Shares in Kinross Gold leapt 4.5% on Wednesday after the company published a positive second-quarter earnings report.
Toronto-based Kinross said it had a record quarter for gold production due to additional product from its Kupol gold and silver mine in Russia, of which the company acquired 100% in April, and from West Africa operations that were acquired last September. Kinross poured 676,245 gold ounces of gold in Q2, a 26% increase over the same period last year.
The higher production was spurred by higher gold prices — $1449/oz in Q2 versus $1158/oz in Q2 2010 — and came despite higher cash costs per ounce this quarter.
Revenues for the quarter were up by 42%, at $987.8 million compared to $696.6 million in the second quarter of 2010.
"Solid performance from our operations – notably Kupol, Maricunga, and Fort Knox – helped Kinross to deliver record production, revenue, and margins in the second quarter amid continuing strong gold prices. Despite industry-wide cost pressures, our second quarter cost of sales remained at the low end of our guidance range," said Tye Burt, Kinross President and CEO, noting the company has boosted its dividend to shareholders by 20%.
Kinross expects to be within its previously stated full-year production guidance of 2.6 – 2.7 million gold equivalent ounces for 2011, and toward the lower end of its previously stated full-year cost guidance of $565 – 610 per gold equivalent ounce.