Kinross Gold Corp. (KGC: Quote,K.TO: Quote) reported second-quarter net earnings attributable to common shareholders of $153.6 million, down from $247.4 million in the year ago quarter. On a per share basis, net income was $0.13, down from $0.22 last year. Reported net earnings were lower mainly due to lower production and increases in production cost of sales, which were partially offset by a higher realized gold price.
Adjusted net earnings from continuing operations attributed to common shareholders were $156.0 million, compared with $222.6 million last year. Adjusted net earnings from continuing operations were $0.14 per share, compared with $0.20 per share in the prior year.
Revenue from metal sales was $1.01 billion in the second quarter of 2012, compared with $963.6 million during the same period in 2011, an increase of 4%, due to a higher average realized gold price.
Analysts polled by Thomson Reuters expected the company to report earnings of $0.17 per share on revenues of $1.02 billion for the quarter. Analysts' estimates typically exclude special items.
The company said its Board of Directors declared a dividend of $0.08 per share
payable on September 28, 2012 to shareholders of record at the close of business on September 21, 2012.
Kinross said it produced 632,772 attributable gold equivalent ounces from continuing operations in the second quarter of 2012, a 4% decrease over the second quarter of 2011, mainly due to an anticipated decline in grade at Kupol and Kettle River-Buckhorn, and the expected increase in processing of lower-grade stockpile ore at La Coipa.
Kinross now expects to produce approximately 2.5-2.6 million gold equivalent ounces in 2012 from its continuing operations, compared with its previous 2012 production forecast of 2.6-2.8 million gold equivalent ounces. The Company remains on track to be within its full-year 2012 production forecast range, excluding the adjustment in guidance due to the disposition of its interest in Crixas.
Due to the disposition of Kinross' 50% interest in Crixas on June 28, 2012, the Company's share of Crixas' full-year forecast, including production of approximately 70,000 gold equivalent ounces, has been removed from the consolidated 2012 production forecast.
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by RTT Staff Writer
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