In 2016, Kinross expects to produce a record 2.7 – 2.9 million gold equivalent ounce (Au eq. oz.) from its operations, compared with full-year 2015 production of 2.59 million Au eq. oz, the Toronto based miner which operates the Chirano Gold Mine in Ghana’s Western Region has predicted..
The forecast increase is mainly a result of the acquisition of Bald Mountain and the 50% of Round Mountain the Company did not already own offset by grade reductions at Kupol and Chirano, and the expected closure of Kettle River-Buckhorn in Q3 2016.
Production guidance also takes into consideration the potential for a temporary curtailment of mill operations at Paracatu due to a lack of rainfall in southcentral Brazil.
Based on the significant amount of rain already received in January, the Company does not expect a curtailment in the first half of 2016.
Production in the second half of 2016 is expected to be higher compared with the first half of the year due mainly to mine sequencing at Tasiast and the seasonal impact on the heap leach at Fort Knox, Bald Mountain and Round Mountain. The lower production during the first half of the year is expected to have a corresponding impact on cost guidance.
Production cost of sales per Au eq. oz. is expected to be in the range of $675 – $735 for 2016, continuing the reduction experienced in 2015, largely as a result of favourable currency and oil movements. The Company has forecast an all-in sustaining cost for 2016 of $890 – $990 per Au eq. oz. sold, and per ounce sold on a by-product basis, which is lower than 2015 full-year guidance.
