Boston, MA 10/10/2014 (wallstreetpr) – Kinross Gold Corporation (USA) (NYSE:KGC) drove down the hill on Thursday as its stock price hit $3.04, representing a 5.88% decline over the day. The negativity in the stock prices resulted from the company’s announcement of suspension of operations at Round Mountain mine in Nye Country, Ny. The decision comes following a breakout of fire at the mine on October 1, 2014. There has been no report of injury or damage though at the mine.
Evaluating Downtime Length
The Round Mountain mine is operated by Kinross Gold Corporation (USA) (NYSE:KGC) in a fifty-fifty join partnership with Barrick Gold Corporation (USA)(NYSE:ABX). The latter also tumbled by over 3% on the day. The company said that it is assessing the exact time till which the mine operations will remain suspended. It added that the update on the same shall be provided during the company’s third-quarter results call, scheduled to take place on November 5, 2014.
Production Guidance Maintained
Kinross Gold Corporation (USA) (NYSE:KGC) updated that approximately 75% of Round Mountain’s mine output continues following the fire break incident. As of June 30, 2014, the total production at the mine stood at 87,329 gold equivalent ounces. Despite the unexpected downtime at the mine, the company is not anticipating the event to have an adverse impact on the company’s production guidance for the year 2014 for America region. It is unfortunate that the shutdown of the operations for the company has come around a time when the gold market is weak and gold mining companies are striving hard to remain afloat in such times.
Among other gold miners, Kinross Gold Corporation (USA) (NYSE:KGC) holds a record of an impressive turnaround as it was able to slash down its losses in 2013 and paid much of the debt. Since, the production halt related to just 25% of the mine’s capacity, therefore, it is to be seen as how the company copes with it.