On November 5th, Kinross released its 2024 third-quarter results. Click here to view the news release.
Highlights from the strong-third quarter include the following:
- Guidance reaffirmed: Kinross remains on track to meet its 2024 annual guidance for production, cost of sales, all-in sustaining cost and capital expenditures.
- Production of 564,106 gold equivalent ounces (Au eq. oz.).
- Tasiast had another excellent quarter with higher mill throughput rates and was again the lowest cost asset in the portfolio.
- Fort Knox delivered record grade and recovery as production commenced from Manh Choh during the quarter, resulting in a significant increase in cash flow from Fort Knox.
- Paracatu increased production compared with Q2 2024 as a result of higher grades, in accordance with planned mine sequencing, and strong recoveries.
- At Round Mountain Phase S, the heap leach pad expansion is now complete, on schedule and under budget, with solution application permits received.
- At Great Bear, the Company released the Preliminary Economic Assessment (PEA) on September 10, 2024. The project is expected to produce over 500,000 ounces per year at impressive margins with an all-in sustaining cost of approximately $800 per ounce during the first 8 years. For the Advanced Exploration (AEX) program, Kinross has submitted its final Closure Plan to the Ontario Ministry of Mines for its approval and is expecting to start early works construction in the near term.
- At Round Mountain Phase X and Curlew, exploration drilling is progressing well, with results to date showing strong grades and widths.
- Balance sheet strength: Kinross continued to strengthen its balance sheet, repaying $350.0 million on its term loan in Q3 2024 and an additional $100.0 million on November 1, 2024.
- Kinross’ Board of Directors declared a quarterly dividend of $0.03 per common share payable on December 12, 2024, to shareholders of record at the close of business on November 28, 2024.
J. Paul Rollinson, CEO, made the following comments in relation to the strong third-quarter results:
“I am pleased to report that our portfolio of mines continued its excellent performance, and we are on track to meet our annual guidance.
“We remain heavily focused on consistent operational performance, cost control, capital discipline and delivering on planned grades to generate value for our shareholders. Our ability to hold costs in this strong gold price environment continues to benefit our margins, which grew by 14% to $1,501 per ounce sold compared with Q2 and the 6% increase in the realized gold price. We also delivered record free cash flow, which increased by 20% compared with the previous quarter.
“During the quarter, we released the PEA at Great Bear, which reaffirms our view of a high-quality, high-margin asset with robust economics, modest capital requirements and clear opportunity for resource growth. Following an invitation from the Ontario Ministry of Mines, we are pleased to have submitted our final AEX Closure Plan for approval, which is an important permitting milestone. We also completed the commissioning of our Manh Choh project resulting in a significant increase in cash flow from Fort Knox and advanced Phase X at Round Mountain.”
For more information on Kinross’ strong third-quarter results, click here to view the presentation from our Q3 2024 results conference call and webcast, and click here to view an archive of that webcast.
