TORONTO – It is a close comparison, but Kinross Gold reported higher revenue and lower all-in sustaining costs for the first quarter compared to Q1 2015. Revenue was US$782.6 million in 2016, compared to US$781.4 million in 2015. AISC were US$963 in Q1 2016, compared to US$684 a year earlier.
The slumping price of gold brought down a raft of other numbers. Adjusted net earnings were US$1.4 million, compared to US$15.4 million a year earlier. Adjusted operating cash flow was US$202.6 million, compared with US$214.8 million. And the reported net loss was $13.9 million in Q1 2016, compared to a loss of US$6.7 million in Q1 2015.
Kinross is boosting its capital budget to US$755 million for 2016, due largely to the phase one expansion of the Tasiast gold operation in Mauritania. This project is expected to nearly double production and cut the cost of sales per ounce by half. A prefeasibility study for a potential phase two expansion has been completed. If the second phase goes ahead, Tasiast will become the company’s largest, lowest cost mine.
More information about the first quarter is posted at www.Kinross.com.