Kinross Gold posts $23.6M loss for 2018

Kinross Gold (TSX: K; NYSE: KGC) produced 2.45 million gold-equivalent ounces last year with record production from its Paracatu mine in Brazil and its Bald Mountain mine in Nevada, and forecasts company wide production this year will be similar to 2018.

The company reported an attributable all-in cost per oz. sold on a by-product basis of US$1,287, down from US$1,308 per oz. in 2017.

The Toronto-headquartered company posted a headline loss of US$23.6 million, or 2¢ per share, compared with net earnings of US$445.4 million, or 36¢ per share, in 2017. The change was primarily a result of decreased operating earnings, a reversal of impairment charges related to the sale of Cerro Casale in 2017, and an increase in 2018 income tax expenses.

Operating cash flow generated reached US$790 million in 2018 and, at the end of the year, Kinross had cash and equivalents of US$349 million, US$1.9 billion in liquidity, and no debt maturities until 2021.

Full-year capex came in at US$1.04 billion, up from US$897.6 million for 2017, largely due to increased spending at Round Mountain, Bald Mountain and Tasiast, which was partially offset by lower spending at Paracatu and Chirano.

This year the company forecasts capital expenditures of US$1.05 billion.

Expected milestones in 2019 include the start of commissioning of the Bald Mountain Vantage Complex processing circuit and the completion of the Lobo-Marte scoping study in the first quarter; the start of commissioning of Round Mountain’s Phase W processing circuit in the second quarter; the completion of the feasibility study on the La Coipa restart; and the commencement of stripping at Fort Knox Gilmore in the third quarter.

At press time in Toronto, Kinross’ shares were trading at $4.42 within a 52-week range of $3.15 and $5.34.