In their recent news release Kinross Gold has announced that second quarter production was 439,783 gold equivalent ounces and that they are on track to hit their target for 2007 of approximately 1.65 million gold equivalent ounces. Revenue was also up on the second quarter of 2006 by 15% to $290.1 million.

Cost of sales has increased though to $348 per ounce compared with 2006, which was $311 per ounce. Part of this increase in costs is due to the impact of fair value accounting on the acquired bullion inventory of the Bema.

Kinross have stated that the company is in on schedule to meet its planned production target of 2.1 to 2.2 million ounces in 2008 and 2.6 to 2.7 million ounces in 2009. If gold remains at its current price of around $670.0 per ounce then this production equates to a turnover of around $1.90 billion.

Kinross President and CEO, Tye Burt, commented as follows regarding the second quarter 2007 results:

“We are pleased to record another excellent quarter, consistent with our previous guidance for 2007. We continue to get strong production from our operations, and with the Bema acquisition
complete, we are firing on all cylinders and striving to maximize production and margins in a strong gold market.”

We were holders of Bema stock and are pleased to see that Bema is being integrated into the Kinross structure without too many problems.

Just a reminder that Kinross has a no gold hedging policy which we are favour of as we want to be exposed to gold as we believe that it is going much higher than it is today.

Kinross Gold Corporation trades on the Toronto stock Exchange as K and on the New York Stock Exchange as KGC.