| Is There an Upside on Costs for Kinross’s Russia Operations? | |
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Kinross is Looking Forward to New Mine Projects after 3Q15 (Continued from Prior Part) Lowest-cost mines
Kinross Gold’s (KGC) mines in Russia are among the lowest cost and the highest grade in its entire portfolio. The Kupol deposit is located in the Chukotka Autonomous Okrug of the Far East region of the Russian Federation. The Dvoinoye mine is located 100 kilometers from the Kupol mine. Dvoinoye is Kinross’s newest and lowest-cost gold and silver (SLV) mine. Commercial production at Dvoinoye began on October 1, 2013.
Continued strong performance
Kinross Gold’s Russia operations showed continued strong performance in 3Q15. Its gold production increased by 5% year-over-year (or YoY) to 190,000 ounces. This resulted partly from higher ore grades, which were 3% higher in 3Q15. This is according to the plan of mining higher grade material from the Dvoinoye mine.
The gold shipments were higher than gold production due to the timing of shipments. For the nine months ending September 30, however, the gold production decreased slightly YoY, mainly due to the less favorable gold equivalent ratio.
Lower unit costs
The production cost of sales declined by 5% YoY in 3Q15. The production cost of $469 per ounce was the lowest since Dvoinoye operations commenced in 2013. This improvement in costs is due to higher grades from Dvoinoye, decreased labor costs, favorable exchange rates, and lower reagent and diesel costs. Any further decline in the Russian ruble could lead to still lower costs going forward from this division.
However, this strong growth trend in production and reduction in costs is not an experience unique to Kinross in 3Q15. Kinross’s peers, such as Barrick Gold Corporation (ABX), Goldcorp (GG), Newmont Mining (NEM), and Agnico-Eagle Mines (AEM), also reported strong production and lower costs 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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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 11,0 milliards CA$ (8,1 milliards US$, 7,6 milliards €). La valeur de son action a atteint son plus bas niveau récent le 27 octobre 2000 à 1,43 CA$, et son plus haut niveau récent le 13 décembre 2002 à 9,99 CA$. Kinross Gold possède 1 246 749 952 actions en circulation. |