Business
Kinross Gold success continues with strong third quarter
Kinross Gold success continues with strong third quarter.
About this update from Kinross Gold Corporation
[{"type":"text","content":"\n\n\n\n\nEarnings increase to $50.3 million; production ahead of target and\noperating cash flow up 63 percent\n\nTORONTO, Nov. 3 /CNW/ - Kinross Gold Corporation (TSX-K; NYSE-KGC)\n(\"Kinross\", \"Kinross Gold\" or the \"Company\"), today announced its unaudited\nresults for the three and nine months ended September 30, 2006.\n\n(This media release contains forward-looking information that is subject\nto risk factors and assumptions set out in our Cautionary Statement on\nForward-Looking Information. All dollar amounts in this media release are\nexpressed in U.S. dollars, unless otherwise noted)\n\n>\n\nRevenue from metal sales in the third quarter of 2006 increased\n23 percent year-over-year to $223.6 million from $181.1 million in the same\nperiod of 2005, primarily as a result of higher realized gold prices. This was\npartially offset by a 12 percent reduction in gold equivalent ounces sold. The\naverage realized gold price in the third quarter of 2006 was $621 per ounce,\ncompared with $440 per ounce in the third quarter of 2005. The average spot\nprice for the third quarter was $622 per ounce, compared with $440 per ounce\nin the same period of 2005.\nGold equivalent production of 365,555 ounces for the third quarter of\n2006 and 1,114,301 ounces year-to-date were ahead of plan. In the third\nquarter of 2006, the Company sold 359,827 gold equivalent ounces, down from\nthe 409,564 ounces sold in 2005, primarily as a result of reduced production.\nThe reduction in gold equivalent ounces produced and sold in the third quarter\nof 2006 when compared with the same period in 2005 is due to planned lower\nproduction from Round Mountain, Paracatu and Musselwhite, as discussed in the\nOperations review and update section of this media release, as well as the\nplanned shut down at Kettle River and the winding down of operations at\nKubaka. This was offset by strong production from the Porcupine Joint Venture\nand the additional ore from the now fully operating Refugio mine which was not\nat full capacity during the comparable period in 2005. The Company currently\nexpects to exceed previous annual production estimates of 1.44 million ounces\nby approximately 20,000 ounces.\nCost of sales increased two percent in the third quarter of 2006 as\ncompared to the similar period in 2005 largely due to industry-wide factors\nsuch as increa...