Canadian bullion producer Kinross has lowered its production expectations for the next two years, but CEO Paul Rollinson assured shareholders that the group’s long-term production profile remains strong, with yearly output of at least 2.5-million ounces over the remainder of the decade.

In its fourth-quarter and full-year results announcement on Tuesday, Kinross provided a new guidance for 2022 and 2023 of 2.65-million gold-equivalent ounces (GEOs) and 2.8-million GEOs, respectively.

This is below the previously guided 2.7-million GEOs in 2022 and 2.9-million GEOs in 2023.

Kinross explained that the adjustments were owing to the impact of the Covid-19 Omicron variant on productivity and supply chain logistics at Tasiast, in Mauritania, and fewer ounces expected from the Vantage heap leach pad at Bald Mountain, in the US.

In 2023, the production outlook was impacted by the deferral of some production at several sites, including La Coipa, in Chile, Bald Mountain, Kupol, in Russia, and Chirano, in Ghana. These deferrals, however, would extend the mine life and increase the total life-of-mine production.

Should the 2022 production guidance be achieved, it will be a substantial 28% improvement on the group’s performance in a “challenging” 2021. The miner produced 2.07-million GEOs last year, which is in line with its revised production guidance, but below the 2.37-million GEOs of 2021.

Output was affected by the suspension of milling operations at Tasiast, where a fire broke out in the mill in June, and deferred mining activities at Round Mountain after wall instability was detected in the first quarter of the year.

Fourth-quarter production fell to 487 621 GEOs, from 624 032 GEOs a year earlier.

Kinross reported free cash flow of $196.6-million in 2021, compared with $1.04-billion in the previous year. In the fourth quarter, the free cash flow was a net cash outflow of $100.7-million.

The miner’s full-year adjusted earnings fell to $541.3-million, or $0.43 a share, from $966.8-million, or $0.77 a share, in 2021, owing to lower revenue.