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Kinross Gold withdraws guidance although output not impacted by COVID-19 so far

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(Kitco News) - Kinross Gold Corp.’s (TSX: K; NYSE: KGC) production has not been hurt by the COVID-19 pandemic so far, but the company nevertheless is withdrawing 2020 guidance due to the uncertainty, Kinross said Wednesday.

The company made the announcement at a time when many other mining companies – including producers of gold, silver, platinum group metals and base metals – have had to curtail operations in response to government measures to combat the virus.

“While the company cannot predict the future impact of the pandemic on its global operations, all Kinross mines continue to operate and have not been materially impacted to date,” Kinross said in a prepared statement.

Officials say preventative measures and contingency plans have been put in place for all sites, including social-distancing guidelines, working remotely when possible, medical preparedness, halting non-essential travel and more.

“Kinross has also continued to assess the potential impacts of the pandemic on its 2020 production and cost guidance,” the company said. “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.”

However, gold sales could be slightly lower than production due to the impact of the pandemic on timing of sales and shipments, Kinross said.

The company said it has a “strong financial position and liquidity,” but as a precautionary measure drew down $750 million from its $1.5 billion revolving credit facility on March 20. However, the company does not currently plan to deploy the funds, Kinross said.

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