[caption id="attachment_1003725580" align="aligncenter" width="479"] Commissioning is complete for the phase one SAG mill at the Tasiast expansion in Mauritania. (Image: Kinross Gold)
TORONTO – Kinross Gold
has released its third quarter results that indicate the company achieved solid production and generated a cash flow. Operations in Nevada, Brazil, Ghana and Russia all performed well, said the company.
On the production side, the company produced 586,260 gold equivalent oz. in Q3 2018, compared to 653,993 oz. in the same quarter a year earlier. The production cost of sales per gold ounce equivalent rose to $777 (U.S. dollars) in Q3 2018, compared to $662 a year earlier. Kinross said the added costs were mainly due to the high cost of sales from the Fort Knox, Tasiast and Kupol mines. The average realized gold price in Q3 2018 was $1,209 per oz., compared to $1,283 per oz. in Q3 2017.
This year’s drop in the price of gold pulled down Kinross’s numbers in several important areas. Revenue from metal sales was $753.9 million (compared to $828.0 million) on the sale of 618,463 gold equivalent oz. sold.
The all-in sustaining cost rose slightly to $1,049 per oz. (compared to $ $937), and that, too, cut into earnings and cash flow. For Q3 2018, the company had an adjusted operating cash flow of $143.2 million (compared to $320.8 million) and an adjusted net loss of $48.4 million or $0.04 per share (compared to adjusted net earnings of $84.1 million or $0.07per share).
The outlook for Kinross is good. It expects to produce 2.5 million oz. of gold equivalent at a production cost of sales of $730 per oz. and all-in sustaining cost of $975 per oz. sold on both a gold equivalent and by-product basis for 2018. Total capital expenditures are forecast to be approximately $1.1 billion.
Find the details in the news release for Nov. 7, 2018, at www.Kinross.com.