- Kinross Gold (K) has further outlined its long-term plans, after recently unveiling an ambitious three-year growth strategy
- Kinross now expects increase its production to an average of around 2.5 million gold equivalent ounces annually over the next nine years
- The growth in production is expected to emerge organically from the company’s global portfolio, which currently encompasses eight operations across the Americas, Russia and West Africa
- On top of the increased production, Kinross also expects a notable decrease in cost of sales per ounce sold over the next three years
- Kinross Gold (K) is down 0.47 per cent and is trading at C$11.66 per share
Kinross Gold (K) has further outlined its long-term plans, after recently unveiling an ambitious three-year growth strategy.
Late last month the company declared its first dividend in seven years, following an impressive gold price run sparked by the ongoing COVID-19 pandemic. Alongside the dividend, Kinross also outlined its three-year growth plan to increase its annual production by around 20 per cent.
However, the plan appears to have sat uneasy with investors, with the initial share price bump that followed the dividend announcement soon erased in the intervening weeks.
In an attempt to further outline its growth plans, Kinross is now predicting it will produce an average of 2.5 million gold equivalent ounces annually over the next nine years.
On top of the increased production, the company also expects a notable decrease in cost of sales per ounce sold over the next three years, leading to a greater cash yield from the elevated production rate.
The growth in production is expected to emerge organically from the company’s global portfolio, which currently encompasses eight operations across the Americas, Russia and West Africa.
Specifically, Kinross hopes to increase production at its Kupol and Bald Mountain mines, as well as enhance the operating logistics of its Chirano, Fort Knox and Paracatu mines.
President and CEO of Kinross Gold J. Paul Rollinson commented on the company’s long-term production outlook.
“Kinross has a diverse global portfolio with top-tier assets that have long mine lives complemented by a large mineral reserve and resource base.
“The reinvestments in our portfolio, continuous improvement initiatives and exploration programs have enabled us to add lower cost and lower risk projects that leverage existing infrastructure and enhance our long-term production profile,” he said.
Kinross Gold (K) is down 0.47 per cent and is trading at C$11.66 per share at 10:34am EDT.
