Kinross Raises Lobo-Marte Cost Estimate Nearly Two-Thirds to $1.8B

Kinross Gold has updated its cost estimate for the Lobo-Marte gold project in Chile, increasing it by nearly two-thirds to $1.8 billion (C$2.5 billion). The post-tax net present value is estimated at $4.3 billion.

The company attributed the increase to inflation, which accounts for more than $400 million of the rise from the 2021 estimate. Kinross also added about $100 million after deciding to buy mining equipment rather than reuse machinery from its nearby Maricunga project.

Chief Technical Officer Will Dunford said that 'the combination of low mining cost, low processing cost, high heap leach grade and the resource size are what make this project a central focus in our grade enhancement strategy.'