Headwater Gold Inc. press release
Kinross reports 2025 first-quarter results
CSE - Canadian National Stock Exchange · Gold · Silver · Arsenic · Antimony · Mercury · Selenium · Molybdenum · Gypsum · Zeolite · Canada
Free cash flow more than doubled year-over-year driven by strong operating performance Targeting $650 million in return of capital to shareholders in 2025
TORONTO, May 06, 2025 (GLOBE NEWSWIRE) -- Kinross Gold Corporation (TSX: K, NYSE: KGC) (“Kinross” or the “Company”) today announced its results for the first quarter ended March 31, 2025. This news release contains forward-looking information about expected future events and financial and operating performance of the Company. We refer to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located on pages 25 and 26 of this release. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.
2025 first-quarter highlights:
Production 1 of 512,088 gold equivalent ounces (Au eq. oz.). Production cost of sales 2 of $1,043 per Au eq. oz. sold and attributable production cost of sales 1 of $1,038 per Au eq. oz. sold. Attributable all-in sustaining cost 1 of $1,355 per Au eq. oz. sold. Operating cash flow 3 of $597.1 million. Attributable free cash flow 1 of $370.8 million. Margins 4 increased by 67% to $1,814 per Au eq. oz. sold, outpacing the rise in the average realized gold price. Reported earnings 5 of $368.0 million, or $0.30 per share, with adjusted net earnings 6 , 7 of $364.0 million, or $0.30 per share. On track to meet annual guidance: On an attributable basis 1 , Kinross expects to produce 2.0 million Au eq. oz. (+/- 5%) at a production cost of sales per Au eq. oz. 1 of $1,120 (+/- 5%) and all-in sustaining cost 1 of $1,500 (+/- 5%) per ounce sold for 2025. Total attributable capital expenditures 1 are forecast to be $1,150 million (+/- 5%). Balance sheet strength: Kinross has improved its debt metrics, repaying the remaining $200.0 million of its term loan, while strengthening its balance sheet. Cash and cash equivalents increased to $694.6 million, and the Company has total liquidity 8 of approximately $2.3 billion at March 31, 2025. On March 27, 2025, Moody’s Investors Service (“Moody’s”) announced that it upgraded Kinross’ outlook to positive from stable and affirmed the Company’s investment grade rating of Baa3.
Return of capital to shareholders:
Kinross’ Board of Directors declared a quarterly dividend of $0.03 per common share payable on June 12, 2025, to shareholders of record at the close of business on May 29, 2025. Kinross has reactivated a share buyback program and re-purchased $60 million in shares to date in 2025. Full-year share repurchases are targeted to be a minimum of $500 million assuming recent gold prices are sustained and operations continue to deliver on plan.
1 Unless otherwise stated, production figures in this news release are on an attributable basis. “Attributable” includes Kinross’ 70% share of Manh Choh production, costs, cash flows and capital expenditures. Financial figures include 100% of Manh Choh results except when denoted as attributable. Attributable figures are non-GAAP financial measures and ratios. Refer to footnote 6. 2 “Production cost of sales per equivalent ounce sold” is defined as production cost of sales, as reported on the interim condensed consolidated statements of operations, divided by total gold equivalent ounces sold. 3 Operating cash flow figures in this release represent “Net cash flow provided from operating activities,” as reported on the interim condensed consolidated statements of cash flows. 4 “Margins” per equivalent ounce sold is defined as average realized gold price per ounce less production cost of sales per equivalent ounce sold. 5 Earnings, net earnings, and reported net earnings figures in this news release represent “Net earnings attributable to common shareholders,” as reported on the interim condensed consolidated statements of operations. 6 These figures are non-GAAP financial measures and ratios, as applicable, and are defined and reconciled on pages 16 to 22 of this news release. Non-GAAP financial measures and ratios have no standardized meaning under International Financial Reporting Standards (“IFRS”) and therefore, may not be comparable to similar measures presented by other issuers. 7 Adjusted net earnings figures in this news release represent “Adjusted net earnings attributable to common shareholders.” 8 “Total liquidity” is defined as the sum of cash and cash equivalents, as reported on the interim condensed consolidated balance sheets, and available credit under the Company’s credit facilities (as calculated in Section 6 Liquidity and Capital Resources of Kinross’ MD&A for the three months ended March 31, 2025).
Operations:
Paracatu had a solid quarter driven by strong grades and improved recoveries, delivering high margin production. Kinross implemented additional gravity circuit infrastructure contributing to the improved recoveries. Tasiast performed well during the quarter driven by strong grades and recoveries following a number of optimization initiatives to the mill. Kinross has re-started the mill at Tasiast . The Company does not expect the fire to affect Tasiast’s annual guidance. Fort Knox increased production and lowered costs quarter-over-quarter, generating significant free cash flow.
Development and exploration projects:
Kinross’ pipeline of development projects continues to advance. Great Bear ’s Advanced Exploration (AEX) program is progressing, with construction and earthworks underway, and detailed engineering near completion. At Round Mountain Phase X , the exploration decline is advancing well, with over 3,900 metres developed to date. Infill drilling continues to confirm strong grades and widths in the primary target zones. At Curlew , drill results continue to demonstrate increased grades and widths that could support high-margin production. At Lobo-Marte , the dedicated project team is progressing baseline studies to support permitting.
Sustainability:
Kinross expects to publish its 2024 Sustainability Report later this month, marking its 17 th edition, providing a comprehensive summary of its performance over the past year.
CEO commentary: J. Paul Rollinson, CEO, made the following comments in relation to 2025 first-quarter results:
"We had an excellent start to the year built on our continued strong operational performance and disciplined cost management, and are well positioned to meet our annual guidance. The Company delivered a 67% increase in margins to $1,814 per ounce sold compared with Q1 2024, significantly outpacing the 38% increase in the gold price over the same period. As a result, we generated over $370 million of free cash flow, more than double over Q1 2024.
“Our culture of technical excellence and financial discipline, complemented by our consistent operating performance, continues to drive strong margins and cash flow, all of which underpin our capital allocation strategy. In addition to our dividend, we’ve reactivated our share buyback program and, given the current gold environment as well as the strength of our operations, we are aiming to repurchase a minimum of $500 million of shares in 2025. I am pleased to report that we have repurchased approximately $60 million of shares to date in Q2.
“We continue to advance our pipeline of high-quality development projects and exploration opportunities across our broader portfolio with a focus on driving value for our shareholders through this decade and beyond. The Great Bear AEX program is progressing, Redbird at Bald Mountain is advancing on schedule, we continue to deliver strong drill results at Round Mountain Phase X and Curlew, and baseline studies at Lobo-Marte are progressing well.”
Summary of financial and operating results
| | Three months ended | | | | | | March 31, | | | | | (in millions of U.S. dollars, except ounces, per share amounts, and per ounce amounts) | 2025 | 2024 | | | | Operating Highlights (a) | | | | | | Total gold equivalent ounces (b) | | | | | | Produced | | 529,861 | | 527,399 | | Sold | | 524,089 | | 522,400 | | Attributable gold equivalent ounces (b) | | | | | | Produced | | 512,088 | | 527,399 | | Sold | | 506,564 | | 522,400 | | Gold ounces - sold | | 516,268 | | 503,604 | | Silver ounces - sold (000's) | | 701 | | 1,667 | | | | | | | | Earnings (a) | | | | | | Metal sales | $ | 1,497.5 | $ | 1,081.5 | | Production cost of sales | $ | 546.7 | $ | 512.9 | | Depreciation, depletion and amortization | $ | 288.4 | $ | 270.7 | | Operating earnings | $ | 570.4 | $ | 193.2 | | Net earnings attributable to common shareholders | $ | 368.0 | $ | 107.0 | | Net earnings per share attributable to common shareholders (basic and diluted) | $ | 0.30 | $ | 0.09 | | Adjusted net earnings attributable to common shareholders (c) | $ | 364.0 | $ | 124.9 | | Adjusted net earnings per share (c) | $ | 0.30 | $ | 0.10 | | | | | | | | Cash Flow (a) | | | | | | Net cash flow provided from operating activities | $ | 597.1 | $ | 374.4 | | Attributable adjusted operating cash flow (c) | $ | 676.2 | $ | 425.7 | | Capital expenditures (d) | $ | 207.7 | $ | 241.9 | | Attributable capital expenditures (c) | $ | 204.1 | $ | 232.1 | | Attributable free cash flow (c) | $ | 370.8 | $ | 145.3 | | | | | | | | Per Ounce Metrics (a) | | | | | | Average realized gold price per ounce (e) | $ | 2,857 | $ | 2,070 | | Attributable average realized gold price per ounce (c) | $ | 2,856 | $ | 2,070 | | Production cost of sales per equivalent ounce (b) sold (f) | $ | 1,043 | $ | 982 | | Attributable production cost of sales per equivalent ounce (b) sold (c) | $ | 1,038 | $ | 982 | | Attributable production cost of sales per ounce sold on a by-product basis (c) | $ | 1,010 | $ | 941 | | Attributable all-in sustaining cost per equivalent ounce (b) sold (c) | $ | 1,355 | $ | 1,310 | | Attributable all-in sustaining cost per ounce sold on a by-product basis (c) | $ | 1,331 | $ | 1,281 | | Attributable all-in cost per equivalent ounce (b) sold (c) | $ | 1,678 | $ | 1,630 | | Attributable all-in cost per ounce sold on a by-product basis (c) | $ | 1,660 | $ | 1,613 |
| (a) | All measures and ratios include 100% of the results from Manh Choh, except measures and ratios denoted as “attributable.” “Attributable” measures and ratios include Kinross’ 70% share of Manh Choh production, sales, cash flow, capital expenditures and costs, as applicable. | | (b) | “Gold equivalent ounces” include silver ounces produced and sold converted to a gold equivalent based on a ratio of the average spot market prices for the commodities for each period. The ratio for the first quarter of 2025 was 89.69:1 (first quarter of 2024 – 88.70:1). | | (c) | _The definition and reconciliation of these non-GAAP financial measures and ratios is included on pages _16 to 22 of this news release. Non-GAAP financial measures and ratios have no standardized meaning under International Financial Reporting Standards (“IFRS”) and therefore, may not be comparable to similar measures presented by other issuers. | | (d) | “Capital expenditures” is “Additions to property, plant and equipment” on the interim condensed consolidated statements of cash flows. | | (e) | “Average realized gold price per ounce” is defined as gold revenue divided by total gold ounces sold. | | (f) | “Production cost of sales per equivalent ounce sold” is defined as production cost of sales divided by total gold equivalent ounces sold. | | | |
The following operating and financial results are based on first-quarter gold equivalent production:
Production : Kinross produced 512,088 Au eq. oz. in Q1 2025, compared with 527,399 Au eq. oz. in Q1 2024. Higher production from Fort Knox, with the commencement of Manh Choh in the second half of 2024, was offset by lower planned production at Round Mountain and Tasiast.
Average realized gold price 9 : The average realized gold price in Q1 2025 was $2,857 per ounce, compared with $2,070 per ounce in Q1 2024.
Revenue : During the first quarter, revenue increased to $1,497.5 million, compared with $1,081.5 million during Q1 2024. The 38% year-over-year increase is due to the increase in average metal prices realized.
Production cost of sales : Production cost of sales per Au eq. oz. sold 2 increased to $1,043 for the quarter, compared with $982 in Q1 2024. Attributable production cost of sales per Au eq. oz. sold 1 increased to $1,038 for the quarter, compared with $982 in Q1 2024.
Attributable production cost of sales per Au oz. sold on a by-product basis 1 was $1,010 in Q1 2025, compared with $941 in Q1 2024, based on attributable gold sales of 498,885 ounces and attributable silver sales of 688,694 ounces.
Margins 4 : Kinross’ margin per Au eq. oz. sold increased by 67% to $1,814 for Q1 2025, compared with the Q1 2024 margin of $1,088, outpacing the 38% increase in average realized gold price.
Attributable all-in sustaining cost 1 : Attributable all-in sustaining cost per Au eq. oz. sold was $1,355 in Q1 2025, compared with $1,310 in Q1 2024.
In Q1 2025, attributable all-in sustaining cost per Au oz. sold on a by-product basis was $1,331, compared with $1,281 in Q1 2024.
Operating cash flow 3 : Operating cash flow was $597.1 million for Q1 2025, compared with $374.4 million for Q1 2024.
Attributable adjusted operating cash flow 1 for Q1 2025 was $676.2 million, compared with $425.7 million for Q1 2024.
Attributable free cash flow 1 : Attributable free cash flow more than doubled to $370.8 million in Q1 2025, compared with $145.3 million in Q1 2024.
Reported earnings 5 : Reported net earnings more than tripled to $368.0 million for Q1 2025, or $0.30 per share, compared with reported net earnings of $107.0 million, or $0.09 per share, for Q1 2024.
Adjusted net earnings 6 , 7 more than doubled to $364.0 million, or $0.30 per share, for Q1 2025, compared with $124.9 million, or $0.10 per share, for Q1 2024.
Attributable capital expenditures 1 : Attributable capital expenditures decreased to $204.1 million for Q1 2025, compared with $232.1 million for Q1 2024. The decrease was primarily due to timing and the Company remains on track to meet its annual capital guidance of $1,150 million (+/- 5%).
9 “Average realized gold price per ounce” is defined as gold revenue divided by total gold ounces sold.
Balance sheet
During the quarter, the Company repaid the remaining $200.0 million outstanding balance and fully extinguished the term loan.
After the repayments, Kinross had cash and cash equivalents of $694.6 million as of March 31, 2025, compared with $611.5 million at December 31, 2024, and reduced its net debt to approximately $540 million 10 .
The Company had additional available credit 11 of $1.65 billion and total liquidity 8 of approximately $2.3 billion as of March 31, 2025.
On March 27, 2025, Moody’s announced that it upgraded Kinross’ outlook to positive from stable and affirmed the Company’s investment grade rating of Baa3. Moody’s noted Kinross’ debt reduction, good scale, low leverage and conservative financial policies as key factors driving the improved outlook.
Return of capital to shareholders
Kinross is committed to enhancing shareholder value through return of capital programs such as a share buyback and its quarterly dividend, which are underpinned by the Company’s investment grade balance sheet, strong free cash flow and stable production profile from its global portfolio.
On March 19, 2025, Kinross received approval from the Toronto Stock Exchange to renew its normal course issuer bid (“NCIB”) program. Under the NCIB program, the Company is authorized to purchase up to 110,350,160 of its common shares (out of the 1,229,635,757 common shares outstanding as at February 28, 2025) representing up to 10% of the Company’s public float of 1,103,501,601 common shares, during the period starting on March 24, 2025 and ending on March 23, 2026.
Kinross has reactivated its share buyback program and has re-purchased approximately $60 million of shares since the beginning of April 2025. Kinross aims to buy back a minimum of $500 million of shares during 2025, assuming recent gold prices are sustained and operations continue to deliver on plan, and will evaluate the program regularly throughout the year.
The Company believes that Kinross’ shares offer exceptional value, and that the buyback offers an attractive use of excess cash in this gold price environment. Kinross will continue to strengthen its balance sheet while retaining its capacity to continue investing in its business.
As part of its continuing quarterly dividend program, the Company declared a dividend of $0.03 per common share payable on June 12, 2025, to shareholders of record as of May 29, 2025.
Operating results
Mine-by-mine summaries for 2025 first-quarter operating results may be found on pages 10 and 14 of this news release. Highlights include the following:
At Tasiast , production decreased slightly quarter-over-quarter due to lower throughput, partially offset by timing of ounces processed through the mill. Production was lower year-over-year due to lower grades, consistent with mine plan sequencing, partially offset by an increase in recoveries due to a number of optimization initiatives to the mill. Cost of sales per ounce sold increased quarter-over-quarter mainly due to lower planned throughput, and increased year-over-year mainly due to the decrease in production.
Kinross has re-started milling operations at Tasiast following the fire on April 14, 2025. The Company does not expect the fire to affect Tasiast’s annual guidance.
At Paracatu , production increased quarter-over-quarter due to higher grades and improved recoveries as well as timing of ounces processed through the mill. Production increased year-over-year primarily due to higher grades and improved recoveries, partially offset by lower throughput. Cost of sales per ounce sold decreased in both comparable periods mainly due to the increase in ounces produced.
At La Coipa , production decreased quarter-over-quarter mainly due to timing of ounces processed through the mill and planned lower mill throughput, partially offset by higher-grades from the Puren deposit. Year-over-year production decreased mainly due to the timing of ounces processed through the mill and a decrease in silver grades, partially offset by an increase in throughput. Cost of sales per ounce sold was lower quarter-over-quarter mainly due to lower maintenance costs, partially offset by the decrease in production. Year-over-year cost of sales per ounce sold was higher due to the decrease in ounces produced, higher royalty costs and higher processing costs. Permitting work for mine life extensions continued.
Fort Knox continued its strong performance with higher production quarter-over-quarter mainly due to the contribution from a longer campaign of processing Manh Choh’s higher-grade, higher-recovery ore, and increased year-over as Manh Choh came online in the second half of 2024. The higher production in both comparable periods contributed to the decreases in cost of sales per ounce sold.
At Round Mountain , production was lower quarter-over-quarter, as planned, mainly due to lower grades, partially offset by higher mill throughput. Compared with the previous quarter, cost of sales per ounce sold decreased due to lower reagent, fuel and milling supply costs, partially offset by the recovery of higher-cost ounces produced from the heap leach pads. Year-over-year production was lower due to a decrease in mill grades and fewer ounces recovered from the heap leach pads. Compared with Q1 2024, cost of sales per ounce sold increased mainly due to the decrease in production.
At Bald Mountain , production was in line quarter-over-quarter, and decreased year-over-year due to lower grades. Cost of sales per ounce sold was lower quarter-over-quarter due to a higher proportion of mining activities related to capital development, and in line with Q1 2024.
10 Net debt is calculated as long-term debt (current and long-term portion) of $1,235.9 million less cash and cash equivalents of $694.6 million, as reported on the Company’s consolidated balance sheet as at March 31, 2025. 11 “Available credit” is defined as available credit under the Company’s credit facilities and is calculated in Section 6 Liquidity and Capital Resources of Kinross’ MD&A for the three months ended March 31, 2025.