In 2016, Kinross Gold expects to produce a record 2.7 million-2.9 million ounces (oz) of gold (equivalent) from its operations, compared to 2.59 million oz equivalent in 2015. The forecast increase is mainly a result of the acquisition of Bald Mountain and the 50% of Round Mountain the company did not already own offset by grade reductions at Kupol and Chirano, and the expected closure of Kettle River-Buckhorn in Q3 2016. The production guidance also takes into consideration the potential for a temporary curtailment of mill operations at Paracatu due to a lack of rainfall in south-central Brazil. Based on the significant amount of rain already received in January, the company is not expecting a curtailment in the first half of 2016.

Production in the second half of 2016 is expected to be higher compared with the first half of the year due mainly to mine sequencing at Tasiast and the seasonal impact on the heap leach at Fort Knox, Bald Mountain and Round Mountain.

Production cost of sales per oz (e) is expected to be in the range of $675-$735 for 2016, continuing the reduction experienced in 2015, largely as a result of favorable currency and oil movements. The company has forecast an all-in sustaining cost for 2016 of $890-$990/oz (e) sold, and per ounce sold on a byproduct basis, which is lower than 2015 full-year guidance.

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