Subscribe for 33¢ / day
bald mountain1.jpg

Kinross Gold Corp.’s Bald Mountain Mine Top Pit 2

TORONTO — Kinross Gold Corp. announced Feb. 14 its results for the fourth-quarter and year-end Dec. 31, 2017. The company reported its sixth consecutive year of strong results including the doubling of production at its Bald Mountain mine.

“For the sixth consecutive year, Kinross delivered excellent operational results and met its full-year guidance for production and costs,” said J. Paul Rollinson, president and CEO. “We generated more than $950 million in operating cash flow, while adjusted net earnings almost doubled year-over-year to approximately $180 million. Our portfolio of mines performed well, notably Bald Mountain, which more than doubled its production in 2017 and Tasiast, which reduced cost of sales per ounce by approximately 30 percent year-over-year.

Operating results

At Round Mountain, 2017 production was higher compared with 2016 mainly due to strong mill grades, which were the highest since 2003. The mine’s production decreased quarter-over-quarter largely due to fewer tons produced from the heap leach pads. Round Mountain’s full-year cost of sales per ounce was lower year-over-year mainly due to higher grades and lower labor costs. Quarterly cost of sales per ounce was higher compared with Q3 2017, mainly due to lower production and higher contractor and maintenance costs.

Bald Mountain more than doubled production in 2017 compared with the previous year due to higher grades and more tons placed on the heap leach pads. As expected, production was higher in the fourth quarter compared with Q3 2017 due to the timing of ore placed on the pads.

Bald Mountain lowered its full-year cost of sales per ounce by almost half compared with 2016, and achieved its lowest cost quarter since the mine was acquired by Kinross. These reductions were mainly due to the substantial increase in gold ounces sold, productivity improvements and cost-reduction initiatives.

In the Americas, Kinross also operates Fort Knox, Kettle River-Buckhorn, Paracatu and Maricunga. The company also mines in Russia and West Africa.

2017 fourth-quarter highlights

  • Production: 652,710 gold equivalent ounces, compared with 746,291 Au eq. oz. in Q4 2016.
  • Revenue: $810.3 million, compared with $902.8 million in Q4 2016.
  • Production cost of sales: $653 per Au eq. oz., compared with $712 in Q4 2016.
  • All-in sustaining cost: $1,019 per Au eq. oz. sold, compared with $1,012 in Q4 2016. All-in sustaining cost per gold ounce sold on a by-product basis was $1,013 in Q4 2017, compared with $1,010 in Q4 2016.
  • Reported net earnings/loss: reported net earnings of $217.6 million, or $0.17 per share, compared with a net loss of $116.5 million, or $0.09 per share, in Q4 2016.
  • Adjusted net earnings/loss: Adjusted net earnings of $16.3 million, or $0.01 per share, compared with an adjusted net loss of $50.9 million, or $0.04 per share, in Q4 2016.

2017 full-year highlights

  • Production: 2,673,533 Au eq. oz., compared with 2,789,150 Au eq. oz. for full-year 2016.
  • Revenue: $3,303.0 million, compared with $3,472.0 million for full-year 2016.
  • Production cost of sales: $669 per Au eq. oz., compared with $712 for full-year 2016.
  • All-in sustaining cost: $954 per Au eq. oz. sold, compared with $984 for full-year 2016. All-in sustaining cost per Au oz. sold on a by-product basis was $946 for full-year 2017, compared with $975 per Au oz. sold for full-year 2016.
  • Operating cash flow: $951.6 million, compared with $1,099.2 million for full-year 2016.
  • Adjusted operating cash flow: $1,166.7 million, compared with $926.7 million for full-year 2016.
  • Reported net earnings/loss: Earnings of $445.4 million, or $0.36 per share, compared with a reported net loss of $104.0 million, or $0.08 per share, for full-year 2016.
  • Adjusted net earnings: Earnings of $178.7 million, or $0.14 per share, compared with earnings of $93.0 million, or $0.08 per share, for full-year 2016.

2018 outlook

Kinross expects to produce 2.5 million Au eq. oz. at a production cost of sales per Au eq. oz. of $730. The 2018 forecast for exploration is approximately $75 million.

0
0
0
0
0

Load comments