Kinross (KGC) Resumes Mining at Tasiast Post Fire, Cuts FY21 View
Kinross Gold Corporation KGC recently issued an update regarding the temporary suspension of milling operations at its Tasiast mine due to a fire that occurred on Jun 15.
Kinross stated that there were no injuries due to the fire. At Tasiast, mining activities have resumed, including stripping to access higher grade ore. The construction work on the Tasiast 24k expansion project has also restarted and the company is assessing opportunities to optimize the project, while keeping milling operations on hold.
Kinross is extracting resources to accelerate actions to reduce the SAG mill’s downtime and to review all potential strategies to stop the expected production deferral. Tasiast has insurance, which covers property damage as well as business interruption and commenced the claims process with its insurance carriers.
Kinross also reduced its 2021 production guidance to 2.1 million gold equivalent ounces, compared with 2.4 million gold equivalent ounces it projected earlier on Feb 10, 2021. Kinross’ annual production outlook for 2022 and 2023 is pegged at 2.7 million and 2.9 million gold equivalent ounces, respectively.
Tasiast’s throughput capacity is now projected to reach 21,000 tons per day during the first quarter of 2022 based on the initial estimate of the mill’s downtime and with ongoing work on the 24k project. Throughput capacity is anticipated to increase to 24,000 tons per day by mid-2023, which is unchanged from the original 24k project estimate.
The company is in a strong financial position and committed toward evaluating options to further boost shareholders’ returns, despite the mishap at Tasiast.
Shares of Kinross have declined 4.9 % in the past year compared with 8.6% fall of the industry.
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Zacks Rank & Key Picks
Kinross currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Nucor Corporation NUE, Olin Corporation OLN and Cabot Corporation CBT.
Nucor has a projected earnings growth rate of around 344.9% for the current year. The company’s shares have surged 131.7% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Olin has an expected earnings growth rate of around 506.7% for the current year. The company’s shares have skyrocketed 307.7% in the past year. It currently sports a Zacks Rank #1.
Cabot has an expected earnings growth rate of around 137.5% for the current fiscal. The company’s shares have surged 57.4% in the past year. It currently carries a Zacks Rank #1.
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