9mo results
Kinross Gold Corp K
Shares issued 292,827,214 Oct 23 close $3.85
Mon 26 Oct 98 News Release
Mr. Robert Buchan reports
Net loss for the nine months ended Sept. 30, 1998 was $7,643,000 or 8 cents
per share after accounting for the convertible debenture equity component
increase and the preferred dividends, on revenues of $193,626,000. This
compares with a loss of $28,911,000 or 26 cents per share after accounting
for the convertible debenture equity component increase, on revenues of
$134,752,000 in the first nine months of 1997. The 1997 results includes an
after tax writedown of $24,000,000 as a result of a series of rockbursts
that occurred in April of last year at the Macassa operations. Operating
cash flow before changes in non-cash working capital was $37,098,000 or 19
cents per share for the first nine months of 1998 compared to $21,971,000
or 18 cents per share during the same period of 1997.
Net loss for the three months ended Sept. 30, 1998 was $8,550,000 or 6
cents per share after accounting for the convertible debenture equity
component increase and the preferred dividends, on revenues of $86,958,000.
This compares with a loss of $3,290,000 or 4 cents per share after
accounting for the convertible debenture equity component increase, on
revenues of $44,105,000 in the third quarter of 1997. Operating cash flow
before changes in non-cash working capital was $17,048,000 or 9 cents per
share for the third quarter of 1998 compared to $7,305,000 or 6 cents per
share during the same period of 1997.
Revenue from the sale of 268,991 ounces of gold and 622,000 ounces of
silver during the third quarter of 1998 was $83,464,000, 101 per cent
higher than the $41,519,000 revenue reported in the third quarter of 1997
from the sale of 104,359 ounces of gold and 1,145,000 ounces of silver.
Average realized prices for the third quarter of 1998 were $300 (1997 -
$341) for gold and $5.01 (1997 - $5.20) for silver which compares to
average spot prices of $289 (1997 - $324) for gold and $5.21 (1997 - $4.53)
for silver. The average realized price in the first nine months of 1998
were $310 (1997 - $355) for gold and $5.72 (1997 - $5.44) for silver which
compares to average spot prices of $294 (1997 - $339) for gold and $5.73
(1997 - $4.77) for silver. Increased production and lower average cash
operating costs helped compensate for the lower spot gold prices.
Operating costs were $61,231,000 during the third quarter of 1998, as
compared to $35,329,000 in 1997. On a per ounce basis, cash operating costs
decreased by 30 per cent to $198 per equivalent ounce of gold as compared
to $282 in the third quarter of 1997.
The operating results for the third quarter of 1998 were positively
impacted by a lower Canadian dollar, a lower Russian Ruble and improvements
in underground mining at the Macassa mine. In addition, the completion of
the merger with Amax added further low cost production to the portfolio of
mines.
Management is continually looking for ways to reduce the total cash costs
per ounce of production. As a result of the merger with Amax certain
purchasing functions will be consolidated in an effort to reduce average
total cash costs.
After a careful review of the DeLamar operations, management has decided to
place the mine on care and maintenance in early January 1999 pending higher
metal prices. The mine currently employs 162 people and every effort will
be made to identify opportunities for the displaced workers within the
Kinross organization. The carrying value of the mine is currently under
review in light of this decision.
The company has a strong balance sheet with $165.2-million of cash and
$214.6-million of working capital. Management will continue to focus on
reducing total cash costs in order to preserve the balance sheet for future
growth.
PRODUCTION DATA GOLD EQUIVALENT PRODUCTION - OUNCES Three months ended
Sept. 30 1998 1997 Primary operations Hoyle Pond 37,915 39,027 Macassa
19,626 14,473 Fort Knox (1) 86,344 - Kubaka (1) 61,362 - Denton-Rawhide
17,087 16,298 Refugio (1) 12,981 - Blanket 9,814 9,165 ------- -------
245,129 78,963 ------- ------- Other operations DeLamar 16,811 18,658
Candelaria 4,446 12,104 Hayden Hill (1) 10,078 - Guanaco (1) 3,575 - QR -
8,808 Golden Kopje - 1,858 ------- ------- 34,910 41,428 ------- -------
Total gold equivalent ounces 280,039 120,391 ------- ------- PRODUCTION
DATA GOLD EQUIVALENT PRODUCTION - OUNCES Nine months ended Sept. 30 1998
1997 Primary operations Hoyle Pond 122,532 112,560 Macassa 61,772 37,774
Fort Knox (1) 121,003 - Kubaka (1) 82,775 - Denton-Rawhide 52,821 50,826
Refugio (1) 18,044 - Blanket 26,907 26,747 ------- ------- 485,854 227,907
------- ------- Other operations DeLamar 49,981 47,149 Candelaria 20,378
43,255 Hayden Hill (1) 12,079 - Guanaco (1) 5,051 - QR 14,071 28,847 Golden
Kopje - 6,663 ------- ------- 101,560 125,914 ------- ------- Total gold
equivalent ounces 587,414 353,821 ------- ------- CASH OPERATING COSTS
(Dollars per equivalent ounce of gold) Three months ended Sept. 30 1998
1997 Primary operations Hoyle Pond 173 219 Macassa 241 345 Fort Knox (1)
194 - Kubaka (1) 108 - Denton-Rawhide 246 255 Refugio (1) 425 - Blanket 180
280 ------- ------- 188 257 ------- ------- Other operations DeLamar 336
257 Candelaria 442 322 Hayden Hill (1) 75 - Guanaco (1) 296 - QR - 459
Golden Kopje - 524 ------- ------- 274 331 ------- ------- 198 282 CASH
OPERATING COSTS (Dollars per equivalent ounce of gold) Nine months ended
Sept. 30 1998 1997 Primary operations Hoyle Pond 173 209 Macassa 248 400
Fort Knox (1) 192 - Kubaka (1) 114 - Denton-Rawhide 233 234 Refugio (1) 409
- Blanket 202 268 ------- ------- 194 253 ------- ------- Other operations
DeLamar 317 305 Candelaria 343 304 Hayden Hill (1) 85 - Guanaco (1) 261 -
QR 253 391 Golden Kopje - 445 ------- ------- 283 331 ------- ------- 209
281 TOTAL CASH COSTS (Dollars per equivalent ounce of gold) Three months
ended Sept. 30 1998 1997 Primary operations Hoyle Pond 175 222 Macassa 241
345 Fort Knox (1) 194 - Kubaka (1) 152 - Denton-Rawhide 249 259 Refugio (1)
437 - Blanket 180 280 ------- ------- 200 259 ------- ------- Other
operations DeLamar 346 267 Candelaria 433 322 Hayden Hill (1) 91 - Guanaco
(1) 316 - QR - 459 Golden Kopje - 524 ------- ------- 282 335 -------
------- 210 285 ------- ------- TOTAL CASH COSTS (Dollars per equivalent
ounce of gold) Nine months ended Sept. 30 1998 1997 Primary operations
Hoyle Pond 174 211 Macassa 248 400 Fort Knox (1) 192 - Kubaka (1) 160 -
Denton-Rawhide 234 238 Refugio (1) 421 - Blanket 202 268 ------- -------
203 255 ------- ------- Other operations DeLamar 325 314 Candelaria 346 305
Hayden Hill (1) 101 - Guanaco (1) 275 - QR 253 391 Golden Kopje - 445
------- ------- 290 335 ------- ------- 218 284 ------- -------
1) includes four months of Kinross ownership
CONSOLIDATED STATEMENT OF OPERATIONS
Three months ended Sept. 30
(thousands of U.S. dollars)
1998 1997
Revenue
Mining revenue $ 83,464 $ 41,519
Interest and
other income 3,494 2,586
--------- ---------
86,958 44,105
--------- ---------
Expenses
Operating 61,231 35,329
General and
administrative 1,792 849
Exploration and
business
development 2,747 1,123
Depreciation, depletion
and amortization 27,162 7,573
--------- ---------
92,932 44,874
--------- ---------
Income before
the undernoted (5,974) (769)
Foreign exchange
gain (loss)
and other (395) -
Gain on sale
of marketable
securities 1,841 -
Equity loss in
associated companies (99) (145)
Interest expense (3,811) (1,326)
Writedown of mineral
properties - -
--------- ---------
Income (loss)
before taxes
and other items (8,438) (2,240)
(Provision for)
recovery of
income and
mining taxes (112) (1,050)
--------- ---------
Net income (loss) $ (8,550)$ (3,290)
========= =========
Dividends on
convertible
preferred shares (1,725) -
Net loss per
share (6 cents) (4 cents)
CONSOLIDATED STATEMENT OF OPERATIONS
Nine months ended Sept. 30
(thousands of U.S. dollars)
1998 1997
Revenue
Mining revenue $ 181,593 $ 127,171
Interest and
other income 12,033 7,581
--------- ---------
193,626 134,752
--------- ---------
Expenses
Operating 132,467 103,235
General and
administrative 4,969 4,500
Exploration and
business
development 5,867 2,459
Depreciation, depletion
and amortization 50,910 24,693
--------- ---------
194,213 134,887
--------- ---------
Income before
the undernoted (587) (135)
Foreign exchange
gain (loss)
and other (78) (154)
Gain on sale
of marketable
securities 2,667 -
Equity loss in
associated companies (307) (145)
Interest expense (7,229) (4,018)
Writedown of mineral
properties - (35,719)
--------- ---------
Income (loss)
before taxes
and other items (5,534) (40,171)
(Provision for)
recovery of
income and
mining taxes (2,109) 11,260
--------- ---------
Net income (loss) $ (7,643)$ (28,911)
========= =========
Dividends on
convertible
preferred shares (2,300) -
Net loss per
share (8 cents) (26 cents)
WARNING: The company relies upon litigation protection for
"forward-looking" statements.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.c |
