Kinross sees fourth-quarter production drop, cuts 2022-23 expectations

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Kinross – which has mines in the Americas, West Africa and Russia – produced 491,077 gold equivalent ounces in the December quarter, compared with 627,944 ounces for the same period a year earlier.

For the quarter, the company reported a net loss of US$2.7 million, compared to a profit of US$783.3 million for the same period in 2020. Profit for the three months was recorded at 101, US$8 million, or US$0.08/share, compared to US$335.1 million, or US$0.27/share, for the fourth quarter of 2020.

“Despite some challenges in 2021, we produced approximately 2.1 million ounces. We plan to increase our production in 2022 and 2023 to 2.65 Moz and 2.8 Moz, respectively, to generate free cash flow strong,” said Kinross President and CEO J Paul Rollinson.

2021 production was 2.07 Moz, down from 2.38 Moz in 2020. The forecast was lowered to 2.1 Moz from 2.4 Moz on June 21 following a factory fire West African from Tasiast.

Production forecasts for 2022 and 2023 were previously set at 2.7 Moz and 2.9 Moz, respectively.

“Kinross has made modest adjustments to its mid-term production estimates for 2022 and 2023, with 2022 expected to be impacted by the effect of the COVID-19 Omicron variant on productivity and supply chain logistics at Tasiast , and a few ounces expected from the Vantage pad heap leach at Bald Mountain,” Kinross said.

“Our long-term production profile remains strong, with a projected production of 2.6 Moz in 2024 and an average annual production estimate of at least 2.5 Moz over the remainder of the decade,” Rollinson said.

Kinross traded on the Toronto Stock Exchange at C$7.45/share on Feb. 16, up 2%.

The company has a market cap of C$9,270 million.


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