NEW YORK (TheStreet) -- Kinross Gold Corp. (KGC) - Get Report shares are increasing 1.08% to $3.40 on Wednesday after the company said earlier today that it will spend around $920 million to expand its Tasiast mine located in Mauritania, a country in the Maghreb region of western North Africa.
The first phase of the expansion, which will cost around $300 million, is expected to increase the mill throughput capacity to 12,000 tonnes a day from 8,000 tonnes a day. The second phase, costing $620 million, will grow combined mill throughput to around 30,000 tonnes a day, the company said.
"This phased approach allows Kinross to transform Tasiast into a lower cost, cash flow positive operation in the near term while preserving the operation's significant growth potential," CEO J. Paul Rollinson stated.
The company also noted that the total capital spending of about $920 million is below its previous 2014 estimate of $1.6 billion, since the throughput capacity has been lowered by 21%.
Essentially, the mine will reach full production by the end of the first quarter of 2018, and swell annual production by around 87%.
Meanwhile, gold for April delivery is down 0.16% to $1,235.50 per ounce on the COMEX.
Separately, TheStreet Ratings currently has a "Sell" rating on the stock with a letter grade of D.
This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The area that we feel has been the company's primary weakness has been its disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles' author.
You can view the full analysis from the report here: KGC