Kinross Gold Tracking at 'High End' of 2015 Production Guidance

Kinross Gold Corp. (TSX:K,NYSE:KGC) announced its Q2 results, commenting that it put out 660,898 gold equivalent ounces during the period. That’s down from the 679,831 gold equivalent ounces it produced in the year-ago period.
Other highlights include:

• Revenue: $755.2 million, compared with $911.9 million in Q2 2014.
• Production cost of sales2: $724 per Au eq. oz., compared with $742 in Q2 2014.
• All-in sustaining cost2: $1,011 per Au eq. oz. sold, compared with $976 in Q2 2014. All-in sustaining cost per gold ounce (Au oz.) sold on a by-product basis was $1,006 in Q2 2015, compared with $967 in Q2 2014.
• Adjusted operating cash flow2: $161.4 million, or $0.14 per share, compared with $240.3 million, or $0.21 per share, in Q2 2014.
• Adjusted net earnings/loss2,3: Loss of $13.6 million, or $0.01 per share, compared with adjusted earnings of $32.9 million, or $0.03 per share, in Q2 2014.
• Reported net earnings/loss3: Loss of $83.2 million, or $0.07 per share, compared with earnings of $46.0 million, or $0.04 per share, in Q2 2014.
• Balance sheet strength: Increased cash and cash equivalents to $1,031.4 million decreased net debt4 to $960.2 million, $250 million in senior notes due in 2016 only significant debt maturity until 2019.
• Average realized gold price: $1,194 per ounce, compared with $1,285 per ounce in Q2 2014.

J. Paul Rollinson, CEO of Kinross, commented:

Kinross continued to deliver on its targets, with production in the first half of 2015 tracking at the high-end of guidance for the year, and all-in sustaining cost tracking at the low-end of the full-year forecast. The Company achieved these results despite a temporary suspension of operations at Maricunga and fewer ounces sold due to timing of some gold sales, which, together with a decline in the gold price, impacted earnings. Kinross nonetheless continued to generate free cash flow in Q2, in large part as a result of its strong operational performance, benefits from foreign exchange and lower oil prices, and a company-wide effort to drive down procurement costs and reduce working capital.
With strong liquidity, including more than $1 billion in cash on the balance sheet, Kinross is well-positioned to weather the current market volatility. This is no coincidence – over the past three years we have actively and prudently managed the balance sheet in a declining gold price environment – and we will continue to do so, with a number of ongoing initiatives to further strengthen the Company’s financial position and drive down costs.

Click here to read the full Kinross Gold Corp. (TSX:K,NYSE:KGC) press release.