Kinross Gold misses by $0.03, misses on revs; provides 2018 outlook
- Reports Q4 (Dec) earnings of $0.01 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus of $0.04; revenues fell 10.2% year/year to $810.3 mln vs the $861.88 mln Capital IQ Consensus.
- Production: 652,710 gold equivalent ounces (Au eq. oz.), compared with 746,291 Au eq. oz. in Q4 2016. All-in sustaining cost2: $1,019 per Au eq. oz. sold, compared with $1,012 in Q4 2016. All-in sustaining cost per gold ounce (Au oz.) sold on a by-product basis was $1,013 in Q4 2017, compared with $1,010 in Q4 2016.
- 2018 Outlook: Kinross expects to produce 2.5 million Au eq. oz. (+/- 5%) at a production cost of sales per Au eq. oz. of $730 (+/- 5%). All-in sustaining cost is forecast to be $975 per ounce sold on both a gold equivalent and by-product basis (+/- 5%). Total capital expenditures are forecast to be approximately $1,075 million (+/- 5%), which includes sustaining capital of $355 million, and non-sustaining capital of approximately $680 million to advance development projects.
- Co also provided update on organic development projects and full-year 2017 exploration results. Five projects advancing on schedule and on budget; three development opportunities proceeding well. Tasiast two-phased expansion on track, with Phase One production expected by end of June.
- The Company added approximately 4.0 million oz. to its proven and probable mineral reserve estimates in 2017 to offset depletion of 3.2 million Au oz., mainly due to additions of approximately 2.3 million Au oz. at Round Mountain, 844 koz. at La Coipa, 273 koz. in Russia, 332 koz. at Paracatu and 254 koz. at Fort Knox. Kinross' total proven and probable gold reserve estimate was 25.9 million ounces at year-end 2017 compared with 31.0 million ounces at year-end 2016. The net year-over-year decrease was mainly the result of the sale of Cerro Casale, which accounted for 5.8 million ounces in estimated mineral reserves.
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