Business
Kinross Gold announces 45 percent revenue growth and record earnings of $65.6 million in second quarter
Kinross Gold announces 45 percent revenue growth and record earnings of $65.6 million in second quarter.
About this update from Kinross Gold Corporation
[{"type":"text","content":"\n\n\n\n\n>\n\n\"Our quarterly earnings are a record for Kinross and highlight the\nCompany's ability to generate operating cash flow, earnings and ultimately\nvalue for shareholders,\" said Tye Burt, Kinross' President and Chief Executive\nOfficer. \"The Company's cash flow from operating activities increased more\nthan 200 percent in the quarter compared to 2005, while the average realized\ngold price increased 48 percent compared to the same period.\"\n\"Paracatu's expansion is a key element in our commitment to 'growth from\ncore operations', a pillar of Kinross' four-point strategic plan. We continue\nto drive forward with other initiatives in that plan,\" said Burt.\n\"Outstanding performance such as this is never the result of one single\nvariable. Our policy against gold hedging allowed us to enjoy the full benefit\nof a robust gold price. Our cash balances are growing, giving us a strong\nbalance sheet in support of our capital program. Our team's hard work, cost\ncontrol and achievement in meeting production and operating targets have all\ncombined to give these results,\" added Burt. \"I'd like to thank our employees\nfor their ongoing dedication and commitment to building a great company.\"\n\nParacatu expansion\nOn August 3, 2006, Kinross' Board of Directors approved an investment of\napproximately $470 million in Rio Paracatu MineraEcao, Kinross' Brazilian\noperating subsidiary, for the expansion of the Paracatu mine in Brazil. The\nproject is anticipated to begin production in 2008. During the period from\n2009 to 2013 the project is expected to have average annual throughput of 58\nmillion tonnes with an average annual output of approximately 557,000 ounces\nof gold at an average cost of sales of approximately $230 per ounce. As a\nresult, total Kinross production for 2009 is expected to aggregate 1.8 - 1.9\nmillion ounces of gold equivalent. For the years 2009 through 2019, average\nannual output at Paracatu is expected to be approximately 490,000 ounces at an\naverage cost of sales of $259 per ounce. The current mine plan indicates a\nmine life of approximately 30 years, based on 15.2 million ounces of current\nProven and Probable Mineral Reserves. Over the life of the mine from 2009\nonwards, average annual production is expected to be approximately 418,000\nounces at an average cost of sales of approximately ...