Canada-headquartered gold miner Kinross will grow its production by half-a-million gold-equivalent ounces (GEO), or about 20%, over the next three years, CEO Paul Rollinson said on Thursday, as he also announced the group's first quarterly dividend in a number of years.
Production is forecast to increase from 2.4-million GEO in 2021 to 2.9-million GEO in 2023, on the back of previous major capital reinvestments and life-of-mine extensions.
In particular, Kinross is expecting additional ounces from higher production at Kupol, in Russia, and Chirano, in Ghana, following successful exploration programmes at both sites, enhancements to the mine plan of Fort Knox, in Alaska, continued outperformance at Paracatu, Brazil, and higher production from the north area of Bald Mountain, in the US.
Kinross also reinstated its pre-Covid 2020 guidance, originally announced in February. GEO production is forecast to be 2.4-million ounces at cost of sales of $720/GEO and all-in sustaining costs of $970/GEO.
The miner is forecasting a downward trend in production cost of sales per ounces sold over the next three years of expected production growth.
Meanwhile, Kinross said the board had approved a plan to pay quarterly dividends of $0.03 a common share, which would amount to $0.12 a share on an annualised basis. This represented an annualised yield of about 1.3%, assuming a share price of $9.35 as of market close on September 17.
Subject to approval of the board, the next quarterly dividend would be declared in connection with Kinross’ third-quarter financial results.