Kinross Gold Reverses To Loss In Third Quarter
(Kitco News) - Kinross Gold Corp. (TSX: K, NYSE: KGC) reversed to a lossin the third quarter as production and gold prices fell, the company reportedlate Wednesday.
Excluding special items, the company listed an adjusted netloss 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 losswas $104.4 million, or 8 cents per share, compared with earnings of $60.1million, or 5 cents, in the year-ago period. Kinross said the decrease wasmainly a result of lower margins and an increase in income-tax expense.
Gold-equivalentproduction of 586,260 ounces was down from 653,993 a year ago. The averagerealized price of gold fell to $1,209 per ounce from $1,283. Against thisbackdrop, 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 inthe July-September period, down from $621 a year ago.
“Our Nevada,Brazil, Ghana and Russia operations performed well during the quarter and weremain on track to meet our company-wide production and cost guidance for theyear,” said J. Paul Rollinson, president and chief executive officer. “Commissioningof 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, asthe mine delivered record monthly production in October and began mining higher-gradeore.”
The companyprovided updates on a number of other projects, reporting that the Round Mountain Phase PhaseW project is schedule and on budget, with initial ore expected in mid-2019. FortKnox Gilmore is also on schedule and on budget, with initial productionexpected in early 2020. The Bald Mountain complex is also proceeding accordingto plan, with the company last month acquiring the remaining 50% interest inthe Bald Mountain exploration joint venture from Barrick Gold Corp. forconsideration that included $15.5 million in cash and a 1.25% net smelterroyalty, giving Kinross 100% ownership of the entire Bald Mountain landpackage.
Kinross saidit expects to produce 2.5 million gold-equivalent ounces at all-in sustainingcosts of $975 in 2018.
The companyreported that John Oliver will retire as chairman of the board at year-end. CatherineMcLeod-Seltzer, a board member since 2005, has been appointed the new independentchair, effective Jan. 1.
By Allen SykoraFor Kitco News
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