Kinross Starting Feasibility Study on Tasiast Expansion (revised) - Analyst Blog
May 08 2013 - 7:54AM
Zacks
Kinross Gold Corporation (KGC) recently said
that it is moving ahead with a full feasibility study (FS) for a
possible expansion of its Tasiast mine in Mauritania with a 38,000
ton per day (tpd) mill. The decision was based on the encouraging
pre-feasibility (PFS) study results for the expansion project.
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
capacity 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 with 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).
We have revised this article to correct a mistake. The
previous version, published yesterday, should not be relied
upon.
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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