Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: ForYourEyesOnly who wrote (35360)	6/14/1999 10:53:00 PM
From: Tomas	Respond to of 116764

GOLD: Kinross closes Macassa mine - Financial Times, Tuesday June 15 By Edward Alden in Toronto Kinross Gold, North America's fifth largest gold producer, said yesterday it would indefinitely suspend operations at its Macassa mine in Ontario because of the continued decline in gold prices. The decision, which followed a detailed review of the mine's economic viability, will remove about 80,000 ounces of annual gold production and result in 160 jobs being lost. Robert Buchan, chairman and chief executive, said the closure reflects the company's intention to retain balance sheet strength despite weak gold prices, which last week fell below $260 an ounce. Kinross was established in 1993 and made aggressive acquisitions to become a significant mid-level gold producer, with expected production of 1m ounces this year. Its strategy was to acquire high-cost mines and make them profitable by squeezing costs and extending the mine's life. But Kinross, which lost US$25m in 1998, tried to reduce costs quickly through its merger last year with Amax Gold, a debt-ridden US producer which had large, low-cost mines in Alaska and Russia. Total cash costs at the Macassa mine were cut from $370 an ounce in 1997 to $257 an ounce last year, but were still well above the company's overall total cash costs, expected to be $190 an ounce this year. Kinross acquired the Macassa mine from Barrick Gold in 1995 for $42.5m, but was forced to take a $24m after-tax write-down in 1997 after rock-bursts disrupted production at the mine, the deepest underground gold mine in North America. The company plans no further write-downs due to the closure.