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Kinross Gold Corp. reports lower Q2 earnings amid increased production costs

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TORONTO — Mining company Kinross Gold Corp. reported lower earnings and increased costs around production for its second-quarter report Wednesday.

The company reported net earnings attributable to common shareholders of US$119.3 million for the quarter ended June 30, compared to US$195.7 million in the same quarter last year.

The Toronto-based company, which reports its earning in U.S. dollars, said on an adjusted basis its net earnings were US$156.5 million, or 12 cents per share, compared to US$194 million or 15 cents per share in the same quarter last year.

The drop in earnings came amid a slight drop in overall metal sales, and a roughly 14 per cent rise in the attributable production cost per ounce of gold sold compared to the previous year.

Kinross generated US$182.8 million in free cashflow, compared to US$218.5 million a year prior.

It also announced a share buyback program, and said operations at its Tasiast mill in West Africa are expected to resume in the fourth quarter of 2021 after recovering from a fire at the facility.

“During the second quarter, Kinross continued to generate robust free cash flow, which more than doubled compared with the previous quarter," said J. Paul Rollinson, Kinross President and CEO.

"Our excellent free cash flow, as well as the strength of our investment grade balance sheet and growing production profile, underpin today’s announcement of a share buyback program and our continuing quarterly dividend, which supports our commitment to enhance shareholder value."

This report by The Canadian Press was first published July 28, 2021.

Companies in this story: (TSX:K)

The Canadian Press