Gold miner Kinross Gold Corp posts US$68.8-million loss as production, prices drop

February 10, 2016

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TORONTO — Kinross Gold Corp reported a bigger quarterly loss on Wednesday, as lower production and an ongoing slump in prices for the precious metal hurt the world’s fifth-biggest producer by output.

The Toronto-based miner said its fourth-quarter loss was an adjusted US$68.8 million, or 6 cents a share, compared with an adjusted loss of US$6 million, or 1 cent a share, in the same period last year.

Analysts had expected an adjusted loss of 4.8 cents a share, according to Thomson Reuters I/B/E/S.

In the fourth quarter, Kinross produced 623,716 equivalent ounces of gold, at an all-in sustaining cost of US$991 per ounce. That is down from production of 672,051 ounces in the same period last year, due to low rainfall at its Paracatu mine in Brazil.

For 2015, Kinross produced 2.59 million ounces, at the high end of its forecast of 2.5 million to 2.6 million ounces, at an all-in cost of US$975 per ounce.

For 2016, Kinross said it expects to produce a record 2.7 million to 2.9 million ounces at an all-in sustaining cost of US$890 to US$990 an ounce. Capital expenditure is forecast at approximately US$595 million.

The company also estimated proven and probable mineral reserves at 34 million ounces of gold at year-end, and said that additions largely offset depletion during the year.

© Thomson Reuters 2016

Category: General