Shares in gold miner Kinross up after reporting third-quarter profit

TORONTO – Shares of gold miner Kinross Gold Corp. (TSX:K) were up seven per cent Thursday after the company reported a third-quarter profit of US$224.9 million that beat analysts’ expectations.

The company, which keeps its books in U.S. dollars, said the profit amounted to 20 cents per share, up from $212.6 million or 19 cents per share a year ago.

Revenue totalled $1.11 billion, up from $1.04 billion in the third quarter of 2011.

On an adjusted basis, earnings were $250.4 million, or 22 cents per share, compared to $269.4 million or 24 cents per share in 2011.

Still, the company’s earnings managed to beat analysts’ estimates of 20 cents per share, according to Thomson Reuters.

In its outlook, Kinross said it was on target to meet its 2012 production forecast of approximately 2.5 million to 2.6 million gold equivalent ounces from its continuing operations.

Kinross launched a company-wide cost cutting initiative in August.

The company said on Wednesday it has identified $200 million in capital expenditure cuts for this year and reduced its full-year capital expenditure forecast to $2 billion from $2.2 billion.

“As we go through our budgeting process for 2013, and looking beyond, we are seeking every available opportunity to control costs, with a focus on margins and free cash flow across our operations,” chief executive Paul Rollinson said in a statement.

During the quarter, the company produced a total of 678,933 gold equivalent ounces and sold 672,221. That compared with 654,820 ounces produced at year ago and 670,386 ounces sold in the third quarter of 2011.

Kinross has mines and projects in Canada, the United States, Brazil, Chile, Ecuador, Russia, Ghana, and Mauritania.

Shares in the company were up 73 cents at $10.07 on the Toronto Stock Exchange on Thursday.