Kinross Gold Corporation (USA)(NYSE:KGC) reduced its capital-spending guidance for 2015 and said it expects production to come at the high end of provided guidance. The company also reduced its cash cost projection and announced it continues to assess different options to lower overhead costs.
The update
Kinross Gold, which has been identifying ways to cut costs amid declining metals prices, reduced its capital spending forecast for year to $650 million from previous guidance of $725 million. The CEO Paul Rollinson, said that every region has improved and is expected to produce at the higher end of previous guidance range, and below initial cost guidance range. The overhead expenses are expected to come below its projection of $205 million.
The changes
Kinross Gold is looking for more ways to reduce costs in coming period. It revised its production guidance to 2.5 to 2.6 million gold equivalent ounces this year, up from previous projection of 2.4 to 2.6 million gold equivalent ounces. Also, the company lowered its all-in sustaining cost projection to come in between $975 per ounce and $1,025 per ounce from initial forecast of between $1,000 and $1,100. The cost of sales is expected to be in a range of $690-$730 per ounce, lower from its previous projection of $720-$780 per ounce.
The performance
Kinross Gold Corporation (USA)(NYSE:KGC) recorded a dismal second quarter due to lower gold sales, temporary suspension of activities at a mine in Chile and weaker gold prices. During the announcement of the second quarter numbers, the CEO said that they were considering cutting jobs at Tasiast gold mine in an attempt to lower costs. Last some years have been extremely tough for gold miners firms and their shareholders. After touching the mark of above $1,900 per ounce in September 2011, the yellow metal has been on a horrible slide and the stocks of gold miners have followed the trend.
