Skip to main content

The Globe and Mail

Kinross Gold hikes dividend as profits rise

Kinross Gold Corp. increased its dividend Wednesday as the company doubled its second-quarter profits compared with a year ago.

The gold miner, which keeps its books in U.S. dollars, increased its semi-annual dividend to six cents per share from five cents.

The increase came as Kinross reported a profit of $247.4-million (U.S.) or 22 cents per diluted share on $987.8-million in sales in the quarter ended June 30.

Story continues below advertisement

The result compared with a profit of $110.4-million or 16 cents per share on $696.6-million in sales in the same period a year ago.

The average analyst estimate had been for a profit of 18 cents per share, according to those surveyed by Thomson Reuters. The average revenue estimate called for $938-million.

Kinross produced 676,245 attributable gold equivalent ounces in the quarter, up from 538,270 ounces a year ago, due to the Kupol mine in which the company increased its ownership to 100 per cent earlier this year and the African operations it bought last year.

Production costs totalled $576 per ounce compared with $494 for the second quarter of 2010, due to increases in labour costs, diesel and power costs, and royalties.

The average realized gold price was $1,449 per ounce in the quarter, up from $1,158 per ounce a year ago.

Kinross is a Canadian-based gold producer with mines and projects in Canada, the United States, Brazil, Chile, Ecuador, Russia, Ghana, and Mauritania.

In April, Kinross struck a $350-million deal to acquire full control of the Kupol gold mine in Russia from the Russian regional government — the Chukotka Autonomous Okrug.

Story continues below advertisement

The mine, in the Chukotka region of Far Eastern Russia, is expected to generate about 17 per cent of Kinross's gold output this year.

The company grew significantly last year through its $7.1-billion merger with Red Back. Red Back's two key projects were the Tasiast mine in Mauritania and the Chirano Gold Mine in Ghana.

Shares in Kinross, which reported its results after the close of markets, were up 71 cents at $16.31 on the Toronto Stock Exchange on Wednesday.

Report an error
Comments are closed

We have closed comments on this story for legal reasons. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.