Kinross Maintains Guidances, Buys Russian Project For $283 Million
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Kinross produced 1.2 million ounces for the six months ended in 2019, nearly the same as the year before, the company announced today.
In the Americas, production was up at Paracatu, Round Mountain, while Bald Mountain and Fort Knox saw decreases due to weather-related challenges.
Adjusted net earnings were 11 cents compared to nine cents in 2018.
Kinross said it is on track to meet its 2019 production guidance of 2.5 million gold equivalent ounces, plus or minus 5%. Its all-in sustaining cost is set at $995 gold equivalent ounces, plus or minus 5%.
The company's capital expenditure is set at $1.05 billion.
Kinross announced today it is spending $283 million for N-Mining, an open pit, heap leach development project in a deal comprised of cash and shares. N-Mining also gets a 1.5% net smelter return out of the deal.
Kinross estimates that the project holds approximately 3.9 million gold ounces in indicated mineral resources and 80,000 gold ounces in estimated inferred mineral resources for the project.
Kinross estimates Chulbatkan has a mine life of six years; total life of mine production of 1.8 million recovered ounces; a strip ratio of 1.5; all-in sustaining costs in the $550 per ounce range, and an initial project capital expenditures of $500 million.
President and CEO, J. Paul Rollinson, lauded the deal noting that the company already has operations in Russia.
"This acquisition is an excellent fit for Kinross as it enables us to leverage our expertise as a world-class cold climate heap leach operator," said Rollinson in a news release."With a large estimated mineral resource, Chulbatkan has the potential to be a significant low-cost, low-strip, high-return operation that will strengthen our longer-term production and cash-flow profile. It is an excellent complement to our existing operations at Kupol and Dvoinoye, both of which remain prospective in their own right."