Kinross Gold Doubles Down on Lobo-Marte Despite Cost Hike

Kinross Gold has revised its estimates for the Lobo-Marte gold project in Chile, pushing up costs by nearly two-thirds to $1.8 billion.

The updated estimate takes into account inflation since 2021 and changes to construction planning, with the company also deciding to buy mining equipment rather than reuse machinery from its nearby Maricunga project.

Despite the increased costs, Kinross still expects a strong return on investment, estimating an internal rate of return of 26% and a payback period of just 2.3 years at $4,100 gold per ounce.