Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document and Entity Information | |
Document Type | 40-F |
Document Period End Date | Dec. 31, 2019 |
Entity Registrant Name | KINROSS GOLD CORP |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 1,253,765,724 |
Entity Central Index Key | 0000701818 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 575.1 | $ 349 |
Restricted cash | 15.2 | 12.7 |
Accounts receivable and other assets | 130.2 | 101.4 |
Current income tax recoverable | 43.2 | 79 |
Inventories | 1,053.8 | 1,052 |
Unrealized fair value of derivative assets | 7.2 | 3.8 |
Current assets | 1,824.7 | 1,597.9 |
Non-current assets | ||
Property, plant and equipment | 6,340 | 5,519.1 |
Goodwill | 158.8 | 162.7 |
Long-term investments | 126.2 | 155.9 |
Investment in joint venture | 18.4 | 18.3 |
Unrealized fair value of derivative assets | 4.5 | 0.8 |
Other long-term assets | 568.2 | 564.1 |
Deferred tax assets | 35.2 | 45 |
Total assets | 9,076 | 8,063.8 |
Current liabilities | ||
Accounts payable and accrued liabilities | 469.3 | 465.9 |
Current income tax payable | 68 | 21.7 |
Current portion of provisions | 57.9 | 72.6 |
Other current liabilities | 20.3 | 52.2 |
Current liabilities | 615.5 | 612.4 |
Non-current liabilities | ||
Long-term debt and credit facilities | 1,837.4 | 1,735 |
Provisions | 838.6 | 816.4 |
Long-term lease liabilities | 38.9 | |
Unrealized fair value of derivative liabilities | 0.8 | 9.6 |
Other long-term liabilities | 107.7 | 97.9 |
Deferred tax liabilities | 304.5 | 265.2 |
Total liabilities | 3,743.4 | 3,536.5 |
Equity | ||
Common share capital | 14,926.2 | 14,913.4 |
Contributed surplus | 242.1 | 239.8 |
Accumulated deficit | (9,829.4) | (10,548) |
Accumulated other comprehensive income (loss) | (20.4) | (98.5) |
Total common shareholders' equity | 5,318.5 | 4,506.7 |
Non-controlling interest | 14.1 | 20.6 |
Total equity | 5,332.6 | 4,527.3 |
Commitments and contingencies | ||
Subsequent events | ||
Total liabilities and equity | $ 9,076 | $ 8,063.8 |
Common shares | ||
Common shares issued (shares) | 1,253,765,724 | 1,250,228,821 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | ||
Metal sales | $ 3,497.3 | $ 3,212.6 |
Cost of sales | ||
Production cost of sales | 1,778.9 | 1,860.5 |
Depreciation, depletion and amortization | 731.3 | 772.4 |
Reversals of impairment charges | (361.8) | |
Total cost of sales | 2,148.4 | 2,632.9 |
Gross profit | 1,348.9 | 579.7 |
Other operating expense | 108.5 | 137 |
Exploration and business development | 113.5 | 109.2 |
General and administrative | 135.8 | 133 |
Operating earnings | 991.1 | 200.5 |
Other income - net | 72.6 | 3.2 |
Equity in earnings (losses) of joint ventures, net | 0.1 | (0.3) |
Finance income | 7.9 | 11 |
Finance expense | (107.9) | (101.2) |
Earnings before tax | 963.8 | 113.2 |
Income tax expense - net | (246.7) | (138.8) |
Net earnings (loss) | 717.1 | (25.6) |
Net earnings (loss) attributable to: | ||
Non-controlling interest | (1.5) | (2) |
Common shareholders | $ 718.6 | $ (23.6) |
Earnings (loss) per share attributable to common shareholders | ||
Basic | $ 0.57 | $ (0.02) |
Diluted | $ 0.57 | $ (0.02) |
Weighted average number of common shares outstanding | ||
Basic | 1,252,316 | 1,249,495 |
Diluted | 1,262,344 | 1,249,495 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Net earnings (loss) | $ 717.1 | $ (25.6) |
Items that will not be reclassified to profit or loss: | ||
Equity investments at fair value through other comprehensive income ("FVOCI") - net change in fair value | 49 | (25.8) |
Items that are or may be reclassified to profit or loss in subsequent periods: | ||
Cash flow hedges - effective portion of changes in fair value | 23.6 | (47.9) |
Cash flow hedges - reclassified to profit or loss | 5.5 | (9.1) |
Total other comprehensive income (loss), net of tax | 78.1 | (82.8) |
Total comprehensive income (loss) | 795.2 | (108.4) |
Attributable to non-controlling interest | (1.5) | (2) |
Attributable to common shareholders | $ 796.7 | $ (106.4) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Income tax expense (recovery), equity investments | $ 0.3 | $ (0.3) |
Income tax expense (recovery), cash flow hedges - effective portion | 4.5 | (20.9) |
Income tax expense, cash flow hedges- reclassed to profit or loss | $ 3.2 | $ 0.2 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating: | ||
Net earnings (loss) | $ 717.1 | $ (25.6) |
Adjustments to reconcile net earnings (loss) to net cash provided from operating activities: | ||
Depreciation, depletion and amortization | 731.3 | 772.4 |
Gain on disposition of associate and other interests - net | (2.1) | |
Reversals of impairment charges | (361.8) | |
Equity in (earnings) losses of joint ventures - net | (0.1) | 0.3 |
Share-based compensation expense | 14.3 | 14.6 |
Finance expense | 107.9 | 101.2 |
Deferred tax expense | 41.1 | 8.9 |
Foreign exchange (gains) losses and other | (53.1) | 12.5 |
Reclamation recovery | (11.9) | (8) |
Changes in operating assets and liabilities: | ||
Accounts receivable and other assets | (64.5) | (22.7) |
Inventories | 53.8 | (5.7) |
Accounts payable and accrued liabilities | 165.9 | 69.8 |
Cash flow provided from (used in) operating activities | 1,340 | 915.6 |
Income taxes recovered (paid) | (115.1) | (126.9) |
Net cash flow provided from operating activities | 1,224.9 | 788.7 |
Investing: | ||
Additions to property, plant and equipment | (1,105.2) | (1,043.4) |
Acquisitions | (30) | (304.2) |
Net proceeds from the sale of (additions to) long-term investments and other assets | 71.6 | (52.9) |
Net proceeds from the sale of property, plant and equipment | 31.9 | 6.4 |
Increase in restricted cash | (2.5) | (0.6) |
Interest received and other - net | 7.6 | 7.7 |
Net cash flow used in investing activities | (1,026.6) | (1,387) |
Financing: | ||
Proceeds from drawdown of debt | 300 | 80 |
Repayment of debt | (200) | (80) |
Payment of lease liabilities | (14.3) | |
Interest paid | (55.6) | (57.9) |
Dividends paid to non-controlling interest | (5) | (13) |
Other - net | (1.7) | |
Net cash flow provided from (used in) financing activities | 25.1 | (72.6) |
Effect of exchange rate changes on cash and cash equivalents | 2.7 | (5.9) |
Increase (decrease) in cash and cash equivalents | 226.1 | (676.8) |
Cash and cash equivalents, beginning of period | 349 | 1,025.8 |
Cash and cash equivalents, end of period | $ 575.1 | $ 349 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Common share capital | Contributed surplus | Accumulated deficit | Accumulated other comprehensive income (loss) | Total accumulated deficit and accumulated other comprehensive income (loss) | Total common shareholders' equity | Non-controlling interest | Total |
Balance at the beginning of the period (Previously Stated) at Dec. 31, 2017 | $ (10,580.7) | $ 21.1 | ||||||
Balance at the beginning of the period at Dec. 31, 2017 | $ 14,902.5 | $ 240.7 | (10,524.4) | (35.2) | $ 35.6 | |||
Transfer from contributed surplus on exercise of restricted shares | 10 | |||||||
Options exercised, including cash | 0.9 | |||||||
Share-based compensation | 14.6 | |||||||
Transfer of fair value of exercised options and restricted shares | (15.5) | |||||||
Adjustment of initial application of IFRS 9 | 56.3 | (56.3) | $ (56.3) | |||||
Net earnings (loss) attributable to common shareholders | (23.6) | (23.6) | ||||||
Other comprehensive income (loss), net of tax | (82.8) | (82.8) | ||||||
Losses on cash flow hedges transferred to cost of non-financial assets | 19.5 | |||||||
Net loss attributable to non-controlling interest | (2) | (2) | ||||||
Dividends paid to non-controlling interest | (13) | |||||||
Balance at the end of the period (Previously Stated) at Dec. 31, 2018 | (10,548) | (98.5) | ||||||
Balance at the end of the period at Dec. 31, 2018 | 14,913.4 | 239.8 | (10,548) | (98.5) | $ (10,646.5) | $ 4,506.7 | 20.6 | 4,527.3 |
Transfer from contributed surplus on exercise of restricted shares | 5.3 | |||||||
Options exercised, including cash | 7.5 | |||||||
Share-based compensation | 14.3 | |||||||
Transfer of fair value of exercised options and restricted shares | (12) | |||||||
Adjustment of initial application of IFRS 9 | 0 | 0 | ||||||
Net earnings (loss) attributable to common shareholders | 718.6 | 718.6 | ||||||
Other comprehensive income (loss), net of tax | 78.1 | 78.1 | ||||||
Losses on cash flow hedges transferred to cost of non-financial assets | 0 | |||||||
Net loss attributable to non-controlling interest | (1.5) | (1.5) | ||||||
Dividends paid to non-controlling interest | (5) | |||||||
Balance at the end of the period at Dec. 31, 2019 | $ 14,926.2 | $ 242.1 | $ (9,829.4) | $ (20.4) | $ (9,849.8) | $ 5,318.5 | $ 14.1 | $ 5,332.6 |
DESCRIPTION OF BUSINESS AND NAT
DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2019 | |
DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS | |
DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS | 1. DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS Kinross Gold Corporation and its subsidiaries and joint arrangements (collectively, "Kinross" or the "Company") are engaged in gold mining and related activities, including exploration and acquisition of gold-bearing properties, extraction and processing of gold-containing ore and reclamation of gold mining properties. Kinross Gold Corporation, the ultimate parent, is a public company incorporated and domiciled in Canada with its registered office at 25 York Street, 17th floor, Toronto, Ontario, Canada, M5J 2V5. Kinross' gold production and exploration activities are carried out principally in Canada, the United States, the Russian Federation, Brazil, Chile, Ghana and Mauritania. Gold is produced in the form of doré, which is shipped to refineries for final processing. Kinross also produces and sells a quantity of silver. The Company is listed on the Toronto Stock Exchange and the New York Stock Exchange. The consolidated financial statements of the Company for the year ended December 31, 2019 were authorized for issue in accordance with a resolution of the Board of Directors on February 12, 2020. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2019 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 2. BASIS OF PRESENTATION These consolidated financial statements for the year ended December 31, 2019 (“financial statements”) have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). These financial statements were prepared on a going concern basis under the historical cost method except for certain financial assets and liabilities which are measured at fair value. The Company's significant accounting policies are presented in Note 3 and have been consistently applied in each of the periods presented other than as noted in Note 4. Significant accounting estimates, judgments and assumptions used or exercised by management in the preparation of these financial statements are presented in Note 5. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES i. Principles of consolidation The significant mining properties and entities of Kinross are listed below. All operating activities involve gold mining and exploration. Each of the significant entities has a December 31 year-end. As at December 31, December 31, Entity Property/ Segment Location 2019 2018 Subsidiaries: (Consolidated) Fairbanks Gold Mining, Inc. Fort Knox USA 100 % 100 % Kinross Brasil Mineração S.A. ("KBM") Paracatu Brazil 100 % 100 % Compania Minera Maricunga ("CMM") Maricunga and Lobo-Marte Chile 100 % 100 % Compania Minera Mantos de Oro ("MDO") La Coipa / Corporate and Other Chile 100 % 100 % Echo Bay Minerals Company Kettle River - Buckhorn / Corporate and Other USA 100 % 100 % Chukotka Mining and Geological Company Kupol Russian 100 % 100 % Northern Gold LLC Dvoinoye/ Kupol Russian 100 % 100 % Tasiast Mauritanie Ltd. S.A. Tasiast Mauritania 100 % 100 % Chirano Gold Mines Ltd. (a) Chirano Ghana 90 % 90 % KG Mining (Bald Mountain) Inc. ("KGBM") Bald Mountain USA 100 % 100 % Round Mountain Gold Corporation / KG Mining (Round Mountain) Inc. Round Mountain USA 100 % 100 % Interest in joint venture: (Equity accounted) Sociedad Contractual Minera Puren Puren / Corporate and Other Chile 65 % 65 % (a) The Company holds a 90% interest in Chirano Gold Mines Ltd. with the Government of Ghana having the right to the remaining 10% interest. (a) Subsidiaries Subsidiaries are entities controlled by the Company. Control exists when an investor is exposed, or has rights, to variable returns from its involvement with an investee and has the ability to affect those returns through its power over the investee. Subsidiaries are included in the consolidated financial statements from the date control is obtained until the date control ceases. Where the Company’s interest in a subsidiary is less than 100%, the Company recognizes non-controlling interests. All intercompany balances, transactions, income, expenses, profits and losses, including unrealized gains and losses have been eliminated on consolidation. (b) Joint Arrangements The Company conducts a portion of its business through joint arrangements where the parties are bound by contractual arrangements establishing joint control and requiring unanimous consent of each of the parties regarding those activities that significantly affect the returns of the arrangement. The Company’s interest in a joint arrangement is classified as either a joint operation or a joint venture depending on its rights and obligations in the arrangement. In a joint operation, the Company has rights to its share of the assets, and obligations for its share of the liabilities, of the joint arrangement, while in a joint venture, the Company has rights to its share of the net assets of the joint arrangement. For a joint operation, the Company recognizes in the consolidated financial statements, its share of the assets, liabilities, revenue, and expenses of the joint arrangement, while for a joint venture, the Company recognizes its investment in the joint arrangement using the equity method of accounting in the consolidated financial statements. (c) Associates Associates are entities, including unincorporated entities such as partnerships, over which the Company has significant influence and that are neither subsidiaries nor interests in joint arrangements. Significant influence is the ability to participate in the financial and operating policy decisions of the investee without having control or joint control over those policies. In general, significant influence is presumed to exist when the Company has between 20% and 50% of voting power. Significant influence may also be evidenced by factors such as the Company’s representation on the board of directors, participation in policy-making of the investee, material transactions with the investee, interchange of managerial personnel, or the provision of essential technical information. Associates are equity accounted for from the effective date of commencement of significant influence to the date that the Company ceases to have significant influence. Results of associates are equity accounted for using the results of their most recent annual financial statements or interim financial statements, as applicable. Losses from associates are recognized in the consolidated financial statements until the interest in the associate is written down to nil. Thereafter, losses are recognized only to the extent that the Company is committed to providing financial support to such associates. The carrying value of the investment in an associate represents the cost of the investment, including goodwill, a share of the post-acquisition retained earnings and losses, accumulated other comprehensive income (“AOCI”) and any impairment losses. At the end of each reporting period, the Company assesses whether there is any objective evidence that its investments in associates are impaired. ii. Functional and presentation currency The functional and presentation currency of the Company is the United States dollar. Transactions denominated in foreign currencies are translated into the United States dollar as follows: · Monetary assets and liabilities are translated at the rates of exchange on the consolidated balance sheet date; · Non-monetary assets and liabilities are translated at historical exchange rates prevailing at each transaction date; · Revenue and expenses are translated at the exchange rate at the date of the transaction, except depreciation, depletion and amortization, which are translated at the rates of exchange applicable to the related assets, and share-based compensation expense, which is translated at the rates of exchange applicable on the date of grant of the share-based compensation; and · Exchange gains and losses on translation are included in earnings. When the gain or loss on certain non-monetary items, such as long-term investments classified as and measured at FVOCI, is recognized in other comprehensive income (“OCI”), the related translation differences are also recognized in OCI. iii. Cash and cash equivalents Cash and cash equivalents include cash and highly liquid investments with a maturity of three months or less at the date of acquisition. Restricted cash is cash held in banks that is not available for general corporate use. Cash and cash equivalents, and restricted cash are classified as and measured at amortized cost. iv. Short-term investments Short-term investments include short-term money market instruments with terms to maturity at the date of acquisition of between three and twelve months. The carrying value of short-term investments is equal to cost and accrued interest. Short-term investments are classified as and measured at amortized cost. v. Long-term investments Investments in entities that are not subsidiaries, joint operations, joint ventures or investments in associates are designated as financial assets at FVOCI. These equity investments are measured at fair value on acquisition and at each reporting date, with all realized and unrealized gains and losses recorded permanently in AOCI. vi. Inventories Inventories consisting of metal in circuit ore, metal in-process and finished metal are valued at the lower of cost or net realizable value (“NRV”). NRV is calculated as the difference between the estimated gold prices based on prevailing and long-term metal prices and estimated costs to complete production into a saleable form and estimated costs to sell. Metal in circuit is comprised of ore in stockpiles and ore on heap leach pads. Ore in stockpiles is coarse ore that has been extracted from the mine and is available for further processing. Costs are added to stockpiles based on the current mining cost per tonne and removed at the average cost per tonne. Costs are added to ore on the heap leach pads based on current mining costs and removed from the heap leach pads as ounces are recovered, based on the average cost per recoverable ounce of gold on the leach pad. Ore in stockpiles not expected to be processed in the next twelve months is classified as long-term. The quantities of recoverable gold placed on the leach pads are reconciled by comparing the grades of ore placed on the leach pads to the quantities of gold actually recovered (metallurgical balancing); however, the nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, the metallurgical balancing process is constantly monitored and the engineering estimates are refined based on actual results over time. Variances between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write downs to NRV are accounted for on a prospective basis. The ultimate actual recovery of gold from a leach pad will not be known until the leaching process has concluded. In the event that the Company determines, based on engineering estimates, that a quantity of gold contained in ore on leach pads is to be recovered over a period exceeding twelve months, that portion is classified as long-term. In-process inventories represent materials that are in the process of being converted to a saleable product. Materials and supplies are valued at the lower of average cost and NRV. Write-downs of inventory are recognized in the consolidated statement of operations in the current period. The Company reverses inventory write downs in the event that there is a subsequent increase in NRV. vii. Borrowing costs Borrowing costs are generally expensed as incurred except where they relate to the financing of qualifying assets that require a substantial period of time to get ready for their intended use. Qualifying assets include the cost of developing mining properties and constructing new facilities. Borrowing costs related to qualifying assets are capitalized up to the date when the asset is ready for its intended use. Where funds are borrowed specifically to finance a project, the amount capitalized represents the actual borrowing costs incurred net of any investment income earned on the investment of those borrowings. Where the funds used to finance a project form part of general borrowings, the amount capitalized is calculated using a weighted average of rates applicable to relevant general borrowings of the Company during the period. viii. Business combinations A business combination is a transaction or other event in which control over one or more businesses is obtained. A business is an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs or other economic benefits. A business consists of inputs and processes applied to those inputs that have the ability to create outputs that provide a return to the Company and its shareholders. A business need not include all of the inputs and processes that were used by the acquiree to produce outputs if the business can be integrated with the inputs and processes of the Company to continue to produce outputs. If the integrated set of activities and assets is in the exploration and development stage, and thus, may not have outputs, the Company considers other factors to determine whether the set of activities and assets is a business. Those factors include, but are not limited to, whether the set of activities and assets: · has begun planned principal activities; · has employees, intellectual property and other inputs and processes that could be applied to those inputs; · is pursuing a plan to produce outputs; and · will be able to obtain access to customers that will purchase the outputs. Not all of the above factors need to be present for a particular integrated set of activities and assets in the development stage to qualify as a business. Business acquisitions are accounted for using the acquisition method whereby acquired assets and liabilities are recorded at fair value as of the date of acquisition with the excess of the purchase consideration over such fair value being recorded as goodwill and allocated to cash generating units (“CGUs”). Non-controlling interest in an acquisition may be measured at either fair value or at the non-controlling interest’s proportionate share of the fair value of the acquiree’s net identifiable assets. If the fair value of the net assets acquired exceeds the purchase consideration, the difference is recognized immediately as a gain in the consolidated statement of operations. Where a business combination is achieved in stages, previously held equity interests in the acquiree are re-measured at their acquisition-date fair value and any resulting gain or loss is recognized in the consolidated statement of operations. Acquisition related costs are expensed during the period in which they are incurred, except for the cost of debt or equity instruments issued in relation to the acquisition which is included in the carrying amount of the related instrument. Certain fair values may be estimated at the acquisition date pending confirmation or completion of the valuation process. Where provisional values are used in accounting for a business combination, they are adjusted retrospectively in subsequent periods. However, the measurement period will not exceed one year from the acquisition date. If the assets acquired are not a business, the transaction is accounted for as an asset acquisition. ix. Goodwill Business acquisitions are accounted for using the acquisition method whereby acquired assets and liabilities are recorded at fair value as of the date of acquisition with the excess of the acquisition amount over such fair value being recorded as goodwill and allocated to CGUs. CGUs are the smallest identifiable group of assets, liabilities and associated goodwill that generate cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Each individual mineral property that is an operating or development stage mine is typically a CGU. Goodwill arises principally because of the following factors: (1) the going concern value of the Company’s capacity to sustain and grow by replacing and augmenting mineral reserves through completely new discoveries; (2) the ability to capture buyer-specific synergies arising upon a transaction; (3) the optionality (real option value associated with the portfolio of acquired mines as well as each individual mine) to develop additional higher-cost mineral reserves, to intensify efforts to develop the more promising acquired properties and to reduce efforts at developing the less promising acquired properties in the future (this optionality may result from changes in the overall economics of an individual mine or a portfolio of mines, largely driven by changes in the gold price); and (4) the requirement to record a deferred tax liability for the difference between the assigned values and the tax bases of the assets acquired and liabilities assumed in a business combination. x. Exploration and evaluation (“E&E”) costs Exploration and evaluation costs are those costs required to find a mineral property and determine its commercial viability. E&E costs include costs to establish an initial mineral resource and determine whether inferred mineral resources can be upgraded to measured and indicated mineral resources and whether measured and indicated mineral resources can be converted to proven and probable reserves. E&E costs consist of: · gathering exploration data through topographical and geological studies; · exploratory drilling, trenching and sampling; · determining the volume and grade of the resource; · test work on geology, metallurgy, mining, geotechnical and environmental; and · conducting engineering, marketing and financial studies. Project costs in relation to these activities are expensed as incurred until such time as the Company expects that mineral resources will be converted to mineral reserves within a reasonable period. Thereafter, costs for the project are capitalized prospectively as capitalized exploration and evaluation costs in property, plant and equipment. The Company also recognizes E&E costs as assets when acquired as part of a business combination, or asset purchase. These assets are recognized at fair value. Acquired E&E costs consist of the fair value of: · estimated potential ounces, and · exploration properties. Acquired or capitalized E&E costs for a project are classified as such until the project demonstrates technical feasibility and commercial viability. Upon demonstrating technical feasibility and commercial viability, and subject to an impairment analysis, capitalized E&E costs are transferred to capitalized development costs within property, plant and equipment. Technical feasibility and commercial viability generally coincides with the establishment of proven and probable mineral reserves; however, this determination may be impacted by management’s assessment of certain modifying factors including: legal, environmental, social and governmental factors. xi. Property, plant and equipment Property, plant and equipment are recorded at cost and carried net of accumulated depreciation, depletion and amortization and accumulated impairment losses. The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, the estimate of reclamation and remediation costs, and, for qualifying assets, capitalized borrowing costs. Costs to acquire mineral properties are capitalized and represent the property’s fair value at the time it was acquired, either as an individual asset purchase or as part of a business combination. Interest expense attributable to the cost of developing mining properties and to constructing new facilities is capitalized until assets are ready for their intended use. Acquired or capitalized E&E costs may be included within mineral interests in development and operating properties or pre-development properties depending upon the nature of the property to which the costs relate. Repairs and maintenance costs are expensed as incurred. However, expenditures on major maintenance rebuilds or overhauls are capitalized when it is probable that the expenditures will extend the productive capacity or useful life of an asset. (a) Asset categories The Company categorizes property, plant and equipment based on the type of asset and/or the stage of operation or development of the property. Land, plant and equipment includes land, mobile and stationary equipment, and refining and processing facilities for all properties regardless of their stage of development or operation. Mineral interests consist of: · Development and operating properties, which include capitalized development and stripping costs, cost of assets under construction, E&E costs and mineral interests for those properties currently in operation, for which development has commenced, or for which proven and probable reserves have been declared; and · Pre-development properties, which include E&E costs and mineral interests for those properties for which development has not commenced. (b) Depreciation, depletion and amortization For plant and other facilities, stripping costs, reclamation and remediation costs, production stage mineral interests and plant expansion costs, the Company uses the units-of-production (“UOP”) method for determining depreciation, depletion and amortization, net of residual value. The expected useful lives used in the UOP calculations are determined based on the facts and circumstances associated with the mineral interest. The Company evaluates the proven and probable reserves at least on an annual basis and adjusts the UOP calculation to correspond with the changes in reserves. The expected useful life used in determining UOP does not exceed the estimated life of the ore body based on recoverable ounces to be mined from estimated proven and probable reserves. Any changes in estimates of useful lives are accounted for prospectively from the date of the change. Stripping and other costs incurred in a pit expansion are capitalized and amortized using the UOP method based on recoverable ounces to be mined from estimated proven and probable reserves contained in the pit expansion. Land is not depreciated. Mobile and other equipment are depreciated, net of residual value, using the straight-line method, over the estimated useful life of the asset. Useful lives for mobile and other equipment range from 2 to 10 years, but do not exceed the related estimated mine life based on proven and probable reserves. The Company reviews useful lives and estimated residual values of its property, plant and equipment annually. Acquired or capitalized E&E costs and assets under construction are not depreciated. These assets are depreciated when they are ready for their intended use. (c) Derecognition The carrying amount of an item of property, plant and equipment is derecognized on disposal of the asset or when no future economic benefits are expected to accrue to the Company from its continued use. Any gain or loss arising on derecognition is included in the consolidated statement of operations in the period in which the asset is derecognized. The gain or loss is determined as the difference between the carrying value and the net proceeds on the sale of the assets, if any, at the time of disposal. xii. Valuation of Goodwill and Long-lived Assets Goodwill is tested for impairment on an annual basis as at December 31, and at any other time if events or changes in circumstances indicate that the recoverable amount of a CGU containing goodwill has been reduced below its carrying amount. The carrying value of property, plant and equipment is reviewed each reporting period to determine whether there is any indication of impairment or reversal of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. In addition, capitalized E&E costs are assessed for impairment upon demonstrating the technical feasibility and commercial viability of a project. For such non-current assets, the recoverable amount is determined for an individual asset unless the asset does not generate cash inflows that are independent of those generated from other assets or groups of assets, in which case, the individual assets are grouped together into CGUs for impairment testing purposes. If the carrying amount of the CGU or asset exceeds its recoverable amount, an impairment is considered to exist and an impairment loss is recognized in the consolidated statement of operations to reduce the CGU or asset's carrying value to its recoverable amount. For property, plant and equipment and other long-lived assets, a previously recognized impairment loss is reversed if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited to the carrying value that would have been determined, net of any applicable depreciation, had no impairment charge been recognized previously. The recoverable amount of a CGU or asset is the higher of its fair value less cost of disposal and its value in use. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction between knowledgeable and willing parties. Fair value for mineral assets is generally determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset, including any expansion prospects, and its eventual disposal, using assumptions that an independent market participant may take into account. These cash flows are discounted by an appropriate discount rate to arrive at a net present value or net asset value (“NAV”) of the asset. Value in use is determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset in its present form and its eventual disposal. Value in use is determined by applying assumptions specific to the Company’s continued use of the asset and does not take into account assumptions of significant future enhancements of an asset’s performance or capacity to which the Company is not committed. Estimates of expected future cash flows reflect estimates of future revenues, cash costs of production and capital expenditures contained in the Company’s long-term life of mine (“LOM”) plans, which are updated for each CGU on an annual basis. xiii. Leases Right-of-use assets and lease liabilities are recognized at the commencement date of a lease. Lease liabilities are initially measured at the present value of lease payments to be paid after the lease’s commencement date, discounted using the interest rate implicit in the lease, or if not readily determinable, the Company's incremental borrowing rate. Right-of-use assets are initially measured at cost, which consists of the initial amount of the lease liability adjusted for any lease payments made on or before the lease’s commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle or restore the leased asset, less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the useful life of the asset or the term of the lease. If a purchase option is expected to be exercised, the asset is amortized over its useful life. Lease liabilities are subsequently measured at amortized cost using the effective interest method and are re-measured if and when there is a change in future lease payments arising from a change in an index or rate, or if and when there is a change in the assessment of whether a purchase, extension or termination option is likely to be exercised. Lease payments for short-term leases, which have a lease term of 12 months or less, leases of low-value assets, which have an underlying asset value, when new, of $5,000 or less, as well as leases with variable lease payments are recognized as an expense over the term of such leases. xiv. Financial instruments and hedging activity (a) Financial instrument classification and measurement Financial assets are classified according to their contractual cash flow characteristics and the business models under which they are held. On initial recognition, a financial asset is classified as: amortized cost, fair value through profit and loss (“FVPL”) or FVOCI. A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as FVPL: · it is held with the objective of collecting contractual cash flows; and · its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to measure the investment at FVOCI whereby changes in the investment’s fair value (realized and unrealized) will be recognized permanently in OCI with no reclassification to profit or loss. The election is made on an investment-by-investment basis. All financial assets not classified as amortized cost or FVOCI are classified as and measured at FVPL. This includes all derivative assets. On initial recognition, a financial asset that otherwise meets the requirements to be measured at amortized cost or FVOCI may be irrevocably designated as FVPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. Financial instruments are measured on initial recognition at fair value, plus, in the case of financial instruments other than those classified as FVPL, directly attributable transaction costs. Measurement of financial assets in subsequent periods depends on whether the financial asset has been classified as amortized cost, FVPL or FVOCI. Measurement of financial liabilities subsequent to initial recognition depends on whether they are classified as amortized cost or FVPL. Financial assets and financial liabilities classified as amortized cost are measured subsequent to initial recognition using the effective interest method. Loss allowances for ‘expected credit losses’ are recognized on financial assets measured at amortized cost, contract assets and investments in debt instruments measured at FVOCI, but not to equity investments. A loss event is not required to have occurred before a credit loss is recognized. The Company has classified and measured its financial instruments as described below: · Cash and cash equivalents, restricted cash and short-term investments are classified as and measured at amortized cost. · Trade receivables and certain other assets are classified as and measured at amortized cost. · Long-term investments in equity securities, where the Company cannot exert significant influence, are classified as and measured at FVOCI. · Accounts payable and accrued liabilities and long-term debt are classified as and measured at amortized cost. · Derivative assets and liabilities including derivative financial instruments that do not qualify as hedges, or are not designated as hedges, and are classified as and measured at FVPL. (b) Hedges The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategies for undertaking hedge transactions. This process includes linking all derivatives to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. Hedge effectiveness is assessed based on the degree to which the cash flows from the derivative contracts are expected to offset the cash flows of the underlying position or transaction being hedged. At the time of inception of the hedge and on an ongoing basis, the Company assesses whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. Derivative contracts that have been designated as cash flow hedges have been entered into in order to effectively establish prices for future production of metals, to hedge exposure to exchange rate fluctuations of foreign currency denominated settlement of capital and operating expenditures, to establish prices for future purchases of energy or to hedge exposure to interest rate fluctuations. Unrealized gains or losses arising from changes in the fair value of these contracts are recorded in OCI, net of tax, and are included in earnings when the underlying hedged transaction, identified at the contract inception, is completed, unless such hedged transaction results in the recognition of a non-financial asset. Any ineffective portion of a hedge relationship is recognized immediately in earnings. The Company matches the realized gains or losses on contracts designated as cash flow hedges with the hedged expenditures at the maturity of the contracts. When derivative contracts designated as cash flow hedges have been terminated or cease to be effective prior to maturity and no longer qualify for hedge accounting, any gains or losses recorded in OCI up until the time the contracts do not qualify for hedge accounting, remain in OCI. These amounts recorded in OCI are recognized in earnings in the period in which the underlying hedged transaction is completed. Gains or losses arising subsequent to the derivative contracts not qualifying for hedge accounting are recognized in earnings in the period in which they occur. For hedges that do not qualify for hedge accounting, gains or losses are recognized in earnings in the current period. xv. Share-based payments The Company has a number of equity-settled and cash-settled share-based compensation plans under which the Company issues either equity instruments or makes cash payments based on the value of the underlying equity instrument of the Company. The Company’s share-based compensation plans are comprised of the following: Share Option Plan: Stock options are generally equity-settled. The fair value of stock options at the grant date is estimated using the Black-Scholes option pricing model. Compensation expense is recognized over the stock option vesting period based on the number of options estimated to vest. Management estimates the number of awards likely to vest at the time of a grant and at each reporting date up to the vesting date. Annually, the estimated forfeiture rate is adjusted for actual forfeitures in the period. On exercise of the vested options, either shares are issued from treasury, or the options are cancelled and a cash payment |
CHANGES IN SIGNIFICANT ACCOUNTI
CHANGES IN SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
CHANGES IN SIGNIFICANT ACCOUNTING POLICIES | |
CHANGES IN SIGNIFICANT ACCOUNTING POLICIES | 4. CHANGES IN SIGNIFICANT ACCOUNTING POLICIES The Company adopted the following new accounting standard issued by the IASB as of January 1, 2019. Leases On January 1, 2019, IFRS 16 “Leases” was applied using the modified retrospective approach, under which the cumulative effect of initial application was recognized on the consolidated balance sheet as at January 1, 2019 without restating the financial statements on a retrospective basis. IFRS 16 replaces IAS 17 “Leases” and requires a lessee to recognize assets and liabilities for most leases on its balance sheet, as well as associated depreciation and interest expense. At inception of a contract, the Company will determine whether a contract is, or contains, a lease. A lease exists if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company has elected to apply the practical expedient to account for each lease component and any non-lease components as a single lease component. A right-of-use asset and a lease liability are recognized at the commencement date of a lease. The lease liability is initially measured at the present value of lease payments to be paid after the commencement date, discounted using the interest rate implicit in the lease, or if not readily determinable, the lessee’s incremental borrowing rate. The right-of-use asset is initially measured at cost, which consists of the initial amount of the lease liability adjusted for any lease payments made on or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle or restore the leased asset, less any lease incentives received. On the date of initial application (January 1, 2019), the Company elected to record right-of-use assets based on their related lease liabilities and to account for leases for which the lease term ends within 12 months of the initial date of application as short-term leases. Additional assets and lease liabilities were recognized on the consolidated balance sheet, as of January 1, 2019, for qualifying leases of office space, buildings, vehicles and equipment. As a result, increases in associated depreciation and interest expense were incurred from the initial date of application of IFRS 16. Cash flows from operating activities have also increased under IFRS 16, as lease payments for most leases are recorded as cash flows used in financing activities in the consolidated statements of cash flows. The following table summarizes the impact of the transition to IFRS 16: As at December 31, 2018 IFRS 16 Adjustments As at January 1, 2019 Property, plant and equipment $ 5,519.1 $ 42.9 $ 5,562.0 Current portion of lease liabilities (a) $ — $ 7.3 $ 7.3 Long-term lease liabilities $ — $ 35.6 $ 35.6 (a) Current portion of lease liabilities is included in other current liabilities on the consolidated balance sheet. See Note 7ix . The following table reconciles the Company’s operating lease commitments as at December 31, 2018 to the lease liabilities recognized on the consolidated balance sheet upon the initial application of IFRS 16 as of January 1, 2019: Operating lease commitments as at December 31, 2018 $ 70.3 Discounted as at January 1, 2019 (a) $ 53.7 IFRS 16 recognition exemption for short-term leases (4.3) Leases with extension options reasonably certain to be exercised 2.1 Leases with variable lease payments (15.2) Other adjusting items 6.6 Total lease liabilities recognized as at January 1, 2019 $ 42.9 (a) The weighted-average incremental borrowing rate applied to the measurement of lease liabilities as at January 1, 2019 was 7.04%. The Company has elected not to recognize assets and lease liabilities for short-term leases, which have a lease term of 12 months or less, and leases of low-value assets, which have an underlying asset value, when new, of $5,000 or less, as well as leases with variable lease payments. Lease payments associated with these leases are recognized as an expense over the term of such leases. The following table summarizes such lease payments that have been expensed for the year ended December 31, 2019: Leases with a term of 12 months or less $ 23.7 Leases of assets with underlying value, when new, of $5,000 or less 0.4 Leases with variable lease payments 23.3 $ 47.4 The following table summarizes total undiscounted lease liability maturities as at December 31, 2019: 2020 2021-2024 2025+ Total Within 1 year 1 to 5 years More than 5 years Lease liabilities $ 65.4 $ 16.0 $ 31.7 $ 17.7 |
SIGNIFICANT JUDGMENTS, ESTIMATE
SIGNIFICANT JUDGMENTS, ESTIMATES AND ASSUMPTIONS | 12 Months Ended |
Dec. 31, 2019 | |
SIGNIFICANT JUDGMENTS, ESTIMATES AND ASSUMPTIONS | |
SIGNIFICANT JUDGMENTS, ESTIMATES AND ASSUMPTIONS | 5. SIGNIFICANT JUDGMENTS, ESTIMATES AND ASSUMPTIONS The preparation of the Company’s financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates and assumptions are continually evaluated and are based on management’s experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results could differ from these estimates. i. Significant Judgments in Applying Accounting Policies The areas which require management to make significant judgments in applying the Company’s accounting policies in determining carrying values include, but are not limited to: (a) Mineral Reserves and Mineral Resources The information relating to the geological data on the size, depth and shape of the ore body requires complex geological judgments to interpret the data. Changes in the proven and probable mineral reserves or measured and indicated and inferred mineral resources estimates may impact the carrying value of property, plant and equipment, goodwill, reclamation and remediation obligations, recognition of deferred tax amounts and depreciation, depletion and amortization. (b) Depreciation, depletion and amortization Significant judgment is involved in the determination of useful lives and residual values for the computation of depreciation, depletion and amortization and no assurance can be given that actual useful lives and residual values will not differ significantly from current assumptions. (c) Taxes The Company is subject to income taxes in numerous jurisdictions. Significant judgment is required in determining the provision for income taxes, due to the complexity of legislation. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. ii. Significant Accounting Estimates and Assumptions The areas which require management to make significant estimates and assumptions in determining carrying values include, but are not limited to: (a) Mineral Reserves and Mineral Resources Proven and probable mineral reserves are the economically mineable parts of the Company’s measured and indicated mineral resources demonstrated by at least a preliminary feasibility study. The Company estimates its proven and probable mineral reserves and measured and indicated and inferred mineral resources based on information compiled by appropriately qualified persons. The estimation of future cash flows related to proven and probable mineral reserves is based upon factors such as estimates of commodity prices, foreign exchange rates, future capital requirements and production costs along with geological assumptions and judgments made in estimating the size and grade of the ore body. Changes in the proven and probable mineral reserves or measured and indicated and inferred mineral resources estimates may impact the carrying value of property, plant and equipment, goodwill, reclamation and remediation obligations, recognition of deferred tax amounts and depreciation, depletion and amortization. (b) Purchase Price Allocation Applying the acquisition method to business combinations requires each identifiable asset and liability to be measured at its acquisition-date fair value. The excess, if any, of the fair value of consideration over the fair value of the net identifiable assets acquired is recognized as goodwill. The determination of the acquisition-date fair values often requires management to make assumptions and estimates about future events. The assumptions and estimates relating to determining the fair value of property, plant and equipment acquired generally require a high degree of judgment, and include estimates of mineral reserves acquired, future metal prices and discount rates. Changes in any of the assumptions or estimates used in determining the fair value of acquired assets and liabilities could affect the amounts assigned to assets, liabilities and goodwill in the purchase price allocation. (c) Depreciation, depletion and amortization Plants and other facilities used directly in mining activities are depreciated using the UOP method over a period not to exceed the estimated life of the ore body based on recoverable ounces to be mined from proven and probable reserves. Mobile and other equipment is depreciated, net of residual value, on a straight-line basis, over the useful life of the equipment but does not exceed the related estimated life of the mine based on proven and probable reserves. The calculation of the UOP rate, and therefore the annual depreciation, depletion and amortization expense, could be materially affected by changes in the underlying estimates. Changes in estimates can be the result of actual future production differing from current forecasts of future production, expansion of mineral reserves through exploration activities, differences between estimated and actual costs of mining and differences in gold price used in the estimation of mineral reserves. (d) Valuation of goodwill and long-lived assets The assessment of fair values, including those of the CGUs for purposes of testing goodwill for potential impairment and long-lived assets for potential impairment or reversal of impairment, require the use of estimates and assumptions for recoverable production, future capital requirements and operating performance, as contained in the Company’s life of mine (“LOM”) plans, as well as future and long-term commodity prices, discount rates, NAV multiples, and foreign exchange rates. Changes in any of the assumptions or estimates used in determining the fair value of goodwill or other long-lived assets could impact the impairment analysis. The Company’s LOM plans are based on detailed research, analysis and modeling to maximize the NAV of each CGU. As such, these plans consider the optimal level of investment, overall production levels and sequence of extraction taking into account all relevant characteristics of the ore body, including waste to ore ratios, ore grades, haul distances, chemical and metallurgical properties impacting process recoveries, capacities of available extraction, haulage and processing equipment, and other factors. Therefore, the LOM plan is an appropriate basis for forecasting production output in each future year and the related production costs and capital expenditures. The LOM plans have been determined using cash flow projections from financial budgets approved by senior management covering a 3 year to 18 year period. Projected future revenues reflect the forecast future production levels at each of the Company’s CGUs as detailed in the LOM plans. These forecasts may include the production of mineralized material that does not currently qualify for inclusion in mineral reserve or mineral resource classification. This is consistent with the methodology used to measure value beyond proven and probable reserves when allocating the purchase price of a business combination to acquired mining assets. The fair value arrived at as described above, is the Company’s estimate of fair value for accounting purposes and is not a “preliminary assessment” as defined in Canadian Securities Administrators’ National Instrument 43-101 “Standards of Disclosure for Mineral Projects”. Projected future revenues also reflect the Company’s estimates of future metals prices, which are determined based on current prices, forward prices and forecasts of future prices prepared by industry analysts. These estimates often differ from current price levels, but the methodology used is consistent with how a market participant would assess future long-term metals prices. For the 2019 annual analysis, estimated short-term and long-term prices of gold and silver of $1,400 per ounce and $17.50 per ounce, respectively, were used. For the 2018 annual analysis, estimated short-term and long-term prices of gold and silver of $1,300 per ounce and $18.00 per ounce, respectively, were used. The Company’s estimates of future cash costs of production and capital expenditures are based on the LOM plans for each CGU. Costs incurred in currencies other than the US dollar are translated to US dollar equivalents based on long-term forecasts of foreign exchange rates, on a currency by currency basis, obtained from independent sources of economic data. Oil prices are a significant component of cash costs of production and are estimated based on the current price, forward prices, and forecasts of future prices from third party sources. For the 2019 annual analysis, estimated short-term and long-term oil prices of $60 per barrel were used. For the 2018 annual analysis, estimated short-term and long-term oil prices of $65 and $55 per barrel respectively, were used. The discount rate applied to present value the net future cash flows is based on a real weighted average cost of capital by country to account for geopolitical risk. For the 2019 annual analysis, real discount rates of between 3.33% and 6.97% were used for the CGUs tested. For the CGUs tested in the 2018 annual analysis, real discount rates of between 4.86% and 7.12% were used. Since public gold companies typically trade at a market capitalization that is based on a multiple of their underlying NAV, a market participant would generally apply a NAV multiple when estimating the fair value of a gold mining property. Consequently, where applicable, the Company estimates the fair value of each CGU by applying a market NAV multiple to the NAV of each CGU. When selecting NAV multiples to arrive at fair value, the Company considered the trading prices and NAV estimates of comparable gold mining companies as at December 31, 2019 in respect of the fair value determinations at that date, which ranged from 0.8 to 1.7. NAV multiples observed at December 31, 2018 were in the range of 0.9 to 1.4. The selected ranges of multiples applied to each CGU, which may be different from the ranges noted above, took into consideration, among other factors: expected production growth in the near term; average cash costs over the life of the mine; potential remaining mine life; and stage of development of the asset. (e) Inventories Expenditures incurred, and depreciation, depletion and amortization of assets used in mining and processing activities are deferred and accumulated as the cost of ore in stockpiles, ore on leach pads, in-process and finished metal inventories. These deferred amounts are carried at the lower of average cost or NRV. Write-downs of ore in stockpiles, ore on leach pads, in-process and finished metal inventories resulting from NRV impairments are reported as a component of current period costs. The primary factors that influence the need to record write-downs include prevailing and long-term metal prices and prevailing costs for production inputs such as labour, fuel and energy, materials and supplies, as well as realized ore grades and actual production levels. Costs are attributed to the leach pads based on current mining costs, including applicable depreciation, depletion and amortization relating to mining operations incurred up to the point of placing the ore on the pad. Costs are removed from the leach pad based on the average cost per recoverable ounce of gold on the leach pad as the gold is recovered. Estimates of recoverable gold on the leach pads are calculated from the quantities of ore placed on the pads, the grade of ore placed on the leach pads and an estimated percentage of recovery. Timing and ultimate actual recovery of gold contained on leach pads can vary significantly from the estimates. The quantities of recoverable gold placed on the leach pads are reconciled to the quantities of gold actually recovered (metallurgical balancing), by comparing the grades of ore placed on the leach pads to actual ounces recovered. The nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, the metallurgical balancing process is constantly monitored and the engineering estimates are refined based on actual results over time. The ultimate actual recovery of gold from a pad will not be known until the leaching process is completed. The allocation of costs to ore in stockpiles, ore on leach pads and in-process inventories and the determination of NRV involve the use of estimates. There is a high degree of judgment in estimating future costs, future production levels, forecasted usage of supplies inventory, proven and probable reserves estimates, gold and silver prices, and the ultimate estimated recovery for ore on leach pads. There can be no assurance that actual results will not differ significantly from estimates used in the determination of the carrying value of inventories. (f) Provision for reclamation and remediation The Company assesses its provision for reclamation and remediation on an annual basis or when new material information becomes available. Mining and exploration activities are subject to various laws and regulations governing the protection of the environment. In general, these laws and regulations are continually changing and the Company has made, and intends to make in the future, expenditures to comply with such laws and regulations. Accounting for reclamation and remediation obligations requires management to make estimates of the future costs the Company will incur to complete the reclamation and remediation work required to comply with existing laws and regulations at each mining operation. Actual costs incurred may differ from those amounts estimated. Also, future changes to environmental laws and regulations could increase the extent of reclamation and remediation work required to be performed by the Company. Increases in future costs could materially impact the amounts charged to operations for reclamation and remediation. The provision represents management’s best estimate of the present value of the future reclamation and remediation obligation. The actual future expenditures may differ from the amounts currently provided. (g) Deferred taxes The Company recognizes the deferred tax benefit related to deferred income and resource tax assets to the extent recovery is probable. Assessing the recoverability of deferred income tax assets requires management to make estimates of future taxable profit. To the extent that future cash flows and taxable profit differ significantly from estimates, the ability of the Company to realize the net deferred tax assets recorded at the balance sheet date could be impacted. In addition, future changes in tax laws could limit the ability of the Company to obtain tax deductions in future periods from deferred income and resource tax assets. (h) Contingencies Due to the size, complexity and nature of the Company’s operations, various legal and tax matters are outstanding from time to time. Contingencies can be possible assets or liabilities arising from past events which, by their nature, will only be resolved when one or more future events not wholly within our control occur or fail to occur. The assessment of such contingencies involves the use of significant judgment and estimates. In the event that management’s estimate of the future resolution of these matters changes, the Company will recognize the effects of the changes in its consolidated financial statements on the date such changes occur. |
ACQUISITIONS AND DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 12 Months Ended |
Dec. 31, 2019 | |
ACQUISITIONS AND DISPOSITIONS | |
ACQUISITIONS AND DISPOSITIONS | 6. ACQUISITIONS AND DISPOSITIONS i. Acquisition of Chulbatkan development project On July 31, 2019, the Company announced an agreement to acquire the Chulbatkan development project located in Khabarovsk Krai, Far East Russia, from N-Mining Limited (“N-Mining”), for total fixed consideration of $283.0 million. In addition, N-Mining will be entitled to receive an economic participation equivalent to a 1.5% Net Smelter Return (“NSR”) royalty on future production from the deposit area, as well as $50 per ounce of future proven and probable reserves beyond the first 3.25 million of declared proven and probable ounces. Kinross will retain the right to buy-back 1/3 of the 1.5% NSR royalty for $10 million, subject to certain gold price related adjustments, at any time within 24 months of closing. On January 16, 2020, the Company closed the acquisition of the Chulbatkan development project. In accordance with an amended acquisition agreement, the first installment of $141.5 million, representing 50% of the $283.0 million fixed purchase price due by closing, less closing adjustments, was paid in cash. The amendment also provides that between 60%, and at the Company’s sole discretion up to 100%, of the final installment of $141.5 million, due on the first anniversary of closing, may be paid in Kinross shares. ii. Disposition of royalty portfolio On December 2, 2019, the Company entered into an agreement with Maverix Metals Inc. (“Maverix”) to sell a royalty portfolio of precious metals royalties. On December 19, 2019, the Company completed the sale for total consideration of $73.9 million, including $25.0 million in cash and approximately 11.2 million common shares, representing 9.4% of the issued and outstanding common shares, of Maverix. The Company recognized a gain on disposition of $72.7 million in other income in connection with the sale. See Note 7xii. iii. Acquisition of La Coipa Phase 7 mining concessions On February 2, 2018, Compania Minera Mantos de Oro, a subsidiary of the Company, agreed to purchase the remaining 50% interest in the Phase 7 concessions surrounding Kinross’ La Coipa mine that it did not already own from Salmones de Chile Alimentos S.A. On March 19, 2018, the Company completed the acquisition. The purchase price of $65.1 million was comprised of $65.0 million in cash and transaction costs of $0.1 million, of which an initial payment of $35.1 million, including transaction costs was paid on closing and the balance of $30.0 million was paid on January 30, 2019. The acquisition was accounted for as an asset acquisition, and the purchase price of $65.1 million was allocated to development and operating properties within mineral interests in property, plant and equipment. iv. Acquisition of power plants in Brazil On February 14, 2018, Kinross Brasil Mineração S.A., a subsidiary of the Company, signed an agreement to acquire two hydroelectric power plants in the State of Goias, Brazil from a subsidiary of Gerdau SA for $253.7 million (R$835.0 million). On July 31, 2018, the Company completed the transaction. Transaction costs associated with the acquisition totaling $3.4 million were expensed and included within other operating expense. The acquisition, which was accounted for as a business combination as at July 31, 2018, is expected to secure a long-term supply of power and lower production costs over the life of the mine at Paracatu. In finalizing the purchase price allocation during the first quarter of 2019, the Company adjusted the preliminary purchase price allocation as indicated below: Preliminary Adjustments Final Property, plant and equipment $ 253.7 $ (26.6) $ 227.1 Intangible assets — 27.0 27.0 Environmental provisions — (0.4) (0.4) Total purchase price $ 253.7 $ — $ 253.7 As a result of reflecting the final purchase price adjustments retrospectively, there were no material adjustments necessary to the consolidated financial statements for the year ended December 31, 2018. v. Acquisition of remaining 50% interest in Bald Mountain exploration joint venture On completion of the acquisition of the Bald Mountain mine in January 2016, KGBM, a subsidiary of the Company, entered into a 50/50 exploration joint venture with Barrick Gold Corporation (“Barrick”). On October 2, 2018, KGBM signed and completed a transaction with Barrick to acquire the remaining 50% interest in the exploration joint venture that it did not already own for consideration including $15.5 million in cash and a 1.25% net smelter royalty. Transaction costs associated with the acquisition were $0.1 million. |
CONSOLIDATED FINANCIAL STATEMEN
CONSOLIDATED FINANCIAL STATEMENT DETAILS | 12 Months Ended |
Dec. 31, 2019 | |
CONSOLIDATED FINANCIAL STATEMENT DETAILS | |
CONSOLIDATED FINANCIAL STATEMENT DETAILS | 7. CONSOLIDATED FINANCIAL STATEMENT DETAILS Consolidated Balance Sheets i. Cash and cash equivalents: December 31, December 31, 2019 2018 Cash on hand and balances with banks $ 305.6 $ 207.9 Short-term deposits 269.5 141.1 $ 575.1 $ 349.0 Restricted cash: December 31, December 31, 2019 2018 Restricted cash (a) $ 15.2 $ 12.7 (a) Restricted cash relates to loan escrow judicial deposits and environmental indemnity deposits. ii. Accounts receivable and other assets: December 31, December 31, 2019 2018 Trade receivables $ 6.9 $ 3.6 Prepaid expenses 25.2 21.3 VAT receivable 69.6 48.4 Deposits 10.5 8.5 Other 18.0 19.6 $ 130.2 $ 101.4 iii. Inventories: December 31, December 31, 2019 2018 Ore in stockpiles (a) $ 300.3 $ 299.9 Ore on leach pads (b) 384.7 375.0 In-process 99.2 113.5 Finished metal 52.3 50.5 Materials and supplies 520.6 540.7 1,357.1 1,379.6 Long-term portion of ore in stockpiles and ore on leach pads (a),(b) (303.3) (327.6) $ 1,053.8 $ 1,052.0 (a) Ore in stockpiles relates to the Company’s operating mines. Low-grade material not scheduled for processing within the next 12 months is included in other long-term assets on the consolidated balance sheets. See Note 7vii. (b) Ore on leach pads relates to the Company's Tasiast, Fort Knox, Round Mountain and Bald Mountain mines. Based on current mine plans, the Company expects to place the last tonne of ore on its leach pads at Tasiast in 2020, Bald Mountain in 2023, Round Mountain in 2026 and Fort Knox in 2028. Material not scheduled for processing within the next 12 months is included in other long-term assets on the consolidated balance sheets. See Note 7vii. iv. Property, plant and equipment: Mineral Interests Development and Land, plant and operating Pre-development equipment (a) properties (b) properties Total Cost Balance at January 1, 2019 $ 9,184.2 $ 8,816.6 $ 13.4 $ 18,014.2 Additions 607.5 666.5 — 1,274.0 Capitalized interest 14.7 32.7 — 47.4 Disposals (69.9) — — (69.9) Other (21.5) 24.8 — 3.3 Balance at December 31, 2019 9,715.0 9,540.6 13.4 19,269.0 Accumulated depreciation, depletion, amortization and reversal of impairment charges Balance at January 1, 2019 $ (5,702.1) $ (6,793.0) $ — $ (12,495.1) Depreciation, depletion and amortization (572.9) (280.6) — (853.5) Reversals of impairment charges (c) 102.4 259.4 — 361.8 Disposals 60.5 — — 60.5 Other (2.0) (0.7) — (2.7) Balance at December 31, 2019 (6,114.1) (6,814.9) — (12,929.0) Net book value $ 3,600.9 $ 2,725.7 $ 13.4 $ 6,340.0 Amount included above as at December 31, 2019: Assets under construction $ 308.8 $ 438.2 $ — $ 747.0 Assets not being depreciated (d) $ 538.3 $ 735.9 $ 13.4 $ 1,287.6 (a) Additions includes $42.9 million of transitional adjustments for the recognition of leased right-of-use assets upon the Company’s adoption of IFRS 16 on January 1, 2019 (See Note 4), as well as $22.7 million of right-of-use assets for lease arrangements entered into during the year ended December 31, 2019. Depreciation, depletion and amortization includes depreciation for leased right-of-use assets of $11.5 million during the year ended December 31, 2019. The net book value of property, plant and equipment includes leased right-of-use assets with an aggregate net book value of $54.1 million as at December 31, 2019. (b) At December 31, 2019, the significant development and operating properties include projects at Fort Knox, Round Mountain, Bald Mountain, Paracatu, Kupol, Tasiast, Chirano, La Coipa and Lobo-Marte. (c) At December 31, 2019, impairment reversals were recorded at Paracatu and Tasiast, entirely related to property, plant and equipment. See Note 8. (d) Assets not being depreciated relate to land, capitalized E&E costs, assets under construction, which relate to expansion projects, and other assets that are in various stages of being readied for use. Mineral Interests Development and Land, plant and operating Pre-development equipment properties (a) properties Total Cost Balance at January 1, 2018 $ 8,374.7 $ 8,311.5 $ 15.5 $ 16,701.7 Additions 629.4 457.1 — 1,086.5 Acquisitions (b) 274.8 65.1 — 339.9 Capitalized interest 23.8 17.7 — 41.5 Disposals (115.7) (39.9) (2.1) (157.7) Other (2.8) 5.1 — 2.3 Balance at December 31, 2018 9,184.2 8,816.6 13.4 18,014.2 Accumulated depreciation, depletion and amortization Balance at January 1, 2018 $ (5,308.4) $ (6,506.1) $ — $ (11,814.5) Depreciation, depletion and amortization (508.5) (317.0) — (825.5) Disposals 106.5 39.9 — 146.4 Other 8.3 (9.8) — (1.5) Balance at December 31, 2018 (5,702.1) (6,793.0) — (12,495.1) Net book value $ 3,482.1 $ 2,023.6 $ 13.4 $ 5,519.1 Amount included above as at December 31, 2018: Assets under construction $ 495.0 $ 288.5 $ — $ 783.5 Assets not being depreciated (c) $ 719.1 $ 584.3 $ 13.4 $ 1,316.8 (a) At December 31, 2018, the significant development and operating properties include projects at Fort Knox, Round Mountain, Bald Mountain, Paracatu, Kupol, Tasiast, Chirano, La Coipa and Lobo-Marte. (b) During the year ended December 31, 2018, the Company completed the acquisitions of the remaining 50% interest in the La Coipa Phase 7 mining concessions that it did not already own, two hydroelectric power plants in Brazil and the remaining 50% interest in the Bald Mountain exploration joint venture. See Notes 6iii, iv and v. (c) Assets not being depreciated relate to land, capitalized E&E costs, assets under construction, which relate to expansion projects, and other assets that are in various stages of being readied for use. Capitalized interest primarily relates to qualifying capital expenditures at Tasiast, Round Mountain, Bald Mountain, Fort Knox and Paracatu and had a weighted average borrowing rate of 5.49% and 5.62% during the years ended December 31, 2019 and 2018, respectively. At December 31, 2019, $251.4 million of E&E assets were included in mineral interests (December 31, 2018 - $230.7 million). During the year ended December 31, 2019, the Company capitalized $20.7 million and expensed $17.4 million of E&E costs, respectively (year ended December 31, 2018 - $3.1 million and $11.5 million, respectively). Expensed E&E costs are included as operating cash flows in the consolidated statements of cash flows. During the year ended December 31, 2019, the Company did not have any acquisitions, dispositions or transfers of E&E assets to capitalized development (year ended December 31, 2018 - $65.1 million, $2.0 million and $nil, respectively). v. Goodwill: As at December 31, 2019 , goodwill of $158.8 million related to Kupol. As at December 31, 2018, goodwill of $162.7 million was comprised of goodwill for Kupol of $158.8 million and for other operations of $3.9 million. vi. Long-term investments: Gains and losses on equity investments classified as financial assets at FVOCI were as follows: December 31, 2019 December 31, 2018 Gains (losses) in Gains (losses) in Fair value AOCI (a) Fair value AOCI (a) Investments in an accumulated gain position $ 79.8 $ 10.3 $ 76.1 $ 4.5 Investments in an accumulated loss position 46.4 (36.5) 79.8 (78.7) Net realized gains (losses) — — — (1.0) $ 126.2 $ (26.2) $ 155.9 $ (75.2) (a) See the consolidated statements of comprehensive income (loss) for details of changes in fair value recognized in other comprehensive income during the years ended December 31, 2019 and 2018. On December 9, 2019, the Company sold its investment in common shares of Lundin Gold Inc. to a syndicate of buyers for proceeds of $113.2 million. vii. Other long-term assets: December 31, December 31, 2019 2018 Long-term portion of ore in stockpiles and ore on leach pads (a) $ 303.3 $ 327.6 Deferred charges, net of amortization 32.5 9.7 Long-term receivables (b) 171.0 182.5 Advances for the purchase of capital equipment 15.1 3.0 Other 46.3 41.3 $ 568.2 $ 564.1 (a) Long-term portion of ore in stockpiles and ore on leach pads represents low-grade material not scheduled for processing within the next 12 months. As at December 31, 2019, long-term ore in stockpiles was at the Company’s Fort Knox, Kupol, Tasiast, Chirano and Paracatu mines, and long-term ore on leach pads was at the Company’s Fort Knox, Round Mountain, and Tasiast mines. (b) As at December 31, 2019, long-term receivables includes an estimated benefit of $34.5 million (December 31, 2018 - $66.1 million) related to the enactment of U.S. Tax Reform legislation in December 2017. See Note 17 for additional information regarding U.S. Tax Reform impacts. viii. Accounts payable and accrued liabilities: December 31, December 31, 2019 2018 Trade payables $ 89.3 $ 89.1 Accrued liabilities 246.7 260.6 Employee related accrued liabilities 133.3 116.2 $ 469.3 $ 465.9 ix. December 31, December 31, 2019 2018 Current portion of lease liabilities $ 16.0 $ — Current portion of unrealized fair value of derivative liabilities (a) 4.3 22.2 Deferred payment obligation (b) — 30.0 $ 20.3 $ 52.2 (a) See Note 10 for details of the current portion of unrealized fair value of derivative liabilities. (b) On January 30, 2019 Kinross paid the deferred payment obligation of $30.0 million relating to the purchase of the remaining 50% interest in the Phase 7 concessions of the La Coipa mine. See Note 6iii. x. Accumulated other comprehensive income (loss): Long-term Derivative Investments Contracts Total Balance at December 31, 2017 $ 6.9 $ 14.2 $ 21.1 Adjustment on initial application of IFRS 9 (56.3) — (56.3) Other comprehensive loss before tax (26.1) (77.7) (103.8) Tax 0.3 20.7 21.0 Losses on cash flow hedges transferred to cost of non-financial assets (a) — 19.5 19.5 Balance at December 31, 2018 $ (75.2) $ (23.3) $ (98.5) Other comprehensive income before tax 49.3 36.8 86.1 Tax (0.3) (7.7) (8.0) Balance at December 31, 2019 $ (26.2) $ 5.8 $ (20.4) (a) Net of tax recovery of $10.0 million. Consolidated Statements of Operations xi. Other operating expense: Years ended December 31, 2019 2018 Other operating expense $ 108.5 $ 137.0 $ 108.5 $ 137.0 Other operating expense of $108.5 million for the year ended December 31, 2019 includes $25.1 million of costs as a result of production issues associated with the pit wall slide at Fort Knox, and environmental and other operating expenses for closed mining sites of $35.6 million, and was reduced by $17.5 million as a result of additional federal VAT credits at Paracatu due to changes in Brazil’s tax regulations. Other operating expense of $137.0 million for the year ended December 31, 2018 includes $37.9 million of costs as a result of production issues associated with the pit wall slide at Fort Knox, and environmental and other operating expenses for closed mining sites of $28.7 million. xii. Other income – net: Years ended December 31, 2019 2018 Gains (losses) on dispositions of other assets - net (a) $ 70.4 $ (0.8) Foreign exchange gains (losses) - net 0.6 (4.3) Net non-hedge derivative gains (losses) 1.4 (1.2) Other 0.2 9.5 $ 72.6 $ 3.2 (a) During the year ended December 31, 2019, the Company recognized a gain of $72.7 million on disposition of a portfolio of precious metals royalties. See Note 6ii. xiii. Finance expense: Years ended December 31, 2019 2018 Accretion of reclamation and remediation obligations $ (31.0) $ (29.1) Interest expense, including accretion of debt and lease liabilities (a), (b) (76.9) (72.1) $ (107.9) $ (101.2) (a) During the years ended December 31, 2019 and 2018, $47.4 million and $41.5 million, respectively, of interest was capitalized to property, plant and equipment. See Note 7iv. (b) During the years ended December 31, 2019 and 2018, accretion of lease liabilities was $2.9 million and $nil, respectively. Total interest paid, including interest capitalized, during the year ended December 31, 2019 was $100.6 million (year ended December 31, 2018 - $96.1 million) See Note 12(v). xiv. Employee benefits expenses: The following employee benefits expenses are included in production cost of sales, general and administrative, and exploration and business development expenses: Years ended December 31, 2019 2018 Salaries, short-term incentives, and other benefits $ 680.8 $ 668.6 Share-based payments 27.0 21.3 Other 26.4 9.6 $ 734.2 $ 699.5 |
REVERSALS OF IMPAIRMENT CHARGES
REVERSALS OF IMPAIRMENT CHARGES | 12 Months Ended |
Dec. 31, 2019 | |
REVERSALS OF IMPAIRMENT CHARGES | |
REVERSALS OF IMPAIRMENT CHARGES | 8. REVERSALS OF IMPAIRMENT CHARGES Years ended December 31, 2019 2018 Property, plant and equipment $ 361.8 $ — $ 361.8 $ — At December 31, 2019, upon completion of the Company’s assessment of the carrying values of its CGUs, the Company recorded reversals of impairment charges of $361.8 million, related entirely to property, plant and equipment at Paracatu and Tasiast of $200.7 million and $161.1 million, respectively, and were mainly due to an increase in the Company’s long-term gold price estimates. For Paracatu, the reversal was limited to a full reversal of the remaining impairment charge recorded in 2017. For Tasiast, the reversal represents a partial reversal of the total impairment charges previously recorded. The tax impact on the impairment reversal at Paracatu was an expense of $68.2 million and was recorded within income tax expense. There was no tax impact on the impairment reversal at Tasiast. After giving effect to the impairment reversals, the carrying values of Paracatu and Tasiast were $1,461.0 million and $2,123.6 million, respectively, as at December 31, 2019. The significant estimates and assumptions used in the Company’s impairment assessments are disclosed in Note 5 to the financial statements. The Company performed a sensitivity analysis on all key assumptions and determined that no reasonably possible change in any of the key assumptions would cause the carrying value of any CGU with recorded goodwill to exceed its recoverable amount. |
INVESTMENTS IN JOINT VENTURES A
INVESTMENTS IN JOINT VENTURES AND ASSOCIATE | 12 Months Ended |
Dec. 31, 2019 | |
INVESTMENT IN JOINT VENTURE | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATE | 9. INVESTMENT IN JOINT VENTURE The Company’s Puren joint venture investment is accounted for under the equity method and had the following carrying values: December 31, December 31, 2019 2018 Investment in joint venture - Puren $ 18.4 $ 18.3 $ 18.4 $ 18.3 There are no publicly quoted market prices for Puren. The equity in earnings (losses) of joint ventures is as follows: Years ended December 31, 2019 2018 Puren (a) $ 0.1 $ 0.1 Bald Mountain Exploration Joint Venture (a), (b) — (0.4) $ 0.1 $ (0.3) (a) Represents Kinross’ share of the net earnings (losses) and other comprehensive income (loss). (b) On October 2, 2018, the Company acquired the remaining 50% interest in the exploration joint venture it did not already own. See Note 6v. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | 10. FAIR VALUE MEASUREMENT (a) Recurring fair value measurement: Carrying values for financial instruments carried at amortized cost, including cash and cash equivalents, restricted cash, short-term investments, accounts receivable, and accounts payable and accrued liabilities, approximate fair values due to their short-term maturities. Fair value estimates for derivative contracts are based on quoted market prices for comparable contracts and represent the amount the Company would have received from, or paid to, a counterparty to unwind the contract at the market rates in effect at the consolidated balance sheet date. The Company categorizes each of its fair value measurements in accordance with a fair value hierarchy. The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (for example, interest rate and yield curves observable at commonly quoted intervals, forward pricing curves used to value currency and commodity contracts and volatility measurements used to value option contracts), or inputs that are derived principally from or corroborated by observable market data or other means. Level 3 inputs are unobservable (supported by little or no market activity). The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. For financial instruments that are recognized at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing their classification (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. Assets (liabilities) measured at fair value on a recurring basis as at December 31, 2019 include: Aggregate Level 1 Level 2 Level 3 Fair Value Equity investments at FVOCI $ 126.2 $ — $ — $ 126.2 Derivative contracts: Foreign currency forward and collar contracts — 3.9 — 3.9 Energy swap contracts — 4.0 — 4.0 Total return swap contracts — (1.3) — (1.3) $ 126.2 $ 6.6 $ — $ 132.8 During the year ended December 31, 2019, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfers into or out of Level 3 fair value measurements. The valuation techniques that are used to measure fair value are as follows: Equity investments at FVOCI: Equity investments at FVOCI include shares in publicly traded companies listed on a stock exchange. The fair value of equity investments at FVOCI is determined based on a market approach reflecting the closing price of each particular security at the consolidated balance sheet date. The closing price is a quoted market price obtained from the exchange that is the principal active market for the particular security, and therefore equity investments at FVOCI are classified within Level 1 of the fair value hierarchy. Derivative contracts: The Company’s derivative contracts are valued using pricing models and the Company generally uses similar models to value similar instruments. Such pricing models require a variety of inputs, including contractual cash flows, quoted market prices, applicable yield curves and credit spreads. The fair value of derivative contracts is based on quoted market prices for comparable contracts and represents the amount the Company would have received from, or paid to, a counterparty to unwind the contract at the quoted market rates in effect at the consolidated balance sheet date and therefore derivative contracts are classified within Level 2 of the fair value hierarchy. The following table summarizes information about derivative contracts outstanding at December 31, 2019 and 2018: December 31, 2019 December 31, 2018 Asset / (Liability) Asset / (Liability) Fair Value AOCI Fair Value AOCI Currency contracts Foreign currency forward and collar contracts (a) (i) $ 3.9 $ 2.6 $ (21.8) $ (15.8) Commodity contracts Energy swap contracts (b) (ii) 4.0 3.2 (8.6) (7.5) Other contracts Total return swap contracts (iii) (1.3) — 3.2 — Total all contracts $ 6.6 $ 5.8 $ (27.2) $ (23.3) Unrealized fair value of derivative assets Current $ 7.2 $ 3.8 Non-current 4.5 0.8 $ 11.7 $ 4.6 Unrealized fair value of derivative liabilities Current $ (4.3) $ (22.2) Non-current (0.8) (9.6) $ (5.1) $ (31.8) Total net fair value $ 6.6 $ (27.2) (a) Of the total amount recorded in AOCI at December 31, 2019, $0.7 million will be reclassified to net earnings within the next 12 months as a result of settling the contracts. (b) Of the total amount recorded in AOCI at December 31, 2019, $2.5 million will be reclassified to net earnings within the next 12 months as a result of settling the contracts. (i) Foreign currency forward and collar contracts The following table provides a summary of foreign currency forward and collar contracts outstanding at December 31, 2019 and their respective maturities: Foreign currency 2020 2021 2022 Brazilian real zero cost collars (in millions of U.S. dollars) $ 116.0 $ 64.0 $ 13.2 Average put strike (Brazilian real) 3.76 4.11 4.20 Average call strike (Brazilian real) 4.23 4.71 4.78 Canadian dollar forward buy contracts (in millions of U.S. dollars) $ 31.2 $ 12.0 $ — Average rate (Canadian dollar) 1.32 1.33 — Russian rouble zero cost collars (in millions of U.S. dollars) $ 47.7 $ 25.2 $ — Average put strike (Russian rouble) 65.3 65.8 — Average call strike (Russian rouble) 77.6 84.2 — The following new foreign currency forward and collar contracts were entered into during the year ended December 31, 2019: · $85.2 million of Brazilian real zero cost collars, maturing from 2020 to 2022, with average put and call strikes of 4.08 and 4.62, respectively; · $28.8 million of Canadian dollar forward buy contracts, maturing from 2020 to 2021, at an average rate of 1.33; and · $59.4 million of Russian rouble zero cost collars, maturing from 2020 to 2021, with average put and call strikes of 65.5 and 80.3, respectively. At December 31, 2019, the unrealized gain or loss on foreign currency forward and collar contracts recorded in AOCI is as follows: · Brazilian real forward buy contracts – $nil (December 31, 2018 - $1.7 million loss); · Brazilian real zero cost collar contracts – unrealized loss of $0.1 million (December 31, 2018 - $7.5 million loss); · Canadian dollar forward buy contracts – unrealized gain of $0.5 million (December 31, 2018 - $3.5 million loss); and · Russian rouble zero cost collar contracts – unrealized gain of $2.2 million (December 31, 2018 - $3.3 million loss). (ii) Energy swap contracts The Company is exposed to changes in energy prices through its consumption of diesel and other fuels, and the price of electricity in some electricity supply contracts. The Company enters into energy swap contracts that protect against the risk of fuel price increases. Fuel is consumed in the operation of mobile equipment and electricity generation. The following table provides a summary of energy swap contracts outstanding at December 31, 2019 and their respective maturities: Energy 2020 2021 2022 WTI oil swap contracts (barrels) 946,800 609,000 74,100 Average price $ 54.43 $ 52.79 $ 50.21 During 2019, the following new energy swap contracts were entered into: · 865,500 barrels of WTI oil swap contracts at an average rate of $50.81 per barrel maturing from 2020 to 2022. At December 31, 2019, the unrealized gain or loss on energy swap contracts recorded in AOCI is as follows: · WTI oil swap contracts – unrealized gain of $3.2 million (December 31, 2018 - $7.5 million loss). (iii) Total return swap contracts The Company enters into total return swaps (“TRS”) as economic hedges of the Company’s DSUs and cash-settled RSUs. Under the terms of the TRS, a bank has the right to purchase Kinross shares in the marketplace as a hedge against the returns in the TRS. At December 31, 2019, 5,695,000 TRS units were outstanding. At December 31, 2019, 84.4% of the combined DSU and RSU exposures were economically hedged (December 31, 2018 - 89.5%). Hedge accounting is not applied for the DSU/RSU hedging program. (b) Fair value measurements related to non-financial assets: At December 31, 2019, the Company recorded reversals of impairment charges related to the property, plant and equipment at Paracatu and Tasiast due to changes in the estimates used to determine the recoverable amount of these CGUs since their last impairment losses were recognized. Certain assumptions used in the calculation of the recoverable amounts, calculated on a fair value less cost of disposal basis, are categorized as Level 3 in the fair value hierarchy. See Note 5ii(d). (c) Fair value of financial assets and liabilities not measured and recognized at fair value: Long-term debt is measured at amortized cost. The fair value of long-term debt is primarily measured using market determined variables, and therefore was classified within Level 2 of the fair value hierarchy. See Note 12. |
CAPITAL AND FINANCIAL RISK MANA
CAPITAL AND FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2019 | |
CAPITAL AND FINANCIAL RISK MANAGEMENT | |
CAPITAL AND FINANCIAL RISK MANAGEMENT | 11. CAPITAL AND FINANCIAL RISK MANAGEMENT The Company manages its capital to ensure that it will be able to continue to meet its financial and operational strategies and obligations, while maximizing the return to shareholders through the optimization of debt and equity financing. The Board of Directors has established a number of quantitative measures related to the management of capital. Management continuously monitors its capital position and periodically reports to the Board of Directors. The Company’s operations are sensitive to changes in commodity prices, foreign exchange and interest rates. The Company manages its exposure to changes in currency exchange rates and energy prices by periodically entering into derivative contracts in accordance with the formal risk management policy approved by the Company’s Board of Directors. The Company’s practice is to not hedge metal sales. However, in certain circumstances the Company may use derivative contracts to hedge against the risk of falling prices for a portion of its forecasted metal sales. The Company may also assume derivative contracts as part of a business acquisition or they may be required under financing arrangements. All of the Company’s hedges are cash flow hedges. The Company applies hedge accounting whenever hedging relationships exist and have been documented. i. Capital management The Company’s objectives when managing capital are to: · Ensure the Company has sufficient cash available to support the mining, exploration, and other areas of the business in any gold price environment; · Ensure the Company has the capital and capacity to support a long-term growth strategy; · Provide investors with a superior rate of return on their invested capital; · Ensure compliance with all bank covenant ratios; and · Minimize counterparty credit risk. Kinross adjusts its capital structure based on changes in forecasted economic conditions and based on its long-term strategic business plan. Kinross has the ability to adjust its capital structure by issuing new equity, drawing on existing credit facilities, issuing new debt, and by selling or acquiring assets. Kinross can also control how much capital is returned to shareholders through dividends and share buybacks. The Company is not subject to any externally imposed capital requirements. The Company’s quantitative capital management objectives are largely driven by the requirements under its debt agreements as well as a target total debt to total debt and common shareholders’ equity ratio as noted in the table below: December 31, December 31, 2019 2018 Long-term debt and credit facilities $ 1,837.4 $ 1,735.0 Current portion of long-term debt and credit facilities — — Total debt $ 1,837.4 $ 1,735.0 Common shareholders' equity $ 5,318.5 $ 4,506.7 Total debt / total debt and common shareholders' equity ratio 25.7 % 27.8 % Company target 0 – 30 % 0 – 30 % ii. Gold and silver price risk management In order to manage short-term metal price risk, the Company may enter into derivative contracts in relation to metal sales that it believes are highly likely to occur within a given quarter. No such contracts were outstanding at December 31, 2019 or December 31, 2018. iii. Currency risk management The Company is primarily exposed to currency fluctuations relative to the U.S. dollar on expenditures that are denominated in Canadian dollars, Brazilian reais, Chilean pesos, Russian roubles and Mauritanian ouguiya. This risk is reduced, from time to time, through the use of foreign currency hedging contracts to lock in the exchange rates on future non-U.S. denominated currency cash outflows. The Company has entered into hedging contracts to purchase Canadian dollars, Brazilian reais, and Russian roubles as part of this risk management strategy. The Company is also exposed to the impact of currency fluctuations on its monetary assets and liabilities. The Company may from time to time manage the exposure on the net monetary items. At December 31, 2019, with other variables unchanged, the following represents the effect of movements in foreign exchange rates on the Company's net working capital, on earnings before taxes from a 10% change in the exchange rate of the U.S. dollar against the Canadian dollar, Brazilian real, Chilean peso, Russian rouble, Mauritanian ouguiya, and other. 10% strengthening in 10% weakening in U.S. dollar U.S. dollar Foreign currency net Effect on earnings before Effect on earnings before working capital taxes, gain (loss) (a) taxes, gain (loss) (a) Canadian dollar $ (26.3) $ 2.4 $ (2.9) Brazilian real $ (91.3) $ 8.3 $ (10.1) Chilean peso $ (5.0) $ 0.5 $ (0.6) Russian rouble $ 33.4 $ (3.0) $ 3.7 Mauritanian ouguiya $ (68.1) $ 6.2 $ (7.6) Other (b) $ 7.0 $ (0.6) $ 0.8 (a) As described in Note 3(ii), the Company translates its monetary assets and liabilities into U.S. dollars at the rates of exchange at the consolidated balance sheet dates. Gains and losses on translation of foreign currencies are included in earnings. (b) Includes Euro, Ghanaian cedi, British pound, Australian dollar and South African rand. At December 31, 2019, with other variables unchanged, the following represents the effect of the Company’s foreign currency hedging contracts on OCI before taxes from a 10% change in the exchange rate of the U.S. dollar against the Canadian dollar, Brazilian real and Russian rouble. 10% strengthening in 10% weakening in U.S. dollar U.S. dollar Effect on OCI before Effect on OCI before taxes, gain (loss) (a) taxes, gain (loss) (a) Canadian dollar $ (3.9) $ 4.8 Brazilian real $ (10.7) $ 13.3 Russian rouble $ (3.2) $ 6.5 (a) Upon maturity of these contracts, the amounts in OCI before taxes will reverse against hedged items that the contracts relate to, which may be to earnings or property, plant and equipment. iv. Energy price risk The Company is exposed to changes in energy prices through its consumption of diesel and other fuels, and the price of electricity in some electricity supply contracts. The Company entered into energy swap contracts that partially protect against the risk of fuel price increases. Fuel is consumed in the operation of mobile equipment and electricity generation. At December 31, 2019, with other variables unchanged, the following represents the effect of the Company’s energy swap contracts on OCI before taxes from a 10% change in WTI oil prices. 10% increase in 10% decrease in price price Effect on OCI before Effect on OCI before taxes, gain (loss) (a) taxes, gain (loss) (a) WTI oil $ 9.0 $ (8.9) (a) Upon maturity of these contracts, the amounts in OCI before taxes will reverse against hedged items that the contracts relate to, which will be to earnings. v. Liquidity risk The Company manages liquidity risk by maintaining adequate cash and cash equivalent balances (December 31, 2019 - $575.1 million in aggregate), by utilizing its lines of credit and by monitoring developments in the capital markets. The Company continuously monitors and reviews both actual and forecasted cash flows. The contractual cash flow requirements for financial liabilities at December 31, 2019 are as follows: 2020 2021-2024 2025+ Total Within 1 year (b) 2 to 5 years More than 5 years Long-term debt (a) $ 2,610.3 $ 98.5 $ 1,402.1 $ 1,109.7 (a) Includes the full face value of the senior notes , drawdowns on the revolving credit facility, and estimated interest. (b) Represents interest on the senior notes and revolving credit facility, due within the next 12 months. vi. Credit risk management Credit risk relates to cash and cash equivalents, accounts receivable and derivative contracts and arises from the possibility that any counterparty to an instrument fails to perform. The Company generally transacts with highly-rated counterparties and a limit on contingent exposure has been established for counterparties based on their credit ratings. As at December 31, 2019, the Company’s maximum exposure to credit risk was the carrying value of cash and cash equivalents, accounts receivable and derivative assets. |
LONG-TERM DEBT AND CREDIT FACIL
LONG-TERM DEBT AND CREDIT FACILITIES | 12 Months Ended |
Dec. 31, 2019 | |
LONG-TERM DEBT AND CREDIT FACILITIES | |
LONG-TERM DEBT AND CREDIT FACILITIES | 12. LONG-TERM DEBT AND CREDIT FACILITIES December 31, 2019 December 31, 2018 Deferred Nominal Financing Carrying Fair Carrying Fair Interest Rates Amount Costs Amount (a) Value (b) Amount (a) Value (b) Senior notes (i) 4.50%-6.875% $ 1,747.0 $ (9.6) $ 1,737.4 $ 1,881.9 $ 1,735.0 $ 1,668.8 Revolving credit facility (ii) LIBOR plus 1.625% 100.0 — 100.0 100.0 — — Long-term debt and credit facility $ 1,847.0 $ (9.6) $ 1,837.4 $ 1,981.9 $ 1,735.0 $ 1,668.8 (a) Includes transaction costs on senior notes financings. (b) The fair value of senior notes is primarily determined using quoted market determined variables. See Note 10(c). Scheduled debt repayments 2025 and 2020 2021 2022 2023 2024 thereafter Total Senior notes $ — $ 500.0 $ — $ — $ 500.0 $ 750.0 $ 1,750.0 Revolving credit facility (a) — — — — 100.0 — 100.0 Total debt payable $ — $ 500.0 $ — $ — $ 600.0 $ 750.0 $ 1,850.0 (a) Subsequent to December 31, 2019, the Company repaid $100.0 million on the revolving credit facility. (i) Senior notes As at December 31, 2019 and 2018, the Company’s $1,750.0 million of senior notes consisted of $500.0 million principal amount of 5.125% notes due 2021, $500.0 million principal amount of 5.950% notes due 2024, $500.0 million principal amount of 4.50% notes due 2027 and $250.0 million principal amount of 6.875% notes due 2041. The senior notes referred to above (collectively, the “notes”) pay interest semi-annually. Except as noted below, the notes are redeemable by the Company, in whole or part, for cash at any time prior to maturity, at a redemption price equal to the greater of 100% of the principal amount or the sum of the present value of the remaining scheduled principal and interest payments on the notes discounted at the applicable treasury rate, as defined in the indentures, plus a premium of between 45 and 50 basis points, plus accrued interest, if any. Within three months of maturity of the notes due in 2021, 2024 and 2027, and within six months of maturity of the notes due in 2041, the Company can only redeem the notes in whole at 100% of the principal amount plus accrued interest, if any. In addition, the Company is required to make an offer to repurchase the notes prior to maturity upon certain fundamental changes at a repurchase price equal to 101% of the principal amount of the notes plus accrued and unpaid interest to the repurchase date, if any. (ii) Corporate revolving credit facility As at December 31, 2019, the Company had utilized $119.1 million (December 31, 2018 - $19.7 million) of its $1,500.0 million revolving credit facility, of which $19.1 million was used for letters of credit. In 2019, the Company drew $300.0 million on the revolving credit facility and repaid $200.0 million. Subsequent to December 31, 2019, the Company repaid $100.0 million on the revolving credit facility. On July 25, 2019, the Company amended its $1,500.0 million revolving credit facility to extend the maturity date by one year from August 10, 2023 to August 10, 2024. Loan interest on the revolving credit facility is variable, set at LIBOR plus an interest rate margin which is dependent on the Company’s credit rating. Based on the Company’s credit rating at December 31, 2019, interest charges and fees are as follows: Type of credit Revolving credit facility LIBOR plus 1.625 % Letters of credit 1.0833 - 1.625 % Standby fee applicable to unused availability 0.325 % The revolving credit facility’s credit agreement contains various covenants including limits on indebtedness, asset sales and liens. The Company is in compliance with its financial covenant in the credit agreement at December 31, 2019. (iii) Tasiast Loan On December 16, 2019, the Company completed a definitive loan agreement for up to $300.0 million for Tasiast. The non-recourse loan has a term of eight years, maturing in December 2027, a floating interest rate of LIBOR plus a weighted average margin of 4.38% and a standby fee applicable to unused availability of 1.60%, with semi-annual interest payments to be made in June and December, and first principal repayments due in 2022. (iv) Other The Company’s $300.0 million Letter of Credit guarantee facility with EDC matures on June 30, 2020. Letters of credit guaranteed under this facility are solely for reclamation liabilities at Fort Knox, Round Mountain, and Kettle River-Buckhorn. Fees related to letters of credit under this facility are 0.95% of the drawn amount. As at December 31, 2019, $227.8 million (December 31, 2018 - $227.4 million) was utilized under this facility. In addition, at December 31, 2019, the Company had $184.7 million (December 31, 2018 - $161.5 million) in letters of credit and surety bonds outstanding in respect of its operations in Brazil, Mauritania, Ghana and Chile. These have been issued pursuant to arrangements with certain international banks and incur fees of 0.70% of the drawn amount. As at December 31, 2019, $276.5 million (December 31, 2018 - $264.4 million) of surety bonds were outstanding with respect to Kinross’ operations in the United States. These surety bonds were issued pursuant to arrangements with international insurance companies and incur fees of 0.65% of the drawn amount. (v) Changes in liabilities arising from financing activities Long-term Lease Accrued interest debt liabilities (a) payable (b) Total Balance as at January 1, 2019 (a) $ 1,735.0 $ 42.9 $ 33.3 $ 1,811.2 Changes from financing cash flows Debt issued 300.0 — — 300.0 Debt repayments (200.0) — — (200.0) Interest paid — — (55.6) (55.6) Payment of lease liabilities — (14.3) — (14.3) 1,835.0 28.6 (22.3) 1,841.3 Other changes Interest expense and accretion $ — $ — $ 74.0 $ 74.0 Capitalized interest — — 47.4 47.4 Capitalized interest paid — — (45.0) (45.0) Additions of lease liabilities — 22.9 — 22.9 Accretion of lease liabilities — 2.9 — 2.9 Other cash changes — — (10.0) (10.0) Other non-cash changes 2.4 0.5 (10.8) (7.9) 2.4 26.3 55.6 84.3 Balance as at December 31, 2019 $ 1,837.4 $ 54.9 $ 33.3 $ 1,925.6 (a) Total lease liabilities of $42.9 million was recognized upon the initial application of IFRS 16 as of January 1, 2019. See Note 4. (b) Included in Accounts payable and accrued liabilities. Long-term Lease Accrued interest debt liabilities payable (a) Total Balance as at January 1, 2018 $ 1,732.6 $ — $ 33.8 $ 1,766.4 Changes from financing cash flows Debt issued 80.0 — — 80.0 Debt repayments (80.0) — — (80.0) Interest paid — — (57.9) (57.9) 1,732.6 — (24.1) 1,708.5 Other changes Interest expense and accretion $ — $ — $ 72.1 $ 72.1 Capitalized interest — — 41.5 41.5 Capitalized interest paid — — (38.2) (38.2) Other cash changes — — (9.9) (9.9) Other non-cash changes 2.4 — (8.1) (5.7) 2.4 — 57.4 59.8 Balance as at December 31, 2018 $ 1,735.0 $ — $ 33.3 $ 1,768.3 (a) Included in Accounts payable and accrued liabilities. |
PROVISIONS
PROVISIONS | 12 Months Ended |
Dec. 31, 2019 | |
PROVISIONS | |
PROVISIONS | 13. PROVISIONS Reclamation and remediation obligations (i) Other Total Balance at January 1, 2019 $ 854.1 $ 34.9 $ 889.0 Additions 55.7 7.2 62.9 Reductions (7.4) (11.7) (19.1) Reclamation spending (55.4) — (55.4) Accretion 31.0 — 31.0 Reclamation recovery (11.9) — (11.9) Balance at December 31, 2019 $ 866.1 $ 30.4 $ 896.5 Current portion 50.5 7.4 57.9 Non-current portion 815.6 23.0 838.6 $ 866.1 $ 30.4 $ 896.5 (i) Reclamation and remediation obligations The Company conducts its operations so as to protect the public health and the environment, and to comply with all applicable laws and regulations governing protection of the environment. Reclamation and remediation obligations arise throughout the life of each mine. The Company estimates future reclamation costs based on the level of current mining activity and estimates of costs required to fulfill the Company’s future obligations. The above table details the items that affect the reclamation and remediation obligations. Included in other operating expense for the year ended December 31, 2019 is an $11.9 million recovery (year ended December 31, 2018 - $8.0 million recovery) reflecting revised estimated fair values of costs that support the reclamation and remediation obligations for properties that have been closed or are nearing the end of their operating life. The majority of the expenditures are expected to occur between 2020 and 2044. The discount rates used in estimating the site restoration cost obligation were between 1.7% and 14.7% for the year ended December 31, 2019 (year ended December 31, 2018 - 2.5% and 12.3%), and the inflation rates used were between 2.2% and 4.0% for the year ended December 31, 2019 (year ended December 31, 2018 - 2.1% and 5.1%). Regulatory authorities in certain jurisdictions require that security be provided to cover the estimated reclamation and remediation obligations. As at December 31, 2019, letters of credit totaling $391.9 million (December 31, 2018 - $366.7 million) had been issued to various regulatory agencies to satisfy financial assurance requirements for this purpose. The letters of credit were issued against the Company’s Letter of Credit guarantee facility with EDC, the corporate revolving credit facility, and pursuant to arrangements with certain international banks. The Company is in compliance with all applicable requirements under these facilities. As at December 31, 2019, $275.7 million (December 31, 2018 - $264.4 million) of surety bonds were issued with respect to Kinross’ operations in the United States. The surety bonds were issued pursuant to arrangements with international insurance companies. |
COMMON SHARE CAPITAL
COMMON SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2019 | |
COMMON SHARE CAPITAL | |
COMMON SHARE CAPITAL | 14. COMMON SHARE CAPITAL The authorized share capital of the Company is comprised of an unlimited number of common shares without par value. A summary of common share transactions for the years ended December 31, 2019 and 2018 is as follows: Year ended Year ended December 31, 2019 December 31, 2018 Number of shares Amount Number of shares Amount (000’s) (000’s) Common shares Balance at January 1, 1,250,229 $ 14,913.4 1,247,004 $ 14,902.5 Issued under share option and restricted share plans 3,537 12.8 3,225 10.9 Balance at end of period 1,253,766 $ 14,926.2 1,250,229 $ 14,913.4 Total common share capital $ 14,926.2 $ 14,913.4 |
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS | 12 Months Ended |
Dec. 31, 2019 | |
SHARE-BASED PAYMENTS | |
SHARE-BASED PAYMENTS | 15. SHARE-BASED PAYMENTS Share-based compensation recorded during the years ended December 31, 2019 and 2018 was as follows: Years ended December 31, 2019 2018 Share option plan expense (i) $ 2.4 $ 2.7 Restricted share unit plan expense, including restricted performance shares (ii) 24.6 18.6 Deferred share units expense (iii) 1.1 1.1 Employer portion of employee share purchase plan (iv) 2.1 2.1 Total share-based compensation expense $ 30.2 $ 24.5 (i) Share option plan The Company has a share option plan for officers, employees, and contractors enabling them to purchase common shares. Under the share option plan, the aggregate number of shares reserved for issuance may not exceed 31.2 million common shares. Additionally, the aggregate number of Common Shares reserved for issuance under the share option plan to insiders, at any one time upon the exercise of Options and pursuant to all other compensation arrangements of the Company shall not exceed 10% of the total number of Common Shares then outstanding. Each option granted under the plan on or after February 16, 2011 is for a maximum term of seven years. One-third of the options granted are exercisable each year commencing one year after the date of grant. The exercise price is determined by the Company’s Board of Directors at the time the option is granted, and may not be less than the closing market price of the common shares on the last trading day prior to the grant date of the option. The stock options outstanding at December 31, 2019 expire at various dates through 2026. The number of common shares available for the granting of options as at December 31, 2019 was 12.5 million. The following table summarizes the status of the share option plan and changes during the years ended December 31, 2019 and 2018: 2019 2018 Weighted average Weighted average Number of options exercise price Number of options exercise price (000’s) (CDN$/option) (000’s) (CDN$/option) Balance at January 1 12,344 $ 5.77 12,173 $ 6.52 Granted 2,042 4.59 1,950 4.95 Exercised (1,577) 4.41 (301) 3.65 Forfeited (741) 4.42 (238) 4.87 Expired (1,898) 9.42 (1,240) 12.58 Outstanding at end of period 10,170 $ 5.16 12,344 $ 5.77 Exercisable at end of period 6,459 $ 5.38 8,861 $ 6.13 For the year ended December 31, 2019, the weighted average share price at the date of exercise was CDN$6.20. The following table summarizes information about the stock options outstanding and exercisable at December 31, 2019: Options outstanding Options exercisable Weighted Weighted Weighted average Weighted average Number of average remaining Number of average remaining options exercise price contractual life options exercise price contractual life Exercise price range in CDN$: (000’s) (CDN$) (years) (000’s) (CDN$) (years) $ 3.73 $ 4.50 2,313 $ 3.90 2,313 $ 3.90 4.51 5.50 5,070 4.85 1,359 5.03 5.51 6.50 1,573 5.82 1,573 5.82 6.51 8.03 1,214 8.02 1,214 8.03 10,170 $ 5.16 6,459 $ 5.38 The following weighted average assumptions were used in computing the fair value of stock options using the Black-Scholes option pricing model granted during the years ended December 31, 2019 and 2018: 2019 2018 Weighted average share price (CDN$) $ 4.59 $ 4.95 Expected dividend yield 0.0 % 0.0 % Expected volatility 44.8 % 47.5 % Risk-free interest rate 1.8 % 2.1 % Expected option life (in years) 4.5 4.5 Weighted average fair value per stock option granted (CDN$) $ 1.79 $ 2.05 The expected volatility used in the Black-Scholes option pricing model is based primarily on the historical volatility of the Company’s shares. (ii) Restricted share unit plan The Company has a Restricted Share Plan whereby RSUs and RPSUs may be granted to employees, officers and contractors of the Company. Under the Restricted Share Plan, the aggregate number of shares reserved for issuance may not exceed 50 million common shares. The number of common shares available for the granting of restricted shares under this plan as at December 31, 2019 was 22.7 million. (a) Restricted share units RSUs are generally exercisable into one common share entitling the holder to acquire the common share for no additional consideration. RSUs vest over a three year period. The following table summarizes information about the RSUs and related changes during the years ended December 31, 2019 and 2018: 2019 2018 Weighted average Weighted average Number of units fair value Number of units fair value (000’s) (CDN$/unit) (000’s) (CDN$/unit) Balance at January 1 7,626 $ 4.88 8,277 $ 4.63 Granted 5,740 4.56 4,258 4.85 Redeemed (3,888) 4.86 (4,247) 4.37 Forfeited (966) 4.81 (662) 4.86 Outstanding at end of period 8,512 $ 4.68 7,626 $ 4.88 As at December 31, 2019, the Company had recognized a liability of $13.9 million (December 31, 2018 - $8.7 million) in respect of its cash-settled RSUs. (b) Restricted performance share units The RPSUs are subject to certain vesting requirements and vest at the end of three years. The vesting requirements are based on certain performance criteria over the vesting period established by the Company. The following table summarizes information about the RPSUs and related changes during the years ended December 31, 2019 and 2018: 2019 2018 Weighted average Weighted average Number of units fair value Number of units fair value (000’s) (CDN$/unit) (000’s) (CDN$/unit) Balance at January 1 4,990 $ 5.14 4,886 $ 4.52 Granted 2,263 4.54 2,807 4.77 Redeemed (1,702) 4.45 (2,523) 3.56 Forfeited (614) 4.71 (180) 4.75 Outstanding at end of period 4,937 $ 5.16 4,990 $ 5.14 (iii) Deferred share unit plan The Company has a DSU plan for its outside directors which provides that each outside director receives, on the last date in each quarter a number of DSUs having a value equal to a minimum of 50% of the compensation of the outside director for the current quarter. Each outside director can elect to receive a greater percentage of their compensation in DSUs. The number of DSUs granted to an outside director is based on the closing price of the Company's common shares on the Toronto Stock Exchange on the business day immediately preceding the DSU issue date. At such time as an outside director ceases to be a director, the Company will make a cash payment on the outstanding DSUs to the outside director in accordance with the redemption election made by the departing director or in the absence of an election to defer redemption, in accordance with the default redemption provisions provided in the Deferred Share Unit Plan. The number of DSUs granted by the Company and the weighted average fair value per unit issued for the years ended December 31, 2019 and 2018 are as follows: Years ended December 31, 2019 2018 DSUs granted (000's) 269 312 Weighted average grant-date fair value (CDN$/ unit) $ 5.39 $ 4.39 There were 1,645,972 DSUs outstanding, for which the Company had recognized a liability of $7.8 million, as at December 31, 2019 (December 31, 2018 - $5.5 million). (iv) Employee share purchase plan The Company has an employee SPP whereby certain employees of the Company have the opportunity to contribute up to a maximum of 10% of their annual base salary to purchase common shares. Since 2004, the Company has made contributions equal to 50% of the employees’ contributions. The compensation expense related to the employee SPP for the year ended December 31, 2019 was $2.1 million (year ended December 31, 2018 - $2.1 million). |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS (LOSS) PER SHARE | |
EARNINGS (LOSS) PER SHARE | 16. EARNINGS (LOSS) PER SHARE Basic and diluted net earnings (loss) attributable to common shareholders of Kinross for the year ended December 31, 2019 was $718.6 million (year ended December 31, 2018 - $(23.6) million). Earnings (loss) per share has been calculated using the weighted average number of common shares and common share equivalents issued and outstanding during the period. Stock options are reflected in diluted earnings per share by application of the treasury method. The following table details the weighted average number of outstanding common shares for the purpose of computing basic and diluted loss per common share for the following periods: Years ended December 31, (Number of common shares in thousands) 2019 2018 Basic weighted average shares outstanding: 1,252,316 1,249,495 Weighted average shares dilution adjustments: Stock options 1,679 — Restricted shares 3,181 — Restricted performance shares 5,168 — Diluted weighted average shares outstanding 1,262,344 1,249,495 Weighted average shares dilution adjustments - exclusions: (a) Stock options (b) 3,870 8,819 Restricted shares — 2,777 Restricted performance shares — 4,708 (a) These adjustments were excluded, as they are anti-dilutive. (b) Anti-dilutive stock options were determined using the Company’s average share price for the year. For the years ended December 31, 2019 and 2018, the average share price used was $3.97 and $3.44, respectively. |
INCOME TAX EXPENSE
INCOME TAX EXPENSE | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAX EXPENSE | |
INCOME TAX EXPENSE | 17. INCOME TAX EXPENSE The following table shows the components of the current and deferred tax expense: Years ended December 31, 2019 2018 Current tax expense Current period $ 206.6 $ 137.8 Adjustment for prior periods (1.0) (7.9) Deferred tax expense Origination and reversal of temporary differences 223.0 55.8 Impact of changes in tax rate (1.6) (0.1) Change in unrecognized deductible temporary differences (156.3) (35.6) Recognition of previously unrecognized tax losses (24.0) (11.2) Total tax expense $ 246.7 $ 138.8 In 2017 the Company recognized a net income tax benefit of $93.4 million due to the enactment of U.S. Tax Reform legislation passed on December 22, 2017. The 2017 net benefit included a benefit of $124.4 million in respect of the collectability of the Alternative Minimum Tax (“AMT”) credit, which was partially offset by the write-down of the net deferred tax assets to reflect the reduction in the U.S. corporate tax rate from 35% to 21% beginning January 1, 2018. Guidance on the implementation and application of the U.S. Tax Reform legislation was released in 2018 and 2019. The Internal Revenue Service released guidance that the AMT refunds would no longer be subject to sequestration for taxation years commencing after December 31, 2017. As a result, the Company recognized an additional $8.7 million income tax benefit in 2018. In 2019 the State of Alaska confirmed administratively that they would refund AMT paid for State income tax purposes, consistent with the U.S. Federal Tax Reform. As a result, the Company recognized an additional income tax benefit of $4.6 million in 2019. Further guidance on the implementation and application of the U.S. Tax Reform legislation will be forthcoming in regulations to be issued by the Department of the Treasury, legislation or guidance for the states in which the Company operates, and directions from the Office of Management and Budget. Such legislation, regulations, directions, and additional guidance may require changes to the estimated net benefit recorded and the impact of such changes will be accounted for in the period in which the legislation, regulations, directions, and additional guidance are enacted or released by the relevant authorities. The reconciliation of the combined Canadian federal and provincial statutory income tax rate to the effective tax rate is as follows: 2019 2018 Combined statutory income tax rate 26.5 % 26.5 % Increase (decrease) resulting from: Mining taxes 1.2 % 8.0 % Percentage of depletion (1.4) % (3.4) % Difference in foreign tax rates and foreign exchange on deferred income taxes within income tax expense 4.5 % 42.1 % Change in unrecognized deferred tax assets (4.1) % 59.2 % Over provided in prior periods (0.4) % (34.4) % Income not subject to tax (0.7) % (17.1) % Effect of non-deductible (non-taxable) impairment/(reversals) (4.2) % 0.2 % Accounting expenses disallowed for tax 2.3 % 17.8 % Taxes on repatriation of foreign earnings 0.5 % 12.4 % AMT credit receivable due to US Tax Reform (0.5) % (7.8) % Other 1.9 % 19.1 % Effective tax rate 25.6 % 122.6 % i. Deferred income tax The following table summarizes the components of deferred income tax: December 31, December 31, 2019 2018 Deferred tax assets Accrued expenses and other $ 29.2 $ 39.5 Property, plant and equipment 26.3 25.5 Reclamation and remediation obligations 88.4 69.5 Inventory capitalization 11.5 4.3 Non-capital loss 34.7 19.3 190.1 158.1 Deferred tax liabilities Accrued expenses and other 2.7 2.4 Reclamation and remediation obligations 2.8 — Property, plant and equipment 423.4 340.2 Inventory capitalization 30.5 35.7 Deferred tax liabilities - net $ 269.3 $ 220.2 For balance sheet disclosure purposes, deferred tax assets and liabilities have been offset where they relate to income taxes levied by the same taxation authority and the Company has the legal right and intent to offset. Movement in net deferred tax liabilities: December 31, December 31, 2019 2018 Balance at the beginning of the period $ 220.2 $ 222.3 Recognized in profit/loss 41.1 8.9 Recognized in OCI 8.0 (11.1) Other — 0.1 Balance at the end of the period $ 269.3 $ 220.2 ii. Unrecognized deferred tax assets and liabilities The aggregate amount of taxable temporary differences associated with investments in subsidiaries, for which deferred tax liabilities have not been recognized, as at December 31, 2019 is $7.3 billion (December 31, 2018 - $6.7 billion). Deferred tax assets have not been recognized in respect of the following items: December 31, December 31, 2019 2018 Deductible temporary differences $ 656.5 $ 746.4 Tax losses $ 441.3 $ 551.2 The tax losses not recognized expire as per the amount and years noted below. The deductible temporary differences do not expire under current tax legislation. Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the Company can utilize the benefits therefrom. iii. Non-capital losses (not recognized) The following table summarizes the Company’s non-capital losses that can be applied against future taxable profit: Country Type Amount Expiry Date Canada Net operating losses $ 946.1 2027 - 2039 United States (a) Net operating losses 54.8 2020 - 2033 Chile Net operating losses 323.0 No expiry Brazil Net operating losses 6.3 No expiry Mauritania Net operating losses 219.7 2021 - 2023 Barbados Net operating losses 677.3 2020 - 2025 Luxembourg Net operating losses 74.4 Various Other Net operating losses 56.7 Various (a) Utilization of the United States loss carry forwards will be limited in any year as a result of the previous changes in ownership. |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
SEGMENTED INFORMATION | |
SEGMENTED INFORMATION | 18. SEGMENTED INFORMATION The Company operates primarily in the gold mining industry and its major product is gold. Its activities include gold production, acquisition, exploration and development of gold properties. The Company’s primary mining operations are in the United States, the Russian Federation, Brazil, Chile, Ghana and Mauritania. The reportable segments are those operations whose operating results are reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance provided those operations pass certain quantitative thresholds. Operations whose revenues, earnings or losses or assets exceed 10% of the total consolidated revenue, earnings or losses or assets are reportable segments. In order to determine reportable operating segments, management reviews various factors, including geographical location and managerial structure. It was determined by management that a reportable operating segment generally consists of an individual mining property managed by a single general manager and management team. The Kupol segment includes the Kupol and Dvoinoye mines. These two mines have been aggregated into one reportable segment as they have integrated cost structures, due to the processing of Dvoinoye ore at the Kupol mill, and other shared infrastructure such as the purchasing function. The Corporate and other segment includes corporate, shutdown and other non-operating assets (including Kettle River-Buckhorn, La Coipa and Lobo-Marte) and non-mining and other operations. These have been aggregated into one reportable segment as they do not generate revenues. Finance income, finance expense, other income - net, and equity in earnings (losses) of joint ventures are managed on a consolidated basis and are not allocated to operating segments. i. Operating segments The following tables set forth operating results by reportable segment for the following years: Non-operating Operating segments segments (a) Round Bald Corporate and Year ended December 31, 2019: Fort Knox Mountain Mountain Paracatu Maricunga Kupol Tasiast Chirano other (b) Total Revenue Metal sales $ 279.6 502.2 249.2 856.3 61.2 734.4 532.8 281.6 — $ 3,497.3 Cost of sales Production cost of sales 213.7 250.6 136.6 412.3 31.5 314.1 230.4 189.7 — 1,778.9 Depreciation, depletion and amortization 90.3 39.8 79.5 163.4 1.7 125.1 130.2 92.6 8.7 731.3 Reversals of impairment charges — — — (200.7) — — (161.1) — — (361.8) Total cost of sales 304.0 290.4 216.1 375.0 33.2 439.2 199.5 282.3 8.7 2,148.4 Gross profit (loss) $ (24.4) 211.8 33.1 481.3 28.0 295.2 333.3 (0.7) (8.7) $ 1,348.9 Other operating expense (income) 25.1 (0.3) 7.8 (10.9) 17.0 (8.9) 46.4 (0.9) 33.2 108.5 Exploration and business development 3.4 4.8 12.6 — 0.1 23.0 1.8 8.0 59.8 113.5 General and administrative — — — — — — — — 135.8 135.8 Operating earnings (loss) $ (52.9) 207.3 12.7 492.2 10.9 281.1 285.1 (7.8) (237.5) $ 991.1 Other income - net 72.6 Equity in earnings of joint ventures 0.1 Finance income 7.9 Finance expense (107.9) Earnings before tax $ 963.8 Non-operating Operating segments segments (a) Round Bald Corporate and Year ended December 31, 2018: Fort Knox Mountain Mountain Paracatu Maricunga Kupol Tasiast Chirano other (b) Total Revenue Metal sales $ 325.5 483.9 403.9 663.1 113.6 627.7 307.8 286.0 1.1 $ 3,212.6 Cost of sales Production cost of sales 277.6 174.1 430.5 65.7 288.2 237.3 172.7 — 1,860.5 Depreciation, depletion and amortization 109.7 51.0 99.7 148.9 4.0 133.5 95.5 123.8 6.3 772.4 Total cost of sales 324.1 328.6 273.8 579.4 69.7 421.7 332.8 296.5 6.3 2,632.9 Gross profit (loss) $ 155.3 130.1 83.7 43.9 206.0 (25.0) (10.5) (5.2) $ 579.7 Other operating expense (income) 38.2 — 7.9 13.8 (1.3) (0.4) 52.4 (10.3) 36.7 137.0 Exploration and business development 4.7 1.2 11.5 — 0.1 19.2 8.5 6.0 58.0 109.2 General and administrative — — — — — — — — 133.0 133.0 Operating earnings (loss) $ (41.5) 154.1 110.7 69.9 45.1 187.2 (85.9) (6.2) (232.9) $ 200.5 Other income - net 3.2 Equity in losses of joint ventures (0.3) Finance income 11.0 Finance expense (101.2) Earnings before tax $ 113.2 Non-operating Operating segments segments (a) Round Bald Corporate and Fort Knox Mountain Mountain Paracatu Maricunga Kupol Tasiast Chirano other (b) Total Property, plant and equipment at: December 31, 2019 $ 421.1 653.7 685.1 1,748.1 40.6 332.8 1,924.8 152.9 380.9 $ 6,340.0 Total assets at: December 31, 2019 $ 633.2 846.8 862.5 2,024.0 58.5 1,053.4 2,312.5 255.0 1,030.1 $ 9,076.0 Capital expenditures for year ended December 31, 2019 (c) $ 149.3 241.5 249.3 113.5 — 39.7 370.5 16.4 27.1 $ 1,207.3 Non-operating Operating segments segments (a) Round Bald Corporate and Fort Knox Mountain Mountain Paracatu Maricunga Kupol Tasiast Chirano other (b) Total Property, plant and equipment at: December 31, 2018 $ 363.3 433.9 513.5 1,585.8 39.5 418.4 1,591.6 232.2 340.9 $ 5,519.1 Total assets at: December 31, 2018 $ 590.1 583.9 686.1 1,832.8 126.6 1,054.9 1,940.6 334.0 914.8 $ 8,063.8 Capital expenditures for year ended December 31, 2018 (c) $ 95.1 196.5 161.1 96.0 — 63.6 454.7 25.5 5.8 $ 1,098.3 (a) Non-operating segments include development properties. (b) Corporate and other includes corporate, shutdown and other non-operating assets (including Kettle River-Buckhorn, La Coipa and Lobo-Marte). (c) Segment capital expenditures are presented on an accrual basis. Additions to property, plant and equipment in the consolidated statements of cash flows are presented on a cash basis. ii. Geographic segments The following table shows metal sales and property, plant and equipment by geographic region: Metal sales Property, plant and equipment Years ended December 31, As at December 31, 2019 2018 2019 2018 Geographic information (a) United States $ 1,031.0 $ 1,214.4 $ 1,765.0 $ 1,315.6 Russian Federation 734.4 627.7 337.4 423.9 Brazil 856.3 663.1 1,749.3 1,585.5 Chile 61.2 113.6 394.1 358.2 Mauritania 532.8 307.8 1,932.4 1,594.8 Ghana 281.6 286.0 161.8 241.1 Total $ 3,497.3 $ 3,212.6 $ 6,340.0 $ 5,519.1 (a) Geographic location is determined based on location of the mining assets. iii. Significant customers The following table represents sales to individual customers exceeding 10% of annual metal sales for the following periods: Round Bald Corporate Year ended December 31, 2019: Fort Knox Mountain Mountain Paracatu Maricunga Kupol Tasiast Chirano and other Total Customer 1 $ 11.3 56.3 17.0 59.4 0.7 145.4 175.5 51.7 — 517.3 2 31.5 49.0 40.4 76.8 8.0 55.8 78.5 57.8 — 397.8 3 24.2 14.5 16.7 181.1 4.1 — 66.6 47.8 — 355.0 $ 1,270.1 % of total metal sales 36.3 % Round Bald Corporate Year ended December 31, 2018: Fort Knox Mountain Mountain Paracatu Maricunga Kupol Tasiast Chirano and other Total Customer 1 $ 38.4 96.2 70.4 46.2 18.1 — 119.4 116.4 — 505.1 2 — — — — — 376.3 — — — 376.3 3 56.1 38.8 19.8 75.3 38.7 — 75.5 56.6 — 360.8 4 17.5 5.6 3.6 186.4 5.5 — 62.0 71.3 — 351.9 $ 1,594.1 % of total metal sales 49.6 % The Company is not economically dependent on a limited number of customers for the sale of its product because gold can be sold through numerous commodity market traders worldwide. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 19. COMMITMENTS AND CONTINGENCIES i. Commitments Purchase commitments At December 31, 2019, the Company had future purchase commitments of approximately $1,104.3 million (December 31, 2018 - $737.3 million), of which $186.6 million relates to commitments for capital expenditures (December 31, 2018 - $101.9 million). ii. Contingencies General Estimated losses from contingencies are accrued by a charge to earnings when information available prior to the issuance of the financial statements indicates that it is likely that a future event will confirm that an asset has been impaired or a liability incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Other legal matters The Company is from time to time involved in legal proceedings, arising in the ordinary course of its business. Typically, the amount of ultimate liability with respect to these actions will not, in the opinion of management, materially affect Kinross’ financial position, results of operations or cash flows. Maricunga regulatory proceedings In May 2015, the Chile environmental enforcement authority (the “SMA”) commenced an administrative proceeding against Compania Minera Maricunga (“CMM”) alleging that pumping of groundwater to support the Maricunga operation had impacted area wetlands and, on March 18, 2016, issued a resolution alleging that CMM’s pumping was impacting the “Valle Ancho” wetland. Beginning in May 2016, the SMA issued a series of resolutions ordering CMM to temporarily curtail pumping from its wells. In response, CMM suspended mining and crushing activities and reduced water consumption to minimal levels. CMM contested these resolutions, but its efforts were unsuccessful and, except for a short period of time in July 2016, CMM’s operations have remained suspended. On June 24, 2016, the SMA amended its initial sanction (the “Amended Sanction”) and effectively required CMM to cease operations and close the mine, with water use from its wells curtailed to minimal levels. On July 9, 2016, CMM appealed the sanctions and, on August 30, 2016, submitted a request to the Environmental Tribunal that it issue an injunction suspending the effectiveness of the Amended Sanction pending a final decision on the merits of CMM’s appeal. On September 16, 2016, the Environmental Tribunal rejected CMM’s injunction request and on August 7, 2017, upheld the SMA’s Amended Sanction and curtailment orders on procedural grounds. On October 9, 2018, the Supreme Court affirmed the Environmental Tribunal’s ruling on procedural grounds and dismissed CMM’s appeal. On June 2, 2016, CMM was served with two separate lawsuits filed by the Chilean State Defense Counsel (“CDE”). Both lawsuits, filed with the Environmental Tribunal, alleged that pumping from the Maricunga groundwater wells caused environmental damage to area wetlands. One action relates to the “Pantanillo” wetland and the other action relates to the Valle Ancho wetland (described above). Hearings on the CDE lawsuits took place in 2016 and 2017, and on November 23, 2018, the Tribunal ruled in favor of CMM in the Pantanillo case and against CMM in the Valle Ancho case. In the Valle Ancho case, the Tribunal is requiring CMM to, among other things, submit a restoration plan to the SMA for approval. CMM has appealed the Valle Ancho ruling to the Supreme Court. The CDE has appealed to the Supreme Court in both cases and is asserting in the Valle Ancho matter that the Environmental Tribunal erred by not ordering a complete shutdown of Maricunga’s groundwater wells. The Supreme Court has the discretion to decide whether it will hear any of the appeals and has determined that it will hear the CDE’s appeal in the Pantanillo case. The Supreme Court has not yet determined whether it will hear the appeals in the Valle Ancho case. Prior to the November 23, 2018 rulings, CMM and the CDE were pursuing potential settlement. CMM expects to continue pursuing settlement discussions with the relevant government agencies. Sunnyside litigation The Sunnyside Mine is an inactive mine situated in the so-called Bonita Peak Mining District (“District”) near Silverton, Colorado. A subsidiary of Kinross, Sunnyside Gold Corporation ("SGC"), was involved in operations at the mine from 1985 through 1991 and subsequently conducted various reclamation and closure activities at the mine and in the surrounding area. On August 5, 2015, while working in another mine in the District known as the Gold King, the Environmental Protection Agency (the “EPA”) caused a release of approximately three million gallons of contaminated water into a tributary of the Animas River. In the third quarter of 2016, the EPA listed the District, including areas impacted by SGC’s operations and closure activities, on the National Priorities List pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”). SGC challenged portions of the CERCLA listing in the United States Court of Appeals for District of Columbia Circuit, but SGC’s petition for review was denied, as was its subsequent petition for rehearing. The EPA has notified SGC that SGC is a potentially responsible party under CERCLA and may be jointly and severally liable for cleanup of the District or cleanup costs incurred by the EPA in the District. The EPA may in the future provide similar notification to Kinross, as the EPA contends that Kinross has liability in the District under CERCLA and other statutes. In the second quarter of 2018, the EPA issued to SGC a modified Unilateral Administrative Order for Remedial Investigation (“the Order”). In the second quarter of 2019, pursuant to the original Order, the EPA issued to SGC a Modified Statement of Work, Work Plan and Field Sampling Plan (together with the Order, the “Modified Order”). The Modified Order significantly altered and expanded upon the work set out under the original Order. In the third quarter of 2019, after consulting with external legal counsel, SGC provided notice to the EPA that the Modified Order is legally indefensible, does not address any imminent hazard and SGC does not intend to comply with the Modified Order. On July 26, 2019, the EPA acknowledged receipt of SGC’s notice of its intention not to comply with the Modified Order. The EPA indicated that it would undertake to complete the work ordered under the Modified Order, and has subsequently completed some of such work. While SGC believes that it has good cause not to comply with the Modified Order, failure to comply with the Modified Order may subject SGC to significant penalties, damages and/or potential reimbursement of the cost of remediation work undertaken by the EPA. In the second quarter of 2016, the State of New Mexico filed a complaint naming the EPA, SGC, Kinross and others alleging violations of CERCLA, the Resource Conservation and Recovery Act (“RCRA”), and the Clean Water Act (“CWA”) and claiming negligence, gross negligence, public nuisance and trespass. New Mexico subsequently dropped the RCRA claim. The New Mexico complaint seeks cost recovery, damages, injunctive relief, and attorney’s fees. In the third quarter of 2016, the Navajo Nation initiated litigation against the EPA, SGC and Kinross, alleging entitlement to cost recovery under CERCLA for past and future costs incurred, negligence, gross negligence, trespass, and public and private nuisance, and seeking reimbursement of past and future costs, compensatory, consequential and punitive damages, injunctive relief and attorneys’ fees. In the third quarter of 2017, the State of Utah filed a complaint, which has been amended to name the EPA, SGC, Kinross and others, alleging negligence, gross negligence, public nuisance, trespass, and violation of the Utah Water Quality Act and the Utah Solid and Hazardous Waste Act. The Utah complaint seeks cost recovery, compensatory, consequential and punitive damages, penalties, disgorgement of profits, declaratory, injunctive and other relief under CERCLA, attorney’s fees, and costs. In the third quarter of 2018, numerous members of the Navajo Nation initiated litigation against the EPA, SGC and Kinross, alleging negligence, gross negligence and injury, including great spiritual and emotional distress. The complaint of the Navajo members seeks compensatory and consequential damages, interest, punitive damages, attorneys’ fees and expenses. The New Mexico, Navajo Nation, Utah and Navajo member cases have been centralized for coordinated or consolidated pretrial proceedings in the United States District Court for the District of New Mexico. In the third quarter of 2019 (i) the EPA filed a cross claim against SGC and Kinross seeking contribution, including contribution under CERCLA, for any damages awarded to New Mexico, the Navajo Nation, or Utah as well as cost-recovery for the EPA’s response costs and remedial expenses incurred by the EPA in the District pursuant to CERCLA or other laws; (ii) Environmental Restoration, LLC, an EPA contractor, filed a cross claim against SGC seeking contribution under CERCLA and attorneys’ fees and expenses; and (iii) SGC filed a cross claim against the United States and certain contractors of the United States seeking contribution and equitable indemnity and making a due process claim against the United States. It is expected that additional claims will be made against SGC and Kinross in the course of the centralized proceeding. Income taxes The Company operates in numerous countries around the world and accordingly is subject to, and pays taxes under the various regimes in countries in which it operates. These tax regimes are determined under general corporate tax laws of the country. The Company has historically filed, and continues to file, all required tax returns and to pay the taxes reasonably determined to be due. The tax rules and regulations in many countries are complex and subject to interpretation. Changes in tax law or changes in the way that tax law is interpreted may also impact the Company’s effective tax rate as well as its business and operations. Kinross’ tax records, transactions and filing positions may be subject to examination by the tax authorities in the countries in which the Company has operations. The tax authorities may review the Company’s transactions in respect of the year, or multiple years, which they have chosen for examination. The tax authorities may interpret the tax implications of a transaction in form or in fact, differently from the interpretation reached by the Company. In circumstances where the Company and the tax authority cannot reach a consensus on the tax impact, there are processes and procedures which both parties may undertake in order to reach a resolution, which may span many years in the future. Uncertainty in the interpretation and application of applicable tax laws, regulations or the relevant sections of Mining Conventions by the tax authorities, or the failure of relevant Governments or tax authorities to honour tax laws, regulations or the relevant sections of Mining Conventions could adversely affect Kinross. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 20. RELATED PARTY TRANSACTIONS There were no material related party transactions in 2019 and 2018 other than compensation of key management personnel. The Company received no dividends from Puren during the years ended December 31, 2019 and 2018. Key management personnel Compensation of key management personnel of the Company is as follows: Years ended December 31, 2019 2018 Cash compensation - Salaries, short-term incentives, and other benefits $ 7.3 $ 8.6 Long-term incentives, including share-based payments 8.5 9.3 Termination and post-retirement benefits 10.2 — Total compensation paid to key management personnel $ 26.0 $ 17.9 Key management personnel are defined as the Senior Leadership Team and members of the Board of Directors. |
CONSOLIDATING FINANCIAL STATEME
CONSOLIDATING FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2019 | |
CONSOLIDATING FINANCIAL STATEMENTS | |
CONSOLIDATING FINANCIAL STATEMENTS | 21. CONSOLIDATING FINANCIAL STATEMENTS The obligations of the Company under the senior notes are guaranteed by the following 100% owned subsidiaries of the Company (the “guarantor subsidiaries”): Round Mountain Gold Corporation, Kinross Brasil Mineração S.A., Fairbanks Gold Mining, Inc., Melba Creek Mining, Inc., KG Mining (Round Mountain) Inc., KG Mining (Bald Mountain) Inc., Red Back Mining B.V., Red Back Mining (Ghana) Limited, White Ice Ventures Limited, KG Far East (Luxembourg) Sarl. All guarantees by the guarantor subsidiaries are joint and several, and full and unconditional; subject to certain customary release provisions contained in the indenture governing the senior notes. The following tables contain separate financial information related to the guarantor subsidiaries as set out in the consolidating balance sheets as at December 31, 2019 and 2018 and the consolidating statements of operations, statements of comprehensive income (loss) and statements of cash flows for the years ended December 31, 2019 and 2018. For purposes of this information, the financial statements of Kinross Gold Corporation and of the guarantor subsidiaries reflect investments in subsidiary companies on an equity accounting basis. Consolidating balance sheet as at December 31, 2019 Guarantors Kinross Gold Guarantor Guarantor Total Non- Corp. Subsidiaries Adjustments Guarantors guarantors Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 124.9 $ 119.5 $ — $ 244.4 $ 330.7 $ — $ 575.1 Restricted cash — 6.6 — 6.6 8.6 — 15.2 Accounts receivable and other assets 6.7 57.1 — 63.8 66.4 — 130.2 Intercompany receivables 601.5 1,231.0 (317.0) 1,515.5 4,406.6 (5,922.1) — Current income tax recoverable — 0.7 — 0.7 42.5 — 43.2 Inventories 3.4 507.1 — 510.5 543.3 — 1,053.8 Unrealized fair value of derivative assets 3.9 0.5 — 4.4 2.8 — 7.2 740.4 1,922.5 (317.0) 2,345.9 5,400.9 (5,922.1) $ 1,824.7 Non-current assets Property, plant and equipment 77.8 3,497.3 — 3,575.1 2,764.9 — 6,340.0 Goodwill — 158.8 — 158.8 — — 158.8 Long-term investments 116.5 — — 116.5 9.7 — 126.2 Investments in joint venture — — — — 18.4 — 18.4 Intercompany investments 4,354.0 4,497.2 (7,127.1) 1,724.1 15,342.4 (17,066.5) — Unrealized fair value of derivative assets 1.8 1.7 — 3.5 1.0 — 4.5 Other long-term assets 15.4 164.8 — 180.2 388.0 — 568.2 Long-term intercompany receivables 3,215.1 1,964.7 (1,759.8) 3,420.0 3,500.3 (6,920.3) — Deferred tax assets — — — — 35.2 — 35.2 Total assets $ 8,521.0 $ 12,207.0 $ (9,203.9) $ 11,524.1 $ 27,460.8 $ (29,908.9) $ 9,076.0 Liabilities Current liabilities Accounts payable and accrued liabilities $ 89.1 $ 208.7 $ — $ 297.8 $ 171.5 $ — $ 469.3 Intercompany payables 123.0 858.1 (317.0) 664.1 5,258.0 (5,922.1) — Current income tax payable — 65.4 — 65.4 2.6 — 68.0 Current portion of provisions — 25.7 — 25.7 32.2 — 57.9 Other current liabilities 2.6 10.8 — 13.4 6.9 — 20.3 214.7 1,168.7 (317.0) 1,066.4 5,471.2 (5,922.1) 615.5 Non-current liabilities Long-term debt and credit facilities 1,837.4 — — 1,837.4 — — 1,837.4 Provisions 11.4 448.4 — 459.8 378.8 — 838.6 Long-term lease liabilities 18.4 11.5 — 29.9 9.0 — 38.9 Unrealized fair value of derivative liabilities 0.3 — — 0.3 0.5 — 0.8 Other long-term liabilities — 45.0 — 45.0 62.7 — 107.7 Long-term intercompany payables 1,120.3 3,141.7 (1,759.8) 2,502.2 4,418.1 (6,920.3) — Deferred tax liabilities — 264.6 — 264.6 39.9 — 304.5 Total liabilities 3,202.5 5,079.9 (2,076.8) 6,205.6 10,380.2 (12,842.4) 3,743.4 Equity Common shareholders’ equity Common share capital $ 14,926.2 $ 1,795.3 $ (1,795.3) $ 14,926.2 $ 19,276.8 $ (19,276.8) $ 14,926.2 Contributed surplus 242.1 3,476.0 (3,476.0) 242.1 6,556.0 (6,556.0) 242.1 Accumulated deficit (9,829.4) 1,875.3 (1,875.3) (9,829.4) (8,712.2) 8,712.2 (9,829.4) Accumulated other comprehensive income (loss) (20.4) (19.5) 19.5 (20.4) (54.1) 54.1 (20.4) Total common shareholders’ equity 5,318.5 7,127.1 (7,127.1) 5,318.5 17,066.5 (17,066.5) 5,318.5 Non-controlling interest — — — — 14.1 — 14.1 Total equity 5,318.5 7,127.1 (7,127.1) 5,318.5 17,080.6 (17,066.5) 5,332.6 Total liabilities and equity $ 8,521.0 $ 12,207.0 $ (9,203.9) $ 11,524.1 $ 27,460.8 $ (29,908.9) $ 9,076.0 Consolidating balance sheet as at December 31, 2018 Guarantors Kinross Gold Guarantor Guarantor Total Non- Corp. Subsidiaries Adjustments Guarantors guarantors Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 29.7 $ 103.8 $ — $ 133.5 $ 215.5 $ — $ 349.0 Restricted cash — 6.2 — 6.2 6.5 — 12.7 Accounts receivable and other assets 9.7 30.4 — 40.1 61.3 — 101.4 Intercompany receivables 558.9 1,098.0 (275.8) 1,381.1 4,283.2 (5,664.3) — Current income tax recoverable — 2.3 — 2.3 76.7 — 79.0 Inventories 2.6 478.3 — 480.9 571.1 — 1,052.0 Unrealized fair value of derivative assets 3.3 0.5 — 3.8 — — 3.8 604.2 1,719.5 (275.8) 2,047.9 5,214.3 (5,664.3) 1,597.9 Non-current assets Property, plant and equipment 31.5 2,931.4 — 2,962.9 2,556.2 — 5,519.1 Goodwill — 158.8 — 158.8 3.9 — 162.7 Long-term investments 145.9 — — 145.9 10.0 — 155.9 Investments in joint ventures — — — — 18.3 — 18.3 Intercompany investments 3,557.8 3,983.5 (6,213.0) 1,328.3 15,167.0 (16,495.3) — Unrealized fair value of derivative assets — 0.8 — 0.8 — — 0.8 Other long-term assets 11.7 187.3 — 199.0 365.1 — 564.1 Long-term intercompany receivables 3,215.3 2,421.7 (1,981.0) 3,656.0 3,576.0 (7,232.0) — Deferred tax assets — — — — 45.0 — 45.0 Total assets $ 7,566.4 $ 11,403.0 $ (8,469.8) $ 10,499.6 $ 26,955.8 $ (29,391.6) $ 8,063.8 Liabilities Current liabilities Accounts payable and accrued liabilities $ 74.5 $ 207.9 $ — $ 282.4 $ 183.5 $ — $ 465.9 Intercompany payables 131.0 687.3 (275.8) 542.5 5,121.8 (5,664.3) — Current income tax payable — 14.1 — 14.1 7.6 — 21.7 Current portion of provisions — 23.6 — 23.6 49.0 — 72.6 Other current liabilities 7.1 12.3 — 19.4 32.8 — 52.2 212.6 945.2 (275.8) 882.0 5,394.7 (5,664.3) 612.4 Non-current liabilities Long-term debt and credit facilities 1,735.0 — — 1,735.0 — — 1,735.0 Provisions 10.9 403.0 — 413.9 402.5 — 816.4 Long-term lease liabilities — — — — — — — Unrealized fair value of derivative liabilities 3.9 3.6 — 7.5 2.1 — 9.6 Other long-term liabilities — 54.7 — 54.7 43.2 — 97.9 Long-term intercompany payables 1,097.3 3,589.4 (1,981.0) 2,705.7 4,526.3 (7,232.0) — Deferred tax liabilities — 194.1 — 194.1 71.1 — 265.2 Total liabilities 3,059.7 5,190.0 (2,256.8) 5,992.9 10,439.9 (12,896.3) 3,536.5 Equity Common shareholders’ equity Common share capital $ 14,913.4 $ 1,795.3 $ (1,795.3) $ 14,913.4 $ 19,217.6 $ (19,217.6) $ 14,913.4 Contributed surplus 239.8 3,442.6 (3,442.6) 239.8 6,415.6 (6,415.6) 239.8 Accumulated deficit (10,548.0) 1,001.6 (1,001.6) (10,548.0) (9,078.2) 9,078.2 (10,548.0) Accumulated other comprehensive income (loss) (98.5) (26.5) 26.5 (98.5) (59.7) 59.7 (98.5) Total common shareholders’ equity 4,506.7 6,213.0 (6,213.0) 4,506.7 16,495.3 (16,495.3) 4,506.7 Non-controlling interest — — — — 20.6 — 20.6 Total equity 4,506.7 6,213.0 (6,213.0) 4,506.7 16,515.9 (16,495.3) 4,527.3 Total liabilities and equity $ 7,566.4 $ 11,403.0 $ (8,469.8) $ 10,499.6 $ 26,955.8 $ (29,391.6) $ 8,063.8 Consolidating statement of operations for the year ended December 31, 2019 Guarantors Kinross Gold Guarantor Guarantor Total Non- Corp. Subsidiaries Adjustments Guarantors guarantors Eliminations Consolidated Revenue Metal sales $ 1,892.0 $ 1,848.0 $ (1,794.7) $ 1,945.3 $ 1,552.0 $ — $ 3,497.3 Cost of sales Production cost of sales 1,857.5 1,009.8 (1,794.5) 1,072.8 706.1 — 1,778.9 Depreciation, depletion and amortization 3.3 373.7 (0.2) 376.8 354.5 — 731.3 Reversals of impairment charges — (200.7) — (200.7) (161.1) — (361.8) Total cost of sales 1,860.8 1,182.8 (1,794.7) 1,248.9 899.5 — 2,148.4 Gross profit 31.2 665.2 — 696.4 652.5 — 1,348.9 Other operating expense 18.0 21.6 — 39.6 68.9 — 108.5 Exploration and business development 29.6 20.8 — 50.4 63.1 — 113.5 General and administrative 86.1 4.7 — 90.8 45.0 — 135.8 Operating earnings (loss) (102.5) 618.1 — 515.6 475.5 — 991.1 Other income (expense) - net 33.0 2.1 — 35.1 249.2 (211.7) 72.6 Equity in earnings (losses) of joint ventures and intercompany investments 767.1 390.5 (824.4) 333.2 0.1 (333.2) 0.1 Finance income 83.5 57.1 (7.2) 133.4 89.7 (215.2) 7.9 Finance expense (63.7) (75.0) 7.2 (131.5) (191.6) 215.2 (107.9) Earnings (loss) before tax 717.4 992.8 (824.4) 885.8 622.9 (544.9) 963.8 Income tax (expense) recovery - net 1.2 (168.4) — (167.2) (79.5) — (246.7) Net earnings (loss) $ 718.6 $ 824.4 $ (824.4) $ 718.6 $ 543.4 $ (544.9) $ 717.1 Net earnings (loss) attributable to: Non-controlling interest $ — $ — $ — $ — $ (1.5) $ — $ (1.5) Common shareholders $ 718.6 $ 824.4 $ (824.4) $ 718.6 $ 544.9 $ (544.9) $ 718.6 Consolidating statement of operations for the year ended December 31, 2018 Guarantors Kinross Gold Guarantor Guarantor Total Non- Corp. Subsidiaries Adjustments Guarantors guarantors Eliminations Consolidated Revenue Metal sales $ 1,936.0 $ 1,837.2 $ (1,784.0) $ 1,989.2 $ 1,223.4 $ — $ 3,212.6 Cost of sales Production cost of sales 1,897.7 1,091.6 (1,784.0) 1,205.3 655.2 — 1,860.5 Depreciation, depletion and amortization 3.7 409.3 — 413.0 359.4 — 772.4 Reversals of impairment charges — — — — — — — Total cost of sales 1,901.4 1,500.9 (1,784.0) 1,618.3 1,014.6 — 2,632.9 Gross profit 34.6 336.3 — 370.9 208.8 — 579.7 Other operating expense 7.6 59.9 — 67.5 69.5 — 137.0 Exploration and business development 26.1 17.4 — 43.5 65.7 — 109.2 General and administrative 76.0 4.5 — 80.5 52.5 — 133.0 Operating earnings (loss) (75.1) 254.5 — 179.4 21.1 — 200.5 Other income (expense) - net 12.9 (57.9) — (45.0) 460.1 (411.9) 3.2 Equity in earnings (losses) of joint ventures, associate and intercompany investments 41.4 1.0 (78.1) (35.7) 0.1 35.3 (0.3) Finance income 64.7 59.8 (8.1) 116.4 123.0 (228.4) 11.0 Finance expense (64.6) (104.5) 8.1 (161.0) (168.6) 228.4 (101.2) Earnings (loss) before tax (20.7) 152.9 (78.1) 54.1 435.7 (376.6) 113.2 Income tax (expense) recovery - net (2.9) (74.8) — (77.7) (61.1) — (138.8) Net earnings (loss) $ (23.6) $ 78.1 $ (78.1) $ (23.6) $ 374.6 $ (376.6) $ (25.6) Net earnings (loss) attributable to: Non-controlling interest $ — $ — $ — $ — $ (2.0) $ — $ (2.0) Common shareholders $ (23.6) $ 78.1 $ (78.1) $ (23.6) $ 376.6 $ (376.6) $ (23.6) Consolidating statement of comprehensive income (loss) for the year ended December 31, 2019 Guarantors Kinross Gold Guarantor Guarantor Total Non- Corp. Subsidiaries Adjustments Guarantors guarantors Eliminations Consolidated Net earnings (loss) $ 718.6 $ 824.4 $ (824.4) $ 718.6 $ 543.4 $ (544.9) $ 717.1 Other comprehensive income (loss), net of tax: Items that will not be reclassified to profit or loss: Equity investments at fair value through other comprehensive income ("FVOCI") - net change in fair value (a) 49.6 — — 49.6 (0.6) — 49.0 Items that are or may be reclassified to profit or loss in subsequent periods: Cash flow hedges - effective portion of changes in fair value (b) 14.2 9.4 — 23.6 — — 23.6 Cash flow hedges - reclassified to profit or loss (c) (0.3) 5.8 — 5.5 — — 5.5 63.5 15.2 — 78.7 (0.6) — 78.1 Equity in other comprehensive income (loss) of intercompany investments 14.6 — (15.2) (0.6) — 0.6 — Total comprehensive income (loss) $ 796.7 $ 839.6 $ (839.6) $ 796.7 $ 542.8 $ (544.3) $ 795.2 Attributable to non-controlling interest $ — $ — $ — $ — $ (1.5) $ — $ (1.5) Attributable to common shareholders $ 796.7 $ 839.6 $ (839.6) $ 796.7 $ 544.3 $ (544.3) $ 796.7 (a) Net of tax of $ — $ — $ — $ — $ 0.3 $ — $ 0.3 (b) Net of tax of $ 1.3 $ 3.2 $ — $ 4.5 $ — $ — $ 4.5 (c) Net of tax of $ (0.1) $ 3.3 $ — $ 3.2 $ — $ — $ 3.2 Consolidating statement of comprehensive income (loss) for the year ended December 31, 2018 Guarantors Kinross Gold Guarantor Guarantor Total Non- Corp. Subsidiaries Adjustments Guarantors guarantors Eliminations Consolidated Net earnings (loss) $ (23.6) $ 78.1 $ (78.1) $ (23.6) $ 374.6 $ (376.6) $ (25.6) Other comprehensive income (loss), net of tax: Items that will not be reclassified to profit or loss: Equity investments at fair value through other comprehensive income ("FVOCI") - net change in fair value (a) (24.2) — — (24.2) (1.6) — (25.8) Items that are or may be reclassified to profit or loss in subsequent periods: Cash flow hedges - effective portion of changes in fair value (b) (12.1) (35.8) — (47.9) — — (47.9) Cash flow hedges - reclassified to profit or loss (c) (6.7) (2.4) — (9.1) — — (9.1) (43.0) (38.2) — (81.2) (1.6) — (82.8) Equity in other comprehensive income (loss) of intercompany investments (39.8) — 38.2 (1.6) — 1.6 — Total comprehensive income (loss) $ (106.4) $ 39.9 $ (39.9) $ (106.4) $ 373.0 $ (375.0) $ (108.4) Attributable to non-controlling interest $ — $ — $ — $ — $ (2.0) $ — $ (2.0) Attributable to common shareholders $ (106.4) $ 39.9 $ (39.9) $ (106.4) $ 375.0 $ (375.0) $ (106.4) (a) Net of tax of $ — $ — $ — $ — $ (0.3) $ — $ (0.3) (b) Net of tax of $ (3.0) $ (17.9) $ — $ (20.9) $ — $ — $ (20.9) (c) Net of tax of $ — $ 0.2 $ — $ 0.2 $ — $ — $ 0.2 Consolidating statement of cash flows for the year ended December 31, 2019 Guarantors Kinross Gold Guarantor Guarantor Total Non- Corp. Subsidiaries Adjustments Guarantors guarantors Eliminations Consolidated Net inflow (outflow) of cash related to the following activities: Operating: Net earnings (loss) $ 718.6 $ 824.4 $ (824.4) $ 718.6 $ 543.4 $ (544.9) $ 717.1 Adjustments to reconcile net earnings (loss) to net cash provided from (used in) operating activities: Depreciation, depletion and amortization 3.3 373.7 (0.2) 376.8 354.5 — 731.3 Gain on disposition of associate and other interests - net — — — — — — — Reversals of impairment charges — (200.7) — (200.7) (161.1) — (361.8) Equity in (earnings) losses of joint ventures and intercompany investments (767.1) (390.5) 824.4 (333.2) (0.1) 333.2 (0.1) Share-based compensation expense 14.3 — — 14.3 — — 14.3 Finance expense 63.7 75.0 (7.2) 131.5 191.6 (215.2) 107.9 Deferred tax expense (recovery) (1.2) 65.8 — 64.6 (23.5) — 41.1 Foreign exchange (gains) losses and other (9.8) (10.4) — (20.2) (32.9) — (53.1) Reclamation recovery — — — (11.9) — (11.9) Changes in operating assets and liabilities: Accounts receivable and other assets (1.2) (14.4) — (15.6) (48.9) — (64.5) Inventories (0.8) 12.6 0.2 12.0 41.8 — 53.8 Accounts payable and accrued liabilities 4.1 80.3 — 84.4 81.5 — 165.9 Cash flow provided from (used in) operating activities 23.9 815.8 (7.2) 832.5 934.4 (426.9) 1,340.0 Income taxes recovered (paid) — (57.0) — (57.0) (58.1) — (115.1) Net cash flow provided from (used in) operating activities 23.9 758.8 (7.2) 775.5 876.3 (426.9) 1,224.9 Investing: Additions to property, plant and equipment (30.7) (696.4) — (727.1) (378.1) — (1,105.2) Acquisitions — — — — (30.0) — (30.0) Net proceeds from the sale of (additions to) long-term investments and other assets 126.8 (22.6) — 104.2 (32.6) — 71.6 Net proceeds from the sale of property, plant and equipment 12.0 0.3 — 12.3 19.6 — 31.9 Increase in restricted cash — (0.4) — (0.4) (2.1) — (2.5) Interest received and other - net 0.5 1.6 — 2.1 5.5 — 7.6 Net cash flow provided from (used in) investing activities 108.6 (717.5) — (608.9) (417.7) — (1,026.6) Financing: Proceeds from draw down of debt 300.0 — — 300.0 — — 300.0 Repayment of debt (200.0) — — (200.0) — — (200.0) Payment of lease liabilities (2.0) (8.6) — (10.6) (3.7) — (14.3) Interest paid (55.6) — — (55.6) — — (55.6) Dividends received from (paid to) common shareholders and subsidiaries — (22.3) — (22.3) (189.4) 211.7 — Dividend paid to non-controlling interest — — — — (5.0) — (5.0) Intercompany advances (83.6) 5.3 7.2 (71.1) (144.1) 215.2 — Other - net 3.9 — — 3.9 (3.9) — — Net cash flow provided from (used in) financing activities (37.3) (25.6) 7.2 (55.7) (346.1) 426.9 25.1 Effect of exchange rate changes on cash and cash equivalents — — — — 2.7 — 2.7 Increase (decrease) in cash and cash equivalents 95.2 15.7 — 110.9 115.2 — 226.1 Cash and cash equivalents, beginning of period 29.7 103.8 — 133.5 215.5 — 349.0 Cash and cash equivalents, end of period $ 124.9 $ 119.5 $ — $ 244.4 $ 330.7 $ — $ 575.1 Consolidating statement of cash flows for the year ended December 31, 2018 Guarantors Kinross Gold Guarantor Guarantor Total Non- Corp. Subsidiaries Adjustments Guarantors guarantors Eliminations Consolidated Net inflow (outflow) of cash related to the following activities: Operating: Net earnings (loss) $ (23.6) $ 78.1 $ (78.1) $ (23.6) $ 374.6 $ (376.6) $ (25.6) Adjustments to reconcile net earnings (loss) to net cash provided from (used in) operating activities: Depreciation, depletion and amortization 3.7 409.3 — 413.0 359.4 — 772.4 Gain on disposition of associate and other interests - net — — — — (2.1) — (2.1) Reversals of impairment charges — — — — — — — Equity in (earnings) losses of joint ventures and intercompany investments (41.4) (1.0) 78.1 35.7 (0.1) (35.3) 0.3 Share-based compensation expense 14.6 — — 14.6 — — 14.6 Finance expense 64.6 104.5 (8.1) 161.0 168.6 (228.4) 101.2 Deferred tax expense (recovery) 3.0 42.0 — 45.0 (36.1) — 8.9 Foreign exchange (gains) losses and other 5.4 (8.4) — (3.0) 15.5 — 12.5 Reclamation recovery — — — (8.0) — (8.0) Changes in operating assets and liabilities: Accounts receivable and other assets (1.6) 7.9 — 6.3 (29.0) — (22.7) Inventories (0.5) 18.0 — 17.5 (23.2) — (5.7) Accounts payable and accrued liabilities (23.9) 12.8 — (11.1) 80.9 — 69.8 Cash flow provided from (used in) operating activities 0.3 663.2 (8.1) 655.4 900.5 (640.3) 915.6 Income taxes recovered (paid) 0.1 (28.5) — (28.4) (98.5) — (126.9) Net cash flow provided from (used in) operating activities 0.4 634.7 (8.1) 627.0 802.0 (640.3) 788.7 Investing: Additions to property, plant and equipment (7.4) (523.7) — (531.1) (512.3) — (1,043.4) Acquisitions — (269.2) — (269.2) (35.0) — (304.2) Net proceeds from the sale of (additions to) long-term investments and other assets 10.7 (23.5) — (12.8) (40.1) — (52.9) Net proceeds from the sale of property, plant and equipment — 0.5 — 0.5 5.9 — 6.4 Increase in restricted cash — (0.6) — (0.6) — — (0.6) Interest received and other - net 2.2 1.4 — 3.6 4.1 — 7.7 Net cash flow provided from (used in) from investing activities 5.5 (815.1) — (809.6) (577.4) — (1,387.0) Financing: Proceeds from draw down of debt 80.0 — — 80.0 — — 80.0 Repayment of debt (80.0) — — (80.0) — — (80.0) Payment of lease liabilities — — — — — — — Interest paid (57.9) — — (57.9) — — (57.9) Dividends received from (paid to) common shareholders and subsidiaries 0.1 0.4 — 0.5 (412.4) 411.9 — Dividend paid to non-controlling interest — — — — (13.0) — (13.0) Intercompany advances (185.1) 161.1 8.1 (15.9) (212.5) 228.4 — Other - net (0.9) — — (0.9) (0.8) — (1.7) Net cash flow provided from (used in) financing activities (243.8) 161.5 8.1 (74.2) (638.7) 640.3 (72.6) Effect of exchange rate changes on cash and cash equivalents — — — — (5.9) — (5.9) Increase (decrease) in cash and cash equivalents (237.9) (18.9) — (256.8) (420.0) — (676.8) Cash and cash equivalents, beginning of period 267.6 122.7 — 390.3 635.5 — 1,025.8 Cash and cash equivalents, end of period $ 29.7 $ 103.8 $ — $ 133.5 $ 215.5 $ — $ 349.0 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of consolidation | i. Principles of consolidation The significant mining properties and entities of Kinross are listed below. All operating activities involve gold mining and exploration. Each of the significant entities has a December 31 year-end. As at December 31, December 31, Entity Property/ Segment Location 2019 2018 Subsidiaries: (Consolidated) Fairbanks Gold Mining, Inc. Fort Knox USA 100 % 100 % Kinross Brasil Mineração S.A. ("KBM") Paracatu Brazil 100 % 100 % Compania Minera Maricunga ("CMM") Maricunga and Lobo-Marte Chile 100 % 100 % Compania Minera Mantos de Oro ("MDO") La Coipa / Corporate and Other Chile 100 % 100 % Echo Bay Minerals Company Kettle River - Buckhorn / Corporate and Other USA 100 % 100 % Chukotka Mining and Geological Company Kupol Russian 100 % 100 % Northern Gold LLC Dvoinoye/ Kupol Russian 100 % 100 % Tasiast Mauritanie Ltd. S.A. Tasiast Mauritania 100 % 100 % Chirano Gold Mines Ltd. (a) Chirano Ghana 90 % 90 % KG Mining (Bald Mountain) Inc. ("KGBM") Bald Mountain USA 100 % 100 % Round Mountain Gold Corporation / KG Mining (Round Mountain) Inc. Round Mountain USA 100 % 100 % Interest in joint venture: (Equity accounted) Sociedad Contractual Minera Puren Puren / Corporate and Other Chile 65 % 65 % (a) The Company holds a 90% interest in Chirano Gold Mines Ltd. with the Government of Ghana having the right to the remaining 10% interest. (a) Subsidiaries Subsidiaries are entities controlled by the Company. Control exists when an investor is exposed, or has rights, to variable returns from its involvement with an investee and has the ability to affect those returns through its power over the investee. Subsidiaries are included in the consolidated financial statements from the date control is obtained until the date control ceases. Where the Company’s interest in a subsidiary is less than 100%, the Company recognizes non-controlling interests. All intercompany balances, transactions, income, expenses, profits and losses, including unrealized gains and losses have been eliminated on consolidation. (b) Joint Arrangements The Company conducts a portion of its business through joint arrangements where the parties are bound by contractual arrangements establishing joint control and requiring unanimous consent of each of the parties regarding those activities that significantly affect the returns of the arrangement. The Company’s interest in a joint arrangement is classified as either a joint operation or a joint venture depending on its rights and obligations in the arrangement. In a joint operation, the Company has rights to its share of the assets, and obligations for its share of the liabilities, of the joint arrangement, while in a joint venture, the Company has rights to its share of the net assets of the joint arrangement. For a joint operation, the Company recognizes in the consolidated financial statements, its share of the assets, liabilities, revenue, and expenses of the joint arrangement, while for a joint venture, the Company recognizes its investment in the joint arrangement using the equity method of accounting in the consolidated financial statements. (c) Associates Associates are entities, including unincorporated entities such as partnerships, over which the Company has significant influence and that are neither subsidiaries nor interests in joint arrangements. Significant influence is the ability to participate in the financial and operating policy decisions of the investee without having control or joint control over those policies. In general, significant influence is presumed to exist when the Company has between 20% and 50% of voting power. Significant influence may also be evidenced by factors such as the Company’s representation on the board of directors, participation in policy-making of the investee, material transactions with the investee, interchange of managerial personnel, or the provision of essential technical information. Associates are equity accounted for from the effective date of commencement of significant influence to the date that the Company ceases to have significant influence. Results of associates are equity accounted for using the results of their most recent annual financial statements or interim financial statements, as applicable. Losses from associates are recognized in the consolidated financial statements until the interest in the associate is written down to nil. Thereafter, losses are recognized only to the extent that the Company is committed to providing financial support to such associates. The carrying value of the investment in an associate represents the cost of the investment, including goodwill, a share of the post-acquisition retained earnings and losses, accumulated other comprehensive income (“AOCI”) and any impairment losses. At the end of each reporting period, the Company assesses whether there is any objective evidence that its investments in associates are impaired. |
Functional and presentation currency | ii. Functional and presentation currency The functional and presentation currency of the Company is the United States dollar. Transactions denominated in foreign currencies are translated into the United States dollar as follows: · Monetary assets and liabilities are translated at the rates of exchange on the consolidated balance sheet date; · Non-monetary assets and liabilities are translated at historical exchange rates prevailing at each transaction date; · Revenue and expenses are translated at the exchange rate at the date of the transaction, except depreciation, depletion and amortization, which are translated at the rates of exchange applicable to the related assets, and share-based compensation expense, which is translated at the rates of exchange applicable on the date of grant of the share-based compensation; and · Exchange gains and losses on translation are included in earnings. When the gain or loss on certain non-monetary items, such as long-term investments classified as and measured at FVOCI, is recognized in other comprehensive income (“OCI”), the related translation differences are also recognized in OCI. |
Cash and cash equivalents | iii. Cash and cash equivalents Cash and cash equivalents include cash and highly liquid investments with a maturity of three months or less at the date of acquisition. Restricted cash is cash held in banks that is not available for general corporate use. Cash and cash equivalents, and restricted cash are classified as and measured at amortized cost. |
Short-term investments | iv. Short-term investments Short-term investments include short-term money market instruments with terms to maturity at the date of acquisition of between three and twelve months. The carrying value of short-term investments is equal to cost and accrued interest. Short-term investments are classified as and measured at amortized cost. |
Long-term investments | v. Long-term investments Investments in entities that are not subsidiaries, joint operations, joint ventures or investments in associates are designated as financial assets at FVOCI. These equity investments are measured at fair value on acquisition and at each reporting date, with all realized and unrealized gains and losses recorded permanently in AOCI. |
Inventories | vi. Inventories Inventories consisting of metal in circuit ore, metal in-process and finished metal are valued at the lower of cost or net realizable value (“NRV”). NRV is calculated as the difference between the estimated gold prices based on prevailing and long-term metal prices and estimated costs to complete production into a saleable form and estimated costs to sell. Metal in circuit is comprised of ore in stockpiles and ore on heap leach pads. Ore in stockpiles is coarse ore that has been extracted from the mine and is available for further processing. Costs are added to stockpiles based on the current mining cost per tonne and removed at the average cost per tonne. Costs are added to ore on the heap leach pads based on current mining costs and removed from the heap leach pads as ounces are recovered, based on the average cost per recoverable ounce of gold on the leach pad. Ore in stockpiles not expected to be processed in the next twelve months is classified as long-term. The quantities of recoverable gold placed on the leach pads are reconciled by comparing the grades of ore placed on the leach pads to the quantities of gold actually recovered (metallurgical balancing); however, the nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, the metallurgical balancing process is constantly monitored and the engineering estimates are refined based on actual results over time. Variances between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write downs to NRV are accounted for on a prospective basis. The ultimate actual recovery of gold from a leach pad will not be known until the leaching process has concluded. In the event that the Company determines, based on engineering estimates, that a quantity of gold contained in ore on leach pads is to be recovered over a period exceeding twelve months, that portion is classified as long-term. In-process inventories represent materials that are in the process of being converted to a saleable product. Materials and supplies are valued at the lower of average cost and NRV. Write-downs of inventory are recognized in the consolidated statement of operations in the current period. The Company reverses inventory write downs in the event that there is a subsequent increase in NRV. |
Borrowing costs | vii. Borrowing costs Borrowing costs are generally expensed as incurred except where they relate to the financing of qualifying assets that require a substantial period of time to get ready for their intended use. Qualifying assets include the cost of developing mining properties and constructing new facilities. Borrowing costs related to qualifying assets are capitalized up to the date when the asset is ready for its intended use. Where funds are borrowed specifically to finance a project, the amount capitalized represents the actual borrowing costs incurred net of any investment income earned on the investment of those borrowings. Where the funds used to finance a project form part of general borrowings, the amount capitalized is calculated using a weighted average of rates applicable to relevant general borrowings of the Company during the period. |
Business combinations | viii. Business combinations A business combination is a transaction or other event in which control over one or more businesses is obtained. A business is an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs or other economic benefits. A business consists of inputs and processes applied to those inputs that have the ability to create outputs that provide a return to the Company and its shareholders. A business need not include all of the inputs and processes that were used by the acquiree to produce outputs if the business can be integrated with the inputs and processes of the Company to continue to produce outputs. If the integrated set of activities and assets is in the exploration and development stage, and thus, may not have outputs, the Company considers other factors to determine whether the set of activities and assets is a business. Those factors include, but are not limited to, whether the set of activities and assets: · has begun planned principal activities; · has employees, intellectual property and other inputs and processes that could be applied to those inputs; · is pursuing a plan to produce outputs; and · will be able to obtain access to customers that will purchase the outputs. Not all of the above factors need to be present for a particular integrated set of activities and assets in the development stage to qualify as a business. Business acquisitions are accounted for using the acquisition method whereby acquired assets and liabilities are recorded at fair value as of the date of acquisition with the excess of the purchase consideration over such fair value being recorded as goodwill and allocated to cash generating units (“CGUs”). Non-controlling interest in an acquisition may be measured at either fair value or at the non-controlling interest’s proportionate share of the fair value of the acquiree’s net identifiable assets. If the fair value of the net assets acquired exceeds the purchase consideration, the difference is recognized immediately as a gain in the consolidated statement of operations. Where a business combination is achieved in stages, previously held equity interests in the acquiree are re-measured at their acquisition-date fair value and any resulting gain or loss is recognized in the consolidated statement of operations. Acquisition related costs are expensed during the period in which they are incurred, except for the cost of debt or equity instruments issued in relation to the acquisition which is included in the carrying amount of the related instrument. Certain fair values may be estimated at the acquisition date pending confirmation or completion of the valuation process. Where provisional values are used in accounting for a business combination, they are adjusted retrospectively in subsequent periods. However, the measurement period will not exceed one year from the acquisition date. If the assets acquired are not a business, the transaction is accounted for as an asset acquisition. |
Goodwill | ix. Goodwill Business acquisitions are accounted for using the acquisition method whereby acquired assets and liabilities are recorded at fair value as of the date of acquisition with the excess of the acquisition amount over such fair value being recorded as goodwill and allocated to CGUs. CGUs are the smallest identifiable group of assets, liabilities and associated goodwill that generate cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Each individual mineral property that is an operating or development stage mine is typically a CGU. Goodwill arises principally because of the following factors: (1) the going concern value of the Company’s capacity to sustain and grow by replacing and augmenting mineral reserves through completely new discoveries; (2) the ability to capture buyer-specific synergies arising upon a transaction; (3) the optionality (real option value associated with the portfolio of acquired mines as well as each individual mine) to develop additional higher-cost mineral reserves, to intensify efforts to develop the more promising acquired properties and to reduce efforts at developing the less promising acquired properties in the future (this optionality may result from changes in the overall economics of an individual mine or a portfolio of mines, largely driven by changes in the gold price); and (4) the requirement to record a deferred tax liability for the difference between the assigned values and the tax bases of the assets acquired and liabilities assumed in a business combination. |
Exploration and evaluation ("E&E") costs | x. Exploration and evaluation (“E&E”) costs Exploration and evaluation costs are those costs required to find a mineral property and determine its commercial viability. E&E costs include costs to establish an initial mineral resource and determine whether inferred mineral resources can be upgraded to measured and indicated mineral resources and whether measured and indicated mineral resources can be converted to proven and probable reserves. E&E costs consist of: · gathering exploration data through topographical and geological studies; · exploratory drilling, trenching and sampling; · determining the volume and grade of the resource; · test work on geology, metallurgy, mining, geotechnical and environmental; and · conducting engineering, marketing and financial studies. Project costs in relation to these activities are expensed as incurred until such time as the Company expects that mineral resources will be converted to mineral reserves within a reasonable period. Thereafter, costs for the project are capitalized prospectively as capitalized exploration and evaluation costs in property, plant and equipment. The Company also recognizes E&E costs as assets when acquired as part of a business combination, or asset purchase. These assets are recognized at fair value. Acquired E&E costs consist of the fair value of: · estimated potential ounces, and · exploration properties. Acquired or capitalized E&E costs for a project are classified as such until the project demonstrates technical feasibility and commercial viability. Upon demonstrating technical feasibility and commercial viability, and subject to an impairment analysis, capitalized E&E costs are transferred to capitalized development costs within property, plant and equipment. Technical feasibility and commercial viability generally coincides with the establishment of proven and probable mineral reserves; however, this determination may be impacted by management’s assessment of certain modifying factors including: legal, environmental, social and governmental factors. |
Property, plant and equipment | xi. Property, plant and equipment Property, plant and equipment are recorded at cost and carried net of accumulated depreciation, depletion and amortization and accumulated impairment losses. The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, the estimate of reclamation and remediation costs, and, for qualifying assets, capitalized borrowing costs. Costs to acquire mineral properties are capitalized and represent the property’s fair value at the time it was acquired, either as an individual asset purchase or as part of a business combination. Interest expense attributable to the cost of developing mining properties and to constructing new facilities is capitalized until assets are ready for their intended use. Acquired or capitalized E&E costs may be included within mineral interests in development and operating properties or pre-development properties depending upon the nature of the property to which the costs relate. Repairs and maintenance costs are expensed as incurred. However, expenditures on major maintenance rebuilds or overhauls are capitalized when it is probable that the expenditures will extend the productive capacity or useful life of an asset. (a) Asset categories The Company categorizes property, plant and equipment based on the type of asset and/or the stage of operation or development of the property. Land, plant and equipment includes land, mobile and stationary equipment, and refining and processing facilities for all properties regardless of their stage of development or operation. Mineral interests consist of: · Development and operating properties, which include capitalized development and stripping costs, cost of assets under construction, E&E costs and mineral interests for those properties currently in operation, for which development has commenced, or for which proven and probable reserves have been declared; and · Pre-development properties, which include E&E costs and mineral interests for those properties for which development has not commenced. (b) Depreciation, depletion and amortization For plant and other facilities, stripping costs, reclamation and remediation costs, production stage mineral interests and plant expansion costs, the Company uses the units-of-production (“UOP”) method for determining depreciation, depletion and amortization, net of residual value. The expected useful lives used in the UOP calculations are determined based on the facts and circumstances associated with the mineral interest. The Company evaluates the proven and probable reserves at least on an annual basis and adjusts the UOP calculation to correspond with the changes in reserves. The expected useful life used in determining UOP does not exceed the estimated life of the ore body based on recoverable ounces to be mined from estimated proven and probable reserves. Any changes in estimates of useful lives are accounted for prospectively from the date of the change. Stripping and other costs incurred in a pit expansion are capitalized and amortized using the UOP method based on recoverable ounces to be mined from estimated proven and probable reserves contained in the pit expansion. Land is not depreciated. Mobile and other equipment are depreciated, net of residual value, using the straight-line method, over the estimated useful life of the asset. Useful lives for mobile and other equipment range from 2 to 10 years, but do not exceed the related estimated mine life based on proven and probable reserves. The Company reviews useful lives and estimated residual values of its property, plant and equipment annually. Acquired or capitalized E&E costs and assets under construction are not depreciated. These assets are depreciated when they are ready for their intended use. (c) Derecognition The carrying amount of an item of property, plant and equipment is derecognized on disposal of the asset or when no future economic benefits are expected to accrue to the Company from its continued use. Any gain or loss arising on derecognition is included in the consolidated statement of operations in the period in which the asset is derecognized. The gain or loss is determined as the difference between the carrying value and the net proceeds on the sale of the assets, if any, at the time of disposal. |
Valuation of Goodwill and Long-lived Assets | xii. Valuation of Goodwill and Long-lived Assets Goodwill is tested for impairment on an annual basis as at December 31, and at any other time if events or changes in circumstances indicate that the recoverable amount of a CGU containing goodwill has been reduced below its carrying amount. The carrying value of property, plant and equipment is reviewed each reporting period to determine whether there is any indication of impairment or reversal of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. In addition, capitalized E&E costs are assessed for impairment upon demonstrating the technical feasibility and commercial viability of a project. For such non-current assets, the recoverable amount is determined for an individual asset unless the asset does not generate cash inflows that are independent of those generated from other assets or groups of assets, in which case, the individual assets are grouped together into CGUs for impairment testing purposes. If the carrying amount of the CGU or asset exceeds its recoverable amount, an impairment is considered to exist and an impairment loss is recognized in the consolidated statement of operations to reduce the CGU or asset's carrying value to its recoverable amount. For property, plant and equipment and other long-lived assets, a previously recognized impairment loss is reversed if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited to the carrying value that would have been determined, net of any applicable depreciation, had no impairment charge been recognized previously. The recoverable amount of a CGU or asset is the higher of its fair value less cost of disposal and its value in use. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction between knowledgeable and willing parties. Fair value for mineral assets is generally determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset, including any expansion prospects, and its eventual disposal, using assumptions that an independent market participant may take into account. These cash flows are discounted by an appropriate discount rate to arrive at a net present value or net asset value (“NAV”) of the asset. Value in use is determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset in its present form and its eventual disposal. Value in use is determined by applying assumptions specific to the Company’s continued use of the asset and does not take into account assumptions of significant future enhancements of an asset’s performance or capacity to which the Company is not committed. Estimates of expected future cash flows reflect estimates of future revenues, cash costs of production and capital expenditures contained in the Company’s long-term life of mine (“LOM”) plans, which are updated for each CGU on an annual basis. |
Leases | xiii. Leases Right-of-use assets and lease liabilities are recognized at the commencement date of a lease. Lease liabilities are initially measured at the present value of lease payments to be paid after the lease’s commencement date, discounted using the interest rate implicit in the lease, or if not readily determinable, the Company's incremental borrowing rate. Right-of-use assets are initially measured at cost, which consists of the initial amount of the lease liability adjusted for any lease payments made on or before the lease’s commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle or restore the leased asset, less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the useful life of the asset or the term of the lease. If a purchase option is expected to be exercised, the asset is amortized over its useful life. Lease liabilities are subsequently measured at amortized cost using the effective interest method and are re-measured if and when there is a change in future lease payments arising from a change in an index or rate, or if and when there is a change in the assessment of whether a purchase, extension or termination option is likely to be exercised. Lease payments for short-term leases, which have a lease term of 12 months or less, leases of low-value assets, which have an underlying asset value, when new, of $5,000 or less, as well as leases with variable lease payments are recognized as an expense over the term of such leases. |
Financial instruments and hedging activity | xiv. Financial instruments and hedging activity (a) Financial instrument classification and measurement Financial assets are classified according to their contractual cash flow characteristics and the business models under which they are held. On initial recognition, a financial asset is classified as: amortized cost, fair value through profit and loss (“FVPL”) or FVOCI. A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as FVPL: · it is held with the objective of collecting contractual cash flows; and · its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to measure the investment at FVOCI whereby changes in the investment’s fair value (realized and unrealized) will be recognized permanently in OCI with no reclassification to profit or loss. The election is made on an investment-by-investment basis. All financial assets not classified as amortized cost or FVOCI are classified as and measured at FVPL. This includes all derivative assets. On initial recognition, a financial asset that otherwise meets the requirements to be measured at amortized cost or FVOCI may be irrevocably designated as FVPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. Financial instruments are measured on initial recognition at fair value, plus, in the case of financial instruments other than those classified as FVPL, directly attributable transaction costs. Measurement of financial assets in subsequent periods depends on whether the financial asset has been classified as amortized cost, FVPL or FVOCI. Measurement of financial liabilities subsequent to initial recognition depends on whether they are classified as amortized cost or FVPL. Financial assets and financial liabilities classified as amortized cost are measured subsequent to initial recognition using the effective interest method. Loss allowances for ‘expected credit losses’ are recognized on financial assets measured at amortized cost, contract assets and investments in debt instruments measured at FVOCI, but not to equity investments. A loss event is not required to have occurred before a credit loss is recognized. The Company has classified and measured its financial instruments as described below: · Cash and cash equivalents, restricted cash and short-term investments are classified as and measured at amortized cost. · Trade receivables and certain other assets are classified as and measured at amortized cost. · Long-term investments in equity securities, where the Company cannot exert significant influence, are classified as and measured at FVOCI. · Accounts payable and accrued liabilities and long-term debt are classified as and measured at amortized cost. · Derivative assets and liabilities including derivative financial instruments that do not qualify as hedges, or are not designated as hedges, and are classified as and measured at FVPL. (b) Hedges The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategies for undertaking hedge transactions. This process includes linking all derivatives to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. Hedge effectiveness is assessed based on the degree to which the cash flows from the derivative contracts are expected to offset the cash flows of the underlying position or transaction being hedged. At the time of inception of the hedge and on an ongoing basis, the Company assesses whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. Derivative contracts that have been designated as cash flow hedges have been entered into in order to effectively establish prices for future production of metals, to hedge exposure to exchange rate fluctuations of foreign currency denominated settlement of capital and operating expenditures, to establish prices for future purchases of energy or to hedge exposure to interest rate fluctuations. Unrealized gains or losses arising from changes in the fair value of these contracts are recorded in OCI, net of tax, and are included in earnings when the underlying hedged transaction, identified at the contract inception, is completed, unless such hedged transaction results in the recognition of a non-financial asset. Any ineffective portion of a hedge relationship is recognized immediately in earnings. The Company matches the realized gains or losses on contracts designated as cash flow hedges with the hedged expenditures at the maturity of the contracts. When derivative contracts designated as cash flow hedges have been terminated or cease to be effective prior to maturity and no longer qualify for hedge accounting, any gains or losses recorded in OCI up until the time the contracts do not qualify for hedge accounting, remain in OCI. These amounts recorded in OCI are recognized in earnings in the period in which the underlying hedged transaction is completed. Gains or losses arising subsequent to the derivative contracts not qualifying for hedge accounting are recognized in earnings in the period in which they occur. For hedges that do not qualify for hedge accounting, gains or losses are recognized in earnings in the current period. |
Share-based payments | xv. Share-based payments The Company has a number of equity-settled and cash-settled share-based compensation plans under which the Company issues either equity instruments or makes cash payments based on the value of the underlying equity instrument of the Company. The Company’s share-based compensation plans are comprised of the following: Share Option Plan: Stock options are generally equity-settled. The fair value of stock options at the grant date is estimated using the Black-Scholes option pricing model. Compensation expense is recognized over the stock option vesting period based on the number of options estimated to vest. Management estimates the number of awards likely to vest at the time of a grant and at each reporting date up to the vesting date. Annually, the estimated forfeiture rate is adjusted for actual forfeitures in the period. On exercise of the vested options, either shares are issued from treasury, or the options are cancelled and a cash payment equal to the ‘in-the-money’ value of the options is made. Restricted Share Plan: Restricted share units (“RSUs”) and Restricted performance share units (“RPSUs”) are granted under the Restricted Share Plan. Both RSUs and RPSUs are awarded to certain employees as a percentage of long-term incentive awards. (a) RSUs may be equity or cash-settled and are recorded at fair value based on the market value of the shares at the grant date. The Company’s compensation expense is recognized over the vesting period based on the number of units estimated to vest. Management estimates the number of awards likely to vest on grant and at each reporting date up to the vesting date. The estimated forfeiture rate is adjusted for actual forfeitures in each reporting period. On vesting of equity-settled RSUs, shares are generally issued from treasury. Cash settled RSUs are accounted for as a liability at fair value and re-measured each period based on the current market value of the underlying stock at period end, with changes in the liability recorded as compensation expense each period. (b) RPSUs are equity-settled and are subject to certain vesting requirements based on performance criteria over the vesting period established by the Company. RPSUs are recorded at fair value as follows: The portion of the RPSUs related to market conditions are recorded at fair value based on the application of a Monte Carlo pricing model at the date of grant and the portion related to non-market conditions is fair valued based on the market value of the shares at the date of grant. The Company’s compensation expense is recognized over the vesting period based on the number of units estimated to vest. Management estimates the number of awards likely to vest on grant and at each reporting date up to the vesting date. The estimated forfeiture rate is adjusted for actual forfeitures in each reporting period. On vesting of RPSUs, shares are generally issued from treasury. Deferred Share Unit Plan: Deferred share units (“DSUs”) are cash-settled and accounted for as a liability at fair value which is based on the market value of the shares at the grant date. The fair value of the liability is re-measured each period based on the current market value of the underlying stock at period end and any changes in the liability are recorded as compensation expense each period. Employee Share Purchase Plan: The Company’s contribution to the employee Share Purchase Plan (“SPP”) is recorded as compensation expense on a payroll cycle basis as the employer’s obligation to contribute is incurred. The cost of the common shares purchased under the SPP are either based on the weighted average closing price of the last twenty trading sessions prior to the end of the period for shares issued from treasury, or are based on the price paid for common shares purchased in the open market. |
Metal sales | xvi. Metal sales Metal sales includes sales of refined gold and silver and doré, which are generally physically delivered to customers in the period in which they are produced, with their sales price based on prevailing spot market metal prices. In order to manage short-term metal price risk, the Company may enter into derivative contracts in relation to metal sales that it believes are highly likely to occur within a given quarter. No such contracts were outstanding at December 31, 2019 or December 31, 2018. Revenue from metal sales is recognized when control over the metal is transferred to the customer. Transfer of control generally occurs when the refined gold, silver or doré has been accepted by the customer. Once the customer has accepted the metals, the significant risks and rewards of ownership have typically been transferred and the customer is able to direct the use of and obtain substantially all of the remaining benefits from the metals. On transfer of control, revenue and related costs can be measured reliably and it is probable that the economic benefits associated with the transaction will flow to the Company as payment is received on the date of or within a few days of transfer of control. The Company manages and reviews its operations by geographical location and managerial structure. For detailed information about reportable segments and disaggregated revenue, see Note 18. All segments principally generate revenue from metal sales. |
Provision for reclamation and remediation | xvii. Provision for reclamation and remediation The Company records a liability and corresponding asset for the present value of the estimated costs of legal and constructive obligations for future site reclamation and closure activities where the liability is more likely than not to exist and a reasonable estimate can be made of the obligation. The estimated present value of the obligation is reassessed on an annual basis or when new material information becomes available. Increases or decreases to the obligation usually arise due to changes in legal or regulatory requirements, the extent of environmental remediation required, methods of reclamation, cost estimates, or discount rates. Changes to the provision for reclamation and remediation obligations related to operating mines, which are not the result of current production of inventory, are recorded with an offsetting change to the related asset. For properties where mining activities have ceased or are in reclamation, changes are charged directly to earnings. The present value is determined based on current market assessments of the time value of money using discount rates specific to the country in which the asset or reclamation site is located and is determined as the risk-free rate of borrowing approximated by the yield on sovereign debt for that country, with a maturity approximating the end of mine life. The periodic unwinding of the discounted obligation is recognized in the consolidated statement of operations as a finance expense. |
Income tax | xviii. Income tax The income tax expense or benefit for the period consists of two components: current and deferred. Income tax expense is recognized in the consolidated statement of operations except to the extent it relates to a business combination or items recognized directly in equity. Current tax is the expected tax payable or receivable on the taxable profit or loss for the year. Current tax is calculated using tax rates and laws that were enacted or substantively enacted at the balance sheet date in each of the jurisdictions and includes any adjustments for taxes payable or recovery in respect of prior periods. Deferred tax is recognized in respect of temporary differences between the carrying amount of assets and liabilities in the consolidated balance sheet and the corresponding tax bases used in the computation of taxable profit. Deferred tax is calculated based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates that are expected to apply in the year of realization or settlement based on tax rates and laws enacted or substantively enacted at the balance sheet date. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax liabilities are recognized for taxable temporary differences arising on investments in subsidiaries, associates and joint ventures except where the reversal of the temporary difference can be controlled and it is probable that the difference will not reverse in the foreseeable future. Deferred tax assets are recognized for all deductible temporary differences, carryforward of unused tax credits and unused tax losses to the extent it is probable future taxable profits will be available against which they can be utilized. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax liabilities are not recognized on temporary differences that arise from goodwill which is not deductible for tax purposes. Deferred tax assets and liabilities are not recognized in respect of temporary differences that arise on initial recognition of assets and liabilities acquired other than in a business combination. Deferred tax assets and liabilities are offset where they relate to income taxes levied by the same taxation authority and the Company has the legal right and intent to offset. |
Earnings (loss) per share | xix. Earnings (loss) per share Earnings (loss) per share calculations are based on the weighted average number of common shares and common share equivalents issued and outstanding during the period. Basic earnings (loss) per share amounts are calculated by dividing net earnings (loss) attributable to common shareholders for the period by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share amounts are calculated by dividing net earnings (loss) attributable to common shareholders for the period by the diluted weighted average shares outstanding during the period. Diluted earnings per share is calculated using the treasury method. The treasury method, which assumes that outstanding stock options, warrants, RSUs and RPSUs with an average exercise price below the market price of the underlying shares, are exercised and the assumed proceeds are used to repurchase common shares of the Company at the average market price of the common shares for the period. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Significant mining properties and entities of Kinross | As at December 31, December 31, Entity Property/ Segment Location 2019 2018 Subsidiaries: (Consolidated) Fairbanks Gold Mining, Inc. Fort Knox USA 100 % 100 % Kinross Brasil Mineração S.A. ("KBM") Paracatu Brazil 100 % 100 % Compania Minera Maricunga ("CMM") Maricunga and Lobo-Marte Chile 100 % 100 % Compania Minera Mantos de Oro ("MDO") La Coipa / Corporate and Other Chile 100 % 100 % Echo Bay Minerals Company Kettle River - Buckhorn / Corporate and Other USA 100 % 100 % Chukotka Mining and Geological Company Kupol Russian 100 % 100 % Northern Gold LLC Dvoinoye/ Kupol Russian 100 % 100 % Tasiast Mauritanie Ltd. S.A. Tasiast Mauritania 100 % 100 % Chirano Gold Mines Ltd. (a) Chirano Ghana 90 % 90 % KG Mining (Bald Mountain) Inc. ("KGBM") Bald Mountain USA 100 % 100 % Round Mountain Gold Corporation / KG Mining (Round Mountain) Inc. Round Mountain USA 100 % 100 % Interest in joint venture: (Equity accounted) Sociedad Contractual Minera Puren Puren / Corporate and Other Chile 65 % 65 % (a) The Company holds a 90% interest in Chirano Gold Mines Ltd. with the Government of Ghana having the right to the remaining 10% interest. |
CHANGES IN SIGNIFICANT ACCOUN_2
CHANGES IN SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
CHANGES IN SIGNIFICANT ACCOUNTING POLICIES | |
Summary of impact of the transition to IFRS 16 | As at December 31, 2018 IFRS 16 Adjustments As at January 1, 2019 Property, plant and equipment $ 5,519.1 $ 42.9 $ 5,562.0 Current portion of lease liabilities (a) $ — $ 7.3 $ 7.3 Long-term lease liabilities $ — $ 35.6 $ 35.6 (a) Current portion of lease liabilities is included in other current liabilities on the consolidated balance sheet. See Note 7ix . |
Summary of operating lease commitments to the lease liabilities | Operating lease commitments as at December 31, 2018 $ 70.3 Discounted as at January 1, 2019 (a) $ 53.7 IFRS 16 recognition exemption for short-term leases (4.3) Leases with extension options reasonably certain to be exercised 2.1 Leases with variable lease payments (15.2) Other adjusting items 6.6 Total lease liabilities recognized as at January 1, 2019 $ 42.9 (a) The weighted-average incremental borrowing rate applied to the measurement of lease liabilities as at January 1, 2019 was 7.04%. |
Summary of lease payments that have been expensed | The following table summarizes such lease payments that have been expensed for the year ended December 31, 2019: Leases with a term of 12 months or less $ 23.7 Leases of assets with underlying value, when new, of $5,000 or less 0.4 Leases with variable lease payments 23.3 $ 47.4 |
Summary of total undiscounted lease liability maturities | 2020 2021-2024 2025+ Total Within 1 year 1 to 5 years More than 5 years Lease liabilities $ 65.4 $ 16.0 $ 31.7 $ 17.7 |
ACQUISITIONS AND DISPOSITIONS (
ACQUISITIONS AND DISPOSITIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ACQUISITIONS AND DISPOSITIONS | |
Schedule of preliminary purchase price allocation | Preliminary Adjustments Final Property, plant and equipment $ 253.7 $ (26.6) $ 227.1 Intangible assets — 27.0 27.0 Environmental provisions — (0.4) (0.4) Total purchase price $ 253.7 $ — $ 253.7 |
CONSOLIDATED FINANCIAL STATEM_2
CONSOLIDATED FINANCIAL STATEMENT DETAILS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
CONSOLIDATED FINANCIAL STATEMENT DETAILS | |
Schedule of cash and cash equivalents | December 31, December 31, 2019 2018 Cash on hand and balances with banks $ 305.6 $ 207.9 Short-term deposits 269.5 141.1 $ 575.1 $ 349.0 |
Schedule of restricted cash | December 31, December 31, 2019 2018 Restricted cash (a) $ 15.2 $ 12.7 (a) Restricted cash relates to loan escrow judicial deposits and environmental indemnity deposits. |
Schedule of accounts receivable and other assets | December 31, December 31, 2019 2018 Trade receivables $ 6.9 $ 3.6 Prepaid expenses 25.2 21.3 VAT receivable 69.6 48.4 Deposits 10.5 8.5 Other 18.0 19.6 $ 130.2 $ 101.4 |
Schedule of inventories | December 31, December 31, 2019 2018 Ore in stockpiles (a) $ 300.3 $ 299.9 Ore on leach pads (b) 384.7 375.0 In-process 99.2 113.5 Finished metal 52.3 50.5 Materials and supplies 520.6 540.7 1,357.1 1,379.6 Long-term portion of ore in stockpiles and ore on leach pads (a),(b) (303.3) (327.6) $ 1,053.8 $ 1,052.0 (a) Ore in stockpiles relates to the Company’s operating mines. Low-grade material not scheduled for processing within the next 12 months is included in other long-term assets on the consolidated balance sheets. See Note 7vii. (b) Ore on leach pads relates to the Company's Tasiast, Fort Knox, Round Mountain and Bald Mountain mines. Based on current mine plans, the Company expects to place the last tonne of ore on its leach pads at Tasiast in 2020, Bald Mountain in 2023, Round Mountain in 2026 and Fort Knox in 2028. Material not scheduled for processing within the next 12 months is included in other long-term assets on the consolidated balance sheets. See Note 7vii. |
Schedule of property, plant and equipment | Mineral Interests Development and Land, plant and operating Pre-development equipment (a) properties (b) properties Total Cost Balance at January 1, 2019 $ 9,184.2 $ 8,816.6 $ 13.4 $ 18,014.2 Additions 607.5 666.5 — 1,274.0 Capitalized interest 14.7 32.7 — 47.4 Disposals (69.9) — — (69.9) Other (21.5) 24.8 — 3.3 Balance at December 31, 2019 9,715.0 9,540.6 13.4 19,269.0 Accumulated depreciation, depletion, amortization and reversal of impairment charges Balance at January 1, 2019 $ (5,702.1) $ (6,793.0) $ — $ (12,495.1) Depreciation, depletion and amortization (572.9) (280.6) — (853.5) Reversals of impairment charges (c) 102.4 259.4 — 361.8 Disposals 60.5 — — 60.5 Other (2.0) (0.7) — (2.7) Balance at December 31, 2019 (6,114.1) (6,814.9) — (12,929.0) Net book value $ 3,600.9 $ 2,725.7 $ 13.4 $ 6,340.0 Amount included above as at December 31, 2019: Assets under construction $ 308.8 $ 438.2 $ — $ 747.0 Assets not being depreciated (d) $ 538.3 $ 735.9 $ 13.4 $ 1,287.6 (a) Additions includes $42.9 million of transitional adjustments for the recognition of leased right-of-use assets upon the Company’s adoption of IFRS 16 on January 1, 2019 (See Note 4), as well as $22.7 million of right-of-use assets for lease arrangements entered into during the year ended December 31, 2019. Depreciation, depletion and amortization includes depreciation for leased right-of-use assets of $11.5 million during the year ended December 31, 2019. The net book value of property, plant and equipment includes leased right-of-use assets with an aggregate net book value of $54.1 million as at December 31, 2019. (b) At December 31, 2019, the significant development and operating properties include projects at Fort Knox, Round Mountain, Bald Mountain, Paracatu, Kupol, Tasiast, Chirano, La Coipa and Lobo-Marte. (c) At December 31, 2019, impairment reversals were recorded at Paracatu and Tasiast, entirely related to property, plant and equipment. See Note 8. (d) Assets not being depreciated relate to land, capitalized E&E costs, assets under construction, which relate to expansion projects, and other assets that are in various stages of being readied for use. Mineral Interests Development and Land, plant and operating Pre-development equipment properties (a) properties Total Cost Balance at January 1, 2018 $ 8,374.7 $ 8,311.5 $ 15.5 $ 16,701.7 Additions 629.4 457.1 — 1,086.5 Acquisitions (b) 274.8 65.1 — 339.9 Capitalized interest 23.8 17.7 — 41.5 Disposals (115.7) (39.9) (2.1) (157.7) Other (2.8) 5.1 — 2.3 Balance at December 31, 2018 9,184.2 8,816.6 13.4 18,014.2 Accumulated depreciation, depletion and amortization Balance at January 1, 2018 $ (5,308.4) $ (6,506.1) $ — $ (11,814.5) Depreciation, depletion and amortization (508.5) (317.0) — (825.5) Disposals 106.5 39.9 — 146.4 Other 8.3 (9.8) — (1.5) Balance at December 31, 2018 (5,702.1) (6,793.0) — (12,495.1) Net book value $ 3,482.1 $ 2,023.6 $ 13.4 $ 5,519.1 Amount included above as at December 31, 2018: Assets under construction $ 495.0 $ 288.5 $ — $ 783.5 Assets not being depreciated (c) $ 719.1 $ 584.3 $ 13.4 $ 1,316.8 (a) At December 31, 2018, the significant development and operating properties include projects at Fort Knox, Round Mountain, Bald Mountain, Paracatu, Kupol, Tasiast, Chirano, La Coipa and Lobo-Marte. (b) During the year ended December 31, 2018, the Company completed the acquisitions of the remaining 50% interest in the La Coipa Phase 7 mining concessions that it did not already own, two hydroelectric power plants in Brazil and the remaining 50% interest in the Bald Mountain exploration joint venture. See Notes 6iii, iv and v. (c) Assets not being depreciated relate to land, capitalized E&E costs, assets under construction, which relate to expansion projects, and other assets that are in various stages of being readied for use. |
Schedule of long-term investments | December 31, 2019 December 31, 2018 Gains (losses) in Gains (losses) in Fair value AOCI (a) Fair value AOCI (a) Investments in an accumulated gain position $ 79.8 $ 10.3 $ 76.1 $ 4.5 Investments in an accumulated loss position 46.4 (36.5) 79.8 (78.7) Net realized gains (losses) — — — (1.0) $ 126.2 $ (26.2) $ 155.9 $ (75.2) |
Schedule of other long-term assets | December 31, December 31, 2019 2018 Long-term portion of ore in stockpiles and ore on leach pads (a) $ 303.3 $ 327.6 Deferred charges, net of amortization 32.5 9.7 Long-term receivables (b) 171.0 182.5 Advances for the purchase of capital equipment 15.1 3.0 Other 46.3 41.3 $ 568.2 $ 564.1 (a) Long-term portion of ore in stockpiles and ore on leach pads represents low-grade material not scheduled for processing within the next 12 months. As at December 31, 2019, long-term ore in stockpiles was at the Company’s Fort Knox, Kupol, Tasiast, Chirano and Paracatu mines, and long-term ore on leach pads was at the Company’s Fort Knox, Round Mountain, and Tasiast mines. (b) As at December 31, 2019, long-term receivables includes an estimated benefit of $34.5 million (December 31, 2018 - $66.1 million) related to the enactment of U.S. Tax Reform legislation in December 2017. See Note 17 for additional information regarding U.S. Tax Reform impacts. |
Schedule of accounts payable and accrued liabilities | December 31, December 31, 2019 2018 Trade payables $ 89.3 $ 89.1 Accrued liabilities 246.7 260.6 Employee related accrued liabilities 133.3 116.2 $ 469.3 $ 465.9 |
Schedule of other current liabilities | December 31, December 31, 2019 2018 Current portion of lease liabilities $ 16.0 $ — Current portion of unrealized fair value of derivative liabilities (a) 4.3 22.2 Deferred payment obligation (b) — 30.0 $ 20.3 $ 52.2 (a) See Note 10 for details of the current portion of unrealized fair value of derivative liabilities. (b) On January 30, 2019 Kinross paid the deferred payment obligation of $30.0 million relating to the purchase of the remaining 50% interest in the Phase 7 concessions of the La Coipa mine. See Note 6iii. |
Schedule of accumulated other comprehensive income (loss) | Long-term Derivative Investments Contracts Total Balance at December 31, 2017 $ 6.9 $ 14.2 $ 21.1 Adjustment on initial application of IFRS 9 (56.3) — (56.3) Other comprehensive loss before tax (26.1) (77.7) (103.8) Tax 0.3 20.7 21.0 Losses on cash flow hedges transferred to cost of non-financial assets (a) — 19.5 19.5 Balance at December 31, 2018 $ (75.2) $ (23.3) $ (98.5) Other comprehensive income before tax 49.3 36.8 86.1 Tax (0.3) (7.7) (8.0) Balance at December 31, 2019 $ (26.2) $ 5.8 $ (20.4) (a) Net of tax recovery of $10.0 million. |
Schedule of other operating expense | Years ended December 31, 2019 2018 Other operating expense $ 108.5 $ 137.0 $ 108.5 $ 137.0 |
Schedule of other income (expense), net | Years ended December 31, 2019 2018 Gains (losses) on dispositions of other assets - net (a) $ 70.4 $ (0.8) Foreign exchange gains (losses) - net 0.6 (4.3) Net non-hedge derivative gains (losses) 1.4 (1.2) Other 0.2 9.5 $ 72.6 $ 3.2 (a) During the year ended December 31, 2019, the Company recognized a gain of $72.7 million on disposition of a portfolio of precious metals royalties. See Note 6ii. |
Schedule of finance expense | Years ended December 31, 2019 2018 Accretion of reclamation and remediation obligations $ (31.0) $ (29.1) Interest expense, including accretion of debt and lease liabilities (a), (b) (76.9) (72.1) $ (107.9) $ (101.2) (a) During the years ended December 31, 2019 and 2018, $47.4 million and $41.5 million, respectively, of interest was capitalized to property, plant and equipment. See Note 7iv. (b) During the years ended December 31, 2019 and 2018, accretion of lease liabilities was $2.9 million and $nil, respectively. |
Schedule of employee benefits expenses | Years ended December 31, 2019 2018 Salaries, short-term incentives, and other benefits $ 680.8 $ 668.6 Share-based payments 27.0 21.3 Other 26.4 9.6 $ 734.2 $ 699.5 |
REVERSALS OF IMPAIRMENT CHARG_2
REVERSALS OF IMPAIRMENT CHARGES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
REVERSALS OF IMPAIRMENT CHARGES | |
Schedule of reversals of impairment charges | Years ended December 31, 2019 2018 Property, plant and equipment $ 361.8 $ — $ 361.8 $ — |
INVESTMENTS IN JOINT VENTURES_2
INVESTMENTS IN JOINT VENTURES AND ASSOCIATE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INVESTMENT IN JOINT VENTURE | |
Schedule of investment in joint ventures and associate | December 31, December 31, 2019 2018 Investment in joint venture - Puren $ 18.4 $ 18.3 $ 18.4 $ 18.3 |
Schedule of equity in losses of joint ventures and associate | Years ended December 31, 2019 2018 Puren (a) $ 0.1 $ 0.1 Bald Mountain Exploration Joint Venture (a), (b) — (0.4) $ 0.1 $ (0.3) (a) Represents Kinross’ share of the net earnings (losses) and other comprehensive income (loss). (b) On October 2, 2018, the Company acquired the remaining 50% interest in the exploration joint venture it did not already own. See Note 6v. |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENT | |
Assets (liabilities) measured at fair value on a recurring basis | Aggregate Level 1 Level 2 Level 3 Fair Value Equity investments at FVOCI $ 126.2 $ — $ — $ 126.2 Derivative contracts: Foreign currency forward and collar contracts — 3.9 — 3.9 Energy swap contracts — 4.0 — 4.0 Total return swap contracts — (1.3) — (1.3) $ 126.2 $ 6.6 $ — $ 132.8 |
Summary of information about derivative contracts outstanding | December 31, 2019 December 31, 2018 Asset / (Liability) Asset / (Liability) Fair Value AOCI Fair Value AOCI Currency contracts Foreign currency forward and collar contracts (a) (i) $ 3.9 $ 2.6 $ (21.8) $ (15.8) Commodity contracts Energy swap contracts (b) (ii) 4.0 3.2 (8.6) (7.5) Other contracts Total return swap contracts (iii) (1.3) — 3.2 — Total all contracts $ 6.6 $ 5.8 $ (27.2) $ (23.3) Unrealized fair value of derivative assets Current $ 7.2 $ 3.8 Non-current 4.5 0.8 $ 11.7 $ 4.6 Unrealized fair value of derivative liabilities Current $ (4.3) $ (22.2) Non-current (0.8) (9.6) $ (5.1) $ (31.8) Total net fair value $ 6.6 $ (27.2) (a) Of the total amount recorded in AOCI at December 31, 2019, $0.7 million will be reclassified to net earnings within the next 12 months as a result of settling the contracts. (b) Of the total amount recorded in AOCI at December 31, 2019, $2.5 million will be reclassified to net earnings within the next 12 months as a result of settling the contracts. |
Summary of foreign currency forward and collar contracts outstanding | Foreign currency 2020 2021 2022 Brazilian real zero cost collars (in millions of U.S. dollars) $ 116.0 $ 64.0 $ 13.2 Average put strike (Brazilian real) 3.76 4.11 4.20 Average call strike (Brazilian real) 4.23 4.71 4.78 Canadian dollar forward buy contracts (in millions of U.S. dollars) $ 31.2 $ 12.0 $ — Average rate (Canadian dollar) 1.32 1.33 — Russian rouble zero cost collars (in millions of U.S. dollars) $ 47.7 $ 25.2 $ — Average put strike (Russian rouble) 65.3 65.8 — Average call strike (Russian rouble) 77.6 84.2 — |
Summary of energy swap contracts outstanding | The following table provides a summary of energy swap contracts outstanding at December 31, 2019 and their respective maturities: Energy 2020 2021 2022 WTI oil swap contracts (barrels) 946,800 609,000 74,100 Average price $ 54.43 $ 52.79 $ 50.21 |
CAPITAL AND FINANCIAL RISK MA_2
CAPITAL AND FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Capital and financial risk management | |
Schedule of target total debt to total debt and common shareholders' equity ratio | December 31, December 31, 2019 2018 Long-term debt and credit facilities $ 1,837.4 $ 1,735.0 Current portion of long-term debt and credit facilities — — Total debt $ 1,837.4 $ 1,735.0 Common shareholders' equity $ 5,318.5 $ 4,506.7 Total debt / total debt and common shareholders' equity ratio 25.7 % 27.8 % Company target 0 – 30 % 0 – 30 % |
Currency risk | |
Capital and financial risk management | |
Schedule of risk management | 10% strengthening in 10% weakening in U.S. dollar U.S. dollar Foreign currency net Effect on earnings before Effect on earnings before working capital taxes, gain (loss) (a) taxes, gain (loss) (a) Canadian dollar $ (26.3) $ 2.4 $ (2.9) Brazilian real $ (91.3) $ 8.3 $ (10.1) Chilean peso $ (5.0) $ 0.5 $ (0.6) Russian rouble $ 33.4 $ (3.0) $ 3.7 Mauritanian ouguiya $ (68.1) $ 6.2 $ (7.6) Other (b) $ 7.0 $ (0.6) $ 0.8 (a) As described in Note 3(ii), the Company translates its monetary assets and liabilities into U.S. dollars at the rates of exchange at the consolidated balance sheet dates. Gains and losses on translation of foreign currencies are included in earnings. (b) Includes Euro, Ghanaian cedi, British pound, Australian dollar and South African rand. At December 31, 2019, with other variables unchanged, the following represents the effect of the Company’s foreign currency hedging contracts on OCI before taxes from a 10% change in the exchange rate of the U.S. dollar against the Canadian dollar, Brazilian real and Russian rouble. 10% strengthening in 10% weakening in U.S. dollar U.S. dollar Effect on OCI before Effect on OCI before taxes, gain (loss) (a) taxes, gain (loss) (a) Canadian dollar $ (3.9) $ 4.8 Brazilian real $ (10.7) $ 13.3 Russian rouble $ (3.2) $ 6.5 (a) Upon maturity of these contracts, the amounts in OCI before taxes will reverse against hedged items that the contracts relate to, which may be to earnings or property, plant and equipment. |
Price Risk | |
Capital and financial risk management | |
Schedule of risk management | 10% increase in 10% decrease in price price Effect on OCI before Effect on OCI before taxes, gain (loss) (a) taxes, gain (loss) (a) WTI oil $ 9.0 $ (8.9) (a) Upon maturity of these contracts, the amounts in OCI before taxes will reverse against hedged items that the contracts relate to, which will be to earnings. |
Liquidity risk | |
Capital and financial risk management | |
Schedule of risk management | 2020 2021-2024 2025+ Total Within 1 year (b) 2 to 5 years More than 5 years Long-term debt (a) $ 2,610.3 $ 98.5 $ 1,402.1 $ 1,109.7 (a) Includes the full face value of the senior notes , drawdowns on the revolving credit facility, and estimated interest. (b) Represents interest on the senior notes and revolving credit facility, due within the next 12 months. |
LONG-TERM DEBT AND CREDIT FAC_2
LONG-TERM DEBT AND CREDIT FACILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LONG-TERM DEBT AND CREDIT FACILITIES | |
Schedule of long-term debt | December 31, 2019 December 31, 2018 Deferred Nominal Financing Carrying Fair Carrying Fair Interest Rates Amount Costs Amount (a) Value (b) Amount (a) Value (b) Senior notes (i) 4.50%-6.875% $ 1,747.0 $ (9.6) $ 1,737.4 $ 1,881.9 $ 1,735.0 $ 1,668.8 Revolving credit facility (ii) LIBOR plus 1.625% 100.0 — 100.0 100.0 — — Long-term debt and credit facility $ 1,847.0 $ (9.6) $ 1,837.4 $ 1,981.9 $ 1,735.0 $ 1,668.8 (a) Includes transaction costs on senior notes financings. (b) The fair value of senior notes is primarily determined using quoted market determined variables. See Note 10(c). |
Schedule of scheduled debt repayments | 2025 and 2020 2021 2022 2023 2024 thereafter Total Senior notes $ — $ 500.0 $ — $ — $ 500.0 $ 750.0 $ 1,750.0 Revolving credit facility (a) — — — — 100.0 — 100.0 Total debt payable $ — $ 500.0 $ — $ — $ 600.0 $ 750.0 $ 1,850.0 (a) Subsequent to December 31, 2019, the Company repaid $100.0 million on the revolving credit facility. |
Schedule of interest charges and fees | Type of credit Revolving credit facility LIBOR plus 1.625 % Letters of credit 1.0833 - 1.625 % Standby fee applicable to unused availability 0.325 % |
Schedule of changes in liabilities arising from financing activities | Long-term Lease Accrued interest debt liabilities (a) payable (b) Total Balance as at January 1, 2019 (a) $ 1,735.0 $ 42.9 $ 33.3 $ 1,811.2 Changes from financing cash flows Debt issued 300.0 — — 300.0 Debt repayments (200.0) — — (200.0) Interest paid — — (55.6) (55.6) Payment of lease liabilities — (14.3) — (14.3) 1,835.0 28.6 (22.3) 1,841.3 Other changes Interest expense and accretion $ — $ — $ 74.0 $ 74.0 Capitalized interest — — 47.4 47.4 Capitalized interest paid — — (45.0) (45.0) Additions of lease liabilities — 22.9 — 22.9 Accretion of lease liabilities — 2.9 — 2.9 Other cash changes — — (10.0) (10.0) Other non-cash changes 2.4 0.5 (10.8) (7.9) 2.4 26.3 55.6 84.3 Balance as at December 31, 2019 $ 1,837.4 $ 54.9 $ 33.3 $ 1,925.6 (a) Total lease liabilities of $42.9 million was recognized upon the initial application of IFRS 16 as of January 1, 2019. See Note 4. (a) Included in Accounts payable and accrued liabilities. Long-term Lease Accrued interest debt liabilities payable (a) Total Balance as at January 1, 2018 $ 1,732.6 $ — $ 33.8 $ 1,766.4 Changes from financing cash flows Debt issued 80.0 — — 80.0 Debt repayments (80.0) — — (80.0) Interest paid — — (57.9) (57.9) 1,732.6 — (24.1) 1,708.5 Other changes Interest expense and accretion $ — $ — $ 72.1 $ 72.1 Capitalized interest — — 41.5 41.5 Capitalized interest paid — — (38.2) (38.2) Other cash changes — — (9.9) (9.9) Other non-cash changes 2.4 — (8.1) (5.7) 2.4 — 57.4 59.8 Balance as at December 31, 2018 $ 1,735.0 $ — $ 33.3 $ 1,768.3 (a) Included in Accounts payable and accrued liabilities. |
PROVISIONS (Tables)
PROVISIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PROVISIONS | |
Schedule of provisions | Reclamation and remediation obligations (i) Other Total Balance at January 1, 2019 $ 854.1 $ 34.9 $ 889.0 Additions 55.7 7.2 62.9 Reductions (7.4) (11.7) (19.1) Reclamation spending (55.4) — (55.4) Accretion 31.0 — 31.0 Reclamation recovery (11.9) — (11.9) Balance at December 31, 2019 $ 866.1 $ 30.4 $ 896.5 Current portion 50.5 7.4 57.9 Non-current portion 815.6 23.0 838.6 $ 866.1 $ 30.4 $ 896.5 |
COMMON SHARE CAPITAL (Tables)
COMMON SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
COMMON SHARE CAPITAL | |
Schedule of common share transactions | Year ended Year ended December 31, 2019 December 31, 2018 Number of shares Amount Number of shares Amount (000’s) (000’s) Common shares Balance at January 1, 1,250,229 $ 14,913.4 1,247,004 $ 14,902.5 Issued under share option and restricted share plans 3,537 12.8 3,225 10.9 Balance at end of period 1,253,766 $ 14,926.2 1,250,229 $ 14,913.4 Total common share capital $ 14,926.2 $ 14,913.4 |
SHARE-BASED PAYMENTS (Tables)
SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based payment transaction | |
Summary of share-based compensation recorded during the year | Years ended December 31, 2019 2018 Share option plan expense (i) $ 2.4 $ 2.7 Restricted share unit plan expense, including restricted performance shares (ii) 24.6 18.6 Deferred share units expense (iii) 1.1 1.1 Employer portion of employee share purchase plan (iv) 2.1 2.1 Total share-based compensation expense $ 30.2 $ 24.5 |
Share options | |
Share-based payment transaction | |
Summary of status of the share option plan and changes during the year | 2019 2018 Weighted average Weighted average Number of options exercise price Number of options exercise price (000’s) (CDN$/option) (000’s) (CDN$/option) Balance at January 1 12,344 $ 5.77 12,173 $ 6.52 Granted 2,042 4.59 1,950 4.95 Exercised (1,577) 4.41 (301) 3.65 Forfeited (741) 4.42 (238) 4.87 Expired (1,898) 9.42 (1,240) 12.58 Outstanding at end of period 10,170 $ 5.16 12,344 $ 5.77 Exercisable at end of period 6,459 $ 5.38 8,861 $ 6.13 |
Summary of information about the stock options outstanding and exercisable | Options outstanding Options exercisable Weighted Weighted Weighted average Weighted average Number of average remaining Number of average remaining options exercise price contractual life options exercise price contractual life Exercise price range in CDN$: (000’s) (CDN$) (years) (000’s) (CDN$) (years) $ 3.73 $ 4.50 2,313 $ 3.90 2,313 $ 3.90 4.51 5.50 5,070 4.85 1,359 5.03 5.51 6.50 1,573 5.82 1,573 5.82 6.51 8.03 1,214 8.02 1,214 8.03 10,170 $ 5.16 6,459 $ 5.38 |
Summary of weighted average assumptions used in computing the fair value of stock options using the Black-Scholes option pricing model | 2019 2018 Weighted average share price (CDN$) $ 4.59 $ 4.95 Expected dividend yield 0.0 % 0.0 % Expected volatility 44.8 % 47.5 % Risk-free interest rate 1.8 % 2.1 % Expected option life (in years) 4.5 4.5 Weighted average fair value per stock option granted (CDN$) $ 1.79 $ 2.05 |
Restricted share units | |
Share-based payment transaction | |
Summary of information about number of units of other equity instruments and their weighted average fair value | The following table summarizes information about the RSUs and related changes during the years ended December 31, 2019 and 2018: 2019 2018 Weighted average Weighted average Number of units fair value Number of units fair value (000’s) (CDN$/unit) (000’s) (CDN$/unit) Balance at January 1 7,626 $ 4.88 8,277 $ 4.63 Granted 5,740 4.56 4,258 4.85 Redeemed (3,888) 4.86 (4,247) 4.37 Forfeited (966) 4.81 (662) 4.86 Outstanding at end of period 8,512 $ 4.68 7,626 $ 4.88 |
Restricted performance share units | |
Share-based payment transaction | |
Summary of information about number of units of other equity instruments and their weighted average fair value | The following table summarizes information about the RPSUs and related changes during the years ended December 31, 2019 and 2018: 2019 2018 Weighted average Weighted average Number of units fair value Number of units fair value (000’s) (CDN$/unit) (000’s) (CDN$/unit) Balance at January 1 4,990 $ 5.14 4,886 $ 4.52 Granted 2,263 4.54 2,807 4.77 Redeemed (1,702) 4.45 (2,523) 3.56 Forfeited (614) 4.71 (180) 4.75 Outstanding at end of period 4,937 $ 5.16 4,990 $ 5.14 |
Deferred share unit plan | |
Share-based payment transaction | |
Summary of information about number of units of other equity instruments and their weighted average fair value | : Years ended December 31, 2019 2018 DSUs granted (000's) 269 312 Weighted average grant-date fair value (CDN$/ unit) $ 5.39 $ 4.39 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS (LOSS) PER SHARE | |
EARNINGS (LOSS) PER SHARE | Years ended December 31, (Number of common shares in thousands) 2019 2018 Basic weighted average shares outstanding: 1,252,316 1,249,495 Weighted average shares dilution adjustments: Stock options 1,679 — Restricted shares 3,181 — Restricted performance shares 5,168 — Diluted weighted average shares outstanding 1,262,344 1,249,495 Weighted average shares dilution adjustments - exclusions: (a) Stock options (b) 3,870 8,819 Restricted shares — 2,777 Restricted performance shares — 4,708 (a) These adjustments were excluded, as they are anti-dilutive. (b) Anti-dilutive stock options were determined using the Company’s average share price for the year. For the years ended December 31, 2019 and 2018, the average share price used was $3.97 and $3.44, respectively. |
INCOME TAX EXPENSE (RECOVERY) (
INCOME TAX EXPENSE (RECOVERY) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAX EXPENSE | |
Schedule of components of the current and deferred tax expense | Years ended December 31, 2019 2018 Current tax expense Current period $ 206.6 $ 137.8 Adjustment for prior periods (1.0) (7.9) Deferred tax expense Origination and reversal of temporary differences 223.0 55.8 Impact of changes in tax rate (1.6) (0.1) Change in unrecognized deductible temporary differences (156.3) (35.6) Recognition of previously unrecognized tax losses (24.0) (11.2) Total tax expense $ 246.7 $ 138.8 |
Schedule of reconciliation of the combined Canadian federal and provincial statutory income tax rate to the effective tax rate | 2019 2018 Combined statutory income tax rate 26.5 % 26.5 % Increase (decrease) resulting from: Mining taxes 1.2 % 8.0 % Percentage of depletion (1.4) % (3.4) % Difference in foreign tax rates and foreign exchange on deferred income taxes within income tax expense 4.5 % 42.1 % Change in unrecognized deferred tax assets (4.1) % 59.2 % Over provided in prior periods (0.4) % (34.4) % Income not subject to tax (0.7) % (17.1) % Effect of non-deductible (non-taxable) impairment/(reversals) (4.2) % 0.2 % Accounting expenses disallowed for tax 2.3 % 17.8 % Taxes on repatriation of foreign earnings 0.5 % 12.4 % AMT credit receivable due to US Tax Reform (0.5) % (7.8) % Other 1.9 % 19.1 % Effective tax rate 25.6 % 122.6 % |
Schedule of summary of the components of deferred income tax and movement in net deferred tax liabilities | December 31, December 31, 2019 2018 Deferred tax assets Accrued expenses and other $ 29.2 $ 39.5 Property, plant and equipment 26.3 25.5 Reclamation and remediation obligations 88.4 69.5 Inventory capitalization 11.5 4.3 Non-capital loss 34.7 19.3 190.1 158.1 Deferred tax liabilities Accrued expenses and other 2.7 2.4 Reclamation and remediation obligations 2.8 — Property, plant and equipment 423.4 340.2 Inventory capitalization 30.5 35.7 Deferred tax liabilities - net $ 269.3 $ 220.2 |
Schedule of unrecognized deferred tax assets and company's non-capital losses | December 31, December 31, 2019 2018 Balance at the beginning of the period $ 220.2 $ 222.3 Recognized in profit/loss 41.1 8.9 Recognized in OCI 8.0 (11.1) Other — 0.1 Balance at the end of the period $ 269.3 $ 220.2 December 31, December 31, 2019 2018 Deductible temporary differences $ 656.5 $ 746.4 Tax losses $ 441.3 $ 551.2 Country Type Amount Expiry Date Canada Net operating losses $ 946.1 2027 - 2039 United States (a) Net operating losses 54.8 2020 - 2033 Chile Net operating losses 323.0 No expiry Brazil Net operating losses 6.3 No expiry Mauritania Net operating losses 219.7 2021 - 2023 Barbados Net operating losses 677.3 2020 - 2025 Luxembourg Net operating losses 74.4 Various Other Net operating losses 56.7 Various |
SEGMENTED INFORMATION (Tables)
SEGMENTED INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SEGMENTED INFORMATION | |
Schedule of operating results by reportable segment | Non-operating Operating segments segments (a) Round Bald Corporate and Year ended December 31, 2019: Fort Knox Mountain Mountain Paracatu Maricunga Kupol Tasiast Chirano other (b) Total Revenue Metal sales $ 279.6 502.2 249.2 856.3 61.2 734.4 532.8 281.6 — $ 3,497.3 Cost of sales Production cost of sales 213.7 250.6 136.6 412.3 31.5 314.1 230.4 189.7 — 1,778.9 Depreciation, depletion and amortization 90.3 39.8 79.5 163.4 1.7 125.1 130.2 92.6 8.7 731.3 Reversals of impairment charges — — — (200.7) — — (161.1) — — (361.8) Total cost of sales 304.0 290.4 216.1 375.0 33.2 439.2 199.5 282.3 8.7 2,148.4 Gross profit (loss) $ (24.4) 211.8 33.1 481.3 28.0 295.2 333.3 (0.7) (8.7) $ 1,348.9 Other operating expense (income) 25.1 (0.3) 7.8 (10.9) 17.0 (8.9) 46.4 (0.9) 33.2 108.5 Exploration and business development 3.4 4.8 12.6 — 0.1 23.0 1.8 8.0 59.8 113.5 General and administrative — — — — — — — — 135.8 135.8 Operating earnings (loss) $ (52.9) 207.3 12.7 492.2 10.9 281.1 285.1 (7.8) (237.5) $ 991.1 Other income - net 72.6 Equity in earnings of joint ventures 0.1 Finance income 7.9 Finance expense (107.9) Earnings before tax $ 963.8 Non-operating Operating segments segments (a) Round Bald Corporate and Year ended December 31, 2018: Fort Knox Mountain Mountain Paracatu Maricunga Kupol Tasiast Chirano other (b) Total Revenue Metal sales $ 325.5 483.9 403.9 663.1 113.6 627.7 307.8 286.0 1.1 $ 3,212.6 Cost of sales Production cost of sales 277.6 174.1 430.5 65.7 288.2 237.3 172.7 — 1,860.5 Depreciation, depletion and amortization 109.7 51.0 99.7 148.9 4.0 133.5 95.5 123.8 6.3 772.4 Total cost of sales 324.1 328.6 273.8 579.4 69.7 421.7 332.8 296.5 6.3 2,632.9 Gross profit (loss) $ 155.3 130.1 83.7 43.9 206.0 (25.0) (10.5) (5.2) $ 579.7 Other operating expense (income) 38.2 — 7.9 13.8 (1.3) (0.4) 52.4 (10.3) 36.7 137.0 Exploration and business development 4.7 1.2 11.5 — 0.1 19.2 8.5 6.0 58.0 109.2 General and administrative — — — — — — — — 133.0 133.0 Operating earnings (loss) $ (41.5) 154.1 110.7 69.9 45.1 187.2 (85.9) (6.2) (232.9) $ 200.5 Other income - net 3.2 Equity in losses of joint ventures (0.3) Finance income 11.0 Finance expense (101.2) Earnings before tax $ 113.2 Non-operating Operating segments segments (a) Round Bald Corporate and Fort Knox Mountain Mountain Paracatu Maricunga Kupol Tasiast Chirano other (b) Total Property, plant and equipment at: December 31, 2019 $ 421.1 653.7 685.1 1,748.1 40.6 332.8 1,924.8 152.9 380.9 $ 6,340.0 Total assets at: December 31, 2019 $ 633.2 846.8 862.5 2,024.0 58.5 1,053.4 2,312.5 255.0 1,030.1 $ 9,076.0 Capital expenditures for year ended December 31, 2019 (c) $ 149.3 241.5 249.3 113.5 — 39.7 370.5 16.4 27.1 $ 1,207.3 Non-operating Operating segments segments (a) Round Bald Corporate and Fort Knox Mountain Mountain Paracatu Maricunga Kupol Tasiast Chirano other (b) Total Property, plant and equipment at: December 31, 2018 $ 363.3 433.9 513.5 1,585.8 39.5 418.4 1,591.6 232.2 340.9 $ 5,519.1 Total assets at: December 31, 2018 $ 590.1 583.9 686.1 1,832.8 126.6 1,054.9 1,940.6 334.0 914.8 $ 8,063.8 Capital expenditures for year ended December 31, 2018 (c) $ 95.1 196.5 161.1 96.0 — 63.6 454.7 25.5 5.8 $ 1,098.3 (a) Non-operating segments include development properties. (b) Corporate and other includes corporate, shutdown and other non-operating assets (including Kettle River-Buckhorn, La Coipa and Lobo-Marte). (c) Segment capital expenditures are presented on an accrual basis. Additions to property, plant and equipment in the consolidated statements of cash flows are presented on a cash basis. |
Schedule of metal sales and plant and equipment by geographic region | Metal sales Property, plant and equipment Years ended December 31, As at December 31, 2019 2018 2019 2018 Geographic information (a) United States $ 1,031.0 $ 1,214.4 $ 1,765.0 $ 1,315.6 Russian Federation 734.4 627.7 337.4 423.9 Brazil 856.3 663.1 1,749.3 1,585.5 Chile 61.2 113.6 394.1 358.2 Mauritania 532.8 307.8 1,932.4 1,594.8 Ghana 281.6 286.0 161.8 241.1 Total $ 3,497.3 $ 3,212.6 $ 6,340.0 $ 5,519.1 (a) Geographic location is determined based on location of the mining assets. |
Schedule of significant customers | Round Bald Corporate Year ended December 31, 2019: Fort Knox Mountain Mountain Paracatu Maricunga Kupol Tasiast Chirano and other Total Customer 1 $ 11.3 56.3 17.0 59.4 0.7 145.4 175.5 51.7 — 517.3 2 31.5 49.0 40.4 76.8 8.0 55.8 78.5 57.8 — 397.8 3 24.2 14.5 16.7 181.1 4.1 — 66.6 47.8 — 355.0 $ 1,270.1 % of total metal sales 36.3 % Round Bald Corporate Year ended December 31, 2018: Fort Knox Mountain Mountain Paracatu Maricunga Kupol Tasiast Chirano and other Total Customer 1 $ 38.4 96.2 70.4 46.2 18.1 — 119.4 116.4 — 505.1 2 — — — — — 376.3 — — — 376.3 3 56.1 38.8 19.8 75.3 38.7 — 75.5 56.6 — 360.8 4 17.5 5.6 3.6 186.4 5.5 — 62.0 71.3 — 351.9 $ 1,594.1 % of total metal sales 49.6 % |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
RELATED PARTY TRANSACTIONS | |
Schedule of compensation of key management personnel | Years ended December 31, 2019 2018 Cash compensation - Salaries, short-term incentives, and other benefits $ 7.3 $ 8.6 Long-term incentives, including share-based payments 8.5 9.3 Termination and post-retirement benefits 10.2 — Total compensation paid to key management personnel $ 26.0 $ 17.9 |
CONSOLIDATING FINANCIAL STATE_2
CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
CONSOLIDATING FINANCIAL STATEMENTS | |
Schedule of consolidating balance sheet | Consolidating balance sheet as at December 31, 2019 Guarantors Kinross Gold Guarantor Guarantor Total Non- Corp. Subsidiaries Adjustments Guarantors guarantors Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 124.9 $ 119.5 $ — $ 244.4 $ 330.7 $ — $ 575.1 Restricted cash — 6.6 — 6.6 8.6 — 15.2 Accounts receivable and other assets 6.7 57.1 — 63.8 66.4 — 130.2 Intercompany receivables 601.5 1,231.0 (317.0) 1,515.5 4,406.6 (5,922.1) — Current income tax recoverable — 0.7 — 0.7 42.5 — 43.2 Inventories 3.4 507.1 — 510.5 543.3 — 1,053.8 Unrealized fair value of derivative assets 3.9 0.5 — 4.4 2.8 — 7.2 740.4 1,922.5 (317.0) 2,345.9 5,400.9 (5,922.1) $ 1,824.7 Non-current assets Property, plant and equipment 77.8 3,497.3 — 3,575.1 2,764.9 — 6,340.0 Goodwill — 158.8 — 158.8 — — 158.8 Long-term investments 116.5 — — 116.5 9.7 — 126.2 Investments in joint venture — — — — 18.4 — 18.4 Intercompany investments 4,354.0 4,497.2 (7,127.1) 1,724.1 15,342.4 (17,066.5) — Unrealized fair value of derivative assets 1.8 1.7 — 3.5 1.0 — 4.5 Other long-term assets 15.4 164.8 — 180.2 388.0 — 568.2 Long-term intercompany receivables 3,215.1 1,964.7 (1,759.8) 3,420.0 3,500.3 (6,920.3) — Deferred tax assets — — — — 35.2 — 35.2 Total assets $ 8,521.0 $ 12,207.0 $ (9,203.9) $ 11,524.1 $ 27,460.8 $ (29,908.9) $ 9,076.0 Liabilities Current liabilities Accounts payable and accrued liabilities $ 89.1 $ 208.7 $ — $ 297.8 $ 171.5 $ — $ 469.3 Intercompany payables 123.0 858.1 (317.0) 664.1 5,258.0 (5,922.1) — Current income tax payable — 65.4 — 65.4 2.6 — 68.0 Current portion of provisions — 25.7 — 25.7 32.2 — 57.9 Other current liabilities 2.6 10.8 — 13.4 6.9 — 20.3 214.7 1,168.7 (317.0) 1,066.4 5,471.2 (5,922.1) 615.5 Non-current liabilities Long-term debt and credit facilities 1,837.4 — — 1,837.4 — — 1,837.4 Provisions 11.4 448.4 — 459.8 378.8 — 838.6 Long-term lease liabilities 18.4 11.5 — 29.9 9.0 — 38.9 Unrealized fair value of derivative liabilities 0.3 — — 0.3 0.5 — 0.8 Other long-term liabilities — 45.0 — 45.0 62.7 — 107.7 Long-term intercompany payables 1,120.3 3,141.7 (1,759.8) 2,502.2 4,418.1 (6,920.3) — Deferred tax liabilities — 264.6 — 264.6 39.9 — 304.5 Total liabilities 3,202.5 5,079.9 (2,076.8) 6,205.6 10,380.2 (12,842.4) 3,743.4 Equity Common shareholders’ equity Common share capital $ 14,926.2 $ 1,795.3 $ (1,795.3) $ 14,926.2 $ 19,276.8 $ (19,276.8) $ 14,926.2 Contributed surplus 242.1 3,476.0 (3,476.0) 242.1 6,556.0 (6,556.0) 242.1 Accumulated deficit (9,829.4) 1,875.3 (1,875.3) (9,829.4) (8,712.2) 8,712.2 (9,829.4) Accumulated other comprehensive income (loss) (20.4) (19.5) 19.5 (20.4) (54.1) 54.1 (20.4) Total common shareholders’ equity 5,318.5 7,127.1 (7,127.1) 5,318.5 17,066.5 (17,066.5) 5,318.5 Non-controlling interest — — — — 14.1 — 14.1 Total equity 5,318.5 7,127.1 (7,127.1) 5,318.5 17,080.6 (17,066.5) 5,332.6 Total liabilities and equity $ 8,521.0 $ 12,207.0 $ (9,203.9) $ 11,524.1 $ 27,460.8 $ (29,908.9) $ 9,076.0 Consolidating balance sheet as at December 31, 2018 Guarantors Kinross Gold Guarantor Guarantor Total Non- Corp. Subsidiaries Adjustments Guarantors guarantors Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 29.7 $ 103.8 $ — $ 133.5 $ 215.5 $ — $ 349.0 Restricted cash — 6.2 — 6.2 6.5 — 12.7 Accounts receivable and other assets 9.7 30.4 — 40.1 61.3 — 101.4 Intercompany receivables 558.9 1,098.0 (275.8) 1,381.1 4,283.2 (5,664.3) — Current income tax recoverable — 2.3 — 2.3 76.7 — 79.0 Inventories 2.6 478.3 — 480.9 571.1 — 1,052.0 Unrealized fair value of derivative assets 3.3 0.5 — 3.8 — — 3.8 604.2 1,719.5 (275.8) 2,047.9 5,214.3 (5,664.3) 1,597.9 Non-current assets Property, plant and equipment 31.5 2,931.4 — 2,962.9 2,556.2 — 5,519.1 Goodwill — 158.8 — 158.8 3.9 — 162.7 Long-term investments 145.9 — — 145.9 10.0 — 155.9 Investments in joint ventures — — — — 18.3 — 18.3 Intercompany investments 3,557.8 3,983.5 (6,213.0) 1,328.3 15,167.0 (16,495.3) — Unrealized fair value of derivative assets — 0.8 — 0.8 — — 0.8 Other long-term assets 11.7 187.3 — 199.0 365.1 — 564.1 Long-term intercompany receivables 3,215.3 2,421.7 (1,981.0) 3,656.0 3,576.0 (7,232.0) — Deferred tax assets — — — — 45.0 — 45.0 Total assets $ 7,566.4 $ 11,403.0 $ (8,469.8) $ 10,499.6 $ 26,955.8 $ (29,391.6) $ 8,063.8 Liabilities Current liabilities Accounts payable and accrued liabilities $ 74.5 $ 207.9 $ — $ 282.4 $ 183.5 $ — $ 465.9 Intercompany payables 131.0 687.3 (275.8) 542.5 5,121.8 (5,664.3) — Current income tax payable — 14.1 — 14.1 7.6 — 21.7 Current portion of provisions — 23.6 — 23.6 49.0 — 72.6 Other current liabilities 7.1 12.3 — 19.4 32.8 — 52.2 212.6 945.2 (275.8) 882.0 5,394.7 (5,664.3) 612.4 Non-current liabilities Long-term debt and credit facilities 1,735.0 — — 1,735.0 — — 1,735.0 Provisions 10.9 403.0 — 413.9 402.5 — 816.4 Long-term lease liabilities — — — — — — — Unrealized fair value of derivative liabilities 3.9 3.6 — 7.5 2.1 — 9.6 Other long-term liabilities — 54.7 — 54.7 43.2 — 97.9 Long-term intercompany payables 1,097.3 3,589.4 (1,981.0) 2,705.7 4,526.3 (7,232.0) — Deferred tax liabilities — 194.1 — 194.1 71.1 — 265.2 Total liabilities 3,059.7 5,190.0 (2,256.8) 5,992.9 10,439.9 (12,896.3) 3,536.5 Equity Common shareholders’ equity Common share capital $ 14,913.4 $ 1,795.3 $ (1,795.3) $ 14,913.4 $ 19,217.6 $ (19,217.6) $ 14,913.4 Contributed surplus 239.8 3,442.6 (3,442.6) 239.8 6,415.6 (6,415.6) 239.8 Accumulated deficit (10,548.0) 1,001.6 (1,001.6) (10,548.0) (9,078.2) 9,078.2 (10,548.0) Accumulated other comprehensive income (loss) (98.5) (26.5) 26.5 (98.5) (59.7) 59.7 (98.5) Total common shareholders’ equity 4,506.7 6,213.0 (6,213.0) 4,506.7 16,495.3 (16,495.3) 4,506.7 Non-controlling interest — — — — 20.6 — 20.6 Total equity 4,506.7 6,213.0 (6,213.0) 4,506.7 16,515.9 (16,495.3) 4,527.3 Total liabilities and equity $ 7,566.4 $ 11,403.0 $ (8,469.8) $ 10,499.6 $ 26,955.8 $ (29,391.6) $ 8,063.8 |
Schedule of consolidating statement of operations | Consolidating statement of operations for the year ended December 31, 2019 Guarantors Kinross Gold Guarantor Guarantor Total Non- Corp. Subsidiaries Adjustments Guarantors guarantors Eliminations Consolidated Revenue Metal sales $ 1,892.0 $ 1,848.0 $ (1,794.7) $ 1,945.3 $ 1,552.0 $ — $ 3,497.3 Cost of sales Production cost of sales 1,857.5 1,009.8 (1,794.5) 1,072.8 706.1 — 1,778.9 Depreciation, depletion and amortization 3.3 373.7 (0.2) 376.8 354.5 — 731.3 Reversals of impairment charges — (200.7) — (200.7) (161.1) — (361.8) Total cost of sales 1,860.8 1,182.8 (1,794.7) 1,248.9 899.5 — 2,148.4 Gross profit 31.2 665.2 — 696.4 652.5 — 1,348.9 Other operating expense 18.0 21.6 — 39.6 68.9 — 108.5 Exploration and business development 29.6 20.8 — 50.4 63.1 — 113.5 General and administrative 86.1 4.7 — 90.8 45.0 — 135.8 Operating earnings (loss) (102.5) 618.1 — 515.6 475.5 — 991.1 Other income (expense) - net 33.0 2.1 — 35.1 249.2 (211.7) 72.6 Equity in earnings (losses) of joint ventures and intercompany investments 767.1 390.5 (824.4) 333.2 0.1 (333.2) 0.1 Finance income 83.5 57.1 (7.2) 133.4 89.7 (215.2) 7.9 Finance expense (63.7) (75.0) 7.2 (131.5) (191.6) 215.2 (107.9) Earnings (loss) before tax 717.4 992.8 (824.4) 885.8 622.9 (544.9) 963.8 Income tax (expense) recovery - net 1.2 (168.4) — (167.2) (79.5) — (246.7) Net earnings (loss) $ 718.6 $ 824.4 $ (824.4) $ 718.6 $ 543.4 $ (544.9) $ 717.1 Net earnings (loss) attributable to: Non-controlling interest $ — $ — $ — $ — $ (1.5) $ — $ (1.5) Common shareholders $ 718.6 $ 824.4 $ (824.4) $ 718.6 $ 544.9 $ (544.9) $ 718.6 Consolidating statement of operations for the year ended December 31, 2018 Guarantors Kinross Gold Guarantor Guarantor Total Non- Corp. Subsidiaries Adjustments Guarantors guarantors Eliminations Consolidated Revenue Metal sales $ 1,936.0 $ 1,837.2 $ (1,784.0) $ 1,989.2 $ 1,223.4 $ — $ 3,212.6 Cost of sales Production cost of sales 1,897.7 1,091.6 (1,784.0) 1,205.3 655.2 — 1,860.5 Depreciation, depletion and amortization 3.7 409.3 — 413.0 359.4 — 772.4 Reversals of impairment charges — — — — — — — Total cost of sales 1,901.4 1,500.9 (1,784.0) 1,618.3 1,014.6 — 2,632.9 Gross profit 34.6 336.3 — 370.9 208.8 — 579.7 Other operating expense 7.6 59.9 — 67.5 69.5 — 137.0 Exploration and business development 26.1 17.4 — 43.5 65.7 — 109.2 General and administrative 76.0 4.5 — 80.5 52.5 — 133.0 Operating earnings (loss) (75.1) 254.5 — 179.4 21.1 — 200.5 Other income (expense) - net 12.9 (57.9) — (45.0) 460.1 (411.9) 3.2 Equity in earnings (losses) of joint ventures, associate and intercompany investments 41.4 1.0 (78.1) (35.7) 0.1 35.3 (0.3) Finance income 64.7 59.8 (8.1) 116.4 123.0 (228.4) 11.0 Finance expense (64.6) (104.5) 8.1 (161.0) (168.6) 228.4 (101.2) Earnings (loss) before tax (20.7) 152.9 (78.1) 54.1 435.7 (376.6) 113.2 Income tax (expense) recovery - net (2.9) (74.8) — (77.7) (61.1) — (138.8) Net earnings (loss) $ (23.6) $ 78.1 $ (78.1) $ (23.6) $ 374.6 $ (376.6) $ (25.6) Net earnings (loss) attributable to: Non-controlling interest $ — $ — $ — $ — $ (2.0) $ — $ (2.0) Common shareholders $ (23.6) $ 78.1 $ (78.1) $ (23.6) $ 376.6 $ (376.6) $ (23.6) |
Schedule of consolidating statement of comprehensive income (loss) | Consolidating statement of comprehensive income (loss) for the year ended December 31, 2019 Guarantors Kinross Gold Guarantor Guarantor Total Non- Corp. Subsidiaries Adjustments Guarantors guarantors Eliminations Consolidated Net earnings (loss) $ 718.6 $ 824.4 $ (824.4) $ 718.6 $ 543.4 $ (544.9) $ 717.1 Other comprehensive income (loss), net of tax: Items that will not be reclassified to profit or loss: Equity investments at fair value through other comprehensive income ("FVOCI") - net change in fair value (a) 49.6 — — 49.6 (0.6) — 49.0 Items that are or may be reclassified to profit or loss in subsequent periods: Cash flow hedges - effective portion of changes in fair value (b) 14.2 9.4 — 23.6 — — 23.6 Cash flow hedges - reclassified to profit or loss (c) (0.3) 5.8 — 5.5 — — 5.5 63.5 15.2 — 78.7 (0.6) — 78.1 Equity in other comprehensive income (loss) of intercompany investments 14.6 — (15.2) (0.6) — 0.6 — Total comprehensive income (loss) $ 796.7 $ 839.6 $ (839.6) $ 796.7 $ 542.8 $ (544.3) $ 795.2 Attributable to non-controlling interest $ — $ — $ — $ — $ (1.5) $ — $ (1.5) Attributable to common shareholders $ 796.7 $ 839.6 $ (839.6) $ 796.7 $ 544.3 $ (544.3) $ 796.7 (a) Net of tax of $ — $ — $ — $ — $ 0.3 $ — $ 0.3 (b) Net of tax of $ 1.3 $ 3.2 $ — $ 4.5 $ — $ — $ 4.5 (c) Net of tax of $ (0.1) $ 3.3 $ — $ 3.2 $ — $ — $ 3.2 Consolidating statement of comprehensive income (loss) for the year ended December 31, 2018 Guarantors Kinross Gold Guarantor Guarantor Total Non- Corp. Subsidiaries Adjustments Guarantors guarantors Eliminations Consolidated Net earnings (loss) $ (23.6) $ 78.1 $ (78.1) $ (23.6) $ 374.6 $ (376.6) $ (25.6) Other comprehensive income (loss), net of tax: Items that will not be reclassified to profit or loss: Equity investments at fair value through other comprehensive income ("FVOCI") - net change in fair value (a) (24.2) — — (24.2) (1.6) — (25.8) Items that are or may be reclassified to profit or loss in subsequent periods: Cash flow hedges - effective portion of changes in fair value (b) (12.1) (35.8) — (47.9) — — (47.9) Cash flow hedges - reclassified to profit or loss (c) (6.7) (2.4) — (9.1) — — (9.1) (43.0) (38.2) — (81.2) (1.6) — (82.8) Equity in other comprehensive income (loss) of intercompany investments (39.8) — 38.2 (1.6) — 1.6 — Total comprehensive income (loss) $ (106.4) $ 39.9 $ (39.9) $ (106.4) $ 373.0 $ (375.0) $ (108.4) Attributable to non-controlling interest $ — $ — $ — $ — $ (2.0) $ — $ (2.0) Attributable to common shareholders $ (106.4) $ 39.9 $ (39.9) $ (106.4) $ 375.0 $ (375.0) $ (106.4) (a) Net of tax of $ — $ — $ — $ — $ (0.3) $ — $ (0.3) (b) Net of tax of $ (3.0) $ (17.9) $ — $ (20.9) $ — $ — $ (20.9) (c) Net of tax of $ — $ 0.2 $ — $ 0.2 $ — $ — $ 0.2 |
Schedule of consolidating statement of cash flows | Consolidating statement of cash flows for the year ended December 31, 2019 Guarantors Kinross Gold Guarantor Guarantor Total Non- Corp. Subsidiaries Adjustments Guarantors guarantors Eliminations Consolidated Net inflow (outflow) of cash related to the following activities: Operating: Net earnings (loss) $ 718.6 $ 824.4 $ (824.4) $ 718.6 $ 543.4 $ (544.9) $ 717.1 Adjustments to reconcile net earnings (loss) to net cash provided from (used in) operating activities: Depreciation, depletion and amortization 3.3 373.7 (0.2) 376.8 354.5 — 731.3 Gain on disposition of associate and other interests - net — — — — — — — Reversals of impairment charges — (200.7) — (200.7) (161.1) — (361.8) Equity in (earnings) losses of joint ventures and intercompany investments (767.1) (390.5) 824.4 (333.2) (0.1) 333.2 (0.1) Share-based compensation expense 14.3 — — 14.3 — — 14.3 Finance expense 63.7 75.0 (7.2) 131.5 191.6 (215.2) 107.9 Deferred tax expense (recovery) (1.2) 65.8 — 64.6 (23.5) — 41.1 Foreign exchange (gains) losses and other (9.8) (10.4) — (20.2) (32.9) — (53.1) Reclamation recovery — — — (11.9) — (11.9) Changes in operating assets and liabilities: Accounts receivable and other assets (1.2) (14.4) — (15.6) (48.9) — (64.5) Inventories (0.8) 12.6 0.2 12.0 41.8 — 53.8 Accounts payable and accrued liabilities 4.1 80.3 — 84.4 81.5 — 165.9 Cash flow provided from (used in) operating activities 23.9 815.8 (7.2) 832.5 934.4 (426.9) 1,340.0 Income taxes recovered (paid) — (57.0) — (57.0) (58.1) — (115.1) Net cash flow provided from (used in) operating activities 23.9 758.8 (7.2) 775.5 876.3 (426.9) 1,224.9 Investing: Additions to property, plant and equipment (30.7) (696.4) — (727.1) (378.1) — (1,105.2) Acquisitions — — — — (30.0) — (30.0) Net proceeds from the sale of (additions to) long-term investments and other assets 126.8 (22.6) — 104.2 (32.6) — 71.6 Net proceeds from the sale of property, plant and equipment 12.0 0.3 — 12.3 19.6 — 31.9 Increase in restricted cash — (0.4) — (0.4) (2.1) — (2.5) Interest received and other - net 0.5 1.6 — 2.1 5.5 — 7.6 Net cash flow provided from (used in) investing activities 108.6 (717.5) — (608.9) (417.7) — (1,026.6) Financing: Proceeds from draw down of debt 300.0 — — 300.0 — — 300.0 Repayment of debt (200.0) — — (200.0) — — (200.0) Payment of lease liabilities (2.0) (8.6) — (10.6) (3.7) — (14.3) Interest paid (55.6) — — (55.6) — — (55.6) Dividends received from (paid to) common shareholders and subsidiaries — (22.3) — (22.3) (189.4) 211.7 — Dividend paid to non-controlling interest — — — — (5.0) — (5.0) Intercompany advances (83.6) 5.3 7.2 (71.1) (144.1) 215.2 — Other - net 3.9 — — 3.9 (3.9) — — Net cash flow provided from (used in) financing activities (37.3) (25.6) 7.2 (55.7) (346.1) 426.9 25.1 Effect of exchange rate changes on cash and cash equivalents — — — — 2.7 — 2.7 Increase (decrease) in cash and cash equivalents 95.2 15.7 — 110.9 115.2 — 226.1 Cash and cash equivalents, beginning of period 29.7 103.8 — 133.5 215.5 — 349.0 Cash and cash equivalents, end of period $ 124.9 $ 119.5 $ — $ 244.4 $ 330.7 $ — $ 575.1 Consolidating statement of cash flows for the year ended December 31, 2018 Guarantors Kinross Gold Guarantor Guarantor Total Non- Corp. Subsidiaries Adjustments Guarantors guarantors Eliminations Consolidated Net inflow (outflow) of cash related to the following activities: Operating: Net earnings (loss) $ (23.6) $ 78.1 $ (78.1) $ (23.6) $ 374.6 $ (376.6) $ (25.6) Adjustments to reconcile net earnings (loss) to net cash provided from (used in) operating activities: Depreciation, depletion and amortization 3.7 409.3 — 413.0 359.4 — 772.4 Gain on disposition of associate and other interests - net — — — — (2.1) — (2.1) Reversals of impairment charges — — — — — — — Equity in (earnings) losses of joint ventures and intercompany investments (41.4) (1.0) 78.1 35.7 (0.1) (35.3) 0.3 Share-based compensation expense 14.6 — — 14.6 — — 14.6 Finance expense 64.6 104.5 (8.1) 161.0 168.6 (228.4) 101.2 Deferred tax expense (recovery) 3.0 42.0 — 45.0 (36.1) — 8.9 Foreign exchange (gains) losses and other 5.4 (8.4) — (3.0) 15.5 — 12.5 Reclamation recovery — — — (8.0) — (8.0) Changes in operating assets and liabilities: Accounts receivable and other assets (1.6) 7.9 — 6.3 (29.0) — (22.7) Inventories (0.5) 18.0 — 17.5 (23.2) — (5.7) Accounts payable and accrued liabilities (23.9) 12.8 — (11.1) 80.9 — 69.8 Cash flow provided from (used in) operating activities 0.3 663.2 (8.1) 655.4 900.5 (640.3) 915.6 Income taxes recovered (paid) 0.1 (28.5) — (28.4) (98.5) — (126.9) Net cash flow provided from (used in) operating activities 0.4 634.7 (8.1) 627.0 802.0 (640.3) 788.7 Investing: Additions to property, plant and equipment (7.4) (523.7) — (531.1) (512.3) — (1,043.4) Acquisitions — (269.2) — (269.2) (35.0) — (304.2) Net proceeds from the sale of (additions to) long-term investments and other assets 10.7 (23.5) — (12.8) (40.1) — (52.9) Net proceeds from the sale of property, plant and equipment — 0.5 — 0.5 5.9 — 6.4 Increase in restricted cash — (0.6) — (0.6) — — (0.6) Interest received and other - net 2.2 1.4 — 3.6 4.1 — 7.7 Net cash flow provided from (used in) from investing activities 5.5 (815.1) — (809.6) (577.4) — (1,387.0) Financing: Proceeds from draw down of debt 80.0 — — 80.0 — — 80.0 Repayment of debt (80.0) — — (80.0) — — (80.0) Payment of lease liabilities — — — — — — — Interest paid (57.9) — — (57.9) — — (57.9) Dividends received from (paid to) common shareholders and subsidiaries 0.1 0.4 — 0.5 (412.4) 411.9 — Dividend paid to non-controlling interest — — — — (13.0) — (13.0) Intercompany advances (185.1) 161.1 8.1 (15.9) (212.5) 228.4 — Other - net (0.9) — — (0.9) (0.8) — (1.7) Net cash flow provided from (used in) financing activities (243.8) 161.5 8.1 (74.2) (638.7) 640.3 (72.6) Effect of exchange rate changes on cash and cash equivalents — — — — (5.9) — (5.9) Increase (decrease) in cash and cash equivalents (237.9) (18.9) — (256.8) (420.0) — (676.8) Cash and cash equivalents, beginning of period 267.6 122.7 — 390.3 635.5 — 1,025.8 Cash and cash equivalents, end of period $ 29.7 $ 103.8 $ — $ 133.5 $ 215.5 $ — $ 349.0 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Principles of consolidation (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Puren | ||
Principles of consolidation | ||
Ownership interest in joint venture | 65.00% | 65.00% |
Fairbanks Gold Mining, Inc. | ||
Principles of consolidation | ||
Ownership interest in subsidiary | 100.00% | 100.00% |
KBM | ||
Principles of consolidation | ||
Ownership interest in subsidiary | 100.00% | 100.00% |
CMM | ||
Principles of consolidation | ||
Ownership interest in subsidiary | 100.00% | 100.00% |
MDO | ||
Principles of consolidation | ||
Ownership interest in subsidiary | 100.00% | 100.00% |
Echo Bay Minerals Company | ||
Principles of consolidation | ||
Ownership interest in subsidiary | 100.00% | 100.00% |
Chukotka Mining and Geological Company | ||
Principles of consolidation | ||
Ownership interest in subsidiary | 100.00% | 100.00% |
Northern Gold LLC | ||
Principles of consolidation | ||
Ownership interest in subsidiary | 100.00% | 100.00% |
Tasiast Mauritanie Ltd. S.A. | ||
Principles of consolidation | ||
Ownership interest in subsidiary | 100.00% | 100.00% |
Chirano Gold Mines Ltd. | ||
Principles of consolidation | ||
Ownership interest in subsidiary | 90.00% | 90.00% |
Chirano Gold Mines Ltd. | Ghana | ||
Principles of consolidation | ||
Ownership interest non controlling interest | 10.00% | 10.00% |
KGBM | ||
Principles of consolidation | ||
Ownership interest in subsidiary | 100.00% | 100.00% |
Round Mountain Gold Corporation/KG Mining (Round Mountain) Inc. | ||
Principles of consolidation | ||
Ownership interest in subsidiary | 100.00% | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Depreciation, depletion and amortization (Details) - Mobile and other equipment | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Property, plant and equipment | |
Useful life (in years) | 2 years |
Maximum | |
Property, plant and equipment | |
Useful life (in years) | 10 years |
CHANGES IN SIGNIFICANT ACCOUN_3
CHANGES IN SIGNIFICANT ACCOUNTING POLICIES - Transition to IFRS 16 (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Changes in accounting policies | |||
Property, plant and equipment | $ 6,340 | $ 5,519.1 | |
Right-of-use assets | 54.1 | ||
Current portion of lease liabilities | 16 | $ 7.3 | |
Long-term lease liabilities | $ 38.9 | 35.6 | |
Property, plant and equipment | |||
Changes in accounting policies | |||
Right-of-use assets | 5,562 | $ 5,519.1 | |
IFRS 16 | |||
Changes in accounting policies | |||
Right-of-use assets | 42.9 | ||
Current portion of lease liabilities | 7.3 | ||
Long-term lease liabilities | 35.6 | ||
IFRS 16 | Property, plant and equipment | |||
Changes in accounting policies | |||
Right-of-use assets | $ 42.9 |
CHANGES IN SIGNIFICANT ACCOUN_4
CHANGES IN SIGNIFICANT ACCOUNTING POLICIES - Lease liabilities recognized (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Lease liabilities | |||
IFRS 16 recognition exemption for short term lease | $ (23.7) | ||
Leases with variable lease payments | $ (23.3) | ||
Incremental borrowing rate applied | 7.04% | ||
IFRS 16 | |||
Lease liabilities | |||
Operating lease commitments | $ 70.3 | ||
Discounted | $ 53.7 | ||
IFRS 16 recognition exemption for short term lease | (4.3) | ||
Leases with extension option resonably certain to be exercised | 2.1 | ||
Leases with variable lease payments | (15.2) | ||
Other adjusting items | 6.6 | ||
Total lease liabilities | $ 42.9 |
CHANGES IN SIGNIFICANT ACCOUN_5
CHANGES IN SIGNIFICANT ACCOUNTING POLICIES - Expensed lease payments (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
CHANGES IN SIGNIFICANT ACCOUNTING POLICIES | |
Lease with a term of 12 months or less | $ 23.7 |
Leases of assets with underlying value, when new, of $5,000 or less | 0.4 |
Leases with variable lease payments | 23.3 |
Total lease payments that have been expensed | $ 47.4 |
CHANGES IN SIGNIFICANT ACCOUN_6
CHANGES IN SIGNIFICANT ACCOUNTING POLICIES - Total undiscounted lease liability maturities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Disclosure of maturity analysis of operating lease payments | |
Total undiscounted lease liability maturities | $ 65.4 |
2020 | |
Disclosure of maturity analysis of operating lease payments | |
Total undiscounted lease liability maturities | 16 |
2021-2024 | |
Disclosure of maturity analysis of operating lease payments | |
Total undiscounted lease liability maturities | 31.7 |
2025+ | |
Disclosure of maturity analysis of operating lease payments | |
Total undiscounted lease liability maturities | $ 17.7 |
SIGNIFICANT JUDGMENTS, ESTIMA_2
SIGNIFICANT JUDGMENTS, ESTIMATES AND ASSUMPTIONS (Details) | 12 Months Ended | |
Dec. 31, 2019$ / oz$ / bbl | Dec. 31, 2018$ / oz$ / bbl | |
Estimated short-term and long-term prices of gold | $ / oz | 1,400 | 1,300 |
Estimated short-term and long-term prices of silver | $ / oz | 17.50 | 18 |
Estimated short-term and long-term oil prices | 60 | |
Estimated short-term oil price | 65 | |
Estimated long-term oil price | 55 | |
Minimum | ||
Cash flow projection, term | 3 years | |
Minimum | CGU | ||
Real discount rate | 3.33% | 4.86% |
NAV multiples observed | 0.80% | 0.90% |
Maximum | ||
Cash flow projection, term | 18 years | |
Maximum | CGU | ||
Real discount rate | 6.97% | 7.12% |
NAV multiples observed | 1.70% | 1.40% |
ACQUISITIONS - Chulbatkan (Deta
ACQUISITIONS - Chulbatkan (Details) oz in Thousands, $ in Millions | Jan. 16, 2020USD ($) | Jul. 31, 2019USD ($)oz$ / oz | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Acquisitions and Dispositions | ||||
Cash consideration paid | $ 30 | $ 304.2 | ||
Chulbatkan | ||||
Acquisitions and Dispositions | ||||
Consideration | $ 283 | |||
Net Smelter Return | 1.50% | |||
Future proven and probable reserves per ounce | $ / oz | 50 | |||
Declared proven and probable ounces | oz | 3,250 | |||
Buyback right (as percent of smelter return) | 0.33% | |||
Right to buyback royalty | $ 10 | |||
Period for buyback | 24 months | |||
Cash consideration paid | $ 141.5 | |||
Percentage of consideration paid in first installment | 50.00% | |||
Final installment which can be paid in shares | $ 141.5 | |||
Chulbatkan | Minimum | ||||
Acquisitions and Dispositions | ||||
Final installment which can paid in shares (as percent) | 60.00% | |||
Chulbatkan | Maximum | ||||
Acquisitions and Dispositions | ||||
Final installment which can paid in shares (as percent) | 100.00% |
ACQUISITIONS - Disposition of r
ACQUISITIONS - Disposition of royalty portfolio (Details) - USD ($) shares in Millions, $ in Millions | Dec. 19, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Acquisitions and Dispositions | |||
Gain (loss) on disposals | $ 70.4 | $ (0.8) | |
Maverix | |||
Acquisitions and Dispositions | |||
Total consideration | $ 73.9 | ||
Total consideration in cash | $ 25 | ||
Total consideration in shares | 11.2 | ||
Consideration shares (percent of outstanding counterparty shares) | 9.40% | ||
Gain (loss) on disposals | $ 72.7 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) R$ in Millions, $ in Millions | Jan. 30, 2019USD ($) | Oct. 02, 2018USD ($) | Mar. 19, 2018USD ($) | Feb. 14, 2018USD ($)Plant | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 14, 2018BRL (R$) | Feb. 14, 2018USD ($) |
Acquisitions and Dispositions | ||||||||
Cash consideration paid | $ 30 | $ 304.2 | ||||||
Cost | ||||||||
Acquisitions and Dispositions | ||||||||
Acquisitions | 339.9 | |||||||
Development and operating properties | Cost | ||||||||
Acquisitions and Dispositions | ||||||||
Acquisitions | 65.1 | |||||||
Land, plant and equipment | ||||||||
Acquisitions and Dispositions | ||||||||
Acquisitions | $ 65.1 | |||||||
Land, plant and equipment | Cost | ||||||||
Acquisitions and Dispositions | ||||||||
Acquisitions | $ 274.8 | |||||||
MDO | La Coipa Phase 7 mining concessions | ||||||||
Acquisitions and Dispositions | ||||||||
Percentage of equity interest acquired | 50.00% | |||||||
Purchase Price | $ 65.1 | |||||||
Cash consideration | 65 | |||||||
Cash consideration paid | $ 30 | 35.1 | ||||||
Transaction costs | $ 0.1 | |||||||
KBM | Subsidiary of Gerdau SA | Brazil | ||||||||
Acquisitions and Dispositions | ||||||||
Hydroelectric power plants acquired | Plant | 2 | |||||||
Purchase Price | R$ 835.0 | $ 253.7 | ||||||
Transaction costs | $ 3.4 | |||||||
KGBM | Bald Mountain Exploration LLC | ||||||||
Acquisitions and Dispositions | ||||||||
Percentage of equity interest acquired | 50.00% | |||||||
Cash consideration | $ 15.5 | |||||||
Royalty obligation (as percent of net smelter) | 1.25% | |||||||
Transaction costs | $ 0.1 |
ACQUISITIONS - Company adjusted
ACQUISITIONS - Company adjusted the preliminary purchase price allocation (Details) $ in Millions | Dec. 31, 2019USD ($) |
Acquisitions and Dispositions | |
Property, plant and equipment | $ 227.1 |
Intangible assets | 27 |
Environmental provisions | (0.4) |
Total purchase price | 253.7 |
Preliminary | |
Acquisitions and Dispositions | |
Property, plant and equipment | 253.7 |
Total purchase price | 253.7 |
Adjustments | |
Acquisitions and Dispositions | |
Property, plant and equipment | (26.6) |
Intangible assets | 27 |
Environmental provisions | $ (0.4) |
CONSOLIDATED FINANCIAL STATEM_3
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Cash and cash equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents: | |||
Cash on hand and balances with banks | $ 305.6 | $ 207.9 | |
Short-term deposits | 269.5 | 141.1 | |
Total cash and cash equivalents | $ 575.1 | $ 349 | $ 1,025.8 |
CONSOLIDATED FINANCIAL STATEM_4
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Restricted Cash (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
CONSOLIDATED FINANCIAL STATEMENT DETAILS | ||
Restricted cash | $ 15.2 | $ 12.7 |
CONSOLIDATED FINANCIAL STATEM_5
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Accounts receivable and other assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts receivable and other assets: | ||
Trade receivables | $ 6.9 | $ 3.6 |
Prepaid expenses | 25.2 | 21.3 |
VAT receivable | 69.6 | 48.4 |
Deposits | 10.5 | 8.5 |
Other | 18 | 19.6 |
Total accounts receivable and other assets | $ 130.2 | $ 101.4 |
CONSOLIDATED FINANCIAL STATEM_6
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventories: | ||
Ore in stockpiles | $ 300.3 | $ 299.9 |
Ore on leach pads | 384.7 | 375 |
In-process | 99.2 | 113.5 |
Finished metal | 52.3 | 50.5 |
Materials and supplies | 520.6 | 540.7 |
Inventories, subtotal | 1,357.1 | 1,379.6 |
Long-term portion of ore in stockpiles and ore on leach pads | (303.3) | (327.6) |
Total inventories | $ 1,053.8 | $ 1,052 |
CONSOLIDATED FINANCIAL STATEM_7
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Property, plant and equipment (Details) - USD ($) $ in Millions | Mar. 19, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | Oct. 02, 2018 |
Property, plant and equipment | |||||
Balance, beginning of period | $ 5,519.1 | ||||
Capitalized interest | 47.4 | $ 41.5 | |||
Balance, end of period | 6,340 | 5,519.1 | |||
Amount included above as at December 31, 2018: | |||||
Assets under construction | 747 | 783.5 | |||
Assets not being depreciated | $ 1,287.6 | $ 1,316.8 | |||
Capitalized interest, weighted average borrowing rate | 5.49% | 5.62% | |||
Right of use assets | $ 54.1 | ||||
Right-of-use assets for lease arrangements entered | 22.7 | ||||
Depreciation for leased right-of-use assets | 11.5 | ||||
MDO | La Coipa Phase 7 mining concessions | |||||
Amount included above as at December 31, 2018: | |||||
Percentage of equity interest acquired | 50.00% | ||||
KGBM | Bald Mountain Exploration LLC | |||||
Amount included above as at December 31, 2018: | |||||
Percentage of equity interest acquired | 50.00% | ||||
Cost | |||||
Property, plant and equipment | |||||
Balance, beginning of period | 18,014.2 | $ 16,701.7 | |||
Additions | 1,274 | 1,086.5 | |||
Acquisitions | 339.9 | ||||
Capitalized interest | 47.4 | 41.5 | |||
Disposals | (69.9) | (157.7) | |||
Other | 3.3 | 2.3 | |||
Balance, end of period | 19,269 | 18,014.2 | |||
Accumulated depreciation, depletion, amortization and impairment | |||||
Property, plant and equipment | |||||
Balance, beginning of period | (12,495.1) | (11,814.5) | |||
Depreciation, depletion and amortization | (853.5) | (825.5) | |||
Reversals of impairment charges | 361.8 | ||||
Disposals | 60.5 | 146.4 | |||
Other | (2.7) | (1.5) | |||
Balance, end of period | (12,929) | (12,495.1) | |||
IFRS 16 | |||||
Amount included above as at December 31, 2018: | |||||
Right of use assets | $ 42.9 | ||||
Land, plant and equipment | |||||
Property, plant and equipment | |||||
Balance, beginning of period | 3,482.1 | ||||
Acquisitions | $ 65.1 | ||||
Balance, end of period | 3,600.9 | 3,482.1 | |||
Amount included above as at December 31, 2018: | |||||
Assets under construction | 308.8 | 495 | |||
Assets not being depreciated | 538.3 | 719.1 | |||
Land, plant and equipment | Cost | |||||
Property, plant and equipment | |||||
Balance, beginning of period | 9,184.2 | 8,374.7 | |||
Additions | 607.5 | 629.4 | |||
Acquisitions | 274.8 | ||||
Capitalized interest | 14.7 | 23.8 | |||
Disposals | (69.9) | (115.7) | |||
Other | (21.5) | (2.8) | |||
Balance, end of period | 9,715 | 9,184.2 | |||
Land, plant and equipment | Accumulated depreciation, depletion, amortization and impairment | |||||
Property, plant and equipment | |||||
Balance, beginning of period | (5,702.1) | (5,308.4) | |||
Depreciation, depletion and amortization | (572.9) | (508.5) | |||
Reversals of impairment charges | 102.4 | ||||
Disposals | 60.5 | 106.5 | |||
Other | (2) | 8.3 | |||
Balance, end of period | (6,114.1) | (5,702.1) | |||
Development and operating properties | |||||
Property, plant and equipment | |||||
Balance, beginning of period | 2,023.6 | ||||
Balance, end of period | 2,725.7 | 2,023.6 | |||
Amount included above as at December 31, 2018: | |||||
Assets under construction | 438.2 | 288.5 | |||
Assets not being depreciated | 735.9 | 584.3 | |||
Development and operating properties | Cost | |||||
Property, plant and equipment | |||||
Balance, beginning of period | 8,816.6 | 8,311.5 | |||
Additions | 666.5 | 457.1 | |||
Acquisitions | 65.1 | ||||
Capitalized interest | 32.7 | 17.7 | |||
Disposals | (39.9) | ||||
Other | 24.8 | 5.1 | |||
Balance, end of period | 9,540.6 | 8,816.6 | |||
Development and operating properties | Accumulated depreciation, depletion, amortization and impairment | |||||
Property, plant and equipment | |||||
Balance, beginning of period | (6,793) | (6,506.1) | |||
Depreciation, depletion and amortization | (280.6) | (317) | |||
Reversals of impairment charges | 259.4 | ||||
Disposals | 39.9 | ||||
Other | (0.7) | (9.8) | |||
Balance, end of period | (6,814.9) | (6,793) | |||
Pre-development properties | |||||
Property, plant and equipment | |||||
Balance, beginning of period | 13.4 | ||||
Balance, end of period | 13.4 | 13.4 | |||
Amount included above as at December 31, 2018: | |||||
Assets not being depreciated | 13.4 | 13.4 | |||
Pre-development properties | Cost | |||||
Property, plant and equipment | |||||
Balance, beginning of period | 13.4 | 15.5 | |||
Disposals | (2.1) | ||||
Balance, end of period | 13.4 | 13.4 | |||
Exploration and evaluation assets | |||||
Property, plant and equipment | |||||
Balance, beginning of period | 230.7 | ||||
Acquisitions | 0 | 65.1 | |||
Transferred to capitalized development | 0 | ||||
Disposals | (2) | ||||
Balance, end of period | 251.4 | 230.7 | |||
Amount included above as at December 31, 2018: | |||||
Exploration and evaluation expenses, capitalised | 20.7 | 3.1 | |||
Exploration and evaluation expenses | $ 17.4 | $ 11.5 |
CONSOLIDATED FINANCIAL STATEM_8
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Goodwill (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill | ||
Goodwill | $ 158.8 | $ 162.7 |
Kupol | ||
Goodwill | ||
Goodwill | $ 158.8 | 158.8 |
Other Operations | ||
Goodwill | ||
Goodwill | $ 3.9 |
CONSOLIDATED FINANCIAL STATEM_9
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Long-term investments (Details) - USD ($) $ in Millions | Dec. 09, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Long-term investments | ||||
Equity investments at FVOCI | $ 126.2 | $ 155.9 | ||
Gains (losses) in AOCI | (20.4) | (98.5) | $ 21.1 | |
Proceeds from sale | $ 113.2 | |||
Long-term Investments | ||||
Long-term investments | ||||
Gains (losses) in AOCI | (26.2) | (75.2) | ||
Investments in an accumulated gain position | ||||
Long-term investments | ||||
Equity investments at FVOCI | 79.8 | 76.1 | ||
Gains (losses) in AOCI | 10.3 | 4.5 | ||
Investments in an accumulated loss position | ||||
Long-term investments | ||||
Equity investments at FVOCI | 46.4 | 79.8 | ||
Gains (losses) in AOCI | $ (36.5) | (78.7) | ||
Net realized gains (losses) | ||||
Long-term investments | ||||
Gains (losses) in AOCI | $ (1) |
CONSOLIDATED FINANCIAL STATE_10
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Other long-term assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
CONSOLIDATED FINANCIAL STATEMENT DETAILS | ||
Long-term portion of ore in stockpiles and ore on leach pads | $ 303.3 | $ 327.6 |
Deferred charges, net of amortization | 32.5 | 9.7 |
Long-term receivables | 171 | 182.5 |
Advances for the purchase of capital equipment | 15.1 | 3 |
Other | 46.3 | 41.3 |
Total other long-term assets | 568.2 | 564.1 |
Net income tax benefit in respect of of collectability of AMT credit included in long-term receivables | $ 34.5 | $ (66.1) |
CONSOLIDATED FINANCIAL STATE_11
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Accounts payable and accrued liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
CONSOLIDATED FINANCIAL STATEMENT DETAILS | ||
Trade payables | $ 89.3 | $ 89.1 |
Accrued liabilities | 246.7 | 260.6 |
Employee related accrued liabilities | 133.3 | 116.2 |
Total accounts payable and accrued liabilities | $ 469.3 | $ 465.9 |
CONSOLIDATED FINANCIAL STATE_12
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Other current liabilities (Details) - USD ($) $ in Millions | Jan. 30, 2019 | Mar. 19, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 |
DisclosureOfBusinessCombinationsLineItems | |||||
Current portion of lease liabilities | $ 16 | $ 7.3 | |||
Current portion of unrealized fair value of derivative liabilities | 4.3 | $ 22.2 | |||
Deferred payment obligation classified as current | 30 | ||||
Cash consideration paid | 30 | 304.2 | |||
Other current liabilities | $ 20.3 | $ 52.2 | |||
La Coipa Phase 7 mining concessions | MDO | |||||
DisclosureOfBusinessCombinationsLineItems | |||||
Cash consideration paid | $ 30 | $ 35.1 | |||
Percentage of equity interest acquired | 50.00% |
CONSOLIDATED FINANCIAL STATE_13
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Accumulated other comprehensive income (loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated other comprehensive income (loss) | ||
Balance, beginning of period | $ (98.5) | $ 21.1 |
Adjustment of initial application of IFRS 9 | (56.3) | |
Other comprehensive loss before tax | 86.1 | (103.8) |
Tax | (8) | 21 |
Losses on cash flow hedges transferred to cost of non-financial assets | 19.5 | |
Balance, end of period | (20.4) | (98.5) |
Income tax expense (recovery), cash flow hedges - effective portion | 4.5 | (20.9) |
Accumulated other comprehensive income (loss) | ||
Accumulated other comprehensive income (loss) | ||
Adjustment of initial application of IFRS 9 | 0 | (56.3) |
Long-term Investments | ||
Accumulated other comprehensive income (loss) | ||
Balance, beginning of period | (75.2) | 6.9 |
Adjustment of initial application of IFRS 9 | (56.3) | |
Other comprehensive loss before tax | 49.3 | (26.1) |
Tax | (0.3) | 0.3 |
Balance, end of period | (26.2) | (75.2) |
Derivative Contracts | ||
Accumulated other comprehensive income (loss) | ||
Balance, beginning of period | (23.3) | 14.2 |
Other comprehensive loss before tax | 36.8 | (77.7) |
Tax | (7.7) | 20.7 |
Losses on cash flow hedges transferred to cost of non-financial assets | 19.5 | |
Balance, end of period | 5.8 | $ (23.3) |
Income tax expense (recovery), cash flow hedges - effective portion | $ (10) |
CONSOLIDATED FINANCIAL STATE_14
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Other operating expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure: | ||
Other operating expense | $ 108.5 | $ 137 |
Brazil | ||
Disclosure: | ||
Other operating expense | 17.5 | |
Discontinued operations - mining sites | ||
Disclosure: | ||
Other operating expense | 35.6 | 28.7 |
Fairbanks Gold Mining, Inc. | ||
Disclosure: | ||
Other operating expense | $ 25.1 | $ 37.9 |
CONSOLIDATED FINANCIAL STATE_15
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Other income - net (Details) - USD ($) $ in Millions | Dec. 19, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Details | |||
Gains (losses) on dispositions of other assets - net | $ 70.4 | $ (0.8) | |
Foreign exchange gains (losses) - net | 0.6 | (4.3) | |
Net non-hedge derivative gains (losses) | (1.4) | 1.2 | |
Other - net | 0.2 | 9.5 | |
Other income - net | $ 72.6 | $ 3.2 | |
Maverix | |||
Details | |||
Gains (losses) on dispositions of other assets - net | $ 72.7 |
CONSOLIDATED FINANCIAL STATE_16
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Finance Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finance expense | ||
Accretion on reclamation and remediation obligations | $ (31) | $ (29.1) |
Interest expense, including accretion on debt | (76.9) | (72.1) |
Finance expense | (107.9) | (101.2) |
Capitalized interest | 47.4 | 41.5 |
Accretion of lease liabilities | 2.9 | 0 |
Total interest paid, including interest capitalized | 100.6 | 96.1 |
Cost | ||
Finance expense | ||
Capitalized interest | $ 47.4 | $ 41.5 |
CONSOLIDATED FINANCIAL STATE_17
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Employee benefits expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED FINANCIAL STATEMENT DETAILS | ||
Salaries, short-term incentives, and other benefits | $ 680.8 | $ 668.6 |
Share-based payments | 27 | 21.3 |
Other | 26.4 | 9.6 |
Total employee benefits expense | $ 734.2 | $ 699.5 |
REVERSALS OF IMPAIRMENT CHARG_3
REVERSALS OF IMPAIRMENT CHARGES (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Impairment charges | |
Reversals of impairment charges | $ 361.8 |
Accumulated depreciation, depletion, amortization and impairment | |
Impairment charges | |
Property, plant and equipment | 361.8 |
Land, plant and equipment | |
Impairment charges | |
Reversals of impairment charges | (361.8) |
Land, plant and equipment | Accumulated depreciation, depletion, amortization and impairment | |
Impairment charges | |
Property, plant and equipment | 102.4 |
KBM | |
Impairment charges | |
Tax expense(recovery) on impairment charge | 68.2 |
Carrying amounts of property, plant and equipment | 1,461 |
KBM | Land, plant and equipment | |
Impairment charges | |
Reversals of impairment charges | (200.7) |
Tasiast Mauritanie Ltd. S.A. | |
Impairment charges | |
Tax expense(recovery) on impairment charge | 0 |
Carrying amounts of property, plant and equipment | 2,123.6 |
Tasiast Mauritanie Ltd. S.A. | Land, plant and equipment | |
Impairment charges | |
Reversals of impairment charges | $ (161.1) |
INVESTMENT IN JOINT VENTURE (De
INVESTMENT IN JOINT VENTURE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Oct. 02, 2018 | |
Investment in joint venture | |||
Investment in joint venture | $ 18.4 | $ 18.3 | |
Equity in earnings (losses) of joint ventures, net | 0.1 | (0.3) | |
Puren | |||
Investment in joint venture | |||
Investment in joint venture | 18.4 | 18.3 | |
Equity in earnings (losses) of joint ventures, net | $ 0.1 | 0.1 | |
Bald Mountain Exploration LLC | |||
Investment in joint venture | |||
Equity in earnings (losses) of joint ventures, net | $ (0.4) | ||
Bald Mountain Exploration LLC | KGBM | |||
Investment in joint venture | |||
Percentage of equity interest aquired | 50.00% |
FAIR VALUE MEASUREMENT - Assets
FAIR VALUE MEASUREMENT - Assets (liabilities) measured at fair value on recurring basis (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financial Instruments | ||
Equity investments at FVOCI | $ 126.2 | $ 155.9 |
Assets transfer out of Level 1 into Level 2 | 0 | |
Assets transfer out of Level 2 into Level 1 | 0 | |
Liabilities transfer out of Level 1 into Level 2 | 0 | |
Liabilities transfer out of Level 2 into Level 1 | 0 | |
Assets transfers into Level 3 fair value measurements | 0 | |
Assets transfers out of Level 3 fair value measurements | 0 | |
Liabilities transfers into Level 3 fair value measurements | 0 | |
Liabilities transfers out of Level 3 fair value measurements | 0 | |
Recurring basis | ||
Financial Instruments | ||
Equity investments at FVOCI | 126.2 | |
Foreign currency net working capital | 132.8 | |
Recurring basis | Level 1 | ||
Financial Instruments | ||
Equity investments at FVOCI | 126.2 | |
Financial liabilities | 126.2 | |
Recurring basis | Level 2 | ||
Financial Instruments | ||
Financial liabilities | 6.6 | |
Foreign currency forward and collar contracts | Recurring basis | ||
Financial Instruments | ||
Financial liabilities | 3.9 | |
Foreign currency forward and collar contracts | Recurring basis | Level 2 | ||
Financial Instruments | ||
Financial liabilities | 3.9 | |
Energy Swap | Recurring basis | ||
Financial Instruments | ||
Financial liabilities | 4 | |
Energy Swap | Recurring basis | Level 2 | ||
Financial Instruments | ||
Financial liabilities | 4 | |
Total return swap contract | Recurring basis | ||
Financial Instruments | ||
Foreign currency net working capital | (1.3) | |
Total return swap contract | Recurring basis | Level 2 | ||
Financial Instruments | ||
Foreign currency net working capital | $ (1.3) |
FAIR VALUE MEASUREMENT - Deriva
FAIR VALUE MEASUREMENT - Derivative contracts (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financial Instruments | ||
Unrealized fair value of derivative assets, current | $ 7.2 | $ 3.8 |
Unrealized fair value of derivative assets, non-current | 4.5 | 0.8 |
Unrealized fair value of derivative assets | 11.7 | 4.6 |
Unrealized fair value of derivative liabilities, current | (4.3) | (22.2) |
Unrealized fair value of derivative liabilities, non-current | (0.8) | (9.6) |
Unrealized fair value of derivative liabilities | (5.1) | (31.8) |
Net asset (liability) | 6.6 | (27.2) |
Total return swap contract | ||
Financial Instruments | ||
Net asset (liability) | (1.3) | 3.2 |
Unrealized gain (loss) recorded in AOCI | 0 | 0 |
Derivative Contracts | ||
Financial Instruments | ||
Net asset (liability) | 6.6 | (27.2) |
Unrealized gain (loss) recorded in AOCI | 5.8 | (23.3) |
Foreign currency forward and collar contracts | ||
Financial Instruments | ||
Net asset (liability) | 3.9 | (21.8) |
Unrealized gain (loss) recorded in AOCI | 2.6 | (15.8) |
Reclassification of amounts to net earnings within the next 12 months as a result of settling the contracts | 0.7 | |
Energy Swap | ||
Financial Instruments | ||
Net asset (liability) | 4 | (8.6) |
Unrealized gain (loss) recorded in AOCI | 3.2 | $ (7.5) |
Reclassification of amounts to net earnings within the next 12 months as a result of settling the contracts | $ 2.5 |
FAIR VALUE MEASUREMENT - Foreig
FAIR VALUE MEASUREMENT - Foreign currency forward and collar contracts (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)₽ / $$ / $R$ / $ | Dec. 31, 2018USD ($) | |
Derivative Contracts | ||
Financial Instruments | ||
Unrealized Gain (loss) on Derivative Financial Instruments | $ 5.8 | $ (23.3) |
Foreign currency forward and collar contracts | ||
Financial Instruments | ||
Unrealized Gain (loss) on Derivative Financial Instruments | 2.6 | (15.8) |
Brazilian real forward buy contracts | ||
Financial Instruments | ||
Unrealized Gain (loss) on Derivative Financial Instruments | $ 0 | (1.7) |
Brazilian real forward buy contracts | Put | 2020 | ||
Financial Instruments | ||
Average price | R$ / $ | 3.76 | |
Brazilian real forward buy contracts | Put | 2021 | ||
Financial Instruments | ||
Average price | R$ / $ | 4.11 | |
Brazilian real forward buy contracts | Put | 2022 | ||
Financial Instruments | ||
Average price | R$ / $ | 4.20 | |
Brazilian real forward buy contracts | Put | From 2020 to 2022 | ||
Financial Instruments | ||
Average price | R$ / $ | 4.08 | |
Brazilian real forward buy contracts | Call | ||
Financial Instruments | ||
Average price | R$ / $ | 4.62 | |
Brazilian real forward buy contracts | Call | 2020 | ||
Financial Instruments | ||
Average price | R$ / $ | 4.23 | |
Brazilian real forward buy contracts | Call | 2021 | ||
Financial Instruments | ||
Average price | R$ / $ | 4.71 | |
Brazilian real forward buy contracts | Call | 2022 | ||
Financial Instruments | ||
Average price | R$ / $ | 4.78 | |
Brazilian real zero cost collar contracts | ||
Financial Instruments | ||
Unrealized Gain (loss) on Derivative Financial Instruments | $ (0.1) | 7.5 |
Brazilian real zero cost collar contracts | 2020 | ||
Financial Instruments | ||
Foreign currency net working capital | 116 | |
Brazilian real zero cost collar contracts | 2021 | ||
Financial Instruments | ||
Foreign currency net working capital | 64 | |
Brazilian real zero cost collar contracts | 2022 | ||
Financial Instruments | ||
Foreign currency net working capital | 13.2 | |
Brazilian real zero cost collar contracts | From 2020 to 2022 | ||
Financial Instruments | ||
New derivative contracts | 85.2 | |
Canadian dollar forward buy contracts | ||
Financial Instruments | ||
Unrealized Gain (loss) on Derivative Financial Instruments | (0.5) | 3.5 |
Canadian dollar forward buy contracts | 2020 | ||
Financial Instruments | ||
Foreign currency net working capital | $ 31.2 | |
Average price | $ / $ | 1.32 | |
Canadian dollar forward buy contracts | 2021 | ||
Financial Instruments | ||
Foreign currency net working capital | $ 12 | |
Average price | $ / $ | 1.33 | |
Canadian dollar forward buy contracts | From 2020 to 2021 | ||
Financial Instruments | ||
New derivative contracts | $ 28.8 | |
Average price | $ / $ | 1.33 | |
Russian rouble zero cost collar contracts | ||
Financial Instruments | ||
New derivative contracts | $ 59.4 | |
Unrealized Gain (loss) on Derivative Financial Instruments | (2.2) | $ 3.3 |
Russian rouble zero cost collar contracts | 2020 | ||
Financial Instruments | ||
Foreign currency net working capital | 47.7 | |
Russian rouble zero cost collar contracts | 2021 | ||
Financial Instruments | ||
Foreign currency net working capital | $ 25.2 | |
Russian rouble zero cost collar contracts | Put | ||
Financial Instruments | ||
Average price | ₽ / $ | 65.5 | |
Russian rouble zero cost collar contracts | Put | 2020 | ||
Financial Instruments | ||
Average price | ₽ / $ | 65.3 | |
Russian rouble zero cost collar contracts | Put | 2021 | ||
Financial Instruments | ||
Average price | ₽ / $ | 65.8 | |
Russian rouble zero cost collar contracts | Call | ||
Financial Instruments | ||
Average price | ₽ / $ | 80.3 | |
Russian rouble zero cost collar contracts | Call | 2020 | ||
Financial Instruments | ||
Average price | ₽ / $ | 77.6 | |
Russian rouble zero cost collar contracts | Call | 2021 | ||
Financial Instruments | ||
Average price | ₽ / $ | 84.2 |
FAIR VALUE MEASUREMENT - Energy
FAIR VALUE MEASUREMENT - Energy swap contracts (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)$ / bblbbl | Dec. 31, 2018USD ($) | |
Derivative Contracts | ||
Financial Instruments | ||
Unrealized gain (loss) recorded in AOCI | $ | $ 5.8 | $ (23.3) |
Energy Swap | ||
Financial Instruments | ||
Unrealized gain (loss) recorded in AOCI | $ | $ 3.2 | $ (7.5) |
Energy Swap | 2020 | ||
Financial Instruments | ||
WTI oil swap contracts (barrels) | bbl | 946,800 | |
Average price | $ / bbl | 54.43 | |
Energy Swap | 2021 | ||
Financial Instruments | ||
WTI oil swap contracts (barrels) | bbl | 609,000 | |
Average price | $ / bbl | 52.79 | |
Energy Swap | 2022 | ||
Financial Instruments | ||
WTI oil swap contracts (barrels) | bbl | 74,100 | |
Average price | $ / bbl | 50.21 | |
Energy Swap | From 2020 to 2022 | ||
Financial Instruments | ||
WTI oil swap contracts (barrels) | bbl | 865,500 | |
Average price | $ / bbl | 50.81 |
FAIR VALUE MEASUREMENT - Total
FAIR VALUE MEASUREMENT - Total return swap contracts (Details) - Total return swap contract - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments | ||
Units outstanding | 5,695,000 | |
Percent of stock units that were economically hedged | 84.40% | 89.50% |
CAPITAL AND FINANCIAL RISK MA_3
CAPITAL AND FINANCIAL RISK MANAGEMENT - Capital management (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Capital and financial risk management | ||
Long-term debt and credit facilities | $ 1,837.4 | $ 1,735 |
Total debt | 1,837.4 | 1,735 |
Common shareholders' equity | $ 5,318.5 | $ 4,506.7 |
Total debt/ total debt and common shareholders' equity ratio | 25.70% | 27.80% |
Minimum | ||
Capital and financial risk management | ||
Company target | 0.00% | 0.00% |
Maximum | ||
Capital and financial risk management | ||
Company target | 30.00% | 30.00% |
CAPITAL AND FINANCIAL RISK MA_4
CAPITAL AND FINANCIAL RISK MANAGEMENT - Gold and silver price risk management (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Gold and silver price risk | ||
Capital and financial risk management | ||
Derivatives to hedge metal sales | $ 0 | $ 0 |
CAPITAL AND FINANCIAL RISK MA_5
CAPITAL AND FINANCIAL RISK MANAGEMENT - Currency risk management (Details) - Currency risk $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Capital and financial risk management | |
Percentage of strengthening in U.S. dollar | 10.00% |
Percentage of weakening in U.S. dollar | 10.00% |
Foreign currency forward and collar contracts | |
Capital and financial risk management | |
Percentage of strengthening in U.S. dollar | 10.00% |
Percentage of weakening in U.S. dollar | 10.00% |
Canadian dollar | |
Capital and financial risk management | |
Foreign currency net working capital | $ (26.3) |
Strengthening in U.S dollar effect on earnings before taxes, gain (loss) | 2.4 |
Weakening in U.S dollar effect on earnings before taxes, gain (loss) | (2.9) |
Brazilian real | |
Capital and financial risk management | |
Foreign currency net working capital | (91.3) |
Strengthening in U.S dollar effect on earnings before taxes, gain (loss) | 8.3 |
Weakening in U.S dollar effect on earnings before taxes, gain (loss) | (10.1) |
Chilean pesos | |
Capital and financial risk management | |
Foreign currency net working capital | (5) |
Strengthening in U.S dollar effect on earnings before taxes, gain (loss) | 0.5 |
Weakening in U.S dollar effect on earnings before taxes, gain (loss) | (0.6) |
Russian rouble | |
Capital and financial risk management | |
Foreign currency net working capital | 33.4 |
Strengthening in U.S dollar effect on earnings before taxes, gain (loss) | (3) |
Weakening in U.S dollar effect on earnings before taxes, gain (loss) | 3.7 |
Mauritanian ouguiya | |
Capital and financial risk management | |
Foreign currency net working capital | (68.1) |
Strengthening in U.S dollar effect on earnings before taxes, gain (loss) | 6.2 |
Weakening in U.S dollar effect on earnings before taxes, gain (loss) | (7.6) |
Other | |
Capital and financial risk management | |
Foreign currency net working capital | 7 |
Strengthening in U.S dollar effect on earnings before taxes, gain (loss) | (0.6) |
Weakening in U.S dollar effect on earnings before taxes, gain (loss) | $ 0.8 |
CAPITAL AND FINANCIAL RISK MA_6
CAPITAL AND FINANCIAL RISK MANAGEMENT - Currency risk management impact on OCI (Details) - Currency risk $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Capital and financial risk management | |
Percentage of strengthening in U.S. dollar | 10.00% |
Foreign currency forward and collar contracts | |
Capital and financial risk management | |
Percentage of strengthening in U.S. dollar | 10.00% |
Foreign currency forward and collar contracts | Canadian dollar | |
Capital and financial risk management | |
Strengthening in U.S dollar Effect on OCI before taxes, gain (loss) | $ (3.9) |
Weakening in U.S dollar Effect on OCI before taxes, gain (loss) | 4.8 |
Foreign currency forward and collar contracts | Brazilian real | |
Capital and financial risk management | |
Strengthening in U.S dollar Effect on OCI before taxes, gain (loss) | (10.7) |
Weakening in U.S dollar Effect on OCI before taxes, gain (loss) | 13.3 |
Foreign currency forward and collar contracts | Russian rouble | |
Capital and financial risk management | |
Strengthening in U.S dollar Effect on OCI before taxes, gain (loss) | (3.2) |
Weakening in U.S dollar Effect on OCI before taxes, gain (loss) | $ 6.5 |
CAPITAL AND FINANCIAL RISK MA_7
CAPITAL AND FINANCIAL RISK MANAGEMENT - Energy price risk (Details) - Price Risk $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Capital and financial risk management | |
Percentage of increase in price | 10.00% |
Percentage of decrease in price | 10.00% |
Increase in price Effect on OCI before taxes, gain (loss) | $ 9 |
Decrease in price Effect on OCI before taxes, gain (loss) | $ (8.9) |
CAPITAL AND FINANCIAL RISK MA_8
CAPITAL AND FINANCIAL RISK MANAGEMENT - Liquidity risk (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt repayments | |||
Cash and cash equivalents | $ 575.1 | $ 349 | $ 1,025.8 |
Liquidity risk | Long-term debt | |||
Debt repayments | |||
Contractual cash flow | 2,610.3 | ||
Liquidity risk | 2020 | Long-term debt | |||
Debt repayments | |||
Contractual cash flow | 98.5 | ||
Liquidity risk | 2021-2024 | Long-term debt | |||
Debt repayments | |||
Contractual cash flow | 1,402.1 | ||
Liquidity risk | 2025+ | Long-term debt | |||
Debt repayments | |||
Contractual cash flow | $ 1,109.7 |
LONG-TERM DEBT AND CREDIT FAC_3
LONG-TERM DEBT AND CREDIT FACILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Long-term debt | ||
Notional amount | $ 1,847 | |
Deferred Financing Costs | (9.6) | |
Carrying Amount | 1,837.4 | $ 1,735 |
Fair Value | 1,981.9 | 1,668.8 |
Senior notes | ||
Long-term debt | ||
Notional amount | 1,747 | |
Deferred Financing Costs | (9.6) | |
Carrying Amount | 1,737.4 | 1,735 |
Fair Value | $ 1,881.9 | $ 1,668.8 |
Senior notes | Minimum | ||
Long-term debt | ||
Interest rate (as a percent) | 4.50% | 4.50% |
Senior notes | Maximum | ||
Long-term debt | ||
Interest rate (as a percent) | 6.875% | 6.875% |
Revolving credit facility | ||
Long-term debt | ||
Notional amount | $ 100 | |
Carrying Amount | 100 | |
Fair Value | $ 100 | |
Revolving credit facility | LIBOR | ||
Long-term debt | ||
Interest rate (as a percent) | 1.625% | 1.625% |
LONG-TERM DEBT AND CREDIT FAC_4
LONG-TERM DEBT AND CREDIT FACILITIES - Debt repayments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Long-term debt | |||
Total debt payable | $ 1,850 | ||
Repayment of debt | 200 | $ 80 | |
2021 | |||
Long-term debt | |||
Total debt payable | 500 | ||
2024 | |||
Long-term debt | |||
Total debt payable | 600 | ||
2025+ | |||
Long-term debt | |||
Total debt payable | 750 | ||
Senior notes | |||
Long-term debt | |||
Total debt payable | 1,750 | ||
Senior notes | 2021 | |||
Long-term debt | |||
Total debt payable | 500 | ||
Senior notes | 2024 | |||
Long-term debt | |||
Total debt payable | 500 | ||
Senior notes | 2025+ | |||
Long-term debt | |||
Total debt payable | 750 | ||
Revolving credit facility | |||
Long-term debt | |||
Total debt payable | 100 | ||
Repayment of debt | $ 100 | ||
Revolving credit facility | 2024 | |||
Long-term debt | |||
Total debt payable | $ 100 |
LONG-TERM DEBT AND CREDIT FAC_5
LONG-TERM DEBT AND CREDIT FACILITIES - Senior notes (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Long-term debt | ||
Debt repayments | $ 200 | $ 80 |
Principal amount | 1,847 | |
Senior notes | ||
Long-term debt | ||
Principal amount | $ 1,747 | |
Redemption price (as a percent) | 100.00% | |
Redeem of the principal amount (as a percent) | 100.00% | |
Prior to maturity upon certain fundamental changes | 101.00% | |
Senior notes | Minimum | ||
Long-term debt | ||
Interest rate (as a percent) | 4.50% | 4.50% |
Premium add to the redemption price (as a percent) | 45 | |
Senior notes | Maximum | ||
Long-term debt | ||
Interest rate (as a percent) | 6.875% | 6.875% |
Premium add to the redemption price (as a percent) | 50 | |
5.125% senior notes | ||
Long-term debt | ||
Interest rate (as a percent) | 5.125% | 5.125% |
Principal amount | $ 500 | $ 500 |
Redeemable period, before maturity date | 3 months | |
5.950% senior notes | ||
Long-term debt | ||
Interest rate (as a percent) | 5.95% | 5.95% |
Principal amount | $ 500 | $ 500 |
Redeemable period, before maturity date | 3 months | |
4.50% senior notes | ||
Long-term debt | ||
Interest rate (as a percent) | 4.50% | 4.50% |
Principal amount | $ 500 | $ 500 |
Redeemable period, before maturity date | 3 months | |
6.875% senior notes | ||
Long-term debt | ||
Interest rate (as a percent) | 6.875% | 6.875% |
Principal amount | $ 250 | $ 250 |
Redeemable period, before maturity date | 6 months |
LONG-TERM DEBT AND CREDIT FAC_6
LONG-TERM DEBT AND CREDIT FACILITIES - Corporate revolving credit and term loan facilities (Details) - USD ($) $ in Millions | Dec. 16, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Long-term debt | ||||
Proceeds from drawdown of debt | $ 300 | $ 80 | ||
Repayment of debt | 200 | 80 | ||
Letters of credit and surety bonds | 1,837.4 | 1,735 | ||
Tasiast Mauritanie Ltd. S.A. | ||||
Long-term debt | ||||
Maximum borrowing capacity | $ 300 | |||
Term of loan | 8 years | |||
Interest rate (as a percent) | 4.38% | |||
Standby fee (as percent of unused availablity) | 1.60% | |||
Revolving Credit Facility | ||||
Long-term debt | ||||
Facility utilized | 119.1 | $ 19.7 | ||
Maximum borrowing capacity | 1,500 | |||
Proceeds from drawdown of debt | $ 200 | |||
Borrowings, maturity | August 10, 2024 | |||
Repayment of debt | $ 100 | $ 300 | ||
Standby fee (as percent of unused availablity) | 0.325% | |||
Revolving Credit Facility | LIBOR | ||||
Long-term debt | ||||
Interest rate (as a percent) | 1.625% | |||
Letter of credit | ||||
Long-term debt | ||||
Repayment of debt | $ 19.1 | |||
Letter of credit | Minimum | ||||
Long-term debt | ||||
Interest rate (as a percent) | 1.0833% | |||
Letter of credit | Maximum | ||||
Long-term debt | ||||
Interest rate (as a percent) | 1.625% |
LONG-TERM DEBT AND CREDIT FAC_7
LONG-TERM DEBT AND CREDIT FACILITIES - Other (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Long-term debt | ||
Long-term debt and credit facilities | $ 1,837.4 | $ 1,735 |
Operations in Brazil, Mauritania, Ghana and Chile | ||
Long-term debt | ||
Surety bonds | $ 184.7 | 161.5 |
Fees incured (as a percentage) | 0.70% | |
Letter of Credit guarantee facility | ||
Long-term debt | ||
Maximum borrowing capacity | $ 300 | |
Borrowings, maturity | June 30, 2020 | |
Long-term debt and credit facilities | $ 227.8 | 227.4 |
Fees incured (as a percentage) | 0.95% | |
Surety bonds | ||
Long-term debt | ||
Surety bonds | $ 276.5 | $ 264.4 |
Fees incured (as a percentage) | 0.65% |
LONG-TERM DEBT AND CREDIT FAC_8
LONG-TERM DEBT AND CREDIT FACILITIES - Changes in liabilities arising from financing activities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes from financing cash flows | ||
Balance at the beginning | $ 1,768.3 | $ 1,766.4 |
Debt issued | 300 | 80 |
Debt repayments | (200) | (80) |
Interest paid | (55.6) | (57.9) |
Payments of lease liabilities | (14.3) | |
Changes for financing cash flows | 1,841.3 | 1,708.5 |
Other changes | ||
Interest expense and accretion | 74 | 72.1 |
Capitalized interest | 47.4 | 41.5 |
Capitalized interest paid | (45) | (38.2) |
Additions of lease liabilities | 22.9 | |
Accretion of lease liabilities | 2.9 | |
Other cash changes | (10) | (9.9) |
Other non cash changes | (7.9) | (5.7) |
Other changes | 84.3 | 59.8 |
Balance at the end | 1,925.6 | 1,768.3 |
Long-term debt | ||
Changes from financing cash flows | ||
Balance at the beginning | 1,735 | 1,732.6 |
Debt issued | 300 | 80 |
Debt repayments | (200) | (80) |
Changes for financing cash flows | 1,835 | 1,732.6 |
Other changes | ||
Other non cash changes | 2.4 | 2.4 |
Other changes | 2.4 | 2.4 |
Balance at the end | 1,837.4 | 1,735 |
Lease liabilities | ||
Changes from financing cash flows | ||
Payments of lease liabilities | (14.3) | |
Changes for financing cash flows | 28.6 | |
Other changes | ||
Additions of lease liabilities | 22.9 | |
Accretion of lease liabilities | 2.9 | |
Other non cash changes | 0.5 | |
Other changes | 26.3 | |
Balance at the end | 54.9 | |
Accrued interest payable | ||
Changes from financing cash flows | ||
Balance at the beginning | 33.3 | 33.8 |
Interest paid | (55.6) | (57.9) |
Changes for financing cash flows | (22.3) | (24.1) |
Other changes | ||
Interest expense and accretion | 74 | 72.1 |
Capitalized interest | 47.4 | 41.5 |
Capitalized interest paid | (45) | (38.2) |
Other cash changes | (10) | (9.9) |
Other non cash changes | (10.8) | (8.1) |
Other changes | 55.6 | 57.4 |
Balance at the end | 33.3 | 33.3 |
IFRS 16 | ||
Changes from financing cash flows | ||
Balance at the beginning | 1,811.2 | |
Other changes | ||
Balance at the end | 1,811.2 | |
IFRS 16 | Long-term debt | ||
Changes from financing cash flows | ||
Balance at the beginning | 1,735 | |
Other changes | ||
Balance at the end | 1,735 | |
IFRS 16 | Lease liabilities | ||
Changes from financing cash flows | ||
Balance at the beginning | 42.9 | |
Other changes | ||
Balance at the end | 42.9 | |
IFRS 16 | Accrued interest payable | ||
Changes from financing cash flows | ||
Balance at the beginning | $ 33.3 | |
Other changes | ||
Balance at the end | $ 33.3 |
PROVISIONS (Details)
PROVISIONS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Provisions reconciliation | ||
Provisions at beginning of period | $ 889 | |
Additions | 62.9 | |
Reductions | (19.1) | |
Reclamation spending | (55.4) | |
Accretion | 31 | |
Reclamation recovery | (11.9) | |
Provisions at end of period | 896.5 | $ 889 |
Current portion | 57.9 | |
Non-current portion | 838.6 | |
Other operating expense | 108.5 | 137 |
Reclamation and remediation obligations | ||
Provisions reconciliation | ||
Provisions at beginning of period | 854.1 | |
Additions | 55.7 | |
Reductions | (7.4) | |
Reclamation spending | (55.4) | |
Accretion | 31 | |
Reclamation recovery | (11.9) | |
Provisions at end of period | 866.1 | 854.1 |
Current portion | 50.5 | |
Non-current portion | 815.6 | |
Other operating expense | 11.9 | 8 |
Letter of credit issued to various agencies | 391.9 | 366.7 |
Surety bonds | $ 275.7 | $ 264.4 |
Reclamation and remediation obligations | Minimum | ||
Provisions reconciliation | ||
Discount rate used in estimating site restoration cost obligation (in percent) | 1.70% | 2.50% |
Inflation rate used in estimating the site restoration cost obligation (in percent) | 2.20% | 2.10% |
Reclamation and remediation obligations | Maximum | ||
Provisions reconciliation | ||
Discount rate used in estimating site restoration cost obligation (in percent) | 14.70% | 12.30% |
Inflation rate used in estimating the site restoration cost obligation (in percent) | 4.00% | 5.10% |
Other | ||
Provisions reconciliation | ||
Provisions at beginning of period | $ 34.9 | |
Additions | 7.2 | |
Reductions | (11.7) | |
Provisions at end of period | 30.4 | $ 34.9 |
Current portion | 7.4 | |
Non-current portion | $ 23 |
COMMON SHARE CAPITAL (Details)
COMMON SHARE CAPITAL (Details) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
COMMON SHARE CAPITAL | ||
Balance at the beginning of the period | $ 4,527.3 | |
Balance at the end of the period | 5,332.6 | $ 4,527.3 |
Total common share capital | $ 14,926.2 | $ 14,913.4 |
Common share capital | ||
COMMON SHARE CAPITAL | ||
Balance at the beginning of the period (shares) | 1,250,229 | 1,247,004 |
Issued under share option and restricted share plans (shares) | 3,537 | 3,225 |
Balance at the end of the period (shares) | 1,253,766 | 1,250,229 |
Balance at the beginning of the period | $ 14,913.4 | $ 14,902.5 |
Issued under share option and restricted share plans | 12.8 | 10.9 |
Balance at the end of the period | 14,926.2 | 14,913.4 |
Total common share capital | $ 14,926.2 | $ 14,913.4 |
SHARE-BASED PAYMENTS - Share-ba
SHARE-BASED PAYMENTS - Share-based compensation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based payment transaction | ||
Share-based compensation expense | $ 30.2 | $ 24.5 |
Share options | ||
Share-based payment transaction | ||
Share-based compensation expense | 2.4 | 2.7 |
Restricted share unit plan | ||
Share-based payment transaction | ||
Share-based compensation expense | 24.6 | 18.6 |
Deferred share unit plan | ||
Share-based payment transaction | ||
Share-based compensation expense | 1.1 | 1.1 |
Employee share purchase plan | ||
Share-based payment transaction | ||
Share-based compensation expense | $ 2.1 | $ 2.1 |
SHARE-BASED PAYMENTS - Share op
SHARE-BASED PAYMENTS - Share option plan (Details) - Share options shares in Millions | 12 Months Ended |
Dec. 31, 2019Yshares | |
Share-based payment transaction | |
Ratio of options granted exercisable each year | 33.33% |
Commencement period for exercise of options | 1 year |
Number of common shares available for grant of options | 12.5 |
Maximum | |
Share-based payment transaction | |
Aggregate number of shares reserved for issuance | 31.2 |
The aggregate percentage of common shares reserved for issuance under the plan | 10 |
On or after February 16, 2011 | Maximum | |
Share-based payment transaction | |
Term of share options | Y | 7 |
SHARE-BASED PAYMENTS - Share _2
SHARE-BASED PAYMENTS - Share option plan changes (Details) - Share options Options in Thousands | 12 Months Ended | |||
Dec. 31, 2019Options$ / shares | Dec. 31, 2019Options$ / shares$ / shares | Dec. 31, 2018Options$ / shares | Dec. 31, 2018Options$ / shares$ / shares | |
Share-based payment transaction | ||||
Balance at January 1 | Options | 12,344 | 12,344 | 12,173 | 12,173 |
Granted | Options | 2,042 | 2,042 | 1,950 | 1,950 |
Exercised | Options | (1,577) | (1,577) | (301) | (301) |
Forfeited | Options | (741) | (741) | (238) | (238) |
Expired | Options | (1,898) | (1,898) | (1,240) | (1,240) |
Outstanding at end of period | Options | 10,170 | 10,170 | 12,344 | 12,344 |
Exercisable at end of period | Options | 6,459 | 6,459 | 8,861 | 8,861 |
Balance at January 1 | $ / shares | $ 5.77 | $ 6.52 | ||
Granted | $ / shares | 4.59 | 4.95 | ||
Exercised | $ / shares | 4.41 | 3.65 | ||
Forfeited | $ / shares | 4.42 | 4.87 | ||
Expired | $ / shares | 9.42 | 12.58 | ||
Outstanding at end of period | $ / shares | 5.16 | 5.77 | ||
Weighted average exercise price at end of period | $ / shares | 5.38 | $ 5.38 | $ 6.13 | $ 6.13 |
Weighted average share price at the date of exercise | (per share) | $ 6.20 | $ 3.97 | $ 3.44 |
SHARE-BASED PAYMENTS - Share _3
SHARE-BASED PAYMENTS - Share option plan stock options outstanding (Details) - Share options Options in Thousands | 12 Months Ended | ||
Dec. 31, 2019Options$ / shares | Dec. 31, 2018Options$ / shares | Dec. 31, 2017Options$ / shares | |
Share options outstanding | |||
Exercise price range | $ 4.59 | $ 4.95 | |
Number of options | Options | 10,170 | 12,344 | 12,173 |
Weighted average exercise price | $ 5.16 | $ 5.77 | $ 6.52 |
Weighted average remaining contractual life (years) | 2 years 11 months 9 days | ||
Share options exercisable | |||
Exercisable at end of period | Options | 6,459 | 8,861 | |
Weighted average exercise price | $ 5.38 | $ 6.13 | |
Weighted average remaining contractual life (years) | 1 year 10 months 21 days | ||
$3.73 to $4.50 | |||
Share options outstanding | |||
Number of options | Options | 2,313 | ||
Weighted average exercise price | $ 3.90 | ||
Weighted average remaining contractual life (years) | 2 years 2 months 23 days | ||
Share options exercisable | |||
Exercisable at end of period | Options | 2,313 | ||
Weighted average exercise price | $ 3.90 | ||
Weighted average remaining contractual life (years) | 2 years 2 months 23 days | ||
$4.51 to $5.50 | |||
Share options outstanding | |||
Number of options | Options | 5,070 | ||
Weighted average exercise price | $ 4.85 | ||
Weighted average remaining contractual life (years) | 4 years 6 months | ||
Share options exercisable | |||
Exercisable at end of period | Options | 1,359 | ||
Weighted average exercise price | $ 5.03 | ||
Weighted average remaining contractual life (years) | 3 years 9 months 4 days | ||
$5.51 to $6.50 | |||
Share options outstanding | |||
Number of options | Options | 1,573 | ||
Weighted average exercise price | $ 5.82 | ||
Weighted average remaining contractual life (years) | 1 year 1 month 21 days | ||
Share options exercisable | |||
Exercisable at end of period | Options | 1,573 | ||
Weighted average exercise price | $ 5.82 | ||
Weighted average remaining contractual life (years) | 1 year 1 month 21 days | ||
$6.51 to $8.03 | |||
Share options outstanding | |||
Number of options | Options | 1,214 | ||
Weighted average exercise price | $ 8.02 | ||
Weighted average remaining contractual life (years) | 1 month 21 days | ||
Share options exercisable | |||
Exercisable at end of period | Options | 1,214 | ||
Weighted average exercise price | $ 8.03 | ||
Weighted average remaining contractual life (years) | 1 month 21 days | ||
Minimum | $3.73 to $4.50 | |||
Share options outstanding | |||
Exercise price range | $ 3.73 | ||
Minimum | $4.51 to $5.50 | |||
Share options outstanding | |||
Exercise price range | 4.51 | ||
Minimum | $5.51 to $6.50 | |||
Share options outstanding | |||
Exercise price range | 5.51 | ||
Minimum | $6.51 to $8.03 | |||
Share options outstanding | |||
Exercise price range | 6.51 | ||
Maximum | $3.73 to $4.50 | |||
Share options outstanding | |||
Exercise price range | 4.50 | ||
Maximum | $4.51 to $5.50 | |||
Share options outstanding | |||
Exercise price range | 5.50 | ||
Maximum | $5.51 to $6.50 | |||
Share options outstanding | |||
Exercise price range | 6.50 | ||
Maximum | $6.51 to $8.03 | |||
Share options outstanding | |||
Exercise price range | $ 8.03 |
SHARE-BASED PAYMENTS - Share _4
SHARE-BASED PAYMENTS - Share option plan black-scholes option pricing model (Details) - Share options - CAD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Weighted average assumptions used in computing the fair value of stock options granted | ||
Weighted average share price (CDN$) | $ 4.59 | $ 4.95 |
Expected dividend yield | 0.00% | 0.00% |
Expected volatility | 44.80% | 47.50% |
Risk-free interest rate | 1.80% | 2.10% |
Expected option life (in years) | 4 years 6 months | 4 years 6 months |
Weighted average fair value per stock option granted (CDN$) | $ 1.79 | $ 2.05 |
SHARE-BASED PAYMENTS - Restrict
SHARE-BASED PAYMENTS - Restricted share unit plan (Details) shares in Millions | Dec. 31, 2019shares |
Maximum | Restricted share unit plan | |
Share-based payment transaction | |
Shares authorized (in shares) | 22.7 |
SHARE-BASED PAYMENTS - Restri_2
SHARE-BASED PAYMENTS - Restricted share units (Details) - Restricted share units | 12 Months Ended | |||
Dec. 31, 2019CAD ($)EquityInstruments$ / shares | Dec. 31, 2018CAD ($)EquityInstruments$ / shares | Dec. 31, 2019USD ($)EquityInstruments | Dec. 31, 2018USD ($) | |
Share-based payment transaction | ||||
Number of common shares issued when restricted share unit is exercised | 1 | |||
Additional consideration to acquire common share | $ | $ 0 | |||
Vesting period | 3 years | |||
Summary of information about share units outstanding | ||||
Balance at January 1 | 7,626,000 | 8,277,000 | ||
Granted | 5,740,000 | 4,258,000 | ||
Redeemed | (3,888,000) | (4,247,000) | ||
Forfeited | (966,000) | (662,000) | ||
Outstanding at end of period | 8,512,000 | 7,626,000 | ||
Balance at January 1 | $ | $ 4.88 | $ 4.63 | ||
Granted | $ / shares | $ 4.56 | $ 4.85 | ||
Redeemed | $ / shares | 4.86 | 4.37 | ||
Forfeited | $ / shares | $ 4.81 | $ 4.86 | ||
Outstanding at end of period | $ | $ 4.68 | $ 4.88 | ||
Liability recognized in respect of cash settled RSUs | $ | $ 13,900,000 | $ 8,700,000 |
SHARE-BASED PAYMENTS - Restri_3
SHARE-BASED PAYMENTS - Restricted performance share units outstanding (Details) - Restricted performance share units $ / shares in Units, EquityInstruments in Thousands | 12 Months Ended | |
Dec. 31, 2019CAD ($)EquityInstruments$ / shares | Dec. 31, 2018CAD ($)EquityInstruments$ / shares | |
Share-based payment transaction | ||
Balance at January 1 | 4,990 | 4,886 |
Granted | 2,263 | 2,807 |
Redeemed | (1,702) | (2,523) |
Forfeited | (614) | (180) |
Outstanding at end of period | 4,937 | 4,990 |
Balance at January 1 | $ | $ 5.14 | $ 4.52 |
Granted | $ / shares | $ 4.54 | $ 4.77 |
Redeemed | $ / shares | 4.45 | 3.56 |
Forfeited | $ / shares | $ 4.71 | $ 4.75 |
Outstanding at end of period | $ | $ 5.16 | $ 5.14 |
SHARE-BASED PAYMENTS - Deferred
SHARE-BASED PAYMENTS - Deferred share unit plan (Details) - Deferred share unit plan $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)EquityInstruments$ / shares | Dec. 31, 2018USD ($)EquityInstruments$ / shares | |
Share-based payment transaction | ||
Minimum percentage of compensation for computing number of share units to outside director (as a percent) | 50.00% | |
DSUs granted | 269,000 | 312,000 |
Weighted average grant-date fair value (CDN$/ unit) | $ / shares | $ 5.39 | $ 4.39 |
Number of share units outstanding | 1,645,972 | |
Recognized liability | $ | $ 7.8 | $ 5.5 |
SHARE-BASED PAYMENTS - Employee
SHARE-BASED PAYMENTS - Employee share purchase plans (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based payment transaction | ||
Total share-based compensation | $ 30.2 | $ 24.5 |
Employee share purchase plan | ||
Share-based payment transaction | ||
Maximum contribution of annual base salary of employees (as a percent) | 10.00% | |
Employer contributions (as a percent) | 50.00% | |
Total share-based compensation | $ 2.1 | $ 2.1 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019$ / shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | |
Earnings per share | |||
Basic net earnings (loss) attributable to common shareholders | $ | $ 718.6 | $ (23.6) | |
Diluted net earnings (loss) attributable to common shareholders | $ | $ 718.6 | $ (23.6) | |
Basic weighted average shares outstanding | 1,252,316 | 1,249,495 | |
Weighted average shares dilution adjustments: | |||
Stock options | 1,679 | ||
Restricted shares | 3,181 | ||
Restricted performance shares | 5,168 | ||
Diluted weighted average shares outstanding | 1,262,344 | 1,249,495 | |
Share options | |||
Weighted average shares dilution adjustments - exclusions: | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 3,870 | 8,819 | |
Weighted average share price | (per share) | $ 6.20 | $ 3.97 | $ 3.44 |
Restricted share units | |||
Weighted average shares dilution adjustments - exclusions: | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,777 | ||
Restricted performance share units | |||
Weighted average shares dilution adjustments - exclusions: | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 4,708 |
INCOME TAX EXPENSE (RECOVERY) -
INCOME TAX EXPENSE (RECOVERY) - Current and deferred tax expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Current tax expense (recovery) | ||
Current period | $ 206.6 | $ 137.8 |
Adjustment for prior period | (1) | (7.9) |
Deferred tax expense | ||
Origination and reversal of temporary differences | 223 | 55.8 |
Impact of changes in tax rate | (1.6) | (0.1) |
Change in unrecognized deductible temporary differences | (156.3) | (35.6) |
Recognition of previously unrecognized tax losses | (24) | (11.2) |
Total tax expense | $ 246.7 | $ 138.8 |
INCOME TAX EXPENSE (RECOVERY)_2
INCOME TAX EXPENSE (RECOVERY) - Impact of U.S Tax reform (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Tax Reform | ||||
Income tax expense | $ 246.7 | $ 138.8 | ||
Applicable tax rate | 26.50% | 26.50% | ||
U.S Tax Reform | ||||
Tax Reform | ||||
Income tax expense | $ 4.6 | $ 8.7 | $ 93.4 | |
Applicable tax rate | 21.00% | 35.00% | ||
Alternative Minimum Tax | ||||
Tax Reform | ||||
Income tax expense | $ 124.4 |
INCOME TAX EXPENSE (RECOVERY)_3
INCOME TAX EXPENSE (RECOVERY) - Reconciliation of tax rate (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of average effective tax rate and applicable tax rate | ||
Combined statutory income tax rate (as a percent) | 26.50% | 26.50% |
Increase (decrease) resulting from: | ||
Mining taxes (as a percent) | 1.20% | 8.00% |
Percentage of depletion (as a percent) | (1.40%) | (3.40%) |
Difference in foreign tax rates and foreign exchange on deferred income taxes within income tax expense (as a percent) | 4.50% | 42.10% |
Change in unrecognized deferred tax assets (as a percent) | (4.10%) | 59.20% |
Over provided in prior periods (as a percent) | (0.40%) | (34.40%) |
Income not subject to tax (as a percent) | (0.70%) | (17.10%) |
Effect of non-deductible (non-taxable) impairment/(reversals) (as a percent) | (4.20%) | 0.20% |
Accounting expenses disallowed for tax (as a percent) | 2.30% | 17.80% |
Taxes on repatriation of foreign earnings (as a percent) | 0.50% | 12.40% |
AMT credit receivable due to US Tax Reform (as a percent) | (0.50%) | (7.80%) |
Other (as a percent) | 1.90% | 19.10% |
Effective tax rate (as a percent) | 25.60% | 122.60% |
INCOME TAX EXPENSE (RECOVERY)_4
INCOME TAX EXPENSE (RECOVERY) - Components of deferred tax (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income tax expense | |||
Deferred tax assets | $ 190.1 | $ 158.1 | |
Deferred tax liabilities - net | 269.3 | 220.2 | $ 222.3 |
Accrued expenses and other | |||
Income tax expense | |||
Deferred tax assets | 29.2 | 39.5 | |
Deferred tax liabilities | 2.7 | 2.4 | |
Property, plant and equipment | |||
Income tax expense | |||
Deferred tax assets | 26.3 | 25.5 | |
Deferred tax liabilities | 423.4 | 340.2 | |
Reclamation and remediation obligations | |||
Income tax expense | |||
Deferred tax assets | 88.4 | 69.5 | |
Deferred tax liabilities | 2.8 | ||
Inventory capitalization | |||
Income tax expense | |||
Deferred tax assets | 11.5 | 4.3 | |
Deferred tax liabilities | 30.5 | 35.7 | |
Non-capital loss | |||
Income tax expense | |||
Deferred tax assets | $ 34.7 | $ 19.3 |
INCOME TAX EXPENSE (RECOVERY)_5
INCOME TAX EXPENSE (RECOVERY) - Movements of deferred tax (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in deferred tax liability (asset) | ||
Balance at the beginning of the period | $ 220.2 | $ 222.3 |
Recognized in profit/loss | 41.1 | 8.9 |
Recognized in OCI | 8 | (11.1) |
Other | 0.1 | |
Balance at the end of the period | 269.3 | 220.2 |
Unrecognized deferred tax assets and liabilities | ||
Aggregated temporary differences associated with investments in subsidiaries | 7,300 | 6,700 |
Deductible temporary differences | 656.5 | 746.4 |
Tax losses | 441.3 | $ 551.2 |
Canada | 2027 - 2039 | ||
Non-capital losses that can be applied against future taxable profit | ||
Unused tax losses | 946.1 | |
United States | 2020 - 2033 | ||
Non-capital losses that can be applied against future taxable profit | ||
Unused tax losses | 54.8 | |
Chile | No expiry | ||
Non-capital losses that can be applied against future taxable profit | ||
Unused tax losses | 323 | |
Brazil | No expiry | ||
Non-capital losses that can be applied against future taxable profit | ||
Unused tax losses | 6.3 | |
Mauritania | 2021 - 2023 | ||
Non-capital losses that can be applied against future taxable profit | ||
Unused tax losses | 219.7 | |
Barbados | 2020 - 2025 | ||
Non-capital losses that can be applied against future taxable profit | ||
Unused tax losses | 677.3 | |
Luxembourg | Various | ||
Non-capital losses that can be applied against future taxable profit | ||
Unused tax losses | 74.4 | |
Other | Various | ||
Non-capital losses that can be applied against future taxable profit | ||
Unused tax losses | $ 56.7 |
SEGMENTED INFORMATION (Details)
SEGMENTED INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | ||
Metal sales | $ 3,497.3 | $ 3,212.6 |
Cost of sales | ||
Production cost of sales | 1,778.9 | 1,860.5 |
Depreciation, depletion and amortization | 731.3 | 772.4 |
Reversals of impairment charges | (361.8) | |
Total cost of sales | 2,148.4 | 2,632.9 |
Gross profit | 1,348.9 | 579.7 |
Other operating expense (income) | 108.5 | 137 |
Exploration and business development | 113.5 | 109.2 |
General and administrative | 135.8 | 133 |
Operating earnings | 991.1 | 200.5 |
Other income (expense) - net | 72.6 | 3.2 |
Equity in earnings (losses) of joint ventures, net | 0.1 | (0.3) |
Finance income | 7.9 | 11 |
Finance expense | (107.9) | (101.2) |
Earnings before tax | 963.8 | 113.2 |
Property, plant and equipment | 6,340 | 5,519.1 |
Total assets | 9,076 | 8,063.8 |
Capital expenditures (accrual basis) | 1,207.3 | 1,098.3 |
Corporate and other | ||
Revenue | ||
Metal sales | 1.1 | |
Cost of sales | ||
Depreciation, depletion and amortization | 8.7 | 6.3 |
Total cost of sales | 8.7 | 6.3 |
Gross profit | (8.7) | (5.2) |
Other operating expense (income) | 33.2 | 36.7 |
Exploration and business development | 59.8 | 58 |
General and administrative | 135.8 | 133 |
Operating earnings | (237.5) | (232.9) |
Property, plant and equipment | 380.9 | 340.9 |
Total assets | 1,030.1 | 914.8 |
Capital expenditures (accrual basis) | 27.1 | 5.8 |
Fort Knox | ||
Revenue | ||
Metal sales | 279.6 | 325.5 |
Cost of sales | ||
Production cost of sales | 213.7 | 214.4 |
Depreciation, depletion and amortization | 90.3 | 109.7 |
Total cost of sales | 304 | 324.1 |
Gross profit | (24.4) | 1.4 |
Other operating expense (income) | 25.1 | 38.2 |
Exploration and business development | 3.4 | 4.7 |
Operating earnings | (52.9) | (41.5) |
Property, plant and equipment | 421.1 | 363.3 |
Total assets | 633.2 | 590.1 |
Capital expenditures (accrual basis) | 149.3 | 95.1 |
Round Mountain | ||
Revenue | ||
Metal sales | 502.2 | 483.9 |
Cost of sales | ||
Production cost of sales | 250.6 | 277.6 |
Depreciation, depletion and amortization | 39.8 | 51 |
Total cost of sales | 290.4 | 328.6 |
Gross profit | 211.8 | 155.3 |
Other operating expense (income) | (0.3) | |
Exploration and business development | 4.8 | 1.2 |
Operating earnings | 207.3 | 154.1 |
Property, plant and equipment | 653.7 | 433.9 |
Total assets | 846.8 | 583.9 |
Capital expenditures (accrual basis) | 241.5 | 196.5 |
Bald Mountain | ||
Revenue | ||
Metal sales | 249.2 | 403.9 |
Cost of sales | ||
Production cost of sales | 136.6 | 174.1 |
Depreciation, depletion and amortization | 79.5 | 99.7 |
Total cost of sales | 216.1 | 273.8 |
Gross profit | 33.1 | 130.1 |
Other operating expense (income) | 7.8 | 7.9 |
Exploration and business development | 12.6 | 11.5 |
Operating earnings | 12.7 | 110.7 |
Property, plant and equipment | 685.1 | 513.5 |
Total assets | 862.5 | 686.1 |
Capital expenditures (accrual basis) | 249.3 | 161.1 |
Paracatu | ||
Revenue | ||
Metal sales | 856.3 | 663.1 |
Cost of sales | ||
Production cost of sales | 412.3 | 430.5 |
Depreciation, depletion and amortization | 163.4 | 148.9 |
Reversals of impairment charges | (200.7) | |
Total cost of sales | 375 | 579.4 |
Gross profit | 481.3 | 83.7 |
Other operating expense (income) | (10.9) | 13.8 |
Operating earnings | 492.2 | 69.9 |
Property, plant and equipment | 1,748.1 | 1,585.8 |
Total assets | 2,024 | 1,832.8 |
Capital expenditures (accrual basis) | 113.5 | 96 |
Maricunga | ||
Revenue | ||
Metal sales | 61.2 | 113.6 |
Cost of sales | ||
Production cost of sales | 31.5 | 65.7 |
Depreciation, depletion and amortization | 1.7 | 4 |
Total cost of sales | 33.2 | 69.7 |
Gross profit | 28 | 43.9 |
Other operating expense (income) | 17 | (1.3) |
Exploration and business development | 0.1 | 0.1 |
Operating earnings | 10.9 | 45.1 |
Property, plant and equipment | 40.6 | 39.5 |
Total assets | 58.5 | 126.6 |
Kupol | ||
Revenue | ||
Metal sales | 734.4 | 627.7 |
Cost of sales | ||
Production cost of sales | 314.1 | 288.2 |
Depreciation, depletion and amortization | 125.1 | 133.5 |
Total cost of sales | 439.2 | 421.7 |
Gross profit | 295.2 | 206 |
Other operating expense (income) | (8.9) | (0.4) |
Exploration and business development | 23 | 19.2 |
Operating earnings | 281.1 | 187.2 |
Property, plant and equipment | 332.8 | 418.4 |
Total assets | 1,053.4 | 1,054.9 |
Capital expenditures (accrual basis) | 39.7 | 63.6 |
Tasiast | ||
Revenue | ||
Metal sales | 532.8 | 307.8 |
Cost of sales | ||
Production cost of sales | 230.4 | 237.3 |
Depreciation, depletion and amortization | 130.2 | 95.5 |
Reversals of impairment charges | (161.1) | |
Total cost of sales | 199.5 | 332.8 |
Gross profit | 333.3 | (25) |
Other operating expense (income) | 46.4 | 52.4 |
Exploration and business development | 1.8 | 8.5 |
Operating earnings | 285.1 | (85.9) |
Property, plant and equipment | 1,924.8 | 1,591.6 |
Total assets | 2,312.5 | 1,940.6 |
Capital expenditures (accrual basis) | 370.5 | 454.7 |
Chirano | ||
Revenue | ||
Metal sales | 281.6 | 286 |
Cost of sales | ||
Production cost of sales | 189.7 | 172.7 |
Depreciation, depletion and amortization | 92.6 | 123.8 |
Total cost of sales | 282.3 | 296.5 |
Gross profit | (0.7) | (10.5) |
Other operating expense (income) | (0.9) | (10.3) |
Exploration and business development | 8 | 6 |
Operating earnings | (7.8) | (6.2) |
Property, plant and equipment | 152.9 | 232.2 |
Total assets | 255 | 334 |
Capital expenditures (accrual basis) | $ 16.4 | $ 25.5 |
SEGMENTED INFORMATION - Geograp
SEGMENTED INFORMATION - Geographic segment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segmented Information | ||
Metal sales | $ 3,497.3 | $ 3,212.6 |
Property, plant and equipment | 6,340 | 5,519.1 |
United States | ||
Segmented Information | ||
Metal sales | 1,031 | 1,214.4 |
Property, plant and equipment | 1,765 | 1,315.6 |
Russian Federation | ||
Segmented Information | ||
Metal sales | 734.4 | 627.7 |
Property, plant and equipment | 337.4 | 423.9 |
Brazil | ||
Segmented Information | ||
Metal sales | 856.3 | 663.1 |
Property, plant and equipment | 1,749.3 | 1,585.5 |
Chile | ||
Segmented Information | ||
Metal sales | 61.2 | 113.6 |
Property, plant and equipment | 394.1 | 358.2 |
Mauritania | ||
Segmented Information | ||
Metal sales | 532.8 | 307.8 |
Property, plant and equipment | 1,932.4 | 1,594.8 |
Ghana | ||
Segmented Information | ||
Metal sales | 281.6 | 286 |
Property, plant and equipment | $ 161.8 | $ 241.1 |
SEGMENTED INFORMATION - Signifi
SEGMENTED INFORMATION - Significant customers (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segmented Information | ||
Metal sales | $ 3,497.3 | $ 3,212.6 |
Percentage of total metal sales | 36.30% | 49.60% |
Customer 1 | ||
Segmented Information | ||
Metal sales | $ 517.3 | $ 505.1 |
Customer 2 | ||
Segmented Information | ||
Metal sales | 397.8 | 376.3 |
Customer 3 | ||
Segmented Information | ||
Metal sales | 355 | 360.8 |
Customer 4 | ||
Segmented Information | ||
Metal sales | 351.9 | |
Fort Knox | ||
Segmented Information | ||
Metal sales | 279.6 | 325.5 |
Fort Knox | Customer 1 | ||
Segmented Information | ||
Metal sales | 11.3 | 38.4 |
Fort Knox | Customer 2 | ||
Segmented Information | ||
Metal sales | 31.5 | |
Fort Knox | Customer 3 | ||
Segmented Information | ||
Metal sales | 24.2 | 56.1 |
Fort Knox | Customer 4 | ||
Segmented Information | ||
Metal sales | 17.5 | |
Round Mountain | ||
Segmented Information | ||
Metal sales | 502.2 | 483.9 |
Round Mountain | Customer 1 | ||
Segmented Information | ||
Metal sales | 56.3 | 96.2 |
Round Mountain | Customer 2 | ||
Segmented Information | ||
Metal sales | 49 | |
Round Mountain | Customer 3 | ||
Segmented Information | ||
Metal sales | 14.5 | 38.8 |
Round Mountain | Customer 4 | ||
Segmented Information | ||
Metal sales | 5.6 | |
Bald Mountain | ||
Segmented Information | ||
Metal sales | 249.2 | 403.9 |
Bald Mountain | Customer 1 | ||
Segmented Information | ||
Metal sales | 17 | 70.4 |
Bald Mountain | Customer 2 | ||
Segmented Information | ||
Metal sales | 40.4 | |
Bald Mountain | Customer 3 | ||
Segmented Information | ||
Metal sales | 16.7 | 19.8 |
Bald Mountain | Customer 4 | ||
Segmented Information | ||
Metal sales | 3.6 | |
Paracatu | ||
Segmented Information | ||
Metal sales | 856.3 | 663.1 |
Paracatu | Customer 1 | ||
Segmented Information | ||
Metal sales | 59.4 | 46.2 |
Paracatu | Customer 2 | ||
Segmented Information | ||
Metal sales | 76.8 | |
Paracatu | Customer 3 | ||
Segmented Information | ||
Metal sales | 181.1 | 75.3 |
Paracatu | Customer 4 | ||
Segmented Information | ||
Metal sales | 186.4 | |
Maricunga | ||
Segmented Information | ||
Metal sales | 61.2 | 113.6 |
Maricunga | Customer 1 | ||
Segmented Information | ||
Metal sales | 0.7 | 18.1 |
Maricunga | Customer 2 | ||
Segmented Information | ||
Metal sales | 8 | |
Maricunga | Customer 3 | ||
Segmented Information | ||
Metal sales | 4.1 | 38.7 |
Maricunga | Customer 4 | ||
Segmented Information | ||
Metal sales | 5.5 | |
Kupol | ||
Segmented Information | ||
Metal sales | 734.4 | 627.7 |
Kupol | Customer 1 | ||
Segmented Information | ||
Metal sales | 145.4 | |
Kupol | Customer 2 | ||
Segmented Information | ||
Metal sales | 55.8 | 376.3 |
Tasiast | ||
Segmented Information | ||
Metal sales | 532.8 | 307.8 |
Tasiast | Customer 1 | ||
Segmented Information | ||
Metal sales | 175.5 | 119.4 |
Tasiast | Customer 2 | ||
Segmented Information | ||
Metal sales | 78.5 | |
Tasiast | Customer 3 | ||
Segmented Information | ||
Metal sales | 66.6 | 75.5 |
Tasiast | Customer 4 | ||
Segmented Information | ||
Metal sales | 62 | |
Chirano | ||
Segmented Information | ||
Metal sales | 281.6 | 286 |
Chirano | Customer 1 | ||
Segmented Information | ||
Metal sales | 51.7 | 116.4 |
Chirano | Customer 2 | ||
Segmented Information | ||
Metal sales | 57.8 | |
Chirano | Customer 3 | ||
Segmented Information | ||
Metal sales | $ 47.8 | 56.6 |
Chirano | Customer 4 | ||
Segmented Information | ||
Metal sales | $ 71.3 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 02, 2016lawsuit |
Commitments and contingencies | |||
Future purchase commitments | $ 1,104.3 | $ 737.3 | |
Commitments for capital expenditures | $ 186.6 | $ 101.9 | |
CMM | Other regulatory matters | |||
Commitments and contingencies | |||
Number of lawsuits | lawsuit | 2 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Key Managment | ||
Related party transactions | ||
Cash compensation - Salaries, short-term incentives, and other benefits | $ 7.3 | $ 8.6 |
Long-term incentives, including share-based payments | 8.5 | 9.3 |
Termination and post-retirement benefits | 10.2 | |
Total compensation paid to key management personnel | 26 | 17.9 |
Puren | ||
Related party transactions | ||
Dividends received | $ 0 | $ 0 |
CONSOLIDATING FINANCIAL STATE_3
CONSOLIDATING FINANCIAL STATEMENTS - Balance sheet (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||||
Cash and cash equivalents | $ 575.1 | $ 349 | $ 1,025.8 | |
Restricted cash | 15.2 | 12.7 | ||
Accounts receivable and other assets | 130.2 | 101.4 | ||
Current income tax recoverable | 43.2 | 79 | ||
Inventories | 1,053.8 | 1,052 | ||
Unrealized fair value of derivative assets | 7.2 | 3.8 | ||
Current assets | 1,824.7 | 1,597.9 | ||
Non-current assets | ||||
Property, plant and equipment | 6,340 | 5,519.1 | ||
Goodwill | 158.8 | 162.7 | ||
Long-term investments | 126.2 | 155.9 | ||
Investments in joint ventures | 18.4 | 18.3 | ||
Unrealized fair value of derivative assets | 4.5 | 0.8 | ||
Other long-term assets | 568.2 | 564.1 | ||
Deferred tax assets | 35.2 | 45 | ||
Total assets | 9,076 | 8,063.8 | ||
Current liabilities | ||||
Accounts payable and accrued liabilities | 469.3 | 465.9 | ||
Current income tax payable | 68 | 21.7 | ||
Current portion of provisions | 57.9 | 72.6 | ||
Other current liabilities | 20.3 | 52.2 | ||
Current liabilities | 615.5 | 612.4 | ||
Non-current liabilities | ||||
Long-term debt and credit facilities | 1,837.4 | 1,735 | ||
Provisions | 838.6 | 816.4 | ||
Long-term lease liabilities | 38.9 | $ 35.6 | ||
Unrealized fair value of derivative liabilities | 0.8 | 9.6 | ||
Other long-term liabilities | 107.7 | 97.9 | ||
Deferred tax liabilities | 304.5 | 265.2 | ||
Total liabilities | 3,743.4 | 3,536.5 | ||
Common shareholders' equity | ||||
Common share capital | 14,926.2 | 14,913.4 | ||
Contributed surplus | 242.1 | 239.8 | ||
Accumulated deficit | (9,829.4) | (10,548) | ||
Accumulated other comprehensive income (loss) | (20.4) | (98.5) | 21.1 | |
Total common shareholders' equity | 5,318.5 | 4,506.7 | ||
Non-controlling interest | 14.1 | 20.6 | ||
Total equity | 5,332.6 | 4,527.3 | ||
Total liabilities and equity | 9,076 | 8,063.8 | ||
Total Guarantors | ||||
Current assets | ||||
Cash and cash equivalents | 244.4 | 133.5 | 390.3 | |
Restricted cash | 6.6 | 6.2 | ||
Accounts receivable and other assets | 63.8 | 40.1 | ||
Intercompany receivables | 1,515.5 | 1,381.1 | ||
Current income tax recoverable | 0.7 | 2.3 | ||
Inventories | 510.5 | 480.9 | ||
Unrealized fair value of derivative assets | 4.4 | 3.8 | ||
Current assets | 2,345.9 | 2,047.9 | ||
Non-current assets | ||||
Property, plant and equipment | 3,575.1 | 2,962.9 | ||
Goodwill | 158.8 | 158.8 | ||
Long-term investments | 116.5 | 145.9 | ||
Intercompany investments | 1,724.1 | 1,328.3 | ||
Unrealized fair value of derivative assets | 3.5 | 0.8 | ||
Other long-term assets | 180.2 | 199 | ||
Long-term intercompany receivables | 3,420 | 3,656 | ||
Total assets | 11,524.1 | 10,499.6 | ||
Current liabilities | ||||
Accounts payable and accrued liabilities | 297.8 | 282.4 | ||
Intercompany payables | 664.1 | 542.5 | ||
Current income tax payable | 65.4 | 14.1 | ||
Current portion of provisions | 25.7 | 23.6 | ||
Other current liabilities | 13.4 | 19.4 | ||
Current liabilities | 1,066.4 | 882 | ||
Non-current liabilities | ||||
Long-term debt and credit facilities | 1,837.4 | 1,735 | ||
Provisions | 459.8 | 413.9 | ||
Long-term lease liabilities | 29.9 | |||
Unrealized fair value of derivative liabilities | 0.3 | 7.5 | ||
Other long-term liabilities | 45 | 54.7 | ||
Long-term intercompany payables | 2,502.2 | 2,705.7 | ||
Deferred tax liabilities | 264.6 | 194.1 | ||
Total liabilities | 6,205.6 | 5,992.9 | ||
Common shareholders' equity | ||||
Common share capital | 14,926.2 | 14,913.4 | ||
Contributed surplus | 242.1 | 239.8 | ||
Accumulated deficit | (9,829.4) | (10,548) | ||
Accumulated other comprehensive income (loss) | (20.4) | (98.5) | ||
Total common shareholders' equity | 5,318.5 | 4,506.7 | ||
Total equity | 5,318.5 | 4,506.7 | ||
Total liabilities and equity | 11,524.1 | 10,499.6 | ||
Kinross Gold Corp. | ||||
Current assets | ||||
Cash and cash equivalents | 124.9 | 29.7 | 267.6 | |
Accounts receivable and other assets | 6.7 | 9.7 | ||
Intercompany receivables | 601.5 | 558.9 | ||
Inventories | 3.4 | 2.6 | ||
Unrealized fair value of derivative assets | 3.9 | 3.3 | ||
Current assets | 740.4 | 604.2 | ||
Non-current assets | ||||
Property, plant and equipment | 77.8 | 31.5 | ||
Long-term investments | 116.5 | 145.9 | ||
Intercompany investments | 4,354 | 3,557.8 | ||
Unrealized fair value of derivative assets | 1.8 | |||
Other long-term assets | 15.4 | 11.7 | ||
Long-term intercompany receivables | 3,215.1 | 3,215.3 | ||
Total assets | 8,521 | 7,566.4 | ||
Current liabilities | ||||
Accounts payable and accrued liabilities | 89.1 | 74.5 | ||
Intercompany payables | 123 | 131 | ||
Other current liabilities | 2.6 | 7.1 | ||
Current liabilities | 214.7 | 212.6 | ||
Non-current liabilities | ||||
Long-term debt and credit facilities | 1,837.4 | 1,735 | ||
Provisions | 11.4 | 10.9 | ||
Long-term lease liabilities | 18.4 | |||
Unrealized fair value of derivative liabilities | 0.3 | 3.9 | ||
Long-term intercompany payables | 1,120.3 | 1,097.3 | ||
Total liabilities | 3,202.5 | 3,059.7 | ||
Common shareholders' equity | ||||
Common share capital | 14,926.2 | 14,913.4 | ||
Contributed surplus | 242.1 | 239.8 | ||
Accumulated deficit | (9,829.4) | (10,548) | ||
Accumulated other comprehensive income (loss) | (20.4) | (98.5) | ||
Total common shareholders' equity | 5,318.5 | 4,506.7 | ||
Total equity | 5,318.5 | 4,506.7 | ||
Total liabilities and equity | 8,521 | 7,566.4 | ||
Guarantor Subsidiaries | ||||
Current assets | ||||
Cash and cash equivalents | 119.5 | 103.8 | 122.7 | |
Restricted cash | 6.6 | 6.2 | ||
Accounts receivable and other assets | 57.1 | 30.4 | ||
Intercompany receivables | 1,231 | 1,098 | ||
Current income tax recoverable | 0.7 | 2.3 | ||
Inventories | 507.1 | 478.3 | ||
Unrealized fair value of derivative assets | 0.5 | 0.5 | ||
Current assets | 1,922.5 | 1,719.5 | ||
Non-current assets | ||||
Property, plant and equipment | 3,497.3 | 2,931.4 | ||
Goodwill | 158.8 | 158.8 | ||
Intercompany investments | 4,497.2 | 3,983.5 | ||
Unrealized fair value of derivative assets | 1.7 | 0.8 | ||
Other long-term assets | 164.8 | 187.3 | ||
Long-term intercompany receivables | 1,964.7 | 2,421.7 | ||
Total assets | 12,207 | 11,403 | ||
Current liabilities | ||||
Accounts payable and accrued liabilities | 208.7 | 207.9 | ||
Intercompany payables | 858.1 | 687.3 | ||
Current income tax payable | 65.4 | 14.1 | ||
Current portion of provisions | 25.7 | 23.6 | ||
Other current liabilities | 10.8 | 12.3 | ||
Current liabilities | 1,168.7 | 945.2 | ||
Non-current liabilities | ||||
Provisions | 448.4 | 403 | ||
Long-term lease liabilities | 11.5 | |||
Unrealized fair value of derivative liabilities | 3.6 | |||
Other long-term liabilities | 45 | 54.7 | ||
Long-term intercompany payables | 3,141.7 | 3,589.4 | ||
Deferred tax liabilities | 264.6 | 194.1 | ||
Total liabilities | 5,079.9 | 5,190 | ||
Common shareholders' equity | ||||
Common share capital | 1,795.3 | 1,795.3 | ||
Contributed surplus | 3,476 | 3,442.6 | ||
Accumulated deficit | 1,875.3 | 1,001.6 | ||
Accumulated other comprehensive income (loss) | (19.5) | (26.5) | ||
Total common shareholders' equity | 7,127.1 | 6,213 | ||
Total equity | 7,127.1 | 6,213 | ||
Total liabilities and equity | 12,207 | 11,403 | ||
Guarantor Adjustments | ||||
Current assets | ||||
Intercompany receivables | (317) | (275.8) | ||
Current assets | (317) | (275.8) | ||
Non-current assets | ||||
Intercompany investments | (7,127.1) | (6,213) | ||
Long-term intercompany receivables | (1,759.8) | (1,981) | ||
Total assets | (9,203.9) | (8,469.8) | ||
Current liabilities | ||||
Intercompany payables | (317) | (275.8) | ||
Current liabilities | (317) | (275.8) | ||
Non-current liabilities | ||||
Long-term intercompany payables | (1,759.8) | (1,981) | ||
Total liabilities | (2,076.8) | (2,256.8) | ||
Common shareholders' equity | ||||
Common share capital | (1,795.3) | (1,795.3) | ||
Contributed surplus | (3,476) | (3,442.6) | ||
Accumulated deficit | (1,875.3) | (1,001.6) | ||
Accumulated other comprehensive income (loss) | 19.5 | 26.5 | ||
Total common shareholders' equity | (7,127.1) | (6,213) | ||
Total equity | (7,127.1) | (6,213) | ||
Total liabilities and equity | (9,203.9) | (8,469.8) | ||
Non-guarantors | ||||
Current assets | ||||
Cash and cash equivalents | 330.7 | 215.5 | $ 635.5 | |
Restricted cash | 8.6 | 6.5 | ||
Accounts receivable and other assets | 66.4 | 61.3 | ||
Intercompany receivables | 4,406.6 | 4,283.2 | ||
Current income tax recoverable | 42.5 | 76.7 | ||
Inventories | 543.3 | 571.1 | ||
Unrealized fair value of derivative assets | 2.8 | |||
Current assets | 5,400.9 | 5,214.3 | ||
Non-current assets | ||||
Property, plant and equipment | 2,764.9 | 2,556.2 | ||
Goodwill | 3.9 | |||
Long-term investments | 9.7 | 10 | ||
Investments in joint ventures | 18.4 | 18.3 | ||
Intercompany investments | 15,342.4 | 15,167 | ||
Unrealized fair value of derivative assets | 1 | |||
Other long-term assets | 388 | 365.1 | ||
Long-term intercompany receivables | 3,500.3 | 3,576 | ||
Deferred tax assets | 35.2 | 45 | ||
Total assets | 27,460.8 | 26,955.8 | ||
Current liabilities | ||||
Accounts payable and accrued liabilities | 171.5 | 183.5 | ||
Intercompany payables | 5,258 | 5,121.8 | ||
Current income tax payable | 2.6 | 7.6 | ||
Current portion of provisions | 32.2 | 49 | ||
Other current liabilities | 6.9 | 32.8 | ||
Current liabilities | 5,471.2 | 5,394.7 | ||
Non-current liabilities | ||||
Provisions | 378.8 | 402.5 | ||
Long-term lease liabilities | 9 | |||
Unrealized fair value of derivative liabilities | 0.5 | 2.1 | ||
Other long-term liabilities | 62.7 | 43.2 | ||
Long-term intercompany payables | 4,418.1 | 4,526.3 | ||
Deferred tax liabilities | 39.9 | 71.1 | ||
Total liabilities | 10,380.2 | 10,439.9 | ||
Common shareholders' equity | ||||
Common share capital | 19,276.8 | 19,217.6 | ||
Contributed surplus | 6,556 | 6,415.6 | ||
Accumulated deficit | (8,712.2) | (9,078.2) | ||
Accumulated other comprehensive income (loss) | (54.1) | (59.7) | ||
Total common shareholders' equity | 17,066.5 | 16,495.3 | ||
Non-controlling interest | 14.1 | 20.6 | ||
Total equity | 17,080.6 | 16,515.9 | ||
Total liabilities and equity | 27,460.8 | 26,955.8 | ||
Eliminations | ||||
Current assets | ||||
Intercompany receivables | (5,922.1) | (5,664.3) | ||
Current assets | (5,922.1) | (5,664.3) | ||
Non-current assets | ||||
Intercompany investments | (17,066.5) | (16,495.3) | ||
Long-term intercompany receivables | (6,920.3) | (7,232) | ||
Total assets | (29,908.9) | (29,391.6) | ||
Current liabilities | ||||
Intercompany payables | (5,922.1) | (5,664.3) | ||
Current liabilities | (5,922.1) | (5,664.3) | ||
Non-current liabilities | ||||
Long-term intercompany payables | (6,920.3) | (7,232) | ||
Total liabilities | (12,842.4) | (12,896.3) | ||
Common shareholders' equity | ||||
Common share capital | (19,276.8) | (19,217.6) | ||
Contributed surplus | (6,556) | (6,415.6) | ||
Accumulated deficit | 8,712.2 | 9,078.2 | ||
Accumulated other comprehensive income (loss) | 54.1 | 59.7 | ||
Total common shareholders' equity | (17,066.5) | (16,495.3) | ||
Total equity | (17,066.5) | (16,495.3) | ||
Total liabilities and equity | $ (29,908.9) | $ (29,391.6) |
CONSOLIDATING FINANCIAL STATE_4
CONSOLIDATING FINANCIAL STATEMENTS - Statement of operations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | ||
Metal sales | $ 3,497.3 | $ 3,212.6 |
Cost of sales | ||
Production cost of sales | 1,778.9 | 1,860.5 |
Depreciation, depletion and amortization | 731.3 | 772.4 |
Reversals of impairment charges | (361.8) | |
Total cost of sales | 2,148.4 | 2,632.9 |
Gross profit | 1,348.9 | 579.7 |
Other operating expense | 108.5 | 137 |
Exploration and business development | 113.5 | 109.2 |
General and administrative | 135.8 | 133 |
Operating earnings | 991.1 | 200.5 |
Other income (expense) - net | 72.6 | 3.2 |
Equity in earnings (losses) of associate, joint ventures and intercompany investments | 0.1 | (0.3) |
Finance income | 7.9 | 11 |
Finance expense | (107.9) | (101.2) |
Earnings before tax | 963.8 | 113.2 |
Income tax expense - net | (246.7) | (138.8) |
Net earnings (loss) | 717.1 | (25.6) |
Net earnings (loss) attributable to: | ||
Non-controlling interest | (1.5) | (2) |
Common shareholders | 718.6 | (23.6) |
Total Guarantors | ||
Revenue | ||
Metal sales | 1,945.3 | 1,989.2 |
Cost of sales | ||
Production cost of sales | 1,072.8 | 1,205.3 |
Depreciation, depletion and amortization | 376.8 | 413 |
Reversals of impairment charges | (200.7) | |
Total cost of sales | 1,248.9 | 1,618.3 |
Gross profit | 696.4 | 370.9 |
Other operating expense | 39.6 | 67.5 |
Exploration and business development | 50.4 | 43.5 |
General and administrative | 90.8 | 80.5 |
Operating earnings | 515.6 | 179.4 |
Other income (expense) - net | 35.1 | (45) |
Equity in earnings (losses) of associate, joint ventures and intercompany investments | 333.2 | (35.7) |
Finance income | 133.4 | 116.4 |
Finance expense | (131.5) | (161) |
Earnings before tax | 885.8 | 54.1 |
Income tax expense - net | (167.2) | (77.7) |
Net earnings (loss) | 718.6 | (23.6) |
Net earnings (loss) attributable to: | ||
Common shareholders | 718.6 | (23.6) |
Kinross Gold Corp. | ||
Revenue | ||
Metal sales | 1,892 | 1,936 |
Cost of sales | ||
Production cost of sales | 1,857.5 | 1,897.7 |
Depreciation, depletion and amortization | 3.3 | 3.7 |
Total cost of sales | 1,860.8 | 1,901.4 |
Gross profit | 31.2 | 34.6 |
Other operating expense | 18 | 7.6 |
Exploration and business development | 29.6 | 26.1 |
General and administrative | 86.1 | 76 |
Operating earnings | (102.5) | (75.1) |
Other income (expense) - net | 33 | 12.9 |
Equity in earnings (losses) of associate, joint ventures and intercompany investments | 767.1 | 41.4 |
Finance income | 83.5 | 64.7 |
Finance expense | (63.7) | (64.6) |
Earnings before tax | 717.4 | (20.7) |
Income tax expense - net | 1.2 | (2.9) |
Net earnings (loss) | 718.6 | (23.6) |
Net earnings (loss) attributable to: | ||
Common shareholders | 718.6 | (23.6) |
Guarantor Subsidiaries | ||
Revenue | ||
Metal sales | 1,848 | 1,837.2 |
Cost of sales | ||
Production cost of sales | 1,009.8 | 1,091.6 |
Depreciation, depletion and amortization | 373.7 | 409.3 |
Reversals of impairment charges | (200.7) | |
Total cost of sales | 1,182.8 | 1,500.9 |
Gross profit | 665.2 | 336.3 |
Other operating expense | 21.6 | 59.9 |
Exploration and business development | 20.8 | 17.4 |
General and administrative | 4.7 | 4.5 |
Operating earnings | 618.1 | 254.5 |
Other income (expense) - net | 2.1 | (57.9) |
Equity in earnings (losses) of associate, joint ventures and intercompany investments | 390.5 | 1 |
Finance income | 57.1 | 59.8 |
Finance expense | (75) | (104.5) |
Earnings before tax | 992.8 | 152.9 |
Income tax expense - net | (168.4) | (74.8) |
Net earnings (loss) | 824.4 | 78.1 |
Net earnings (loss) attributable to: | ||
Common shareholders | 824.4 | 78.1 |
Guarantor Adjustments | ||
Revenue | ||
Metal sales | (1,794.7) | (1,784) |
Cost of sales | ||
Production cost of sales | (1,794.5) | (1,784) |
Depreciation, depletion and amortization | (0.2) | |
Total cost of sales | (1,794.7) | (1,784) |
Equity in earnings (losses) of associate, joint ventures and intercompany investments | (824.4) | (78.1) |
Finance income | (7.2) | (8.1) |
Finance expense | 7.2 | 8.1 |
Earnings before tax | (824.4) | (78.1) |
Net earnings (loss) | (824.4) | (78.1) |
Net earnings (loss) attributable to: | ||
Common shareholders | (824.4) | (78.1) |
Non-guarantors | ||
Revenue | ||
Metal sales | 1,552 | 1,223.4 |
Cost of sales | ||
Production cost of sales | 706.1 | 655.2 |
Depreciation, depletion and amortization | 354.5 | 359.4 |
Reversals of impairment charges | (161.1) | |
Total cost of sales | 899.5 | 1,014.6 |
Gross profit | 652.5 | 208.8 |
Other operating expense | 68.9 | 69.5 |
Exploration and business development | 63.1 | 65.7 |
General and administrative | 45 | 52.5 |
Operating earnings | 475.5 | 21.1 |
Other income (expense) - net | 249.2 | 460.1 |
Equity in earnings (losses) of associate, joint ventures and intercompany investments | 0.1 | 0.1 |
Finance income | 89.7 | 123 |
Finance expense | (191.6) | (168.6) |
Earnings before tax | 622.9 | 435.7 |
Income tax expense - net | (79.5) | (61.1) |
Net earnings (loss) | 543.4 | 374.6 |
Net earnings (loss) attributable to: | ||
Non-controlling interest | (1.5) | (2) |
Common shareholders | 544.9 | 376.6 |
Eliminations | ||
Cost of sales | ||
Other income (expense) - net | (211.7) | (411.9) |
Equity in earnings (losses) of associate, joint ventures and intercompany investments | (333.2) | 35.3 |
Finance income | (215.2) | (228.4) |
Finance expense | 215.2 | 228.4 |
Earnings before tax | (544.9) | (376.6) |
Net earnings (loss) | (544.9) | (376.6) |
Net earnings (loss) attributable to: | ||
Common shareholders | $ (544.9) | $ (376.6) |
CONSOLIDATING FINANCIAL STATE_5
CONSOLIDATING FINANCIAL STATEMENTS - Comprehensive income (loss) statement (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidating financial statements | ||
Net earnings (loss) | $ 717.1 | $ (25.6) |
Items that will not be reclassified to profit or loss: | ||
Equity investments at fair value through other comprehensive income ("FVOCI") - net change in fair value | 49 | (25.8) |
Items to be reclassified to profit or loss in subsequent periods: | ||
Cash flow hedges - effective portion of changes in fair value | 23.6 | (47.9) |
Cash flow hedges - reclassified to profit or loss | 5.5 | (9.1) |
Total other comprehensive income (loss), net of tax | 78.1 | (82.8) |
Total comprehensive income (loss) | 795.2 | (108.4) |
Attributable to non-controlling interest | (1.5) | (2) |
Attributable to common shareholders | 796.7 | (106.4) |
Income tax expense (recovery), equity investments | 0.3 | (0.3) |
Income tax expense (recovery), cash flow hedges - effective portion | 4.5 | (20.9) |
Income tax expense, cash flow hedges- reclassed to profit or loss | 3.2 | 0.2 |
Total Guarantors | ||
Consolidating financial statements | ||
Net earnings (loss) | 718.6 | (23.6) |
Items that will not be reclassified to profit or loss: | ||
Equity investments at fair value through other comprehensive income ("FVOCI") - net change in fair value | 49.6 | (24.2) |
Items to be reclassified to profit or loss in subsequent periods: | ||
Cash flow hedges - effective portion of changes in fair value | 23.6 | (47.9) |
Cash flow hedges - reclassified to profit or loss | 5.5 | (9.1) |
Total other comprehensive income (loss), net of tax | 78.7 | (81.2) |
Equity in other comprehensive income (loss) of intercompany investments | (0.6) | (1.6) |
Total comprehensive income (loss) | 796.7 | (106.4) |
Attributable to common shareholders | 796.7 | (106.4) |
Income tax expense (recovery), cash flow hedges - effective portion | 4.5 | (20.9) |
Income tax expense, cash flow hedges- reclassed to profit or loss | 3.2 | 0.2 |
Kinross Gold Corp. | ||
Consolidating financial statements | ||
Net earnings (loss) | 718.6 | (23.6) |
Items that will not be reclassified to profit or loss: | ||
Equity investments at fair value through other comprehensive income ("FVOCI") - net change in fair value | 49.6 | (24.2) |
Items to be reclassified to profit or loss in subsequent periods: | ||
Cash flow hedges - effective portion of changes in fair value | 14.2 | (12.1) |
Cash flow hedges - reclassified to profit or loss | (0.3) | (6.7) |
Total other comprehensive income (loss), net of tax | 63.5 | (43) |
Equity in other comprehensive income (loss) of intercompany investments | 14.6 | (39.8) |
Total comprehensive income (loss) | 796.7 | (106.4) |
Attributable to common shareholders | 796.7 | (106.4) |
Income tax expense (recovery), cash flow hedges - effective portion | 1.3 | (3) |
Income tax expense, cash flow hedges- reclassed to profit or loss | (0.1) | |
Guarantor Subsidiaries | ||
Consolidating financial statements | ||
Net earnings (loss) | 824.4 | 78.1 |
Items to be reclassified to profit or loss in subsequent periods: | ||
Cash flow hedges - effective portion of changes in fair value | 9.4 | (35.8) |
Cash flow hedges - reclassified to profit or loss | 5.8 | (2.4) |
Total other comprehensive income (loss), net of tax | 15.2 | (38.2) |
Total comprehensive income (loss) | 839.6 | 39.9 |
Attributable to common shareholders | 839.6 | 39.9 |
Income tax expense (recovery), cash flow hedges - effective portion | 3.2 | (17.9) |
Income tax expense, cash flow hedges- reclassed to profit or loss | 3.3 | 0.2 |
Guarantor Adjustments | ||
Consolidating financial statements | ||
Net earnings (loss) | (824.4) | (78.1) |
Items to be reclassified to profit or loss in subsequent periods: | ||
Equity in other comprehensive income (loss) of intercompany investments | (15.2) | 38.2 |
Total comprehensive income (loss) | (839.6) | (39.9) |
Attributable to common shareholders | (839.6) | (39.9) |
Non-guarantors | ||
Consolidating financial statements | ||
Net earnings (loss) | 543.4 | 374.6 |
Items that will not be reclassified to profit or loss: | ||
Equity investments at fair value through other comprehensive income ("FVOCI") - net change in fair value | (0.6) | (1.6) |
Items to be reclassified to profit or loss in subsequent periods: | ||
Total other comprehensive income (loss), net of tax | (0.6) | (1.6) |
Total comprehensive income (loss) | 542.8 | 373 |
Attributable to non-controlling interest | (1.5) | (2) |
Attributable to common shareholders | 544.3 | 375 |
Income tax expense (recovery), equity investments | 0.3 | (0.3) |
Eliminations | ||
Consolidating financial statements | ||
Net earnings (loss) | (544.9) | (376.6) |
Items to be reclassified to profit or loss in subsequent periods: | ||
Equity in other comprehensive income (loss) of intercompany investments | 0.6 | 1.6 |
Total comprehensive income (loss) | (544.3) | (375) |
Attributable to common shareholders | $ (544.3) | $ (375) |
CONSOLIDATING FINANCIAL STATE_6
CONSOLIDATING FINANCIAL STATEMENTS - Cash flows (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating: | ||
Net earnings (loss) | $ 717.1 | $ (25.6) |
Adjustments to reconcile net earnings (loss) to net cash provided from (used in) operating activities: | ||
Depreciation, depletion and amortization | 731.3 | 772.4 |
Gain on disposition of associate and other interests - net | (2.1) | |
Reversals of impairment charges | (361.8) | |
Equity in (earnings) losses of joint ventures and intercompany investments | (0.1) | 0.3 |
Share-based compensation expense | 14.3 | 14.6 |
Finance expense | 107.9 | 101.2 |
Deferred tax expense (recovery) | 41.1 | 8.9 |
Foreign exchange (gains) losses and other | (53.1) | 12.5 |
Reclamation recovery | (11.9) | (8) |
Changes in operating assets and liabilities: | ||
Accounts receivable and other assets | (64.5) | (22.7) |
Inventories | 53.8 | (5.7) |
Accounts payable and accrued liabilities | 165.9 | 69.8 |
Cash flow provided from (used in) operating activities | 1,340 | 915.6 |
Income taxes recovered (paid) | (115.1) | (126.9) |
Net cash flow provided from operating activities | 1,224.9 | 788.7 |
Investing: | ||
Additions to property, plant and equipment | (1,105.2) | (1,043.4) |
Acquisitions | (30) | (304.2) |
Net proceeds from the sale of (additions to) long-term investments and other assets | 71.6 | (52.9) |
Net proceeds from the sale of property, plant and equipment | 31.9 | 6.4 |
Increase in restricted cash | (2.5) | (0.6) |
Interest received and other - net | 7.6 | 7.7 |
Net cash flow used in investing activities | (1,026.6) | (1,387) |
Financing: | ||
Proceeds from drawdown of debt | 300 | 80 |
Repayment of debt | (200) | (80) |
Payment of lease liabilities | (14.3) | |
Interest paid | (55.6) | (57.9) |
Dividends paid to non-controlling interest | (5) | (13) |
Other - net | (1.7) | |
Net cash flow provided from (used in) financing activities | 25.1 | (72.6) |
Effect of exchange rate changes on cash and cash equivalents | 2.7 | (5.9) |
Increase (decrease) in cash and cash equivalents | 226.1 | (676.8) |
Cash and cash equivalents, beginning of period | 349 | 1,025.8 |
Cash and cash equivalents, end of period | 575.1 | 349 |
Total Guarantors | ||
Operating: | ||
Net earnings (loss) | 718.6 | (23.6) |
Adjustments to reconcile net earnings (loss) to net cash provided from (used in) operating activities: | ||
Depreciation, depletion and amortization | 376.8 | 413 |
Reversals of impairment charges | (200.7) | |
Equity in (earnings) losses of joint ventures and intercompany investments | (333.2) | 35.7 |
Share-based compensation expense | 14.3 | 14.6 |
Finance expense | 131.5 | 161 |
Deferred tax expense (recovery) | 64.6 | 45 |
Foreign exchange (gains) losses and other | (20.2) | (3) |
Changes in operating assets and liabilities: | ||
Accounts receivable and other assets | (15.6) | 6.3 |
Inventories | 12 | 17.5 |
Accounts payable and accrued liabilities | 84.4 | (11.1) |
Cash flow provided from (used in) operating activities | 832.5 | 655.4 |
Income taxes recovered (paid) | (57) | (28.4) |
Net cash flow provided from operating activities | 775.5 | 627 |
Investing: | ||
Additions to property, plant and equipment | (727.1) | (531.1) |
Acquisitions | (269.2) | |
Net proceeds from the sale of (additions to) long-term investments and other assets | 104.2 | (12.8) |
Net proceeds from the sale of property, plant and equipment | 12.3 | 0.5 |
Increase in restricted cash | (0.4) | (0.6) |
Interest received and other - net | 2.1 | 3.6 |
Net cash flow used in investing activities | (608.9) | (809.6) |
Financing: | ||
Proceeds from drawdown of debt | 300 | 80 |
Repayment of debt | (200) | (80) |
Payment of lease liabilities | (10.6) | |
Interest paid | (55.6) | (57.9) |
Dividends received from (paid to) common shareholders and subsidiaries | (22.3) | 0.5 |
Intercompany advances | (71.1) | (15.9) |
Other - net | 3.9 | (0.9) |
Net cash flow provided from (used in) financing activities | (55.7) | (74.2) |
Increase (decrease) in cash and cash equivalents | 110.9 | (256.8) |
Cash and cash equivalents, beginning of period | 133.5 | 390.3 |
Cash and cash equivalents, end of period | 244.4 | 133.5 |
Kinross Gold Corp. | ||
Operating: | ||
Net earnings (loss) | 718.6 | (23.6) |
Adjustments to reconcile net earnings (loss) to net cash provided from (used in) operating activities: | ||
Depreciation, depletion and amortization | 3.3 | 3.7 |
Equity in (earnings) losses of joint ventures and intercompany investments | (767.1) | (41.4) |
Share-based compensation expense | 14.3 | 14.6 |
Finance expense | 63.7 | 64.6 |
Deferred tax expense (recovery) | (1.2) | 3 |
Foreign exchange (gains) losses and other | (9.8) | 5.4 |
Changes in operating assets and liabilities: | ||
Accounts receivable and other assets | (1.2) | (1.6) |
Inventories | (0.8) | (0.5) |
Accounts payable and accrued liabilities | 4.1 | (23.9) |
Cash flow provided from (used in) operating activities | 23.9 | 0.3 |
Income taxes recovered (paid) | 0.1 | |
Net cash flow provided from operating activities | 23.9 | 0.4 |
Investing: | ||
Additions to property, plant and equipment | (30.7) | (7.4) |
Net proceeds from the sale of (additions to) long-term investments and other assets | 126.8 | 10.7 |
Net proceeds from the sale of property, plant and equipment | 12 | |
Interest received and other - net | 0.5 | 2.2 |
Net cash flow used in investing activities | 108.6 | 5.5 |
Financing: | ||
Proceeds from drawdown of debt | 300 | 80 |
Repayment of debt | (200) | (80) |
Payment of lease liabilities | (2) | |
Interest paid | (55.6) | (57.9) |
Dividends received from (paid to) common shareholders and subsidiaries | 0.1 | |
Intercompany advances | (83.6) | (185.1) |
Other - net | 3.9 | (0.9) |
Net cash flow provided from (used in) financing activities | (37.3) | (243.8) |
Increase (decrease) in cash and cash equivalents | 95.2 | (237.9) |
Cash and cash equivalents, beginning of period | 29.7 | 267.6 |
Cash and cash equivalents, end of period | 124.9 | 29.7 |
Guarantor Subsidiaries | ||
Operating: | ||
Net earnings (loss) | 824.4 | 78.1 |
Adjustments to reconcile net earnings (loss) to net cash provided from (used in) operating activities: | ||
Depreciation, depletion and amortization | 373.7 | 409.3 |
Reversals of impairment charges | (200.7) | |
Equity in (earnings) losses of joint ventures and intercompany investments | (390.5) | (1) |
Finance expense | 75 | 104.5 |
Deferred tax expense (recovery) | 65.8 | 42 |
Foreign exchange (gains) losses and other | (10.4) | (8.4) |
Changes in operating assets and liabilities: | ||
Accounts receivable and other assets | (14.4) | 7.9 |
Inventories | 12.6 | 18 |
Accounts payable and accrued liabilities | 80.3 | 12.8 |
Cash flow provided from (used in) operating activities | 815.8 | 663.2 |
Income taxes recovered (paid) | (57) | (28.5) |
Net cash flow provided from operating activities | 758.8 | 634.7 |
Investing: | ||
Additions to property, plant and equipment | (696.4) | (523.7) |
Acquisitions | (269.2) | |
Net proceeds from the sale of (additions to) long-term investments and other assets | (22.6) | (23.5) |
Net proceeds from the sale of property, plant and equipment | 0.3 | 0.5 |
Increase in restricted cash | (0.4) | (0.6) |
Interest received and other - net | 1.6 | 1.4 |
Net cash flow used in investing activities | (717.5) | (815.1) |
Financing: | ||
Payment of lease liabilities | (8.6) | |
Dividends received from (paid to) common shareholders and subsidiaries | (22.3) | 0.4 |
Intercompany advances | 5.3 | 161.1 |
Net cash flow provided from (used in) financing activities | (25.6) | 161.5 |
Increase (decrease) in cash and cash equivalents | 15.7 | (18.9) |
Cash and cash equivalents, beginning of period | 103.8 | 122.7 |
Cash and cash equivalents, end of period | 119.5 | 103.8 |
Guarantor Adjustments | ||
Operating: | ||
Net earnings (loss) | (824.4) | (78.1) |
Adjustments to reconcile net earnings (loss) to net cash provided from (used in) operating activities: | ||
Depreciation, depletion and amortization | (0.2) | |
Equity in (earnings) losses of joint ventures and intercompany investments | 824.4 | 78.1 |
Finance expense | (7.2) | (8.1) |
Changes in operating assets and liabilities: | ||
Inventories | 0.2 | |
Cash flow provided from (used in) operating activities | (7.2) | (8.1) |
Net cash flow provided from operating activities | (7.2) | (8.1) |
Financing: | ||
Intercompany advances | 7.2 | 8.1 |
Net cash flow provided from (used in) financing activities | 7.2 | 8.1 |
Non-guarantors | ||
Operating: | ||
Net earnings (loss) | 543.4 | 374.6 |
Adjustments to reconcile net earnings (loss) to net cash provided from (used in) operating activities: | ||
Depreciation, depletion and amortization | 354.5 | 359.4 |
Gain on disposition of associate and other interests - net | (2.1) | |
Reversals of impairment charges | (161.1) | |
Equity in (earnings) losses of joint ventures and intercompany investments | (0.1) | (0.1) |
Finance expense | 191.6 | 168.6 |
Deferred tax expense (recovery) | (23.5) | (36.1) |
Foreign exchange (gains) losses and other | (32.9) | 15.5 |
Reclamation recovery | (11.9) | (8) |
Changes in operating assets and liabilities: | ||
Accounts receivable and other assets | (48.9) | (29) |
Inventories | 41.8 | (23.2) |
Accounts payable and accrued liabilities | 81.5 | 80.9 |
Cash flow provided from (used in) operating activities | 934.4 | 900.5 |
Income taxes recovered (paid) | (58.1) | (98.5) |
Net cash flow provided from operating activities | 876.3 | 802 |
Investing: | ||
Additions to property, plant and equipment | (378.1) | (512.3) |
Acquisitions | (30) | (35) |
Net proceeds from the sale of (additions to) long-term investments and other assets | (32.6) | (40.1) |
Net proceeds from the sale of property, plant and equipment | 19.6 | 5.9 |
Increase in restricted cash | (2.1) | |
Interest received and other - net | 5.5 | 4.1 |
Net cash flow used in investing activities | (417.7) | (577.4) |
Financing: | ||
Payment of lease liabilities | (3.7) | |
Dividends received from (paid to) common shareholders and subsidiaries | (189.4) | (412.4) |
Dividends paid to non-controlling interest | (5) | (13) |
Intercompany advances | (144.1) | (212.5) |
Other - net | (3.9) | (0.8) |
Net cash flow provided from (used in) financing activities | (346.1) | (638.7) |
Effect of exchange rate changes on cash and cash equivalents | 2.7 | (5.9) |
Increase (decrease) in cash and cash equivalents | 115.2 | (420) |
Cash and cash equivalents, beginning of period | 215.5 | 635.5 |
Cash and cash equivalents, end of period | 330.7 | 215.5 |
Eliminations | ||
Operating: | ||
Net earnings (loss) | (544.9) | (376.6) |
Adjustments to reconcile net earnings (loss) to net cash provided from (used in) operating activities: | ||
Equity in (earnings) losses of joint ventures and intercompany investments | 333.2 | (35.3) |
Finance expense | (215.2) | (228.4) |
Changes in operating assets and liabilities: | ||
Cash flow provided from (used in) operating activities | (426.9) | (640.3) |
Net cash flow provided from operating activities | (426.9) | (640.3) |
Financing: | ||
Dividends received from (paid to) common shareholders and subsidiaries | 211.7 | 411.9 |
Intercompany advances | 215.2 | 228.4 |
Net cash flow provided from (used in) financing activities | $ 426.9 | $ 640.3 |