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Kinross is Looking Forward to New Mine Projects after 3Q15 (Continued from Prior Part) Kinross’s production
In the uncertain gold price (GLD) (IAU) environment, gold miners are trying to increase their production levels at minimal additional costs through productivity and operational enhancements. Kinross Gold (KGC) is also trying to achieve higher production every quarter. It produced 681,000 ounces of gold in 3Q15.
Although Kinross Gold’s (KGC) 3Q15 production was slightly higher than market expectations, it declined by 2% as compared to 3Q14 due to lower production at several of its mines. While production at the Maricunga mine was impacted by lower ore placed on heap leach pads, production at Chirano and Kettle River–Buckhorn also declined due to lower grades. This lower production was offset to an extent by the increase in production at the Kupol–Dvoinoye, Round Mountain, and Fort Knox mines.
Maintains full-year guidance
Kinross Gold maintained its annual guidance of 2.5 million–2.6 million ounces of gold production. Kinross’ midpoint of production guidance for 2015 implies a production level of 579,000 ounces in 4Q15. This is quite conservative given the company’s production for the first nine months of the year.
Kinross temporarily suspended the Paracatu’s Santo Antonio tailings reprocessing project due to water scarcity in south-central Brazil. Management estimated that the suspension would reduce production by a minimum of 22,000 ounces in 2015. During the call, management said that drought-like conditions in Paracatu could lead to a production loss of as much as 83,000 ounces if it doesn’t rain within the next week or two and if the curtailment continues through the end of the year.
Strong production by peers
Kinross’s peers, including Barrick Gold Corporation (ABX), Goldcorp (GG), Newmont Mining (NEM), and Agnico-Eagle Mines (AEM), also reported strong production growth in their latest quarterly reports. Newmont Mining (NEM) makes up 6.1% of the holdings of the Market Vectors Gold Miners ETF (GDX).
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Kinross Gold Corporation
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PRODUCER |
CODE : K.TO |
ISIN : CA4969024047 |
CUSIP : 496902404 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Kinross Gold is a gold producing company based in Canada. Kinross Gold produces gold, silver in Brazil, in Canada, in Chile, in Ghana, in Mauritania, in Russia and in USA, develops copper, gold and silver in Chile, and holds various exploration projects in Chile, in Ecuador and in Russia. Its main assets in production are ROUND MOUNTAIN in USA, MORRO DO OURO, CRIXÁS and PARACATU in Brazil, REFUGIO MINE (VERDE AND PANCHO), FORT KNOX, MARICUNGA and LA COIPA in Chile, PORCUPINE and MUSSELWHITE in Canada, CHIRANO in Ghana, TASIAST in Mauritania and KUPOL in Russia, its main assets in development are KETTLE RIVER, GOLD HILL and CERRO CASALE in Chile and its main exploration properties are RUSSIAN MOUNTAIN, HORN MOUNTAIN and KUBAKA MINE - BIRKACHAN in Russia, AHAFO NORTH, BIBIANI NORTH, BOLE, BOLE - BOLGATANGA, AKYEM, GIL, ENCHI and GOLDBANKS - KINROSS in Ghana, HAMMOND REEF in Canada, FRUTA DEL NORTE in Ecuador and LOBO-MARTE in Chile. Kinross Gold is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 11.2 billions as of today (US$ 8.1 billions, € 7.6 billions). Its stock quote reached its lowest recent point on October 27, 2000 at CA$ 1.43, and its highest recent level on December 13, 2002 at CA$ 9.99. Kinross Gold has 1 246 749 952 shares outstanding. |