Kinross is a global gold mining company with strong and consistent operating results driven by a high performance culture. With nine mines in three regions, our focus is delivering value based on the core principles of operational excellence, balance sheet strength and responsible mining.
CEO Letter to Shareholders
In 2016, Kinross delivered strong results both at our mining operations and at the organic projects that will shape our future.
J. Paul Rollinson
President and Chief Executive Officer
Our production of 2.8 million gold equivalent ounces (Au eq. oz.) set a new company record as we continued to rank among the world’s largest gold producers. Despite the challenges we faced throughout 2016, we met our guidance on production and costs for the fifth straight year, reflecting a culture of continuous improvement, operational excellence, and disciplined cost management. Our solid operational performance, combined with an improved gold price, generated robust cash flow of more than $1 billion. We continued to maintain significant liquidity and one of the strongest balance sheets in the industry, giving us the financial strength and flexibility to fund our pipeline of organic development projects.
AU EQ. OZ. (ATTRIBUTABLE)1
OPERATING CASH FLOW
We took major steps to advance those projects, which we expect will extend the life of our mines and maintain consistent and quality production, while reducing costs and growing cash flow.
At Tasiast, we began building Phase One of an expansion to deliver the full value of this world-class deposit, while launching a feasibility study on Phase Two. At Bald Mountain, our drilling program doubled reserves and added new resources which extended estimated mine life, and confirmed the significant upside potential we saw when we acquired the asset. We also made progress advancing additional organic projects at our other sites, including our two Russian operations and the Round Mountain Phase W expansion, all of which have the potential to extend mine life or expand production.