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Kinross Declares End of 3-Week Strike at Tasiast Mine

Kinross Gold Corporation KGC said that the strike at its Tasiast mine in Mauritania has ended. The strike commenced on May 24, 2016 and the striking employees started to return to work on June 11.

Negotiations with the staff delegates on a new collective labor deal are expected to restart within 10 days. Employees hold the right to strike during negotiations, subject to Mauritanian labor laws.

The strike is not expected to impact Kinross's annual regional guidance and did not affect the development of the Phase One expansion at the mine.

Kinross, during its first-quarter 2016 earnings release, stated that the Tasiast Phase One expansion is underway. The development will nearly double production levels and halve the cost of sales.

The company reported a net loss of $13.9 million for the first quarter of 2016, much wider than a net loss of $6.7 million in the year-ago quarter. Loss widened particularly due to lower gold prices. The figure includes one-time items including foreign exchange losses of $2.8 million, and acquisition-related costs of $7.6 million.

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Adjusted earnings (excluding one-time items) were $1.4 million or a breakeven, compared with adjusted earnings of $15.3 million or a penny per share recorded in the year-ago quarter. Analysts polled by Zacks were expecting a loss of a penny per share on an average.

Revenues of $782.6 million were almost in line with the year-ago quarter as higher gold sales were partly offset by lower average realized gold prices. Revenues, however, missed the Zacks Consensus Estimate of $796 million.

Kinross currently carries a Zacks Rank #3 (Hold).

Some better-ranked mining companies are B2Gold Corp. BTG, Golden Star Resources, Ltd. GSS and Pretium Resources Inc. PVG, all sporting a Zacks Rank #1 (Strong Buy).

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PRETIUM RES INC (PVG): Free Stock Analysis Report
 
KINROSS GOLD (KGC): Free Stock Analysis Report
 
GOLDEN STAR RES (GSS): Free Stock Analysis Report
 
B2GOLD CORP (BTG): Free Stock Analysis Report
 
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