Kinross posts $2.4 billion net loss in Q2
Canadian-based gold miner Kinross' (NYSE: KGC) revenues fell below $1 billion this quarter to $968 million as the company took a $2.29 billion non-cash write-down.
Kinross announced Q2 2013 results on Wednesday showing a net loss of $2.48 billion – $2.17 per share.
Although gold prices were down, costs were up this quarter: The miner spent $1,072 per ounce of gold sold compared to $970 in Q2 2012.
Despite the losses the firm is maintaining its 2013 forecast guidances of 2.4 to 2.6 million ounces produced, and all-in sustaining costs of $1,100 to $1,200 per ounce sold.
Like most major miners, cost-cutting a major priority and the gold producer expects to save about $180 million this year.
As a result of these reductions, the company also announced that it would put off its decision on the $2.7 billion Tasiast mine expansion until 2015. The Mauritania-based project began operating in 2008, just after Kinross purchased the site from Red Back Mining for $7.1 billion. In February the troubled Tasiast property caused nearly $3.2 billion worth of write-downs.
Kinross is not suffering alone: GoldCorp took a near $2 billion impairment charge last week.
The gold miner lost over half a percent on the New York exchange late Wednesday afternoon after making some gains earlier in the day.