Kinross Gold swings to US$2.7 million loss amid fourth-quarter challenges

TORONTO – Kinross Gold Corp. says it swung to a US$2.7 million loss in the fourth quarter as it was hampered by downtime at some of its operations.

The loss compared with a US$783.3 million profit equal to 62 cents per share a year earlier.

The Toronto-based mining company, which reports in U.S. dollars, attributes the loss primarily to the temporary suspension of milling operations after a fire at its Tasiast mine in Mauritania as well as to deferred mining activity at Round Mountain in Nevada.

Kinross says it also took a writedown of US$106.1 million related to a reduced estimate of recoverable ounces at its Bald Mountain mine in Nevada.

On an adjusted basis, Kinross says it earned US$101.8 million, or eight cents per share, in the three months ending Dec. 31. That’s compared with adjusted earnings of US$335.1 million, or 27 cents per share, in the prior year’s quarter.

Kinross says its revenue during the fourth quarter was US$879.5 million, down from US$1.2 billion during the fourth quarter of 2020. Analysts had forecast adjusted earnings per share of six cents on $903.5 million in revenues, according to financial database firm Refinitiv.

For the full-year, it earned US$221.2 million or 17 cents per share on US$3.73 billion of revenues, compared with US$1.34 billion or $1.06 per share of earnings on US$4.21 billion of revenues in 2020

This report by The Canadian Press was first published Feb. 16, 2022.

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