Gold miner Kinross has reported a drop in adjusted earnings and also posted weaker production results, but the miner pointed out that its output and costs were in line with its guidance.
Kinross produced 2.45-million gold-equivalent ounces (GEO) at an all-in sustaining cost (AISC) of $965/oz, which compares with 2.67-million GEO in 2017. Fourth-quarter production was 610 152 GEO, at an AISC of $961/oz, which was below the corresponding period’s performance of 652 710 GEO.
The year-on-year decrease in fourth-quarter output was as a result of lower production at the Fort Knox mine, in Alaska, and Bald Mountain, in Nevada, which was partially offset by record production at Tasiast, in Mauritania, and Paracatu, in Brazil.
The completion of the Phase 1 expansion at Tasaist resulted in the mine delivering a record performance in the fourth quarter, with throughput and recoveries exceeding expectations.
“Our portfolio of mines produced solid results, with standout performances from Paracatu and Bald Mountain, both of which delivered record annual production,” said president and CEO Paul Rollinson, who pointed out that Kinross met its guidance for the seventh consecutive year.
The miner’s adjusted earnings fell to $13.5-million, or $0.01 a share, in the fourth quarter, down from $16.3-million, or $0.01 a share, a year earlier. Full-year adjusted net earnings were $128.1-million, or $0.10 per share, compared with adjusted net earnings of $178.7 million, or $0.14 a share, for the full-year 2017.
A reversal of impairment charges related to the sale of the Cerro Casale sale in 2017, an increase in income tax expenses and decreased operating earnings resulted in the miner posting a net loss of $23.6-million, or $0.02 a share, compared with net earnings of $445.4-million, or $0.36 a share, in 2017.
In 2019, Kinross expects to produce 2.5-million GEO from its operations. Production is expected to be lower in the first quarter of 2019, compared with the rest of the year, mainly as a result of the expected Bald Mountain Vantage Complex project ramp-up and lower production from Fort Knox as per the operation’s mining and milling strategy.