Company expects to produce an average of 2.5 million gold equivalent ounces per year from 2020 – 2029
(This news release contains forward-looking information about expected future events and performance of the Company. We refer to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located at the end of this release. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.)
TORONTO, Oct. 20, 2020 (GLOBE NEWSWIRE) -- Kinross Gold Corporation (TSX:K; NYSE:KGC) (“Kinross” or the “Company”) today announced that it expects to produce an average of approximately 2.5 million gold equivalent ounces (Au eq. oz.)1 per year from 2020 – 2029 driven primarily by promising organic opportunities across its global portfolio.
The Company previously announced on September 17, 2020 that it expects to increase production by 20% from 2021 – 2023, with estimated production (+/- 5%)1 of 2.4 million Au eq. oz. in 2021, 2.7 million Au eq. oz. in 2022, and 2.9 million Au eq. oz. in 2023. Kinross also anticipates an overall downward trend in cost of sales per ounce sold over its three-year growth profile.
Today, Kinross will host an operations update and production outlook presentation and question and answer period from 10:00 a.m. – 12:00 p.m. ET to discuss the details of the Company’s 2021 – 2023 guidance. The Company will also provide an overview of the production, exploration and mine life extension opportunities that underpin its production outlook to 2029, and details on additional opportunities in its portfolio that could further strengthen its long-term production outlook.
CEO commentary:
J. Paul Rollinson, President and CEO, commented on Kinross’ long-term production outlook .
“Our growing production profile and declining cost trend over the next three years are expected to drive strong free cash flow performance, placing Kinross in an excellent position to generate substantial value for our shareholders. Furthermore, our positive long-term production outlook, with estimated average annual production of 2.5 million Au eq. oz. to 2029, provides a solid foundation to continue building value into the future.
“Kinross has a diverse global portfolio with top-tier assets that have long mine lives complemented by a large mineral reserve and resource base. The reinvestments in our portfolio, continuous improvement initiatives and exploration programs have enabled us to add lower cost and lower risk projects that leverage existing infrastructure and enhance our long-term production profile. Our strong production profile, combined with our robust financial position and recently reinstated quarterly dividend, point to an exciting future for our Company.”
2021 – 2023 o utlook
Kinross’ growing production outlook from 2021 – 2023 is based on expected additional ounces from:
•higher planned production at Kupol and planned life of mine extension at Chirano, both derived from successful exploration programs;
•expected enhancements to the Fort Knox mine plan, including accelerating production at the Gilmore project to bring ounces forward and mining the Gil satellite deposit;
•continued outperformance at Paracatu through expected improvements in throughput, more ounces from the tailings reprocessing and accelerated mining of the western area of the pit, and;
•higher anticipated production from the north area of Bald Mountain.
Strong long-term production profile
Kinross’ strong long-term production profile is based on long-life assets that anchor the Company’s global portfolio, along with numerous growth projects in all operating regions. These growth projects, which range from scoping through feasibility study level of confidence, include:
•Udinsk, the first deposit expected to be developed on the Chulbatkan license in Russia;
•the recently acquired Peak project in Alaska;
•the Phase S extension at Round Mountain in Nevada, and;
•the Lobo-Marte project in Chile;
The Company is also studying further organic development and exploration opportunities given its attractive pipeline of projects and flexibility of its portfolio in a favourable gold price environment.
Call-in details for today’s presentation at 10:00 a.m. ET
Canada & US toll-free – +1 (833) 968-2237; Passcode: 7245896
Outside of Canada & US – +1 (825) 312-2059; Passcode: 7245896
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