equipment - non-sustaining(8)     34.7       60.0       132.7       179.2  
  Reclamation & remediation costs not related to current operations(6)     (7.9 )     17.5       (7.9 )     17.5  
All-in Cost - attributable(2)   $ 667.4     $ 758.0     $ 2,737.6     $ 2,925.1  
Gold equivalent ounces sold     638,040       658,730       2,634,867       2,743,398  
Less: portion attributable to Chirano non-controlling interest(9)     (5,629 )     (7,232 )     (25,997 )     (28,040 )
Attributable(2) gold equivalent ounces sold     632,411       651,498       2,608,870       2,715,358  
Attributable(2) all-in sustaining cost per equivalent ounce sold   $ 991     $ 1,006     $ 975     $ 973  
Attributable(2) all-in cost per equivalent ounce sold   $ 1,055     $ 1,163     $ 1,049     $ 1,077  
                                 
(1)   "Portion attributable to Chirano non-controlling interest" represents the non-controlling interest (10%) in the production cost of sales for the Chirano mine.
(2)   "Attributable" includes Kinross' share of Chirano (90%) production.
(3)   "Attributable silver revenues" represents the attributable portion of metal sales realized from the production of the secondary or by-product metal (i.e. silver). Revenue from the sale of silver, which is produced as a by-product of the process used to produce gold, effectively reduces the cost of gold production.
(4)   "General and administrative" expense is as reported on the consolidated statement of operations, net of certain restructuring and transaction costs. General and administrative expenses are considered sustaining costs as they are required to be absorbed on a continuing basis for the effective operation and governance of the Company, except to the extent incurred for specific items or activities not representative of the underlying operating performance of our business.
(5)   "Other operating expense - sustaining" is calculated as "Other operating expense" as reported on the consolidated statement of operations, less other operating and reclamation and remediation expenses related to non-sustaining activities as well as other items not reflective of the underlying operating performance of our business. Other operating expenses are classified as either sustaining or non-sustaining based on the type and location of the expenditure incurred. The majority of other operating expenses that are incurred at existing operations are considered costs necessary to sustain operations, and are therefore classified as sustaining. Other operating expenses incurred at locations where there is no current operation or related to other non-sustaining activities are classified as non-sustaining.
(6)   "Reclamation and remediation - sustaining" is calculated as current period accretion related to reclamation and remediation obligations plus current period amortization of the corresponding reclamation and remediation assets, and is intended to reflect the periodic cost of reclamation and remediation for currently operating mines. Reclamation and remediation costs for development projects or closed mines are excluded from this amount and classified as non-sustaining.
(7)   "Exploration and business development - sustaining" is calculated as "Exploration and business development" expenses as reported on the consolidated statement of operations, less non-sustaining exploration expenses. Exploration expenses are classified as either sustaining or non-sustaining based on a determination of the type and location of the exploration expenditure. Exploration expenditures within the footprint of operating mines are considered costs required to sustain current operations and so are included in sustaining costs. Exploration expenditures focused on new ore bodies near existing mines (i.e. brownfield), new exploration projects (i.e. greenfield) or for other generative exploration activity not linked to existing mining operations are classified as non-sustaining. Business development expenses are considered sustaining costs as they are required for general operations.
(8)   "Additions to property, plant and equipment – sustaining" represents the majority of capital expenditures at existing operations including capitalized exploration costs, capitalized stripping and underground mine development costs, ongoing replacement of mine equipment and other capital facilities and other capital expenditures and is calculated as total additions to property, plant and equipment (as reported on the consolidated statements of cash flows) net of proceeds from the disposal of certain property, plant and equipment, less capitalized interest and non-sustaining capital. Non-sustaining capital represents capital expenditures for major growth projects as well as enhancement capital for significant infrastructure improvements at existing operations. Non-sustaining capital expenditures during the three and twelve months ended December 31, 2015 relate to projects at Tasiast, Chirano and La Coipa.
(9)   "Portion attributable to Chirano non-controlling interest" represents the non-controlling interest (10%) in the ounces sold from the Chirano mine.
     
     

2015 Annual Mineral Reserve and Resource Statement

Proven and Probable Mineral Reserves

 
MINERAL RESERVE AND MINERAL RESOURCE STATEMENT GOLD
PROVEN AND PROBABLE MINERAL RESERVES (1,3,4,5,6,8,9,11)
Kinross Gold Corporation's Share at December 31, 2015
Property   Location   Kinross   Proven   Probable   Proven and Probable
Interest   Tonnes   Grade   Ounces   Tonnes   Grade   Ounces   Tonnes   Grade   Ounces
(%)   (kt)   (g/t)   (koz)   (kt)   (g/t)   (koz)   (kt)   (g/t)   (koz)
NORTH AMERICA                                                
Bald Mountain   8   USA   100.0%   14,647   0.8   372   39,980   0.6   745   54,627   0.6   1,117
Fort Knox Area       USA   100.0%   47,740   0.4   628   99,578   0.4   1,394   147,318   0.4   2,022
Kettle River       USA   100.0%   -   -   -   166   8.7   47   166   8.7   47
Round Mountain Area       USA   100.0%   39,062   0.7   907   27,083   0.6   563   66,145   0.7   1,470
SUBTOTAL               101,449   0.6   1,907   166,807   0.5   2,749   268,256   0.5   4,656
                                                 
SOUTH AMERICA                                                
Cerro Casale   9   Chile   25.0%   57,425   0.6   1,195   241,975   0.6   4,616   299,400   0.6   5,811
Maricunga       Chile   100.0%   15,209   0.9   428   25,432   0.8   614   40,641   0.8   1,042
Paracatu       Brazil   100.0%   427,432   0.4   5,653   260,558   0.5   3,992   687,990   0.4   9,645
SUBTOTAL               500,066   0.5   7,276   527,965   0.5   9,222   47,876   0.5   16,498
                                                 
AFRICA                                                
Chirano       Ghana   90.0%   7,275   1.2   287   7,394   3.6   848   14,669   2.4   1,135
Tasiast   11   Mauritania   100.0%   37,575   1.3   1,575   120,569   1.9   7,377   158,144   1.8   8,952
SUBTOTAL               44,850   1.3   1,862   127,963   2.0   8,225   172,813   1.8   10,087
                                                 
RUSSIA                                                
Dvoinoye       Russia   100.0%   634   10.2   209   1,631   11.6   606   2,265   11.2   815
Kupol       Russia   100.0%   1,253   8.8   355   5,904   8.1   1,544   7,157   8.3   1,899
SUBTOTAL               1,887   9.3   564   7,535   8.9   2,150   9,422   9.0   2,714
                                                 
TOTAL GOLD               648,252   0.6   11,609   830,270   0.8   22,346   1,478,522   0.7   33,955
                                                 
MINERAL RESERVE AND MINERAL RESOURCE STATEMENT SILVER
PROVEN AND PROBABLE MINERAL RESERVES (1,3,4,5,6,9)  
Kinross Gold Corporation's Share at December 31, 2015  
Property   Location   Kinross   Proven   Probable   Proven and Probable
Interest   Tonnes   Grade   Ounces   Tonnes   Grade   Ounces   Tonnes   Grade   Ounces
(%)   (kt)   (g/t)   (koz)   (kt)   (g/t)   (koz)   (kt)   (g/t)   (koz)
NORTH AMERICA                                                
Round Mountain Area       USA   100.0%   462   13.1   195   1,908   11.0   675   2,370   11.4   870
SUBTOTAL               462   13.1   195   1,908   11.0   675   2,370   11.4   870
                                                 
SOUTH AMERICA                                                
Cerro Casale   9   Chile   25.0%   57,425   1.9   3,522   241,975   1.4   11,150   299,400   1.5   14,672
SUBTOTAL               57,425   1.9   3,522   241,975   1.4   11,150   299,400   1.5   14,672
                                                 
RUSSIA                                                
Dvoinoye       Russia   100.0%   634   16.6   338   1,631   18.7   979   2,265   18.1   1,317
Kupol       Russia   100.0%   1,253   124.4   5,011   5,904   100.7   19,112   7,157   104.8   24,123
SUBTOTAL               1,887   88.2   5,349   7,535   82.9   20,091   9,422   84.0   25,440
                                                 
TOTAL SILVER               59,774   4.7   9,066   251,418   3.9   31,916   311,192   4.1   40,982
MINERAL RESERVE AND MINERAL RESOURCE STATEMENT COPPER
PROVEN AND PROBABLE MINERAL RESERVES (1,3,4,5,6,9)  
Kinross Gold Corporation's Share at December 31, 2015  
Property   Location   Kinross   Proven   Probable   Proven and Probable
  Interest   Tonnes   Grade   Pounds   Tonnes   Grade   Pounds   Tonnes   Grade   Pounds
  (%)   (kt)   (%)   (Mlb)   (kt)   (%)   (Mlb)   (kt)   (%)   (Mlb)
SOUTH AMERICA                                                
Cerro Casale   9   Chile   25.0%   57,425   0.19   240   241,975   0.23   1,204   299,400   0.22   1,444
SUBTOTAL               57,425   0.19   240   241,975   0.23   1,204   299,400   0.22   1,444
                                                 
TOTAL COPPER               57,425   0.19   240   241,975   0.23   1,204   299,400   0.22   1,444
                                                 

Measured and Indicated Mineral Resources

   
MINERAL RESERVE AND MINERAL RESOURCE STATEMENT GOLD
MEASURED AND INDICATED MINERAL RESOURCES (EXCLUDES PROVEN AND PROBABLE MINERAL RESERVES)  (2,3,4,5,6,7,8,9,10,11)  
Kinross Gold Corporation's Share at December 31, 2015  
Property Location   Kinross     Measured   Indicated   Measured and Indicated
Interest     Tonnes   Grade   Ounces   Tonnes   Grade   Ounces   Tonnes   Grade   Ounces
(%)     (kt)   (g/t)   (koz)   (kt)   (g/t)   (koz)   (kt)   (g/t)   (koz)
NORTH AMERICA                                                
Bald Mountain   8 USA   100.0%     36,337   0.80   951   152,634   0.60   2,982   188,971   0.60   3,933
Fort Knox Area     USA   100.0%     7,077   0.50   103   88,745   0.50   1,320   95,822   0.50   1,423
Kettle River     USA   100.0%     -   -   -   72   5.10   12   72   5.10   12
Round Mountain Area     USA   100.0%     14,624   0.50   258   27,534   0.50   425   42,158   0.50   683
White Gold     Yukon   100.0%     -   -   -   9,788   2.70   840   9,788   2.70   840
SUBTOTAL               58,038   0.70   1,312   278,773   0.60   5,579   336,811   0.60   6,891
                                                 
SOUTH AMERICA                                                
Cerro Casale   9 Chile   25.0%     5,739   0.30   56   68,423   0.40   787   74,162   0.40   843
La Coipa   10 Chile   100.0%     5,364   1.80   307   25,452   1.80   1,440   30,816   1.80   1,747
Lobo Marte     Chile   100.0%     96,646   1.10   3,525   88,720   1.20   3,489   185,366   1.20   7,014
Maricunga     Chile   100.0%     17,860   0.80   445   180,224   0.70   3,830   198,084   0.70   4,275
Paracatu     Brazil   100.0%     137,307   0.30   1,264   178,201   0.30   2,003   315,508   0.30   3,267
SUBTOTAL               262,916   0.70   5,597   541,020   0.70   11,549   803,936   0.70   17,146
                                                 
AFRICA                                                
Chirano     Ghana   90.0%