Kinross Gold (TSX: K) (NYSE: KGC) owns three large mines called Paracatu, Kupol and Tasiast, which accounted for 62% of production. In fiscal 2020, these were the cheapest mines in the company’s portfolio, with record production and cost performance at Tasiast. All development projects progressed on schedule with construction of the company’s Fort Knox Gilmore completed on time and under budget.

Sustainable quarterly dividend and growing mineral reserves

Recently, Kinross instituted a sustainable quarterly dividend of $ 0.03 per share. The company also acquired the Manh Choh Bolted Project near Fort Knox and new exploration licenses near Kupol and around Chulbatkan. In addition, Kinross increased mineral reserves by 5.7 million ounces and extended the life of Kinross’ Kupol, Chirano and Paracatu mines.

Advance a climate change strategy and improve disclosure

In addition, Kinross has also entered into an agreement in principle with the Mauritanian government to strengthen the partnership. Kinross also maintained the top quartile peer group ranking with all major environmental, social and governance rating agencies and advanced the company’s climate change strategy and disclosure.

Significant contribution to economic benefits

In addition, Kinross has contributed approximately $ 3 billion in economic benefits in the form of taxes, wages, procurement, and community investments in host countries. Despite the limitations of COVID-19, it has performed over 100,000 stakeholder interactions and supported programs with over 900,000 beneficiaries in host communities.

Culture of operational excellence and commitment

While fiscal 2020 challenged Kinross, it also affirmed Kinross’ culture of operational excellence and commitment to putting people first, which unites the company’s global workforce and continues to benefit stakeholders.

Strong year of production

Fiscal 2020 has been a strong year of production with growth prospects in 2021. Kinross’ eight operating mines produced approximately 2.4 million ounces of gold equivalent (oz eq) at a cost of production. sales of $ 723 per Au eq. oz., and an all-inclusive sustaining cost of $ 987 per Au eq. oz., which was within the initial forecast the company had set at the start of the year.

Strong results from the company’s three largest mines

Despite the impacts of the pandemic, Kinross kept the cost of sales and all-in sustaining costs of the business almost at the same level as in 2019. Once again, Kinross production was driven by the good results. of the company’s three largest mines, which were also the company’s lowest-cost operations. . Highlights of the portfolio included another year of record production at Tasiast, which also had the lowest cost to sell in the portfolio, averaging $ 584 per Au eq. ounce. for the year and generated record free cash flow in 2020.

High production and low costs

The Paracatu mine was Kinross’ largest producer, producing over 542,000 Auq. ounce. The Kupol and Dvoinoye mines had another excellent year with strong production and costs below $ 600 per Au eq. ounce. The company appears to expect strong production of around 2.4 million Au equivalent. ounce. in 2021, which is in line with 2020.

Low cost producer

In fiscal 2022, Kinross expects production to increase to approximately 2.7 million Au equivalent. oz., reaching approximately 2.9 million eq. At. ounce. in 2023, with a downward trend in production costs of sales. Being the low cost producer must serve the shareholders of the company well in the long run.


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