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TORONTO, ONTARIO -- (Marketwired) -- 05/07/13 -- Kinross Gold Corporation (TSX: K)(NYSE: KGC) today announced its results for the first quarter ended March 31, 2013.
(This news release contains forward-looking information subject to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located on page six of this release. All dollar amounts in this release are expressed in U.S. dollars, unless otherwise noted. The comparative figures have been recast to exclude Crixas due to its disposal.)
Financial and operating highlights:
-- Production(1): 648,897 gold equivalent ounces (Au eq. oz.), compared with 588,358 ounces in Q1 2012.-- Revenue: $1,058.1 million, compared with $1,005.1 million in Q1 2012.-- Production cost of sales(2): $729 per Au eq. oz., compared with $738 in Q1 2012.-- All-in sustaining cost(2): $1,038 per Au oz. sold, compared with $1,180 in Q1 2012.-- Attributable margin(3): $895 per ounce sold, compared with $906 in Q1 2012.-- Adjusted operating cash flow(2): $411.8 million, or $0.36 per share, compared with $319.3 million, or $0.28 per share, in Q1 2012.-- Adjusted net earnings(2), (4): $170.5 million, or $0.15 per share, compared with $196.1 million, or $0.17 per share, in Q1 2012.-- Reported net earnings(4): $160.5 million, or $0.14 per share, compared with net earnings of $99.6 million, or $0.09 per share, for Q1 2012.-- Outlook: The Company expects to be within its 2013 forecast guidance for production (2.4-2.6 million attributable gold equivalent ounces), production cost of sales ($740-$790 per gold equivalent ounce), all-in sustaining cost ($1,100-$1,200 per gold ounce sold) and capital expenditures ($1.6 billion).
Development projects:
-- The Company announced results of the Tasiast expansion project pre- feasibility study on April 29, 2013. The Company is proceeding to a full feasibility study on a 38,000 tonne per day (tpd) mill. The feasibility study is expected to be completed in the first quarter of 2014.-- Dvoinoye remains on schedule to commence full production in the second half of the year.
Board of Directors:
-- On April 3, 2013, Kinross announced the appointments of Mr. John Macken, Ms. Una Power, and Ms. Ruth Woods to its Board of Directors.
CEO Commentary
J. Paul Rollinson, CEO, made the following comments in relation to first-quarter 2013 results:
"Our continued focus on operational fundamentals contributed to solid results in the first quarter, as production was higher and cost of sales per ounce was lower than the same period last year. We are on target to meet our annual guidance for production and cost of sales at each of our regions, and company-wide.
"We continue to focus on margin and cash flow, versus production at any cost, in our mine planning and production decisions. At the same time, we continue to pursue opportunities to reduce capital spending and operating costs across our operations.
"During the quarter, we made excellent development progress at Dvoinoye, and completed the Tasiast pre-feasibility study on schedule. We are proceeding to a feasibility study at Tasiast, and plan to make a decision on whether to proceed with construction of an expanded operation following completion of the study."
