UPDATE 1-Canadian miner Kinross profit falls; could restart La Coipa

Wed Jul 30, 2014 6:43pm EDT

Related Topics

(Adds detail on La Coipa, production, costs and analyst estimates)

TORONTO, July 30 (Reuters) - Kinross Gold Corp on Wednesday reported its adjusted earnings fell by more than two thirds in the second quarter, hurt by lower average gold prices, and said it could restart mining at La Coipa in Chile.

The company said it has decided to start work on a pre-feasibility study on the possibility of resuming operations at La Coipa, after some promising exploration results. It suspended mining at the site late last year.

Kinross produced 679,831 gold equivalent ounces in the second quarter, up from 655,381 a year earlier. But its average realized price dropped to $1,285 an ounce from $1,394.

The Canadian gold miner, which has operations in North and South America, Africa and Russia, said its all-in sustaining costs improved to $976 per equivalent ounce from $1,038 a year earlier.

Gold equivalent ounces include silver produced and sold, converted to a gold equivalent based on a ratio of the average spot market price for the commodities for each year.

The company earned $46 million, or 4 cents a share, in the quarter, compared with a net loss of $2.48 billion, or $2.17 a share a year ago, when it took a $2.29 billion one-time charge after opting not to develop the Fruta del Norte project in Ecuador.

Excluding the charge and a foreign exchange gain in the recent quarter as well as other unusual items, adjusted earnings fell to $32.9 million, or 3 cents a share, from $119.5 million, or 10 cents a share, a year ago.

Analysts, on average, had been expecting earnings of 5 cents a share, according to Thomson Reuters I/B/E/S.

Revenue slipped 5.8 percent to $911.9 million, hurt by the lower gold price. (Reporting by Alastair Sharp and Allison Martell; Editing by Leslie Adler)

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