| Do Its Recent Acquisitions Have an Exploration Upside for Kinross? | |
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Is the Asset Acquisition from Barrick a Sweet Deal for Kinross? (Continued from Prior Part) Potential upside
The potential upside from Bald Mountain and Round Mountain informs the acquisition of these assets by Kinross Gold (KGC). During its November 12, 2015, management call, Kinross noted that there were multiple sources of upside at Bald Mountain, which covers 373 square miles, making it one of the largest mine sites in the US.
Bald Mountain
- Bald Mountain is a large, underexplored area land package that is located on the southern extension of the highly prospective Carlin trend.
- Kinross expects to convert 20% of the current estimated mineral resources to mineral reserves upon receipt of permits and modest infill drilling at Vantage in the South Zone. Also, based on historical conversion rates, it is assuming at least another 10% that would be converted within the remaining 100% areas, including the North Zone for a combined total of 30%.
- It also presents a good opportunity to leverage Barrick’s geologic expertise through both companies’ exploration partnership.
Round Mountain
- Kinross believes there is a meaningful upside to Round Mountain, which could lead to increased production and lower costs. The Process Solution Management (or PSM) program has been a success so far, and Kinross expects it to provide an upside going forward.
- There is an additional opportunity in the form of Phase W. Phase W is a large zone of known mineralization that exists at depth and to the west of the main Round Mountain pit. Kinross intends to start a scoping study on its potential expansion in December 2015.
- This potential increase is not included in Kinross’s mineral reserve and resource statement.
During its latest quarterly results, Kinross’s peer Newmont Mining (NEM) also reported that its Tanami Expansion could provide the company with a near-term production growth option. Meanwhile, Yamana Gold (AUY) is implementing exploration at various mines, which resulted in higher grade asset extensions in the past.
To get exposure to gold prices, investors can also consider gold-backed ETFs such as the SPDR Gold Shares ETF (GLD) and the iShares Gold Trust ETF (IAU).
Investors might be interested in knowing how Kinross’s financial position has changed after this acquisition. We’ll explore this topic in detail in the final part of our series.
Continue to Next Part Browse this series on Market Realist:
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Kinross Gold Corporation
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PRODUCTEUR |
CODE : K.TO |
ISIN : CA4969024047 |
CUSIP : 496902404 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Kinross Gold est une société de production minière d'or basée au Canada. Kinross Gold est productrice d'or, d'argent en USA, au Bresil, au Canada, au Chili, au Ghana, en Mauritanie et in Russia, en développement de projets d'argent, de cuivre et d'or au Chili, et détient divers projets d'exploration au Canada, au Chili et in Russia. Ses principaux projets en production sont ROUND MOUNTAIN en USA, CRIXÁS, MORRO DO OURO et PARACATU au Bresil, REFUGIO MINE (VERDE AND PANCHO), FORT KNOX, MARICUNGA et LA COIPA au Chili, PORCUPINE et MUSSELWHITE au Canada, CHIRANO au Ghana, TASIAST en Mauritanie et KUPOL in Russia, ses principaux projets en développement sont KETTLE RIVER, GOLD HILL et CERRO CASALE au Chili et ses principaux projets en exploration sont AHAFO NORTH, BIBIANI NORTH, BOLE, BOLE - BOLGATANGA, AKYEM, RUSSIAN MOUNTAIN, HORN MOUNTAIN, GIL, ENCHI et GOLDBANKS - KINROSS au Ghana, FRUTA DEL NORTE en Equateur, HAMMOND REEF au Canada, KUBAKA MINE - BIRKACHAN in Russia et LOBO-MARTE au Chili. Kinross Gold est cotée au Canada, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 11,5 milliards CA$ (8,4 milliards US$, 7,8 milliards €). La valeur de son action a atteint son plus bas niveau récent le 27 octobre 2000 à 1,43 CA$, et son plus haut niveau récent le 13 décembre 2002 à 9,99 CA$. Kinross Gold possède 1 246 749 952 actions en circulation. |