TORONTO – Kinross Gold Corp (TSX:K) has reported a big year-over-year drop in first-quarter net earnings as revenue plunged more than US$240 million, mainly as a result of lower realized prices for gold.
The Toronto-based miner said Wednesday after markets closed that net earnings attributable to common shareholders was US$31.8 million or three cents per diluted share, down from US$162.4 million or 14 cents in the same 2013 period.
Metal sales totalled US$871.4 million, down from US$1.058 billion as the average realized gold price fell to US$1,299 per ounce from $1,624 in the first quarter of 2013.
Production increased to 664,690 gold equivalent ounces from 648,897 ounces in the prior-year period.
Adjusted net earnings were $34.1 million or three cents peer share, compared with adjusted earnings of $172.4 million or 15 cents a year earlier.
“While lower gold prices affected earnings, Kinross is making steady progress to reduce costs,” CEO J. Paul Rollinson said in remarks accompanying the earnings report.
“Capital expenditures for the quarter were approximately half of what they were a year ago, while our all-in sustaining cost continued to decline,” Rollinson said, adding that the company had been able to reduce production cost of sales on a per ounce basis by 16 per cent at Chirano, 14 per cent at Maricunga and nine per cent at Tasiast compared with a year earlier.
“With these improvements, and strong performance from our other sites, Kinross is well on track to meet its guidance for the year,” he said.
On the Toronto Stock Exchange, Kinross shares closed down eight cents, or 1.8 per cent, at $4.36 on Wednesday.