Kinross Gold (KGC) produced 654,000 gold equivalent ounces in 1Q18, a 2.7% fall YoY (year-over-year). KGC’s 1Q18 production fell YoY mainly for the following reasons:
- the completion of mining activities at Kettle River–Buckhorn during 2Q17
- lower production at Kupol due to grade declines
- fewer ounces recovered from heap leach pads at Maricunga
- lower production at Fort Knox due to grade declines
Higher production at Bald Mountain and Paracatu partially offset the decline resulting from the above-mentioned factors.
In the Americas region, Bald Mountain continued its strong performance due to the timing of ounces recovered from heap leach pads. Production at Round Mountain was in line with the previous quarter but slightly lower YoY due to lower recoveries from heap leach pads.
Production at Fort Knox fell YoY, primarily due to a decline in grades. Paracatu’s production, on the other hand, increased significantly due to increases in recoveries and the amount of ore processed.
Total production for the year in Russia fell YoY due to the planned mining of lower-grade ore. The company expects grades to remain at this level for the rest of the year.
In Kinross’s West African region, Tasiast’s production was lower YoY due to lower mill grades. At Chirano, production was almost flat YoY.
Production guidance reaffirmed
For 2018, Kinross has reiterated its production guidance of 2.5 million ounces, with a plus or minus 5% variance. It also expects production to be at or slightly above this level over the next three years.
Now that we’ve looked at Kinross Gold’s production progression in the near term, let’s look at its production outlook in the medium to long term.