On September 17th, Kinross declared a dividend of US$0.03 per common share and announced a robust three-year guidance with production expected to steadily increase by 20% to 2.9 million gold equivalent ounces in 2023, and an overall downward trend in costs to drive strong free cash flow.
To learn more, view the release here.
“With our investment grade balance sheet, strong free cash flow, significant margins and substantial cash position, we are pleased to return capital to our shareholders in the form of a dividend,” said J. Paul Rollinson, President and CEO. “We expect to increase our production by approximately half a million gold equivalent ounces, or 20%, to 2.9 million ounces over the next three years, which is indicative of the strength of our global portfolio and our ability to optimize mine plans and find value-enhancing opportunities. We are also studying further organic development options given our attractive pipeline of projects and promising exploration results. Our growing production profile, combined with our declining cost structure, is expected to drive strong and growing free cash flow.”
The expected production growth represents additional ounces enabled by planned life of mine extensions and projects due to our past investments, continuous improvement programs, and an exploration strategy focused on prospects around existing operations.
In addition to the special dividend, Kinross’ Board approved a plan to pay a quarterly dividend of US$0.03 per share.
Kinross has also reinstated its 2020 production guidance of 2.4 million gold equivalent oz., at a production cost of sales of $720 per Au eq. oz., all-in sustaining costs of $970 per Au eq. oz. and capital expenditures of $900 million. The company remains on track to meet this guidance for the year.