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Reuters reported that according to Paul Rollinson, CEO of Kinross Gold Corp. (TSX:K,NYSE:KGC), the company likely will not go ahead with the expansion of its Mauritania-based Tasiast gold mine if prices for the metal do not improve.
Reuters reported that according to Paul Rollinson, CEO of Kinross Gold Corp. (TSX:K,NYSE:KGC), the company likely will not go ahead with the expansion of its Mauritania-based Tasiast gold mine if prices for the metal do not improve.
As quoted in the market news:
Kinross, the world’s fifth biggest gold producer by output, is due to make a final decision on the $1.6-billion expansion next year, possibly by the end of the first quarter.
The expansion is the Toronto-based miner’s biggest growth project, and without it analysts are concerned about Kinross’ growth prospects.
‘If today’s gold price were to persist I think we would find it challenging to go ahead because our overriding principle is balance sheet strength,’ Rollinson said in an interview.
‘We have repeatedly said that we would never let a project in any way become too big that it might affect the balance sheet. … Gold price matters and we are watching it closely,’ he said after Kinross released quarterly results that beat market expectations.