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Kinross reports lower earnings, pauses Tasiast phase two

Kinross Gold (TSX: K) reported lower net earnings and production for the June quarter compared with the previous June period but said it was on track to meet 2018 production and cost guidance.
Kinross reports lower earnings, pauses Tasiast phase two Kinross reports lower earnings, pauses Tasiast phase two Kinross reports lower earnings, pauses Tasiast phase two Kinross reports lower earnings, pauses Tasiast phase two Kinross reports lower earnings, pauses Tasiast phase two

Miner says it remains on track to achieve 2018 guidance

Staff reporter

The company also said it has paused phase two expansion activities at its Tasiast mine in Mauritania while it discusses its "activities in the country" with the government.

"We remain committed to disciplined capital allocation as we seek additional clarity on the matter," Kinross president and CEO J. Paul Rollinson said.

Kinross said it had received a letter from the Mauritanian government in May wanting to enter discussions, which the company understood as seeking greater benefits for the country.

Rollinson said Tasiast was a leading example of how Kinross was "contributing positively to improving well-being and prosperity in host communities through our benefit footprint" as the company also released its 2017 Corporate Responsibility Report yesterday.

Phase one expansion at Tasiast was completed during the June quarter with first ore through the SAG mill.

In the quarterly results, Rollinson said the company's projects in the US continued to make "excellent progress" and in Russia, Kinross expected production to start at the Moroshka satellite deposit near Kupol early in the fourth quarter.

Kinross produced 602,049 ounces gold-equivalent in the June quarter at an all-in sustaining cost of $1,018/oz AuEq, compared with 694,874oz AuEq at $901/oz in the second quarter of 2017.

It expects to produce 2.5Moz AuEq (+/- 5%) this year, at an AISC of about $975/oz.

It reported net earnings of $2.4 million or 0c per share for the June quarter, down from $33.1 million or 3c/share in the previous corresponding period.

It had $918.7 million in cash and equivalents at the end of June and available credit of $1.56 billion, with no debt maturities until 2021.

Kinross shares closed down 1.49% yesterday to C$4.63.