Vancouver – Kinross Gold (K-T, KGC-N) has announced a US$2.78-billion net loss, or $2.45 per share, for the fourth quarter of 2011 following the write-down of its assets acquired though the takeover of Red Back Mining in 2010.
In total the company took a US$2.9 billion goodwill impairment charge in the quarter for its Tasiast and Chirano assets, following cost escalations and reassessed potential mostly related to its Tasiast project in Mauritania.
Write-downs aside, the company had US$949.3 million in revenue for the fourth quarter, a 3% increase compared with the same quarter a year before, and produced 643,288 oz. gold in the quarter for a 5% drop compared with the fourth quarter of 2010.
In the quarter the company produced gold at US$636 per gold equivalent oz., a cost increase of 13% compared with the US$549 per gold equivalent oz. it achieved in the fourth quarter of 2010. Higher gold prices, however, meant the company still achieved a margin of US$965 per oz. sold for a 23% increase over the same quarter the year before.
On an annual basis Kinross managed a record US$3.9 billion in revenue for a 31% increase over the year before, and produced 2.6 million equivalent oz. gold for a 12% increase over 2010. The impairment charge was a large overhang on annual earnings however, coming in at a US$2.1 billion loss, or $1.83 per share.
Adjusted net earnings painted a somewhat better picture, coming in at US$196.6 million for the quarter and US$871.8 million for the year, or earnings of 17¢ and 77¢ per share respectively. Adjusted operating cash flow came in at US$367.3 million, or US$1.6 billion for full-year adjusted operating cash flow.
Citing strong operational performance and cash flow, Kinross increased its semi-annual dividend by 2¢ or 33% to 8¢.
At the end of 2011 the company had 62.6 million oz. of proven and probable gold reserves, while total measured and indicated resources stood at 25.4 million oz. gold.
Kinross closed at $10.35 the day it released results after market close. The company traded at a 52-week high of $18.17 in September.
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