Boston, MA 10/30/2013 (wallstreetpr) – Kinross Gold Corporation (USA)(NYSE:KGC) engages in gold exploration, extraction and processing. It also has interest in silver. The company announced the commencement of commercial production of gold at its Dvoinoye gold mine in Russia early October. The project which was completed on time and within budget is the fourth mining project that the company is running in Russia. It is also considered a low-cost project with potential of maximizing the company’s earnings in the coming quarters.
The first ore from the Dvoinoye gold mine was delivered to the Kupol processing plant in Q2.13, after which commercial production was officially declared early October. The processing capacity at the Kupol mull has been earlier expanded to 4,500 tpd from 3,500 tpd to accommodate increased production due to the commission of the Dvoinoye project. The annual production capacity of the new mine is expected to be in the range of 235K and 300K gold equivalent ounces in its first three years of production. The ore from Dvoinoye will be transported on all-season road to Kupol mill. The company expects its cost per gold equivalent ounce from the combined Russian operations to be $545 – $600 between 2014 and 2016. The miner also expects peak production at Dvoinoye to hit 1K tpd.
Dvoinoye mine which is deemed as a low cost operation, one that was completed within budget and on time, validates Kinross’ focus in margin maximization, freeing cash flow and scaling projects growth in pursuit of improved earnings. The guidance on the Russian combined projects, cost of sales and all related activities is expected in early 2014. Basically, the company expects to grow its return on investment for its shareholders from these promising gold mining operations in Russia.
Kinross traded southward on Tuesday, shedding 2.46% in its share value to settle at $5.15. It has $5.89 billion in market cap.