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Kinross Gold Corporation. - CEO, J Paul Rollinson - The Market Herald Canada
  • Mulrtinational miner Kinross Gold (K) has declared its first dividend in seven years, alongside an aggressive new three-year expansion plan
  • At C$0.03 per share, the company posted the dividend following a strong year-to-date, partly resulting from gold's impressive performance in the wake of the COVID-19 pandemic
  • Meanwhile, Kinross Gold also outlined an ambitious three-year plan to ramp up annual production by 2.9 million ounces, a 20 per cent increase on its current output
  • To meet the increased outlook, Kinross hopes to improve production at its Kupol and Bald Mountain mines, as well as enhance the logistics of its Chirano, Fort Knox and Paracatu mines
  • Kinross Gold (K) is up 8.12 per cent and is trading at $13.31 per share

Multinational miner Kinross Gold (K) has declared its first dividend in seven years, alongside an aggressive new three-year expansion plan.  

At C$0.03 per share, the company posted the dividend following a strong year-to-date, partly resulting from gold's impressive performance in the wake of coronavirus.

Delighting investors further, Kinross Gold has outlined an ambitious three-year plan to ramp up annual production by 2.9 million ounces, a 20 per cent increase on its current figures.

To keep up with the increased output, Kinross hopes to increase production at its Kupol and Bald Mountain mines, as well as enhance the operating logistics of its Chirano, Fort Knox and Paracatu mines.

At the end of last year, the company’s cumulative mineral estimate sat at 24.3 million gold ounces, but this does not include the recently outline 6.4 million ounces at the prospective Lobo-Marte project, nor its ongoing exploration across its operations.

With its aggressive expansion plan in place, the company also reconfirmed its 2020 guidance of 2.4 million gold equivalent ounces.

Contrasting the stable guidance, however, Kinross’s expected full-year operating costs have ballooned 40 per cent to $140 million, due to the strike earlier this year at its Tasiast mine, as well as pandemic-related expenses.

President and CEO Kinross J. Paul Rollinson commented on the dividend and the company's new plans moving forward.

“With our investment grade balance sheet, strong free cash flow, significant margins and substantial cash position, we are pleased to return capital to our shareholders in the form of a dividend.

“Our growing production profile, combined with our declining cost structure, is expected to drive strong and growing free cash flow. Kinross will continue to prioritize balance sheet strength and disciplined capital allocation as we assess future development opportunities to generate value for our shareholders,” he said.

Kinross Gold (K) is up 8.12 per cent and is trading at $13.31 per share at 12:04pm EDT.


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