Tax Charges Affect Gold Miner Kinross’ 1Q Profit, Falls 57% to $105.7 M
By Esther Tanquintic-Misa
May 9, 2012 11:19 AM EST
One-time tax-related charges instituted in the first three months of the year have affected the profit of Canadian miner Kinross Gold Corp., falling by as much as 57 per cent in the first quarter.
The Toronto-based gold miner on Tuesday reported Tuesday profit generated in the quarter ended March 2012 slid to $105.7 million compared from the $250.1 million a year ago. This represented a ratio of 9 cents a share presently, from 22 cents a share the previous year.
Total sales, however, jumped 11 per cent to $1.04 billion from $937 million over the first quarter of 2011.
In a statement, Kinross Gold Corp., with mines in North and South America, Russia and Africa, said tax liabilities coupled with a $110.3 million non-cash item related to an income tax rate change in Ghana primarily affected its first quarter yields.
Discounting one-time items, Kinross Gold Corp. reported profits jumped to $203.1 million from $175.3 million, or 18 cents a share from 15 cents a share, respectively.
While gold produced during the first three months of the year reached 604,247 ounces, 6 per cent less from the 642,857 produced a year ago, the cost of producing the precious safe haven yellow metal soared 22 per cent for Kinross Gold Corp. due to lower grade ore, higher power, labor and contractor costs.
Total cost of production was $742 per gold equivalent ounce versus $545 a year ago. The company saw an average realized price of $1,644 per ounce of gold, up from $1,327.
Tye Burt, President and CEO of Kinross Gold Corp., said the company anticipates production to increase for the remainder of 2012.
"We expect to be within our previously-stated full-year guidance for production and costs," Burt said in a statement.
"Kinross remains in a strong operating and financial position. We are committed to maintaining our financial strength and liquidity as we advance our growth projects in the framework of our capital and project optimization process." |
