Gold Earnings Look Disappointing as Production Costs Rise — Mining Minutes — Kitco News

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On this week’s edition of “Mining Minutes,” Kitco’s Alex Letourneau presents first quarter earnings and production results of Kinross Gold Corp, IAMGOLD Corp and Coeur d’Alene. Kinross is the first gold major to show a profit with its gold equivalent production on the rise as well. CEO Paul Rollinson confirmed that $2.7 billion initial capital was used to add 38,000 ton per day mill to the Tasiast mine. IAMGOLD said they will cut operational costs by $43 million and exploration by $40 million as net earnings fell due to lower revenues and higher sales costs. Profits are lower than expected for Coeur d’Alene whose silver production plunged by 22% and sales dropped by 16% in the quarter. Finally, Alex reports on the recent 1% royalty tax imposed on Quebec miners for the first $80 million of ore extract, rising to 4% after that. Quebec Mining Association CEO, Josée Méthot views this is a deterrent for bringing in investments seeing as this is the second tax hike since 2010, and many share her view. Kitco News, May 9, 2013.

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