Gold miner Kinross produced 558 777 gold-equivalent ounces (GEOs) in the first quarter ended March and said on Tuesday that it was on track to meet its guidance of 2.4-million GEOs for the year.
First-quarter production was lower than the 567 327 GEOs produced in the same quarter of 2020. All-in sustaining costs also fell to $975/GEO sold.
The Canada-based company’s three largest producing mines – Paracatu, in Brazil, Kupol, in Russia, and Tasiast, in Mauritania – accounted for 60% of its production and were the lowest cost mines in the portfolio.
Revenue increased by 12% to $986.5-million, compared with $879.8-million in the first quarter of 2020. Adjusted net earnings increased 51% to $192.8-million, or $0.15 a share, from $127.4-million, or $0.10 a share.
“We are well-positioned to continue generating strong cash flow through the year, are on track to meet our annual guidance, and we are in an excellent financial position,” said CEO Paul Rollinson.
He added that the miner’s development projects – Tasiast 24k, in Mauritania and La Coipa, in Chile – were advancing well and remained on schedule.
Tasiast 24k would increase throughput capacity to 21 000 t/d by the end of the 2021 and to 24 000 t/d by mid-2023. The first phase of the project was 80% complete.
The La Coipa restart project would enter production in mid-2022. Fleet refurbishments were expected to be completed during the current quarter, with plant refurbishments and mine road construction advancing as planned. Work on studies to incorporate adjacent deposits into La Coipa’s mine plan to potentially extend mine life was also proceeding. Kinross noted that it is evaluating the option of sourcing renewable power for the project.
Meanwhile, Kinross announced its commitment to reach net-zero greenhouse gas emissions by 2050 and said that it would finalise a strategy to support the goal by year-end.