VANCOUVER (miningweekly.com) – Canadian major Kinross Gold has reported a 35% dip in third-quarter profit as metal sales fell, the company advised on Wednesday.
The Toronto company reported adjusted net earnings attributable to common shareholders for the three months ended September of $84.1-million, or $0.07 a share, compared with $128.7-million, or $0.10 a share, for the same period in 2016. The company attributed the decrease to lower revenue and income tax recovery.
The result was a comfortable beat on bearish analyst forecasts calling for earnings of only $0.02 apiece.
Net earnings attributable to common shareholders were $60.1-million, or $0.05 a share, compared with $2.5-million, or nil per share, in the same period of 2016.
Revenue fell 9% year-on-year to $828-million.
Gold equivalent ounces sold fell 5% year-on-year to 645 235 oz, compared with 680 327 oz in the same period a year earlier. This was mainly owing to a decrease in Kinross’s attributable output and the timing of sales at Maricunga, in Chile, and Bald Mountain, in Nevada.
The average realised gold price fell 4% to $1 283/oz, from $1 336/oz a year earlier, while all-in sustaining costs per gold-equivalent ounce sold, on a by-product basis, fell 6% to $937/oz.
Kinross’s attributable output fell by 4% to 653 993 oz, down from 684 129 oz a year earlier, mainly as a result of lower production at Paracatu, in Brazil, owing to the temporary curtailment; at Kupol, in Russia, owing to lower grades; and at Maricunga, owing to the ongoing suspension of mining and crushing activities. This was offset by an increase in output at Bald Mountain and at Round Mountain, owing to an increase in ounces recovered from the heap leach pads, and at Tasiast, in Mauritania, as a result of higher mill grade and mill throughput.
Kinross said production guidance for 2017 is tracking towards the higher end of about 2.5-million to 2.7-million ounces, while all-in sustaining costs are likely to come in at the lower end of its guidance range of $925/oz to $1 025/oz.
The company's NYSE-listed stock gained 3.83% in aftermarket trading at $4.34 a share, adding to the 1.7% gain registered in normal trading hours. The stock has gained 34.4% since the start of the year.