(Adds detail on La Coipa, production, costs and analyst
TORONTO, July 30 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
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
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