Business
Kinross announces fourth quarter and year end 2005 results
Kinross announces fourth quarter and year end 2005 results.
About this update from Kinross Gold Corporation
[{"type":"text","content":"\n\n\n\n\n2005 marked by strong revenues and completion of comprehensive review \nresulting in non-cash charges and investment in future growth\n\nTORONTO, March 30 /CNW/ - Kinross Gold Corporation (TSX-K; NYSE-KGC)\n(\"Kinross\" or the \"Company\"), announced today its unaudited results for the\nfourth quarter and year ended December 31, 2005.\n\n(All dollar amounts in this press release are expressed in U.S. dollars,\nunless otherwise noted)\n-------------------------------------------------------------------------\nHighlights as at year end 2005\n\n- Kinross achieved its planned production of 378,533 gold equivalent\n ounces for the fourth quarter and 1,608,805 gold equivalent ounces for\n the year. Gold equivalent sales were 389,037 ounces in the fourth\n quarter and 1,627,675 ounces for the year at a cost of sales per\n ounce(1) of $285 per ounce for the fourth quarter and $275 per\n ounce for the year.\n\n- Net loss of $154.3 million, or $0.45 per share in the fourth quarter\n and net loss for the year of $216.0 million or $0.63 per share.\n Contributing to the net loss in the fourth quarter were non-cash\n impairment charges of $147.2 million (which included a charge of\n $141.8 related to the Fort Knox operations in Alaska), or\n $184.7 million for the year (which also includes the previously\n reported impairment charge of $36.8 million related to the Aquarius\n project). Also included were accruals for future reclamation\n obligations of $47.0 million for the fourth quarter and $56.0 million\n for the year.\n\n- Revenue in the fourth quarter was $190.0 million and $725.5 million\n for the year. At year end, revenue was 9% higher year-over-year mainly\n due to increased gold prices.\n\n- Cash flow from operating activities in the fourth quarter was\n $23.8 million and $133.7 million for the year down from $161.2 million\n in 2004 primarily due to higher operating costs and changes in working\n capital.\n\n- Kinross' cash position was $97.6 million at year end, up from\n $47.9 million at year end last year.\n\n- Capital expenditures were $32.9 million in the fourth quarter and\n $142.4 million for the year.\n\n- Gold reserves increased 27% year-over-year to 24.7 million ounces.\n\n- Strengthened management team and completed a comprehensive strategic\n review of Kinross' assets and investments. Disposed of non-core asset...