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| (a) | Other includes various impacts, such as settlement provisions, one-time costs and credits at sites, restructuring costs, adjustments related to prior years as well as gains and losses on assets and hedges, which the Company believes are not reflective of the Company’s underlying performance for the reporting period. | |
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Attributable Free Cash Flow
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Attributable free cash flow is a non-GAAP financial measure and is defined as net cash flow provided from operating activities less attributable capital expenditures and non-controlling interest included in net cash flows provided from operating activities. The Company believes that this measure, which is used internally to evaluate the Company’s underlying cash generation performance and the ability to repay creditors and return cash to shareholders, provides investors with the ability to better evaluate the Company’s underlying performance. However, this measure is not necessarily indicative of operating earnings or net cash flow provided from operating activities as determined under IFRS.
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The following table provides a reconciliation of attributable free cash flow for the periods presented:
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| (expressed in millions of U.S. dollars) | Three months ended | Six months ended | ||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net cash flow provided from operating activities – as reported | $ | 992.4 | $ | 604 | $ | 1589.5 | $ | 978.4 | ||||||||
| Adjusting items: | ||||||||||||||||
| Attributable(a) capital expenditures | (301.8 | ) | (264.5 | ) | (505.9 | ) | (496.6 | ) | ||||||||
| Non-controlling interest(b) cash flow (from) used in operating activities | (44 | ) | 6.4 | (66.2 | ) | 9.4 | ||||||||||
| Attributable(a) free cash flow | $ | 646.6 | $ | 345.9 | $ | 1017.4 | $ | 491.2 | ||||||||
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See pages 21 and 22 for details of the footnotes referenced within the table above.
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Attributable Adjusted Operating Cash Flow
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Attributable adjusted operating cash flow is a non-GAAP financial measure and is defined as net cash flow provided from operating activities excluding changes in working capital, certain impacts which the Company believes are not reflective of the Company’s regular operating cash flow, and net cash flows provided from operating activities, net of working capital changes, relating to non-controlling interests. Working capital can be volatile due to numerous factors, including the timing of tax payments. The Company uses attributable adjusted operating cash flow internally as a measure of the underlying operating cash flow performance and future operating cash flow-generating capability of the Company. However, the attributable adjusted operating cash flow measure is not necessarily indicative of net cash flow provided from operating activities as determined under IFRS.
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The following table provides a reconciliation of attributable adjusted operating cash flow for the periods presented:
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| (expressed in millions of U.S. dollars) | Three months ended | Six months ended | |||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net cash flow provided from operating activities – as reported | $ | 992.4 | $ | 604 | $ | 1589.5 | $ | 978.4 | |||||||
| Adjusting items: | |||||||||||||||
| Insurance proceeds received in respect of prior years | – | (22.9 | ) | – | (22.9 | ) | |||||||||
| Working capital changes: | |||||||||||||||
| Accounts receivable and other assets | (7.2 | ) | (6.2 | ) | (14.3 | ) | (15 | ) | |||||||
| Inventories | (8.9 | ) | (2.5 | ) | 29.5 | (8.4 | ) | ||||||||
| Accounts payable, accrued liabilities and other, including income taxes paid | (96.4 | ) | (94.3 | ) | (18.7 | ) | (29.1 | ) | |||||||
| 879.9 | 478.1 | 1586 | 903 | ||||||||||||
| Non-controlling interest(b) cash flow (from) used in operating activities, net of working capital changes | (36 | ) | 0.2 | (65.9 | ) | 1 | |||||||||
| Attributable(a) adjusted operating cash flow | $ | 843.9 | $ | 478.3 | $ | 1520.1 | $ | 904 | |||||||
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See pages 21 and 22 for details of the footnotes referenced within the table above.
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Attributable Average Realized Gold Price per Ounce
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Attributable average realized gold price per ounce is a non-GAAP ratio which calculates the average price realized from gold sales attributable to the Company. The Company believes that this measure provides a more accurate measure with which to compare the Company’s gold sales performance to market gold prices. The following table provides a reconciliation of attributable average realized gold price per ounce for the periods presented:
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| Three months ended | Six months ended | ||||||||||||
| (expressed in millions of U.S. dollars, except ounces and average realized gold price per ounce) | June 30, | June 30, | |||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||
| Metal sales – as reported | $ | 1,728.5 | $ | 1,219.5 | $ | 3,226 | $ | 2,301 | |||||
| Less: silver revenue(c) | (22.6 | ) | (36.7 | ) | (45.1 | ) | (75.8 | ) | |||||
| Less: non-controlling interest(b) gold revenue | (58.0 | ) | – | (108.1 | ) | – | |||||||
| Attributable(a) gold revenue | $ | 1,647.9 | $ | 1,182.8 | $ | 3,072.8 | $ | 2,225.2 | |||||
| Gold ounces sold | 519,391 | 505,122 | 103,5659 | 100,8726 | |||||||||
| Less: non-controlling interest(b) gold ounces sold | (17,764 | ) | – | (35,147 | ) | – | |||||||
| Attributable(a) gold ounces sold | 501,627 | 505,122 | 100,0512 | 100,8726 | |||||||||
| Attributable(a) average realized gold price per ounce | $ | 3,285 | $ | 2,342 | $ | 3,071 | $ | 2,206 | |||||
| Average realized gold price per ounce(d) | $ | 3,284 | $ | 2,342 | $ | 3,071 | $ | 2,206 | |||||
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See pages 21 and 22
for details of the footnotes referenced within the table above.
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Attributable Production Cost of Sales per Equivalent Ounce Sold
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Production cost of sales per equivalent ounce sold is defined as production cost of sales, as reported on the interim condensed consolidated statement of operations, divided by the total number of gold equivalent ounces sold. This measure converts the Company’s non-gold production into gold equivalent ounces and credits it to total production.
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Attributable production cost of sales per equivalent ounce sold is a non-GAAP ratio 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 attributable non-gold production into gold equivalent ounces and credits it to total attributable production. Management uses this measure to monitor and evaluate the performance of its operating properties that are attributable to its shareholders.
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The following table provides a reconciliation of production cost of sales and attributable production cost of sales per equivalent ounce sold for the periods presented:
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| (expressed in millions of U.S. dollars, except ounces and production cost of sales per equivalent ounce) | Three months ended | Six months ended | ||||||||||||
| June 30, | June 30, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| Production cost of sales – as reported | $ | 568.4 | $ | 536.1 | $ | 1,115.1 | $ | 1,049.0 | ||||||
| Less: non-controlling interest(b) production cost of sales | (22.5 | ) | – | (43.2 | ) | – | ||||||||
| Attributable(a) production cost of sales | $ | 545.9 | $ | 536.1 | $ | 1,071.9 | $ | 1,049.0 | ||||||
| Gold equivalent ounces sold | 526,223 | 520,760 | 1,050,312 | 1,043,160 | ||||||||||
| Less: non-controlling interest(b) gold equivalent ounces sold | (17,923 | ) | – | (35,448 | ) | – | ||||||||
| Attributable(a) gold equivalent ounces sold | 508,300 | 520,760 | 1,014,864 | 1,043,160 | ||||||||||
| Attributable(a) production cost of sales per equivalent ounce sold | $ | 1,074 | $ | 1,029 | $ | 1,056 | $ | 1,006 | ||||||
| Production cost of sales per equivalent ounce sold(e) | $ | 1,080 | $ | 1,029 | $ | 1,062 | $ | 1,006 | ||||||
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See pages 21 and 22
for details of the footnotes referenced within the table above.
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Attributable Production Cost of Sales per Ounce Sold on a By-Product Basis
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Attributable production cost of sales per ounce sold on a by-product basis is a non-GAAP ratio 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 ratio 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.
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The following table provides a reconciliation of attributable production cost of sales per ounce sold on a by-product basis for the periods presented:
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| (expressed in millions of U.S. dollars, except ounces and production cost of sales per ounce) | Three months ended | Six months ended | ||||||||||||
| June 30, | June 30, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| Production cost of sales – as reported | $ | 568.4 | $ | 536.1 | $ | 1,115.1 | $ | 1,049.0 | ||||||
| Less: non-controlling interest(b) production cost of sales | (22.5 | ) | – | (43.2 | ) | – | ||||||||
| Less: attributable(a) silver revenue(c) | (22.0 | ) | (36.7 | ) | (44.1 | ) | (75.8 | ) | ||||||
| Attributable(a) production cost of sales net of silver by-product revenue | $ | 523.9 | $ | 499.4 | $ | 1,027.8 | $ | 973.2 | ||||||
| Gold ounces sold | 519,391 | 505,122 | 1,035,659 | 1,008,726 | ||||||||||
| Less: non-controlling interest(b) gold ounces sold | (17,764 | ) | – | (35,147 | ) | – | ||||||||
| Attributable(a) gold ounces sold | 501,627 | 505,122 | 1,000,512 | 1,008,726 | ||||||||||
| Attributable(a) production cost of sales per ounce sold on a by-product basis | $ | 1,044 | $ | 989 | $ | 1,027 | $ | 965 | ||||||
| Production cost of sales per equivalent ounce sold(e) | $ | 1,080 | $ | 1,029 | $ | 1,062 | $ | 1,006 | ||||||
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See pages 21 and 22
for details of the footnotes referenced within the table above.
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Attributable All-In Sustaining Cost and All-In Cost per Ounce Sold on a By-Product Basis
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Attributable all-in sustaining cost and all-in cost per ounce sold on a by-product basis are non-GAAP financial measures and ratios, as applicable, calculated based on guidance published by the World Gold Council (“WGC”). 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 metrics. Adoption of the all-in sustaining cost and all-in cost metrics is voluntary and not necessarily standard, and therefore, these measures and ratios presented by the Company may not be comparable to similar measures and ratios presented by other issuers. The Company believes that the all-in sustaining cost and all-in cost measures complement existing measures and ratios reported by Kinross.
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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, i.e. a by-product. 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, including capitalized development, 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.
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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.
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Attributable all-in sustaining cost and all-in cost per ounce sold on a by-product basis are calculated by adjusting production cost of sales, as reported on the interim condensed consolidated statements of operations, as follows:
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| (expressed in millions of U.S. dollars, except ounces and costs per ounce) | Three months ended | Six months ended | ||||||||||||
| June 30, | June 30, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| Production cost of sales – as reported | $ | 568.4 | $ | 536.1 | $ | 1,115.1 | $ | 1,049.0 | ||||||
| Less: non-controlling interest(b) production cost of sales | (22.5 | ) | – | (43.2 | ) | – | ||||||||
| Less: attributable(a) silver revenue(c) | (22.0 | ) | (36.7 | ) | (44.1 | ) | (75.8 | ) | ||||||
| Attributable(a) production cost of sales net of silver by-product revenue | $ | 523.9 | $ | 499.4 | $ | 1,027.8 | $ | 973.2 | ||||||
| Adjusting items on an attributable(a) basis: | ||||||||||||||
| General and administrative(f) | 29.6 | 32.4 | 65.3 | 63.1 | ||||||||||
| Other operating expense – sustaining(g) | 0.9 | 1.6 | 1.1 | 2.4 | ||||||||||
| Reclamation and remediation – sustaining(h) | 22.4 | 19.4 | 44.7 | 37.7 | ||||||||||
| Exploration and business development – sustaining(i) | 15.3 | 13.1 | 27.8 | 21.8 | ||||||||||
| Additions to property, plant and equipment – sustaining(j) | 143.7 | 116.5 | 231.9 | 225.8 | ||||||||||
| Lease payments – sustaining(k) | 1.3 | 3.3 | 2.6 | 6.7 | ||||||||||
| All-in Sustaining Cost on a by-product basis – attributable(a) | $ | 737.1 | $ | 685.7 | $ | 1,401.2 | $ | 1,330.7 | ||||||
| Adjusting items on an attributable(a) basis: | ||||||||||||||
| Other operating expense – non-sustaining(g) | 19.1 | 9.8 | 35.3 | 19.9 | ||||||||||
| Reclamation and remediation – non-sustaining(h) | 2.3 | 1.7 | 4.6 | 3.4 | ||||||||||
| Exploration and business development – non-sustaining(i) | 45.5 | 41.8 | 74.9 | 74.7 | ||||||||||
| Additions to property, plant and equipment – non-sustaining(j) | 158.1 | 148.0 | 274.0 | 270.8 | ||||||||||
| Lease payments – non-sustaining(k) | 0.2 | 0.1 | 0.4 | 0.1 | ||||||||||
| All-in Cost on a by-product basis – attributable(a) | $ | 962.3 | $ | 887.1 | $ | 1,790.4 | $ | 1,699.6 | ||||||
| Gold ounces sold | 519,391 | 505,122 | 1,035,659 | 1,008,726 | ||||||||||
| Less: non-controlling interest(b) gold ounces sold | (17,764 | ) | – | (35,147 | ) | – | ||||||||
| Attributable(a) gold ounces sold | 501,627 | 505,122 | 1,000,512 | 1,008,726 | ||||||||||
| Attributable(a) all-in sustaining cost per ounce sold on a by-product basis | $ | 1,469 | $ | 1,357 | $ | 1,400 | $ | 1,319 | ||||||
| Attributable(a) all-in cost per ounce sold on a by-product basis | $ | 1,918 | $ | 1,756 | $ | 1,789 | $ | 1,685 | ||||||
| Production cost of sales per equivalent ounce sold(e) | $ | 1,080 | $ | 1,029 | $ | 1,062 | $ | 1,006 | ||||||
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See pages 21 and 22
for details of the footnotes referenced within the table above.
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Attributable All-In Sustaining Cost and All-In Cost per Equivalent Ounce Sold
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The Company also assesses its attributable all-in sustaining cost and all-in cost on a gold equivalent ounce basis. Under these non-GAAP financial measures and ratios, the Company’s production of silver is converted into gold equivalent ounces and credited to total production.
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Attributable all-in sustaining cost and all-in cost per equivalent ounce sold are calculated by adjusting production cost of sales, as reported on the interim condensed consolidated statements of operations, as follows:
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| (expressed in millions of U.S. dollars, except ounces and costs per ounce) | Three months ended | Six months ended | ||||||||||||
| June 30, | June 30, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| Production cost of sales – as reported | $ | 568.4 | $ | 536.1 | $ | 1,115.1 | $ | 1,049.0 | ||||||
| Less: non-controlling interest(b) production cost of sales | (22.5 | ) | – | (43.2 | ) | – | ||||||||
| Attributable(a) production cost of sales | $ | 545.9 | $ | 536.1 | $ | 1,071.9 | $ | 1,049.0 | ||||||
| Adjusting items on an attributable(a) basis: | ||||||||||||||
| General and administrative(f) | 29.6 | 32.4 | 65.3 | 63.1 | ||||||||||
| Other operating expense – sustaining(g) | 0.9 | 1.6 | 1.1 | 2.4 | ||||||||||
| Reclamation and remediation – sustaining(h) | 22.4 | 19.4 | 44.7 | 37.7 | ||||||||||
| Exploration and business development – sustaining(i) | 15.3 | 13.1 | 27.8 | 21.8 | ||||||||||
| Additions to property, plant and equipment – sustaining(j) | 143.7 | 116.5 | 231.9 | 225.8 | ||||||||||
| Lease payments – sustaining(k) | 1.3 | 3.3 | 2.6 | 6.7 | ||||||||||
| All-in Sustaining Cost – attributable(a) | $ | 759.1 | $ | 722.4 | $ | 1,445.3 | $ | 1,406.5 | ||||||
| Adjusting items on an attributable(a) basis: | ||||||||||||||
| Other operating expense – non-sustaining(g) | 19.1 | 9.8 | 35.3 | 19.9 | ||||||||||
| Reclamation and remediation – non-sustaining(h) | 2.3 | 1.7 | 4.6 | 3.4 | ||||||||||
| Exploration and business development – non-sustaining(i) | 45.5 | 41.8 | 74.9 | 74.7 | ||||||||||
| Additions to property, plant and equipment – non-sustaining(j) | 158.1 | 148.0 | 274.0 | 270.8 | ||||||||||
| Lease payments – non-sustaining(k) | 0.2 | 0.1 | 0.4 | 0.1 | ||||||||||
| All-in Cost – attributable(a) | $ | 984.3 | $ | 923.8 | $ | 1,834.5 | $ | 1,775.4 | ||||||
| Gold equivalent ounces sold | 526,223 | 520,760 | 1,050,312 | 1,043,160 | ||||||||||
| Less: non-controlling interest(b) gold equivalent ounces sold | (17,923 | ) | – | (35,448 | ) | – | ||||||||
| Attributable(a) gold equivalent ounces sold | 508,300 | 520,760 | 1,014,864 | 1,043,160 | ||||||||||
| Attributable(a) all-in sustaining cost per equivalent ounce sold | $ | 1,493 | $ | 1,387 | $ | 1,424 | $ | 1,348 | ||||||
| Attributable(a) all-in cost per equivalent ounce sold | $ | 1,936 | $ | 1,774 | $ | 1,808 | $ | 1,702 | ||||||
| Production cost of sales per equivalent ounce sold(e) | $ | 1,080 | $ | 1,029 | $ | 1,062 | $ | 1,006 | ||||||
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See pages 21 and 22
for details of the footnotes referenced within the table above.
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Capital Expenditures and Attributable Capital Expenditures
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Capital expenditures are classified as either sustaining capital expenditures or non-sustaining capital expenditures, depending on the nature of the expenditure. Sustaining capital expenditures typically represent capital expenditures at existing operations including capitalized exploration costs and capitalized development unless related to major projects, 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 interim condensed consolidated statements of cash flows), less non-sustaining capital expenditures. Non-sustaining capital expenditures represent capital expenditures for major projects, including major capital development projects at existing operations that are expected to materially benefit the operation, as well as enhancement capital for significant infrastructure improvements at existing operations. Management believes the distinction between sustaining capital expenditures and non-sustaining expenditures is a useful indicator of the purpose of capital expenditures and this distinction is an input into the calculation of attributable all-in sustaining costs per ounce and attributable all-in costs per ounce. The categorization of sustaining capital expenditures and non-sustaining capital expenditures is consistent with the definitions under the WGC all-in cost standard. Sustaining capital expenditures and non-sustaining capital expenditures are not defined under IFRS, however, the sum of these two measures total to additions to property, plant and equipment as disclosed under IFRS on the interim condensed consolidated statements of cash flows.
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Additions to property, plant and equipment per the interim condensed consolidated statements of cash flows includes 100% of capital expenditures for Manh Choh. Attributable capital expenditures is a non-GAAP financial measure and includes Kinross’ 70% share of capital expenditures for Manh Choh. Management believes this to be a useful indicator of Kinross’ cash resources utilized for capital expenditures.
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The following table provides a reconciliation of the classification of capital expenditures for the periods presented:
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| (expressed in millions of U.S. dollars) | ||||||||||||||||||||||
| Three months ended June 30, 2025 | Tasiast (Mauritania) | Paracatu (Brazil) | La Coipa (Chile) | Fort Knox(l) (USA) | Round Mountain (USA) | Bald Mountain (USA) | Total USA | Other | Total | |||||||||||||
| Sustaining capital expenditures | $ | 23.1 | $ | 38.4 | $ | 25.0 | $ | 43.0 | $ | 5.7 | $ | 12.7 | $ | 61.4 | $ | 0.1 | $ | 148.0 | ||||
| Non-sustaining capital expenditures | 66.6 | – | – | – | 27.1 | $ | 27.7 | $ | 54.8 | 36.7 | 158.1 | |||||||||||
| Additions to property, plant and equipment – per cash flow | $ | 89.7 | $ | 38.4 | $ | 25.0 | $ | 43.0 | $ | 32.8 | $ | 40.4 | $ | 116.2 | $ | 36.8 | $ | 306.1 | ||||
| Less: Non-controlling interest(b) | $ | – | $ | – | $ | – | $ | (4.3 | ) | $ | – | $ | – | $ | (4.3 | ) | $ | – | $ | (4.3 | ) | |
| Attributable(a) capital expenditures | $ | 89.7 | $ | 38.4 | $ | 25.0 | $ | 38.7 | $ | 32.8 | $ | 40.4 | $ | 111.9 | $ | 36.8 | $ | 301.8 | ||||
| Three months ended June 30, 2024 | ||||||||||||||||||||||
| Sustaining capital expenditures | $ | 7.0 | $ | 44.6 | $ | 10.7 | $ | 47.6 | $ | 2.1 | $ | 4.4 | $ | $ 54.1 | $ | 0.1 | $ | 116.5 | ||||
| Non-sustaining capital expenditures | 68.2 | – | – | 41.6 | 35.1 | 0.2 | 76.9 | 12.6 | 157.7 | |||||||||||||
| Additions to property, plant and equipment – per cash flow | $ | 75.2 | $ | 44.6 | $ | 10.7 | $ | 89.2 | $ | 37.2 | $ | 4.6 | $ | 131.0 | $ | 12.7 | $ | 274.2 | ||||
| Less: Non-controlling interest(b) | $ | – | $ | – | $ | – | $ | (9.7 | ) | $ | – | $ | – | $ | (9.7 | ) | $ | – | $ | (9.7 | ) | |
| Attributable(a) capital expenditures | $ | 75.2 | $ | 44.6 | $ | 10.7 | $ | 79.5 | $ | 37.2 | $ | 4.6 | $ | 121.3 | $ | 12.7 | $ | 264.5 | ||||
| (expressed in millions of U.S. dollars) | ||||||||||||||||||||||
| Six months ended June 30, 2025 | Tasiast (Mauritania) | Paracatu (Brazil) | La Coipa (Chile) | Fort Knox(l)(USA) | Round Mountain (USA) | Bald Mountain (USA) | Total USA | Other | Total | |||||||||||||
| Sustaining capital expenditures | $ | 36.8 | $ | 62.8 | $ | 40.6 | $ | 71.2 | $ | 8.5 | $ | 19.6 | $ | 99.3 | $ | 0.3 | $ | 239.8 | ||||
| Non-sustaining capital expenditures | 133.0 | – | – | – | 53.9 | 38.6 | 92.5 | 48.5 | 274.0 | |||||||||||||
| Additions to property, plant and equipment – per cash flow | $ | 169.8 | $ | 62.8 | $ | 40.6 | $ | 71.2 | $ | 62.4 | $ | 58.
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