Each one in plain English, with the numbers worked through for a shareholder.
12 Dec 2017resource reserve update▲ GoodMajor
Gained mineral rights to the 287-hectare Gilmore parcel west of Fort Knox, adding 2.1 million ounces of measured and indicated and 300,000 ounces of inferred resources after 73,000 metres of drilling in 205 holes. About 260,000 ounces were converted to reserves, offsetting some of 2017 depletion and extending mine life by about a year.
Corrected the Round Mountain figures published the previous day, which had omitted stockpiles and misstated grade as something other than 0.7 g/t. Restated, the Phase W feasibility lifted Round Mountain proven and probable reserves from 1.3 million to 3.1 million ounces, about 2.0 million of that converted from indicated resources rather than newly found.
Committed to both the Tasiast Phase Two expansion to 30,000 tonnes per day and the Round Mountain Phase W layback. Phase Two is guided at about 812,000 ounces a year for five years at US$440 cost of sales and US$655 all-in sustaining cost, a 24% return and US$2.2 billion of life-of-mine cash flow.
Priced US$500 million of 4.50% senior unsecured notes due 2027 to repay the term loan due August 2020, cutting the coupon by nearly 150 basis points against the 5.95% notes issued in 2014.
9 June 2017asset acquisition disposition▲ GoodMajor
Closed the Cerro Casale and Quebrada Seca sale to Goldcorp on the terms announced in March, receiving US$260 million cash with the US$40 million construction payment and 1.25% royalty still contingent.
Sold its wholly owned White Gold exploration property in the Yukon to White Gold Corp in exchange for about 19.9% of that company plus roughly US$7 million, alongside Agnico Eagle which holds a similar stake. Exploration exposure kept as equity rather than as a balance-sheet project.
28 Mar 2017asset acquisition disposition▲ GoodMajor
Agreed to sell its 25% of the undeveloped Cerro Casale project and 100% of neighbouring Quebrada Seca in Chile to Goldcorp for US$260 million cash at closing, a further US$40 million on a construction decision, assumption of a US$20 million obligation to Barrick, and a 1.25% royalty. Kinross also secured rights to surplus project water for its other Chilean mines.
Sold 5.5 million Lundin Gold shares to GMP Securities at C$5.60 for C$30.8 million, cutting the stake taken as part-payment for Fruta del Norte from 22.1% to 17.4%.
Repaid US$250 million of senior notes at their 1 September 2016 maturity. With the term loan and revolver each extended a year, to August 2020 and August 2021, Kinross had no debt maturities for four years and about US$2.5 billion of liquidity.
Operational updates across three mines: a US Bureau of Land Management record of decision cleared expanded exploration and facilities at Bald Mountain in Nevada, alongside updates on Tasiast and Maricunga. The Bald Mountain decision opens the way to grow a reserve base that stood at about 1.1 million ounces.
Re-filed the Tasiast technical report first lodged on 30 March 2016 because an editing error affected two tables, one in the summary section and one in the economic analysis. Substance unchanged, correction only.
Committed to Tasiast Phase One, lifting mill throughput from 8,000 to 12,000 tonnes a day for about US$300 million, guided at 409,000 ounces a year over 2018-2027 at US$535 cost of sales and US$760 all-in sustaining cost for a 20% return. Three years after the 38,000 tonne-a-day feasibility study, Kinross built a fraction of it.
Closed the 83.4 million share bought deal at US$3.00 for about US$250 million, with roughly US$175 million repaying the facility drawn for the Barrick Nevada purchase.
Announced a bought deal of 83.4 million shares at US$3.00 for about US$250 million, with roughly US$175 million going to repay the credit facility drawn to buy the Nevada mines from Barrick six weeks earlier. Equity issued to term out an acquisition, at a share price near the bottom of the cycle.
Completed the acquisition of 100% of Bald Mountain and the other 50% of Round Mountain from Barrick for US$610 million in cash, subject to a working capital adjustment. Barrick also gets a contingent 2% royalty on Bald lands gold after 10 million ounces of post-closing production.
The signed asset purchase agreement behind the Barrick deal, naming Barrick Gold U.S., Bargold and Homestake Nevada as sellers with Barrick Gold Corporation guaranteeing their obligations, and Kinross subsidiaries as buyers of Bald Mountain and half of Round Mountain.
Agreed to buy 100% of Bald Mountain and the other half of Round Mountain from Barrick for US$610 million cash, adding about 430,000 gold-equivalent ounces a year over three years and lifting US production 56%. The Bald Mountain purchase includes a 600 square kilometre land package, 40% of which will be explored in a 50/50 joint venture with Barrick.
On 2 October 2015 Kinross publicly addressed a regulatory review of its West Africa operations. It said it learned of allegations of improper payments to officials and internal control deficiencies in August 2013 and began an internal investigation. The SEC issued subpoenas in March and December 2014 and July 2015, and the DOJ made requests in December 2014. Kinross said its investigation had not found issues it believes would materially harm the company, but it is ongoing and more facts could emerge. The release does not state any fine or finding. This is a new open thread.
Cut 2015 all-in sustaining cost guidance to US$975-1,025 an ounce from US$1,000-1,100, cost of sales to US$690-730 from US$720-780, and capital spending to US$650 million from US$725 million, while narrowing production guidance upward to 2.5-2.6 million gold-equivalent ounces. Costs beating plan in a weak gold year.
An extreme rainstorm in Chile's Atacama region cut road and power access to the Maricunga mine, suspending mining, crushing and the SART plant, though the leach recovery plant kept running on generators. Kinross said site facilities were undamaged and regional production guidance was unchanged.
Filed technical reports for Fort Knox in Alaska and the Kupol-Dvoinoye complex in Russia, backing reserve and resource estimates already published in February 2015. Routine annual documentation filed with the 2014 annual report.
Extended by four days the deadline for holders of the unregistered 5.95% 2024 notes to swap into registered notes; US$497.9 million of the US$500 million had already been tendered. Purely an administrative registration exercise, not a change in debt.
18 Dec 2014asset acquisition disposition● NeutralMajor
Completed the Fruta del Norte sale for US$240 million, taken as US$150 million cash and US$90 million in Fortress stock at C$4.00 a share, leaving Kinross with about 25.8% of Fortress. Kinross agreed to hold the shares for six to twelve months.
22 Oct 2014asset acquisition disposition● NeutralMajor
Agreed to sell Aurelian Resources and the abandoned Fruta del Norte project in Ecuador to Fortress Minerals, a Lundin group company, for US$240 million in cash and Fortress shares. This closes out the project Kinross walked away from in June 2013.
The Tasiast expansion feasibility study cut expected initial capital from the pre-feasibility US$2.7 billion to about US$1.6 billion and lifted reserves by 3.1 million ounces to 9.6 million, for average output of 848,000 ounces a year over five years at US$501 cash cost and a 17% return. Kinross did not commit to build it at this point.
Filed the supporting technical reports for Tasiast and Paracatu. The Tasiast report is the formal backing for the 38,000 tonne-per-day expansion case announced the same week; the Paracatu report covers the existing operation at its December 2013 reserve estimate.
Priced US$500 million of 5.95% senior unsecured notes due 2024, with proceeds earmarked to pay down part of the term loan due August 2017. A refinancing rather than new money.
Dvoinoye, a high-grade underground mine 100km from Kupol, reached commercial production on schedule and on budget, feeding the expanded Kupol mill. Guided to add 235,000-300,000 gold-equivalent ounces a year in its first three full years at a Russian regional cost of sales of US$545-600 an ounce.