Kinross Gold to suspend Russia operations, after saying unaffected by sanctions (NYSE:KGC)

Kinross Gold to suspend Russia operations, after saying unaffected by sanctions (NYSE:KGC)

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Kinross Gold (NYSE:KGC) says it is suspending all activities at its Russia operations, including the Kupol gold mine in Siberia and the Udinsk development project north of Mongolia.

The Kupol mine, which employs more than 2,000 people, produced 481.1K gold equiv. oz. in FY 2021, 23% of the company’s total output; overall, Kinross has said it expected its Russian operations to account for 13% of total production in 2022.

The Udinsk development project, purchased less than three years ago, was expected to produce ~2M oz of gold over a seven-year mine life, at an extremely low all-in sustaining cost of $580/oz with production forecast to begin late in 2025.

Noting that Russian exposure has held down Kinross’ stock price performance, RBC analyst Josh Wolfson said earlier this week that Russia’s war with Ukraine is “a key overhang for shares and at risk of impacting prior outlined capital allocation, but presenting low fundamental risks to Kinross’ business and appropriately reflected in valuation today.”

Just a week ago, Kinross said its Russian operations were unaffected by sanctions imposed on the country.

Originally Posted on: https://seekingalpha.com/news/3808786-kinross-gold-to-suspend-russia-operations-after-saying-unaffected-by-sanctions?source=feed_tag_commodities
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