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McLeod-Seltzer to chair Kinross

High-profile mining executive Catherine McLeod-Seltzer is set to step up from the role of director to independent chair at Canada-based gold miner Kinross Gold (TSX: K) on January 1 when John Oliver retires.
McLeod-Seltzer to chair Kinross McLeod-Seltzer to chair Kinross McLeod-Seltzer to chair Kinross McLeod-Seltzer to chair Kinross McLeod-Seltzer to chair Kinross

The gold miner expects to meet 2018 guidance

Staff reporter

The company announced the change in its quarterly results, where it reported lower production and higher costs than a year prior but said it expected to meet 2018 guidance.

President and CEO J. Paul Rollinson thanked Oliver for being "an important part of Kinross for more than 20 years", overseeing tremendous growth, and said he looked forward to McLeod-Seltzer's stewardship as the company built on its strong foundation.

The miner reported an adjusted net loss of US$48.4 million, or 4c per share for the third quarter, compared with adjusted net earnings of $84.1 million, or 7c/share in the previous corresponding period.

Kinross produced 586,260 attributable gold-equivalent ounces, down from 653,993oz AuEq a year earlier.

It said production was lower year-on-year at Fort Knox in Alaska largely due to the impact of a pit wall slide in the first quarter, higher than average rainfall, lower mill grades and fewer tonnes of ore processed on the heap leach pads.

"Our Nevada, Brazil, Ghana and Russia operations performed well during the quarter and we remain on track to meet our company-wide production and cost guidance for the year," Rollinson said.

The company expects to produce about 2.5Moz AuEq at an all-in sustaining cost (+/- 5%) of $975/oz sold, on both a gold-equivalent and by-product basis.

Although it expects to meet its 2018 capital expenditure forecast of just over $1 billion, it now anticipates other operating costs to rise from $100 million to $130 million, mainly due to tax-related items at Tasiast in Mauritania and pit wall slide-related costs at Fort Knox.

Meanwhile it expects Tasiast's performance to improve this quarter now its new SAG mill has been commissioned, however its phase two expansion plans remain paused

Rollinson said Kinross continued "to advance discussions with the government of Mauritania regarding our operations in the country" and had separately advanced financing activities.

Kinross ended the quarter with cash and equivalents of $470.1 million and no debt maturities until 2021.

Its shares closed down C2c to $3.52 to capitalise it at $4.4 billion.