Kinross Gold reports record $1 billion free cash flow in 2020

Global mining major Kinross Gold made US$1 billion in free cash flow last year, as a strong production performance and sustained high gold prices drove a record financial performance across several metrics.

Kinross released its full-year financial results yesterday, which included adjusted net earnings more than doubling year-over-year to $966.8 million in 2020. The firm ended the year with $1.2 billion of cash and equivalents and total available liquidity of $2.8 billion.

President and CEO J. Paul Rollinson said: “Kinross delivered an excellent year in 2020, generating record free cash flow of more than $1 billion from our diversified portfolio of mines. We met our original guidance for the ninth consecutive year despite the impacts of the global pandemic.”

The TSX company produced 2.4 million gold equivalent ounces over the duration of 2020, at all-in sustaining costs of $987 per ounce. Its three largest operations – Paracatu in Brazil, Kupol in Russia and Tasiast in Mauritania – churned out 62% of the total annual output.

In particular, the Tasiast mine delivered a record year for production and low costs for the second year running. Throughput is expected to increase to 21,000 tonnes per day by the end of the year with the Tasiast 24k project.