Kinross Gold Slips To Loss In Q3

(RTTNews) - Canadian gold miner Kinross Gold Corp. (KGC, K.TO) reported that its third-quarter net loss attributable to Common shareholders was $4.3 million and break even per share, compared with earnings of $46.9 million and $0.04 per share, in last year, due mainly to higher deferred non-cash income tax expense in Chile resulting from changes to Chilean tax law, offset by higher revenue.

Adjusted net earnings from continuing operations attributable to common shareholders were $70.1 million and $0.06 per share compared with adjusted earnings of $54.4 million and $0.05 per share, in the prior year, due mainly to an increase in gold sales.

Revenue was $945.7 million, compared with $876.3 million last year.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.03 per share and revenues of $841.34 million for the quarter. Analysts' estimates typically exclude special items.

Kinross produced 693,818 attributable Au eq. oz. in the third quarter of 2014, an increase over the third quarter of 2013, due mainly to increased production at Maricunga and the processing of higher grade ore from Dvoinoye, offset by the suspension of mining at La Coipa in October 2013.

Kinross expects to come in at the high end of its narrowed 2014 production forecast of 2.6-2.7 million Au eq. oz., from its previous range of 2.5-2.7 million Au eq. oz.

As a result of successful cost reduction initiatives, the Company is lowering its 2014 guidance range for production cost of sales per Au eq. oz. sold to $720-$750 from its previous range of $730-$780, and is narrowing downward its guidance range for all-in sustaining cost per Au eq. oz. sold to $950-$990 from its previous range of $950-$1,050.

The company lowered its guidance for capital expenditures from $675 million to a range of $630-$650 million and expects to come in below its 2014 guidance of $205 million for overhead (G&A and business development).

Kinross said it is on track to meet its 2014 exploration expenditures forecast of $90 million, which includes $5 million in capitalized exploration.