Kinross Gold was on target to meet its production guidance for the year and could hit the low end of its production cost of sales guidance, the company said in its third quarter earnings report.
Wednesday evening the mid-tier gold producer reported net earnings of $60.9 million, or $0.05 per share. The company said adjusted net earnings came in at $104.0 million, or $0.08 per share, in line with market expectations and up from an adjusted net loss of $48.4 million, or $0.04 per share, for Q3 2018.
Looking at production, Kinross produced 608,033 attributable gold equivalent ounces in the third quarter of 2019, compared with 586,260 Au eq. oz. in Q3 2018. So far this year, the company said it produced 1,862,315 of gold equivalent ounces and is in line to meet its guidance of around 2.5 million ounces.
The company noted that the average realized gold price in the third quarter was up 21% compared to last year. Strong production and a higher gold price helped the company see increased cash flow.
Kinross said that operating cash flow increased to $231.7 million, an 82% increase over the third quarter of 2018; meanwhile adjusted operating cash flow more than doubling to $295.4 million compared with Q3 of last year.
“Our portfolio of mines continued to perform well during the third quarter, delivering higher production, lower costs and more than doubling adjusted operating cash flow compared with the same period last year,” said Paul Rollinson, president and CEO of Kinross. “Paracatu, Kupol and Tasiast, our largest producing mines, once again achieved our lowest costs. We remain on track to meet our annual production guidance, and given strong results year-to-date, are tracking towards the low end of our cost of sales guidance.”