Canada-based Kinross Gold has nearly doubled its net earnings in the March quarter, while its margin growth outpaced the increase in the average realised gold price.

The TSX-listed company, which operates in the Americas, West Africa and Russia, reported net earnings of $122.7-million, or $0.10 a share, in the first quarter, and a 53% year-on-year increase in adjusted earnings to $127.4-million, or $0.10 a share.

Its operating cash flow increased by 19% to $299.6-million and its adjusted operating cash flow surged 81% to $418.6-million.

Kinross’ gold-equivalent production reduced from 606 031 oz in the first quarter of 2019 to 567 327 oz in the quarter under review and sales also reduced from 597 649 oz to 552 724 oz.

The decrease, the company explains, was mainly owing to lower production at Paracatu, in Brazil, Kupol, in Russia, and Chirano, in Ghana, and the end of production at Maricunga, in Chile, partially offset by higher production at Fort Knox, in Alaska.

All-in sustaining cost sold was $993 a gold-equivalent ounce (GEO) in the first quarter of 2020, compared with $925/GEO in the prior-year period.

Despite the lower sales, revenue increased from $786.2-million to $879.8-million on the back of a 21% increase in the average realised gold price to $1 581/oz. Kinross points out that its attributable margins for each ounce of gold-equivalent increased by 33% to $827/GEO.

“During the quarter, we focused on protecting the health and well-being of our employees and communities against the spread of Covid-19 while maintaining the continuity of our operations in a safe manner. As a result of our business continuity plans and precautionary protocols implemented across our global portfolio, and with the support of our host governments, all our mines remained operational during the quarter and were not materially impacted by the pandemic.

“While we prudently withdrew our 2020 guidance given the pandemic’s significant global impacts, we will continue to work safely on meeting our 2020 operational targets,” says president and CEO Paul Rollinson in a statement.

He notes that Kinross has taken steps to strengthen its financial position against the economic and business uncertainties caused by the global health crisis.

“The company generated strong free cash flow and increased earnings year-over-year, ending the quarter with excellent liquidity, low net debt, and with investment grade credit ratings from all three major rating agencies. During the quarter, our margins increased by 33%, outpacing the 21% increase in average realised gold price.”