Strike at Kinross Gold’s Tasiast Mine suspended

Kinross Gold Corp. [K-TSX; KGC-NYSE] reported that the strike by unionized employees at its Tasiast mine has been suspended at the request of the Government of Mauritania.

The recent shutdown, which began on May 5 and ended May 22, is not expected to materially affect 2020 production or the development of the 24k expansion.

The company has adhered to the three-year collective labour agreement finalized in Q4 2019, all applicable labour codes, and rigorously complied with all government mandates related to COVID-19 prior to the strike and will continue to do so going forward.

While Kinross Gold disagrees with the basis for the strike, it remains open to discussions with the staff delegates.

The 100%-owned Tasiast mine is an open-pit operation located in northwestern Mauritania, approximately 300 km north of the capital Nouakchott.

Tasiast processes ore via mill and dump leach. At year-end 2019, after a full year of operation since the Phase One expansion was complete, Tasiast posted record annual production and record low costs of sales per ounce.

The Tasiast 24k Project, which is expected to incrementally increase throughput capacity to 24,000 t/d by mid-2023, is proceeding on plan. The capital-efficient project is expected to further increase production, lower costs, and generate significant cash flow and attractive returns. It is expected to extend mine life by four years to 2033.

Gold equivalent production for 2019 was 391,097 ounces with cost of sales at USD$602/oz. Proven and probable (2019) reserves are pegged at 6,783,0000 ounces of gold. Life-of-mine is expected to last until 2033.

Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Chile, Ghana, Mauritania, and Russia.