Kinross Gold not ‘under any pressure’

• Canadian miner Kinross Gold Corp. is not under any pressure to do deals, chief executive Paul Rollinson said on Tuesday, tamping down a media report that said it was eyeing a London listing and the sale of its business in the Americas.

Newspaper reports in Canada, citing anonymous sources, said last week Kinross was considering moving its primary stock listing to London and selling its North and South American gold mines.

Four of seven Kinross mines are located in the Americas, comprising the largest part of its production and an important part of its overall business, Rollinson said during an investor presentation.

“I don’t see a lot of upside in debating the rumour of the week,” he said, adding the miner looks at opportunities from time to time but prefers asset deals that offer synergies.

“We’re focused on the portfolio and making it the best we can be and we don’t feel under any pressure as it relates to M&A.”

Selling the Americas assets could unlock value but it is not clear that Kinross’ remaining Africa and Russian properties would attract an improved multiple, TD Securities analyst Greg Barnes said in a note on Monday.

“And in an environment in which investors are encouraging consolidation and scale, by splitting- up, Kinross would be going against the grain,” the analyst wrote.

On Tuesday, To ronto- based Kinross said it expects to produce about 2.5 million gold equivalent ounces annually from 20202029, citing growing output across its mines and declining costs.

Kinross in September said it expected to increase production by 20 per cent from 2021–2023, with an estimated output of 2.4 million gold equivalent ounces in 2021, 2.7 million gold equivalent ounces in 2022 and 2.9 million gold equivalent ounces in 2023.

In an emailed statement, Kinross said four growth projects should help maintain production in coming years: the recently acquired Peak project in Alaska; the so- called Phase S extension at Round Mountain; the Lobo- Marte project in Chile; and Udinsk, the first deposit expected to be developed at the Chulbatkan project in Russia’s far east.

“The reinvestments in our portfolio, continuous improvement initiatives and exploration programs have enabled us to add lower cost and lower risk projects that leverage existing infrastructure and enhance our long- term production profile,” Rollinson said in a statement.

Kinross rose 1.4 per cent to US$9.01 in morning trading in New York, contributing to this year’s 90 per cent advance.