* Q1 adj EPS $0.18/share v Street view $0.20/share
* Revenue rises 11 percent on higher realized gold price
* Profit hit by one-time tax charges, higher costs
* Company says talks over Fruta del Norte ongoing
Toronto, May 8 Canada's Kinross Gold said
on Tuesday its first-quarter profit fell 57 percent, as the gold
miner's revenues were hit by one-time, tax-related charges.
The Toronto-based miner said its profit in the quarter ended
March 31, 2012 was $105.7 million, or 9 cents a share, down from
a year-earlier profit of $250.1 million, or 22 cents a share.
Earnings in the quarter were affected by tax liabilities and
a $110.3 million non-cash item related to an income tax rate
change in Ghana.
Excluding one-time items, the company reported a profit of
$203.1 million, or 18 cents a share, up from $175.3 million, or
15 cents a share, in the first quarter of 2011.
Analysts, on average, had expected earnings of 20 cents a
share, according to Thomson Reuters I/B/E/S.
Gold output fell 6 percent in the quarter, while costs per
ounce were 36 percent higher. Despite this, revenue rose 11
percent to $1 billion on higher realized gold prices.
The gold miner produced 611,838 gold equivalent ounces in
the quarter, compared with 700,479 in the year-earlier period,
as output fell across nearly all regions where Kinross operates.
Costs per ounce rose to $742, compared with $545 in the
first quarter of 2011. The average realized sales price rose 24
percent to $1,644 per ounce.
Kinross, which owns mines in North and South America, Russia
and Africa, maintained its forecast of 2.6 million to 2.8
million gold equivalent ounces in 2012.
The company noted that mining activity at the Tasiast mine
in Mauritania is accelerating and that an expansion at the
project is on plan.
The miner also said negotiations are ongoing with Ecuador
over the Fruta del Norte development project. The company is
hoping to rework its deal with Andean nation, under which it
would pay roughly half its income, after production costs, in
taxes and royalties.
Shares of Kinross are down more than 34 percent this year.
The stock has come under pressure in recent months, after the
miner booked a massive $2.94 billion non-cash goodwill
impairment charge in February related to its acquisition of the
Tasiast and Chirano mines.
Kinross acquired the West African gold mines through its
$7.1 billion takeover of Red Back Mining in 2010.