Mining News
Kinross Gold Reverses To Loss In Third Quarter
(Kitco News) - Kinross Gold Corp. (TSX: K, NYSE: KGC) reversed to a loss in the third quarter as production and gold prices fell, the company reported late Wednesday.
Excluding special items, the company listed an adjusted net loss of $48.4 million, or 4 cents per share, a turnaround from adjusted net earnings of $84.1 million, or 7 cents, in the same period a year ago.
The net loss was $104.4 million, or 8 cents per share, compared with earnings of $60.1 million, or 5 cents, in the year-ago period. Kinross said the decrease was mainly a result of lower margins and an increase in income-tax expense.
Gold-equivalent production of 586,260 ounces was down from 653,993 a year ago. The average realized price of gold fell to $1,209 per ounce from $1,283. Against this backdrop, revenue fell to $753.9 million from $828 a year ago.
Meanwhile, costs rose. The company listed a margin of $432 per gold-equivalent ounce in the July-September period, down from $621 a year ago.
“Our Nevada, Brazil, Ghana and Russia operations performed well during the quarter and we remain on track to meet our company-wide production and cost guidance for the year,” said J. Paul Rollinson, president and chief executive officer. “Commissioning of the new SAG mill for the Tasiast Phase One expansion has been completed. Performance at Tasiast is expected to further improve in the fourth quarter, as the mine delivered record monthly production in October and began mining higher-grade ore.”
The company provided updates on a number of other projects, reporting that the Round Mountain Phase Phase W project is schedule and on budget, with initial ore expected in mid-2019. Fort Knox Gilmore is also on schedule and on budget, with initial production expected in early 2020. The Bald Mountain complex is also proceeding according to plan, with the company last month acquiring the remaining 50% interest in the Bald Mountain exploration joint venture from Barrick Gold Corp. for consideration that included $15.5 million in cash and a 1.25% net smelter royalty, giving Kinross 100% ownership of the entire Bald Mountain land package.
Kinross said it expects to produce 2.5 million gold-equivalent ounces at all-in sustaining costs of $975 in 2018.
The company reported that John Oliver will retire as chairman of the board at year-end. Catherine McLeod-Seltzer, a board member since 2005, has been appointed the new independent chair, effective Jan. 1.
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