Kinross Gold Corporation
) reported adjusted earnings of 24 cents per share in the fourth
quarter of 2012, beating the Zacks Consensus Estimate of 22 cents
and exceeding the year-ago earnings of 16 cents a share.
On a reported basis, the company posted a net loss of $2,989.1
million (or $2.62 per share) in the reported quarter compared
with a net loss of $2,791 million (or $2.45 a share) in the
For the full year, adjusted earnings came in at 77 cents per
share, ahead of the year-ago earnings by 2 cents. It beat the
Zacks Consensus Estimate of 74 cents. Net loss, as reported, was
$2,548.8 million, (or $2.24 per share) compared with a net loss
of $2,093.4 million, (or $1.84 per share) for full-year 2011.
Revenues increased 29% year over year to $1,186.9 million,
aided by higher production and higher realized gold price. Sales
came ahead of the Zacks Consensus Estimate of $1,167 million.
For the full year, revenues increased 12.2% year over year to
$4,311.4 million on the back of higher realized gold prices.
However, sales missed the Zacks Consensus Estimate of $4,383
Gold production was 724,510 equivalent ounces for the quarter,
a 16% year-over-year increase, mainly due to production increases
at Fort Knox and La Coipa. The average realized gold price was
$1,707 per ounce, up 6.8% from the year-ago quarter. The average
realized gold price per ounce was $1,643 for the full year, up
9.5% year over year.
Production cost per gold equivalent ounce was $686 in the
quarter versus $635 in the prior-year quarter. Margin per gold
equivalent ounce sold was $972 in the quarter, down 5% from the
prior-year quarter, mainly due to higher costs for energy, labor,
Adjusted operating cash flow was $501.4 million in the quarter
compared with $353.4 million a year ago. Cash and cash
equivalents were $1.63 billion as of Dec 31, 2012, compared with
$1.77 billion as of Dec 31, 2011.
Capital expenditures were $512.1 million in the reported
quarter versus $577.9 million reported in the same period last
year. The decrease in capital expenses was due to the timing of
expenditures at Tasiast.
Kinross is currently engaged in the development of a number of
mines, the most important ones being Tasiast and Dvoinoye. At
Tasiast, the company is currently reviewing a number of
alternatives to develop the project in the most feasible
Moreover, the company is on track to complete the
pre-feasibility study at the Tasiast mill by the first quarter of
2013. At Dvoinoye, construction is progressing well and the mine
is slated to deliver the first ore to the Kupol mill in the
second half of the year.
Apart from these projects, Kinross also has a few others in
its portfolio. The company is currently seeking negotiations with
the Ecuadorean government on an enhanced economic package at
Fruta del Norte.
Kinross expects to produce about 2.4-2.6 million gold
equivalent ounces from its current operations in 2013 and
forecasts cost of sales of $740-$790 per gold equivalent ounce
for the year. Production in the first half of 2013 is expected to
be lower than production level in the second half of 2012.
The company forecasts roughly $750 million in capital
expenditures related to growth projects. Kinross expects
exploration and business development expenses to be around $210
million, of which $160 million is expected for exploration.
Kinross currently carries a Zacks Rank #3 (Hold).
Other companies in the mining industry having a favorable
Zacks Rank are
AngloGold Ashanti Ltd.
Primero Mining Corp
). All these companies carry a Zacks Rank #2 (Buy).
ANGLOGOLD LTD (AU): Free Stock Analysis
BANRO CORP (BAA): Free Stock Analysis Report
KINROSS GOLD (KGC): Free Stock Analysis
PRIMERO MINING (PPP): Free Stock Analysis
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