Kinross Steps Up Tasiast Mine Expansion - Analyst Blog
May 06 2013 - 7:40AM
Zacks
Kinross Gold Corporation (KGC) announced that
it is moving ahead with its plans to further expand its Tasiast
project in Mauritania with a full feasibility study (FS) for a
38,000 ton per day (tpd) mill. Kinross decided to give the green
signal for the expansion after the announcement of the pre
feasibility (PFS) study results.
The PFS was based on constructing a new 30,000 tpd mill at
Tasiast using heavy fuel oil as an energy source. The PFS found
that during the first five years of production, a 30,000 tpd
operation would yield average annual gold production of 830,000
ounces, at an initial capital cost of $2.7 billion, and an all-in
sustaining cost of $735 per ounce.
Kinross is also looking to deploy the existing 8,000 tpd mill at
Tasiast in addition to a new 30,000 tpd mill. These studies
concluded that a single new 38,000 tpd mill would be expected to
provide the optimum economics for an expanded project. Based on
these results, Kinross is proceeding to a full FS on an expanded
Tasiast operation with a 38,000 tpd mill.
The FS work process will begin immediately, and is expected to
complete in the first quarter of 2014. After the FS is complete,
Kinross will make a decision on whether to complete engineering and
proceed with construction. Kinross will base its decision on a
number of factors, including gold price assumptions and
projections, expected economic returns, and various technical and
other considerations.
Kinross, which is among the prominent gold miners along with
Barrick Gold Corporation (ABX), Newmont
Mining Corporation (NEM) and Goldcorp
Inc. (GG), is primarily involved in the exploration and
operation of gold mines and benefits from higher gold prices,
exploration projects and acquisitions.
Kinross currently carries a Zacks Rank #4 (Sell).
BARRICK GOLD CP (ABX): Free Stock Analysis Report
GOLDCORP INC (GG): Free Stock Analysis Report
KINROSS GOLD (KGC): Free Stock Analysis Report
NEWMONT MINING (NEM): Free Stock Analysis Report
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