TORONTO (miningweekly.com) – Canada's Kinross Gold on Tuesday announced a strategic investment in a company with mines in West Africa, and reported earnings of $110,6-million in the first quarter of this year, an increase of 44,6% compared with a net income of $76,5-million a year ago.

Kinross said revenue for the quarter rose 23%, to $657,6-million, helped by higher realised gold prices and a slight increase in gold output.

The company produced 544 134 gold-equivalent ounces in the first quarter, up 3% compared with the same period of 2009.

But the average realised gold price for the period increased 19% year-on-year, to $1 065/oz.

Excluding some items, adjusted net earnings rose to $97,4-million, compared with $70,7-million in the first quarter of 2009.

Kinross owns mines in the US, Russia, Brazil and Chile, is looking at expanding some of its existing operations and also has development projects in Ecuador and Chile.

"Kinross had a strong first quarter, with significant year-over-year increases in revenue, margins and adjusted net earnings," said CEO Tye Burt.

"We continue to advance our organic growth projects at existing operations while making good progress at the major development projects."

Kinross recently completed the acquisition of junior Underworld Resources, for its White Gold project, in Canada's Yukon territory, and agreed earlier in the year to buy a high-grade gold deposit located about 90 km from its remote Kupol mine, in eastern Russia.

In February, the company announced it would sell half of its 50% holding in the large Cerro Casale gold/copper project, in Chile, to partner and larger rival Barrick Gold.

The firm revealed on Tuesday it has bought a 9,4% stake in Red Back Mining in a private placement, for C$600-million. Red Back has two gold mines in Mauritania and Ghana, and has been very successful in increasing the size of the resources.

"Kinross' investment in Red Back enhances our leverage to the gold price and gives us a strategic stake in a fast-growing producer with great exploration potential, a first-class management team, and assets in one of the world's most prolific gold regions," Burt said in a statement.

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