On May 7th, Kinross released its 2024 first-quarter results.
Click here to view the news release.
Highlights from the first-quarter include the following:
- Production of 527,399 gold equivalent ounces (Au eq. oz.), a 13% year-over-year increase
- On track to meet annual guidance: On an attributable basis, Kinross expects to produce 2.1 million Au eq. oz. (+/- 5%) at a production cost of sales per Au eq. oz. of $1,020 (+/- 5%) and all-in sustaining cost of $1,360 (+/- 5%) per ounce sold for 2024. Total attributable capital expenditures are forecast to be approximately $1,050 million (+/- 5%).
- Balance sheet strength: Kinross has improved its debt metrics and continues to maintain its investment grade credit ratings. As of March 31, 2024, Kinross had cash and cash equivalents of $406.9 million, for total liquidity of approximately $2 billion
- Kinross’ three largest producing mines – Tasiast, Paracatu and La Coipa – delivered 68% of total production, with production cost of sales of $821 per Au eq. oz. sold and margins of $1,251 per Au eq. oz. sold
- Tasiast achieved record quarterly throughput as the mine continued its strong performance since the complete of the 24k project
- Paracatu achieved record quarterly throughput and La Coipa continued to deliver high margin production
- Kinross’ pipeline of development projects continues to advance on plan
- At Great Bear, the drilling campaign made strong progress in Q1 2024 and continues to successfully target extensions of the resource at depth.
- At Manh Choh, operations are ramping up and the project is on track for first production in early Q3 2024.
- At Round Mountain, Phase S mining is on plan, and the exploration decline at Phase X is progressing well, with approximately 1,800 metres developed to date.
- Kinross’ Board of Directors declared a quarterly dividend of $0.03 per common share payable on June 13, 2024, to shareholders of record at the close of business on May 30, 2024.
- Sustainability Report: Kinross expects to publish its 2023 Sustainability Report later this month, providing a comprehensive summary of its performance over the past year
J. Paul Rollinson, CEO, made the following comments in relation to 2024 first-quarter results:
“We have had a strong start to the year and are well positioned to meet our annual guidance. Our portfolio of mines performed well, driven by strong operational performance, disciplined cost management and higher gold prices. The Company delivered a 20% increase in margins to $1,088 per ounce sold, which is approximately double the percentage increase in the gold price over the same period. As a result, free cash flow more than tripled over Q1 2023.
“With the strong sustained gold price, we will continue to prioritize our financial discipline and operational excellence. We will focus on maintaining our margins and cost profile, prudent capital allocation and debt reduction.
“Our development projects are all proceeding as planned. At Great Bear, we made excellent progress on our 2024 drilling campaign, which continued to successfully target extensions of the resource at depth, and we remain on track to release a preliminary economic assessment (PEA) in the second half of the year. At Round Mountain, Phase S and Phase X are advancing well. We are also looking forward to first production at Manh Choh early in the third quarter. At Tasiast, our solar power plant is complete and generating power at full capacity.
“Kinross’ commitment to Sustainability is deeply rooted in our values and culture, and we are proud of our consistent high rankings in our industry. We are looking forward to publishing our 2023 Sustainability Report later this month, marking our 16th year of reporting in this important area.”
For more information on Kinross’ 2024 first-quarter results, view the presentation here, listen to an archive of the conference call and webcast here, and view an archive of Kinross’ virtual annual meeting here.
