Kinross provides global update on COVID-19 response planning and financial position - Seite 2

As previously planned, Kinross has submitted a drawdown notice for $200 million on the $300 million Tasiast project financing facility. The first funds are expected in mid-April 2020. The financing, which was signed on December 16, 2019, is an asset recourse loan with the IFC (a member of the World Bank Group), Export Development Canada, ING Bank and Société Générale.

At this time, the Company has total debt of approximately $2.5 billion, and net debt¹ of less than $1.5 billion. The Company has no debt maturities until September 2021. Despite the Company’s strong financial position, Kinross continues to plan for the potential impact of a wide range of outcomes on its financial position and balance sheet, including reviewing discretionary capital expenditures.

Kinross has also continued to assess the potential impacts of the pandemic on its 2020 production and cost guidance. While the crisis has had no material impacts on the Company’s operations to date, Kinross has decided to withdraw its full-year 2020 guidance. The Company believes this is the prudent approach given the pandemic’s significant impact on the world economy, the implications of government-mandated constraints on financial, commercial and business activities, and the potential for further business disruptions and global health impacts. Favourable fuel prices and foreign exchange rates are expected to provide offsets to some of the incremental costs resulting from Kinross’ contingency measures. The Company will continue to target the safe delivery of its operating plans, notwithstanding the potential impacts of the global crisis.

For the first quarter of 2020, the Company expects gold sales to be slightly lower than production due to the impacts of the global crisis on timing of sales and metal shipments. Kinross is actively managing its metal shipments to mitigate impacts of the suspension, or risk of suspension, of operations at several refineries. Alternate transportation channels have been secured and further contingency plans are being prepared. Kinross’ preliminary Q1 2020 production, which has been impacted in part by crisis-related contingency measures, is expected to be approximately 560,000 Au eq. oz., with sales of approximately 540,000 Au eq. oz. Preliminary cost of sales per ounce sold for Q1 2020 is expected to be at the higher end of the original annual guidance range.