UPDATE 1-Kinross reports net loss on mine writedown

Wed Feb 13, 2013 6:22pm EST

Related Topics

* Adj EPS $0.24 vs Street-view $0.22

* Revenue up 29 pct

* Takes $3.21 billion charge on Tasiast, Chirano mines

TORONTO, Feb 13 (Reuters) - Canada's Kinross Gold Corp reported a fourth quarter net loss on Wednesday as an impairment charge related primarily to its Tasiast gold mine in West Africa outweighed a boost in revenue.

The gold miner took a $3.21 billion after-tax, non-cash impairment charge related to Tasiast, in Mauritania, and the Chirano gold mine in Ghana, both of which were acquired in the company's $7.1 billion takeover of Red Back Mining in 2010.

The writedown follows a $2.94 billion non-cash goodwill impairment charge in the fourth quarter of 2011, also related to the Red Back assets.

Kinross reported a fourth quarter net loss of $2.99 billion, or $2.62 cents a share, in the quarter ended Dec 31. That compared with a year-ago loss of $2.79 billion, or $2.45 a share.

Excluding one-time items, the company reported a profit of $276.5 million, or 24 cents in the quarter, coming in ahead of the average analyst estimate of 22 cents a share, according to Thomson Reuters I/B/E/S.

Revenue for the quarter rose 29 percent to $1.19 billion, boosted by higher output and better gold prices.

Kinross produced 724,510 gold equivalent ounces in the quarter, up from 622,507 ounces in the year-ago quarter. Full year gold production rose 3 percent to 2.6 million ounces, up from 2.5 million ounces in 2011.

The company said it expects to produce 2.4 million to 2.6 million gold equivalent ounces in 2013. It forecast total capital expenditures of about $1.6 billion in 2013, about $325 million less than in 2012.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.