Kinross Gold (KGC) produced 602,049 gold equivalent ounces in Q2 2018, a 13% fall YoY (year-over-year). Its second-quarter production fell YoY, mainly due to the following:
- completion of mining activities at Kettle River–Buckhorn in Q2 2017
- lower production at Kupol, Fort Knox, and Paracatu due to grade declines
- lower production at Round Mountain due to fewer ounces recovered from heap leach pads
Higher production at Bald Mountain was partially offset by decline resulting from the above factors.
In the Americas region, Bald Mountain’s production declined sequentially due to the timing of the ounces recovered from the heap leach pads. On a YoY basis, however, production increased due to an increase in ore mined and increased recoveries from the 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 and a pit wall failure in Q1 2018.
Total production for the quarter in Russia was in line with Q1 2018 but declined YoY due to planned mining of lower-grade ore. The company expects grades to remain at that level for the rest of the year.
In Kinross’s West African region, Tasiast production was lower YoY due to lower mill grades. At Chirano, production was almost flat YoY.
Production guidance reaffirmed
For 2018, Kinross 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 that level over the next three years.
Now that we’ve looked at Kinross Gold’s production progression, let’s look next at the progress of its growth projects and the impact on future production.