Kinross Reports Rise In 1Q Adjusted Earnings
Net earnings came in at $106.1 million, or 9 cents per share, down from $134.6 million, or 11 cents, in the first quarter of 2017. However, excluding special items, adjusted net earnings of $125.2 million, or 10 cents, were well up from $23.4 million, or 2 cents, in the year-ago period.
BMO Capital Markets pointed out that the adjusted earnings were also well above the consensus analysts’ estimate of a nickel per share.
Gold-equivalent production slipped to 653,937 ounces from 671,956. However, the number of ounces sold rose to 668,217 from 645,946. Further, the average realized gold price increased to $1,330 per ounce from $1,220. Against this backdrop, revenue rose to $897.2 million from $796.1 million.
The all-in sustaining cost fell to $846 per gold-equivalent ounce sold from $953. All-in sustaining costs per gold ounce sold on a by-product basis were $835, down from $945.
The company left its outlook guidance unchanged, projecting production of 2.5 million gold-equivalent ounces for 2018.
“We generated strong cash flow and ended the quarter with approximately $1 billion of cash on the balance sheet, relatively unchanged from year-end 2017,” said J. Paul Rollinson, president and chief executive officer.
He also outlined progress on the company’s development projects.
“The Tasiast Phase One expansion is now near completion, on budget and on schedule to reach its 12,000 [tones-per-day] throughput capacity by the end of June,” the CEO said. “The company is assessing the government of Mauritania’s request to enter into mutually beneficial discussions, respecting all of Kinross’ activities in Mauritania, with a view to improving economic benefits to the country, including the potential impact on the Phase Two expansion.
“Our Nevada projects at Round Mountain and Bald Mountain are continuing to proceed on schedule. In June, we expect to announce the feasibility study results for the Fort Knox Gilmore project, an opportunity to potentially extend mine life at one of our best-performing operations. In Chile, we expect to commence a feasibility study for the La Coipa restart project at mid-year. Finally, we also expect to begin mining high grade ore at the Moroshka satellite deposit near Kupol in the second half of 2018.”