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« Who’s Scoffing Now? | Main | Kinross Gold Corporation Investors not impressed »
Thursday
Aug052010

Kinross Gold Corporation Margins increased by 38%

Kinross logo 01 March 2010.JPG


Just in case you missed these results for the second quarter ended June 30, 2010, Kinross Gold Corporation (KGC) highlights are as follows:

Production1 in the second quarter 2010 was 538,270 gold equivalent ounces, a slight decrease of 4% over the sameperiod last year.

Revenue for the quarter was $696.6 million, compared with $598.1 million in the second quarter of 2009, an increaseof 16%.

The average realized gold price for the quarter was $1,158 per ounce sold, compared with $915 per ounce sold in Q2 2009, an increase of 27%.

Cost of sales per gold equivalent ounce2 was $496 for Q2, an increase of 14% compared with Q2 2009.

Cost of sales per gold ounce on a by-product basis was $459 in Q2 compared with $382 for the same period last year.

Kinross’ attributable margin per ounce sold3 was a record $662 in Q2, a year-over-year increase of 38%.

Adjusted operating cash flow4 was $271.4 million, or $0.39 per share, compared with $227.1 million, or $0.33 per share, in Q2 2009, an increase of 20% in adjusted operating cash flow.

Adjusted net earnings4 were $113.1 million, or $0.16 per share, compared with $84.3 million, or $0.12 per share, in Q2 2009, an increase of 34% in adjusted net earnings.

Reported net earnings were $103.8 million, or $0.15 per share, compared with $19.3 million, or $0.03 per share, in Q2 2009.

On August 2, Kinross and Red Back Mining Inc. announced a $7.1-billion transaction to create a pure gold senior producer with an exceptional growth profile, combining Kinross’ strong base of high-quality mines, growth projects, and proven track record, with Red Back’s early-stage operating mines and outstanding exploration and expansion potential.

On July 23, Kinross announced that it had sold its 19.9% equity interest in Harry Winston Diamond Corporation. Proceeds from this sale are approximately $186 million. The Company also agreed to sell its interest in the Diavik Diamond Mine joint venture for approximate proceeds of $220 million.

Kinross has agreed to acquire B2Gold Corp.’s right to an interest in the Kupol East and West exploration licence areas, further consolidating the Company’s interests in the area surrounding the Kupol mine.

The Board of Directors declared a dividend of $0.05 per share payable on September 30, 2010 to shareholders of record at the close of business on August 31, 2010.

Tye Burt, President and CEO had this to say:

Kinross recorded another quarter of strong financial results, with record margins and year-over-year increases in revenue, operating cash flow, and adjusted net earnings4. We remain on target to meet our overall 2010 production and cost of sales per ounce forecast.


To read this article in full please click here.

Kinross Gold Corporation trades on the TSX under the symbol of K, and on the NYSE under the symbol of KGC. Kinross has a market capitalization of $10.86 billion, with average turnover of around five million shares, a P/E of 31.64 and closed today at $15.72.

Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.

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