Make Kitco Your Homepage

Kinross produces 2.5 million ounces

Kitco News

In this year's production results released today Kinross (TSX:K) edged last year's production total producing 2.527 million ounces of gold equivalent ounces, up from 2.47 million produced in 2018.

All-in sustaining cost was $983 per ounce compared to $965 a year ago.

The average realized gold price per ounce increased 10% to $1,392 for the full-year in 2019, compared with $1,268 per ounce for the full-year in 2018.

In 2020 Kinross expects production to slip 100,000 ounces to 2.4 million gold equivalent ounces. In 2021 and 2022, the company said annual production is expected to be at or above 2019 levels, and is expected to remain at the 2.5 million gold equivalent ounces.

The company explained this year's production drop on a shifting production profile.

"The slight forecast decrease compared to full-year 2019 production is primarily due to Maricunga transitioning to care and maintenance, and expected lower production at Paracatu following its record year, partially offset by an expected production increase at Tasiast and Fort Knox," writes the company.

The company added to its mineral resevere and resources, adding 7.7 million ounces to measured and indicated mineral resources in 2019, a 28% year-over-year increase, mainly due to the acquisition of Chulbatkan, and additions of 1.2 million Au oz. at Lobo-Marte, 1.1 million Au oz. at Paracatu, 568 Au koz. at Bald Mountain and 553 Au koz. at Round Mountain.

Regarding Tasiast, the company is expecting throughput capacity to 21,000 tonnes per day by the end of 2021 and then to 24,000 tonnes per day by mid-2023.

Last last year Kinross unloaded its Fruta Del Norte stake for C$150 million. The company then took on $300 million debt financing to advance the Tasiast operation in Mauritania.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.