15 Jan 2010 13:43

Kinross increases output in 2009 by 230%

MOSCOW. Jan 15 (Interfax) - Canada's Kinross Gold produced 690,000 ounces of output in gold equivalent at the Kupol deposit in Chukotka, the company said in a statement.

Kinross owns 75% in a project for the development of Kupol. State Unitary Enterprise Chukotsnab holds the remaining 25% in the project. Therefore, total production at Kupol came to around 920,000 ounces in gold equivalent. Kinross did not provide information on direct gold output.

Kinross commenced mining at Kupol in the summer of 2008. Total output in 2008 came to 211,925 ounces in gold equivalent. Therefore, production at the field went up by 230% in 2009 in comparison with 2008.

For 2010, the company forecasts output at the field at 675,000-725,000 ounces in gold equivalent. Therefore, the company could increase production there by 5% in an optimistic outcome.

Other major gold producers in Russia have not published production results. Since Kinross does not provide direct gold production results (without silver and other metals its calculations for gold) the company's published results do not make it possible to rank the Canadian company among Russia's gold producers. The company's main competitor in production, Petropavlovsk (formerly Peter Hambro), forecasts production at 470,000 ounces of gold for the year.

The leading producer, Polyus Gold, plans to produce 1.3 million ounces of gold in 2009 (around 41 tonnes).

Kinross, which is developing 11 fields in different countries, had 2.23 million ounces in production in gold equivalent. For example, 430,000 ounces were produced in Brazil, Chili - 465,000 ounces and the U.S. - 650,000 ounces. For 2010, Kinross forecast total output at around 2.2 million ounces.

The average price for one ounce of production in gold equivalent in 2009 came to $435-$450.In 2010, Kinross expects an increase in the average sale price coming to $460-$490 per ounce.