Canadian company Kinross has maintained its production guidance for the year, despite producing fewer gold equivalent ounces (GEOs) in the third quarter, and also announced the appointment of a new chairperson to succeed John Oliver when he retires at the end of December.
The Toronto-headquartered miner produced 586 260 GEOs in the September quarter, compared with 653 993 GEOs in the prior-year period at an all-in sustaining cost (AISC) of $1 049/GEO, compared with $937/GEO.
Kinross generated revenue of $753.9-million in the quarter under review, down from $828-million a year earlier, owing to the lower output and a drop in the average realised gold price from $1 283/oz to $1 209/oz.
Margins decreased to $432/GEO, from $621/GEO in the September 2017 quarter.
The lower margins and in increase in income tax expense pushed Kinross into the red, with a net loss of $104.4-million, or $0.08 a share, compared with year-earlier earnings of $60.1-million, or $0.05 a share.
CEO Paul Rollinson said, however, the group’s global portfolio achieved solid production in the first nine months of the year and that it would achieve its 2018 guidance of 2.5-million GEOs at an AISC of $975/oz.
“Our Nevada, Brazil, Ghana and Russia operations performed well during the quarter and we remain on track to meet our company-wide production and cost guidance for the year,” he commented in a statement.
Rollinson also said that commissioning of the new semiautogenous grinding mill for the Tasiast Phase 1 expansion had been completed and that the mine’s performance would further improve in the fourth quarter, as it delivered record monthly production in October and began mining higher grade ore.
The company also continued to advance discussions with the government of Mauritania regarding its operations in the country and had now signed mandate letters with Export Development Canada and the International Finance Corporation, a division of the World Bank, regarding project financing. The Phase 2 expansion of Tasiast remained paused.
“Construction at our US projects – Round Mountain Phase W and Bald Mountain Vantage Complex, in Nevada, and Fort Knox Gilmore in Alaska – remain on schedule and on budget as we continue to solidify our production footprint in the country. In Russia, the Moroskha project was completed and production commenced at the high-grade satellite deposit near Kupol, while our studies assessing a return to long-term production in Chile are proceeding well.”
Meanwhile, Kinross announced the retirement of Oliver as chairperson and said that he would be succeeded by board member Catherine McLeod-Seltzer on January 1.
“We are pleased that Catherine will take on the role of independent chair and look forward to her guidance and stewardship as we continue to build on Kinross’ strong foundation and responsibly deliver on our strategy to create value for all our stakeholders,” said Rollinson.
“On behalf of the board and Kinross management, I would like to extend a sincere thank you to John for his leadership and deep commitment to the company. John has been an important part of Kinross for more than 20 years and has overseen Kinross’ tremendous growth during his chairmanship.”