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Kinross Q1 earnings fall on lower sales, prices

Kinross Q1 earnings fall on lower sales, prices

Photo by Bloomberg

8th May 2014

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Canadian miner Kinross Gold on Wednesday reported lower first-quarter earnings, as lower realised prices offset higher output.

Toronto-based Kinross, which has operations in North and South America, Africa and Russia, reported an 80% drop in net earnings to $31.8-million, or $0.03 a share, in the three months ended March 31, down from $162.4-million, or $0.14 a share, in the comparable period a year earlier.

Excluding special items, net earnings declined to $34.1-million, or $0.03 a share, down from $172.4-million, or $0.15 a share, and were on target with Wall Street analysts' average expectations.

Revenue came in higher than analyst expectations of $789.88-million, with Kinross reporting $817.4-million in the period, down 30% from $1.06-billion a year earlier. 

Kinross reported that the average realised price for gold fell 20% to $1 299/oz, compared with $1 624/oz a year earlier.

Kinross reported gold-equivalent output of 664 690 oz, an increase of 15 793 oz over the 648 897 oz produced in the comparable period last year.

In the quarter, the all-inclusive sustaining costs for gold dropped to $1 001/oz, down from $1 030/oz.

The miner said it expected to produce between 2.5-million and 2.7-million ounces of gold equivalent in 2014.

Edited by Creamer Media Reporter

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