Kinross Gold cuts 2015 capex and cost forecast, trims output view

Thu Sep 17, 2015 6:14pm EDT
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Sept 17 (Reuters) - Canadian miner Kinross Gold Corp on Thursday lowered its full-year capital spending and overhead costs forecasts and raised the lower end of its production outlook.

The company, which has been looking for ways to reduce costs amid sliding metals prices, cut its 2015 capital spending forecast to $650 million from $725 million.

""Every region has stepped up and is expected to produce at, or above, its prior guidance range, and below prior cost guidance ranges," Chief Executive Paul Rollinson said in a statement.

Kinross said it expects overhead expenses to be below its forecast of $205 million and said it is looking to more opportunities to lower such costs further.

The company said it expects to produce 2.5-2.6 million gold equivalent ounces in 2015, compared with its previous forecast of 2.4-2.6 million gold equivalent ounces.

Kinross reduced its all-in sustaining cost forecast to a range of $975 to $1,025 per ounce from $1,000 to $1,100.

Cost of sales is now expected to be $690-$730 per ounce, down from its previous forecast of $720-$780 per ounce.

Kinross had slid to a loss in the second quarter, in line with market expectations, on the back of a weaker gold price, lower gold sales and the temporary suspension of operations at a mine in Chile.

At that time, in July, Rollinson said Kinross was again considering cutting jobs at its Tasiast gold mine in Mauritania to lower costs. (Reporting by Shubhankar Chakravorty in Bengaluru; Editing by Savio D'Souza)