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Kinross Gold's Paracatu mine delivers record output in 2018

Bnamericas Published: Thursday, February 14, 2019
Kinross Gold's Paracatu mine delivers record output in 2018

Kinross Gold's Paracatu project (pictured), one of the largest gold mines in Brazil, delivered record annual production of 145,634oz gold equivalent in 2018, up 45% to compared to 2017, mainly due to higher recoveries and throughput.

"It's a combination of a lot of work by the operating team there who better understand the performance of the plant and how it reacts to different ores... We're going to see recoveries at a higher level than we saw in the past," Paul B. Tomory, chief technical officer of the firm, said on a conference call with analysts.

Kinross's earnings in 2018 reached US$128mn compared to US$179mn in 2017, the company said in a release.

It produced a total 2.4Moz attributable gold equivalent in 2018, which was in line with the company's 2018 guidance range. This compares with production of 2.6Moz gold equivalent in 2017.

The company's revenue was US$3.2bn for 2018, down slightly from US$3.3bn in 2017.

In 2019, Kinross expects to produce 2.5Moz gold equivalent (+/- 5%) from its operations, in line with 2018 production.

ORGANIC PROJECTS IN CHILE

Kinross CEO Paul Rollinson told analysts: "We're focused on advancing our pipeline of organic projects which are expected to extend minelife or expand production at existing mines in the Americas with relatively low execution risk."

Rollinson said that the key milestones for 2019 are the completion of the Lobo-Marte scoping study in the first quarter and the completion of a feasibility study at La Coipa in the third quarter.

Tomory added that the company expects to share highlights of the Lobo-Marte scoping study in the 1Q earnings results in May.

In the case of La Coipa, he said that all permits are in hand and that the feasibility study is focused on mining out phase 7 of the project, but they are also assessing opportunities to mine other ore bodies.

"Our strategy in Chile is to use La Copia as a longer term return to production," Tomory said.

A presentation by the company states that it is assessing the potential to share resources and leverage synergies between Lobo-Marte and La Coipa.

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