Kinross Gold Corporation
) has announced that its Dvoinoye gold mine in Russia's Chukotka
Region has started commercial production. Kinross built the
project on time and within budget.
The mine is located 100 kilometers north of Kinross' Kupol
mine. Dvoinoye ore will be processed at the Kupol mill, which has
undertaken expansion from 3,500 tons per day (tpd) to 4,500 tpd
for this purpose. The first ore from development activities at
Dvoinoye was delivered to Kupol in the second quarter of 2013 and
commercial production began in early October.
Production from the Dvoinoye mine is expected to be between
235,000 and 300,000 gold equivalent ounces annually during its
first three years of production, which will be incremental to
gold produced from the Kupol underground mine. Total
production for this year is expected to be 25,000 gold equivalent
During peak production, Dvoinoye is expected to mine 1,000 tpd
of ore a day, which will be transported to Kupol via an
all-season road. Kinross expects cost of sales for the combined
Russian operations between 2014 and 2016 to be in the range of
$545-$600 per gold equivalent ounce.
Dvoinoye is the fourth mine that Kinross has operated in
Russia. The low-cost mine reflects the company's strong focus on
maximizing margins and cash flow at its existing operations as
well as growth projects.
The commencement of the mine marks an important step in the
economic and social development of Chukotka. Kinross plans to
disclose guidance for the mine's 2014 production, cost of sales
and all-in sustaining costs for its combined Russian operations
and other regions in early 2014.
Kinross currently carries a Zacks Rank #3 (Hold).
Other companies in the mining industry with a favorable Zacks
Pretium Resources Inc.
Alamos Gold Inc.
). All of them carry a Zacks Rank #2 (Buy).
ALAMOS GOLD INC (AGI): Free Stock Analysis
FRANCO NV CP (FNV): Free Stock Analysis
KINROSS GOLD (KGC): Free Stock Analysis
PRETIUM RES INC (PVG): Free Stock Analysis
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