Kinross Gold Corp 6-K, filed Jun 23, 2021
Kinross Gold Corp (KGC)
About this 6-K
Kinross Gold Corp filed this 6-K on June 23, 2021.
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of June, 2021
Commission File Number: 001-13382
KINROSS GOLD CORPORATION
(Translation of registrant's name into English)
17th Floor, 25 York Street,
Toronto, Ontario M5J 2V5
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40F:
Form 20-F ¨ Form 40-F x
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):_____
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):_____
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ¨ No x
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2b:
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This Current Report on Form 6-K, dated June 22, 2021 is specifically incorporated by reference into Kinross Gold Corporation's Registration Statements on Form S-8 [Registration No. 333-217099, filed on April 3, 2017 and Registration Nos. 333-180824, 333-180823 and 333-180822, filed on April 19, 2012.]
This report on Form 6-K is being furnished for the sole purpose of providing a copy of the Material Change Report as filed on SEDAR on June 22, 2021 by Kinross Gold Corporation in connection with a temporary suspension of mill operations at its Tasiast project in Mauritania due to a fire on June 15, 2021.
INDEX
Table of Contents
SIGNATURES
EXHIBIT INDEX
| 99.1 | Material Change Report as filed on SEDAR on June 22, 2021 in connection with a temporary suspension of mill operations at Kinross Gold Corporation’s Tasiast project in Mauritania due to a fire on June 15, 2021. |
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SIGNATURES
Pursuant to the requirements of Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| KINROSS GOLD CORPORATION | |
| Signed: //Lucas Crosby// | |
| Vice President, Assistant General Counsel and Corporate Secretary |
June 22, 2021
Exhibit 99.1
FORM 51-102F3
MATERIAL CHANGE REPORT
Item 1 – Name and Address of Company
Kinross Gold Corporation (“Kinross” or the “Company”)
25 York Street, 17th Floor
Toronto, Ontario
M5J 2V5
Item 2 – Date of Material Change
June 16, 2021.
Item 3 – News Release
News releases with respect to the material change referred to in this report were issued by Kinross on June 16, 2021 and June 21, 2021 through the facilities of Globe Newswire and filed on the System for Electronic Document Analysis and Retrieval (SEDAR).
Item 4 – Summary of Material Change
On June 16, 2021, Kinross announced the temporary suspension of mill operations at its Tasiast project in Mauritania due to a fire on June 15, 2021. On June 21, 2021, Kinross released an update regarding the suspension of operations at Tasiast based on its initial assessment of the damage and expected impact to the Project.
Item 5 – Full Description of Material Change
On June 16, 2021, Kinross announced the temporary suspension of mill operations at its Tasiast project in Mauritania due to a fire on June 15, 2021.
On June 21, 2021, Kinross released an update regarding the suspension of operations at Tasiast based on its initial assessment of the damage and expected impact to the Project.
Kinross has confirmed there were no injuries as a result of the fire. Mining activities have resumed at Tasiast, including stripping to access higher grade ore. Construction work on the Tasiast 24k expansion project has also resumed and the Company is evaluating opportunities to optimize the project while milling operations are suspended.
Kinross is drawing on resources from across the Company to expedite actions to reduce the SAG mill’s downtime and to review all potential strategies to mitigate the expected production deferral. With mining activities continuing at Tasiast, Kinross expects to process stockpiles of higher grade ore when the mill restarts.
Tasiast has property damage and business interruption insurance and has commenced the claims process with its insurance carriers.
The Company does not anticipate the fire to affect Tasiast’s life of mine production and mineral reserve estimates, or have a material impact on the mine’s overall value. Preliminary estimates indicate a restart of the SAG mill by year-end, with expected restart costs of up to $50 million.
The Company has revised its 2021 production guidance to 2.1 million gold-equivalent ounces (+/- 5%), compared with 2.4 million gold-equivalent ounces (+/- 5%) disclosed on February 10, 2021.
Based on the initial estimate of the SAG mill’s downtime and with ongoing work on the 24k project, Tasiast’s throughput capacity is now expected to reach 21,000 tonnes per day during Q1 2022, compared with the previous estimate of year-end 2021. Throughput capacity is expected to increase to 24,000 tonnes per day by mid-2023, which is unchanged from the original 24k project estimate.
Item 6 – Reliance on subsection 7.1(2) of National Instrument 51-102
Not applicable.
Item 7 – Omitted Information
Not applicable.
Item 8 – Executive Officer
For further information, please contact Luke Crosby, Vice President, Assistant General Counsel and Corporate Secretary, at (647) 788-4478.
Item 9 – Date of Report
June 22, 2021.
Cautionary statement on forward-looking information
All statements, other than statements of historical fact, contained or incorporated by reference in this news release including, but not limited to, any information as to the future financial or operating performance of Kinross, constitute “forward-looking information” or “forward-looking statements” within the meaning of certain securities laws, including the provisions of the Securities Act (Ontario) and the provisions for “safe harbor” under the United States Private Securities Litigation Reform Act of 1995 and are based on expectations, estimates and projections as of the date of this material change report. Forward-looking statements include future events and opportunities including, without limitation, statements with respect to: the potential impact of the mill fire on operations at Tasiast; our estimates, expectations, forecasts and updated guidance for production at Tasiast, our revised production guidance across all of our assets, our expectations regarding all-in sustaining cost and capital expenditures, cost savings, project economics (including net present value and internal rates of return); the impact of the fire on the mineral reserve and mineral resource estimates at Tasiast, the timing and amount of estimated future production, capital expenditures, the costs and timing of the development of the 21k and 24k projects, and the proposed timing of re-commencing mining and processing activities. The words “anticipate”, “estimate”, “expect”, “opportunity”, and “option” or variations of or similar such words and phrases or statements that certain actions, events or results “may”, “could”, “will” or “would” occur, and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Kinross as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates, models and assumptions of Kinross referenced, contained or incorporated by reference in this material change report, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth herein and in our Annual Information Form dated March 30, 2021 and our full-year 2020 and first-quarter 2021 Management’s Discussion and Analysis as well as: (1) the estimated cost and projected timing of repairing and re-starting the SAG mill being consistent with the Company’s current expectations; (2) the Company’s estimates regarding the timing of completion of the 21k project; (3) the Company’s ability to successfully recover under its insurance policies being consistent with management’s expectations; (4) the impact of the incident on the Company’s current production guidance, mineral reserve and mineral resource estimates, and estimated overall value of Tasiast; (5) the estimated duration of the suspension of the SAG mill being consistent with Kinross’ current expectations; (6) the construction of the 24k project being unaffected by the suspension or re-start of the SAG mill; (7) the estimated impact on the timing of completion of the 21k project being consistent with the Company’s expectations; and (8) the viability of options to enhance shareholders returns and the Company’s ability to obtain the necessary consents and approvals related to such options. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. These uncertainties and contingencies can directly or indirectly affect, and could cause, Kinross’ actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Kinross. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. All of the forward-looking statements made in this material change report are qualified by these cautionary statements and those made in our other filings with the securities regulators of Canada and the United States including, but not limited to, the cautionary statements made in the "Risk Factors" section of our Annual Information Form dated March 30, 2021 and the "Risk Analysis" section of our full-year 2020 and first-quarter 2021 Management’s Discussion & Analysis. These factors are not intended to represent a complete list of the factors that could affect Kinross. Kinross disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward looking statements, except to the extent required by applicable law.
Other information
Where we say “we”, “us”, “our”, the “Company”, or “Kinross” in this material change report, we mean Kinross Gold Corporation and/or one or more or all of its subsidiaries, as may be applicable. The technical information about the Company’s mineral properties contained in this material change report has been prepared under the supervision of Mr. John Sims who is a “qualified person” within the meaning of National Instrument 43-101. Mr. Sims was an officer of Kinross until December 31, 2020. Mr. Sims remains the Company’s qualified person as an external consultant.