Boston, MA 10/29/2013 (wallstreetpr) – Canadian precious metal miner Kinross Gold Corporation (NYSE: KGC) will see an increase in production as operations at its Russian mine – Dvoinoye – have reportedly commenced commercial output.
From this mine alone, Kinross is expected to mine around 300000 ounces of gold for three initial years. The processing of the ores mined here will be done at a localized mill; located 100 kilometers from Dvinoye helping the company keep its operational costs at hand. At current gold prices, this would result in revenue increase of $400 million.
Between March and October 2013, Kinross shares have seen extensive insider trading, with nearly97, 794 shares being purchased, of which, nearly 4,102 shares have been sold by insiders. In the month of October: 24,267 shares have been purchased by insiders.
The gold mining industry has seen a capitalization loss of nearly 40% in the past 10 months. Therefore, the focus for most companies is to stream line operations and build robust environment, considering most stocks are trading at low price point structures.
Along with Kinross Gold other companies such as Agnico-Eagle Mines and Eldorado Gold are expected to increase operations but any fluctuation in gold prices is likely to trigger a domino effect in these shares.
Kinross is on a major operations restructuring phase as well – and will see over 300 jobs being cut-down in Mauritania. Jobs in its Spanish office too will be pruned to keep pace with increasing decline in gold prices.
Ever since Brazil introduced mining law reforms in June this year, mining companies involved in production of gold, iron ore, copper and various other metals, the royalty rate has nearly doubled. Besides, the mining codes for starting new mines too have become more stringent. Earlier this year, Kinross pulled out of $1.2 billion project in Ecuador over taxation percentages.