Canada-based Kinross has increased production in the second quarter, producing 453 978 gold-equivalent ounces (GEOs) in the three months ended June, mainly owing to higher grades and throughput at the Tasiast mine, in Mauritania.
The miner cautioned, however, that its full-year production would be at the lower end of its 2.15-million GEO guidance, citing a delay in the mill ramp-up at its La Coipa mine, in Chile.
Delays in the mill ramp-up were mainly owing to issues with the pumps and global supply chain challenges affecting availability of spare parts, Kinross explained. The miner expects the mill ramp-up to gather speed during the second half of the year, significantly lifting production. La Coipa’s full mill capacity will be reached in the fourth quarter.
“Kinross had higher production compared with the first quarter and we continue to expect stronger production and lower costs in the second half of the year to generate an increase in free cash flow. Paracatu and Tasiast are on track to increase production at lower costs for the rest of the year, with the La Coipa mill expected to continue ramping up, contributing to our higher production,” said CEO Paul Rollinson.
The company continues to forecast production increasing to 2.3-million GEOs in 2023 and production of 2.1-million GEOs in 2024.
The 2024 production guidance does not include expected production from the Manh Choh project, in Alaska. Kinross recently announced that it was proceeding with development of the 70%-owned Manh Choh, which is expected to increase the company’s production profile by about 640 000 attributable GEOs over the life-of-mine, at lower costs.
Kinross’ production profile has changed substantially in recent months as it sold its Russian assets and is in the process of selling its Ghana operations, while it bought the Great Bear project in Canada.
“With the completion of the sale of our Russian assets and pending sale of Chirano, approximately 70% of our production is now based out of the Americas. The new re-balanced portfolio is bolstered by our robust development projects, which all advanced well over the quarter,” said Rollinson.
“Looking ahead, we believe we have significant value upside. We are in an excellent financial position, have strong liquidity of $2.1-billion, and continue to prioritise and strengthen our investment-grade balance sheet while returning capital to our shareholders.”