Kinross Gold releases updated 2015 full-year guidance
Canadian-based Kinross Gold has mines and projects in Ghana, Mauritania, the United States, Brazil, Chile and Russia.
“We are on track for another strong year as a result of our continued focus on cost reduction and drive to enhance production,” Kinross President and CEO J. Paul Rollinson said. “Every region has stepped up and is expected to produce at, or above, its prior guidance range, and below prior cost guidance ranges. Capital expenditures, which we have decisively reduced in recent years, are expected to come in significantly below prior guidance. Expected savings from sustaining capital represents roughly half the reduction, with the remainder coming from a combination of planned deferrals and savings of discretionary capital spending. This, along with measured reductions in overhead, have contributed to a sizable reduction in our all-in sustaining cost guidance.”
Kinross Gold said in the update that the all-in sustaining cost per gold equivalent ounce lowered to $975-$1,025 from $1,000-$1,100, while the cost of sales per Au eq. ounce also lowered to $690-$730 from the previous guidance range of $720-$780. Production guidance range narrowed upward to 2.5-2.6 million Au eq. ounce and overhead (general and administrative, and business development expenses) was expected to be below guidance of $205 million.
Kinross also announced that it is exploring opportunities to further reduce overhead costs as part of a companywide spending review. However, these results won’t be announced until the third quarter of 2015.