Kinross On Track To Grow Production To 2.7 Million Announces In 2022
TORONTO - Kinross Gold Corporation President and CEO, J. Paul Rollinson, said, “During the third quarter, our portfolio of mines performed well and we are on track to meet our revised production and cost guidance for the year. We maintained our balance sheet strength while enhancing shareholder returns, as we initiated our share buyback program in addition to declaring our quarterly dividend. We are pleased to announce that the Tasiast mill has now re-started at costs below original estimates and is ramping back up. We expect that, in December, the mill will achieve sustained throughput levels comparable to the first half of the year. The mill is also on track to reach 21,000 tonnes per day throughput by the end of Q1 2022. Our development projects made good progress during the quarter, with La Coipa on track to start production in mid-2022 and Tasiast 24k on schedule to be completed in mid-2023. We also completed studies for our Udinsk project in Russia and Lobo-Marte project in Chile which reaffirmed our views of both projects’ strong potential to be significant value generators as large, low cost producers with attractive returns. Kinross remains on track to grow its production to 2.7 million ounces next year, and then to 2.9 million ounces in 2023, and is in excellent position to continue delivering value to its shareholders.”
Kinross has made excellent progress re-starting the Tasiast mill, in West Africa, after the fire on June 15, 2021. The new trommel has been installed and mechanical testing at pre-incident throughput levels has been successful. The mill is now ramping up and is processing lower grade stockpile during this phase. In December, the mill is expected to achieve sustained throughput levels comparable to the first half of the year and the site is expected to produce approximately 15,000 Au eq. oz. during Q4 2021. Production was lower quarter-over-quarter and year-over-year due to the suspension of milling as a result of the mill fire on June 15, 2021. Cost of sales per ounce sold was higher for both comparable periods due to lower production. The mill is now ramping up and is expected to return to sustained pre-incident throughput levels in December 2021.
At Chirano in Ghana, production was slightly lower quarter-over-quarter mainly due to timing of ounces processed through the mill and lower year-over-year primarily due to lower grades, which were partially offset by higher throughput at the mill. Cost of sales per ounce sold increased quarter-over-quarter mainly due to lower production and increased year-over-year mainly due to higher contractor and power costs.
In Brazil, Paracatu, production was impacted by temporary grade variability encountered during the quarter. Production decreased compared with Q2 2021 mainly due to timing of ounces processed through the mill, which was partially offset by higher mill throughput. Year-over-year, production was higher primarily due to an increase in throughput and recovery, partially offset by lower grades and timing of ounces processed. Cost of sales per ounce sold was higher quarter-over-quarter mainly due to lower production and increased year-over-year due to higher operating waste mined, power costs and inflationary pressures on consumables.
Fort Knox, in Alaska, performed well during the quarter, with production increasing and cost of sales per ounce sold decreasing compared with Q2 2021. The quarter-over-quarter production increase was primarily due to more ounces recovered from the heap leach pads and higher mill grades and throughput, while cost of sales per ounce was down mainly as a result of lower operating waste mined and higher production. Both production and cost of sales per ounce were in line year-over-year.
The Bald Mountain Mine, Nevada had production higher quarter-over-quarter as the operation mined through the carbonaceous material encountered in Q2 2021 and ounces recovered from the Vantage heap leach pad increased. Production also increased year-over-year due to higher recoveries from the site’s heap leach pads. Mining activities were completed in the Vantage pit in August 2021 and activities were focused in the North Area by the end of the quarter. Cost of sales per ounce sold decreased quarter-over-quarter due to higher production, which was partially offset by higher reagent and maintenance costs. Cost of sales per ounce sold increased year-over-year mainly due to higher operating waste mined and higher production taxes, which was partially offset by increased production.
Production was lower at Round Mountain, in Nevada, compared with Q2 2021 and Q3 2020 mainly as a result of deferred mining activities in the north wall of the Phase W area after wall instability was detected in Q1 2021. The movement of waste material at the top of the pit to stabilize the wall was completed during the quarter and resulted in unplanned gold recoveries. Cost of sales per ounce sold was higher compared with the previous quarter mainly due to lower production, higher operating waste mined, and higher energy and reagent costs. Higher taxes also contributed to an increase in cost of sales per ounce compared with the previous year. The mine optimization program is on schedule to be completed in Q2 2022.
In Russia, the Kupol and Dvoinoye, production was consistent with the previous quarter, and lower year-over-year mainly due to the planned processing of lower-grade stockpiles at Dvoinoye. Cost of sales per ounce sold increased quarter-over-quarter and year-over-year mainly due to higher mining costs.