(Kitco News) - Kinross Gold Corp. (TSX: K, NYSE: KGC) posted adjusted net earnings of $273.4 million, or 24 cents a share, for the third quarter, the company said late Wednesday. This was up by 134% from $116.8 million, or 15 cents a share, in the year-ago period.

The company listed record quarterly revenue of $1.069 billion, a 45% increase over $735.5 million in the third quarter of 2010. The increase was the result of more ounces produced and an average realized gold price of $1,646 an ounce in the third quarter, compared to $1,190 in the third quarter of 2010.

Third-quarter production totaled 647,983 gold-equivalent ounces, which Kinross said was a 13% increase from the prior year due to a full quarter of production from West African operations. The production cost was reported at $634 per gold-equivalent ounce, compared to $517 in the third quarter of 2010. The company reported a margin of $1,012 per ounce, up 50%.

Kinross said it expects to be within its 2011 guidance for production of 2.6 million to 2.7 million gold-equivalent ounces and at production cost of sales of $565 to $610 an ounce.

The adjusted operating cash flow was listed at $421.6 million, an 82% increase.  Net earnings were $212.6 million, or 19 cents a share, compared with $540.9 million, or 71 cents a share, for the third quarter of 2010, when there were “significant one-time gains,” Kinross said.

“We made significant progress in the quarter advancing our industry-leading growth program,” said Tye Burt, president and chief executive officer. “Our drilling campaign at Tasiast continues both to confirm our confidence in the resource and indicate potential further expansions to our previous model. We received approval of the first phase environmental impact assessment at Tasiast, and mobilization for construction is underway. We continued to advance our other growth projects, all of
which remain on schedule.”

Capital commitments at Tasiast, in the African nation of Mauritania, to the end of the third quarter were $782 million.

“Our successful completion of a $1 billion debt offering during the quarter confirmed the market’s confidence in Kinross’ ability to deliver on our strategy, and strengthened our foundation for growth,” Burt said.

By Allen Sykora of Kitco News; asykora@kitco.com

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