The corporate logo of Kinross Gold Corp. is shown. THE CANADIAN PRESS/HO

Kinross unveils decade-long gold production plan based on current portfolio of assets

Kinross unveils decade-long gold production plan based on current portfolio of assets

TORONTO — Kinross Gold Corp. says it intends to rely mainly on internally generated opportunities to continue to produce an average of 2.5 million gold equivalent ounces per year over the next decade.

In a news release and conference call on Tuesday, the Toronto-based miner didn’t directly acknowledge a media report from last week suggesting may sell its operations in the Americas to concentrate on its Russian and West African mines.

But CEO Paul Rollinson told analysts during the call that he is pleased with company’s existing portfolio of projects as well as Kinross’s size, which he said is big enough to support an internal team of technical experts.

He said he doesn’t “see a lot of upside in debating the rumour of the week,” while dismissing the idea of selling Kinross’s mines in North and South America, which produced 1.41 million gold equivalent ounces in 2019.

“We’re focused on the portfolio and making it the best it can be and we don’t feel under any pressure as it relates to (mergers and acquisitions),” he said.

In September, Kinross said it expects to increase production to 2.4 million ounces in 2021, 2.7 million in 2022 and 2.9 million in 2023.

A presentation posted Tuesday shows output from existing mines falling from 2024 through 2029 but being replaced by new production from as-yet-unsanctioned growth projects in Russia, the United States and Chile, as well as potential projects in those countries and West Africa.

“Initially, the rise to 2.9 million gold equivalent ounces by 2023 appears to not be sustainable, but … there exists a multitude of opportunities within the existing portfolio to keep production elevated over the longer term,” pointed out National Bank analyst Mike Parkin in a report.

Despite recent record high gold prices above US$2,000 per ounce, the company won’t approve major projects unless they are expected to be profitable at US$1,200 per ounce, chief technical officer Paul Tomory said on the call.

“We continue to do our planning at US$1,200,” he said. “Our primary focus is moving what are currently US$1,400 resources into a US$1,200 reserve.”

Kinross is working to improve the economics of its current list of potential projects by leveraging its past investments, driving down costs and finding ways to produce more gold with the same money, he said.

Last month, Kinross announced it would buy a controlling interest in the open pit Peak Gold project in Alaska. It plans to crush the ore there and transport it by truck 400 kilometres to the northwest to its existing Fort Knox mine, thus extending the life of the existing mill and infrastructure.

On the call, Rollinson said the same model could be used if other small mine prospects in Alaska are purchased. Tomory added the company has also considered using barges to transport ore on Alaskan rivers to Fort Knox.

Kinross is expected to pay its first dividend in seven years this week after reinstating it last month in view of its growing gold production and higher gold prices.

By Dan Healing in Calgary

This report by The Canadian Press was first published Oct. 20, 2020.

Companies in this story: (TSX:K)

The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a clinic in Toronto on Thursday, January 7, 2021. THE CANADIAN PRESS/Nathan Denette
Alberta vaccine rollout expanding to front-line health-care workers

More than 240,000 eligible health-care workers can begin booking vaccine appointments starting… Continue reading

File photo
The Red Deer Rebels will have three new assistant coaches when the WHL regular season starts on Friday. Brad Flynn (left), will be on the bench alongside fellow assistant Ryan Colville (right) head coach Brent Sutter (middle). (Photo by BYRON HACKETT/Advocate Staff)
Sutter steps down as Red Deer Rebels head coach

Red Deer Rebels Owner, GM and head coach Brent Sutter has stepped… Continue reading

Premier Jason Kenney announced $200 million more money that will benefit seniors living in continuing care on Wednesday. (photography by Chris Schwarz/Government of Alberta)
Alberta’s in-school rapid screening test program expanding

Alberta’s in-school rapid screening test program will expand to as many as… Continue reading

Parents and students learned Tuesday what the coming school year will look like. It's pretty much back to business as usual, said Education Minister Adriana LaGrange. School precautions include frequent cleaning, keeping students in the same groups where possible, planning the school day to allow for physical distancing and staying home when sick. (photography by Chris Schwarz/Government of Alberta)
Alberta’s largest school board says no to United Conservative draft school curriculum

CALGARY — Alberta’s largest school board says it will not use the… Continue reading

Red Deer-South MLA Jason Stephan is among those who have signed an open letter criticizing the government’s return to stricter health measures. (Advocate file photo).
Updated: Kenney tells UCP caucus COVID-19 dissent OK, breaking health rules means expulsion

15 MLAs released letter on Wednesday critical of new health restrictions

Prime Minister Justin Trudeau watches a speaker appear by videoconference during a news conference in Ottawa, Friday, April 9, 2021. Grassroots Liberals have overwhelmingly endorsed a resolution calling on the federal government to develop and implement a universal basic income — despite Prime Minister Justin Trudeau's apparent lack of enthusiasm for the idea. THE CANADIAN PRESS/Adrian Wyld
Trudeau winds up Liberal convention with election campaign-style speech

OTTAWA — Justin Trudeau wound up a three-day Liberal convention Saturday with… Continue reading

Team Canada skip Brendan Bottcher makes a shot against Italy at the Men's World Curling Championships in Calgary, Alta., Tuesday, April 6, 2021.THE CANADIAN PRESS/Jeff McIntosh
Men’s world curling championship in Calgary in COVID limbo

CALGARY — The men’s world curling championship in Calgary remained suspended Saturday… Continue reading

Pipes intended for construction of the Keystone XL pipeline are shown in Gascoyne, N.D. on Wednesday April 22, 2015. THE CANADIAN PRESS/Alex Panetta
Non-profit Quebec law centre to aid environmental group targeted by Alberta oil firm

QUEBEC — The Quebec Environmental Law Centre is coming to the aid… Continue reading

Conservative leader Erin O'Toole holds a press conference on Parliament Hill in Ottawa on Tuesday, April 6, 2020. Top Tory leaders of past and present will speak with supporters today about what a conservative economic recovery from COVID-19 could look like. THE CANADIAN PRESS/Sean Kilpatrick
Conservatives cite empathy, relationships as ways to help expand their movement

OTTAWA — Conservatives should show empathy with Black residents who say they’ve… Continue reading

NDP Leader John Horgan celebrates his election win in the British Columbia provincial election in downtown Vancouver, B.C., Saturday, Oct. 24, 2020. New Democrats are reconvening for the second day of a three-day policy convention as they look to push past the glitches of the virtual event's opening sessions and rally around keynote speaker John Horgan. THE CANADIAN PRESS/Jonathan Hayward
New Democrats reconvene as hiccups, frustrations plague national policy convention

OTTAWA — New Democrats reconvened Saturday for the second day of a… Continue reading

FILE - In this Monday, Oct. 23, 2017 file photo, President Donald Trump speaks during a joint statement with Singapore's Prime Minister Lee Hsien Loong in the Rose Garden of the White House in Washington. Former President Donald Trump plans to affirm his commitment to the Republican Party — and raise the possibility that someone else will be the GOP's next presidential nominee — in a closed-door speech to donors Saturday night, April 10, 2021. (AP Photo/Evan Vucci, File)
Trump in 2024? He says only that ‘a Republican’ will win

PALM BEACH, Fla. — Former President Donald Trump plans to affirm his… Continue reading

A cruise ship sits docked waiting for passengers to be evacuated in Kingstown, on the eastern Caribbean island of St. Vincent, Friday, April 9, 2021 due to the eruption of La Soufriere volcano. (AP Photo/Orvil Samuel)
Ash-covered St. Vincent braces for more volcanic eruptions

KINGSTOWN, St. Vincent — People who ignored an initial warning to evacuate… Continue reading

Owner of 4 Point Taekwondo Kevin Mejia holds a board as organizer and martial artist Kevin Olsen breaks it in Edmonton on Friday, April 9, 2021. One hundred martial artists from around the world, will be breaking a board for an event called "Break for a Breakthrough." The idea is for martial artists to unite and re-engage with the arts because they may have drifted away or lost enthusiasm as a result of the pandemic. THE CANADIAN PRESS/Jason Franson
Break for a Breakthrough: Canadian hosts international martial arts demonstration

EDMONTON — Whether he’s breaking a wooden board, a clay tile, cement… Continue reading

Most Read