VANCOUVER (miningweekly.com) – Canadian miner Kinross Gold said on Monday that a fresh round of US sanctions targeting Russian State officials or connected businesses that was announced on Friday does not affect its Russian operations.
The US announced on Friday new sanctions against Russian oligarchs with ties to President Vladimir Putin, along with 12 companies they own or control and 17 senior Russian government officials and the State-owned Russian weapons trading company, Rosoboronexport, which has long-standing ties to Syria and its subsidiary, Russian Financial Corporation Bank.
Kinross, which has a 20-year track record in Russia, operates two high-grade underground mines at Kupol and Dvoinoye, which are serviced by a single mill.
TSX- and NYSE-listed Kinross advised that it will continue to closely monitor sanction legislation in Canada, the US and the European Union so that it and its subsidiaries remain in compliance. To this end, it has proactively developed and diversified its procurement and logistics structures in the country, Kinross said in a statement.
Of the 2.5-million gold equivalent ounces Kinross expects to produce in 2018, its two Russian operations are forecast to account for about 20% of output, or 490 000 oz of gold equivalent, at cost of sales of about $620/oz.
Kinross’ TSX-listed equity was hard-hit by a Russia sanctions-related selloff following the Friday announcement, losing nearly 10% on Monday to an intraday low of C$4.55 apiece.