The following operating and financial results are based on first-quarter 2013 attributable gold equivalent production from continuing operations:
Production: Kinross produced 648,897 attributable gold equivalent ounces from continuing operations in the first quarter of 2013, a 10% increase over the first quarter of 2012, mainly due to production increases at Tasiast and Fort Knox.
Production cost of sales: Production cost of sales per gold equivalent ounce(2) was $729 for the first quarter of 2013, compared with $738 for the first quarter of 2012. The decrease was mainly due to the continued focus on cost management and the increase in gold ounces sold. Production cost of sales per gold ounce on a by-product basis was $674 in the first quarter of 2013, compared with $655 in Q1 2012, based on Q1 2013 attributable gold sales of 606,767 ounces and attributable silver sales of 2,085,425 ounces.
All-in sustaining cost: Attributable all-in sustaining cost per gold ounce sold(2) was $1,038 in Q1 2013, compared with $1,180 in Q1 2012, mainly as a result of increased ounces sold and the timing of sustaining capital spending. The Company expects all-in sustaining cost per gold ounce sold to be within the previously disclosed guidance range of $1,100 to $1,200 for the year.
Revenue: Revenue from metal sales was $1,058.1 million in the first quarter of 2013, compared with $1,005.1 million during the same period in 2012, an increase of 5%, mainly due to an increase in gold equivalent ounces sold. The average realized gold price was $1,624 per ounce in Q1 2013, compared with $1,644 per ounce for Q1 2012.
Margins: Kinross' margin per gold equivalent ounce sold(3) was $895 for the first quarter of 2013, a decrease of 1% compared with Q1 2012 margin of $906 per gold equivalent ounce.
Operating cash flow: Adjusted operating cash flow(2) was $411.8 million for the quarter, or $0.36 per share, compared with $319.3 million, or $0.28 per share, for Q1 2012.
Cash balance: Cash and cash equivalents and short-term investments were $1,420.8 million as at March 31, 2013, compared with $1,982.5 million as at December 31, 2012.
Earnings: Adjusted net earnings(2), (4) were $170.5 million, or $0.15 per share, for Q1 2013, compared with $196.1 million, or $0.17 per share, for Q1 2012.
Reported net earnings(4) were $160.5 million, or $0.14 per share, for Q1 2013, compared with earnings of $99.6 million, or $0.09 per share, for Q1 2012.
Capital expenditures: Capital expenditures were $317.8 million for Q1 2013, compared with $529.3 million for the same period last year, a decrease due mainly to timing of expenditures at the Tasiast expansion project, and the completion of the fourth ball mill at Paracatu and SART plant at Maricunga in 2012.
Mine-by-mine summaries for first-quarter operating results may be found on pages 11 and 15 of this news release. Highlights include the following:
North America: Performance was strong in the first quarter, and the region is on track to meet both production and production cost of sales guidance for the year. Regional production was higher compared with Q1 2012, but lower compared with the previous quarter, mainly due to the expected winter slow-down of production from the heap leach at Fort Knox, and lower mill output as a result of harder ore and slightly lower grade. The harder ore Fort Knox encountered during the quarter is not expected to continue in Q2. Kettle River-Buckhorn had an outstanding quarter, as throughput increased compared with the previous quarter, while Round Mountain performed as anticipated during the quarter.
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