Kinross Gold profit beats on higher gold prices, output
Canadian miner Kinross Gold reported a better-than-expected quarterly profit on Wednesday, helped by record output at its third biggest mine, Tasiast, and higher gold prices.
Gold prices rose 18% in 2019, as investors sought safety in safe-havens due to political uncertainty, US-China trade war and concerns on slowing global growth.
The company's average realised gold price rose 21% to $1 485/oz from $1 226 an year earlier, while total production rose 5.8% to 645 344 gold equivalent ounces (GEO).
The miner forecast production of about 2.4-million GEOs for 2020, a decrease compared with its 2019 production of 2.5-million GEOs, owing to care-and-maintenance at its Maricunga mine, in Chile, and expected lower output at its largest mine Paracatu, which posted record production in 2019.
Kinross posted net earnings of $521.5-million, or 41c a share, in the fourth quarter ended December 31, owing to higher margins and non-cash impairment reversals of $361.8-million. The company posted a loss of $27.7-million, or 2c per share, a year earlier.
Excluding items, the company earned 13c per share, beating analysts' average estimate of 10c, according to IBES data from Refinitiv.
Total revenue jumped 26.7% to $996.2-million.
US-listed shares of the miner were up 2.4% at $5.12 after the bell.
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