Although still mired in the red,
Losses in the three months ended June 30 totalled US$6 million (or 3 per share) on revenue of US$70.7 million, compared with a loss of US$10.8 million (5 per share) on US$66.4 million in the corresponding period of 2000. Cash flow from operations climbed by US$5.3 million to US$15.3 million.
For the first half of the year, Kinross lost US$10.9 million (5 per share) on US$134.8 million, compared with US$18.6 million (7 per share) on US$136.4 in the year-earlier period.
Attributable gold production in the first six months topped 453,401 equivalent ounces, up from 416,977 equivalent ounces in the first half of 2000. Total cash costs, on the other hand, fell 11% to US$191 per equivalent ounce.
Kinross sold its production at US$287 per oz., which is less than the US$305 per oz. it realized in 2000.
Exploration drilling continues at the Birkachan deposit in Russia, the True North satellite deposit in Alaska, and the Goose Lake deposit in Nunavut.
At True North, infill and delineation drilling are attempting to bump up known resources to reserve status. A recent interim reserve calculation tacked on 144,000 oz. to the 611,000 oz. of probable reserves outlined at the end of 2000.
Results from the West Zeppelin zone are proving encouraging as well. Accordingly, more ounces are expected to be found.
In Russia, four drills are defining the depth and strike extensions of multiple, high-grade epithermal veins discovered in an area measuring roughly 2.5 km long by 150-200 metres wide. Mineralization has been intersected to a depth of 350 metres below surface, returning up to 31 grams gold per tonne.
At the Goose Lake project, recent drilling in the South Extension has extended the Main zone to 600 metres along strike and to 300 metres below surface. Highlights include 7 metres grading 38.6 grams gold, 2 metres grading 52.3 grams gold, 9.3 metres grading 17.5 grams gold, and 3 metres grading 21.7 grams gold.
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