Sept 18 (Reuters) – Kinross Gold Corp, as expected, gave the go-ahead on Monday to spend more than $1 billion to expand two of its gold mines, including its Tasiast mine in West Africa, but its shares fell as investors took profits after a stellar run this year.
Kinross okayed a second-phase, $590 million expansion at its Tasiast operation in Mauritania, which will help the company, the world’s fifth-biggest gold miner by output, maintain production levels as some of its other shorter-life mines show declines.
The Toronto-based miner also said it will spend $445 million to add five years of production to its Round Mountain mine in Nevada, currently scheduled to end in 2022.
“These are steps in the right direction, relieving some of the pressure to make further acquisitions to maintain its current production profile,” Macquarie analyst Michael Siperco said in an interview.
He said the nearly 6 percent drop in Kinross’ stock was likely a “sell the news” scenario as the market had expected the projects to be approved and after the miner’s stock has sharply outperformed its peers this year.