Kinross Gold reports production decline in second quarter, declares $0.03 per share dividend
(Kitco News) - Kinross Gold (TSX: K, NYSE: KGC) announced today that the company produced 538,091 gold equivalent ounces in Q2 2021, a 6% decrease compared with 571,978 ounces in Q2 2020, mainly due to lower production at Tasiast, Bald Mountain and Kupol, partially offset by higher production at Paracatu and Fort Knox.
According to the company’s statement, its adjusted operating cash flow was $363.8 million in Q2 2021, which decreased compared with $416.9 million in Q2 2020, and free cash flow was $182.8 million in Q2 2021, compared with $218.5 million for Q2 2020, mainly due to the decrease in operating cash flow.
The company’s reported net earnings were $119.3 million, or $0.09 per share, for Q2 2021, compared with $195.7 million, or $0.16 per share, for Q2 2020. The decrease was mainly due to lower operating earnings, partially offset by a decrease in income tax expense, Kinross added in a statement.
Kinross said it is on track to meet its revised production guidance of 2.1 million Au eq. oz. (+/- 5%) previously disclosed on June 21, 2021, and continues to expect production to increase in 2022 and 2023 to 2.7 million and 2.9 million Au eq. oz. (+/- 5%), respectively.
The company added that it was authorized to purchase up to 63,096,676 of its common shares (out of the 1,261,933,539 common shares outstanding as at July 27, 2021) representing 5% of the company’s issued and outstanding common shares, during the period starting on August 3, 2021 and ending on August 2, 2022.
As part of its continuing quarterly dividend program, the company also declared a dividend of $0.03 per common share payable on September 2, 2021 to shareholders of record on as of August 19, 2021.
Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Russia, Mauritania, Chile and Ghana.