Kinross Gold says it will lay off 75 workers at the Lupin gold mine, 80 km south of the Arctic Circle in Nunavut.
The miner posted a US$13.3-million loss in the recent quarter and says the layoffs would save US$8-10 million annually.
In the immediate term, Kinross will reduce costs by changing operating schedules and shift rotations and by selling aircraft and hangars near the mine.
“The company is moving quickly to implement these changes following the disappointing first quarter,” Kinross states.
Costs at Lupin, which was acquired in the 3-way merger with TVX Gold and Echo Bay Mines, amounted to US$9.2 million, or US$2.6 million higher than expected.
Revenue for the first quarter was actually 74% higher than a year earlier, at US$120.1 million; however, expenses also rose, to US$128.6 million from US$75 million.
The quarterly loss is equivalent to US5 per share.
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