VANCOUVER (miningweekly.com) – Multinational miner Kinross Gold has posted slightly better first-quarter headline earnings as metals prices improved in the period ended March.

Adjusted net earnings attributable to common shareholders were $23.4-million, or $0.02 a share, compared with $21.2-million, or $0.02 a share, for the same period in 2016, comfortably beating market forecasts expecting a loss of $0.03 a share.

During the first quarter, net earnings amounted to $134.6-million, or $0.11 a share, compared with $35-million, or $0.03 a share, in the same period of 2016. The change was mainly attributed to an increase in operating earnings, and the reversal of a previous impairment charge booked on the Cerro Casale project, in Chile.

On March 28, Kinross announced it had entered into an agreement to sell its 25% interest in the Cerro Casale, and its 100% interest in the Quebrada Seca exploration project to Goldcorp. As the selling price is higher than the carrying value, Kinross recorded a reversal of previously recorded impairment charges of $97-million.

Revenue in the period rose slightly to $796.1-million, based on total gold equivalent sold of 652 516 oz, compared with revenue of $782.6-million on sales of 664 165 oz of gold equivalent during the first quarter of 2016. The average gold price realised in the first quarter was $1 220/oz, compared with $1 179/oz a year earlier.

Kinross reported costs of $701/oz of gold equivalent sold, up from $687/oz a year earlier, and all-in sustaining costs (AISC) came in at $953/oz of gold equivalent, marginally lower compared with $956/oz a year earlier.

Kinross’s attributable output fell 2% year-on-year to 671 956 oz of gold equivalent, as a result of lower output at Kupol, in Russia, owing to a grade decrease, and weaker output at Maricunga, in Chile, where mining and crushing activities were suspended on the back of water curtailment orders. These decreases were partially offset by higher production at Bald Mountain, in the US, owing to increased mining activities, and stronger output at Tasiast, in Mauritania, and Chirano, in Ghana, owing to higher grades.

Kinross confirmed its full-year guidance at between 2.5-million and 2.7-million gold equivalent ounces. The company expects to be within its production cost of sales guidance range of $660/oz to $720/oz of gold equivalent and its AISC guidance range of $925/oz to $1 025/oz gold equivalent sold in 2017.

Kinross also expects to make capital expenditures of about $900-million this year.