TORONTO (miningweekly.com) – Toronto-based Kinross Gold on Monday posted a net loss of $21,5-million for the third quarter, compared with a $64,7-million profit a year earlier.

Earnings were negatively affected by higher costs and lower production from an expansion at the company's Paracatu mine, in Brazil, which more than offset the benefits of surging gold prices.

The company produced 537 440 oz of gold-equivalent ounces during the quarter, 3% less than in the same period of 2008.

Revenue increased 16%, to $582,3-million, Kinross said, but the company's cost of sales rose to $464/oz, compared with $406/oz a year ago and $434/oz in the second quarter.

"While revenue and cash flow before changes in working capital were higher than the previous year, we are disappointed by other aspects of our results for the third quarter, as they are below our expectations,” CEO Tye Burt said in a statement.

Last week, Kinross announced that it had cut its production forecast and increased its cost guidance for this year, mainly because of difficulties at Paracatu.

Kinross owns mines in the US, Brazil, Chile and Russia, and is studying new projects in Chile, Ecuador, as well as expansions at some existing mines.

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