First Production At Manh Choh In Second Half Of 2024

First Production At Manh Choh In Second Half Of 2024

TORONTO – J. Paul Rollinson, President and CEO of Kinross Gold Corporation said, “2023 was a great year at Kinross and I am proud of our global team who achieved the results that underpin our reputation as strong operators. We met our production, cost and capital guidance, and completed our projects at Tasiast and La Coipa. Our portfolio of mines produced solid results, we more than doubled free cash flow year-over-year while maintaining our investment grade balance sheet, and we are carrying this momentum into 2024.

We expect to deliver another strong year in 2024, producing approximately 2.1 million gold equivalent ounces. Our development projects are progressing well and we look forward to first production from Manh Choh in the second half of the year. Great Bear continues to exceed expectations and we were excited to add more than one million ounces of higher-grade underground resource. We continue to successfully target extensions of the resource at depth, reinforcing our view that Great Bear has the potential to be a large, long-life, high-grade mining complex.

Operating responsibly, delivering on our commitments and advancing our ESG strategy continue to be key principles of our day-to-day operations. Kinross was recently named to the Dow Jones Sustainability World Index, reflecting our commitment to corporate citizenship as a core value and key strategic driver of our business. We expect to publish our 2023 Sustainability and ESG Report in May and some highlights from the year include: 1) Completed construction of the solar power plant at Tasiast and are on track to achieve our goal of reducing emissions intensity by 30% by 2030 from our 2021 baseline. 2) In Brazil, we published a book on the Cerrado biodiversity corridor, highlighting the importance of protecting this critical region and the strategic approach taken by our Paracatu site. 3) Made approximately $10 million of monetary and in-kind contributions through site social investments. 4) Established the “Kinross Alaska Future Leaders” scholarship at the University of Alaska Fairbanks focused on advancing the inclusion of underrepresented people in the resource industry.”

Kinross produced 546,513 Au eq. oz. from continuing operations in Q4 2023, compared with 595,683 Au eq. oz. from continuing operations in Q4 2022. Over the full year, Kinross produced 2,153,020 Au eq. oz. from continuing operations, compared with full-year 2022 production of 1,957,237 Au eq. oz. from continuing operations. The 10% year-over-year increase was largely a result of higher production at La Coipa due to the ramp-up of operations in the second half of 2022, and higher mill grades, recoveries and throughput at Tasiast, partially offset by lower production at Bald Mountain, consistent with the mine plan.

Tasiast performed strongly in 2023, with production increasing 15% compared with full-year 2022. The record annual production was mainly a result of strong grades, record throughput following the completion of the Tasiast 24k project, and higher recoveries. Quarter-over-quarter, production was lower as a result of lower grades and timing of ounces processed at the mill, partially offset by higher throughput and recovery. Tasiast’s full-year cost of sales per ounce was lower year-over-year mainly due to the increase in production as well as the higher proportion of capital development related to capital stripping of West Branch 5. Cost of sales per ounce sold was largely in line quarter-over-quarter. Following the completion of the solar power plant, the Company expects to realize immediate and long-term operating cost savings.

Paracatu full-year production increased compared with 2022 primarily due to an increase in mill throughput, as well as record-high recoveries, partially offset by lower grades. Production decreased quarter-over-quarter mainly due to lower grades, as expected, partially offset by higher mill throughput. Cost of sales per ounce sold was higher in both comparable periods mainly due to lower ounces sold and increased mining volumes, as expected, and unfavourable foreign exchange changes.

The La Coipa operation continued to perform well and achieved record quarterly production since its restart in February 2022 driven by strong grades and throughput. Cost of sales per ounce was higher year-over-year and quarter-over-quarter mainly due to a reduction in capitalized stripping.

For the Fort Knox Mine, the full-year production and cost of sales were largely in line with 2022. Quarter-over-quarter production increased mainly due to higher mill throughput as well as timing of ounces processed in the mill. Compared with Q3 2023, cost of sales per ounce sold was higher mainly due to less capital development, partially offset by higher production.

At Round Mountain full-year production increased year-over-year primarily due to an increase in ounces recovered from the heap leach pads. Quarter-over-quarter production decreased primarily due to fewer ounces recovered from the heap leach pads, partially offset by higher grades. Full-year cost of sales per ounce increased year-over-year mainly as a result of higher-cost ounces recovered from the heap leach pads and less capital development. Cost of sales per ounce sold in Q4 2023 decreased compared with the previous quarter largely due to lower costs related to labour and consumables, partly offset by timing of inventory movements.

The Bald Mountain Mine full-year production decreased largely due to lower grades and timing of ounces recovered from the heap leach pads. Compared with the previous quarter, production increased mainly due to higher grades. Full-year cost of sales per ounce sold increased as a result of higher-cost heap leach ounces, as well as higher contractor, reagent and maintenance costs. Compared with Q3 2023, fourth quarter cost of sales per ounce sold was lower mainly due to higher production, a higher proportion of capital development, and lower contractor and reagent costs, partially offset by timing of ounces recovered.

At the Great Bear project, the Company’s robust exploration program continues to make excellent progress, execution planning for the advanced exploration program is well underway, and permitting continues to advance on plan. Following the completion of its 2023 drilling program, Kinross has increased Great Bear’s mineral resource estimate to approximately 2.8 Moz. of measured and indicated resources and approximately 3.3 Moz. of inferred resources. This includes the addition of more than one million higher-grade, underground inferred ounces, representing a 45% year-over-year increase.