Kinross third-quarter results weakened by fire at mill in West Africa

TORONTO – Mining company Kinross Gold Corp. reported weaker results in its latest quarter as gold production and sales fell by nearly 20 per cent from the prior year following a fire at its Tasiast mill in West Africa in June.

The Toronto-based company says its net loss attributable to shareholders was US$44.9 million or four cents per diluted share in the third quarter.

That compared with a net profit of US$240.7 million or 19 cents per share a year earlier.

Kinross, which reports in U.S. dollars, says adjusted profits dropped to US$90.2 million or seven cents per share, from US$310.2 million or 25 cents per share in the third quarter of 2020.

Revenues for the three months ended Sept. 30 fell 23.8 per cent to US$862.5 million from US$1.13 billion in the prior year quarter.

Kinross was expected to report five cents per share in adjusted profits on US$933.2 million in revenues, according to financial data firm Refinitiv.

“We are pleased to announce that the Tasiast mill has now restarted at costs below original estimates and is ramping back up,“ stated CEO J. Paul Rollinson.

“The mill is also on track to reach 21,000 tonnes per day throughput by the end of Q1 2022.”

Gold production attributable for Kinross fell 19.9 per cent to 483,060 ounces in the quarter while sales of the gold produced decreased 18.7 per cent to 478,459 ounces.

Still, the company says it is on track to meet its revised production guidance of 2.1 million ounces this year and continues to expect output of 2.7 million and 2.9 million in 2022 and 2023.

The average realized gold price decreased six per cent to US$1,790 per ounce.

This report by The Canadian Press was first published Nov. 10, 2021.

Companies in this story: (TSX:K)

Source link

Leave a Reply

%d bloggers like this: