In line with last year’s results, Kinross Gold plans to invest around US$1.05 billion in 2024. Part of the investments will be destined for the city of Paracatu, in the Northwest of Minas Gerais, where the company operates the largest gold mine. gold in Brazil and one of the largest in the world. The Canadian mining company’s plan is to invest US$145 million in Brazilian territory.
Although it does not detail projects in the country, the company’s estimated capital expenditures include, for example, US$60 million for mobile equipment, US$25 million for factory facilities and US$50 million for tailings structures. In 2023, the gold producer invested US$167 million on national soil. Total investment in the period, which also includes operations in the United States, Canada, Chile and Mauritania, reached US$ 1.055 billion.
In the statement released to shareholders, Kinross also informed that around US$160 million – US$1.1 million more than last year – will be allocated to exploratory activities. The company’s intention is to use the amount to monitor existing mineralization zones, as well as make new discoveries in all jurisdictions in which it owns. Specifically for Brazil, the mining company stated that efforts in exploration initiatives are concentrated on the extensive land packages that are mainly along the northwest corridor of the Paracatu mine. The company’s reserves in the Minas Gerais region stretch for more than 35 kilometers and are hosted by the sedimentary lot that houses the municipality. “An extensive soil survey revealed numerous anomalies which were followed up by prospecting, sampling and mapping. Recent drilling of some of these anomalies revealed mineralization and grades similar in style to Paracatu. In 2024, we hope to actively drill a number of untested targets and track the best results,” she said.
Last year, Kinross produced 2.15 million ounces of gold, which represents an increase of 10% compared to 2022. The increase was mainly due to greater production in La Coipa, Chile, and higher grinding levels , recoveries and performance in Tasiast, Mauritania. At the same time, the mining company’s sales rose 13%, to 2.18 million ounces of the metal .
In Minas Gerais, production remained stable in 2023. 588 thousand ounces of gold were produced in Paracatu, a growth considered negligible at 2% compared to the previous year. The company, however, highlighted that the result was a consequence of an increase in the plant’s productivity, as well as record recoveries, partially offset by lower grades. Meanwhile, gold sales from Paracatu grew 4%, to 592.2 thousand ounces.
Kinross President and CEO J. Paul Rollinson summed up 2023 as a great year for the mining company. “We met our production, cost and capital guidance and completed our projects in Tasiast and La Coipa. Our mine portfolio has produced solid results, we have more than doubled free cash flow year over year while maintaining our investment grade balance sheet, and we are taking this momentum into 2024,” he said.
For this year, the company ‘s expectation is to reach 2.1 million ounces of gold again. Kinross expects volume to be higher in the second half, driven by initial activity expected at Manh Choh in the United States, as well as increased production at Paracatu. For 2025 and 2026, the company’s outlook is to remain stable at 2 million ounces.