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Investors Await These Updates from Kinross Gold

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Conversion to reserves

Kinross Gold (KGC) acquired 100% of the Bald Mountain gold mine and the remaining 50% of the Round Mountain gold mine from Barrick Gold (ABX) in November 2015. It expects to convert a substantial part of Bald Mountain’s 4 million ounces of resources to reserves as it continues with infill drilling.

Kinross Gold’s management sounded confident during the company’s 3Q16 earnings call about realizing Bald Mountain’s full potential. Management is focusing on doubling the mineral reserve estimates from this mine by the end of 1Q17. Investors look forward to an update on this.

This project will help Kinross diversify its geopolitical risk. Peers (RING) Goldcorp (GG), Yamana Gold (AUY), and Agnico Eagle Mines (AEM) face less geopolitical risk than Kinross.

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Updates for 2017

During its 4Q16 results, Kinross will provide its fiscal 2017 guidance. In addition to production and cost guidance, this will include reserves and exploration updates.

Tasiast update

The Tasiast expansion is one of Kinross Gold’s most important projects. Not only will it increase the company’s production profile significantly, but it will also contribute to lowering its cost structure. Management maintained during the earnings call that the phase one expansion at Tasiast is progressing well. It expects to reach full production by 2Q18.

Investors should recall that Kinross decided to do the Tasiast expansion in two phases to reduce risk. The feasibility study of the second phase is currently underway. It is expected to increase throughput to 30,000 tons per day, which would entail a further investment of $620 million. The company is expected to make the decision on the second phase by the end of 2017.

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