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Tuesday, February 10, 2015

Kinross decides not to expand Tasiast gold mine in Africa, (NYSE: KGC)

Kinross Gold Corp will not go ahead with a $1.6 billion expansion of its Tasiast mine in Africa's northwest because of the weak gold price, the Toronto-based miner said on Tuesday, as it also reported an unexpected fourth-quarter loss.Although Kinross was in a strong cash position and project financing talks had gone well, the company was concerned about cashflow during the 35 months of construction if the gold price fell further, said Kinross Chief Executive Paul Rollinson.Bullion, which was last at $1,233 an ounce, is down 36 percent from its peak of $1,920 an ounce in September 2011."We believe in the quality of the project. It's really about how much risk tolerance we are prepared to take on future cashflows looking out three years," Rollinson said in an interview.

Kinross Gold Corporation (Kinross) is a Canada-based gold mining company. Shares of KGC fell by 2.99% or $-0.1/share to $3.24. In the past year, the shares have traded as low as $2.00 and as high as $5.44. On average, 14663900 shares of KGC exchange hands on a given day and today's volume is recorded at 11848074.