Kinross Gold (TSX: K, NYSE: KGC) released its first quarter results on Tuesday, and the world's no. 4 gold miner reported strong quarterly performance and said it is on track to meet 2019 annual guidance.
Kinross reported first quarter gold equivalent production of 606,031 ounces, which is in line to meet 2019 guidance, targeted at 2.5 million ounces.
Production cost per ounce was $682, a win for Kinross, with 2019 guidance set for $730 per ounce. All-in sustaining cost (AISC) comes in at $925 per ounce, putting the company on track to achieve the targeted $995 for the year. Production numbers were down compared to the same quarter in 2018, however, with Q12019 production at 606,031 ounces, a drop from last year's first quarter, when the miner churned out 653,937 ounces. Sold ounces were also down from Q1 2018, falling from 668,217 ounces to 597,649.
Capital expenditures were $264.8 million, on track to meet guidance set at $1,050 million for the year.
The miner reported net earnings of $64.7 million, or $0.05 per share, and adjusted net earnings of $83.3 million, or $0.07 per share.
"We had an excellent first quarter built on strong operational performance and disciplined cost management," J. Paul Rollinson, Kinross President and CEO said in the media statement.
"Our three largest operations - Paracatu, Tasiast and Kupol - all exceeded expectations. At Paracatu, improved grade control, mill efficiencies, high recoveries and lower power costs resulted in record quarterly production and the lowest production costs since 2010. Tasiast set another production record in the quarter and costs continued to decline. Kupol continued its consistent high performance and delivered yet another strong quarter," Rollinson said.
At market close Tuesday, Kinross shares were down 0.33%, priced at $3.06 on the NYSE, but came up 4.2% in after hours trading. The company has a $3.83B market capitalization.