Kinross reports 2012 third-quarter results
Toronto, Ontario – November 7, 2012 – Kinross Gold Corporation (TSX: K, NYSE: KGC) today announced its results for the third quarter ended September 30, 2012.
(This news release contains forward-looking information that is subject to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located on page seven of this news release. All dollar amounts in this news release are expressed in U.S. dollars, unless otherwise noted. The comparative figures have been recast to exclude Crixás due to its disposal.)
Financial and operating highlights:
Production1: 672,173 gold equivalent ounces, compared with 632,432 ounces in Q3 2011.
Revenue: $1,109.7 million, compared with $1,041.0 million in Q3 2011.
Production cost of sales2: $677 per gold equivalent ounce, compared with $626 in Q3 2011.
Attributable margin3: $972 per ounce sold, compared with $1,018 in Q3 2011.
Adjusted operating cash flow4: $434.4 million, compared with $412.9 million in Q3 2011. Adjusted operating cash flow per share was $0.38, compared with $0.36 in Q3 2011.
Adjusted net earnings4, 5: $250.4 million, compared with $269.4 million in Q3 2011. Adjusted net earnings per share were $0.22, compared with $0.24 in Q3 2011.
Reported net earnings5: $224.9 million, or $0.20 per share, compared with $207.1 million, or $0.18 per share, for Q3 2011.
Outlook: The Company remains on track to meet its 2012 production forecast of approximately 2.5-2.6 million gold equivalent ounces from its continuing operations, and its cost of sales forecast of $690-$725 per gold equivalent ounce. As a result of the cost reduction initiative announced in Q2 2012, Kinross has identified approximately $200 million in capital expenditure reductions for 2012, and has reduced its full-year capital expenditure forecast to $2.0 billion from the previous forecast of $2.2 billion.
The Tasiast pre-feasibility study (PFS) remains on schedule to be completed in Q1 2013.
Development at Dvoinoye continues to advance and the project remains on schedule to deliver first ore to the Kupol mill in the second half of 2013.
On August 17, 2012 Kinross announced a new three-year unsecured $1.0 billion term loan and amended its unsecured revolving credit facility to increase available credit to $1.5 billion from $1.2 billion and extend the maturity date from March 2015 to August 2017.
On October 31, 2012 the Company announced the appointment of Tony S. Giardini as Executive Vice- President and Chief Financial Officer, effective December 1, 2012. Mr. Giardini will replace Paul H. Barry, whose departure was announced on October 10, 2012.
During the third quarter, Kinross was named to the Dow Jones Sustainability World Index for the second consecutive year and the Dow Jones Sustainability North America Index for the third year in a row.