Kinross Gold Q3 Gold Production Slightly Decreases

(RTTNews) - Kinross Gold Corp. (K.TO, KGC) reported that it produced 680,679 attributable gold equivalent ounces in third quarter 2015, compared to 693,818 ounces, prior year, due mainly to lower production at Maricunga as a result of heavy rains in March, which impacted the tonnes of ore placed on the heap leach pads, and at Chirano and Kettle River-Buckhorn, due to an expected decline in grades. The company said the decrease was partially offset by increased production at Fort Knox and the combined Kupol-Dvoinoye operation, due to higher mill grades, and at Round Mountain, due to improved heap leach performance and higher mill recoveries.

As part of the company's cost reduction efforts, Kinross has reduced corporate headcount costs by 23% and is closing its Denver office.

Kinross expects to be within its updated 2015 guidance range for production, all-in sustaining cost, and cost of sales. The company expects to be below its updated capital expenditure guidance and below its overhead guidance, which excludes one-time restructuring charges.

For the third quarter 2015, revenue from metal sales was $809.4 million, compared with $945.7 million during the same period in 2014, due to a lower average realized gold price and lower gold equivalent ounces sold. Reported net loss was $52.7 million, or $0.05 per share, compared to a net loss of $4.3 million, or $0.00 per share, prior year. The company said its reported net loss was due mainly to lower margins as a result of a lower average gold price. Adjusted net loss was $23.9 million, or $0.02 per share, for third quarter 2015.