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Kinross withdraws FY'20 production, cost guidance over COVID-19 uncertainty

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Kinross withdraws FY'20 production, cost guidance over COVID-19 uncertainty

Canada-based Kinross Gold Corp. withdrew its full-year 2020 production and cost guidance due to uncertainty caused by the coronavirus pandemic.

The company had forecast full-year 2020 gold equivalent production of 2.4 million ounces at an all-in sustaining cost of US$970 per ounce. For the first quarter, Kinross expects preliminary gold equivalent production of about 560,000 ounces and sales of about 540,000 ounces. The preliminary cost of sales per ounce sold for the quarter is expected to be at the higher end of the original annual guidance range.

Favorable fuel prices and foreign exchange rates are expected to offset some of Kinross' incremental costs resulting from its contingency measures. The company noted April 1 that its mines remain online, and operations have been largely unaffected by the crisis to-date.

READ MORE: Sign up for our weekly coronavirus newsletter here, and read our latest coverage on the crisis here.

Kinross' Kupol gold mine in Russia is said to be on lockdown, while its Toronto office was closed in early March after an employee tested positive for COVID-19, the disease caused by the virus.

As a precautionary measure, Kinross said it drew down US$750 million from its US$1.5 billion revolving credit facility, although it does not currently plan to use the funds. As of March 31, the company said it has more than US$1 billion in cash and cash equivalents. Kinross also said it submitted a drawdown notice for US$200 million on the US$300 million Tasiast project financing facility. The first funds are expected in mid-April.