Business
Kinross announces 2006 first quarter revenue growth and earnings of $8.9 million
Kinross announces 2006 first quarter revenue growth and earnings of $8.9 million.
About this update from Kinross Gold Corporation
[{"type":"text","content":"\n\n\n\n\nParacatu project scope expanding\n\nTORONTO, May 4 /CNW/ - Kinross Gold Corporation (TSX-K; NYSE-KGC)\n(\"Kinross\" or the \"Company\"), announced today its unaudited results for the\nfirst quarter ended March 31, 2006.\n\n(All dollar amounts in this press release are expressed in U.S. dollars,\nunless otherwise noted)\n-------------------------------------------------------------------------\n\nFirst Quarter Highlights\n\n- Kinross sold 371,818 gold equivalent ounces in the first quarter of\n 2006. The Company remains on track to produce approximately\n 1.44 million gold equivalent ounces in 2006.\n\n- Revenue was $198.3 million in the first quarter, a 10% increase over\n the same period last year. The increase was mainly due to the\n quarter-over-quarter increase in the average realized price of gold,\n partially offset by fewer ounces sold.\n\n- The Company realized $532 per ounce of gold sold, an increase of 24%\n over the same period last year, at a cost of sales(1) of $327 per\n ounce, an increase of 20% over the first quarter of 2005, primarily\n as a result of higher costs at Porcupine and Musselwhite, the high\n cost of producing the final low-grade stockpiles at Kubaka as well as\n industry-wide cost pressures and the strengthening Canadian dollar\n and Brazilian real relative to the U.S. dollar. Kinross now expects\n cost per ounce of gold equivalent sold to be in the range of\n $305 - $315 for 2006.\n\n- Net earnings of $8.9 million, or $0.03 per share, compared with a net\n loss of $0.9 million in the same period last year. Earnings include\n an expense of $9.4 million relating primarily to non-cash foreign\n currency translation losses on deferred tax liabilities.\n\n- Cash flow from operating activities was $20.1 million in the first\n quarter.\n\n- Capital expenditures were $34.7 million for the first quarter 2006\n and the cash position was $84.1 million as at March 31, 2006 compared\n with $97.6 million at year end 2005.\n\n- The Paracatu engineering study is currently being optimized and the\n scope of the project is increasing with higher production and lower\n operating costs than originally expected. Capital costs are expected\n to be at the high end of the previously announced range of\n $400 - $500 million. Details are expected to be released in mid-June\n subsequent to a Board meeting to review...