Canada-headquartered Kinross Gold posted higher second-quarter output, following a strong performance at its three key mines, including Tasiast, in Mauritania, where an expansion project has just been completed.
June-quarter production grew by 22% year-on-year to 555 036 gold-equivalent ounces (GEO), at an all-in sustaining cost of $1 296/GEO sold.
“Our margins grew 27%, operating earnings were significantly higher, and free cash flow more than doubled compared with the same period last year. Tasiast, Paracatu and La Coipa delivered about 70% of our production and our lowest costs for the quarter, including record production at Tasiast,” comments president and CEO Paul Rollinson.
Tasiast produced 288 889 GEOs, Paracatu, in Brazil, produced 164 243 GEOs and La Coipa, in Chile, produced 66 744 GEOs in the three months under review.
During the quarter, construction and initial commissioning were completed at the Tasiast 24k project, on schedule and budget. The process plant has regularly achieved the designed 24 000 t/d throughput for sustained periods of time during the quarter.
The 34 MW Tasiast solar power plant is on schedule for completion by the end of the year.
“Our pipeline of projects continued to make strong progress,” says Rollinson, noting that Manh Choh, in Alaska, is also advancing to plan to come on line in the second half of next year, following the receipt of key operating permits in May.
The Manh Choh joint venture project will add about 640 000 attributable GEOs a year to the company’s production. Between 2024 and 2027, Kinross expects to produce an average of 400 000 attributable GEOs a year from its Alaskan assets.
LEADERSHIP CHANGES
Meanwhile, Kinross is expanding the changes to its senior leadership team announced last year.
Technical services will be divided into two separate senior leadership team roles – a senior VP of technical services and a senior VP of global projects, both of which will report to the president and CEO.
This will further facilitate hands-on senior level, dedicated oversight and focused support of Kinross’ operations and projects. These changes are expected to create organisational efficiencies and unlock the full potential of Kinross’ existing assets and organic growth related to major development projects.
As such, Ned Jalil, currently senior VP and chief technical officer, has decided to depart Kinross to pursue other opportunities and will remain in a transitionary role until the end of August.
William Dunford will assume the role of senior VP technical services. Since joining Kinross more than 16 years ago, Dunford has held increasingly senior technical and operational roles, including as the GM of Kupol prior to its sale last year, and is currently the VP of mining operations.
Kinross is recruiting for the senior VP of global projects role.