Kinross Reports Rise In 1Q Adjusted Earnings
(Kitco News) - Kinross Gold Corp. (TSX:K, NYSE: KGC) reported a rise in its adjusted first-quarter profit late Tuesday,with revenues rising on higher sales and a higher gold price.
Net earnings came in at$106.1 million, or 9 cents per share, down from $134.6 million, or 11 cents, inthe first quarter of 2017. However, excluding special items, adjusted netearnings of $125.2 million, or 10 cents, were well up from $23.4 million, or 2cents, in the year-ago period.
BMO Capital Marketspointed out that the adjusted earnings were also well above the consensusanalysts’ estimate of a nickel per share.
Gold-equivalent productionslipped to 653,937 ounces from 671,956. However, the number of ounces sold roseto 668,217 from 645,946. Further, the average realized gold price increased to$1,330 per ounce from $1,220. Against this backdrop, revenue rose to $897.2million from $796.1 million.
The all-in sustaining costfell to $846 per gold-equivalent ounce sold from $953. All-in sustaining costsper gold ounce sold on a by-product basis were $835, down from $945.
The company left its outlookguidance unchanged, projecting production of 2.5 million gold-equivalent ouncesfor 2018.
“We generated strong cashflow and ended the quarter with approximately $1 billion of cash on the balancesheet, relatively unchanged from year-end 2017,” said J. Paul Rollinson, presidentand chief executive officer.
He also outlined progresson the company’s development projects.
“The Tasiast Phase Oneexpansion is now near completion, on budget and on schedule to reach its 12,000[tones-per-day] throughput capacity by the end of June,” the CEO said. “The companyis assessing the government of Mauritania’s request to enter into mutuallybeneficial discussions, respecting all of Kinross’ activities in Mauritania,with a view to improving economic benefits to the country, including thepotential impact on the Phase Two expansion.
“Our Nevada projects atRound Mountain and Bald Mountain are continuing to proceed on schedule. InJune, we expect to announce the feasibility study results for the Fort KnoxGilmore project, an opportunity to potentially extend mine life at one of ourbest-performing operations. In Chile, we expect to commence a feasibility studyfor the La Coipa restart project at mid-year. Finally, we also expect to beginmining high grade ore at the Moroshka satellite deposit near Kupol in thesecond half of 2018.”
By Allen SykoraFor Kitco News
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