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Kinross unveils decade-long gold production plan based on current portfolio of assets

TORONTO — Kinross Gold Corp. says it intends to rely mainly on internally generated opportunities to continue to produce an average of 2.5 million gold equivalent ounces per year over the next decade.

In a news release and conference call Tuesday, the Toronto-based miner didn’t directly acknowledge a media report last week suggesting it is looking at selling its operations in the Americas to concentrate on its Russian and West African mines.

But CEO Paul Rollinson told analysts during the call that the company is pleased with its existing portfolio of proved and potential projects to maintain annual production and with its overall size, which is big enough to support an internal team of technical experts.

In September, Kinross said it expects to increase production to 2.4 million ounces in 2021, 2.7 million in 2022 and 2.9 million in 2023, while driving a downward trend in cost of sales per ounce.

On the call, chief technical officer Paul Tomory said despite recent record high gold prices above US$2,000 per ounce, the company won’t approve major projects unless they are expected to be profitable at US$1,200 per ounce.

He said instead Kinross is working to improve the economics of its current list of potential projects to drive down the costs so that they fit its mandate.

In response to an analyst question about the media report, Rollinson said he doesn’t “see a lot of upside in debating the rumour of the week,” while dismissing the idea of selling its mines in North and South America which produced 1.41 million ounces in 2019.

“We’re focused on the portfolio and making it the best it can be and we don’t feel under any pressure as it relates to M and A (mergers and acquisitions),” he said.

This report by The Canadian Press was first published Oct. 20, 2020.

Companies in this story: (TSX:K)

The Canadian Press

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